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New-York tribune. [volume] (New York [N.Y.]) 1866-1924, June 03, 1921, Image 1

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Vol. LXXXI No. 27,228
First to Last.the Truth: News ? Editorials ? Advertisements
Warmer to-day: unn^Uled to-morrow,
probably showers; cooler at night;
fresh south winds.
Full Kepurt on I.a.?t Pajra
(Copyrlght, im,
New VorU l ,u,?,?. i?c#)
?n (.rritlnr *\>w Tork
\\ ithin 200 Mil?? I
foir nrvr?
Tulsa Kaee
Riot Charged
To Cowardice
Of Officials
Sheriff or Police Chief
With Nerve Could Have
Averted Fatal Oash,
Says Gov. Robertson
Grand Jury Opens
i Inquiry Wednesday
Gty Counts 30 Dead, 300
Wounded; Citizens to
Rebuild Negro Homes
Destroved bv the Mob
S~*?ial PUvatch tn The TrOtvna
TULSA, Okla., J uno 2.?Blame for the
fiot here Tuesday night and Wednes?
day. in which at least thirty persons
were killed, 300 wounded and about
3,000 negroes made homeless, waa
plsced to-day on city and county law
enforcement officials. Speakers at a
mass meeting this afternoon to con
?ider relief measures assailed the
police and the Sheriff for failure to do
their duty when trouble threatened.
Govemor J. B. A. Robertson and Adju
tant Ger.eral Barrett, commanding the
militia in the martial law aone. joined
in the denunciation of local enforce?
ment officials.
"With either a sheriff or a ,chief of
police with nerve, this whole thing
would not have happened," said Gov?
emor Robertson to Judge W. B. Wil
lifms. "It is damnablc ar.d inexcusable.
The farce has gone on long enough.
Get a grand jury. In your instruc
tions order an investigation of the
sheriff's office, the city administration
ind particularly the police department,
which in this crisis has been as help
less as the negro babies who v*Cre ren
dered homeless and hunpry by it."
Grand Jury to Meet Wednesday
The grand jury was summoncd for
June 8 m response to the Governor's
demand. The grand jury is expected
?Iso to deal with the case of Dick Row
iand, the nineteen-year-old negro who3e
attack on a white girl in a downtown
office building; started the trouble The
riot began with rumors that Rowland
was to be lynched.
The city was quiet to-day. Re
eheeking of the casualties showed nine
white men and twenty-one negroes
dead. The property destroyed when
the torch was put to the negro resi?
dence section, covering nine blocks, is
vs'.ued at S .1,500,000.
Adjutant General Barrett said that
the riot had been caused by "an im
pudent negro, a hysterical girl and a
reporter for a yellow newspaper." He
eujrgested that a grand jury investi?
gation would ferret out the facts.
. A reaction had set in among the
people of the city when thr mass meeting
was cailed at the municipal building.
Race hatred had apparently vanished.
Tulsa residents in their speeches at
the meeting, accepted the responsi
bility for the riot because of the negli
gence of officials. They appointed a
committee of seven, on which Mayor
T. D. Evans was denied a place, to
care for the homeless negroes and to
expedite the rebuilding of their homes.
These houses will be gifts or offered
to the negroes on long term payments.
A subscription of $500,000 will be
isked, it wa3 announced to-night.
Thonsands Aid in Relief
Thousand3 of citizens throughout
last night and to-day cooperated with
?11 available relief agencies to feed the
greater part of the negroes who were
under the protection of the law in in
ternment camps. The Red Cross. early
on the scene of the disaster, headed the
A general release of the 10,000
negroes held under guard was under
way to-night. Adjutant General Bar?
rett ordered that all those properly
wentihed should be given police pro?
tection badges and permitted to depart.
As a result of this order a general
jaodus began from the churches, the
Dasebaxl park and the County Fair
fcrounds where the refugees have been
neld under heavy guard.
The negroes were permitted to pasa
"i* military cordons into their dd
'aatated home district. All who were
nnable to lind shelter to-night were
received back at the detention camps
Where every effort is being made to
proyide proper sanitary conditions and
iood, water and c'othing.
Late to-day many negroes vent.ured
"gain into the business section, wear
'ng their protection badgcs. Some re?
turned to their former places of busi
_ <Continu?d on pags $|x)
"Cousin Everett" Gets
15 Months in Prison
Qiicagoan, Who Posed as Kin
to Hard ing, Admits Impcr
sonating U. S. Official
CHICAGO. June 2.?Federal Judge
wndis, sitting as judge and jury, to?
day heard the cvidcnce charging "Cou?
sin Everett" Hartiing with impersonat
,Dg a Federal officer and with passlng
?orthlees checks, and after Harding had
Jnanged a "not guilty" plca to one of
-fy.-iS'" sentenced the budding young
PolitiTian and linancier to serve fifteen
jnonths' imprisonment in the Federal
renitentiary at Fort Leavenworth.
"itncsses told how Harding leased
P?vate cars with one hand and bor
rowed "chicken feed" from casual ac
suaintances with the other. A photog
"Pher told how he had done $600 worth
J1 work for Harding, and while waiting
*?* payment of the bill stood several
Personal "touches" amounting to an
iner $ioo. The city passcngcr agent
tk th^*I>ennsylva?'l? Railroad testified
w?t he had received a check from
averett for $1,948.49 in payment for
??? private car which he engaged to
?Uend the inaugural. This check was
'?ter returned marked "no funds."
All the witressee toid how Harding
B*d posed as a second cousin to Presi
?*nt Harding and how he also claimed
w have been appointed as assistant sec
'""ry to the President.
Tin through with politics forever."
J*s Harding's comment ju.nt before
?u(dge Landis passed sentcnce.
The White House Baby," a sister of
*?*rett's, and his parents, were in court
***?{*.:, tha trial.
Gocs Mad9 Kill* Eighu
Wounds 9 With Suord
TOKIO, June 2 (By The Asso?
ciated Press).?A Corean tram
way conductor named Lihnnno be
eame Fuddenly insano last night
nnd killed his wife and soven
Japanese, includlng women atid
children, with a sword. He
WOunded nine others seriously.
Iviii of House
Of Beresford
Dies a Pauper
Body of Once Wealthy Irish
man Saved From Burial
in Potter's Field by
Justice John McCrate
Made Fortune in Iron
Money Gone, He Was Found
Starving in Doorway; Be
lieved Age Was Eighty
Tlie body of Charles Beresford, a
rclative of the late Admiral Lord
Charles William de la Poer Beresford,
waa saved yesterday by one of his old
friends from burial in potter's field.
; Through the intervention of Supreme
Court Justice John McCrate, of Brook?
lyn, funeral services will be held to
morrow at 122 Messerolc Avenue,
Brooklyn, for the unlucky Irishman.
Had not Justice McCrate, who prob
| ably knew the old man as well as he
' permitted any one to know him since
misfortune overtook him, noticed a
paragraph in a newspapcr yesterday
telling of his death in Metropolltan
? Hospitai, Blackwell's Island, Charles
Boresford's body would fill a pauper's
/grave to-day.
Avoided Friends
Beresford himself had taken no steps
, to prevent it. Since hi8 final stroke of
j ill luck, which cost him $30,000, he had
avoided the haunts and friends that
| knew him in his prosperous days as an
j iron mtnufacturer. Several times he
I had been in city institutions in the
. last year, each time registered simply
j as Charles Beresford, sixty-seven years
: old, no home.
Justice McCrate said yesterday that
? misfortune doubtless had blurrod the
j once keen mind of the vngrant Bercs
fori*. and that he had undergone insti
J tutional cateehisms in a purely me
i chanical w?ry, giving the first answer
; that came into his head. His real age,
I Justice McCrate said, probably was
1 nearer eighty years than sixty-seven.
i Like the late Admiral Lord Beres
i ford, his relative took to the sea as a
j boy. Lord Charles's acceptance as a
I midshipman, however, was somewhat of
j a relief to his familv, worried by his
jbcyish escapades, while Charles Beres
! ford ran away from home to ship as a
' cabin boy without his fasnily's knowl
I edge.
Both. however, found themselves at
| approxisnately the same time, though
, in vastly different fields of endeavor.
j When the fnturo admiral, then, com
; mander of the gunboat Condor, was
' silencing the batteries at Alexandria
the other wild Beresford was estab
lishing himself as an iron manufac
turer near Albany, after years of more
j or less proiitable adventuring in Aus
I tralia.
Made a Fortune
The fpundry made him a fortune, and
iwenty-five years ago, or more, he re
tired from business in comfortabl'e cir
cumstances. Some ancestral familiar,
as ill-omened as the banshee of Cur
raghmore itself, however, seemed to
stalk Charles Beresford. His fortune
vanished, just how his friends never
knew, and he took up one unsuccess
i ful venture after another, losing a lit
i tle ground with each
I A year ago it seemed that his luck
j had changed. He had managed to
I scrape together the money to take him
I to the South of Ireland, where property
j was being held subject to his claim,
! and after some litigation proved his
! title The amount ho realized was sa'd
! to b'e about $30,000.
It was more money than he had pos
sessed for years and he was among
I the friends of his boyhobd. who insist
! ed that their homes were his. Not
j for a long time had the future seemed
' so bright. During political disorders,
however, looters broke into the house
where he was staying and stoje all his
funds except a guinea and a few shUl
ings more which he had in his pocket.
The next morning he learned tha^,
the great house where he was a guest
was not the only one to suffer from
the marauders. They had visited a
cottage near by and stolen from a
widow the money she had received
the day before for her four pig.s.
Charles Beresford visited her and
emptied his pocket on the tablc.
Found Starving
"Take it," he said. "It will be of
more use to you than to me."
He had had enough of Ireland and
returned to the United States as soon
as he could borrow the passage money.
His luck did not change when he
crossed the water, however. Not long
after hia arrival here he was picked
up starving in a hallway in Jamaica,
Queens, into which he had craw ed to
die His purpose was frustrated. An
ami)ulanco took him to Ksngs County
Hospitai, and, after a few weeks care,
he was dischargcd, a feeble, broken
old man, who was unable even to die
when he wished to. Last November he
was taken to Bellevue Hospitai for
treatment for an affliction of the eye.
He was transferred to the Metropoll?
tan Hospitai, where he rcmained untn
his death, without neeking to communt
cate with any of his friends.
Out of
Makesureof getting your
copy of The Tribune
when out of town this
summer by calling Beek
man 3000, Subscription
Department of the
BTem Utftfc ?rifitm*
No War Save
For Justice,
Harding Says
"V\\ Never Order You to
Fire a Shot Exeept in
Defense of Right," He
Pledges at Annapolis
"Service to Nation
Noble Occupatioti"
President Asks 260 New
Navy Offieers to Help
Build a True Ameriea
Prorn o Staff Correspondcnt
ANNAPOLIS, Md., June 2.--"! know
of nothing nobler in this world than
the defenso of ono's own country," said
j Prasident Harding to-day, addressing
tho 260 graduates of tho Naval Acad?
emy at Annapolis in Dahlgren Hall.
"That is an inherent thing in man,
planted in the human brcast by God
Almighty in His bequest on human at
j tainments, and there would not be civ
i ilizatlon to-day if men were not willing
j to give- their all for the prcservation
and life of their country," the Presi
: dent continued.
I The Chief Executive spoke after he
| had personally nwarded each budding
J ensign his diploma. Admiral Scales,
| the connnandant of thn academy, and
j Secretary of the Navy Denby had both
j spoken previously. But ihe sight of
I the stalwart 260, immaculate in their
| white duck uniforms, the resnainder of
! the midshipmen in blue grouped behind
j the outgoing class, proved such an in
; spiration that the Pres'dent was moved
j to speak contemporaneously.
j "I &m glad you are coing forth to
j contribute to the sccurlty of your Re
? public," said the President. "I hopo,
? sirs, you will nevjr be called upon io
I draw a sword or to fire a gun exeept in
expression of those comities that go
j with the service, but I promise you that
while I am your commander you will
j never be called upon to fire a gun ex
i cept you can do it with the conscious
| iiess that you are right to answer to
j God and to your country.
"I do not mean by that that ours is
| to be the craven republic. I want an \
j Ameriea unafraid. I want you to help
j me make a republic of conscience, a |
i republic of sympathy, a republic of
strength, u republic of high ideals; and |
j the men who must lead ih that attain- I
I ment are the men who are made f unda
mentally able by the processes of edu
! cation."
Air Filled With White Caps
After the address of the President
the gradu'ating class broke ranks, as
! sembled in the center of the floor and
! observed the traditional custom of
jthrowing their white caps into the.
j ranks of the thousands of spectators.
Sweethearts and mothers acra3nbled for
j the souvenirs and the air was filled
jwith white caps as they sailed into
the balconies. A moinent later the
inewest naval officers were doing a
j snake dance and singing the old navy
j song "The Long River," to indicate
: that finally the last long river had been
The men graduated to-day made up
the first class which has taken the full
! four years' course since the country
j entered the war in 1917. The President
in his address said:
"I have had a very great pleasure in
handing the graduates their diplomas.
i I thought I could not permit the pro
i gram to end without saying a word to
j the class in general and to express my
? own pleasure in being present on this
] occasion. The Admiral and the Secre?
tary have spoken about the gracious
i Jiess of the Executive in coming here.
j That is all wrong. The Executive has
? had not only pleasure but inspiration
| iii coming here. ,
i "I am more than happy to greet this
addition of trained men to the ranks
! of American defense. A good deal is
I said nowadays about the materializa
; tion and the brutnlity of preparing for
i defense. I say to you young 3nen of
' the graduating class, and to the mid?
shipmen to follow you, T know of
j nothing nobler in this world than the
j defense of ono's own country. That is
\ an inherent thing in men, planted in
' the human breast by God Almighty in
His beauest on human attainments, and
i there would not be civilization to-day
I if men were not willing to give their
I all for the presorvation and life of the
] country. I think there is a marked
i distinction between some of the basic
I inclinations of life.
Blend of Two Spirits
"Preservation of tho established
order is one thing and it is highly
? essential. We must always be ready
J to preserve and to maintain the things
I upon which our civilization rests. Cru
I sading for a new order is quite another
! thing. Somctimes it is most nobly in
i spired, sometimes ill-advised; but I
i think the highest attainments in our
| Republic He in n successt'ul blend of
an established order and the enthu
(Contlnund an pa?? tour)
Senators Shun Showy
Luncheon; Fear Voters
Voin The Tribuna'a Waahinaion Bureau
itica is causing.a serioua fnllinjj;
olT in business at the new outdoor
rcstaurant of tho Senate on tho
north portico of the Senaie wing
of the Cdpitol.
Fair weather to-day was ex?
pected to bring a m?.h of trade to
the establishment, but it did not.
Instead the waiters stood about at
case much oi' tho tirne, and only
a small proportion of the solons
took luncheon out of doora.
The explanatioii was vouch
safed by a Senator whoso term
will soon expire, and who will be
up for veelection next year. He
said that if he took luncheon on
the palatial north portico ho was
afraid the news would get back to
his constituents.
l__,_' _
Britain Aids
Get Bergdoll
Negotiations for Extradition
of Fugitive Draft Dodger
Are Under Way Be?
tween London and Berlin
Passport Frand Charged
Believed He Will Be Sent
!o Canada. Then Over the
Border to Complete Term
From The Tribuna'a Washinaton Bureau
WASHINGTON, June 2.?The even
tual return to this country of Grover
Cleveland Bergdoll, the Philadelphia
fugitive draft dodger, to serve out the
balance of his term as a military pris
oner, is expected by the War Depart?
ment to be accomplished through tho
British government, it became known
Information has reached this govern?
ment that the London Foreign Office
has interested itself in the Bergdoll
case, and it is likely that his extradi?
tion from Germany to British tcrri?
tory, and thence to Canada may be ac?
complished through negotiations that
are now understood to be under way.
Once in Canada it is believed that it
would not be difficult to have Berg?
doll sent across the border and into
the hands of army officials.
Used Canadian Passport
The State Department some time ago
placed before the British Foreign Of?
fice all details of BergdolPs escape
into Canada and tho illegal use by
him of a Canadian passport on which
he reached Europe. The contention
was made by this government that the
British authorities could n3ake this
fact the basis of representations to the
German government for Bergdoll's
extradition. This view also is main
tained by the Veterans Association of
Canada, which recently nrged the Do
minion government to ask the London
Foreign Office to make all possible
efforta to gain custody of Bergdoll.
The passports upon which Bergdoll
and Ike Stecher, his chauffeur, reached
Germany were issued in Winnipeg last
summer. Bergdoll's passport bears the
name of George Charles Riggs, who
claimed British citizenship on tlie
grounds that he was born thirty-five
years before at Milk River, and was
an agriculturalist. It was No. 64,491).
Stecher's passport is No. 1*4,787, and is
made out to Frank Jeremiah Johnson,
forty years old, born in New Dayton,
Alberta. The two 3nen sailed from
Quobec July G, landed ln Liverpool
July 18, stayed five days in London
and then proceeded to Holland. From
there the*,' reached Germany.
Veterans Demanded Action
The negotiations under way with the
British government to obtain extradi?
tion, on the grounds of abusing pass?
port privileges, were initiated several
weeks ago. The American Legion has
cooperated in this movement by enlist
irig the aid of the veterans' organisa
tion in Canada, which in turn pressed
the Dominion government to intervenc.
A communication from the Canadian
Veterans May 22 said: "It is not yet
clear what action can be taken through
the Canadian government, but if we can
be of any service to you our coopera
tion may be relied upon "
General Peyton C. March, former
Chief of Staff, divulged to the Con?
gressional committee investigating
Bergdoll's escape, May 9, the diplomatic
steps being taken to obtain Bergdoll's
extradition. Ho said the government
had decided "to get Bergdoll at any
price." It was brought out that if the
negotiations through Great Britain
were unavaiiirig the slacker's extradi?
tion would be demanded by the United
States direct as soon as peace has been
declared with Germany.
Judge From Bench Denoimces
Thief as Uiipiniished Slayer
! Jacob Harodner, twenty-five years
! old, of 80 Willett Street,'was sentenced
| yesterday to serve ten years at Sing
i Sing on a grand larceny charge by
j Judge Otto Roealsky in General Ses
i sions. The court charged Harodner
j with the murder of Joseph Cohen, who
was shot to death at Coney Island the
I night of August 3, 1919.
Before passing sentence Judge Ro
! aalsky said to Harodner:
"I denouncc you not only as a no
? torious and dangerous criminal, but
i as the niurdcrer of Joseph Cohen, who
' you killed at Coney Island.
"That is a broad statement for a
judge to make, but I know what I am
| talkhitf about. Mr. Edelson, the As
| sistant District Attorney, who con
i victed you, deserves the thasiks of the
! commur.ity for such a great public
i service.
"I am told that you covered your
i.tracks wcli in the murder case. A!
1 though you have been arrested seven
| times for erimes, you were convicetd
only twice for minor ??ataneae. T now
j sentence you to ten years in Sing Sing
? prison."
Cohen, who was thirty-five years old,
j was a hat and fur manufacturer, with a
j business in this city, and lived at 707
j Broadway, Uockaway Park. On Sunday
; night, August 3, 1919, he was lured to
| Coney Island, and while walking on
j West Twenty-second Street. between
j Railroad and Surf avenues, was shot to
I death from behind. Harry Korraan, of
I 19 Clinton Street, Brooklyn, was a com
| panion of Cohen's at the time, and waa
j also shot. The police have always re
' garded the shooting as a mystery,
When rororters Bought Judge Ro
salsky in hi-i chambers for further in?
formation the judge refused to make
any other comment. Ho departed yes?
terday afternoon for Washington and
will not return until Monday.
The crime for which Harodner was
sentonced yesterday was commltted
on the night of August 29 last. Ho
was convicted of swindling Philip
Hente, of 92 Lewis Street, out of $900
in a card game at 28 Goerck Street.
Harodner was <accused of cheating and
in the light that followed was shot four
timp?!. Ilis assal'lant escaped.
Police Guns Cover Prison
ers During March to
Headquarters lo Pre
; vent Black Hand Rcscue
Suspects Said
To Admit Guiltl
Money Offer LuresAlleged
Child Stealers; Missing
Boy Has Not Been Found
The mysfery of the abduction of five- i
year-old Giuseppe Varotto, the most
jbaffling with which tho police have had
jto deal since the famous Scimeca case
j years ago, was solved, it is believed,
| last night when five prisoncrs were
taken to Polico Headquarters by de
tectivcs who kept their rcvolvers lev
eled at the manacled men all the way, j
suspicious of an attempt at rescue by |
a black-hand gang.
The prisoners are John Melchionne, !
who livcs in a lodging house near
Chatham Square; Santo Cusamano, of j
349 East Thirteenth Street, and An- j
jtonio Marino and James Ruggierc, of
| the same address, and Roberto Raf
| faig, of Union Hill, N. J. According to
jthe police, all of them have made ad
i misBiona implicatinjy them in an at
; tempt to ext.ort money from Guiseppe's
| father, Salvatore, aiid in the actual
; kidnaping of the boy.
Boy Has Not Been Found
Giuseppe has not been found vet.
| After hours of questioning the police
were not certain that they had ob
tained the truth from their prisoners
as to his hiding place. They did, how?
ever, obtain information which seiit
detectives speeding away in automo
hiles in the hope of recovering the boy.
His father, pale-faced and sllent, seat
ed himself at Headquarters to await
j their return.
The information upon which the ar
resta were made was obtained by de
I tectives?one of them a woman?who
j have made the flat of the Varotto fam
j lly their home ever since the first
I Black Hand letter was received. The
woman, Rae Nicoletti, posed as a cousin
I from Detroit. She made beds, helped
i with the cooking and washed dishes.
] The man, James Pellegrino, came in
the g.uise of a plumber's helper, and
| hammered on the pipes and loafed.
This unusual step was taken because
Michacl Fiaschetti, head oi" tiie Italian
j squad at Headquarters. decided eariy
jin the case that this was not the ordi
| nary neighborhood abduction, ihspired
.generally by a famil-- f.-.ud, but was a
genuine activity of the Black Hand.
i By placing his representatives in the
! Vnrotoo housuhold he made sure not
only of learning all that went on, but
[also that tho Varottos should not be
iterrified into playing the game of the
j kidnappers.
i Miss Nicoletti was in\'aluable in both
| respecta. She is said to have had sev
I eral conversations witli Marino when he
| called at the house to conduct guarded
| negotiationa for the payment of the
| money. At first, she said. he was sus
; picious of her in spite of her fluent
j Italian. Then, one day he came in unex
j pectedly and found her frying eggs.
I That convinced him, she said, that slie
i vyas what she said she was, a cousin
! from Detroit and the only member of
j the family who had any money. Thence
forth they talked with less constraint.
Child Stolen in Daytlme
Giuseppe was stolen in broad duy
liglit May 24 as he played in the |
street. His father had started suit for!
$50,000 damages for injuries received i
by his eldest son. Adolph, at Camp i
Upton, and it is believed that the kid?
nappers thought that he already had
received the money, or part of it.
The next day he received a letter de
manding $2,500. Otherwise, he was
told, his son would be killed and his I
body thrown into the East River.
Varotto was frantic. He was ready to
give up all the money he had?far'less ;
than $2,500?but the kidnappers sent I
no emissary that night.
Varotto's foars so preyed on him dur
ing his night-long vigil with his savings, j
that the following day he reported the I
abduction to the police and after that
I acted in accordance with their advice. '
i Neither his grief nor his fear was al- !
| layed, however, and Miss Anne Morgan, i
I her sympathy aroused by his pitiful i
case, offered a reward of $500 for the ]
| recovery of the boy.
| Marino i,s said to have visited the j
Ihouse, 334 East Thirteenth Street, sev-!
eral times, each time hinting broadly
that he was on familiar terms with the
gang that held Giuseppe, asserting that j
the boy was safe and promising to see
that he was returned if the $2,500 was
given to him to transmit.
After several ineffectual visits, he j
: appears, according to the police, to
I have been convinced that $2,500 was ut- ,
i terly beyond Varotto's means. At a
j few minutes after midnight Thursday !
I RatTale s said to have taken up the
tale, coming to the Varotto door and
| giving it a mighty kick.
"Where's the money?" he is said to
(Continusd en paqa four)
4Gee, Glad It's Over,' Boy
On Trial for Life Yawns
jjury Taken Case of Iadiana
Youngster Aecused of Slay
ing Playmate
Special Ditpatch to The Tribur.a
KN'OX, Ind., June 2.?Stark County's
Ijuvenile trial and the feud between the
children of the Slavin and Burkett
t'amilies are marking time to-night
j while a dozen citizens are trying to
I riecide whether eleven-year-old Cecil
I Burkett is guilty of killing seven-year
' old Benny Slavin last November.
The case went to the jury at 3:25
o'clock this afternoon. Although'Cecil
was indicted for first degree murder,
; which would involve death in the elec
j tric chair as a possible penalty, a ver
i dict of second degree guilt or man-:
: slaughter may be returned. In any
: case Judge William C. Pentecost could
| assign the punishment. No agreement
had been reached when the jury was
? locked up for the night.
But the little Burkett boy ia not!
; worried. He yawned as the grizzled !
' jurors passed him and walked out with '
his sad faced mother.
"Geo, 'Im glad it's over," was hia I
only comment.
Allnniir City Traln* Kuiiier?('{???rwinin? !
Sunday, June 5. Pcnnaylvanla Sy?tem 1
tliruugh tmina to Atlantic City will leave !
?iDiiroxImalt'lv ^t-? *?n>ir pa.r'l?.r -? *4vt.
Builders Forced to Pay
126% for Loans; Gouged
For Big Fees*, Bonnses
Builder Pays for $15,000 Loan,
Gets Only $9,050, Inquiry Skows
According to testimony given before the Lockwood committee yes?
terday, here is a typical case of what happens when a buih>r goes to
a mortgage broker in this city for a ?15,000 loan: ?
Amount he expects to get.$15,000 ?
Bonus deducted by broker for giving loan. S5,000
Balance (? 10,000.1 paid in Liberty bonds worth only 95,
making a further loss of .'.. $500
Broker fee of 2 per cent . $300
Title examination fee of 1 per cent. $150
Amount he gets. $9,050
He pays 6 per cent interest, however, on the entire $15,000. If he
obtained the loan from an insurance company or bank he probably
would have been forced to take some "cat and dog" vacant lot owned
by the institution as part of the loan.
Senate Inquiry
Into Clothing
Trade likelv
! Charges of Bolshevisin
and Labor Profiteering
Against Union Renewed
at Washington Hearing
Plot Cailed Nation-Wide
i Conditions Like Those in
Building Industry Are
Alleged by Manuf acturers
From The Tribune's Waahinpton Bureau
WASHINGTON, June 2.?Archibald
i E. Stevenson, counsel of the New York
| Clothing Trades Association, who was
| associate counsel in the Lusk investi
I gation, and President William A.
) Bandler of the New York Clothing
; Trades. Association, appeared before
Senate Committee on Education aiid
I Labor to-day to urge the committee to
make an inquiry into the clothing in
: dustry.
The committee was told that the
' Amalgamated Clothing Workers of
j America had brought about higher
j costs in clothing; that the organizc
I tion ia working in conjunction with
I certain employers: that the efliciency
1 of labor and the amount of production
] have been I'educed by it, and that the
j clothing workers' organization is un
j American in it^i methods and Bolshe
Similar charges were made in the
? Senate sometime ago when Senator
| Moses, of New Hampshire, offered a
l resolution for an investigation into
j the strike in the clothing industry.
I The Moses resolution and the Borah
j resolution, both of which look to an
| investigation into the clothing indus?
try, were before the committee.
Expected to Favor Inquiry
The committee will report for an in
restigation later, it is said. The Borah
resolution or its substance will prob?
ably he reported. However, the com?
mittee did not act finally to-day. After
heating the two representatives of the
New York Clothing Trades Associa?
tion, the committee decided to call in
as witnesses officials of the Clothing
Trades Association, officials of the
Amalgamated Clothing Workers of
America, and also some of the em?
ployers who have signed up agreements
and some who have not signed.
Further testimony on the reasons
back of the proposed inquiry and why
it should be made is wanted by the
Mr. Stevenson mado the principal
statement. He criticized the alleged
uii-American methods of the clothing
workers and said that through them
;.nd the organlzations affiliateo: ? a j
total of about 600,000 members?radical
and un-American propaganda was be- j
ing disseminated. He alleged a condi- ?
d.tion had been brought about in the
clothing industry similar to that in the
building industry.
Says Costs Have Been Raised
"I appear before your committee to
urge th*i clothing investigation with
two points in mind," said Mr. Steven?
son. "First. because conditions exist
in the clothing industry that have in?
creased the cost of clothing, and this
affects every man, woman and child
who wears clothes in the United States.
These high costs were brought about
j largely by the control gained over the
! clothing industry by the Amalgamated
| Clothing Workers of America. That
l control brought about under produc
! tion of all kinds of garments.
"Furthermore, it has tended to pro
I duee abuses similar to those existing
iin tho building trades industry. The
(Continued ?n next page)
Senate to Vote Bonus,
War Veterans Are Told
Legion Spokesmen Urge Early
Action at tlommittee Session
Behind Ooeed Doors
WASHINGTON, June 2.?Colonel F.
W. Galbraith jr., commander, and other I
spokesmen for the American Legion
were before the Senate special commit?
tee which begun to-day an investiga?
tion of the whole subject of bonus leg
iiilation l'or former service men. The
session was behind closed doors.
The Legion representatives were un
derstood to have pressed arguments for
early action on legislation providing for
adfusted cbmpensation on the grounds
that increasing unemployment was ?g
gravating the condition of thousands
of former service men.
Membera of the committee wore said
to have assurcd the Legion spokesmen
that it was the intention of Senate
leaders, irrespective of party or aec
tional aflRliations, to pass bonus legisla?
tion, nt this snssicm.
|Exodus of Graft
Witnesses Said
To Be Plotted
iHylan Reported Ready to
Give Vacations to All
Official s Whom Meyer
Committee Might Want
Faurot May Get 364 Days
Enright Grants Self Short
Leave and Connolly Says
i He Won't Talk in Secret
Repor*s that the Hearst-Hylan-Tam
; many administration is preparing to
' hamstring the ioint legislative graft
I investigating committee by granting
i practically indelinite leaves oi' ab
' sences to city oflicials who may be of
? service to the graft, probers or who
are wanted as witnesses reached the
, committee yesterday. Senator Schuy
ler M. Meyer. chairman of the com
1 mittee, was concerned especially about
jvOeputy Polic Coiiimisi-ioner James A.
j Faurot, word having been brought to
j hinl that Faurot had been granted. or
j would be granted. a vacation of 3G4
' day.-.
It was explained by Chairman
j Meyer's informant that under the
j charter the longest leavc of absence
which may be granted to a city em
I ployee is 3G4 days. this being the lib
I eral construction placed by city of
j ticials on the law, which provides that
j an employee who is absent from his
| work for a year loses his job.
Enright Grants Self Vacation
Police Commissioner Enright, who
alone could say whether the report was
true, left, the city yesterday to spend
|a_ten-day vacation, which "he granted
I himself, at a resort "somewhere in Jer
I sey." Deputy Commissioner Faurot
could not be reached.
In his absence, Deputy Police Com?
missioner John A. Leacli, who refused
to be sworn by a sub-committee of the
[graft investigating committee and who
j is now waiting to see if he shall be
: punished for contempt of court as a
consequence, will act as head of the
Police Department.
Yesterday Supreme Court Justice
Whitaker, who has heard the applica
tion of the committee for the punish?
ment of Leach for contempt, postponed
action until Monday, when both sides
are to submit briefs.
It was cvident yesterday that the en
tire Hylan-Kearst-Tammany adminis?
tration intended to light the efforts of
the graft probers at every turn. Maur
ice Connolly, President of the Borough
of Queens. when he heard early in the
day that the committee intended to
subpoena and examine him before a sub
committee in camera, said:
"I shall not testify at any secret
hearing. I do not think that the com?
mittee has any right to hold secret
hearings before a sub-committee of
one. Of course I would not mind testi
t'ying before such a body if the news
paper men were permitted to be present
to hear both sides."
To Protest Secret Hearings
Asscmblyman Maurice Bloch, one of
the Tarnmany members of the com?
mittee, upheld the attitude of Presi?
dent Connolly, saying:
"I shall take this matter un with
Senator Meyer and urge the abolition
of all secret hearings. I favor throw
ing the doors open to the public in or?
der that it may know what is going on."
Chairman Meyer contradicted the re
(Contlnued tn next Base)
Plan to "Synchronize"
Hizzoner Is Proposed
Friends Feel Hylan'e Helpful
Sphere May Be :Much Extend
ed by Talking Film
Friends of Mayor Hylan were dis
cussinjr yesterday at Tarnmany Hall a
plan to "synchronize" Hizzoner. Their
idea was to get the Mayor and his
speech, too, before an audience without
troubling Hizzoner actually to appear
in person.
They hope to do this through the
medium of the vocal motion pictures
in which film and phonograph are syn
chronized, nnd intend to try to ;,er
Euade the Mayor to practice speech
making without notes, u^ng gestures
and -cverything, so that the public de?
mand for his appearance at meetings
may be satislied.
It was pointed out that Hizzoner
might save himself some embarrassing
moments by acquiescing in the idea.
At present he reads his speeches, and
emce a fatal evening severa! months
ago, when he lost his manuscript, has
carried three copies with him evejy?
vhpro he coee,J
Some of Ri?jo*est Banks
and Iiisurance Cuai
panies in City N'amed
by Lockwood Witnesses
Obligetl to Take
Over Vacant Lots
Given Victorv and Lib
erty Bonds at Par That
Were Quoted at 95
As a result of the sensational rev
jelations made before the Lockwood
1 committee yesterday in connection
j with the gouging operations of finan
| cial inslitutions in lending money
ifor building purposes, the committee
ibelieves it has uncovered the primal
I reason for the shortage of housing,
The desperate straita to which
buildevs were driven through the
| exorbitant exactions of the financiers
! would be seen, it was pointed out,
j from the fact that they were forced
! to pay as high an interest Tate as
j 126 per cent for money. In many
instances the borrowers received
' only two-thirds of the loan, the other
1 third having been deducted as a
bonus by the lender, witnesses said.
: This bonus reached as high as 50
per cent of the loan in some cases,
according to testimony. '
Other Extortions
In addition to these deductiona, it
was said, the builder had to pay a R
per cent interest charge, pay legal,
brokerage, and title fees and finally had
i to take ;some undesirable tenement
i house or 'vacant lots in New Jersey or
i the Bron*t as Part of the loan or $100
i Liberty and Victory bonds at par that
I were selling in the market for only
I 95. ln many instances, too, it was re
[ vealed, he had to pay interest ior the
! bonus, which the lender had deducted
I in ' the ftrsti place. It was quite the
; general thing, as some witnesses teeti
| tied, for a builder to start out for a
i loan and come home with only a
[ property of dubious value.
Thi;. resulted, it was declared, in the
borrower generally obtaining about
j or.e-third the money he was paying
'interest on, nnd that if he'wanted to
! realize quickly on the properties load
j ed upon him by the lenders he would
have to sell out at a loss. <
The institutions declared to have
| engaged in these practices include
; scme of the largest banks, insurance
I companics and mortgage brokerage
j iirms in the country.
Among the institutions named in the
J testimony were the Prudential In?
surance Company, the Mutual Life In
! surance Company, the Manhattan Life
| Insurance Company, the Manhattan
j Savings Bank. the Empire City Savings
Bank, the Brooklyn Savings Bank, E.v
celsior Sav'ngs Bank. S. W. Straus
Company, Columbia Discount Company,
City Mortgage Company, Pime Savings
Bank of Brooklyn, New York Savings
Bank and the American Savings Bank.
1.000 Specific Deals
It developerl in l*ie course of the
j examination that more than 1,000 such
j iransactions had been brought to the
I notice of the committee within the
j last few years and that these were
I "merely a sample" of the overwhelm?
ing exactions to which is attributed
the general paralysis of building op?
Samuel Untermyer, chief counsel to
the committee, suddenly took up this
phase of the investigation into the
housing situation after announcing
that the inquiry into the activities of
the New York Fire In.surance Exchange
would be BOspended until next Tues
day, pending conferences with the
members of the exchange "with a view
to agreeing upon the correction of ex
isting practices and other matters con
nected with the fire insurance busi?
Willls O. Robb, manager of the er
change, declared to reporters he knew
of no conferences with the committee
and "knew nothing of the grounds upon
which Mr. Untermyer made his state?
ment." It is thought that Henry
j Evans, the chairman of the board of
directors of the Continental Fire Ingur
I ance Company, who disapproved on the
i witness stand of many of the practices
i of the exchange and who is a power in
I the fire insurance field here, had aome
| thing to do with the procedure.
Connor Lawrence, of the mortgage
loan brokerage firm of Lawrence, Blaka
& Jewel, sprang the first sensation of
the day.
First Sensation
He told how he negotiated a loan of
$210,000 for "53 West Seventy-second
Street, Inc," from the Manhattan Lif?
Insurance Company, for five years at
5% per cent. The borrowers had to
pay H. C. Forbes & Co., brokers for
the insurance company, a 3 per cent
fee, or 1(3,000, for getting the loan; the
borrowers also had to purchase fro.,i
Forbes & Co. a three-story brick heuse
on "upper Fifth Avenue," which they
did not want, but which they had to
pay |?,500 for, part in cash and part on
a mortgage.
When Mr. Untermyer insisted on
knowing where this "upper Fifth Ave?
nue" property waa located it devel
oped that it was somewhere on "Goat's
The Brooklyn Savings Bank gave a
i loan, the witness went on. of $240,000
! to the North River Building Corpora
I tion, the loan to run for five years at
1 6 per cent. The "money" was handed
| to the borrower in Victory Bonds at
p?r, which were selling then aomewhtt
under 95. The borrower had to get
? rhe money by disposing of the bond3 fm
? mediately at a loss. Mr. Untermyer
; here miimated that thev were sold b?ck
; to the bank through a title company
, The Arm strong Realty Compunv.
i later the Latstern Building C^/mpanv,
i borrowed $1,975,000 on first and second
, mortgages on the property at S4
(Var.ck Street for a building to be

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