Evening Star Newspaper, October 28, 1937, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy and slightly colder tonight, pos- sibly preceded by brief rain this after- noon; tomorrow fair and slowly rising temperature; moderate winds. Tempera- tures today—Highest, 59, at 2 p.m.; lowest, 51, at 3 a.m. Full report on page A-14. Closing New York Markets, Page 20 85th YEAR. No. 341 Entered as second class matter post office. Washington, D. C. 48. TRAPPED CHINESE SPURN U. S. MARINE AID TO FACE CHAPEI RUINS 'DEATH IN British Also Offer to Assist Their Withdrawal. FOREIGN AREA INGRAVE PERIL Japanese Warn of Mopping Up Campaign. BACKGROUND— After defending Chapei for two months Chinese forces were forced to retreat jrom their positions north of Shanghai yesterday amid inferno of flames and bursting shells and bombs. New positions taken up on Soochow Creek, west of International Settlement, where stronger defenses have been con= structed. Japanese pushing ad- vance to complete capture of Shanghai before convening on Nine-Power Conference next Wednesday at Brussels, BULLETIN. PARIS, Oct. 28 (P)—Japan is disposed to accept friendly conver- sations with interested powers, in- cluding particularly the United States, looking toward eventual restoration of peace between Japan and China, a high Japanese author- ity said tonight. By the Assoclated Press SHANGHAI, Oct. 28.—The United States Marines and British troops offered tonight to aid withdrawal of a Chinese battalion, trapped by Japa- nese, to end the menace of stray buliets falling into Shanghai’'s Inter- national Settlement with sands of foreigners, including Amer- icans. The offer was refused. ‘The defiant, almost certainly doomed battalion held grimly to a small area within Chinese Chapei which the remainder of their army abandoned yesterday to flames and advancing Japanese. Crowds of foreigners and Chinese | had gathered on roof tops, despite a shower of machine gun bullets, to watch the battle along the settle- ment’s northern border when the American and British offer of aid ‘was made. Major Battle Around Hungjao. ‘There was danger to the Interna- tional Settlement, too, on the western | edges and along the French conces- sion frontier, with a major battle in | progress around Hungjao, suburb in| which are located many of the city’s | finest homes. Brig. Gen. John C. Beaumont, ma- | rine commander in Shanghai, and the British major general, A. P. D. Telfer-Smollet, contacted the em- battled battalion in Chapei by a still serviceable telephone line connecting with a warehouse in the battle Zone. The American and British com- manders suggested that their forces be used to aid the beleaguered Chi- nese in obtaining sanctuary south of Boochow Creek. , Reminded of the destruction thai| Japanese planes might cause to their position, Comdr. Col. Chinyuan re- | plied: “We are not much worried by the Japanese planes and we're prepared for their infantry.” That the final hour of the doomed battalion was at hand seemed certain when a Japanese Navy spokesman de- clared Nippon's bluejackets would mop up all scattered Chinese units in Chapei. Japanese naval headquarters advised United States marines to take precau- tionary measures against possible se- vere action to wipe out the Chinese battalion, opposite'one section of ma- rine defense lines. Designating the Chinese detachment | ax stragglers, the navy spokesman pre- dicted they soon would be Killed. Crowds of hero-worshiping Chi- | nese, who flocked to the Settlement side of the creek to cheer their fighting countrymen, declared they were not | stragglers, but the remains of a bat- talion of Generalissimo Chiang Kai- | shek's 88th Army, which had held | the North Station citadel 75 days | against Japanese attacks. Proud Chinese officials said the be- sieged warriors all were under 30 years old and came from every province in China. Attempt to Send Food. A number of foreigners attempted to send bundles of food to the battalion, but the attempts were not successful. Somehow, the unit obtained supplies of rice, hardtack and tea and sent back word that it would stick to the last man. Despite a shower of machine-gun bullets which spattered the Settle- ment pavements, crowds of Chinese (See CHINA, Page A-4) TOSCANINI IRKED Btalks Out of Orchestra Rehearsal When Notes Turn Sour. LONDON, Oct. 28 (#).—Tempera- mental Arturo Toscanini, who threw down his baton and stalked out of » British Broadcasting Co. orchestra rehearsal, will give the orchestra an- other chance to do Beethover’s Ninth Symphony—without sour notes. Today the British Broadcasting Co.s music executive, Owen Mase, laughed the incident off as trivial. “The orchestra will rehearse under Toscanini again today,” Mase said. “Toscanini found the orchestra rather tired. yesterday and could not get what he wanted, so he stopped the rehearsal. But there is no. question of his continuing to conduct.” its thou- | | Yonkers, N. Y. i e, JAPANESE AWAIT ORDERS FOR "PUSH" TO OPPOSITE BANK *{ CHINESE DEFEND 5, STRATEGIC BRIDGE | FROM JAPAN'S PLANES || @@ @ 5. MARINES ON GUARD JAPANESE POSITIONS | ~_~ INESE ros/nm‘s / L | | |__owemie | WASHINGTON, D. C., THURSDAY, OCTOBER 28, 1937—FIFTY-EIGHT PAGES. #%# INT | FRENCH | TEoNCESS Lo égNAn / ] national Setllement. With Japanese forces in possession of bomb-torn and fire- ridden Chapei, the Chinese Army defending Shanghai has dug into defensive positions as indicated on map. As miles of flame seared the vast area, the next major engagement was erpected between opposing forces on Soochow Creek, west of the Inter- Renewed bombardments by planes of both sides also played a large part in the vast theater of war as Shanghai’s millions awaited the next major clash. —Copyright, A. P. Wirephoto.. KILLING SUSPECT MAY BE D.C.BANDIT Liquor Store Operator Here | Partially Identifies Man Taken in Philadelphia. (Picture on page A-3.) | ‘Washington police today were in- vestigating the possibility that a 32- | | year-old gunman, under arrest in Philadelphia in connection with the | hold-up murder of C. Morgan Knight, socially prominent investment broker, in the Wanamaker department store | Monday, may be the “lone bandit” | who has been operating here during the last four months. Inspector Bernard W. Thompson, chief of detectives, said a Washing- | ton liquor store proprietor partially | identified the man—Russell Wilson, | alias Albert W. Gregg—as the one | who held him up at pistol point. | | The tentative identification was| made through a photograph of Wil- | son. Inspector Thompson ordered several detectives to interview other | recent hold-up victims and indicated that if Wilson is identified by one other person he would send the vic- tims to Philadelphia to view the sus- | pect. Wilson shot Knight as the latter attempted to stop him fleeing from Wanamaker's with $1,200, which e had taken from the cashier's cage on | the eighth floor. Knight died in a | hospital yesterday of a gunshot wound. | The bandit was captured a block away from the store. According to an Associated Press | dispatch, police also are investigating | the possibility the prisoner meay have had some connection with the kidnap- ing of Charles Mattson, 10, of Tacoma, Wash. They said that Wilson, with two days' growth of beard, resembled published sketches of the man sup-| posed to have kidnaped the Mattson boy, who was found dead January 10. — e MEMBER OF FAMOUS FAMILY DISAPPEARS Sister of Victor Brevoort Says He Started Out Alone for Azores in Yawl. By the Associated Press. NEW YORK, Oct. 28.—Disappear- ance of Victor Brevoort, 59-year-old scion of a famous Dutch family which once owned & large part of Manhattan Island, was reported today by his sis- ter, Mrs. Rudlf Eickemeyer of Mrs. Eickemeyer said her brother started out alone in his 36-foot motor yawl Cygnet August 7 from Boston Harbor on a projected trip to the Azores. He carried provisions for 60 | days. She described Brevoort, whose home is i Miami, as a powerful man, stand- ing 6 feet 5 inches tall and weighing more than 200 pounds. “His trip began just a few days be- fore the Endeavour, set out,” said Mrs. Eickemeyer, “and he must have run into the same storm the Endeavour encountered. I am afraid he was lost.” EYSTON CAR SPEEDS 309.6 MILES AN HOUR Mechanical Trouble Prevents Of- ficial Assault on Mark Estab. lished by Campbell. By the Associeted Press. BONNEVILLE SALT FLATS, Utah, Oct. 28.—Capt. George E. T. Eyston roared down this saline straightaway at a 309.6-mile-an-hour pace today, but mechanical trouble forced him to cancel an official assault on the world land speed record of 301.1292 miles per hour. Eyston’s 24-cylinder, streamlined monster automobile frayed a tire while passing through the measured mile, forcing him to “cut out” the motors, Official requirements call for runs each way over the course and since the Englishman was unable to make the return trip his mark—the fastest ever achieved in an automobile—was vitiated. Despite handicaps, his mechanical powerhouse flashed through ¢ glaring dawn to exceed Sir Malcolm Camp- bell's speed over the same course, in the same direction, when he estab- the present mark in 1935, PRESIDENT ASKS DAY WEEK STUDY Requests Civil Service Com- | mission to Inquire Into Costs of System. By the Associated Press. The Civil Service Commission is trying to ascertain, at President | Roosevelt's request, what increase in | Government costs would result from | a 5-day work week for all Federal employes, Persons familiar with present con- ditions estimated about 350,000 Vl)l 400,000 of the 848243 Federal em- ployes would be affected. More than 200,000 postal employes already are on a 5-day week, as are workers in several other bureaus. | Duties of some other groups. such as Forest Service workers, would not make a shorter week feasible. | The majority of Federal employes in Washington have a 39-hour week | of five and a half days, fixed by co! gressional statute. A general 5-day week would require a new law. G R Protest Strike in Belgrade. BELGRADE, Yugoslavia, Oct. 28 (#).—The capital's commercial and domestic life was disrupted without warning when most of the shops and | stores closed this morning in a pro- test strike against the government's extension of licenses to Belgrade's two depalrtmem stores, Windsors Plan Coast-to-Coast American Tour Couple Will Take Retinue of Six Persons. By the Associated Press. PARIS, Oct. 28—The Duke and Duchess of Windsor are planning & double swing across the United States from New York te Hollywood, and back to Miami, a close associate dis- closed today. They will travel with about 70 trunks and a retinue of six persons, he explained. The westward trip would take the former British mon- arch and his American-horn wife along & northern route, while the eastward journey would be through the South. This member of the Duke's suite emphasized that the exact itinerary of the five-week tour was still under discussion. The Duke and Duchess will sail November 6 on the liner Bremex. After arrival in Florida they plan- ned to visit a Caribbean island not yet decided upon. A friend of the couple said Washington and Pitts- burgh already were on the list of places likely to be visited. Mr. and Mrs. Charles E. Bedeaux, American hosts of the couple when they weré married at Chateau de Cande last June, may accompany them part of the way after prepar- ing a welcome for them in New York. DENIES ENTERTAINMENT PLAN. Mrs. Harold H. Sims Unaware of Re- ported Arrangements. Mrs. Harold H. Sims, wife of the at- tache of the British Embassy, today denjed that she will entertain the Duke and Duchess of Windsor at dinner next month. She stated that she is com- pletely unaware of any such enter- tainment and added, “After all, if I was giving a dinner I would know some- thing about it, wouldn’t 12" A telephone conversation with the British Embassy also brought denials of the report that Mr. and Mrs. Sims would entertain the distinguished vis- itors. ' The statement was made that no information has been received as to what the British Ambassador and Lady Lindsay will do for the former King and his wife, the former Wallis War- field of Baltimore. Sir Ronald Lind- say, who left Washington the middle of August, is on'the Queen Mary, &r= riving in New York on Monday. Not until the Ambassador’s return to Washington will the State Department have any information to give out; At present they are entirely in the dark as to where they will stay and by whom they will be entertained. Charles Bedeaux, who will handle arrange- 1 corner of the empires of others,” he | WITH SUNDAY MORNING EDITION |L DUCE DEMANDS REICH GET PLACE IN"AFRICAN SUN Backs Insistence on Return of Germany’s War-Lost Colonies. FIFTEENTH ANNIVERSARY OF ROME MARCH NOTED Italian Leader Also Holds Europe Must Eliminate Bolshevism for Durable Peace. BACKGROUND — Solidarity of Italian and German dictatorship reafirmed at recent conference of Reichsfuehrer Hitler and Premier Mussolini in Berlin, German demands for return of col- onies lost during war repeatedly made since advent of Hitler to pow- er in 1933. Italy has satisfied her + colonial demands by conquering Ethiopia, although new Italian em= pire has not yet received recogni= tion of France and Great Britain. By the Associated Press. ¢ Foening Star The only evening paper in Washington with the Associated Press News and Wirephoto Services. () Means Associated ROME, Oct. 28.—Premier Mussolini, celebrating the fifteenth anniversary | of the Fascist march on Rome, de- | clared today it is “necessary” that| Germany be restored to her “place in the African sun.” Il Duce thus voiced support for| Germany’'s desire for return of her | war-lost colonies. He spoke at Musso- lini Forum in the presence of 100,000 Fascists from all parts of Italy. | A German delegation, sent to Rome | by Reichschancellor Hitler for the celebration, heard the premier, along with other foreign diplomats, Attacks Bolshevism. Mussolini turned to what both Nazi| Germany and Fascist Italy term the threat of “Bolshevism” in Europe. “For durable and fruitful peace it is necessary that Bolshevism be elimi- nated in Europe,” he told the massed | Blackshirts and visitors. | “It is necessary that some clauses of the (World War) peace treaties be revised,” he went on. “It is necessary | that a great people, the German peo- | ple, have once more the place to which | it is entitled and which it once pos- | sessed in the African sun.” | The premier shifted to Italy’s own colonial empire. “It is necessary that Italy be left | tranquil because she has created her mpire with her own blood and with | her resources without touching a smgle( said. Counters Foreign Criticism. He defended Italy against what he called foreign criticism in connection with the recently imposed 10 per cent capital levy for rearmament. “We cannot be judged by these ridic- | ulous standards,” Il Duce said. “In Fascist Italy capital is at the orders of the state, while in great democra- | cies the phenomenon is exactly the opposite—the state is the servant of | capital.” Mussolini expressed appreciation for | the presence of Hitler's representatives. | 100,000 Enter Capital. The 100,000 Fascists, who camped | last night on the outskirts of Rome, had marched into the capital in a re-| enactment of the history-making march of 15 years ago. The visiting German delegation was | headed by Rudolf Hess, Hitler's general | representative, and Viktor Lutze, chief | of staff of the German Storm Troops. The celebration in Rome had its counterpart throughout flag-draped Italy. In hundreds of communities crowds gathered to hear orations by local leaders and follow the radio broadcast of the program in Rome. On the program of the day Musso- lini's address followed the ancient Roman custom of plowing the ground for the monumental new home of the! Fascist party in Mussolini Forum. British Army Leader Dies. NEWCASTLE, England, Oct. 28 (#). —Maj. Gen. F. W. B. Landon, 77, chief inspector of quartermaster gen- eral's services in the World War, died yegterday. He retired in 1919. Summary of Page. Amusements C-6-7 Comics.. C-10-11 Editorials_.. A-12 Finance.... A-19 Lost & Found D-4 Obituary - A-14 WAR IN FAR EAST. Trapped Chinese reject U. S. Marine help. Page A-1 Trade sanctions would play into Ja- pan’s hands at first. Page B-2 FOREIGN. 11 Duce demands Reich get place in “African sun.” Page A-1 NATIONAL. New stock market regulations effective Monday. Page A-1 Reserve system of blood serums being established in U. 8. Page A-2 Hull defends trade program in reply to Capper. Page A-4 A. F. of L-C. I. O. impasse reaches name-calling stage. Page A-5 Warrant for arrest of Gov. Quinn remains unserved. Page A-17 WASHINGTON AND VICINITY. Philadelphia murder suspect may be D. C. bandit. Page A-1 Cumberland merchants move stocks as Potomac seeps into city. Page A-1 Fair weather due after wettest October on record. Page A-1 McAflee’s seek new Short Story.. D-4 Society- Sports. - Woman's Pg. C Attorney to FAIR SPELL TOEND WETTEST OCTOBER Clear Weather Due Tomor- row—nPrince Georges Areas Under Water. Fair weather was expected here to- morrow as the wettest October on rec- ord drew to a close with the Potomac River rising sharply and low areas of nearby Prince Georges County under water. The current forecast is for “cloudy and slightly colder weather tonight, possibly preceded by a brief rain this afternoon; Friday fair, with a mini- mum tonight of about 42 degrees.” Overflow from a branch of the Ana- costia River today was several feet deep on low sections of Bladensburg road, although damage was nominal and the water level was reported at a stand- still. Several schoels in Prince Georges County were almost deserted today be- cause of high water. Pupils from Cot~ tage City and Colmar Manor were “ferried" across flooded sections of Bladensburg road in Maryland State Roads Commission trucks. Water backing up from sewers rose to a height of severel feet at Stanford street and East avenue, in Chevy Chase, Md., and a number of auto- mobiles that were “drowned out” had to be towed to dry points this morn- ing by employes of nearby garages. The same intersection flooded last Saturday after Friday's heavy rain- fall, and residents said that at one time the water was between 4 and 5 feet over the roadway. Occupants of stalled cars had to be carried to safety. Water was high in the Potomac and slight overflows spread over the flying | fields at the local military and civil airports, but airplanes continued to use all three fields. An inch and three-quarters of rain has fallen here in the last 24 hours. ‘The continued downpours during the present month have accounted for 8.81 inches of rain, or a quarter of an inch above the previous record set in 1885 and 587 inches above normal. The year is 13.13 inches above normal so far. Heavy rains over most of the Po- tomac Valley during the last 24 hours resulted in sharp rises on the upper river, The Rivers and Floods Division of the Weather Bureau here, however, ex- pects little flood damage along the Washington water front unless more rain falls above here and unforseen conditions develop in Washington, such as a southerly blow to pile up the water in the Potomac at high tide. Today's Star .| Group health clinic opens Monday; inspection today. Page B-1 Two women killed in traffic mishaps in this area. Page B-1 sales tax on beer, cigarettes hit by Palmisano. Page B-1 D. C. Juvenile Court law almost ready for Congress. Page B-1 Use of Fort Totten as subreservoir site assailed. Page B-1 Counsel for accused marine charge “inquisition.” Page B-6 EDITORIAL AND COMMENT. Editorials. Page A-12 This and That. Page A-12 Answers to Questions. Page A-12 Stars, Men and Atoms. Page A-12 David Lawrence. Page A-13 H. R. Baukhage. Page A-13 Mark Sullivan. Page A-13 Jay Franklin. Page A-13 Delia Pynchon. Page A-13 SPORTS. ¥ Soggy fields seen as help to local foot- ball teams. Page D-1 Maryland alone favored Saturday in gridiron ratings. Page D-2 Yale and Dartmouth risk clean slates in headline duel, Page D-3 MISCELLANY. After Dark. Service Orders. City News in Brief. Vital Statistics. Traffic Convictions. Nature's Children. Page B-10 Page Page Page Page Page Page trial. Page A-2 Substantial increase in Chest contri- butions reported. Page A-2 Federal grand jury to be recalled for track probe. Page A-17 ments for the Duke's itinerary, also is still abroads o Bchool board group hits W. P. A. plan. rz A-18 Shipping News. Dorothy Dix. Betsy Caswell. Cross-word Puzzle. Letter-Out. ‘Winning Contract. Bedtime Stories. Page Page Page C-10 Page C-10 Page C-11 Page D-8 Lazzeri Signs With Cubs as Player-Coach | TONY LAZZERI. | By the Associated Press. | CHICAGO, Oct. 28.—Tony Laazzeri, | for 12 years star second baseman for the New York Yankees, was signed today by Owner Phil W. Wrigley of the Chicago Cubs as player and coach for 1938. The deal was closed at & one-hour conference with Wrigley. Lazzeri came from his home in San Francisco for the meeting. Lazzeri, who became the Yanks' reg- ular second baseman in 1926, has played in six World Series. Wrigley arranged with the Yankee management for the second sacker’s release after the last World Series, | saying he felt an ambitious player of | the Lazzeri type could be fitted into the Cub organization. Earlier Wrigley made it clear' Charlie Grimm would continue as the Cub pilot. 'WOMAN IS INJURED IN ONE-STORY FALL Mrs. Grace Payne, Leaning Out ‘Window to Escape Gas Fumes, Tumbles. Leaning from a second-floor win- dow for fresh air after a gas explosion downstairs, Mrs. Grace Payne, 28, of 809 E street SW., fell to a trash heap in the rear of her home today. She suffered injuries to the head and severe bruises to the body. Her condition was not believed critical when she was removed to Casualty Hospital. Police said the explosion occurred when Mack Welsh, 811 E street SW, lighted a cigarette in a downstairs room adjoining the kitchen, which had become filled with gas fumes as the result of a pipe leak. No one but Mrs. Payne was injured, although plaster was shaken loose from rooms in her home and in an at- tached dwelling at 811 E street S.W. BISHOP HUNT INSTALLED IN SALT LAKE DIOCESE “Radio Priest” of the West Is Consecrated in Impressive Cathelic Service. By the Associated Press. SALT LAKE CITY, Oct. 28.—Amid rich religtous pageantry, the Right Rev. Msgr. Duane G. Hunt, “radio priest” of the West, was consecrated and installed Bishop of the Salt Lake Catholic Dio- cese today. He is the first Catholic bishop .on- secrated in Utah, home State of the far-flung Latter Day Saints' (Mormon) religion. Consecrator at the impressive two- hour rites, the Most Rev. John J. Mitty, Archbishop of San Francisco, said Bishop Hunt “is one of the best spokesmen for the church in the Na- tion.” Churchmen present included the Most Rev. John G. Murray, Archbishop of St. Paul, Minn.; the Most Rev. E. J. McGuinness, Bishop-designate of Ral- eigh, N. C, and the Rev. H. M. Shea of Chicago, who baptized Bishop Hunt in 1912, —_— One Dead in Coast Storm. HOQUIAM, Wash., Oct. 28 (#).—A 60-mile gale, torrential rains and flooded rivers cost one life and left travel and communications on the Olympic Penmmuturupted today. ) Py | stock market today, AFTERU. . AGTION | Credit Tightening on Short Selling Pushes Some Shares Up $6 or More. By the Associated Press. NEW YORK, Oct. 28—Traders plunged into the buying side of the pushing some shares up $6 or more, in wake of a shift in Washington's money controls over the flow of credit into specula- tion. Blocs of 1,000 to 15000 shares of trading favorites on the Stock Ex- change changed hands around the opening as the tightening of the credit screws by the Federal Reserve Board on short-selling put bear operators on the run. Competing with recent short sellers for stock was a host of traders who took courage from the Reserve Board's relaxation of credit restrictions against buying stocks, simultaneously with the clamping dewn of the margin lid on short-selling. After the first excited whirl of buy- ing had subsided, the market dropped into a calmer pace and part of the initial gains were erased. Up $2 to more than $6 on the open- ing wave of orders following over- night news of the changes in margin requirements by the Reserve Board, were such shares as United States Steel, Chrysler, Allied Chemical, Gen- eral Motors, du Pont, J. I. Case and Santa Fe. For a time the Stock Exchange tick- er trailed transactions on the floor of the Exchange in the buying rush, which lifted some shares above the tops of last week’s rally from the lows of the 1937 decline. RESERVE BOARD ACTS. Rules Effective Monday Cut Buying, Raise Short-Selling Margins. By the Associated Press. The Federal Reserve Board, ap- parently seeking to stem the tide of stock market selling, has issued regu- lations which in effect will make it easier to buy securities than to sell them. The new rules, effective Monday, will cut from 55 to 40 per cent the amount of cash which traders must put up for the puichase of stocks and will require a 50 per cent margin on short sales. This readjustment of credit controls over the market is expected by Wash- ington officials to encourage buying and erect a barrier against short sell- ing. . In practice, the buyer of a $100 share of stock will have to put up only $4D in cash. If he wants to sell the same security short, he will have to hand over $50 in cash. The new requirement on short sell- ing is the first ever imposed by the board. The only rule heretofore has been one by the Stock Exchange re- quiring & 10-point margin. The board regulation was drafted in co-operation with the Securities & Ex- change Commission after Reserve System legal experts reported it would not transcend authority granted un- der the Federal Reserve Law. Seen Restoring Confidence. Initial reaction in Wall Street was uniformly favorable to the cut in mar- gins on the buying side, but the re- quirements on short 'sales came as & surprise to some traders. The consensus appeared to be that the Reserve Board’s dual action would do much to restore confidence in a market where $25,000,000,000 in se- curities values have been washed away recently under heavy waves of selling. Until the board acted last night, financial and business demands for easing margin requirements on the buying side had been growing steadily more insistent. Winthrop W. Aldrich, chairman of the Chase National Bank, and others had argued that the 55 per cent mar- gin requirement tended to make a “thin” market—one in which profes- sional traders trimmed their sails and let securities prices spin erratically up and down. Both Washington and Wall Street have tried recently to measure the ex- tent to which short selling has sliced down securities values. The New York Stock Exchange has made a survey of short sales and is expected to make public its findings soon. A similar study has been made informally by the S. E. C. Prior to imposition of the 55 per cent Yesterday’s Circulation, 143,819 (Some returns not yet received.) TWO CENTS. MERCHANTS MOVE AS WATERS CREEP INTOCUMBERLAND Crest From Upper Potomac Expected to Reach City at 3 P.M. Presg. RIVER CONTINUES RISE OF ONE FOOT PER HOUR Ridgeley, W. Va., Hardest Hit. Is Almost Inundated at Noon. By the Associated Press. CUMBERLAND, Md., October 28— Flood waters from Wills Creek, swollen by the back wash of the Potomac River, gorged by a continuous rain fall of nearly 4 inches in the last 27 hours, began seeping into the business dis- trict on Mechanic street here at noon today. City Engineer Ralph L. Rizer at the same time announced the crest of the high water from the Upper Potomac area could be expected to reach here about 3 o’clock this afternoon. Merchants, recalling the devastating flood of 1936, began removal of stocks to upper floors of their establishments. The Potomac River earlier had left its banks and spread over Paca and Smallwood streets and Avirett avenue, on the west side, while the greater part of Ridgeley, W. Va. across the Potomac River from Cumberland, was under water at noon. It was the hardest hit in the immediate vicinity of Cumberland at that hour. The Potomac at noon had reached a height of 23.8 feet, bringing it with- in 6 feet of its peak in 1936. It con- tinues to rise at the rate of about a foot an hour. The Western Maryland Railway is operating no trains between Cumber- land and Elkins, W. Va, and the railroad telegraph lines are out of commission. The Baltimore & Ohio Railroad reports normal service. Worse Than 1936 Flood. Conditions at Shalimar, a few miles west of Kitzmiller, in Garrett County, were reported as worse than at the crest of the 1936 flood, as land was flooded in the early hours which was not reached in 1936. The decline in the water at Shallmar this moming was believed due to stoppage of rain above that point. The water remained about station- ary at Piedmont this morning, but already two streets there are flooded The water has not reached the top of the flood wall in Piedmont, but the streets were flooded due to back water. The Georges Creek at its junction with the Potomac at Westernpoint is high but not at an alarming stage. Families Moved Out. Residents on the flooded Piedmont streets moved their household goods to higher stories during the night and left their homes. Twenty families were moved to safety at Shallmar during the night under the direction of H. A. Marshall, superintendent of the Shallmar Mi- ing Corp. Marshall remained on duty throughout the night giving reports {on and checking on mining property which was under water. He reported two county road bridges in the section were washed out and that the road to Kitzmiller was cut off at midnight. About 100 families took refuge on higher ground at Kitzmiller. Roads connecting Piedmont, West- ernport and Keyser are blocked on both the Maryland and West Virginia sides. Keyser is also cut off from the West as New Creek has left its banks. Operations at the West Virginia Pulp & Paper Co., at Luke, Md., were suspended this morning when water reached the plant. A truck carrying paper, owned by the company, was re- ported overturned by the water in Keyser. Bridges Washed Away. Approaches to the bridge at Bloom- ington were washed out early this morning and lumber being used to construct a new bridge at that point was washed away. Patterson Creek was over route 26 at Fort Ashby, W. Va., cutting off traffic between Cumberland and Rom- ney. Route 50, west of Romney, was blocked by Patterson Creek at Bur- lington, but the rise has stopped at this point. The south branch of the Potomac is out of its banks at several points, but had not blocked the road between Romney and Moorefield. Rainfall in the 24-hour period end- ing at 8 am. at Cumberland was 2.55 inches. It is still raining hard. FAMILIES FORCED OUT. Residents of Kitzmiller Take Refuge on Mountain. KITZMILLER, Md., Oct. 28 (#).— The flooded upper Potomac River forced 120 families to flee their homes here and at nearby Shallmar early today. A hundred families living in the valley here and 20 in Shallmar moved to the homes of neighbors on the mountainside. The road between the two mining communities was inundated. TWO BRIDGES CLOSED. Entrance to Laurel Race Track Also Under 14 Inches of Water. BALTIMORE, Oct. 28 (#)—L. T. Downey, State roads district engineer at Cumberland, reported to the Roads Commission here today two bridges in the vicinity of Cumberland have been closed to traffic because of flood water, with “the rain still pouring down.” Downey's report stated the span connecting Keyser, W. Va., and Mc~ Cool, Md., across the Potomac River, was closed when high water endan- gered the bridge supports. The bridge (See POTOMAC, Page A Swimming Pool Finished. MOUNT CARMEL, I, Oct. 28 (#).— This is no time of year to discuss it, but completion of Mount Carmel's $100,000 swimming pool and commu- (See BI‘OCi Page A-4) nity house wn‘nnaunced today, :