Evening Star Newspaper, March 16, 1936, Page 1

(U. 8. Weather Bureau Porecast.) Rain and colder tonight and tomorrow, lowest temperature tonight about 44 de- grees. Temperatures—Highest, 75, at 3 pm. yesterday; lowest, 54, at 6:15 a.m. today, Full report on page B-5. Closing New York Markets, Page 18 Entered as second class matter post office, Washington, D. No. 33,557. SIX IN CONGRESS HELD SHARERS IN LOBBY HOUSE Spokesman of Power Interests Says He Invited Group and Divided Rent Expense. PETTINGILL BILL DISCUSSED WITH AT LEAST 50 MEMBERS Chairman of Investors’ Conference Hits Efforts of Committee to Delve Into Perscnal Finances. BACKGROUND— ARt As vehicles jor political publicity, investigations always have been a favorite sport on Capitol Hill Principal one under way at present is that of Senate Committee probing lobbying activities of special interests; legal battle over constitu= tional rights of defendants may influence future course of all investiga- tions. Issue was raised over right of committee to examine all files of telegraph companies. Last week Chicago law firm gained court injunc- tion here against wholesale surrender of its messages; later W. R. Hearst also instituted court action against committee. Investigations into operation of Bureau of Air Commerce and into activities of old-age pension groups promise fireworks for Spring. —_ BY REX COLLIER. Disclosure that six Democratic members of Congress shared & house last Summer with a representative of railroad and power association interests today led Acting Chairman Schwellenbach of the Senate Lobby Committee to denounce lobbyists “who come here and monkey with Congressmen.” Robert E. Smith, chairman of the National Conference of In- vestors, testified he rented a home at 3126 Thirty-eighth street l;ist August and invited “some of the boys to live with him there during the hot spell.” The six members of Congress who accepted the invitation, Smith said, were Representatives Pettengill, Indiana; Scrugham, Nevada: Sutphin, New Jersey; Cary, Kentucky; Fiesinger, Ohio, and Clark, Idaho. Smith explained that he and the Representatives divided ex- | penses “seven ways.” Representative Pettengill was author of a bill to repeal the long and short haul section of the interstate commerce act to which utility interests were opposed. Smith said he had discussed the Pettengill bill “with not less than 50 Congressmen.” In response to vigorous questioning the witness said he had entertained many of these Congressmen in his home. E “Did you tell them you were a lobbyist in the pay of railroad and power companies?” Schwellenbach demanded. “No,” the witness replied, “but sev- eral of them knew it, I'm sure.” “When anybody comes here and monkeys around with a bunch of Congressmen it is his duty to tell them who's vaying his expenses,” Schwellenbach declared. “Why didn't you tell them the railroads and power people were paying 90 per cent of your expenses?” Considers Income Percentage. Smith would not agree as to the percentage of his income from utilities. He objected to the committee going nto his “private personal financial affairs” when he was asked how much money he had at the beginning of last year. Schwellenbach said the inquiry was pertinent because of Smith’s tes- timony that he had used personak funds in his lobbying work as “ad- wvances to be repaid.” He said he advanced more than $9,000 last year, of which about $7,000 | was repaid. About $19,000 was con- tributed by power companies. Smith said he had had members of Congress to dinner, but he claimed | that generally they came to attend “meetings, particularly on the Petten- gill bill.” It was brought out that some of the funds for payment of Smith's sal- ary came from the Washington Water Power Co., a subsidiary of the Electric Bond & Share Co. Various Residences Given. Smith said he lived at various ad- dresses last year, spending some time at Woodley Park Towers, later at 1612 Webster street and then at the Thirty-eighth street house, which he #aid he rented from “a colonel.” He now is living at 4725 Brandywine street, where he said he had en- tertained Pettengill last week. Senators named by smith as visitors et his Washington home included Chavez, Democrat, of New Mexico; Steiwer, Republican, of Oregon, and Murray, Democrat, of Montana, and the following members of the House: Knute Hill, Democrat, of Washing ton; Zioncheck, Democrat, of Wash ington: the late Wesley Lloyd, Demo- | crat, of Washington; Smith, Demo- crat, of Washington; Mott, Repub- lican, of Oregon: Ford, Democsat, of California; Dockweiler, Democrat, of California; Costello, Democrat, of California; Englebright, Republican, of California; White, Democrat, of Idaho; Murdock, Democrat, of Utah; Robinson, Democrat, of Utah; Green- way, Democrat, of Arizona; Martirm, Democrat, of Colorado; Lewis, Demo- crat, of Colorado; Greever, Democrat, of Wyoming; Werner, Democrat, of South Dakota; Christianson, Repub-. lican, of Minnesota; Knutson, Repub- lican, of Minnesota; Maas, Republican, of Minnesota; Hennings, Democrat, of Missouri; Ferguson, Democrat, of Oklahoma; Fuller, Democrat, of Ar- kansas; Chapman, Democrat, of Ken- tucky; Gregory, Democrat, of Kentuc- ky; Dicksen, Republican, of Illinois; Michener, Republican, of Michigan; Harlan, Democrat, of Ohio. Black Subpoenaed. Shortly after today’s hearing began Chairman Black, whé was not presid- ing, was served with a subpoena re- quiring him to appear later in Dis- trict Supreme Court to answer an injunction suit brought by William Randolph Hearst. Deputy Marshal Harry C. Allen walked up to the dais where the Senators were sitting to serve the paper. Aroused by this action, Schwelien- | peared bach delivered a scathing attack on “special interests seeking to stop the committee’s work.” Schwellenbach, acting chairman in ROBERT E. SMITH, Host to members of Congress. —A P. Photo. deference to the request of Black, charged there is a concerted drive by “Hearst, the public utilities, the Amer- ican Liberty League and other spe- cial interests” to frustrate the com- mittee's lobbying expose. $3,500.000 Held Spent. The disclosures to date, Schwellen- bach declared, show 31z million dol- lars were spent by public utilities “to defeat one single piece of legislation.” He apparently had reference to the lobbying drive last year against the ‘Wheeler-Rayburn holding company bill. Interrupting the questioning of Smith, Schwellenbach called on the process server to perform his duties. Allen came forward and handed the papers to Black as photographers flashed their lights and clicked shut- ters. Black smiled and bowed as he accepted the subpoena. Schwellenbach thereupon mgade the following statement: “There has just been served on the chairman of this committee a sub- poena by William Randolph Hearst, the purpose of which is to prevent the committee from proceeding with its work. “This work to date has shown that $3,500,000 were spent by the public utilities in an effort to defeat one single piece of legislatiop. “If the utilites, Hearst, the Ameri- can Liberty League and other special | interests who have engaged in the campaign to defeat legislation should succeed in their effort to prevent this committee from >roceeding with its work, the next logical step will be for such interests to come into court and have a subpbena served on the Senate itself and on the Vice President of the United States.” The subpoena was in a suit filed in District Supreme Court to prevent the committee from examining copies of (See LOBBY, Page A-2) Boy Missing in By the Assoclated Press. TWO BUTTES, Colo, March 16.— Three-year-old Steve Benson walked into a farm house today after spend- ing the night lost in one of the worst dust storms ever to strike this area. More than 500 persons were search- ing for the boy, expecting to find him smothered or frozen to death, when he reached the farm home of Dewey Fetters, 6 miles from where he disap- yesterday afternoon. “I slept out,” he said. “Saw the cows.” Almost immediately he fell asleep. Doctors examined him and said his l - Che Ty WASHINGTON, D. C, MONDAY, MARCH 16, 1936—THIRTY-EIGHT PAGES. ### OFFICIALS CONFER |Aid May Be Limited to Un- employables as Funds Are Cut. BULLETIN. A delegation of 10 unemployed heads of families appeared at the District Building today just as a ocnference of the Public Welfare Board was convening to consider ways and means of providing funds to meet the relief needs to the end of the present fiscal year. They were kept outside the office of Commissioner Allen while the conference inside was getting under way. The group insisted adequate funds be provided to care of relief families. District relief officials were to meet today to decide whether they should order a horizontal cut in relief dis- bursements or furnish aid only to the unemployables among the 30,000 per- sons receiving financial help. This emergency meeting was called Budget Director Bell had slashed the requested supplemental relief appro- priation from $608.000 to $250,000. Since the requested $608,000 would have provided relief only to July 1, and did not allow for any new cases, officials viewed the reported cut with grave concern. “Frankly,” sald Judge Michael M. Doyle, acting chairman o. the Board of Public Welfare, “we Jon™ know | what we are going to do. Unless Con- gress takes some action many of the 30,000 people now on relief will have to go without the necessities of life during the next three months.” Families Notified. Welfare checks mailed Saturday to the 9,000 families and unattached in- dividuals on the rolls were accompa- nied by the following notice: “This is the last relief we will be able to send you until additional funds are available. The District Commis- | sioners have requested that the Con- gress of the United States make an | emergency appropriation to carry re- lief until July 1. Until such an ap- vropriation is made, no more relief can be supplied.” Officials had figured on $608,000 as an absolute minimum to provide for the needy, and if this is to be cut to $250,000, it was pointed out, the only solution is to drop thousands from the rolls or effect a horizontal cut. ‘The meeting today, which is to be attended by Welfare Board officials and Commissioner George E. Allen, probably will result in a combination of a horizontal cut and the dropping of many from the rolls. In some quar- ters it has been suggested that aid be withdrawn from all but unemploy- ables. Position Explainec. In discussing the announcement that no further relief’ checks would be sent out until additional funds are available, Judge Doyle said: “This action is necessary because relief funds will be practically ex- hausted on April 1, and if no further appropriation is made the balance will be barely sufficient to carry the necessary accountirg and similar services, office rent and so forth, which will be necessary to keep the Public Assistance Division operating on an emergency basis until the new appropriations becoms available July 1. “Through the next two weeks—that is, through March 31—when all relief will have tc stop unless an emergency appropriation is made by Congress, emergency relief will only be given to cases which were actively in the care of the Public Assistance Division on March 14.” Dust Storm Appears After Night in Open | condition was “exceptionally good” considering that he had been in the open for hours in a dust storm that reduced visibility to zero. He was taken to & hospital at Lamar. Veteran resiednts of the Southeast- ern Colorado “dust bow]” were amazed that the child lived through the night. The temperature dropped to below freezing and the boy was clad only in overalls. He had lost his shoes and sand ON NEEDY PLIGHT following the disclosure that Acting | gy WITH SUNDAY MORNING EDITION 1 WONDER WHAT D Do WITHoUT HOSE FELLOWS! Roosevelt Joins Last-Minute Rush | With Tax l\clurn By the Assoclated Press. s President Roosevelt joined hundreds of others today in the last-hour rush to file income tax returns, He set aside the luncheon hour for making out the return on his 1935 income, which must be filed before midnight. As usual, Mr. Roosevelt com- piled his own return without ex- pert assistance. The President receives a salary of $75,000. on which he pays an income tax, as do all officials of the Government WORK INSURANCE LAWHELD INVALID New York Statute Ruled Ar- bitrary Transfer of Prop- erty to Another. By the Associated Press. ALBANY, N. Y., March 16.—Su- preme Court Justice Pierce H. Rus- sell today held unconstitutional the New York State unemployment insur- ance law. The judge refused to grant an in- | junction asked by the Associated In. | dustries of New York State, however. He said he did not wish to stop the State’s job insurance machinery from operating until the State’s highest court, the Court of Appeals, has passed on the law's constitutionality. A case involving constitutionality of the law is before the Court of Appeals. | In his opinion, Justice Russell said: | “It is my opinion that the com- | pulsory contribution by an employer | to be paid as an unemployment insur- | ance benefit to an employe of an- system of government and constitutes unwarranted, unreasonable and arbi- trary transfer of the property of one 1w another in violation of the due process clause of the Constitution.” Railroad Case Cited. This principle, the court said, is | the basis of the United States Supreme Court’s decision in the Railroad Re- tirement Board case. “As the courts of this State are bound to follow such decisions, in cases where its interpretation of the Constitution applies, then it is decisive upon the validity of the unemploy- ment insurance law of this State,” he wrote. William J. Picard, deputy State Industrial commissioner, said the case would “be carried to the United States Supreme Court, if necessary.” “We already have a decision from the Supreme Court at Syracuse that the law is constitutional,” Picard said. “This means that there are two different interpretations, evidently based on two different points of law.” closely similar to the national law. 3 Per Cent of Rolls Asked. The New York law required the payment, beginning Msarch 1, 1936, of contributions equal to 3 per cent of pay rolls, except that in 1936 the contributions are only 1 per cent, and in 1937 2 per cent. The law applies to employers who hire four or more persons. Benefits become payable March 1, 1938. . Justice Russell said the State con- tended that industry creates unem- ployment and that therefore industry should pay toward the cost of miti- gating it. “I do not agree,” he said, “with the premise that unemployment is caused by the omission of any legal duty or the commission of any wrong by industry as such or that the byr- den to maintain a condition of em- ployment is one that industry assumes and must discharge * * *. “Industry lives and thrives on em- ployment of its workers. It dries up and dies when its condition precludes the employment of workers, and when it is so burdened by exactions that its condition demands such preclusion, then loss and misfortune follow both to it and its employes.” Held on Narcotics Charge. William B. Salsbury, 60, a painter, who lives at the Gospel Mission on Fifth street, was arrested early today and charged with possession of nar- cotics. He was to be given a hearing at 1:30 p.m. before United States Commissioner Needham ©. Turnage, | other is without validity under our New York’s job insurance law is| PROCESSING TAXES AGAIN CONSIDERED |Congress Struggles With Program With Eye on Income Levies. BACKGROUND— While income tax receipts prom- ise to exceed those of recent years, new levies are being considered by Congress. Specifically, plan under examination is for assessing undis- tributed corporation profits, such taz to replace present ones on cor- poration income, excess profits and capital stock. In operation, proposed tar sup- posedly would force greater divi- dend disbursements with these, in turn, tazable through individual | income levies. Two major weak- nesses have been disclosed in scheme: One, that foreign holders of American stock are not subject to individual income tares of this country and, two, that wholesale distribution of corporate reserves would weakeén companies in time of business depression. A possibility that congressional tax drafters may have to resort to proc- essing taxes to fill out President Roosevelt's $792,000.000 revenue pro- gram appeared today, despite a desire among both Democrats and Repub- |licans to avoid such election-year | levies. | “We don't have to go to processing taxes, but we shall have to go some- where to get $792,000.000,” Chairman | | Hill of the House Ways and Means | Tax Subcommittee said. | “Of course, if the March 15 in- come tax returns show a very grea increase over estimates, that would help a lot.” | The subcommittee, he told reporters, spent two hours this morning strug- | gling over the question of how to | collect income taxes from foreigners on their dividends . from stock in | American corporations. No decision was reached. Hill said the subcommittee wanted to approach the President’s figure “as nearly as we can.” N | Studies to Be Concluded. | He added that the subcommittee ex- | pected to conclude its revenue studies | this week, so that open hearings be- | fore the full Ways and Means Com- mittee could start next week. Wheth- er the subcommittee will file a report | on its findings with the full commit- | tee or submit a tentative tax bill has | not been determined. Hill said estimates of the windfall tax yield varied and “if we get $100,- 000,000 it will help some.” The sub- committee is not “too optimistic,” he said, about getting as much as $150.- | 000,000, even if the highest legal tax is imposed to recapture refunded or unpaid processing taxes. | The Treasury has suggested a 90 | per cent levy on incomes derived from | the return or non-payment of the old processing taxes. | Few at Collector’s Office. In Washington the office of the dep- Twelfth street and Constitution ave- nue, drew a surprisingly small crowd this morning. despite the fact this was Government pay day. Many were expected to file returns later in the day, however. Government experts were available during business hours only at 10 down- town banks. Returns from here also may be mailed to the collector of in- ternal revenue at Baltimore, the head- quarters for this collection district. Many legislators hoped the returns throughout the country would be much larger than estimated. In that case, some of them believed, Congress might scale down the new tax program advocated by President Roosevelt to finance the farm aid act and part of the bonus' cost. . Because of the approaching cam- paign, many legislators have indicated they want to make the tax program as small as possible. Treasury Optimistic. The Treasury was optimistic about the income tax returns. In the of- ficial budget calculations the de- partment’s experts estimated that & minimum of $438,000,000 would be re- ceived this month, compared to $321,- 907,000 last March and $228,525,000 in March, 1934. Unofficially, however, the Treasury Star LEAGUE REJECTS The only evening in Washington wit! Associated Press News and Wirephoto Services. (®) Means Associated Press. aper the Circulation Over 140,000 TWO CENTS. HITLER PACT PLAN “CONDITION,” ACCEPTS NAZI EQUALITY <@ Reich Soldiers! |Flandin Takes H P Chief Role in || ‘;afe flalse Europe’s Drama (V) aaer, CANNOT LOSE, FUEHRER SAYS “Day of Freedom” Is Marked Quietly by Nazis. BACKGROUND— European observers predict that Germany will be best equipped fighting nation in Europe in an- other two years; past 12 months of intensive preparation has given them formidable status but still leaves them short of air training and experienced officer personnel. Recognizing this condition, and motivated by a mizture of fear and vengeance, France favors immedi- ate steps to keep Germany in sub- jugation. Russia has pledged aid but must watch Japan at her back. Italy, seeking concessions in Africa, stands by to bargain. Britain, neither desirous nor ready for war, seeks compromise, but realizes ne- cessity of keeping Germany beyond French borders. FOREIGN MINISTER FLANDIN. BY CONSTANTINE BROWN. The main actor on Europe's po- | litical stage, where the Franco-Ger- | man drama is being played, is Pierre- | Etienne Flandin, the 6-foot-2 French | foreign minister. | Flandin, a man of means and a| | keen polo player, is known through- | out Europe for his stubborness and | his Anglophile policy. He speaks By the Associated Press | English perfectly and is convinced | BERLIN, March 16.—Reichs- | that France's salvation can come only | fuehrer Adolf Hitler, declaring from intimate co-operation with Great | @« | | i uty collector of internal revenue, at | Germany’s armies “can never be conquered,” conferred new regi- mental flags by decree on his armed forces today, on the first anniversary of Germany’s re- armament in defiance of the| | Versailles_treaty. | “The old armies’ glorious |career was cut short by the | events of 1918,” Der Fuehrer said in his decree, issued in his role as supreme commander in chief of the Reich’s Army. | “The gallant soldiers whose spirit | | has been well tried in past cemuries[ | may be repressed in times of nntionnl‘ misfortune, but they can never be! conquered.” Der Fuehrer also introduced a new | order for “faithful military service.” | Berlin Marks Anniversary, Trumpet calls summoned Berlin' to the celebration of the first anniversary | of Hitler's creation of a new army. Hitler's coup, carried out in the | manner which characterized his occu- pation of the Rhineland this year in violation of the Locarno pact and Versailles treaty. was termed by him | the mark of an “independence day.” Nazis declared that act of rearma- ment placed Germany back in the ;ranks of the great European powers, making of March 16 their “tag der | freiheit”—day of freedom. Rearmament Programs. | The rearmament of the Reich on land, sea and in the air has progressed | swiftly in the year that has passed, |24 of the 36 army divisions contem- | plated having been created. A great celebration of the occasion | will be held tonight in Berlin's lust- garten. MILITARY DISPLAY BANNED. Quiet Observance in Provinces—Hitler to Speak Tonight. (Copyright. 1936, by the Associated Press.) FRANKFORT-ON-MAIN, Germany, March 16.—The remilitarized Rhine- land celebrated “arm, day,” the first anniversary of German rearmament in defiance of the Versailles lrelty.‘ with observance of the “symbolic” character of the troop occupation now 10 days old. Military pomp was banned. Parades | were sketchy. No display of air power took place at the airdrome, though a drawn up before the hangars. The mild: ess of the observance was due in part to the dampening influence of the internationai situation. The deliberate emphasis on the “symbolic” character of the military occupation, so characterized by Reichsfuehrer Agolf Hitler a week ago last Saturday, led to the can- cellation of a big-scale troop review | scheduled for today. i kind here since 1914. Goering Inspects Air Force. | As Frankfort-on-the-Main awaited the arrival of the German dictator for an address tonight, 19 battalions of regular troops contented them- selves with a brief before-breakfast “militar wecken” march through the streets. Then they retired to bar- squadron of small scouting planes was | | It would have been the first of its | Britain and the United States. When he visited President Roose- velt at Hyde Park in September, 1934, | he spent about an hour and a half | (See FLANDIN, Page A-3.) | | | | | ALCALA PROPERTY SEIZED N SPAIN President’s Aunt Attacked. Army Threatens to Act if Riots Continue. | By the Associated Press. ! MADRID, March 16.—Extremists | today seized extensive properties owned | by President Niceto Alcala Zamora. | An aunt of the President was at- | tacked by the extremists, but saved | from serious injury by police. The sudden attack on the President’s property and family came despite | an order from Leftist leaders to their followers to stop demonstrating. | | Mobs, alleged by police to be made up of Communists, occupied the president’s big estate at Priego de Cordoba and tried to storm the home | of Senorita Gloria Torres, the 74- year-old maiden aunt of the chief executive in Jaen province. Her retainers barricaded the house | and sent word to Civil Governor Fran- | cisco Rubio, who rushed two trucks | of storm police to the beseiged man- | sion. Others Taken to Prison. Senorita Torres, the Marquess de | las Fuentes del Moral, another rich ! property holder in the neighborhood, and three local priests were taken to the city of Jaen and placed in prison | on the governor's orders to their personal safety. Another mob of alleged Communists, | attacking the presidential estates at Priego de Cordoba, drove off the care- takers and proceeded to parcel out the land among themselves. Army leaders notified Premier Man- uel Azana yesterday, reliable sources | disclosed, that unless the new Left- Republican government took measures to end the violence, the army would itself assume the task of maintain- ing order. Premier Azana immediately con- ferred with Francisco Largo Caballero, | president of the Socialist party, anfl‘1 in a heated conversation, demanded that the violence end at once. Largo Caballero was understood to have insisted the Socialists be al- lowed to demonstrate, in celebration of their triumph at the February 16 parliamentary elections, which put the Azana government in power, but | the premier declared he would hold the Socialist leader personally respon- sible for further disorders. Nation-Wide Order Issued. Informed sources said Largo Cabal- lero then issued nation-wide orders for Socialists to terminate all forms (See BERLIN, Page A-3.) Entries for the leading tracks will be o Interesting com Scratches Selections NOON EDITION @he Foening Stad scenes of racing. (See SPAIN, Page A-4) insure | American race found in the f ment from the Berlin’s Answer Held Clarified by Envoys. TREATY TALK “LATER” IS SEEN Six Powers Uphold France Opposing Discussion. | (Copyright, 1936, by the Associated Press.) LONDON, March 16.—The League of Nations Council, in secret session, agreed today to Reichsfuehrer Hitler's demands for equality, but flatly re- | jected his “condition” that the Coun= | cil must discuss his peace proposals. Hitler had offered to send a repre- | sentative to the Council’s deliberation on Germany's remilitarization of the Rhineland only on a basis of full equality in the conference and with the understanding that his recent offer of new peace pacts would be considered. Six nations, headed by France, op- posed Hitler's insistence on bringing his peace proposals up simultaneously with the discussion of the Rhineland reoccupation. The other nations with France were Turkey, Spain, Russia, Poland and Rumania, Council Votes Unanimously. The Council then voted unani- mously to accept Hitler's first condie tion and to reject the second. The vote was interpreted as tanta= mount to a qualified refusal of Hite ler’s conditions. The Council was agreed that Gere many was entitled to sit in the Coun- cil on an equal footing with the other Locarno powers—that is, without the right to vote. The Council ruled, however, that the Reichsfuehrer’s proposals were a mat- ter, not for the Council, but for the signatories of the Locarno pact. It was understood that the Council decided to draft still another invita- tion to Germany to attend the League session. Clarify Hitler Reply. Earlier in the day members of the Council sought to clarify Hitler's reply to the invitation to send a representa- tive to the Council. * The clarification, it was said, would be to clear up just what was meant by the word “alsbald” contained in the telegram Joseph A. C. Avenol, secre- tary general of the League, received from Hitler last night. The German Embassy in London, while the British cabinet was con- sidering the situation, informed the foreign office that the correct trans- lation of the word is “in due course” instead of “forthwith,” as the Council secretariat officially translated it. The new translation puts a modi- fied interpretation on Hitler's condie | tion for sending a representative to the Council's session. Hitler’s reply originally was inter- preted to mean that he demanded the negotiation of his peace pro= posals simultaneously with the dis« cussion of his denunciation of the Locarno pact. Might Be Accepted by French. The new translation might mean that consideration of his proposals could come at a later date. which might be acceptable to the French. Last night the French denounced Hit- ler's reply as impossible. The German Embassy explained that it communicated with Berlin and was informed that Hitler meant “in due time” rather than “immedi- ately” and that the word “alsbald” was translated differently by North and South Germans. Germany's position now is under- stood to be that she will attend the council session on a footing of equality if assured that the powers concerned are prepared to enter into negotia- tions in due course with regard to the German proposals. French sources indicated that this change made the sitnation more hope- ful, although Foreign Minister Flandin and Joseph Paul-Boncour, his minis- ter of state, refused to comment. Flandin was understood to have received fresh instructions from Pre- mier Sarraut to “get action” from the council. Despite reticeace in official quarters, there was some reason to believe that the modified interpretation of the word was regarded by the British as important, although it was recognized that the final decision rested with the French and Belgians. Secret Session Held. ‘The heads of the various delegae tions went into a secret session at 3:55 p.m., following a good deal of discussion as to whether the session be public, private or secret. Representatives of France, Russia and the Little Entente asked that the (See LONDON, Page A-3.) Readers’ Guide Amusements Answers to Questions _ Comics - Cross-word Puzzle - Editorial