Evening Star Newspaper, July 28, 1936, Page 1

‘WEATHER. (U. 8. Weather Bureau Forecast.) Showers tonight and tomorrow; slightly cooler tonight; gentle shifting winds. ‘Temperature—Highest, 84, yesterday; lowest, 70, at Full report on page A-2. Closing New York Markets, Page 14 No. 33,691. 4a Entered as second class matter post office, Washington, D. C. D, MAN BURNED NS FOREST BLAZE * TARES LIVES 0F Dr. M. M. Knechtel Head of U. S. Survey in Montana. Two of Party Dead. DASH THROUGH FLAMES TO REACH SAFETY FATAL Cave Provided Refuge for Some, | but Was Too Small for All One Dies in Hospital. Three men, two of them members of a field party of the United States Geological Survey, were burned to death in a raging forest fire near Havre, Mont., last night, after their Jeader, Dr. Maxwell M. Knechtel of Washington, had tried to save his group by leading them to a cave. One thousand men were thrown into the battle against the fire. Dr. Knechtel sustained burns him- self, but had virtually recovered in a hospital at Malta, Mont., today. The dead are: Cameron Baker, Havre, Northwestern University grad- uate student, and S. R. Brockunier, Lowell, Mass., Yale University graduate student, both members of the geologi- cal party, and John Rowles, Landusky, Mont. Rowles was listed by the As- sociated Press as dead. He was not a member of the survey party. Three in Party Survive. ‘Three members of the party sur- vived. They were Dr. Knechtel, Arthur C. Munyan, Lexington, Ky, his assistant, and Donald L. Baben- roth, Columbia University. John McCarthy, jr, son of the superintendent of schools at New Haven, Conn,, first was listed as miss- ing, but later reported he had escaped uninjured. He was not listed here as a member of the survey party. A graphic story of the forest fire which raged along a 25-mile front in the Little Rocky Mountains was told today in a memorandum issued by G. F. Loughlin, chief geologist, after a telephone conversation with Dr. Knechtel at 11 am. The statement follows: “Dr. Knechtel and his party were impressed into fire fighting in the Little Rockies. The work was being directed by men experienced in fire fighting, but the wind suddenly shifted, turned the fire back away into a crown and trapped the party. “The leader had them run to a ledge, where he thought they would be safe, but when that failed to provide safety, some of them ran into a small cave. Knechtel called to the others to come also into the cave, and they did, but it was such a small place that those on the outside of it were in danger of burning, and so made a dash to at- tempt to reach safety. Taken to Hospitals. “Knechtel, further in the cave, did not see exactly what happened but Baker and Brockunier were burned 50 badly that it was fatal. Knechtel and the others in the cave suffered from shock, and smoke in their lungs and eyes, and were taken to hospitals in Malta, Mont. Knechtel has re- covered and his voice was normal in conversation with Mr. Loughlin. If he received any wurns, they evidently were of slight extent. Babenroth, an- other member of the party, was not in a place of danger. Munyan, an- other member, was in another por- tion of the district.” Rowles, it was brought out, might have been a temporary member of the party, possibly hired a few days ago. However, no employment cer- tificate for him has arrived yet in the Washington office, according to Hugh D. Miser, chief of the fuel sec+ tion by which Dr. Knechtel is em- ployed. Brockunier was still alive when he ‘was carried out of the fire area, but died in a hospital at the Fort Belknap Indian agency. The fire, described as the worst known in the Little Rockies, broke ous near Lodge Pole, Mont., and for a time threatened the mining camp at Zort- man, famed for its activity in ter- ritorial days. The region is noted for its gold and silver mines, still producing after years of activity. Every available man on the Fort Belknap Indian reservation in Harlem and Malta, and from the nearby mining camps and farms, was pressed into service to fight the fire, Radio Operators Brought, ‘Trucks and men were brought from Missoula, Great Falls and Helena, and airplanes brought two radio operators and supplies. Mules were used in areas inaccessible by truck. Accompanied by Babenroth, Dr. Knechtel left here April 29, picking up Baker at Evanston, I, seat of Northwestern University, to organize the fleld party studying Montana's mineral and water resources. Brockunier, according to the Asso- ciated Press, was burned fatally at- tempting to get out of the path of the fire that ate huge chunks out of the timber, unusually dry after days of 100-degree temperatures. . A survivor whose name was not learned told forestry service chiefs of the attempt of McCarthy to rescue Baker and Rowles as flames were sucked into the cave where they took refuge. Tried Vainly to Save. “McCarthy rushed in the cave and tried to drag the two men out, but there was no chance for them. They must have died instantly,” the sur- vivor said. “Someone, I don't know who, had to hit McCarthy and knock him out to get him away from there.” Baker, born at Baldwin, Iowa, was & graduate of Montana high schools and eolleges and during the past schocl year held a teaching fellowship at Northwestern University. Dr. Knechtel's residence here is at 3621 Newark avenue. Mrs. Knech- tel could not be reached at the home today. Miser said he un- derstood she had been under great strain on account of the news from Montana and probably was staying with friends in another section Bthe city. 4 Hurt in Fire DR. MAXWELL M. KNECHTEL. —Harris-Ewing Photo, IOWA DEHOCRAT CLAM FARMERS |Roosevelt’s Chances Held Better Than 50-50 at Present in State., BY G. GOULD LINCOLN. Staff Correspondent of The Star. DES MOINES, Iowa, July 28.—Are the farmers sticking by Roosevelt? | That's the question over which both the Republicans and the Democrats | are puzzling their heads. Because what the farmers do in Iowa, heart of the great corn belt, is going to settle the | election, so far as this State is con- | cerned, next November. It probably | will answer the question for the rest | of the agricultural States. Although they admit there have been defections from Roosevelt, the | | Democrats here insist that the great | bulk of the farmers who supported | Roosevelt in 1932 will vote for him | again. They pomt to the prices which | the farmer receives for his produce now as compared to what he was re- ceiving in 1932, when Roosevelt was elected. That, they say, ought to be | enough, unless the farmers have all gone daffy. They quote the prices of corn as 20 cents a bushel in 1932 and 86 cents today; wheat, 30 cents in 1932 and $1.04 today; hogs, $2.50 in 1932 and $9.10 today; beef cattle, $4.30 in 1932 and $6.80 today; sheep, $1.90 in 1932 and $4.25 today; eggs, 8.6 cents in 1932 and 17.9 cents today. In the face-of the advance in pfices, in the face of the fact that the farmer is greatly better off today than at the close of the Hoover administration, why. they ask, should the farmer de- sert Roosevelt and go to Landon, the Republican candidate? G. O. P, Answer Is Cited. The answer given by the Republic- ans may not be logical, but, on the other hand, it may be correct. That answer is made up of a number of items. Some of the Iowa farmers are sore because they did not grow all the crops they were capable of grow- ing, particularly in the face of the probable cut in farm products due to the drought. They figure they could have made more money than they will make, even with the Government’s cash benefit payments under the new farm relief plan of the administration. Some of them do not like to be told what they should or should not grow. Others regard the curtailment of crops, (See DEMOCRATS, Page A-2) INFANTILE PARALYSIS QUARANTINE PLACED Nine New Cases and Another Death Are Reported in Alabama. By the Assoctated Press. MONTGOMERY, Ala, July 28— County-wide quarantine was invoked today while reports of nine new cases and another death spurred health au- thorities’ fight against a tri-State out- break of infantile paralysis, Lauderdale County in the Muscle Shoals area of Northern Alabama was placed under partial quarantine by or- der of the County Board of Health after the territory’s fifty-fourth case was reported. Dr. W. D. Hubbard, Lauderdale health officer, said all public meetings had been canceled and all theaters, churches, courts and swimming pools ordered closed until further notice. Lauderdale County has a popula- tion of 41,000, and its chief city is Florence, which has about 12,000 in- habitants. One death and seven new cases were reported in Alabama Monday, and two persons were stricken in Tennes- see. Spread of the disease apparently was checked in Mississippi, which re- ported its latest new case last week. ‘The epidemic has resulted in 17 deaths and 285 persons have been attacked in the three States. French Air Crash Kills Four. CHARTRES, France, July 28 (#).— Four members of the crew of a French ‘bombing plane were killed today when the plane crashed near the village of Aulnay-Sous-Ouneau. The pilot land- ed safely with a parachute. Olympic Flame wved from extinguished by a pile of beer ch WITH SUNDAY MORNING EDITION ¢ Foening Star WASHINGTON, D. C, TUESDAY, JULY 28, 1936—THIRTY PAGES.%*k* WILD CROWD FILLS STATE ASSEMBLY, CRYING FOR RELIEF Keystone Senate in Uproar Early Today for 2 Hours. Adjournment Delayed. SHOUT AT LEGISLATORS “WE WANT $100,000,000” Mob Hurls Pieces of Wood in Chamber, Angry at Failure to Agree on Aid. BACKGROUND— Special session of Pennsylvania Legislature called 13 weeks ago by Gov. G. H. Earle unable to agree on relief appropriation. Compromise reached at $45,000,000. Means of raising this sum undecided, relief was halted last Tuesday at mid- night. In protest against termi- nation of aid, an army of jobless descended on Harrisburg Monday of last week and occupied the Cap- itol Building. By the Assoclated Press. HARRISBURG, Pa., July 28.—An- other shrieking crowd of jobless men and women scrambled into the gal- leries of the House and Senate to- day, bent on the same wild picketing of the Legislature which delayed ad- journment of the Senate two hours in the early morning. “We want $100,000,000 for relief and we're here to get it,” they shouted. “We won't let our kids starve,” women called down on the assembling Senators. | An hour before the Legislature was to meet, in a new effort to agree on means of providing $49,500,000, mostly for relief, the galleries were filled. Food Money Nearly Gone. Hundreds milled about the marble rotunda, where they slept last night on cots, on the floors, on the steps and in the darkened corridors. Three women and five children who slept peacefully dyring last night's uproar didn't leave their cots until long after dawn. ‘The nearly 2,000 marchers who stayed overnight were told at break- fast that the $4,000 Gov. Earle set aside to feed them is about gone. “There will be no money for meals today unless we get more funds,” Dave Lasser, president of the Work- ers’ Alliance, announced. | In a wild demonstration that in-{<4hrew cluded hurling of pieces of wood from the galleries, a crowd of unemployed men and women blocked for two hours adjoyrnment of the Senate early today. The crowd ripped boards from food crates, banged on the rails of the gal- lery, stamped its feet, shrieked, howled and booed every move the Senate made. “Army” Grows to 2,000. ‘The unemployed “army,” which en- tered the Capitol a week ago yester- day, grew into an organization esti- mated by police at more than 2,000 last night. Refusal of the Democratic House to bring out a bill by Darlington Hoopes, Berks County Socialist, to provide $100,000,000 for relief, brought a storm of protest from the House gallery. The House quit for the night a short time later amid shrieks of protest. When the Republican Senate also tried to adjourn the galleries went wild. For two hours numerous efforts by Clarence Buckman, Bucks County Re- publican, to bring an adjournment were howled down. Pleas of Lieut. Gov. Thomas Ken- nedy that the gallery cease its uproar aroused the visitors further. Legis- lative machinery stopped. Senators sat watching the demonstration. The Senate finally recessed at 1 am., Eastern standard time, Session Called 13 Weeks Ago. ‘The special session, summoned 13 weeks ago by Gov. Earle, was unable at first to agree on the amount to be appropriated for relief. A compro- mise finally was reached on $45,000,- 000, an exact split between the Sen- ate’s suggestion of $35,000,000 and the administration’s $55,000,000. The present snarl arose over the means of producing the $45,000,000. While the two chambers remained at odds on various measures, the $3,000,- 000 appropriated for relief two weeks ago was exhausted and rellef was cut off last Tuesday midnight. — BOWERS TO BROADCAST Ambassador Spain This Afternoon. Ambassador Claude G. Bowers will describe the progress of the revolu- tion and the condition of Americans in civil war-torn Spain in a special trans-Atlantic radio broadcast this afternoon which may be heard lofally over WJSV from 4:15 to 4:45. A quarter of an hour after the ambassador’s report—from § to 5:15— Will Speak From CAMPAIGN FISH STORIES! IUST WASTIN YOUR ME, JIM, 1" 'Efi'R’LL"F“’ BOLTED DR CLL N COD SAYING Maid’s Chart Shows Mur-| derer May Have Returned Atter Killing Girl. BACKGROUND— On a vacation trip in Asheville, N. C., pretty Helen Clevenger, 18- vear-old co-ed, was assaulted and slain in her room at a fashionable resort hotel. Several, including her uncle, a professor at North Caro- lina State College, have been ques- tioned regarding the crime, but to date the case remains a mystery. Dy the Asscciated Press. ! ASHEVILLE, N. C, July 28—A hotel chambermaid's chart showing | the door to Helen Clevenger's room was locked from the inside 10 minutes before her mutilated body was found the mystifying murder case open to further questions today. The chart, officers said, disclosed | the door was locked at 8:20 am. on July 16, slightly more than seven hours after the New York University sophomore was assaulted and shot. The announcement raised these points: If Miss Clevenger's room Was locked from the inside, as the chart indi- cated, was the murderer in there at 3:20? Was he there from 1 am, when several guests at the fashionable hotel heard a woman’s agonized scream, until 8:20? Or was the murderer a man whom a bellboy saw scurrying from the mez- zanine to the outside into a thunder- storm at 1 am.? Did “Mystery Man” Return? If this shadowy form, the so-called “mystery man” of the case, was the murderer, did he return to the girl's room later to destroy clues he left behind? ‘The girl's uncle, Prof. W. L. Clev- enger, said at the coroner’s inquest that when he went to his niece's room at 8:30 am. and found her body the door was not locked. The sheriff’s office, to whom the cf¥ne was reported at 10 a.m., said a “super-master” pass key was found in the lock on the outside of the door. Hotel officials reported there were only 11 such keys, issued only to au- thorized employes; yet Sheriff Lau- rence E. Brown said a check showed the key in the girl's room made 12. The testimony of the colored cham- bermaid, Evelyn Moss, was disclosed by Chief Deputy Frank Messner, who said she was questioned exhaustively. The maid’s chart, he said, showed the door was locked when she made her 8 am. round. ‘When rooms are locked from the in- side, Messner said, it is indicated by a (See CO- Page A-4) CONSUMERS.TO PROTEST U. S. MILK CONTROL PLAN Delegation to Lodge Objection ‘With Chairman King—Mrs. Boyle Heads Group. A consumer delegation will make a formal protest to Congress at 1 p.m. today against the proposal of Federal control of the milk supply of Wash- ington. The protest will be lodged with Chairman King of the Senate District Committee. At the head of the con- sumers will be Mrs. John R. Boyle, jr., chairman of the Washington Con- the Columbia System will present the first broadcast from Madrid since the rebellion against the government started. Broadcast of the Washing- ton-Cleveland game will be interrupt- ed durin gthe programs. Is Kept Alive By Beer Cases, Vienna Hears The flame was carried across the border near Szeged and Budapest. Meanwhile Vienna police grew ap- prehensive and took ‘ precautionary Austro-German accord. The rules pro- hibited the singing of the Horst Wessel —the Nazi marching m:‘a sumers’ Council. Readers’ Guide Amusements Answers to Questions_ Death Notices Hungarian today sald the Olympic flame, | borne in an eleborate ceremony to | Sports . -A-10-11-12 Washington Wayside Women's Features _ Prophecy of Death Is Kept by Pilgrim To Husband’s Grave By the Associated Press. LONDON, July 28.—For 20 years Mrs. Rosina Kemp of Cal- gary, Canada, had told her friends: “When I have seen my husband’s grave at Vimy Ridge I shall be prepared to die.” She fulfilled her wish Sunday, as one of the pilgrims to the un- veiling of the Canadian war me- morial on the bloodsoaked heights of Vimy. Then she boarded the steamer Antonia at Le Havre. Four hours later she was dead of a heart attack. BAHAMAS IN PATH OF RISING STORM Disturbance Is Not Expected to Hit Florida Before Tomorrow. Ey the Assoctated Press. JACKSONVILLE, Fla, July 28.—A tropical disturbance of moderate but mounting intensity moved on the Ba- hamas today as storm warnings were ordered from Fort Plerce to Key West on the Southeastern Florida coast. The Weather Bureau said the dis- turbance was attended by strong winds near the center and fresh winds over a considerable area, but added that it was slowly gaining in intensity. Center Due This Morning. It was expected that the center would pass over Andros Island in the Bahamas, which has a population of about 7,000, some time this morning. The disturbance was moving in a west- northwesterly direction at about 8 miles an hour. “The next 12 hours will tell just how intense the storm is to become,” Meteorologist Grady Norton said. “Its effects will be felt in South Florida in the afternoon, although the center still will be far out to sea.” He explained that the first effects would be fresh winds, and it was cal- culated that at its present slow pace the center of the storm could not reach Florida before tomorrow morn- ing at the soonest. Although caution was advised ves- sels in the path of the winds, few were reported in the vicinity. Andros Island is some 225 miles east-south- east of Miami. Disturbance Small. Gordon E. Dunn, Weather Bureau meteorologist, said the disturbance was of small diameter, “which means that in the event it reaches the coast the area affected is likely to be small.” He estimated the strongest winds near the center did not exceed 50 miles an hour early today. Another disturbance which formed in the Gulf of Mexico yesterday passed inland near New Orleans be- fore it could gain dangerous intensity. All storm warnings in that area were ordered down by sunrise. SAFEGUARDS ORDERED. W. P. A. Workers to Be Moved From Danger Area. Deputy W. P. A. Administrator Au- brey Williams took hasty steps today to protect the lives of project workers in Florida, as a tropical storm moved on the Bahamas. He ordered Florida relief officials to move every W. P. A. worker out of the area southeast of Miami. Similar steps, he said, were taken to protect several hundred project workers in the Cape Hatteras district. ‘Williams said there are a number of projects under construction in Key West and the rest of the Florida keys, which were devastated by last year's storm. —_— TWO LANDON PARTIES [ ESTES PARK, Colo., July 28 (#).— Jo’s name at the To- A.-t;ltlnn'l day WP ADSHSSAS MAY REACHCOURT Evidence to Be Turned Over to Federal Attorney, Williams Says. | activities of W. P. A. officials in Okla- | homa will be turned over to a United | States attorney for possible criminal | | prosecution, Deputy Administrator | | day. | Seven prominent W. P. A. officials in The only () Means Associated Press. in Washington wit Associated Press News and Wirephoto ' Services. evening paper the Yesterday’s Circulation, 130,726 (Some Teturns not yet received.) TWO CENTS. SPAIN TO BOMB REBEL CENTERS TO SAVE MADRID Intensified Raids Ordered to Air From Wipe Out Mountain Camps. REVOLTERS LEAVE BESIEGED POST AT LOYOLA, NEAR BORDER Leftist Committee Named in Capital to Take Over “Necessary” Industry. Hard Fighting Flares in North. BACKGROUND— Since King Alfonso decamped, five years ago, Spain has erupted in violent outbursts, sometimes against church and the old conserve- tive state and sometimes against the red banner of the Communists. Churches were burned, priests were exzecuted, workers were ma- chined-gunnéd and rioters wrecked intermittent unrest. Spain today is in a new crisis, homes and offices during five years seeking to establish a government that can rule the country and harmonize the bitter conflicts en- gendered by 29 political parties and religious hatreds. Leftists’ victories in elections last February accentuated the conflict, led to the outbreak of civil war last week. Fighting has been wide- spread from Morocco to San Sebastian, many killed, both sides claim- * ing victory near. Copyright, 1936, by the Associated Press. MADRID, July 28.—Leftist Spain struck at a stubborn, 11-day rebellion with gloves off today, sending new fleets of bombing planes to blast out insurgent garrisons leaguered capital. and exploding rebel ammunition ‘dumps in the Guadarrama Mountains, which guard this be- Intensified, terrible punishment from the air was ordered in | a new attempt to sound the knell of Fascist revolt in outlying cities. From the northwest came official information the long-be- Evidence growing out of the political sieged rebel barracks at Loyola, near San Sebastian, had been taken by the government and that the rebel offenders had surrendered. i In the Guadarrama, however, government claims of successes | Aubrey Williams announced here to- | contrasted with rebel announcements of the capture of a defended | village and the prediction of the insurgent general, Emilio Mola, the State were dismissed last week for | that his men would reach Madrid within three days. A Leftist committee in Madrid was named to take over “neces- | their activities in connection with the | | State Democratic primary of July 7, ! | some of them charged with being di- | | rectly involved in behalf of Representa- tive Josh Lee, who is engaged today in a run-off primary against Gov. E. W. Marland in the senatorial race. Williams® statement was made after a conference with W, S. Key, Okla- homa W. P. A. director, who came | here of his own accord to discuss the situation. | Other cases of political activities are | being investigated, Williams stated, | and steps will be taken to prosecute | vigorously any official believed guilty of violating criminal statutes, Tells of Penalties. ‘The deputy administrator explained that violations of the work relief act | enacted by Congress the last session carries penalties ranging from a $2,000 | fine or one year in jail or both. “I would like to see any guilty of- ficial sent to jail” Williams said. “We will undoubtedly take steps to put any evidence in the hands of the United States attorney.” Williams explained that W. P. A. does not have to find an official guilty of political misdemeanors to fire him, as indirect evidence, such as revealed in the present Oklahoma cases, fur- nished incentive enough for dismis- sals. “The new work relief act,” Williams said, “puts us on the spot. It forbids any discrimination on account of race, religion or political affiliation, as well as the use of fraud, force, threat, in- timidation or boycott in the adminis- tration of relief affairs. “In the case of one official down in Oklahoma,” Williams said, “a worker made an affidavit to the effect that he was given notice of dismissal for re- fusing to vote for one of the candi- dates.” Williams revealed that he has dis- cussed the Oklahoma situation with (See W. P. A, Page A-5.) POLICE CHIEF SHOT Zeeland, Mich., Officer Wounded by Two Fugitives. GRAND RAPIDS, Mich., July 28 (#).—Fred Bosma, police chief of Zee- land, Mich., was shot and seriously wounded early today by two men in an automobile which he had chased to the nearby city of Holland. Bosma, his jaw shattered by a bul- let, was brought to a Grand Rapids hospital. The police chief had become suspi- cious of the occupants of the car and had attempted to stop them. The car bore Ohio license plates. ment of both men and women, bullfighters. of San Sebastian and at Oviedo, Evacuation Delayed, Americans in Madrid To Leave Thursday Reports to the State Department indicated today that Americans who have been sheltered from Spain’s civil strife in the embassy at Madrid still face the ordeal of flight to the sea. While press dispatches yesterday said Americans at the Sapinsh capi- tal were being evacuated by train, Eric Wendelin, third secretary at the em- bassy, advised the department today he planned to take out refugees Thursday morning. In a brief message, timed at 1 pm. (Spanish time), Wendelin said the Americans would be sent to Alicante or Valencia, on Spain’s eastern coast, presumably by train. U. S. Cruiser Nearby. Standing by at Alicante was the American heavy cruiser Quincy, which already had on board two Americans and one Argentine national. At last reports there were 148 refugees quartered in the embassy at Madrid. Wendelin did not make clear how many intended to make the jour- ney to the coast. His message, which was dispatched as Ambassador Claude G. Bowers was believed to have established a floating American Embassy aboard the Amer- ican Coast Guard cutter Cayuga, in northern Spanish waters, said: “Plans made to evacuate foreigners to Alicante or Valencia Thursday morning. Madrid is quiet.” The American man-of-war steamed into the harbor at Alicante today to pick up Americans fleeing from Ma- drid after rescuing two citizens of this country at Montreil. The cruiser Quincy reported by radio to the Navy Department that she arrived at Alicante at 9:30 am. (Spanish time). ‘Two Citizens Taken Aboard. At Montreil the cruiser took aboard Paul Raymond and his wife of Carthage, Mo., and one unidentified Argentine national, proceeding thence at once to Alicante. There her offi- cers expected to evacuate Americans (See AMERICANS, Page A-2.) “No Proselyting” Order Blocks ' Pay Raises in Civil Service ‘The “no-proselyting” order issued by President Roosevelt a year ago to keep down emergency agency personnel transterence, stands as a barrier to salary advances for non-civil service employes who qualify for civil service posts if these latter are financed by emergency appropriations. This was disclosed today in a ruling from Richard N. Elliot, acting con- troller general, to the Secretary of ‘War. It covers thousands of jobs, for virtually all the old line agencies have workers who are paid from emergency funds. ‘When President Roosevelt issued his order last June it was designed to groups from jumping from one to the other because of better pay and thereby disrupting the staffs. The or- der, however, contained s saving clause which permitted increases if the Presi- dent gave his approval. Otherwise, no raises may be given for six months. In submitting the present problem to the controller general's office, the Secretary of War gid that many per- | sons who had passed civil service ex- aminations but had taken emergency Jobsto tide them over were now get- ting civil service appointments. Some of these, the Secretary said, had come from relief rolls and were only on security wage rates in their present employment. Under such cir- cumstances, he said, he did not believe it would be feasible to bar them from the rates the new positions called for, but that because of the prohibition on the use of emergency funds, he was uncertain as to the course to follow. In response, Elliott said: “There appears nothing in the terms of the executive order to authorize holding that the inhibition against the appointment or transfer to and the payment of increased salaries in emer- gency positions does not apply to pro- bational appointments made from the civil service lists.” He added, however, that “the mat- ters mentioned in your letter might be considered as for a modification of the executivllijrder.” » sary” industry and the government continued widespread enlist- even mobilizing several score of Hard Fighting in North. Sharp fighting was reported in the north, both in the vicinity where loyal besiegers took posi- tions overlooking the city and prepared for a new bombardment. (Reports from across the Frenafl | border said rebel barracks at Loyola, near San Sebastian, had surrendered | unconditionally. New cannon fire |was heard at Hendaye, France, dur- {ing the morning.) Rebels at Toledo were reported to have marched out of the famgus Alcazar to surrender after government troops had made plans to mine the structure. But advices through non- official channels from Malaga said Loyalists were retreating after taking heavy losses in yesterday's battle at Estepona. After the Loyola garrison had given up, advices stated, it was found one Rightist officer had gone mad and had | been slain by his comrades. | Retreat of a rebel advance guard, | moving toward Irun and San Sebas- | tian from Pamplona, also was re- | ported. The insurgents, backing up toward Oyarzun, continued sporadic | firing (Crossing into France temporarily | from the San Sebastian sector, United | States Ambassador Claude G. Bowers | notified the Washington State De- partment he was establishing a “float- |ing embassy” aboard the cutter Cayuga to speed the evacuation of Americans from Madrid and else- | where. (With rebel soldiers in Spanish | Morocco reported weakening because | of lack of pay and vigorous govern- | ment thrusts, an insurgent plane to- day dropped several bombs on & gov- ernment submarine patrolling off Cape Spartel. The submarine submerged, escaping damage.) | Loyal guards, in a series of raids on | Guadarrama Mountain passes, were represented as having blasted in- surgent ammunition depots out of ex- | istence. Government sources, which de- scribed the raids as an “important (See SPAIN, Page A-6.) DAWES SEES STEEL PRODUCTION GAINS Says Finishing Plants Will Be Running at Full Capacity by '37. By the Associated Press. CHICAGO, July 28.—Having seen his 1934 prediction of a business up- swing come true, former Vice President Charles G. Dawes today envisioned steel finishing plants of the United States running at capacity at the start of 1937. Gen. Dawes declared yesterday that a “tremendous accumulation of needs which is being expressed in the cur- rent volume of business handled by the steel companies” also would boost production of steel ingots to approx- imately 85 per cent by January 1. Most recent American Iron and Steel Institute figures showed ingot produc- tion at 71.5 per ceqt. “For weeks business commentators have been looking for a recession in the rate of operations of steel plants,” Gen. Dawes said. “As each week goes by without bearing out their prognosti~ cations, they move the date ahead. ‘What they forget is that there is nothe ing seasonal about the stored-up de- mand on the part of the public.” Denies Anti-U. S. Move. MANILA, P. I, July 28 (#).—The Philippine Assembly Appropriations Committee today denied published re- ports it contemplated seeking removal of required reference for United States materials in gvernmental purchases.