Evening Star Newspaper, March 3, 1937, Page 5

STOCK ‘COVERAGE' BY PRESS IS TOLD Financial Editors Testify at S. E. C. Hearing in New York. B the Associated Press. NEW YORK, March 3.—Evi- dence to show the widespread dis- semination of securities market quo- tations by newspapers and news serv- fces was introduced at the Securi- ties and Exchange Commission’s hear- ing vesterday on charges that Charles C. Wright and others manipulated stock of the Kinner Aircraft & En- gine Co. on the Los Angeles Stock Ex- ehange. The testimony was brought out by ‘William Prager, counsel for the com- mission, in an effort to rebut the re- spondents’ contention that stock ex- change transactions are intrastate | rather than interstate in character, and that the Securities and Exchange Commission therefore is unconstitu- tional. Claude A. Jagger, financial editor of the Associated Press, with head- quarters in New York, in response to Prager's questioning described ~the securities quotation service of the press association. Most of this serv- ice, he said, is tabulated in New York by a special staff from 16 stock and bond tickers. 36,000 Miles of Leased Wires. Frequent complete tables of major New York and Chicago securities mar- kets, he said, were sent over special teletypewriter circuits aggregating 36,000 miles of leased wires reaching 180 member newspapers in all sec- tions of the country. In addition, at 40 Associated Press Bureaus through- out the country, editors prepared from this special service shorter lists sent on regional wires into every State in the Union. At least part of the financial service goes to virtually all of the approximately 1,300 member newspapers of the association, he said. The ticker service, from which the tables are prepared, is purchased from the Western Union Telegraph Co., Jagger said, and is disseminated to member newspapers. No part of the service is given to stockholders or turned over directly to the general THE EVENING STAR, Faces Child Murder Charge against Howard Magnussen, 26, Road’ look like Park avenue.” Charges of murder and criminal attack were lodged today shown with a detective in Man- hattan police station, for the death of 4-year-old Joan Morvan. Police said the story of the little girl’s death “made ‘Tobacco —Copyright, A. P. Wirephoto. tices over 70 retire came from Senator Vandenberg, one of the first' among leading Republicans to enter the ora- torical battle. “No matter what its purpose and no matter how nobly meditated,” said Vandenberg, “the effect would. be to control the court with judges reflect- ing the presidential point of view. Presidential Control. “This in effect is equivalent to pres- idential control of constitutional in- terpretations in a court which must not be subordinated to any other branch of. the Government if the es- sential checks and balances of the American system shall persist to guard our freedoms. “The change of interpretation is not sought through a constitutional amendment, which would permit the people of the UUnited States to decide for themselves whether he (the Presi- dent) is right or wrong. It is sought through a change in Supreme Court public, he testified. Asked by defense counsel if the quotation service was furnished at the | solicitation of the New York Stock Exchange, Jagger said that it was not and that it originated solely at the initiative of the Associated Press and its members. Los Angeles Quotations. Los Angeles Stock Exchange quota- tions are transmitted by Associated Press leased wire to New York, where they are received simuitaneously at the offices of the Associated Press and the New York Times and New York Herald Tribune, Jagger said in re- sponse to Prager's question. John G. Forrest, financial news edi- tor of the New York Times, another witness called by the S. E. C., testified the New York Times published lists of the Los Angeles Stock Exchange, which were obtained through the As- sociated Press. Elmer C. Walzer, financial editor of | personnel.” Vandenberg’s Democratic colleague, Senator Brown of Michigan, also spoke. After declaring he sympathized with Mr. Roosevelt's objectives, he said: “I cannot bring my mind to agree that the Executive under authority from the Congress should be given the power to add. six members to a | nine-man court with the obvious in- tent to change the views of the court. I do not think it necessary.” Brown, predicting a compromise, said he favored a constitutional amend- ment requiring a 7 to 2 Supreme Court vote to hold an act of Congress invalid. “Too many judges have been taken from the ranks of big business,” he | said, “and Have projected their con- servatism in defense of property and privilege, into the judge-madg laws of this country. * * * “I agree with his (Mr. Roosevelt's) condemnation’ of the present situa- the United Press, gave similar tesu-{ mony. He described the financial | quotation service as going on special circuits to virtually every section of the country except New England. Quotations from the Los Angeles Stock | Exchange, he said, were distributed in | California and Arizona. The ticker service, he testified, was purchased from Western Union. Object to’ Testimony. TIsidore Kresel and Eugene L. Garey of counsel for the respondents object- ed vigorously to admission of the testi- | mony of Jagger, Forrest and Walzer, | moving it be stricken as not material. | 8. E. C. Examiner Edward C. John- | son, however, denied the motion. | Thomas H. Montgomery of the long lines department of the American Telephone & Telegraph Co. testified concerning the leasing of wire service to brokers. Earlier in the day's hearing James W. Elliot, managing secretary of the Los Angeles Exchange, was called 1o the stand by the defense to give evi- dence concerning transactions in that market. He said all transactions were be- tween members as principals, and members were bound by such trading even if the customers for whom they bought or sold failed to complete them. Private wires from the floor of the exchange to members and non- members, he said, went only to the offices of houses in Los Angeles and did not cross State lines. - Judiciary (Continued From First Page.) eomment of last June 2 that the Su- preme Court’s invalidation of the New York minimum wage law for women by a 5-4 decision, together with prior rulings, had left a no- man’s land where no government could function. ‘Wages Beyond Control. Under such decisions, he said then, neither the State nor the Federal Gov- ernment could control wages in in- dustry. £ The President has given no detailed ndication of the labor legislation he favors. Various groups of advisers have been studying proposals, which probably will be split in two measures, one covering wage and hour standards and the other fair trade practices for industries. ‘The report of his N. R. A. Commit- tee said yesterday these subjects should be divorced in any future regulatory system. It outlined legal roads toward N. R. A. objectives which “still remain open,” notably a revision of anti-trust laws to authorize industrial trade agreements reviewed by a Government body. Many observers predicted the Presi- dent would mention both the labor and court issues in his address tomor- row night at the $100-a-plate Demo- eratic “victory dinner.” Pending that speech and his radio talk to the Nation next Tuesday, his supporters and opponents on court re- organization marked time on strategy. ‘The procession of speakers to the microphone nevertheless continued. A denunciation of the proposal to enlarge the Supreme Court unless jus- SQ_RNS RsYoR'oIl bye to risky rasors and w A new lifuid NOXACORN relieves " quick. Boon the eorn (or eallus) loosens eomes out with ease, Absolutely safe, ontaing pure castor oil, lodine and “corne B irim A ¢ bottle saves untold misery, rugeiet relundy woney i A fails tion, but I have not yet brought my mind to the conclusion that his solu- tion is the right one.” These radio addresses came at the close of day which saw Senator Logan, Democrat. of Kentucky indorse the presidential measure and Representa- tive Sumners, Democrat of Texas as- sert, in the House, that the way is open for members of the supreme bench to retire and thus be “co- operating with- their Government.” Sumners’ address in the House called attention again to the hopes of several leaders that a recently en- acted bill, giving Supreme Court members the privilege of retiring on ‘full pay at 70 years of age, would bring withdrawals and diminish the | tension of the controversy. | Question of Self-Respect. | “It will never be regarded, and it is unfair to intimate it,” Sumners said, “that when these justices reach the point where they feel they should ease |u in their work anu that the public interest requires that their regular duties be assigned to a younger person, that there would be any lack of self- respect to retire under the provisions of this bill. They would only be co- operating with their Government, which has extended to them that priv- ilege. “The public ought to know that if any of these gentlemen of the Supreme Court retire they could do it volun- tarily. They do it because they feel it is fair to themsel~es and fair to their Government, which gives them this privilege.” The “court matter” can be worked out, he continued, “withou. hurt to the public interest, without leaving any sores, if unselfish patriotic motives guide our efforts. There is no inherent reason why this cannot be done if that co-operation and mutually respectful attitude of the legislative branch, the executive branch -and the judicial branch of the Government for each other, and that regard fo- the Nation’s interests which the country has a right to expect in this emergency, is shown. not only probable, but certain.” Logan expressed his views in a Sen- ate speech, which was repated in part on the radio last night. He denied as- sertions that the bill is.directed at “packing” the Supreme Court to ob- tain decisions favorable to administra- tion legislation. Girl (Continued From Hui Page.) Medical Examiner Dr. Howard W. Neail. : Dr. Neail immediately branded the death of the child as murder. “It is the most brutal murder I have ever seen,” he said. . “The’child was criminally assaultgd. Her body is & mass of bruises.” Boy Tells of Attack. Most of the story, the police sald, came from young Frank Magnussen, Jr., 6-year-old brother of Mrs. Gatto, who lives at the Columbia avenue address. He told Detectives George Campbell and Fred Trumpf, they said, avickly 1o overcome 3 HEXXASOL TALINE LAXATI VS that Morvan, Mrs. Gatto, Joan and another child, 2-year-old George Mor- van, visited the Magnussen home Sun- day afternoon. ‘The youngsters were put to bed up- stairs, little Frank told the detectives. Howard, accused of the crime, also was sleeping up there at the time. Soon, the boy said, the.-family down- stairs heard little Joan screaming. Everyone rushed up the stairs, and he said the little girl, whom he ‘called “Jo,” was writhing in bed. “There was blood everywhere,” po- lice quoted him as saying. . Morvan, a painter, was out of the house at the time, helping a friend re- pair an automobile. Stains on Car Tested. Morvan and Mrs. Gatto, police said, borrowed the car and returned home that evening. Police today were test- ing stains in the back of the small car to ascertain if they were bloodstains. Little Joan's condition brought ]George Magnussen, father of the ac- | cused, back to Magnussen home, and | finally that evening he called for a | doctor. | An ambulance responded and the |child was declared dead. Detectives who investigated that night accepted at first Mrs. Gatto's story that the child had been injured falling down- stairs. Charges of felonious assault against Morvan and Mrs. Gatto are based on the terribly bruised condition the child’s body. Police said many of the scars and bruises were old, and ap- | parently had been inflicted by hair- brushes, sticks and metal combs. There were over a hundred scars and marks on the body, they said. Woman Ex-Convict. Mrs. Gatto, divorced several years ago by her husband, also served a term in Hempstead, Long Island, for shop- lifting, police officials said. Morvan | was named corespondent in the suit years old. who lives mow in Northfield, Vt., was charged with burglary two years ago and received a suspended sentence in Suffolk County, police said. Howard Magnussen, a good-look- ing young man, also admitted, police said, that he had been having improper relations with three younger sisters, one 11, the second 12, the third 14. The Magnussen children number 10, with the oldest, 31, an inmate of a Queens Park sanitarium. Police said Howard Magnussen sought to justify his conduct by re- lating other examples of improper re- lations within the family in which he did not take part. The three accused were brought to Manhattan for the police line-up by Sergt. John Hulson. After examina- tion they were returned immediately to Queens. ‘The three accused, who were ques- tioned all night in Jamaica before the police, said Howard Magnussen con- fessed the crime at 7 a.m. this morn- “That will make the desired result |’ ing, said in answer to questions in the Manhattan police line-up that the statements they had made to Queens district attorneys were true. Attack After Beating. Although the statements were not made public, the police said both the father and Mrs. Gatto admitted that the little girl, when attacked was in bed at the Magnussen home because of & beating earlier with a hair brush. ‘The child was being beaten, the po- lice said, to cure her of a functional ‘weakness during sleep. So savagely had she been battered, the medical examiner said in his report, that one toe nail was torn off. Inspector Joseph Donovan con- ducted the questioning of Howard Magnussen in the line-up. His measurements were: Height, 5 feet 3 inches; weight, 118 pounds. He wore & shabby brown suit and red sweater. His hair was long and black. “How did you come to do this?” In- spector Donovan asked. “I don't know,” answered. Mrs. Gatto wore a black coat with & fur collar. She weighed 110 pounds, moderate height, is willowy and sallow of complexion. She said Morvan, father of the girl, was present “only part of the time” ministered the beating. Police, ques- tioning neighbors, said they learned that little Joan had been crying con- stantly for days. Magnussen Masons Plan Dance. GAITHERSBURG, March 3 (Spe- cial).—An old-fashioned barn dance will be sponsored by the Masonic Temple and Library Association in the Masonic Hall, Gaithersburg, Sat- urday evening. © ESTABLISHED 1865 o MOULDINGS A Barker Specialty million feet always undred petterns ready for immedi- ate, free delivery ot Wash- ington’s lowest prices. Bark- " er mouldings ere kept cloan t ond dry. :GEQ. M. BARK e COMPANY o UMBER and MILLWOR! 649-651 N. V. Ave N.W. 1520 Th S0 NW, NA. 140, “The Lomber Namber” for divorce. Mrs. Gatto has one son, 6 | Morvan, separated from his wife | when she ad-| WASHINGTON UTILITY COLLUSION CHARGEDBY S.E.C. W.iIIiams Interests Accused of Bank Pact to Aid Stock Price Rise. By the Associated Press. Alleged collusion between a utilities empire and one of New Y great banking houses was engaging the in- terest of the Securities Commission today as they continued their probe of the rise in stock value of the American Cities Power & Light Co. during boom days. Commission attorneys are tracing transactions by which they contend Harrison Willlams of American Cities pyramided an original investment of $2,072,000 into control of a $2,500,- 000,000 public utility empire. They sought to establish at & hear- ing yesterday that companies dom- inated by Williams had a working agreement with Dillon, Read & Co., New York banking house, intended to make a market and increase the price for American Cities stock. Public Demand Cited. L. E. Kilmarx, an officer in sev- eral Williams companies, contended public demand for stock of that kind accounted for the jump in American Cities’ market price. In questioning Kilmarx and James V. Forrestal, vice president of Dillon, Dead & Co., the commission attorneys tried to show that operations in the market for a year after the issue was floated were designed to increase the price of the stock. Forrestal insisted it was normal pro- cedure to stabilize the market. Williams, a one-time bicycle manu- facturer, whose wife is known as the best-dressed woman in America, also testified . during the day. Organized in November, 1928. He said American Cities was or- ganized in November, 1928, with & capitalization of $41,602,000, to buy power and light securities of com- panies operating in large cities. Asked why the had not followed his previous practice of financing his operations by issuing more stock of Central States Electric, which he con- trolled, Willlams replied he knew of no reason except that the other meth- od was more expedient. “Actually, this is the beginning of your pyramiding, isn't it?” asked L. | | M. C. Smith, commission attorney. “I don't like the word: ‘pyramid,’” Williams replied sharply. After considerable argument con- cerning the definition of “pyramiding.” Williams finally agreed that his later operations, including the organiza- tion of Shenandoah and Blue Ridge Corps., were “erecting a pyramidal structure.” CONNALLY ASSAILS COURT REFORM PLAN Texas Legislature Hears Senator’s Attack, Holding Proposal Violates Pledges. By tl:e Assoclated Press. AUSTIN, Tex., March 3.—Senator Tom Connally, Democrat, of Texas said in an address prepared for de- livery last night to the Texas Legis- lature that “a brave, impartial United States Supreme Court is the very cita- del of our liberties, the strongest fort- ress to maintain our Constitution and our constitutional system.” Connally devoted most of his talk to criticism of President Roosevelt's pro- posal to reorganize the court. Eleven days ago the Legislature lis- tened to a vigorous defense of the pro- posal by Harold L. Ickes, Secretary of the Interior. The State Senate had overwhelmingly condemned the Pres- ident’s recommendation, while the House refused either to approve or disapprove it. After reafirming his personal and political friendship to President Roose- velt, Connally asserted the Chief Ex- ecutive’s proposal was not in accord with the national Democratic party platform. Carolina Vote Postponed. COLUMBIA, 8. C., March 3 (P).— The House of Representatives again last night postponed a vote on a resolution to indorse President Roose- velt's Federal judiciary proposals, ad- Jjourning after two hours of debate. Ad- Jjournment came with Representative Calhoun Thomas of Beaufort holding the floor. Both Parties Get Absolute Decree In Divorce Action In an unsual order, Chief Justice Alfred A. Wheat of District Court to- day awarded an absolute decree to both parties to a divorce suit. ‘The litigants were Mrs. Alva Ansley Patten, 1420 Meridian place, and Dr. William F. Patten, 1746 K street, a physician. Mrs. Patten had filed suit against her husband, charging miscon- duct, and he answered’ with a cross bill, asking for a decree on the ground of five years’ voluntary separation. After a lengthy trial, Chief Justice Wheat found the evidence did not support the misconduct charge, and based the decree of divorce on the ground of separation. Mrs. Patten was given custody of their two children., An out-of-court property settlement was included in the decree, which ordered Dr. Patten to pay $25 a month for the support of his children. Mrs. Patten was represented by At- torney Jo V. Morgan, and Attorney R. W. McMahon appeared for Dr. Patten. ) | her marble back and two chips of mar= D. C. F. WEDNESDAY, * Manila Newspaper Man on One of Many Globe- Circling Trips. F. Theo. Rogers, general manager of the Philippine Free Press, globe- trotter and happy adventurer, is in Washington for one of his periodic stopovers en route from Manila, P. I,, to Manila, P. I, via known and un- known parts of the civilized world. Every three years or 0 he makes the trip, accumulating autographed pho- tos, mementos, interviews with what- ever famous or infamous characters the world may have to offer and stor- ing up additional incidents of a life that has been crammed with interest- ing experiences. He brings with him to Washington two faint scars on his chin, reminders of a narrow escape on the night of last July 18, one of Barcelona’s many nights of revolutionary terror; letters from most of the leaders on both sides of Spain’s civil war, many autographed photographs and clippings, a large bundle of awe-inspiring military passes and a stenographer's’ report of his appearance before a committee of the House of Commons last month in | London, where he gave his views on the Spanish situation. Things like addressing a committee of the House of Commons without notice just happen to Theo. He handled him- self well, of course. He has the repu- tation in Manila of being a silver- tongued orator on any occasion and on any subject. He uses his gift to advantage and to the delight of his friends. Wounded in Spanish War. For instance, on the night of July 18 in Barcelona, at the outbreak of the civil war, he went to the home of an old Spanish friend whose family he had known for many years in Manila. ‘The menfolk were all away. Two un- protected women and several children were huddled in a room, listening to firing and shouts from the street. Mr."Rogers had barely arrived be- fore the windows were shattered by firing from the street. Two bullets struck a marble statue of Venus de Milo and ricocheted harmlessly away. Another struck Venus in the small of ble hit Theo on the chin. Blood streamed from the cuts and he was & gory 'spectacle when a squad of militia, or soldiers, or rioters, or revolutionists, or whatever they were, began banging on the door with the butts of their rifles and demanding that everybody come out and be shot. Theo’ came out, waving in one hand his American passport and in the other two letters. Using his passport as a text, he made an eloquent ad- dress on his American citizenship and reached a climax by pointing toward the harbor, where two American and three British warships rode at anchor. He said that if so much as one hair of his distinguished head was in- jured, every gun on those ships of war would be turned on Barcelona and the place would be reduced to shambles. His government might overlook the cuts on his chin, he said, but— Roosevelts All the Same. Then he went on to the letters. One letter, he said, was from the ‘“viceroy of the Philippine Islands,” the then Gov. Gen. Frank Murphy, now Gov- ernor of Michigan. The other, he said, was from President Roosevelt. The letter happened to be an old one from the late Theodore Roosevelt, but the Spaniards are not discrimi- nating and one Roosevelt to them is as good as another. To make a long story short, Theo soon had the sol- diers thoroughly impressed and drink- ing cognac, eating sandwiches, pro- viding him with a personal escort and leaving two of their number to guard the home of those who, a short time before, had been booked for execution. There had been sniping from the vicinity, the soldiers explained apol- ogetically, and the orders were to clean out the block. That is merely one of Theo's many stories of intercession for Spanish friends, many of whom owe their es- cape from Spain to his gifts of ora- tory and his forthright figures of speech. He was in Spain for six Theo. Rogers, in Capital, Tells of Adventure in Spain months and covered the country from end to end. He is extremely proud of the fact that he never discarded his Rid your system of Excess Acid by following the health resort method at home. Drink Mountain Valley Mineral Water. direct from famous Hot Springs, Arkansas, to secure natural help for irri- tated muscles. nerves and joints. Phone Met. 1062 for a case today. Valley Mineral Water T 1405 K 8t. N.W. HIGH ‘INCORPORATED" '"OUR PLUMBER’ Call for particulars re- garding this remarkable value, Representatives Wayne Ofl Burner. "Js Edw. Chapman COAL FUEL OIL 37 N St. NW. EDUCATIONAL. NATIONAL UNIVERSITY SCHOOLS OF LAW AND OF ECONOMICS AND GOVERNMENT Sooas, Ty 1R 180 Registrar's Office 8 13th S0 N.W, MARCH 3, 1937. F. THEO. ROGERS. hat and his necktie or his cane during | all his journeys in Spain, though these were symbols of the hated aristocracy. His formula, he explains, was a com- radely greeting to all whom he met and, if expedient, a bit of a speech. Sees Victory for Franco. Mr. Rogers is convineed that Gen. Franco and the so-called Fascists will be triumphant in the end, that the victory will come soon and | that an orderly government will be substituted for what he considers the reign of anarchy in Madrid today. He bases his belief on the contention | that Franco has a large majority of | the people of Spain with him, and that even in areas held by the loyalist forces the people will go to Franco when they have the opportunity. He which held Madrid, as a weak force which will soon succumb. Its mem- bers, he says, are made up largely of Prench, Russians, Central Europeans | and a scattering of adventurous Amer- icans and British. Mr. Rogers went to Manila with the American Army as a boy of 15. He was, he thinks, the youngest mem- bers of the expeditionary forces. He has made his home in Manila ever since- and is one of the best-known Americans in the Philippines. He has known every President of the United States and every Governor General and most of the Army officers who have served in the Philippines since 1900 and most of them have a soft spot in their hearts for Theo. He hopes while here to see President Roosevelt, whom he met three years ago, and other Government officials before starting back home via Boston, where he was born; New York, where he has been invited by one of the broadcasting companies to talk about cisco. ——e Spain over the radio, and San Fran- | URGES PHILATELIC AID Senator Duffy, Democrat, of Wis- consin, asked Congress yesterday ro hush a chronic complaint of 3,000,000 ~ stamp collectors by permitting them to print illustrations of American postage and revenue stamps. Philately now is hampered, he ex- plained, because counterfeiting laws forbid the publishing of stamp repro- ductions in albums and catalogs. Devoe is a Standard Brand Paint 922 N. Y. Ave. __ NAtional 8610 RO ‘There are a million lepers in China, one to every 400 persons. s 15e looks on the international brigade, GICHNER : The Tareyton CrAT? HERBERT TAREYTON CIGARETTES "Theres something about them you'll like” D. J. KAUFMAN, Inc. 1005 Pa. 1 Ave. 14th and Eye Sts. 1744 Pa. Ave. 3 Days Only! THURS. MAR. 4 295 Genuine 25 TROPICAL WORSTED SUITS Sudan Linen Suit also Radio Joe and His Budget Bunch, WMAL, Tuesdays. 7:30 P. M. ‘THE NEW Cloth and Imported included. s Only One Suit to a Customer! SAT. MAR. 6 1) 9 Save $11.05 by buying be- fore Saturday, 6 P.M. FREE PARKING at all 3 steres Take advantage of this special offer and get your Essoburner at once. Lowest prices, easiest terms in history . . . no monthly payments until September! This great new oil burner can be installed today with no interruption to your heat supply. Backed by the oil industry’s leader and over 40 years’ burner making . . . amazingly economical, long- lived and reliable. Don't delay . . . get the facts today! Esso Marketers Oil Heating Di Standard Oil Company of New Jersey 261 Constitution Ave, N.W.. Waspington, D. C. Tel. NA. 9032—After 5 P.M. Call NA. 1359 Annapolis Utilities, Incorporated 126 West St., Annapelis, Md. Phene A: Esso Marketers Ol New Jersey. Without any obligation, ing the new Essoburner and your U AS LOW AS $794 Sold, ranteed, installed, udhmbym.nund Essoburner b, THE OIL BURNER WORTHY OF THE MARK PER WEEK ON MONTHLY BUDGET PLAN serviced Essolene MAIL THIS COUPON TODAY remmren Plan of installation. ESSOHEAT — THE UNIFORM FUEL We sell Essoheat, the unvarying high quality fuel oil insured by 17 tests in the world's leading oil laboratosies. Call us today for a delivery. T ornee WTAND sSTID A Heating Divi 261 Con: YMI ANY Avenve please send full Information nited Responsibility ision, Standard Off c--nn’g