BRITISH CffrffS STRIVINu
7 -W ' . mil' IKlWwF 1
.To-Nlght'. Weather CLOUDY) WARMER.
Ts-MsmWs W.sth.r PROBABLY RAIN.
"Circulation Books Open to AIL"
"Circulation Books Open to All."
VOL. LXII. NO. 21,910 DAILY. rwMIX SSi
NEW YORK, THURSDAY, DECEMBER 1, 1921.
Knlrrrd aa Seenul-ClMi Matter
roet Office, New Tork, N. T.
PRICE THREE 0ENT8
1 ' l
I. R. T.
BELMONT SAYS TRANSACTIONS
WITH I. R.
Counsel for Directors Declares
Signing of Immunity Waiver
Would Be Tacit Admissior
of Being Criminal.
Six of the Seven Subpoenaed
Appear at Hearing Further
Action as to Testimony De
layed Nicoll Hears of Re
Six of the seven directors of ths
Interborough Rapid Tiaosit Co ap
peared before the Transit Commis
sion In the Inquiry into the affairs
of the transit corporation to-day and,
through counsel, refused to sign
walv-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 Intcrborough directors were al
lowed to depart and the hearing con
tinued with. Horace M.,Flaher, Secre
tary of the Intcrborough. on the
While iMr. Belmont was on the wit
ness stand. Dolonc'ey Nicoll, who had
just received a message, announced
that Clarence Vcnner, who Is trying
to throw the Intcrborough Into a re
ceivership, had instituted a court
action to that end, and he would have
to (withdraw from the proceedings in
order to conoentrato his attention on
the new angle John G. Mllburn, who
took tip the legal battle for the direc
tors, then announced that he had ad
vised them to refuse to algn Immunity
'waivers, and suggested that the com
mission take an adjournment and con-
aider, Tor & lew days, me advisa
bility of allowing the Interborough
.heads to testify without waiving their
rights as to immunity. The dismissal
of the directors followed this sug
gestion. MR. BELMONT ONLY WITNESS
ON THE 8TAND. I
Claronce J. Shearn, counsel to the!
commission. In tipeaklng to Mr. Bel
mont, the first and only director wit
ness called, referred to "criminal as
well as civil liability" for certain
acts of the directors, such as paying
dividends which were :iot earned.
lAter on air. Mllburn id that if
Jlr. Belmont or any other director
signed a waiver of immunity ' he
would by that act tacitly admit him
self a crlmlnaL
While it would appear that the di
rectors of the Interborough violated
the corporation laws as set forth in
the Penal Code, the offense .Is charac
terized as a misdemeanor. The last
allegedly illegal act was the declara
tion of a dividend on Jan. 2, 1919
thlrty-flvo months ago Under the law
directors of corporations accused of
violations of the law amounting to
mlsdomoanors are immune If prosecu
tion is not begun before two years
from the date of the allegedly illegal
Six solemn looking commanders In
chief of finance filed into the hearing
room of the Transit Commission at
11- o'clock. Daniel O. Roid and F.
(Continued on Second Page.)
Should Be in
The World Office
On or Before Friday
Order Sunday Worjd
DIRECTORS STAND FIRM; WON'T WAIVE IMMUNITY
T. ARE AN OPEN BOOK
LAW ON DIVIDEND PAYMENT
OUT OF THE SURPLUS ONLY
Misdemeanor to Pay to Stockholders Any Part
. of Capital Stock Without Consent
Heutlon So. .594. Chapter No. 11, of the Penal Code provides:
A director of a stock corporation who concurs in any rote or act of
thu directors of suoh corporation, or any of thero,r by which it Is Intended :
1 To make a dividend except from the surplus profits arising
from the business of the corporation and in the cases and mannor al
lowed by law: or,
2 To divide, withdraw or in any manner pay to the stockholders
or any of them any part of tho capital stock of the corporation; or
to reduje suoh capital stock without the consent of the Legislature:
or, &c, IS GUILTY OF A MISDEMEANOR,
Clarence J. f . i counsel to the Transit Commission, by questions
put to and ans' '."'.l',ilved from Chief Auditor Onynor and President
Hedley of the Interborougn established:
That dividends were made from funds other than surplus profits
arising from Ihe business of the corporation.
That dividends were paid out of the capital stock.
That, by manipulation, the capital stock was reduced without the
consent of the Legislature.
It Is a question if the Statute of Limitations has not Intervened to
protect the directors of the Interborough. On Jan. 2, 11. Vy voted
a dividend which was not warranted by profits. In tntsdaml (ir cases
ths Statute of Limitations runs only two years, so tut, vt ing tha
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, It it were prepared according to the true state of the finances of
the corporation, would show a deficit, some lawyers believe that the con
tention could ibe set up that the alleged Illegal acts of the Interborough
can bo held to be continuing that
be repetitions on each occasion when statements were issued which did
not show the true financial state of tho company. Statements of . this
kind and reports of tEio Character have been made within two years.
SHE MAKES PORT
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 tho Standard Oil
tanker F. D. Asche, 8,294 gross tons,
with Capt. McKenzle and a crew of
twenty. With nothing but the ocean
where her bottom 'should have been,
she came all the way from tho
On Oct. 20 the tanker left here in
ballast for Texas City. A hurricane
hit her and on Oct. 26 she was driven
scraping across Stranger Reef. The
storm washed her a mile farther in
to Manatlila Reef, and there she !sy
while the crew pumped.
The pumps' worked all right, but
tho quantity of water In the hold did
not diminish. Soon tho men learned
that instead of pumping out the hold
they were trying to pump out tho
whole ocean, a discouraging task.
Thus they learned that tho bottom
The wireless brought two wreck
ing tugs of the Merritt-Chapman
Company. What they did was to put
a lot of tanks In the hold and then
pook them full of compiCEsed air.
The ship floated off and thoy lowed
her to New York.
It is said that this is the first limo
a ship ever came into port without
a bottom. Capt. 'McKenzle said the
reason she didn't go to pieces on the
reefs was that she was built on what
he called the "longitudinal system,"
Invented by Sir Joseph Isherwood,
the. beams running lengthways of tho
ship Instead of across.
TIIE WORLD TRAVKI. DCIIEAV.
Arcatft. rulltser (World! Ilulldlnr. 5J.63 r-uk
Row. X. Y. City. T0:ionr Um!mmui ivuu.
Ohtok ran for btifife nd prnrl open Jj nd
ttljrht. Iwf 4m taU utnlltn' otc) (of
is, sucih acts might be construed to
HIS FOES DOUBTFUL
AS CASENEARS END
Verdict Is Likely To-Morrov,
as Only Jwo Witnesses
Are Yet to Testify.
SAN FRANCISCO, Dec. 1. With
only two more witnesses to be mllmi,
the trial of Roscoe (Fatty) Arbuckle
was resumed to-day in what will
probably be the last day of taking
of evidence. Counsel for both sides
have agreed upon four hours each
for argument and the case will likely
reach tho Jury tormorrow. A report
of a medical board' appointed to de
termine whether Miss Virginia Rappe
was suffering from an organic weak
ness that may have caused her death
was to be the principal evidence
Arbuckle's lawyers expressed per
fect confidence In the outcome of the
case. So did Arbuckle. He engaged
in a smiling conference outside the
courtroom with two of his lawyers.
'Goln' home to-night, Roscoe?"
shouted a friend,
"Yep, come on up," answered the
"If Arbuckle goes free It will be
proof that jails are built for the
poor," District " Attorney Matthew
Urady declared to-day. "If this man
was a poor man he would go to jail,
but ho is 'Fatty Arbuokle, backed by
bis own money and all the money of
tho motion picture Industry,
"Everywhere we have turned In this
cose we have hit a Btone wall, and It
has certainly taken the heart out of
me," he declared.
MAV (ITERATE OX ACTOnkviLMO.
CINCINNATI. Dec. 1. Francis Wil
son, actor, Is 111 at St John's Hojpttal
In St. Louis. 'He took cold and oladddtr
.trouble developed. It is said. An oper
ation may be necessary. A ' uu .or
Clarke Is filling Mr. Wilson's role in
"Vrmlnit" la tali city this wk.
U. S. DESTROYER
Department of Justice Under
stood to Have Asked Navy
to Send Warship.
NOW NEARING HAVRE.
Shipping Man Ordered Held
Aboard Ship by Radio, It
WASHINGTON, Dec. 1. The De
partment of Justice was understood
t6-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 In the face of a Grand Jury
Investigation of his ship contracts.
It was understood that a destroyer
would put to sea from a French port
within a few hours to Intercept tho
iparis, which left New York last Fri
While neither Attorney General
Daugberty nor other Justice Depart
ment high officials would discuss tho
reported departure, It was learned
that every agency of the government
would be used In erecting his re
turn to thus country.
The department's request for as
sistonce from the Navy Department
was understood to be on the theory
that the legal questions involved in
the return of Morse 1 would ho
thrashrd out when he was brought
Immediately upon receipt of the
report tha: IMorse had left the coun
try, the department was understood
to hove radioed the ltnur Paris to
hold Mors for return to America.
WWlo Justice Department official
would not dlsoubs the Mailing of Morse,
there were indications that the full
faculties of tho department were Do
ing brought to bear upon his capture
AS "C. MORRIS" ON
PARIS LAST WEEK
Departure Escaped Notice in Ex
citement of Rriand
Charles W. Morse, It was definitely
learned this morning, sailed fur
Franco on Friday last on tho steam
ship Paris of the French Line. Hu
booked passage through a clerk who
did not know htm, three days before
tho sailing, giving his. name as C
Morris Asked for his address, he
replied he preferred for personal rea
sons not give it. He selected state
room No. 239.
At the pier on the day of sailing
Joseph Bourgeois, publicity man of the
line, was verifying passports when
Morso came along. Ho looked at tho
passport and Bald:
"You aro Mr. Morse, the shipping
man, aren't you?"
''Yea, yes," was the reply. Morue,
according to Bourgeois, was very
Later when checking up the paa
sengcr list with the clerk who at
tended to the baggage, Burgeols 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 suld:
"I have just been talking to him
and verified bis passport and he Is
Later on Brland came down and
In the excitement the publicity man
says the whole incident passed from
At Morse's home, No. 255 West
84th Street, it was stated he Is still
In the city and will likely be at his
office, No, S00 Madlaon Avenue,
Announcement was made Tuesday
last In Washington that the Federal
Grand Jury would be asked In
vestigate ship contracts entered Into
duilng tho war by Morse and the
MAY TAKE MORS
OFF LINER PARIS
TAKE OFF LINER
CHARLES W MOUSE
"Been a Great Show," He Says
Lost Hard Fight.
VERSAILLES. Dec. 1 (by the As
sociated Press). Henri Desire Lan
dru, "the Bluebeard of Gambala"
smiled last night for the first time
since his trial opened. A flickering
expression of amusement crossed' his
face as he listened to the fateful
words from .Tudgo 'Gilbert sending
him to tho guillotine for a series of
tho most hnlnous crlmns In the his
tory of French jurisprudence.
"Thank you, gentlemen!" said Lan
dru. flourishing hut weathor beaten
hat in a mocking bow to the jury,
and ho disappeared through the UtUo
door leading to the Vorsalllcs jail.
While tho verdict was awaited, the
slayer of ten women and a boy spoke
words of encouragement to his coun
sel, M. Moro-Glaffert, who, tired and
worn out after his strenuous efforts
to save his client from death, was on
tho verge of collapse. "Strange it Is
thut a man standing In tho shudow
of death should console his defender,"
Landru remarked nt one tlmo to
those sjttlng nearby.
He .refused to be a party to a pe
tition asking President Mlllerand 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!"
His remarks after reaching the cell
wrrn also characterlstlp of this
strange character, the record of
whose gruesome deed as unfolded
tn tho dingy Versailles 1 court room
has drawn the attention of all France
(Continued on Second Page.)
HARDING MAY ASK
President Is Considering Plan
Revise Rates Himself as
WASHINGTON, Dec I. President
Harding may shoTtly ask Congress to
authorize him to revise tariff lates by
executive order as an emergency re
lief measure for American business.
Mr. Harding Is considering this in
connection with his message to Con
?reBM next Tuesday. The message
will -leal mphallcullv w'lli 'he need
for Immed'ate tariff legislation to pull
Amnican luisincbs out of Its present
BBSSSSSSBBSSSBH PsBSSsP' H
HITCH WITH JAPAN
S OVER U.S. FORTS
Cavite and Guam, Not 5-5-3
Ratio, Cause of Delay on
WANT NO MORE BASES.
Nippon Also Seeks Ending of
Work on American Forti
fications in Far East.
By David Lawrence.
(Sptcial Correspondent of Ths Eve
WASHINGTON, Doc. 1 (Copyright,
1921). What's behind the Japanese
reluctance to accept the American
figures fixing the ratio of present
naval strength on a basis of G for
Great Britain, 5 for tho United States
and 3 for the Japanese?
The Evening World correspondent
has had an opportunity to examine
the ofllcial correspondence passing
W ween Japan and the United Btntea
In the secret sessions wherein the
Amorican Navy explains in detail 0e
method' by which the 5-5-J ratio was
fixed. It Is an oner. and shut-teas
The formula used takes account, first,
of th Japanese estimate of her own
strength based upon tho tonnage fig
ures kIip herself furnished, and also
take Into account every contention
made by thr Japanese and works out
finally to p r.-5. very time. It Is a
plalr piece of arithmetic and tho
quandary of all wh have had n
chance to learn how the American
programme wo worked out Is what
possible objection the Japanese have
to lt acceptance
The conclusion being generally
readied, portv from things thf Japan
ese themselves are saying and party
from the hint they let faP In the
secret sessions. Is thnt the Japanese
ore getting ready to agree absolutely
to the American estimate of existing
naval strength, but are planning to
condition tbelr acceptance upon an
other agrcoment with respect to forti
fications and naval bases In the Pa
cific. This question has heretofore
not been raised by the Japanese In
the official conferences, though tn the
meotlngs with tho press the Japanese
delegates have emphasized tha Im
portance of fortifications.
The American delegation doesnt
fear the Introduction of the fortifi
cation problem, though of course it
(Continued on Second Page.)
Or Lose Child
Judge Makes Girl's Custody
Dependent on "Uncontam
NEW HAVEN. Dec. 1. Mm 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 smoking 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 600 cigar
ettes weekly. She admitted that she
used cigarettes, whereupon Judge
Brown ordered that so long as she
had the child she should refrain from
Judge Brown does not attempt to
deal with the ethics of cigarette
smoking. lie says:
"Whatever may be the correct
standard for tho individual as to the
use of cigarettes, 'expert testimony
In this huarlng has demonstrated
what common ienne irarms tnat
h Id -if no nil if hls -ne will 'are
better If brought up In an utmosphe-e
uncontamlnatec by smoke frcm
FIRST CLASH TO RENEW WAR, 1 4
BOTH BRITISH ID SINN FEIfH
FEAR, AS PEACE MOVES FAtl
Onlv Snark Needed tn End Truce
at Any Moment, Chiefs Believe,;
Though Lloyd George Strives fori
Way Out Not Yet Discovered.
LONDON, Dec. t (Associated Press). The spectre of renewed!
bloodshed in Ireland stares the British Isles in the face fti consequence
of Ihe virtual collapse of the peace negotiations which have proceeded-,
under a truce for the last five months.
LEAVES FOR PRISON
"I've Felt Much Better Than I Feel
Now," He Declares-Glooniily
Former Polioeman C"jarlu TlgSe
started fop 8!ng Ming to-day to begin
1 ventence of from two und half
U live years for beating Mrs. Emma
Lennon of No. 26! West 50th 8t.ctt In
tho course of a clubbing rampage ml
which he went during it mid on the
restaurant of Patrick Coon ut No. 600
Ninth Avonue. July 3 last. Tlgbe was
taken to Police Headquarters from
the Tombs, where he has been since
ble conviction on Oct 7 except for a
few weeks spent at Bellevuo under
treatment for the effects of alcohol
Ism HI motion for a writ of error
on whine to base an appeal wan do-
nled by Justlc Mullan Tuesday. , now to havo ended. i
While h was waiting to be finger-' Tho Sinn Fein has stood firm oa lbs'
printed with four othor men who were dnmand for an Atl-Ireland Parliament'
being taken to fling Sing. Tlghe sent as tl.e boats of settlement, at th sanM
foi several of his f armor acquaint- time refusing to concede aBeglanoe t
ances In Police Headquarters and the British Crown. Ulster hao re
talked with thorn gloomily. They fusee polnt-tlank to scrap her ewa
found nothing of the daredevil; Parliament to enter nn All-Ire load.' t
swashbuckler about him.
ors he said only: "I have felt much
better than I feel now,"
BANDITS ROB MINE
OF $60,000 IN GOLD
Men Armed With Sawed Off Shot
guns Hold Up the Argonaut
SACIIAMKNTO. Dee. l.-Gold bul
lion to the amount of 60,o:o was ob
tained by 'bandits, armed with sawed
off shotguns, who held up the
Argonaut mine nt Jackson, Amador
County, last night, according to a
report to the Sacramento Police De
NEAR SAN FRANCISCO
Aid Seal to Stranded Ship Crew
tie ported Safe.
CAN h-rtANCIBCO. Dec. 1. The
United Stiites destroyer De Long wnt
unround to-day ten mllei south of San
Francisco, according to a wlrstesa ro-ct-ivod
here. The crew Is reported safe.
The De tang ran ashore on a ucky
const during a heavy fog. The tug
ruirless and Coast Oun'il cutters from
Kin dolden Gate and Fort Point Sta
tion went to give assistance.
The wrathor continued thick and the
NEW CORSET O. K.;
The Slight Waist Line Also Lends
Itness to the
"The present style corset, If prop
erly fitted, is a distinct benefit to tho
health of a woman," Dr. Royal 8.
Copeland, Health Commissioner of
New York, declared here to-day.
"The new corset serves as a brace
for 'he Tearer nd t the same time
jWtn i llght waist :tne, vhloh lends
smartnesp to tht figure," Dr. Cope
Und said, . . ,
As to how lonr the truce will lost
under present conditions there is no) "
Indication Tbr Stun Folners tuurV
expressed thi vlow that ther woutejt
bo ne formal denunciation of the poetr!
bv either side, and this leads to tkr
nciier tnat nny spark or ximM aey
off In Ireland with the peace move
oent apparentl; - deadlocked mYsjM'
start Mm conflagration anew.
Iterent outbreaks jit Is pointed oitt
havo been passed, over rnerejy -fes-cause
hope was sti!? hJ out for M
understanding1. Now that t&sv Is
thought to have passed, further act
of the kind are fraught with uuiuwrr
possibilities, and If the negotladoasi
are formally broken off they will in-
ovltably lead fo general .strife.
Thu Government heads are bonajnjf,
their entire efforts to seetclnf some".,
avenue of negotiation yet unexplored,
but it is believed all possibilities oft
settlement have been exhausted dur-
Ing the lengthy parleys whluh seen4
Legislature "under present condt t
! tlonf" tin the ground that she wouIiL
thereby come directly under the von
trol of the numerically superior
South. 1 1
Tho latest plan, that for an All-?
IreKnd Parliament under which U1-.
ter could retain hur existing righteC
until, or unless, she changed hern
mind, ba fallen to the ground undeft
the formal statement by the 8lna,
Keln delegation here that it cannot b;
considered. ft -
As a result, In both Government aid!
Irish circles tho opinion is cxprcasesU
that nothing tthort of . miracle csur
avert complete collapse of tho uego.il
tlatlons and resumption- of the war -J
j fare In Ireland. if
i PrANAt-vnMnn nf the truce. wbatVt
ever may happen to the peace negoJ
tlatlons, is being urged by a consld-jh
orablp section of the British press
at Is suggested that this bo achieved,!
through adjournment of the confer-
price to a Axed date a month or elxi
weeks hence. ?
The 'Sinn Keln publicity department!
here reiterated this forenoon that It'
expected further meetings betweenj
the Government and the Sinn Fein9
delegates, and it is believed arrange 3
ments regarding the truce will be con-?
sidered at the next meeting. J
The original truce terms provldedL
no planV for Its cessation, and It IsT
felt, It Is said, that even if it develops,
that hostilities must be renewed pro-? -
vision should b made tlxicf a defl-i
nltc date for abandonment of the,
pact Instead of letting the truce brook
down without notice, which has been'
considered In many quarters tha
SINN FEIN READY ;
TO RENEW FIGHT, v
DE VALERA WARNS'
"We Cannot Go Any HircDer
Says Leader, Blaming Others
if Peace Falls. ' ,.
ENNtS, Ireland. Dec 1. In an a&!
dress delivered here yesUrdoy si hm
WikcMkiMm i ' '"Bin v
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