Evening Star Newspaper, December 14, 1936, Page 4

A—4 ¥xx RAL DEALERRDR, BANKERBELEVES Van Sweringen Purchase of Missouri-Pacific Termed Mistake. B the Associated Press. William C. Potter, chairman of the Guaranty Trust Co. of New York, told Senate investigators today he be- lieved the late Van Sweringen broth- ers’ purchase of the Missouri Pacific Railroad System was a ‘“mistake of Judgment.” He gave his testimony before the Benate committee investigating rail- road financing in asserting that bonds of Alleghany Corp., & major holding company in the Van Sweringen rail empire, were a “sound investment.” “The Alleghany Corp.,” he said, “was designed primarily as a means of bringing about consolidation of the Eastern railroads in which the Van| Bweringens were interested. “These roads included all the so- called Van Sweringen railroads, with the exception of the Missouri Pacific, which was purchased by the Van Sweringens to give Alleghany a di- wversification of earnings Purchase Held Mistake. “In the light of hind sight, I believe the Missouri Pacific purchase was a mistake of judgment.” Potter contended the Van Sweringens’ activities were “founded on the policy favoring consolidations of railroads into a few great systems that was de- clared by Congress in the transporta- tion act of 1920.” Chairman Wheeler of the Investi- gating Committee interjected that “Congress has never favored consoli- dation through holding companies.” Mrs. Madison M. McNutt a: nd her daughter, Sarah Ann, 3, who were struck by falling plaster in their apartment below the one in which the explosion occurred. (Story on Page A-1.) pyramid’s capstone—the holding com- panies through which the scores of railroads, bus lines, coal pits and real estate developments were con- “The Interstate Commerce Commis- brolied. sion has repeatedly denounced holding eompanies,” he declared. “No Congress would ever dare go on record as favoring consolidation through such a corporation as Alle- gheny.” “You have tried to give us the im- pression,” Wheeler added, “that the Van Sweringens were acting in ac- eordance with the will of Congress, Executives to Be Called. . “Nothing could be further from the acts.” “Perhaps they were trying to ac- eomplish the same ends in a different wav,” Potter replied. Wheeler expressed surprise that John W. Davis, one-time Democratic candidate for President and well- known New York attorney, “would permit his name to be used” on a prospectus for Alleghany Securities. | “I don't think any attorney ought to let his name be used that way,” ‘Wheeler said. Senator White, Republican of Maine, broke in to assert that it was & “uni- versal practice” for lawyers to put their names on security prospectuses after passing on the legality of the | issue. | “We don't take any liberties with| Mr. Davis.” Potter said with a broad | smile. “He is pretty smart, and would soon check up on us.” Held “Sound Investment.” Potter went on to assert that “the record of the last six years demon-| * strates” that Alleghany bonds were a *“sound investment.” | “Despite the greatest depression in the world's history, which has par-| ticularly affected railroads.” he said, | “two out of the three issues have con- tinually paid their interest and are now selling at approximately the issue price.” | Executives of the Missouri Pacific system, one of the six major strands | in the Van Sweringen network, will | Would Photect Investment. Wheeler said one of the chief ob- jects of the inquiry was to protect the Government's investment in the Van Sweringen lines, estimated at $67,000,000. Loans by the Reconstruction Finance Corporation since 1930 have made the United States the system's largest creditor, he said. adding that the Government had a $23,000,000 in- vestment in Missouri Pacific alone. MICHAEL JACOBS, FIRM HEAD, DEAD Funeral for Man Long Resident Here to Be Conducted Tomorrow. Michael Jacobs, 49, president of I. Jacobs & Co., tailoring firm, died yes- terday of a heart attack at his home, 4222 Seventeenth street. Mr. Jacobs, a resident of this city since a child, was born in Vilma, - Russia. He was a member of the Woodmont Coun- try Club, the Amity Club, the Fifty ' Club, the Masons and the Elks. Surviving him are his widow, Mrs. Henrietta Jacobs; two daughters, Miss Elaine Jacobs and & Miss Ruth Jacobe; two sisters, Mrs. Al Friedman, this city, and Mrs. Morris Galt, New York, and two brothers, Julius and Dave Mr. Jacobs be summoned before the commllteevuoh. both of this city. later this week. The road’'s presi- dent, L. W. Baldwin, already has been subpoenaed. | They will be asked to describe the working railroad properties, charac- terized by investigators as “the second layer in the Van Sweringen pyramid.” ‘ Funeral services will be held at 11 am. tomorrow at the residence. Burial will be in the Washington He- | brew Cemetery. | . France will increase its tax on large Hearings last week centered on the 'inheritances. <+ National Lodge of | JOSEPH S. TOMPKINS, Who, with L. E. Cashen. ex- tinguished Mrs. Bean’s flam- ing clothing. ~—Star Staff Photo. DOUGHTON PROPOSED FOR HOUSE LEADER B> the Associated Press. Representative Weaver of North Carolina expressed hope today House Democrats would turn to Representa- tive Doughton of North Carolina to set- tle their majority leadership fight. He sald Doughton, chairman of the ! House Ways and Means Committee, would make “an exceptionally satis- | | factory majority leader.” commit themselves on the leadership fight in & recent caucus at Raleigh. | He said he failed to do so in hopes ! Doughton would become a candidate for the post. ~ WHERE TO DINE Tuesday Dinner Special Cateteria Only Tender. Juier Prime Ribs of e Roast Beef Brown Potatoes. Broceoli, Hollandaise Sauce. Hoi Rolls, Beverase LOTOS L'ANTERN 733 17th St. N.W. | t | | | L Sent toyou on 10 DAY'S FREE TRIAL THE POWERFUL GRAND PRIZE MODEL 9 e ki As extra value a complete brand new set of attachments —_— at the Factory and fully Weaver was one of three North . | Carolina Representatives who failed to VACUUM CLEANER i with Special Brush for Lint, Hair and Threads DURING THIS SPECIAL SALE only $'|985 VIENNA DOCTOR T0TREAT WINDSOR Former British Monarch * Makes Appointment Due to Ear Affliction. By the Associated Press. VOESLAU, Austria, December 14.— ‘The Duke of Windsor, closely guarded in a chateau where he started life anew today 8s a private citizen, made an appointment .to consult a Vienna speclalist about a long-standing ear affliction. The former King of England, who came to Austria last night after giv- ing up his throne for Mrs. Wallis Simpson, was expected to call at the Vienna clinic of Prof. Heinrich Neu- mann, late in the day after all other patients had left, attendants said. It was noted the former sovereign held his hand over his ear when he was driven from the Vienna station to the country estate of Baron Eugene de Rothschild near here after a trip from England through Prance and Switzerland. silence concerning the nature of the Duke’s ear trouble, but it was learned from attendants and other physicians that the treatments he will undergo consist of X-ray, light rays and rins- ing the inner ear. Neumann has treated the former King on previous visits to Vienna. statement that the ear trouble was not serious and that the treatments were designed to prevent the condi- tion from becoming worse. Ear specialists believed the ailment might have been caused either by a lowing bathing. The consensus in Vienna was the former ruler first came to Austria from England so he could consult rmes Patrel Estate. Gendarmes patrolled the large ing the curious at a distance. Servants were forbidden to talk to callers. Watchmen patrolled the entire rail- |to Veinna and from Veinna to the | Enzesfeld estate when the royal visitor | arrived. A gendarme was posted every | one-half kilometer. and his party as it dashed from Vienna to the estate, 25 miles from the capital. After he passed Vienna city limits, police blocked off the road for 10 minutes. at 7 o'clock at the rambling, red- roofed castle of half & hundred rooms. He ate a light breakfast and played golf for an hour and a half on the ~ EXTRA spzcm’z‘ l | | INDOOR TENNIS TABLES for _J. FRANK INC, Millwork 2121 Ga. Ave. NOrth 1341 Set of attachments [ree with each cleaner A Startling Value! Thoroughly reconditioned guaranteed like new by the manufacturer. Originally sold at $53.50 A A B 5 M‘.J complete with attachments. FREE SET OF ATTACHMENTS Never have you seen such a powerful, full size cleaner, sold at such an unbelievabl e low price. Looks like brand new. All brand new parts such as handle, bag, Neumann maintained an ethical | The specialist confined himself to a | fall from a horse or by infection fol- | estate of Baron De Rothschild, keep- | |road line from the Austrian border | A police car sccompanied the duke | the | The former King began his day | LLY 1 A NEWLY ARRIVED SHIPMENT! . I Genuine Winter Weight Tum VERCOATS $3375. WORUMBO WOOLEN PRICES HAVE ADVANCED! D. C, MONDAY, DECEMBER 14, 1936 private course. Then he returned for & “fork Breakfast,” after the Austrian custom, with & meat dish. There were 20 gendarmes and detectives on guard at the front gates, and it was estimated 120 others were deployed about the grounds. Motorists and pedestrians were kept at distances of & half & mile to a mile. The day was cold and cloudy and the castle had a drab, yellowish look. Ensesfeld is not unique to Austria, except, for its golf and tennis ectivities. One of its two square towers dates from the seventeenth oentury. A small tree grows atop the gun-notched turret. Edward’s bed room, overlooking & great park, recently, was redecorated in & dark red motit. His hostess, according to reference books on Italian aristocracy, was born on March 13, 1885, in Philadelphia. Her name was Cathleen Wolff. She was married to a dentist named Spotswood, but the marriage was an- nulled, the book shows. In 1911 she married Count Erwin von Schoenborn- Buchheim, Austrian councilior to the legation in Paris, but this union also was declared invalid. On April 28, 1925, she and Baron Eugene Daniel |t —— e Rothachild were married in Paris. The baron is 52 years old, & year older than his wife. Before the World War he was a captain of the 6th Regiment of the Austro-Hungarian Dragoons. The wife of the baron's older brother, Alfons, 18 & daughter of the famous Montefiore family of London. The Rothschilds usually live at Ensesfeld for seven months out of the year. Today, although it was stressed their roys! visitor’ were plans indefinite, it was belleved he would re:naln through Christmas. Great quantities of mail and tele- grams were going to and from Enses- feld, among them, presumably, & mes- sage from the Duke of Windsor to King George VI. There also were two lon.-dllunu. telephone calls from the castle during the morning. ‘The former monarch was in & happy frame of mind when he ar- rived, apparently unworried by the momentous decision he had made to cast aside the crown. The Austrian preas welcomed the former King, saying it hoped he would stay long. ‘The public, more curious than any- his Was more restrained. It re- T Gilt Parler Cabinet, AT PUBLIC AUCTION At Sloan’s 715 13th St. WEDNESDAY December 16, 1936 at 10 a.m. Terms Cash. C. G. SLOAN & CO., Ine., Auctioneers 1410 L N.W. |SOL HERZOG INC BHED - 2 Ly U X b1 W TRADE? SURE WE WILL TRADE Turnin Your Set on a New Model 24 Years Lionel Service Work We Repaired Your “Dad’s We Carry Every Type of Lionel Train Sets in Stoch— from $9.95 up to $70.00— A Complete Line of Train Accessories Superior Lock & Eleetrie Co. OPEN EVENINGS b Spec:'i_al Neotice | Union Pacific No. 299W and Lionel Airplanes Have Arrived umbo A GIFT THAT KEEPS GIVING! Today’s Special at Washington's Largest Typewriter Store. 37" Standard 813 11tk NW. UNITED ; Goe3 Open to 9 P.M. “Til Xmes FOR XYMPS i W ¥ ROYAL s Official Lionel Service Station Train Repairs " Train, Why Not Yours? Phone Met. 9439 by Mra. Simpson. becomes It required Super Buying to bring you this *“One” membered him as a frequent visitor to | “wienerwaider,” meaning an enthusie the country, sometimes accompanied |astic leather-trousered hunter, hiker an _out-and-out would take him to its heart. —a pair of these lovely much- wanted slippers with the fa- mous name of DANIEL GREEN Other Slippers from $2.25 to $5.00 Fine Hose . . . sheer, clear and ringless . . . leg lengths. $1 pr. or 3 prs. for $2.85 ... $1.35 pr. or 3 prs. for $3.75 .. . $1.65 pr. or 3 prs. for $4.65. F STREETAT 10w bo and skier, it was certain the country Loll . . . designed for inti- mate comfort. In Wine Velvet, gold kid trim; Blue, Velvet and Black Corduroy with steel kid trim $3.25 Also in Red, Blue or Black Hostess Slipper . . . the new high-cut D’Orsay, styled to_receive company. In black satin with silver kid trim _$7.50 Felt Comfys . . . to give her the most complete feeling of relaxation. In blue, rose and oxford in all Cost of tailoring is ‘'up’! Yet, we were determined to continue to pre- sent our super overcoat value . . . WORUMBO OVERCOATS will be given free—no charge to each purchaser of the world famous Eureka Model No. 9 at the special mark-down sale price of $19.85. Clean your mattresses, upholstery, cord, brush, bearings, fan, etc. And remember, this famous model won the Grand Prize at the Sesqui- ishi Mt 2 oA : A AT $33.75! This advertisement only tells part of the story and all other furnishings above the floor. You'll like them. \Centennial Exposition—Philadelphia. k L“J-Lflmlj o s e [l enectioni wil liveveal 1he quality and value that has made this feature the greatest in TRADE-IN ALI-OWANCE $ 0 O Balance small monthly payments— our history! Double-breasted and raglan styles . . . oxford DURING THIS SALE ONLY bt small carrying charge grey, navy blue, platinum grey and honey brown. ALL SIZES. 4 CHARGE IT IF YOU LIKE! Budget or Monthly Accounts. D“"'flsudl“.’ speci "l“k"f“ly_‘"‘.d"&i“ l‘"""’ Phone at once. Request frée trial. Only a limited ance will be given you for your ‘old cleaner. f . Trade ivin nov. Phodefoe Trialiny number have been allotted us for this sale. Hurry! home. Special arrangements for out of town . FURERA YACOUM CLEANER 1 Corner F Street at 9th 1 ' | 724 - 114, STREET . N.W. 5 ] ] ] Open Nights ’til 9 P.M. from now until Christmas! Bt —— PHONE, OR MAIL COUPON AT ONCE Please send 2 factory guaranteed Eureka Model 9 to me for free trial during this Special Sale—no obligation. Name. Address. City NAtional 2700 FREE {factory inspection given to all Eureka Avoid unauthorized agents. ‘users.