Evening Star Newspaper, December 21, 1937, Page 1

(U. 8. Weather Bureau Forecast.) Mostly cloudy tonight and tomorrow; Pprobably rain by tomorrow night; lowest temperature tonight about 35 degrees; ‘warmer tomorrow. Temperatures today— Highest, 40, at 2 p.m.; lowest, 37, at 10:30 a.m. Closing New York Markets, Page 20 _86th YEAR. No. 34,202. BRITAIN WEIGHS JPOWER FLEET FOR CHINA DUTY Joint Action With U. S. and France Would Check Japan Is Belief. WOUNDED AMBASSADOR " SOON TO BE REPLACED Government Told Six Major War- ships Necessary for Adequate Protection of Interests. B5 the Associated Press. LONDON, Dec. 21.—The House of Commons gathered today for foreign affairs debate, with a group of its members advocating a mighty patrol of Chinese waters by combined fleets of American, British and French war- ships. At a session of the group on the eve of today’s discussion the view was expressed that a lumping of the naval forces of the three nations in the Far East would tend to check “Ja- pan’s aim to dominate China to the complete exclusion of foreign inter- ests.” Prime Minister Neville Chamber- lain in addressing the House declared that “no attempt has ever been made by Japan for peaceful settlement” of her war on China. “It is time now for the Japanese government to show they are not unmindful of the rights and interests of foreigners and that their assur- aces and apologies meant something more than words,” the Premier de- clared. Concerning the entire foreign sit- uation, he said Great Britain’s “def- inite objective” is the “settlement of | the grievances of the world without war.” Chamberlain declined to be drawn into a discussion of the origin of the Chinese-Japanese War but dealt spe- cifically with Japanese attacks on British ships. “What we are doing now is awaiting proof of the determination of the Japanese government to prevent re- currence of these incidents * * *” he said. Not Forgetful of Duty. “We still are anxious to serve the cause of peace by means open to us. But it must not be thought that our desire for peace and our patience un- der repeated provocation means” we either are indifferent to our interna- tional obligations or that we are for- getful of our duty to protect British interests.” Maj. Clement R. Attlee, Labor lead- er, declared that Japanese attacks on British and American warcraft bore “‘a sinister resemblance” to assaults on Russian shipping just before the an- | mexation of Manchukuo. | Predicting that “Hong Kong may be cut off from the mainland and Shang- hai may be left derelict,” he charged the government was reaping the result *of its own past actions” in failing to curb Japan. ‘The opposition leader said the Jap- anese, in attacking foreign vessels, were “trying it on to see what would be the results and utterly disregarding the interests of everybody else in China. “They behave as if they were Gen. Franco and British commerce were merely on a par with Spanish women and children,” he continued. | “Japan wants the hegemony of the Far East.” Deplores Death of Bingham. Urging “the greatest amount of co- operation with the United States,” he deplored the death of United States Ambassador Robert W. Bingham, who, he said, “did so much to help better the understanding between the two countries.” He concluded with a statement that it was the right and duty of the League of Nations to “support China in her fight against aggression.” The government already had em- phasized its grave view of the Far| Eastern crisis by naming a new Am- bassador to China to replace Sir Hughe Knatchbull-Hugessen, inactive since he was wounded last August- when Japanese aerial machine strafed his automobile. Kerr Will Go to China. ‘The foreign cffice announced Sir Archibald Kerr, Ambassador to Bagh- dad since 1935, would succeed him “as soon as possible.” “Recent events in the Far East,” the announcement said, had made it nec- essary_that Britain be represented in China “by a diplomat of ambassa- dorial rank and that arrangements to such an end should be made with the least possible delay.” ‘The Britishs cabinet had been re- ported weighing the dispatching of six capital warships to reinforce its China fleet on advice of naval au- thorities. Admiralty experts were said to have told the government that six major warships—battleships or battle cruis- ers—were necessary for adequate pro- tection of British interests. In informed quarters the belief was expressed that Chamberlain and Eden ‘were ready to push through the China fleet reinforcements over vigorous op- position. All Parties Are Agreed. Members of Parliament urging the three-power show of naval strength included men from all parties. In their private meeting yesterday under the chairmanship of Sir Cyril Entwhistle, Vice Admiral C. V. Us- borne, one-time director of the naval intelligence division, suggested im- mediate creation of & joint naval ad- visory councll on Far Eastern affairs by Britain, the United States and France. It would function merely for “maintenance of existing rights” and would be “absolutely non-aggressive.” Britain'’s naval strength in the Orient today was much inferior to Japan’s, but, it was said, “a threat of bined action would be enough to, Ster Japan.” 4 gunners | Entered as second class matter post office, Washington, D. C. By the Associated Press. SAN PEDRO, Calif., Dec. 21 —Fleet organization and training were the official reasons given today for the sudden transfer of nine naval destroy- ers from the San Diego base to San Pedro. Staff officers said the United States Fleet was in the highest state of effi- ciency and training in its history, ready for instant action in any emer- gency. Admiral Arthur J. Hepburn is one of the hardest taskmasters the fleet ever had. He is secretive, placing much emphasis on the evaluation of surprise. For four years the fleet has been drawn away from routine functioning and subjected to unexpected orders. Admiral J. M. Reeves initiated this. In his two years as commander in chief there were many sudden orders, some affecting the whole fleet. Two years ago, when Admiral Hep- burn succeeded Admiral Reeves, this system was intensified, the present .commander in chief being far more secretive. Ships of the fleet are completing their gunnery schedules of the year and soon will go into the mainte- nance and repair stage prior to the forthcoming change of command, when Admiral Claude C. Bloch will | succeed Admiral Hepburn. @ ‘WITH SUNDAY MORNING EDITION The only evening paper in Washington with the Associated Press News and Wirephoto Services. ¢ Foening Stap WASHINGTON, D. C, TTESDAY, DECEMBER 21, 1937—FORTY-SIX PAGES. $## Transfer of U. S. Warships Just Training, Navy Insists Nine Destroyers Shifted to San Pedro Base—Fleet Reported Ready for Action in Emergency. A radio call in San Diego last night for the entire personnel of the Alrcraft Scouting Force to report immediately for duty was described later by an of- ficial source as a “serious mistake.” The sailing of the destroyers under forced draft followed by a few hours the publication of a letter by Secre- tary Hull stating the present “does not seem an opportune moment” to withdraw American ships from the Sino-Japanese war zone, Shore patrol officers combed the- aters and other amusement places for crews on holiday leave. Comprising Destroyer Squadron 11, the ships in the movement were the Hopkins, Wil- liamson, Childs, Gilmer, Barry, Fox, Brooks, Goff and Reuben James. Capt. H. L. Pence was in command. Squadron officers said the transfer was a “surprise,” although the de- stroyers were scheduled for foreign cruises early next year. The Navy Department in Washing- ton was non-commital, but pointed out Admiral Hepburn has authority to act independently. The false reports of stand-by orders for the aircraft scouting force at San Diego were explained by Capt. Alva Bernhard as originating in a call by | one officer for a number of men to | work overtime. The request became | garbled, Capt. Bernhard said, and scores of Navy fiyers reported. ‘SOLDIERS IN CHINA PROBLEM T0 U. S, (War Department Worried | Over Infantry at Tientsin, Marines in Shanghai. | | By CONSTANTINE BROWN. | The dispatch of a destroyer division | from San Diego to San Pedro was de- scribed today in responsible quarters as one of those routine maneuvers the | commander in chief of the fleet orders | occasionally to test the flexibility of the fleet's mobilization. | Such surprise maneuvers, it was | stated, take place at intervals and are ordered by the commander in chief on the spur of the moment. The same thing applies to the rumor that a submarine flotilla was ordered some time ago to go to Alaska. In | order to test the possibility of using Alaska and the Aleutian Islands as submarine bases in winter time, the | commander in chief had been contem- plating for some time sending sub- mersible craft to the new bases. Whether submarines have been or- dered to make that test could not be confirmed here. These movements are described as routine matters entirely in the hands of the admiral command- ing the fleet. Movements Dramatized. Just at present fleet movements, which in ordinary times would be only of local interest, are becoming dramatized because of the possibility of the fleet being sent on a long cruise to the Southern and Western Pacific. That possibility is still being weighed but no decision will be taken until it appears evident to the administration that the Japanese government is try- ing to dodge the issues deriving from the sinking of the Panay and the other American ships on the Yangtze River. In the meantime the War Depart- ment is seriously worried about the position of the 15th Regiment of in- fantry stationed in Tientsin. Similar thought is being given by the Navy Department to the Legation guard in Peiping and the brigade of marines at Shanghai. The State Department still main- tains that those troops are in China on the basis of international treaties and agreements and must remain there to afford the necessary protec- tion to American citizens living in | those areas. Authorities Realistic. But the military and naval authori- ties take a more realistic view. They say that in the event of our relations with Japan becoming more strained these men will be nothing but pawns in the hands of the Japanese. The 15th Infantry, stationed in Tientsin, is surrounded, like the other foreign troops, by hundreds of thou- sands of Japanese troops and should the situation become dangerous they would not have a chance to fight their way out. They would have to sur- render at the first request of the Jap- anese Army commanders. To a lesser degree the same thing might apply to the Marines in Shang- hai. Although their chances of get- ting out are better than that of the (See SOLDIERS, Page A-5.) American Liner IsSafeinCrash; NonelsInjured | BY *he Associated P-ess. HAMBURG, Germany. Dec, today the American liner City of Ham- burg was heading for Cuxhaven under North Sea with an unidentified vessel. this morning for Southampton. She carried freight and only one passenger, Miss Herta Peters of New York City. 56 ARE INDICTED IN BODTLEG RING Government Declared De- prived of $1,800,000 in Taxes in Past 3 Years. By the Associated Press. NEW YORK, Dec. 21.—Fifty-six persons were indicted by the Federal grand jury today on charges of op- erating a huge bootlegging conspiracy which deprived the Government of at least $1,800,000 in taxes during the past three years. The defendants included three city policemen and a former inspector of the alcohol tax unit, Assistant United States Attorney W. Mahlon Dickerson said the gang’s operations resulted in two killings, one by officers. Seventeen trucks and automobiles were seized during the six-month in- vestigation, Dickerson said, and five stills were uncovered, each with a ca- city of from 200 to 500 gallons. Two of the stills were maintained in New Jersey, he said, one in Dela- wanna and the other in Clifton. Other stills were operated in Manhattan, Amityville, Long Island and Haver- straw, N. Y. CAPITOL SAVINGS BANK WILL DISBURSE $60,000 Distribution of 614 Per Cent Divi- dend to Depositors Will Start Tomorrow. Distribution of a 61 per cent divi- dend, the third since the institution closed, will start tomorrow for de- positors of the North Capitol Savings Bank, Receiver John F. Moran an- nounced today. Some $60,000 will be disbursed to more than 5,800 depositors. The pay- ments will be made between 9 a.m. and 8 p.m. tomorrow and Thursday at the Park Savings Bank Building, Four- teenth and Kenyon streets N.W. The closed Departmental Bank started paying & 5 per cent dividend to more than 4,000 depositors yes- terday. Suit Filed for One Cent. SOUTH BEND, Ind,, Dec. 21 (#).— Mendel E. Gilman, business man, has filed suit against a bank which, through an admitted error, made him co-defendant in a suit for a note. Gilman seeks damages of 1 cent. By the Associated Press. Alf M. Landon gave President Roosevelt today a pledge of *co- operation and support in the difficult foreign situations confronting your administration.” In a telegram made public at the State Department, the 1936 Repub- lican standard bearer and former Kansas Governor, criticized members of Congress of both parties who, he said, “by their actions helped create the impression on foreign nations that they do not trust your administration of foreign affairs.” “They would hamstring your con- duct of an extremely delicgte foreign situation,” Mr. Landon wrote. The President, in reply, said “the generous spirit of your telegram helps me to meet the problems which con- front our country in the field of foreign relations during these troublous times.” Mr. Roosevelt said renewal of Landon Pledges Roosevelt Support in Foreign Situation Landon’s pledge given at a Grid- iron dinner a year ago, “not only strengthens the hand of Government, but uvu‘ulolourcmum & good example.,” “I believe that the overwhelming majority of all countrymen, regard- less of politics, race, creed or color, from the days of Washington to this hour have desired to pursue the even tenor of their way at peace with all nations and all peoples,” Mr. Roosevelt “But throughout our long history we Americans have rejected every sug- gestion that ultimate security can be assured by closing our eyes to the fact that, whether we like it or not, we are & part of a large world of other na- tions and peoples. G luct 21— United States Lines offices here said | her own steam after a collision in the | Apparently no one was injured. The1 City of Hamburg left Bremen early LEWIS IN SESSION WITHC. 1. 0. CHIEFS ONUNITY STRATEGY All 32 Unions Represented in Emergency Parley Prior to Negotiations. HAND OF ADMINISTRATION SEEN TO PROMOTE PEACE Green Meets With A. F. L.'s 3-Man Group Before Resuming of Pact Efforts. BACKGROUND— American labor movement split in 1395, when group of A. F. L. leaders formed committee to press campaign of industrial organiza- tion. In following summer, unions were suspended from Federation. Meanwhile, both factions built up memberships to record total of about seven million organized work- ers. Peace negotiations were launched in October. By JOHN C. HENRY. John L. Lewis, chairman of the Committee of Industrial Organization, today conferred in closed session with representatives of all 32 unions af- filiated with his organization in an emergency session called only a few hours before resumption of peace ne- gotiations with the American Federa- tion of Labor. It was the first meeting at which the entire C. I. O. was represented since their conference in Atlantic City last October, when the peace efforts were launched. With the call to appear, sent out | quietly, officials of the affiliated unions | professed not to know what strategy | | was to be discussed as they went into | session with the C. I. O. chieftain. “At the same time it was reported at headquarters of the A. F. of L. that William Green, president, ex-| pected to confer with his three-man Negotiating Committee before they met this afternoon with representa- tives of the Lewis faction. The joint session is scheduled for 2:30 o'clock. Administration Influence? As leaders of both groups partici- pated in these surprise maneuvers, speculation increased anew as to whether the administration finally had taken a strong position in favor of restoring unity to the American labor movement. It was reported that Secretary of Labor Perkins had dis- cussed the situation at last week's cabinet meeting with President Roose- velt, submitting a memorandum par- ticularly on the bitter C. I. O.-A. F. of L. rivalry on the Pacific Coast. On several occasions the administration has been embarrassed by the labor | warfare, but until today at least had not taken a strong hand in attempt- ing to force a reconciliation, Making their task no easier, assum- ing that either is desirous of reaching any agreement, were events of the past two weeks in which spokesmen for both groups have traded invective and accusations with little restraint. Climax of this brief but intense cam- paign of recriminations came only to- day, when the C. I. O, through its new weekly newspaper, accused the Federation of allying itself with sweat- shop employers and Tory politicians in sabotaging the wage-hour bill. A. F. L. Heads Blamed. Referring to the turnabout of Mr. Green in withdrawing his support of the legislation and calling for its de- feat, the C. I. O. blamed the action on “a little clique of a half dozen officials who dominate the Federation's Execu- tive Council.” In this fashion the C. I. O. listed those responsible for defeat of the legislation: ‘‘Chiseling sweatshop employers, (See LABOR, Page A-4.) KELLOGG IMPROVED ST. PAUL, Dec. 21 (#)—Frank B Kellogg, internationally known diplo- mat, gravely ill at his home here, was reported today by his physician to be improved. Mr. Kellogg, co-author of the Kele logg-Briand peace pact, was stricken with pneumonia late Saturday, which complicated cerebral thrombosis con- tracted early in November. He rallied yesterday, however. Tomorrow will be his 81st birthday " (®) Means Associated Pr DO YOU REMEMBER. WHAT FRANK WAN US TO BRING HIM? AND HOLIDAY IS DRAWING SO NEAR! B the Associated Press. The Senate Civil Liberties Commit- tee said today that labor spies were employed by 2,500 firms—“A Blue- book of American Industry.” And, the committee added in a re- port to the Senate on work for the year, many of the spies were found to be union members, “including a national vice president of his vnion.” The committee, composed of Sen- ators La Follette, Progressive, of Wis- consin, and Thomas, Democrat, of Utah, charged the spying practice violated “the right of free speech and assembly” and that about $10,000,000 had been spent “by certain corpo- rations for spies, munitions and strike- breakers in the past three years.” “The right to work means nothing if it is at the expense of more im- portant rights,” the committee as- serted. It predicted that labor espion- age “will destroy every vestige of right which for 150 years we have thought our Constitution guarantees the aver- age individual.” ‘The report noted that the Pinker- ton National Detective Agency and other organizations had announced abandonment of “industrial espion- 2,500 Firms Use Labor Spies, La Follette Probers Report age,” but said the committee “can scarcely receive these announcements of renunciation at face value.” Chairman La Folleite said the committee Was “preparing appropriate | legislation” intended to safeguard “genuine collective bargaining,” which the report said “will never be realized until the industrial spy is abolished.” The committee reported that Gen- eral Motors Corp. “paid $994,855 to de- tective agencies for spy services” from | January, 1934, through July, 1936, and at the time had “a weird frame- work of spies among spies” to check on each other. “Most illuminating story,” the com- mittee said, was “use of Pinkerton spies to spy on Assistant Secretary of Labor Edward F. McGrady” when Mr. McGrady, who since has left Gov- ernment service, visited Toledo, Ohio, in 1935 “to conciliate a serious strike in the Chevrolet plant of the Gen- eral Motors Corp.” The committee said later reports would reveal its findings on “indus- trial munitioning, strikebreaking and coercion and Harlan County.” It announced hearings early next year on a “study of employer asso- ciations and vigilante groups.” TELEGRAPH FIRMS 10 ASK RATE RISE Increasing Costs and Drop in Revenues Are Cited by Companies. The Postal Telegraph Co. and the Western Union Telegraph Co. today announced their intention of jointly applying to the Federal Communica- tions Commission for a 15 per cent in- crease in rates. If granted, the increase would be the first in 30 years’ of operation, with the exception of the World War pe- riod, when the Government was in charge of the telegraph companies. Although the proposed new rate schedule has not been made public, it was reported the increase would apply generally to various classes of com- mercial and public messages, but not to the press rate. Describing the position of the tele- graph industry in the public service field as “unique in that it does not assess a stand-by charge but must rely for its income wholly on what is paid for each item of service per- formed,” a joint statement read: “By progressive methods and a con- tinued series of improvements and new developments in plant and operating processes, it (the industry) has met all the increasing costs arising during the past three decades, but has actually anniversary. Summary of Page. usements. C-8 Christmas Story Comics . Editorials -----C-1-2 ‘Woman’s Pg. B-13 FOREIGN. Loyalists battering Teruel's defenders in raging battle. Page A-5 Three Chinese coastal cities fear fate of fallen Nanking. Page A-4 Probe reveals Panay guns were not fired at Japanese troops. Fage A-5 Total of 12,168 Haitians reported killed. Page A-8 .| Warmer weather predicted for first Page (See RATES, Page A-4.) Today's Star day of winter. A-2 Garnett will use wire-tapping evi- dence. Page A-4 Cole will fight for an income tax in D. C. Page B-1 Bowers reported seen here frequently, but trail cools. Page B-1 Hospital expert “amased” by D. C. death rate. Page B-1 D. C. officials push work on tax program. Page B-1 Lawyer, two bondsmen up on “unethi- cal conduct” charges. Page B-1 District’s traffic toll rises to 100 for year. Page B-6 EDITORIAL AND COMMENT. NATIONAL. Telegraph companies to ask 15 per cent rate boost. Page A-1 John L. Lewis confers with C. I. O. Union representatives. Page A-1 Training given as reason for shift of U. §. naval vessels. '1:;“ A-; Roosevelt resumes talks PmmA“-l Four Cleveland labor leaders plead in- nocent to racket charge. Page A-2 It wasn't the skit, it was Mae West, says N. B. C. official. Page A-16 WASHINGTON AND NEARBY. Christmas gift collections heavy in U. 8: buildings. Page A-1 naps two men. War Department worried gver soldiers in Ohina, A-1 Editorials. ‘This and That. Answers to Questions. PRESIDENT MEETS POWER MEN AGAIN Phillips and Taylor Bid to White House as Utility Parleys Continue. By the Associated Press. President Roosevelt today resumed his eflorts to stimulate an early re- vival of utilities construction through peace talks with power company ex-| ecutives. Invited to the White House were Frank R. Phillips, president of the Dugquesne Light Co. of Pittsburgh, and William H. Taylor, president of the Philadelphia Electric Co. The conferences were the first sched- uled since Wendell L. Willkie, presi- dent of the Commonwealth & South- ern Corp., and Floyd L. Carlisle, chair- man of Consolidated Edison and Niag- ara Hudson Power Co., called on the President a month ago. The administration official said he understood_the series of talks would continue until Mr. Roosevelt had con- ferred with executives from all sec- tions of the country. It is his under- standing, this official said, that the President wants to get a “fair cross- section” of opinion from the industry’s leadership. Mr. Roosevelt’s talks with Mr. Will- kie and Mr. Carlisle outlined the issues to be settled in further meetings, On the administration’s side these in- cludeq general application of the “pru- dent investment” theory in deter- mining power rates, elimination of write-ups in property valuations and resumption of construction on a broad scale. Mr. Willkie told the President that investors lacked confidence in the in- dustry. To restore this he proposed modification of the Utilities Holding Company Act, a compromise on dis- tribution of Tennessee Valley Author- ity power and an agreement to submit to the Federal Power Commission dis- putes between Federal agencies and power companies. Christmas Gift BANDT ABANDONS PARONHHWAY Lone Robber Kidnaps Two After Robbing Cash Register of $50. Two men, a Washington taxicab | driver and a College Park filling sta- tion attendant, kidnaped by a lone bandit early last night, today were found stranded on the highway sev- eral miles above Richmond, according to a report received here. H. H. Follin, owner of the filling station on the Baltimore boulevard at College Park, said he was told by Richmond police that Thomas A. Hanes, 25, his employe, and Walter Lox, 32, a Washington cab driver, were safe and are being brought back to the District. According to the story told to Rich- mond authorities by the two men, | the lone bandit hailed Lox's cab in ‘Washington and ordered him to drive to the filling station. When young Hanes started to put gasoline in the cab the bandit then held him up and forced him and Lox into an automo- bile parked at the filling station. Mr. Hanes was compelled to drive toward ‘Washington. The cab was left parked across the driveway of the station. Doing Christmas Shopping. At the time he was held up in Wash- ington, Mr. Lox was doing Christ- mas shopping and the bandit left sev- eral presents which the driver had bought for his wife, seriously ill in Garfield Hospital for several days, and his 2-year-old son, in the taxicab. Mr. Lox had planned to bring his wife home in time for Christmas. The son is being kept in a nursery during his mother’s illness. Mr. Follin said he was told by the Richmond police that dumped Mr. Hanes and Mr. Lox out of the automobile 10 miles above Richmond, but police did not give the exact location. The hold-up man took the automobile, which belonged to Harold Thompson of Edmonston, Md., Hanes’' brother-in-law, and for which a police lookout had been broadcast. Called on Wife. Mr. Hanes, who came to College Park about three months ago from Knoxville, Md., lived with Thompson at Edmonston. Lox lives at 26 Rhode Island avenue N.W. in Washington. Mr. J. E. Kemp, from whom Lox rents an apartment, said the cab driver came home about 2:45 p.m. yesterday, but soon left, saying he was going to the hospital to see his wife, He returned home, Mrs. Kemp said, at about 5 p.m. and went out again soon after to do some Christ- mas shopping. It was learned by The Star that Mr. Lox had called on his wife be- tween 3 and 4 o'clock yesterday and saw her again from 7 until 8 o'clock last night. Mr. Follin said he left his station at 8:30 pm. and returned at 10:30 pm. and found the filling station open, the cab across the driveway and the cash register rified. He was told by the Richmond police today that the hold-up took place at 8:55 pm. About $50 was stolen, A few minutes before Mr. Lox was hailed by the bandit the cab driver had been talking to Charles A. Cruze, trafic manager of the Bell Cab Co., in front of the Roosevelt Hotel in Washington. Collections . Heavy m Federal Buildings ‘Turkey money and toys are easier to collect than taxes, it was being discovered today by all branches of the Federal Government, sllied ‘with The Star-Warner Bros-N. B. C. Christmas Campaign; as donations. accumulated at collection centers in Pederal buildings all over town, and the Metropolitan Police stood by at the National Guard Armory to receive ‘what it takes to make Christmas bas- kets—food and cash. Ninety women employes of the Home guessing contest and chances were selling at 1 cent each on homemade jam and cookies to raise cash for shoes. Footwear, it seems, is the despair of all charitable agencies—there is never enough to meet emergency demands. Fifty begs of meal, ground in his own mill in Virginia, were donated by B. B. Balley of the legal depart~ ment. Toys, new and used, have been left at the collection center and H. O. L. C. employes are urged to make their contributions now so that handling will be easier. Christmas trees have been placed in the lobbies of the following divisions of the Department of Justice: Ad- ministrative, anti-trust, claims, crimi- nal, lands, Bureau of Prisons and (See OMFN. Page A-3) the bandit | TWO CENTS. RUSH HOUSING BILL AS ADIOURNMENT TODAY 1S POSSIBLE House Recesses for Two Hours —Senate Opens Debate on Measure. WAGNER HAILS PLAN AS HELPING BUSINESS Placing Ceiling on Power of Presi- dent to Increase Mortgage Sum Decided Upon. BACKGROUND— Alarmed at sudden downturn of business during last half of year, President suggested in special mes- sage to Congress that ways be sought to stimulate private build- ing of homes. Acting with greater speed than on other major issues of session, Houge and Senate commit- tees quickly drafted housing bills. Former was enacted last Saturday and Senate is expected to foliow suit before adjournment on Thurs- day; differences to be reconciled conference. BULLETIN. ‘The House recessed for two hours today after Majority Leader Ra: burn announced the special sessi of Congress might adjourn lat this afternoon. By J. A. O'LEARY. The pending housing bill provides all that should be required “to facili~ tate a large flow of private capital into the field of residential construction for rental or home ownership,” Sen- ator Wagner, Democrat, of New York told the Senate today as it began de- bate on the measure Senate leaders will try to pass the bill before evening in the hope con- ferees may be able to adjust the se- ries of major changes made in the House measure before the special ses- sion closes tomorrow or Thursday. At the outset, Senator Borah, Re- publican, wanted to know if the com- mittee obtained any data on the num- ber of vacant houses now available throughout the country. Senator Wagner said that question was ngt gone into directly, but that indirectly it was shown a ‘“tremen- dous deficit” in residential facilities has accumulated during the last seven years, with accompanying unemploy- | ment. | Cites Drop in Building. “Of course, we need more houses in which people could live,” replied Senator Borah, “but would they oc- cupy them when reports indicate vacant houses all over the country?” To show the accumulated need, Senator Wagner said that between 1923 and 1930 an average of more than 700,000 housing units were con- structed annually. From 1930 to date, he added, the annual average has been 180,000. Emphasizing that the bill is de- signed to attract private capital into the home construction field, the New Yorker said he firmly believes “it will go a long way toward solving our unemployment problem and enable us | to achieve that lasting recovery toward which we have been bending all efforts.” Major Changes Made. Several major changes from the House plan were made by the Bank- | ing Committee before reporting the bill late yesterday. There are no in- | dications of a protracted fight, how- ever, and leaders will make an effort | to obtain a conference agreement and send the measure to the White House before they pack their bags to go home for Christmas. In order to hasten consideration of the bill, Majority Leader Barkley made an agreement which forecast trouble for the regular 1938 session. He consented to making the contro- versial anti-lynching bill a special order of business for January 6, three days after Congress reconvenes. Bar Modernization Loans. Important changes made in the housing bill by the Senate committee include: Elimination of the sections that would have revived Federal Housing Administration insurance on repair and modernization loans, which ex- pired last April. Placing of a ceiling on the discre- tionary power of the President to in- crease the present $2,000,000,000 limit on the aggregate outstanding principal obligation of all mortgages insured by the Federal Housing Administration. The House bill contained no limit on the discretionary increase. The Sen- ate committee authorized a possible $1,000,000,000 additional. One of the main features of the bill is to allow F. H. A. to insure up to 90 per cent of the value of $6,000 homes, and on homes costing not more than $10,000 to insure 90 per cent of the first $6,000 of value and 80 per cent of the remaining value. Amortization Plan. It was first proposed to require amortization of these individual home mortgages in 20 years. The Senate committee provided that on such mortgages approved up to July 1, 1939, the administrator may grant 25 years for amortization, in order to re- duce monthly payments with a view to encouraging home ownership. The Senate committee also pro- vided, however, that such mortgages may be insured, without the 25-year privilege, until July 1, 1942. [* Another important difference be- tween the two bills relates to the scope of activity of proposed national mort- gage associations, creation of which the bill seeks to encourage. The House provided such associations could issue debentures up to 20 times their paid- in capital. The Senate bill cut this ratio down to 15 times the capital. ‘While the bill seeks to encourage creation of these associations by pri- vate capital to make funds available for home construction, the President’s recent message to Congress suggested the Reconstruction Finance Corp. might invest $50,000,000 in such asso~