The evening world. Newspaper, December 1, 1921, Page 1

b 4 s) , J ti n= i iti cieielian — ” To-Night’s Weather-—CLOUDY; eyENING WORLD ATEST EXTRA WARMER, The “Circulation Books Open to All, ‘Circulation Books Open to All.” JON PATEY ene _ es : ial VOL. LXII. NO. 21,910—DAILY. by Press Copyright (New York Publiohing Com; NEW YORK, THURSDAY, DECEMBER 1, 1921. Katered as Second-Ciaes Matter Post Office, New York, N. ¥. BELMONT SAYS TRANSACTIONS | WITH LR. T. ARE AN OPEN BOOK Counsel for Directors Declares Signing of Immunity Waiver Would Be Tacit Admissior | of Being Criminal. Six of the Seven Subpoenaéd Appear at Hearing—Further Action as to Testimony De- layed—Nicoll Hears of Re- ceivership Move. Six of the seven directors of the Interborough Rapid Transit Co ap- Peared before the Transit Commis- sion im the inquiry into the affairs of the transit corporation to-day and, through counsel, refused to sign waiv-rs of immunity. After August Belmont had personally refused to sign a waiver, Chairman McAnenv of the Transit Commission announced that in view of the developments no further questions would be asked. The Interborough directors were al- lowed to depart and the hearing con- tinued with Horace M. Fisher, Secre- tary of the Interborough, on the stand. While Mr. Belmont was on the wit- ness stand, Delancey Nicoll, who had Just recelved a message, announced that Clarence Venner, who is trying to throw the Interborough into a re- oeivership, had instituted @ court action to that end, and he would have to withdraw from the proceedings in order to concentrate his attention on the new angle. John G. Milburn, who took up the legal battle for the direc- tors, then announced that he had ad- vised them to refuse to sign immunity ‘waivers, and suggested that the com- pilssion take an adjournment and con sider, for a few days, the advisa- bility of allowing the Interborough LAW ON DIVIDEND PAYMENT OUT OF THE SURPLUS ONLY, Misdemeanor to Pay to Stockholders Any Part of Capital Stock Without Consent of Legislature. Seution No. 594, Chapter No. 11, of the Penal Code provides: A director of a stock corporation who concurs in any vote or ect of the directors of such corporation, or ahy of them, by which it Is intended: 1—To make @ dividend except from the surplus profits arising from the bysiness of the corporation and in the cases and manner al- lowed by law: or, 2—To divide, withdraw or in any manner pay to the stookholders or any of them any part of the capital stook of the corporation; or to reduce such capital stock without the consent of the Legislature; &c., 8 GUILTY OF A MISDEMEANOR. Clarence J. ¥ -™ counsel to the Transit Commission, by questions put to and ang ceived from Chief Auditor Gaynor and Presideat Hedley of the Interborough established: i That dividends were made from funds other than surplus profits arising from the business of the corporation. That dividends were paid out of the capital stock. hat, by manipulation, the capital stock was reduced without the consent of the Legislature. It is @ question if the Statute of Limitations has not intervened to protect the directors of the Interhorough. On Jan 2, 1919, s°yy voted ® dividend which was not warranted by profits. In mi: cases the Statute of Limitations runs only two years, so that, qing this ‘transaction by itself, liability expired on Jan. 2 of this year. However, in view of the fact that the last statement of the Interbor- ough, if it were prepared according to the true state of the finances of the ¢o=poration, would show @ deficit, some lawyers beliéve that the con- tention could be set up that the alleged illegal acts of the Interborough can be held to be continuing—that is, such acts might be construed to be repetitions on each occasion when statements were issued which 41d not show the true financial state of the company. Statements of. this kind and reports of this character have been made within two years. ————— eee BOTTOM DROPPED ARBUCKLE CHEERY, or US DESTROVER "MAY TAKE MORSE -—OFFLINERPARS | Department of Justice Under- stood to Have Asked Navy | to Send Warship, NOW NEARING HAVRE. Shipping Man Ordered Held Aboard Ship by Radio, It Is Said. WASHINGTON, Dec. 1.—The De- partment of Justice was understood to-day to have asked the Navy De- |partment to send a destroyer to in- tercept the French liner Paris and bring back Charles W. Morse of New York, who is reported to have left the country tn the face of a Grand Jury investigation of his ship contracts, It was understwod that a destroyer would put to sea from a French port within a few hours to intercept the Parts, which left New York last Fri- day. While neither Attorney Genera! Daugherty nor other Justice Depart- ment high officials would discuss the reported departure, it was loarned thet every agency of the government would be vse@ im effecting his re- turm to this country. The department's request for as- sistance from the Navy Department was understood to be on the theory that the legal questions involved in the return of Morse ‘would ho thrashed out when he was brought back. Immediately upon recelyt of the report tha: Morse had left the coun- try, the department was understood to have radioed the linur Paris to hold Morse for return to America. While Justice Department officials SHIP PROMOTER DESTROYER MAY TAKE OFF LINER CHARLES W MORSE LANOR, SMILING, HEARS SENTENCE WANTS NO MERCY “Been a Great Show,” He Says —Consoles ,Lawyer Who Lost Hard Fight. VERSAILLES, Dec. 1 (by the As- sociated Press).—Henri Desire Lan- dru, “the Bivebeard of Gambaisa” smiled last night for the first time since his trial opened, A flickering HITCH WITH SPAN SOVERULS. FORT N THE PABA Cavite and Guam, Not 5-5-3 Ratio, Cause of Delay on Navy Plan. WANT NO MORE BASES. Nippon Also Seeks Ending of Work on American Forti- fications in Far East. By David Lawrence. (Special Correspondent of The Eve- ning World.) WASHINGTON, Dec, 1 (Copyright, 1921).—What's behind the Japanese reluctance to accept the American figures fixing the ratio of present strength on a basis of 6 for Great Britain, 6 for the United States and 3 for the Japanese? The Evening World correspondent nas had an opportunity to examine the official correspondence passing |v ween Japan and the United States in the secret sessions wherein the American Navy explains in detail the method by which the 5-5-8 ratio was navi ‘The formula used takes account, first, of the Japanese estimate of her own strength based upon the tonnage fig- ures she herself furnished, and also takes inte account every contention made by the Japanese and works out finally to » 5-5-8 every time. It Is a plain piece of arithmetic and the quandery of al) whe have had a chance to learn how the American Programme was worked out is what possible objection the Japanese have to ite acceptance ‘The conclusion being ganorally reached. party from things the Japan- fixed. It in an oper and shutyeaser +1. R.T. DIRECTORS STAND FIRM; WON'T WAIVE IMMUNITY FIRST CLASH TO RENEW WAR, BOTH BRITISH AND SINN FEIN’ FEAR, AS PEACE MOVES FAIL at Any Momen ‘bloodshed in Ireland stares the Briti of the virtual collapse of the peace CLUBBER TIGHE LEAVES FOR PRISON “I've Felt Much Better Than I Feel Now,” He Declares-Gloomily on Departure, Former Policeman Charlas Tighe started for, Sing Sing to-day to begin y ventence of from two and « bulf ue lve years for beating Mrs. Omma Lennon of No, 261 Weut 50th Nt.eet tn the course of a clubbing rampage un whieh he went during « ratd on che. restaurant of Patrick Coon ut No. 600 Ninth Avenue, July 8 last. Tighe was taken to Police Headquarters from the Tombs, where be has been since bir conviction on Oct 7 except for a few weeks spent at Bellevue under under a truce for the last five months. ee ers ee Only Spark Needed to End Truce, a t, Chiefs Believe, Though Lloyd George Strives for — Way Out Not Yet Discovered. LONDON, Dec. 1 (Associated Press).—The spectre of renewed ish Isles in the face in sonsequenca® negotiations which have proceeded . As to how long the truce will last under present conditions there is n@ Indication The Stun Fel expressed the view that there be ne forma) denunciation of the by either sida and this jeads to belief that any spark of combet off In ireland with the peace Start tk conflagration anew. have been passed. over merely vause lope was stir? helé@ ous understanding, Now that chiy is thought te have passed, further acts of the kind are fraught with uuxneen- possibilities, and if the negotiadons: are formally broken off they will im: evitably lead fo general strife. The Government heads are thelr entire efforts to poder some avenue of negotiation yet unexplored, treatment for the effects of alcohol- tam Hiv motion for a writ of error on whiok te base an appeal wae do- nied by Justior Mullan Tuesday. While he was waiting te be finger- printed with four other man who were but it is believed all possibilities of settlement bi been exhausted @ Ing the lengthy parieys which Pe now to have ended. Tho Sinn Fein has stood firm om if demend for ap All-Ireland a @ je * a 44 eer i; Ae Lee a ment apparentl: deadlocked might Recent outbreaks it {8 ported out, pe i ee ee ee a oe ee ee ree ne heads to testify without waiving their rights as to immunity, The of the directors followed this sug-! FROM SHIP BUT MR, BELMONT ONLY WITN HIS FOES DOUBTFUL would not disouss the suiling of Morse, there were indications that the full faculties of the department were be- ing brought to bear upon his capture. expression of amusement crossed his} oge themselves are saying and party face as he listened to the fateful from the hinte they let fal! in the words from Judge ‘Gilbert sending |#9cret sessions, ix that the Japanene him to the guillotine for a series of [7 Setting ready to agree absolutely Duing taken to Sing Sing. Tighe sent as tle basis of settlement, at the for several of his former acquaint- time refusing to concede allegiance ances in Police Headquartera and the Britisn Crown, Ulster hae talked with thom gloomily. They fuse¢ point-@lank to scrap her found nothing of the daredevil: Parliament to enter an All- gestion, } Ess ON THE STAND. { Clarence J. Shearn, counsel to the! commission, in speaking to Mr. Bel- | mont, the first and only director wit- ness called, referred to “criminal as well as civil Mability” for certain acts of the directors, such as paying dividends which were \\\ot earned. later on Mr, Milburn }'4d that if Mr. Belmont or any other director signed a waiver of immunity” he would by that act tacitly admit him- self a criminal. While it would appear that the di- rectors of the Interborough violated the corporation laws as set forth io the Penal Coda, the offense 1s charac- terized as a misdemeanor, The last allegedly illegal act was the declara- tion of @ dividend on Jan. 2, 1919— thirty-five months ago Under the law directors of corporations accused of violations of the iaw amounting to misdemeanors are immune ff prosecu- tion is not begun before two years from the date of the ailegedly illegal SHE MAKES PRT Crew Start to Pump Out the Hold, but Find They were Pumping the Ocean. A ship without a bottom came into this port to-day—the Standard i! tanker F. D. Asche, 8,294 gross tons, with Capt. McKenzie and a crew of twenty. With nothing but the ocean where her bottom should have been, she came all the way from tho Bahamas, On Oct. 20 the tanker left here in ballast for Texas City. A hurricane hit her and on Oct. 26 ghe was driven scraping across Stranger Reef. The storm washed her a mile farther in to Manatilla Reef, and there she !sy act. ou Six solemn looking commanders in chief of finance filed imo the hearing while the crew pumped. ‘The pumps worked ali right, but SAILED SECRETLY AS “C. MORRIS” ON PARIS LAST WEEK AS CASE NEARS END Verdict Is Likély To-Morrow, as Only Two Witnesses Are Yet to Testify, | Departure Escaped Notes in Ex: citement of Briand Farewells. Charles W. Morse, it was definitely learned this. morning, sailed fur the trial of Roscoe (Fatty) Arbuckle|srance on Friday last on the steam- was resumed to-day in what wil!|ship Paria of the French Line. He probably be the last day of taking| booked passage through a clerk who did not know him, three days before of evidence, Counsel for both sider) waiing, giving “hig name as C. have agreed upon four hours each! sorts Asked for his address, he for argument and the case will likely | replied he preferred for personal rea- reach the jury to-morrow. A report/ sons not give it. He selected state of a medical board: appointed to de-|'oom No. 239. At the pier on the day of sailing termine whether Miss Virginia Rappe Joseph Bourgeols, publicity man of the was suffering from an organic weak-|}ine, was verifying passports when ness that may have caused her death| Morse came along. He looked at the was to be the principal cvidence| passport and said: to-day. “You are Mr. Morse, the shipping Arbuckle's lawyers expressed per-| man, aren't you?” SAN FRANCISCO, Dec. 1—With only two more witnesses to be called, the American estimate of existing the most heinous crimes in the his-|naval strength. but are planning to condition their acceptance upon an- other agreement with respect to fort!- fications and naval bases in the Pa- cific. This question had heretofore not been raised by the Japanese in the officia] conferences, though in the meetings with the press the Japanese delegates have emphasized the im- portance of fortifications. The American delegation doesn't fear the Introduction of the fortifi- cation problem, though of course It tory of French jurisprudence. “Thank you, gentlemen!” sald Lan- dru, flourishing his weather beaten bat in a mocking bow to the jury, and he disappeared through the litte door leading to the Vorsailies jatl. While the verdict was awnited, the slayer of ten women and a boy spoke words of encouragement to his coua- sel, M. Moro-Glafferi, who, tired and worn out after his strenuous efforts to save his client from death, was on the verge of collapse. "Strange it is thit a man standing In tho shadow of death should console his defender,” Landru remarked at one timo to those altting nearby. He refused to be a party to a pe- tition asking President Millerand to commute the sentence to life impris- onment, which was signed, among others, by the jurors, “I refuse to ask for mercy,” he told the latter, “A man like me wants justice, not mercy, You think I am guilty; then |let me die!” Mis remarks after reaching the cell of the Transit Commission at |‘? quantity of water in the hold did 4 ck. el G. Reid F. not diminish. Soon the men learned o'clock, Dani Gn4'.F. | nat instead of gumping out the hold they were trying to pump out the whole ocean, a discouraging tash. Thus they learned that the bottom was gone. The wireless brought two wreck- ing tugs of the Merritt-Chapman Company. What they did was to put a lot of tanks in the hoid and then pack them full of compressed air, The ship floated off and they towed her to New York. It is said that this is the first Lime a ship ever came into port without a bottom. Capt. McKenzie said the (Continued on Second Page.) Sunday World Classified Advertisements Should Be in The World Office reason she didn't go to pieces on the courtroom with two of his lawyers, "Goin’ home to-night, Roscoe?" shouted a friend, “Yep, come on up,” answered the rotund comedian. “If Arbuckle goes free it will be proof that jails are built for the poor,” District “Attorney Matthew Brady declared to-dey. “If this man was a poor man he would go to jall, but he is ‘Fatty’ Arbuokle, backed by his own money and all the money of the motion picture industry. “Everywhere we have turned in this case we have hit a stone wall, and it fect confidence in the vutoome of the| “Yes, yes,” was the reply. Morse,|Were also characteristic of this case, So did Arbuckle. He engaged|according to Bourgeols, was very ESAS Shasasies, ue renee in a smiling conference outside the| nervous. whose gruesome deede as unfo! in the dingy Versailles ' court room has drawn the attention of all France (Continued on Second Page.) HARDING MAY ASK TARIFF POWERS Later when checking up the pas- senger list with the clerk who at- tended to the baggage, Burgevis says he failed to see the name of Morse and asked about it, The clerk said he had no Morse on his list. where- upon Bourgeois suid: “[ have just been talking to him| and verified b!s passport and he is aboard* Later on Briand céme down and | in the excitement the publicity man| : says the whole incident passed from | ‘Relief Measure. hie mind | WASHINGTON, Dec, 1.—President At Morse’s home, No. 255 West! Harding may shortly ask Congress to President Is Considering Plan to Revise Rates Himself as 84th Street, it was slated he is still | authorize him to revise tariff rates by | On or Before Friday Order Sunday World Classified Advertising ‘To-Day. “The World reefs was that she was built on what he cailed the “longitudinal system,” invented by Sir Joseph Isherwood, the, beams running lengthways of the ship instead of aeross, 4X) pen day and ‘obeoks for has certainly taken the heart out of me,” he de in the city and will likely be at his sn EELS office, No. 800 Madison Avenue, MAY OPERATE ON ACTOR WILSON, to-day. CINCINNATI, Dec. 1,—Francia Wil- Announcement was made Tucsday For ee ee econ nna Hospital| ot in Washington that the Federul | trouble developed, It Is sald. An oper-|Grand Jury would be asked to in- Yailon may be nece: A. scnooy| vestigate ship contracts entered into ‘oan filling Mr, Wilson's role in|dutlag the war by Morse and che _ ty thie oliy thle Week Government jexecutive order as an emergency re- | lef measure for American business. | Mr, Harding is considering this in connection with his message to Con- gresy next Tuesday. The message Hi deal emphatically with the need for immediate tarift legislation to pull ‘ames ness oul of its present dupressiva. a (Continued on Second Page.) Mother Must Quit Smoking Or Lose Child Judge Makes Girl’s Custody Dependent on ‘“Uncontam- inated Atmosphere.” NEW HAVEN, Dec. 1.—Mrsa Ade- line Palmer Lee, who is suing Dr. Harry M. Lee, surgeon at the Me- morial Hospital, New London, for di- vorce, must give up amoking of cigar- ettes If she is to retain custody of her six-year-old daughter, according to a decision of Judge Allyn L. Brown in the Superior Court, At the hearing on the matter of custody it was charged that Mrs. Lee smoked between 400 and 500 cigar- ettes weekly, She admitted that she used cigarettes, whereupon Judge Brown ordered that so long as she had the child she should refrain (rom cigarettes, Judge Brown does not attempt to deal with the ethics of cigarette smoking. He says: “Whatever may be the correct | standard for the individual as to the juse of cigarettes, expert testimony jin this hearing bas demonstrated what common sense affirms—-that 4 child of the age of his one will ‘are better If brought up |p an atmosphere uncontaminate¢ by smoke from oigareties.” swashbuckler about him. To report- have felt much ora he said only: better than I feel no gaatlelssis ES BANDITS ROB MINE OF $60,000 IN GOLD, Men Armed With Sawed Off Shot- guns Hold Up the Argonaut in California, SACRAMENTO, Dec. 1.—Gold tbul- lion to the amount of $60,020 was ob- tained by bandits, armed with sawed of abotguns, who held up the Argonaut mine at Jackson, Amador! County, last Aight, according to al report to the Sacramento Police De-! partment to-day, 1 niece | DESTROYER AGROUND NEAR SAN FRANCISCO to Stra Ship—Crew Reported Safe. 2@2N FRANCISCO, Dec. 1.—The United States destroyer De Long went aground to-day ten miles south of San Francisco, according to a wireleas ro- ceived here. The crew ts reported safe The De Long ran ashore on a rocky coast during @ heavy fog. The tug Fearless and Coast Guard cutters fro the Golden Gate and Fort Point Sta- i to give assistance. The weather continued thick and the swell heavy. NEW CORSET O. K.; BRACES FIGURE, SAYS COPELAND Ald Sent The Slight Waist Line Also Lends. \tness to the Wearer. “The present style corset, if prop- erly fitted, 18 a distinct benefit to tho health of @ woman." Dr, Royal 8. Copeland, Health Commissioner of New York, declared here to-day. “The new corset serves as a brace for ‘he wearer and at the same cme gives i slight waist tine, which lends amartnesr to the figure,” Dr. Cape- fend eald. * | South. Legislature “under present ttone” on the ground that she thereby come ctreotly under the trol of the numerically superio® The latest plan, that for an ane Ireland Parliament under which Ul- wter could retain her existing ‘Tighter until, or unless, she changed mind, bas fallen to the ground the formal statement by the Fein delegation bere that !t canasot Be considered. As a result, in both Government Irish circles the opinion is exp 4 that nothing shor} of a miracle cam avert complete collapse of the negos tiations and resumption of the ware fare in Ireland. * Preservation of the truce, whats ever may happen to the peace negow tiations, is being urged by a consid= erable section of the British press (t is suggested that this be achieved, through adjournment of the confers, ence to a fixed date a month or six, weeks hence. i The Sinn Fein publicity department ” here reiterated this forenoon that it expected further meetings between? the Government and the Sinn Fein delegates, and it is believed arrange+ ments regarding the truce will be eom< sidered at the next meeting. } The original truce terms provi no plan\ for its cessation, and it i felt, it is said, that even if it develops, that hostilities must be renewed pro=_ vision should be made fixing a defi<) nite date for abandonment of the, pact instead of letting the truce Qreaite down without notice, which has beem” considered in many quarters the” probable outcome. e SINN FEIN READY | TO RENEW FIGHT, ~ DE VALERA WARNS “We Cannot Go Any Further,"” Says Leader, Blaming Others © if Peace Fails. ENNIS, Ireland, Deo, 1—In am dress delivered here yesterday at me eal Co =