New-York tribune. [volume], July 30, 1921, Page 3, Image 3

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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Policies With
Trade Revival
White House Statement Re?
views Accomplishments;
Federal Reserve Banks'
Cut in Rates Is Cited
Better Markets Found
Aid for the Farmer and
Improved Credits Are
Included in the Report
r ..... The Tribune's Washington Bureau
WASHINGTON, July 29.-?The con
gtructive efforts of the Administration
for the revival o! business and finan?
cial conditions throughout the coun?
try are reviewed to-day in a statement
?nade public at the White House. The
geries o? measures for the relief ol
business men and agriculturists art
?weit upon and figures reproduced tc
ghow what has been accomplished
What is to be done for the "railroads
and th? necessity which impels sucr
action, is set forth. The revival of th<
facilities of the War Finance Corpora?
tion and the pool raised for the benefi'
of the livestock industry are twx
efforts which, it ?3 stated, have had t
far-reaching effect. The action of th(
Federal Reserve banks in reducing th<
interest rates is looked upon as th<
?ant step in the business reviva
ci the country.
White Hotus? Statement.
The White House statement fol
Jowp:
"The accomplishments of the lasi
four months by various branches oi
the government in the direction o:
relieving financial conditions, in mak
ing provision for the government':
ghort dated debt, in assisting botl
industry and agriculture to bette;
markets and in providing for th<
f.nanc-a! necessities of the railroads
constitute in the aggregate an achieve
ment of the largest importance to th?
country.
"Perhaps the most important devel
?pment has been the action taken b*
the Federal Reserve Banks in reduc
ing discount rates. This action i:
calculated to relieve the stagnatioi
of business, and at the same time i
gives authoritative recognition of thi
improvement in credit conditions jus
tii'ying the policy of reduced ratea
During the latter part of 1919, am
from time to time in the year 192C
increases of rates of discount ha?
been, made by the Federal Reserv
Banks in order to meet then existim
conditions. There had also been in
troduced in several reserve district
go-called progressive discount rates
under which, after the member ban
bad discounted its paper with its Fed
Acal Reserve Bank up to a certai:
point, it was then re?:*uired to pa
progressively higher rates for furthe
(Usi*our.t3 in order to check excessiv
borrowings. These rates have recentl
been netirely abolished, again indi
eating improved credit conditions.
"The first of the successive reduc
tior.3 in discount rates came on Apr:
15, when the Boston Federal Reserv
Bank reduced its rate on commercu
paper from 7 to 6 per cent, and mad
a like reduction on agricultural pape:
"A reduction from 7 per cent to 61
per cent on commercial paper was mad
bv th-3 New York bank on May 5, whil
that on agricultural paper was like
v.isp reduced from 7 to 6*4 per cent.
"On May 6, the Atlanta bank reduce
the commercial paper rate and also th
rate on agricultural paper from 7 t
6 per cent.
Chicago Bank Reductions
"On May 7, the Chicago bank reduce
the commercial paper rate from 7 t
f% per cent, and the rate of agricu
tarai paper from 7 to 6% per cent.
"On May 10, the Minneapolis ban
"reduced the commercial paper rate froi
7 to 6% per cent, and the rate on agr
?raltural paper from 7 to 6% per cen
"On May 16, the Dallas bank reduce
the commercial paper rate, and also th
rate on agricultural paper from 7 t
6% per cent.
"On June 16, the New York ban
again reduced the rate on commercii
paper from 6*? to 6 per cent, and th
rate on agricultural paper from 61
to 6 per cent.
"On June 25, the "Dallas bank mac1
its second reduction, lowering the ral
on both commercial paper and agricu
tural paper from 6^ to 6 per cent.
"On July 21 or thereabouts, the Bo:
ton, New York, Philadelphia and Sa
Francisco banks reduced the comme
eial paper rate from 6 to 5Va per cen
At the same time these banks made
like reduction in the rate on agricu
tarai paper.
"It is unsafe to prophesy concernir
?renditions in the future, but it may 1
expected that recognition will be givt
to further improvements in conditioi
in accordance with the dictates ?
Bound banking practice.
"It will not have escaped attentic
that the rates of discount of the Bar
t? England have also been successful
reduced and that these reductions ha*
'been substantially coincident with tl
reductions in Federal Reserve rates ;
this country. This would appear to 1
?? frank recognition of the intimate r
lation between the money markets :
this country and of Europe, and
recognition as well of the improveme:
in world credit conditions. The impo
tance of coincident reduction by the
two leading banking systems lies chief
lo the fact that it indicates a mutu
desire to reopen the international cha:
?els of credit on which internation
trade depends.
New Refunding Policy
"Th? Treasury on its part has, du
?ng the past four months, successful
inaupurated its new policy of refun
mg the short dated debt of the gover
nient and distributing the early matu
flues over the period between the m
"rity of the Victory loan in 1923 ai
.ne^ third Liberty loan in 1028. Tl
prst offering of Treasury notea pu
?-ant to this policy met with a mo
jnthusiastic response, and the furth
ftjy-lopment of the program shou
?ring about a better distribution
"?e public debt and much improve
market conditions for government s
"?ties. There has already been
marked improvement in the mark
P?ces of Liberty bonds and Victo
?otea, and the market for all outstan
mg issues of short term governme
??cumies is in better shape than
LVlne since the depression.
Along with these accomplishmen
must be mentioned the resumption
?Uve operations by the War Finan
corporation, which had ceased opet
?ons m May, 1920. Since its active i
""""Option of operations this corpoi
?on has now agreed to make advanc
*ojmance large quantities of cott
Sneg?vnsi nt:arty a million bal?
.?.-*- the Federal Reserve system
K-ymg attention to cotton financi
?rough its banking facilities. Ge
"ai assistance to foreign trade also
?ei"g extended through the W
th* nC" CorP?ration, principally f
ne purpose of moving, general agrici
rorai products to foreign markets, f
*nich many millions have been all
-Wed.
?i"The renewed activity of the W
'inane? Corporation is not to be me?
t?a*! -ymPl?' by the resultant restoi
it? a confiden<*e or by the amount
'?advances. Its intervention in i
'?ie export trade and in making a
"**"-??"? to enrry American agricuitui
I I - ? ? ? ?
'Foe'Planes WreckNew York,
But They Are Only Fooling
Flying Fish, Blown Out of Aquarium by Bomb,
Attacks Squadron Commander as He Lays
the Financial District in Hypothetical Ruins
Seventeen hostile airplanes, fresh
from the destruction of Washington,
Norfolk, Richmond, Newport News.
Philadelphia and the Atlantic fleet,
swooped down upon New York yester?
day and, according to Major General
"William Mitchell, who commanded the
marauders, blew lower Manhattan and
the Navy Yard to flinders with twenty
one tons of high explosives.
The hardy warrior, inured as he is to
I scenes of carnage and destruction, had
; difficulty in controlling his emotions
; as he described the havoc wrought in
| New York.
With a splashing crash, the first
bomb hurtled through tho roof of tht
Aquarium. A column of water, fish
spectators and d?bris spouted mon
than 600 feet into the air, and a flyinj
fish, believed to be the sole survivoi
of the catastrophe, attacked Captair
St. Clair Street, General Mitchell's aid
? with the utmost daring and ferocity.
The valiant little fish, sole aerial do
fender of the city, soared, on the im
pulse of the explosion, more than 6,00
feet aloft. With blood-curdling growl
it dashed again and again at Captai:
Street, snapping at him and beatin
his face with its pinions.
The imperiled officer, however, recog?
nizing his assailant as exocoetus fui
catus. a morsel highly prized by th
voracious barracuda, at once imitate
the peculiar cry of the latter fish wit
such startling verisimilitude that th
douerhtv flvinir fish turned nal? wit
j fright, faltered for an Instant in its
I swift flight and was mowed down by
tho propeller.
Thenceforth nothing impeded tho
triumphant progress of the attacking
I nir fleet. Battery Park and Bowling
| Green soon were piled to a depth of
more than twelve feet with masonry
! and corpses. The Wall Street district
j crumbled in mountainous ruins, the
| first building to suffer being the Sub
Trea.?ury.
Almost a ton of explosives wai
hurled at this structure with deadly ac?
curacy. So tremendous was the result?
ing explosion that each of the seventv
officers was able to fill his pockets with
gold pieces which he plucked from the
air as they buzzed skyward past the
bombing planes.
The Woolworth Building, torn from
its foundations by the. simultaneous ex?
plosion of two 2,000-pound bombs in
Park Place, toppled and fell, crumpling
story by story, into City Hall Park,
burying the fountain in course of con?
struction there twenty feet deep in
masonry. The City Hall, shaken by the
concussion, succumbed a moment later
to another bomb.
Only one building was left standing
south of Canal Street. That was the
old Post Office Building, spared by di?
rect order of the enemy commander in
proof of the bitterness with which he
waged war.
When only mountainous heaps of
theoretical debris and twisted skeletons
of steel remained in lower Manhattan,
the airplanes set out for Hempstead,
L. I., landing there early in the after?
noon after demolishing the navy yard
as they passed.
, products pending or awaiting export
j has been, according to many evidences
; received, an inspiriting and heartening
! factor in the whole agricultural situa?
tion.
"Besides the loans actually under?
taken many important transactions in?
volving American agricultural prod?
ucts are under immediate consideration.
An enlargement of the powers of the
War Finance Corporation has recently
! been recommended by the President to
' Congress in connection with financing
I of agricultural products. It is believed
j that the adoption of these recommenda
; tions will mean that adequate financing
; of the, new crop for purposes of for
i eign trade and also in domestic busi?
ness may be reasonably expected.
Banking Loan Funds
"On the initiative of the Secretary
of the Treasury a banking loan fund
has been organized, which will afford
! relief to the livestock industry. Ad?
vances up to $50,000,000 may be made
in the aggregate. About $5,000,000 has
already been advanced.
"The Federal farm loan banks have
been enabled to resume lending oper?
ations as a result of the successful
sale of Federal land bank bonds. Ad?
ditional authority for temporary gov
f?:iment avances to these banks to
facilitate their operations has also been
granted. The Curtis-Nelson bill, which
made this operation possible, became a
law on July 1, 1921.
"The financial necessities of the rail?
roads have long been recognized as of
imminent concern to the entire coun?
try, not only because efficient transpor?
tation is vitally necessary, but also be?
cause there is hope for a resumption of
industrial activity when the railroads
are put in funds and enabled to begin
buying the vast quantities of material
which they need. In order to make
this possible the Administration has
put forth a program which contemplates
the early and rapid settlement of the
accounts between the railroads and the
government growing out of the period
of Federal control and operation. This
settlement should enable the roads tc
become extensive purchasers of ma?
terials, and thus greatly improve indus?
trial conditions.
Aid for Railroads
"In this connection the President ha?
recommended to Congress that the
War Finance Corporation should b?
given power to purchase railroad se?
curities from the D?rector General oi
Railroads in order to finance the set?
tlements by the railroad administra?
tion. This proposal ?3 merely a re?
vival of the war-time powers of tht
corporation, under which it made ad?
vances of about $205,000,000 to th?
Director General of Railroads and thf
railroad companies. Of this amount
about $160.000,000 has been repaid
In connection with the advances previ
ously made the War Finance Corpora
tion was able to give effective assist
anee to the general railroad credi
situation by means of its interventioT
and the cooperation it was able t<
secure from bankers. It is expecte,
that its intervention at this time wil
again have a beneficial effect on gen
eral railroad credit, and also that th?
corporation will again be able to se
cure the whole-hearted cooperation o
the bankers in developing the marke
for railroad securities.
"Speaking in the broadest way, it i
felt that the series of measures, o
which the foregoing is not by an;
means a complete statement, constitu?
a truly constructive effort for th
amelioration of business and financia
conditions, and there are already man;
evidences of beneficial effects. Wit)
a generally excellent agricultural pro
dnction now assured for the season
there is every reason for confidenc
that a steady improvement of genera
business conditions may be antici
pated."
? _
Dies From Accidental Shot
Jack Karpen, an automobile me
chanic, was wounded by the accidenta
discharge of a revolver last night i;
a garage at 1074 Home Street, Th
Bronx, and died from his injury a
Lincoln Hospital. His home was a
Freeman Avenue and Stebbins Streei
The Bronx. Samuel Fiffer, proprieto
of the garage, was arrested.
Politics Institute
Is Inaugurated at
Williams College
Taft Outlines Plan to Aid
in Bettering Relations
Between Countries at
the Opening Session
WILLIAMSTOWN, Mass., July 29 ?
"To help perfect the evidence as to the
j facts bearing upon the international
I relations between countries," as Chief
?Justice Taft expressed it in his ad
? dress as presiding officer of the firsi
| session, an institute of politics was
j opened at Williams College to-day
Over the greater part of a month wili
! bo spread public lecture courses b>
distinguished European statesmen anc
others, interspersed with private dis?
cussions among the lecturers and tht
college presidents and faculty member;
attending the institute.
The purposes of the institute wert
| outlined by Chief Justice Taft am
President Harry A. Garfield, of Wil
liams, at the session to-day and a re
ception was held this afternoon. Thi
first lecture will be given by Viscoun
James Bryce, former British Ambas
sador to the United States, to-morrov
evening.
President Garfield made public to
night letters received in response ti
his invitations to President Harding
former President Wilson, Secretar;
Hughes and Senator Lodge* to attem
these sessions. All said they coub
not come.
President A. Lawrence Lowell, o
Harvard University, and Mayor Andre?.
J. Peters, of Boston, were other speak
er3 at the session to-day.
Taft Delivers Address
"Never before has it been so clear,
said Chief Justice Taft in opening th
institute, "that our prosperity is de
pendent on our relations to Other coun
tries and the maintenance of those re
lations in a friendly state of mutu?
confidence and good wishes.
"The greatest obstruction to th
world's maintaining harmony among it
members is the misunderstanding b?
tween them and the lack of accurat
information which one nation ma
have of the exact situation of the othe
and of the necessary effect of that siti
ation upon that other's views of the:
relations.
"Progress made in any field of ht
man activity is dependent upon reliab!
and accurate relevant facts. By r
much as that evidence fails in accurac
or extent the deficiencies of progre:
are measured."
National Responsibility.
Dr. Lowell proclaimed the necesslt;
to insure the peace of the world, of
common agreement among natior
based o? a sense of national respoi
sibility.
Signor Tittoni, former Italian Fo
eign Minister, and Count Teleki, fo
mer Premier of Hungary, are amor
those who will give its public lecture!
Norman H. Davis, Leo S. Rowe ar
George Grafton Wilson among i
round table leaders, and Preside)
Charles F. Thwing, of Western R
serve; President Ellen F. Pendleto
of Wellesley, and more than one hu:
dred well known bankers, lawyers, o
ficials and college professors a:
among the students and membe
present.
? .
Mrs. Welzmiller Asks Hardin
To Fight Tax on Ice Cr?ai
Mrs. Louis Reed Welzmiller, Depu
Commissioner of Public Markets, ye
terday sent a letter to President Ha
ding requesting him to use his infl
once to secure the removal of the Fe
eral tax on ice cream. Under the pre
ent Federal laws, she said, this t;
merely serves the purpose of raisii
the price of ice cream from one lev
of profiteering to another. Mrs. Wei
miller declared she was making the a
peal to the President in the name
the children of this state and of t.
nation.
Eight Miles Off Shore, Drinks
Galore, Cool, Yet They Complain
A week-end out on the Atlantic some
eight or ten miles east of Sandy Hook
should not be regarded as unpleasant
during these torrid days in the town.
Late yesterday afternoon 130 Ameri?
can citizens were taken to that particu?
lar latitude and longitude as guests of
the Greek Line. Their big ship,
equipped with comfortable berths, reg?
ular meals and plenty of cool and
lively stuff to drink, is called the
Megali Hellas, who feel that indirectly
Atlantic liner which brought the 130"
Americans westward from tne Piraeus.
There are perhaps in the greater
city 3,000,000 or 4,000,000 persons who
would gladly accept sucn hospitality.
Not so with the Americans on the
Megali Hellas who feel that indirectly
they are the "goats" of their own new
immigration law.
Greece has reached her quota of im?
migrants for the month of July. If j
the Megali Hellas came into port with I
her aliens from Greece this month, i
they would not be acceptable. Know- j
ing that they would be most welcome
ir. August and being a wise Greek,
Captain Hayapis decided to anchor off
Sandy Hook until the end of July rolls
by. At sunrise on Monday he will
come into Quarantine, but the plan has
met with spirited condemnation on the
part of the American citizens who want
to come ashore.
The wireless operator on the Megali
Hellas is doing an enormous business
sending out protests and appeals from
the marooned Americans. Messages
have been sent by them to the immi?
gration officials at Ellis Island and to
the Department of Labor in Washing?
ton, but the departmental heads have
done nothing but pass the responsibil?
ity on to the steamship line.
A way out of the situation would be
for the steamship company to send a
tug with an immigration boarding offi?
cer and a few customs inspectors, who
could pass upon the citizens and permit
them to land.
Captain Hayapis and the local agent3
of the line were yesterday determined
that the vessel should toss idly at an
anchorage off the Hook until Monday
morning1.
Ship Board
Meets to Probe
U. S. Mail Case
Lasker Also in Conference
With G. D. Goff, Newly
Appointed to Conduct
Drive on War Grafters
Harriman Visit Explained
Mayer's Offer to Buy Nine
Seized Vessels May Be
Officially Answered Soon
__
From The Tribune's Washington Bureau
WASHINGTON, July 29.?The Sbip
j ping Board met to-day to discuss the
? litigation in the case of the United
j States Mail Steamship Company, nine
of whose vessels were seized by the
| government for alleged default in char?
ter hire, and the case was said also
I to be the subject of a conference which
! A. D. Lasker, chairman of the board,
j had with Guy D. Goff, special assistant
I Attorney General, who recently was
! designated to prosecute war grafters.
Chairman Lawker said that the meet?
ing was primarily for the purpose of
I going over the papers in tho .Jail case,
i and he indicated that a de'/it o answer
i to the Mail's offer to rl.rchase the
nine vessels seized last \{ ek l'or $9,
! 000,000 muy go forward soon.
Asked if the acceptance of the Mail
'? conipany'3 offer would not have the ef
! feet of satisfactorily settling the dis
| pute now prevailing with the company,
? Chairman Lasker said that the board
would have to have time to go into all
! angles of the case before any public
! announcement was made.
The visit of?-W. Averell Harriman,
j head of the American Lines, to which
j the nine vessels seized from the Mail
I Company had been reallocated, here
yesterday, Chairman Lasker said, had
no connection with the Mail case. The
subject, he said, had not been men?
tioned in any way during his con- j
ference with Mr. Harriman.
It was recalled to-day that Admiral
; W. S. Benson, chairman of the Ship
: ping Board, when the agreements with
I the United States Mail Steamship Com
\ pany, by which it obtained the nine
! vessels now in litigation was made,
i has publicly announced that the com
| pany was represented to be 100 per
? cent American.
Since the seizure of tho vessels,
! he has reiterated this statement, add- j
; ing that his action in chartering the
? vessels to the company was not made
j until the board, as then constituted,
' had investigated the financial inter?
ests involved in the company. Chair?
man Lasker took occasion to deny the
published report that Herman Laue,
I former advertising manager of the j
Shipping Board, had been removed ?
from office coincident with a compli- ]
mentary dinner Laue gave last night \
in New York at which officers of the j
United States Mail Steamship Com?
pany were present.
"Mr. Laue's resignation has been j
in for over ten days, and it was ac- :
cepted immediately after presenta- >
tion," Chairman Lasker said, adding j
that D. Earle Brundage, of Chicago, 1
had been commandeered by the board j
to take charge of the advertising !
department and put it on a business !
basis.
Mail Steamship Co. Sued,
\ With V. S.9 Over Repairs
i The United States Mail Steamship
j Company, nine of whose ships were
j seized on behalf of the United States
Shipping Bdard for alleged default in
charter hire, was made a co-defendant
with the government yesterday in a
I libel action brought by the New York
! Haibor Dry Dock Corporation to re
! cover $184,922 said to be due for re
j pairs on the steamship Potomac.
Immediately after papers in the suit
j bad been filed it was announced that
i the Potomac would sail on August 10
| for Bremen and Danzig, as scheduled,
! in spite of the action, as the vessel is
j government property and cannot be de
' layed.
The suit was filed on behalf of the
; deck corporation by its counsel, George
j W. Betts, of Hunt, Hill & Betts. 120
; Eroadway. The claim is for an amount
I alleged to be due foi? lepairs and cquip
S ment furnished at Roscbank, S. I., dur
! ing January, February nnd March.
; Francis B. Mayer, president of the
I shipping company, said that the claim
had been presented to Admiral Ben
sen, and that the Shipping Board had
arranged to arbitrate a dispute over
j the amount. Twenty days are given
! the government and the shipping ctom
j pany in which to file an answer.
It became known yesterday that ef
fcrts are being made in Washington
to induce the Shipping Board to make
j public all the facts concerning the
j seizure of the nine ships of the United
? States Mail Steamship Company last
i Friday night without warning the com
! pany. It had been explained the selz
| uro had been authorized by the seven
; members of the Shipping Board at a
i meeting held on the previous Thursday.
? Since then a complaint has been filed
with Albert D. La_ker, chairman of
! the board, that no official vote of the
board had been taken, but that officials
j of the Emergency Fleet Corporation
bad assumed responsibility for the
or-ir.iTTp.
Subsequently J. Barstow Smull, one !
of the vice-presidents of the Emergency j
Fleet Corporation, and Elmer Schles
inger, general counsel for the Shipping !
Board, were called to Washington for i
a conference and William Marshall j
Bullit was sent here as counsel for the j
board. It is understood that President i
Harding has conferred with Mr. Lasker
on the situation with a view of making
public the official record of the seizure.
The George Washington, one of the
ships in dispute, will sail next Wednes?
day with a passenger list composed
largely of members of the American
Legion, the company announced. Cap?
tain Harold A. Cunningham was se?
lected yesterday to command the vessel.
The sailing of the George Washington
was assured by the action of Supreme
Court Justice Burr in transferring to
the United States District Court the
argument on a temporary injunction
obtained by the company last Monday
to prevent interference with their
ships. The argument will be heard
before Judge Augustus N. Hand in the
Federal Court on Thursday. Meantime
the injunction enables the company to
proceed with their scheduled sailings.
England Has Not Received
U. S. Rate War Threat
From The Tribune's European Bureau
Copyright, 1021, New York Tribune Inc.
LONDON. July 29.?Officials of some
? of the leading British snipping com
! panies, including the Ellerman and
I the Royal Mail lines, said to-day that
j they had heard nothing of the re
i ported ultimatum to British shippers
j from the United States Shipping
! Board, threatening to "carry anything
i anywhere at any rate" if American
1 craft were not allowed a share of
! Egyptian cotton transportation.
These shipping men expressed sur?
prise at the report that such, an ulti?
matum had been sent to England.
They pointed to dispatches from
Washington in London afternoon
newspapers, quoting Shipping Board
officials as denying having sent such
a communication.
British Oppose U. S.
Ships, Says La Follette
"Insidious Propaganda" to In?
jure Merchant Marine Is
Charged by Senator
WASHINGTON, July 29.? British
shipping interests were chcrjred in the
Senate to-day by Senator La Follette,
Republican, of Wisconsin, with "insidi?
ous propaganda" hostile to develop?
ment of the American merchant ma?
rine.
Detailing his charges that British
interests were at work to shape the
American merchant marine policy to
their selfish ends, Senator La Follette
charged the International Mercantile
Marine Company, an American corpora?
tion, with being in fact British con?
trolled. He analyzed at some length
the company's controversy with the
former Shipping Board over the form
of contract for operating its vessel-,
which, the Wisconsin Senator declared,
aided British rather than American in?
terests.
"The resolution .of the Shipping
Board," the Senator said, "does not
touch the real iniquity in the relation?
ship between the International Mer?
cantile Marine Company and the Brit?
ish government and the British ship?
ping interests. Either tho Shipping
Board purposely set up a man of straw
for Mr. Franklin [president of the com?
pany] to demolish or it had not the
least conception of the manner in which
British influences controlled the com?
pany."
$100,000 Slush
Fund Rumored,
Devaney Says
(Continus- from pane on?)
under the influence of liquor at Al?
bany."
"You've got very poor eyesight, De?
vaney; very poor eyesight," retorted
Commissioner Hirshfield.
Devaney said that he had heard ru?
mors in Albany of a fund of $100,000
raised to grease tho Lusk bill through.
He could only recall one instance
where he heard this talk. He said that
he heard some men he did not know in
a telegraph office say that such a fund
was raised. He offered his opinion
that the talk of a big slush fund was
to get Smith to drop the bill, so that
Lusk could handle it, and observed
that it was his belief that Detectives
Gegan and Brown were behind it.
It was at this juncture that Senator
Lu.sk's gubernatorial ambitions, which
have been an open secret in political
circles for months, were touched upon.
Detectives Gegan and Brown, Deva?
ney testified, were helping Senator
Lusk to get all the credit for passing
the legislation "because it would fur?
ther Senator Lusk's ambitions to be
Governor." He testified further that on
one occasion Brown and Gegan said
"Senator Lusk will need a lot of votes,"
and that sponsoring the detectives'
higher pay and permanent job bill
would aid him materially.
Devaney testified that he had never
heard of the $1.131 silver service
bought, it is alleged, out of the surplus
left after the dinner given by the De?
tectives' Endowment Association to
Senator Lusk, altnough he was an
active member of the association, until
he read of it in the newspapers a few
days ago.
Police Lieutenant Joseph Courtney,
who, with President Moran of the Pa?
trolmen's Benevolent Association, led
the fight at Albany against the lobby
that jammed the Lusk bill through, was
the next witness. He told of vain at?
tempts made by himself and President
Moran, as representatives of the entire
uniformed force of the Police Depart?
ment, to get Lusk to drop the legisla?
tion. He said they pointed out the
features in the bill which shattered
civil service, traditions and asked that
Lusk grant a public hearing on the bill.
This Lusk refused to do, saying that it
was too late, and he wanted to "do
something for his friends Gegan and
Brown."
Graft Committee Member
Indicted for Conspiracy
Rochester Assemblyman Denies
Charges Made During the
Slush Fund inquiry Here
Assemblyman Sol Ullman, member of
the joint legislative graft' investigating
committee, of which Senator Schuyler
M. Meyer is chairman, and four others
were indicted yesterday by the Federal
grand jury, charging them with con?
spiracy to defraud the government out
of income taxes. Emanuel Friedman,
Ullman's law partner; Justus Frankel
and Meyer Saal, pa?lie accountants,
and Harry Levy, an agent of the In?
ternal Revenue Bureau, were the others
indicted.
According to the indictment, Harry
Levy was sent to examine the books
of Arthe, Levy, Bernard & Co., dealers
in umbrellas at 37 Union Square, at
the direction of Ullman, and repre?
sented to Isador Bernard, a member
of the firm, that the examination of
the books would .disclose the fact that
the corporation owed the government a
large sum for income and profit taxes.
It is further alleged that at the di?
rection of Ullman and in furtherance
of the conspiracy, Frankel on July 11
demanded $6,500 from Bernard to con?
ceal the fact of the company's indebt?
edness to the government. It is also
charged that on July 14 Levy accepted
the alleged bribe, which was given to
him by Bernard, who prior to that had
revealed the conspiracy to Colonel Wil?
liam Hayward, United States Attorney,
and was acting under his orders.
After the payment of the alleged
bribe money to Levy the five alleged
conspirators were rounded up by the
Federal authorities and were held in
bail to await the action of the grand
jury. They will all be summoned to
plead to the indictments in court.
Ullman represents the 6th New York
Assembly District in the State Legis?
lature.
???-.?.???Il ? .y ?? I ???-^l.?
Mrs. Morris Wins Divorce
On Testimony of Guide
Granted $425 a Month Alimony
After Surgeon Refuses to
Contest Suit
Special Dispatch to The Tribune
POUGHKEEPSIE, N. Y., July 29.?
Justice Joseph Morschauser, in the
Supreme Court here, to-day handed
down an interlocutory decree of divorce
to Aim?e Renaud Morris from Dr. Rob?
ert T. Morris, surgeon, of 616 Madison
Avenue, New York City. Mrs. Morris
was granted $425 a month alimony, but
no counsel fees.
Dr. Morris did not contest the suit.
The principal witness for the plaintiff
was William Yates, a Canadian guide,
who told of a trip that Dr. Morris is
alleged to have taken through Cana?
dian wilds with another woman. The
co-respondent was unidentified, but was
described as about twenty-two years
old, decidedly beautiful, with dark
hair.
The decision had bean held over a
week by Justice Morschauser in order
to give Dr. Morris an opportunity to
answer the charges brought by his
wife.
Hayward Seeks
Craig Contempt
Case Review
Comptroller Is Ordered to
Show Giuse on October 3
Why Ruling Should Not
Be Reargued in Court
Other Trials Are Affected
Was Sentenced to 60 Days
in Jail, but Release Was
Obtained at New Hearing
Comptroller Charles L. Craig was
served yesterday with an order to show
cause before the United States Circuit
| Court of Appeals, on October 3, why
ja writ of certiorari should not issue
j "to review the order of Martin T. Man
! ton, Circuit Judge, entered on April
?29, 1921," which discharged the Comp
' trouer from the custody of Marshal
? Thoma3 D. McCarthy and reversed the
j decision of Judge Juliu3 M. Mayer
j-committing the Comptroller to jail for
j sixty days on a charge of contempt of
i court.
The order was obtained from Judge
I C. M. Hough, of the Circuit Court, at
! Hartford, Vt., on July 2'7, on the peti
| tion of William Hayward, United
'. States Attorney, appearing in behalf
! of Marshal McCarthy. The order means
j the reopening of the Craig contempt
i case, in which the Comptroller was
; adjudged in contempt by Judge Meyer
for causing the publication of a letter
which he wrote to Lewis Nixon, then
Public Service Commissioner, criticis?
ing the action and policy of the.court.
Judge Mayer sentenced the Comp
? troller to serve a term of sixty days
; in the Essex County jail, Newark, N.
; J. The Comptroller obtained a writ
| of habeas corpus, and when it was
; argued before Judge Mant?n the latter
: sustained the writ and ordered the
! Comptroller released from the custody
| of the United States marshal and the
papers filed.
Colonel Hayward, in his application
i for a review of the case, alleges that
j Judge Mant?n exceeded his jurisdic
? tion in issuing- the writ and rendering
! a decision in the matter. It is further
alleged that the writ was not properly
1 drawn or issued, and that the issues
; raised in the habeas corpus proceed
| ing- had been properly adjudicated in
; the District Court and that adjudica
I tion was a bar to relief in the habeas
: corpus proceeding,
"It is respectfully urged that if the
i power assumed by the Circuit judge
' in this instance were to be further
; exercised," :;aid Colonel Hayward in
! his application to Judge Hough, "it
; might be employed to release ail per
j sons in custody after conviction of
; crime, and the decision made by the
i Circuit judge herein might be con
I sidered and used as authority for such
I action. There is no authoritative
| precedent for the final order discharg
; ing the defendant. The question here
j raised affects a very large number of
; cases within the jurisdiction of this
j court and in other Federal jurisdic
j tions. The rule to be followed should
? be established beyond further ques
i tion or controversy by this court. It
; is therefore respectfully submitted
j that in view of the gravity and the
; far-reaching importance of this case
j the writ prayed for herein should
; issue."
_-.
j IJangs Self on Eve of
Trip to Native Land
Two Others Fail in Efforts to
Commit Suicide; One
Held for Jury
Franco Breginear, thirty-five years
old, took a room in the Ocean Travel?
ers' Transfer Hotel, 297 Tenth Avenue,
last Wednesday, and hanged himself.
His body was found yesterday, partly
clothed and suspended from a hook in
the wall. A strip of bed cover was
looped about his neck. According to
Dr. Sullivan, of New York Hospital,
he had been dead two days.
The dead man came from Youngs
town, Ohio. He is said to have a wife
there. He was to have sailed Wednes?
day afternoon on the steamship Paris
for his home in Europe.
Louis H. Tift, his throat cut and his
ankles slashed, was found by h?3 wife
last night at their home, 545 West
142d Street, and was taken to Knicker?
bocker Hospital. The razor with which
he had tried to end his life had been
placed on a note as a paperweight.
He said in the note that business had
been bad and he was "crazed from
worry." He probably will recover.
HACKENSACK, N. J., July 29.?Mrs.
Louise Deinealscheck, forty years old,
of 553 George Pvoad, Cliffside, was held
in $500 bail here to-day by Justice of
the Peace Frank Borrell for the grand
jury on a charge of attempting to
commit suicide. The police said that
Mrs. Deinealscheck suffered from the
heat last night, closed the doors and
turned on the gas. She was found, ac?
cording to the police, early to-day and
taken to the North Hi/Json Hospital.
She will recover, it was said.
Special Master Reports
Against 80-Cent Gas
Recommendation to U.S. Court
Is That Companies Be Per?
mitted to Raise Rates
The 80-cent gas law is confiscatory
and unconstitutional, according to a
final report filed with the United
States District Court yesterday by
Abram S. Gilbert, special master in
injunction proceedings brought by
four gas companies to prevent the
enforcement of the 80-cent law, passed
in 1906.
Mr. Gilbert recommends that the
companies bo permitted to increase
their rates.
The actual cost of gas production
reported by the plaintiffs was: Stand?
ard Gas Light Company, 1919, 92 12-100
cents 1.000 cubic feet; 1920, $1.0355;
1921 (January), $1.2729; the East
River Gas Company of Long Island,
1919, $1.1048, and 1920, $1.1560; the
New Amsterdam Gas Company, 191a,
94 47-100 cents. 1920, 51.0231; the
New York Mutual Gas Light Company,
1919, $1.0076; 1920, $1.2510, and 1921
(January), $1.2946.
Mrs. Hazlett Pelted
With Pastry in Iowa
i New York Socialist Lecturer
Ordered Off Streets of Boone
After Clash
BOONE, Iowa, July 29.?Mrs. Ida j
Crouch Hazlett, national Socialist :
lecturer from New York, was pelted.
with pastry and ordered off the streets
of Boone last night when she was al?
leged to have criticised the present
form of rovernment in the United
members of the local American Legion
post and supporters of Mrs. Hazlett
clashed.
In the midst of the trouble the city
and county authorities ordered Mrs.
nounced she wonld make another at?
tempt to speak to-night.
Mrs. Hazlett recently made two at?
tempts to speak in Des Moines, both
meetings being interrupted by op?
ponents.
au
?f-?1
Tighe Record Shows 3
Assaults, 2 on Women
State Senator Schuyler M. Meyer
made public yesterday what he had
learned from police records concern?
ing charges made against Patrolman
Charies F. Tighe, Chief Inspector
Lahey's plainclothes man, who is said
\ to have maltrea'.ed more than th:rty
men, women and children on Thurs?
day. Senator Meyer pointed out that
despite numerous convictions at po?
lice triais since Enright had been
Police Commissioner, Tigre had re?
mained on the force. The record fol?
lows:
March 15, 1918?Absent from post
and drunk in subway station. Repri?
manded. '
May IS. 1918?Drank in police sta?
tion. Reprimanded.
March 13, 1919?Assaulted man.
Reprimanded.
August 19, 1919?Six witnesses
testified Tighe struck a woman while
she was trying to succe*"" a child.
Found not guilty.
August 27, 1919?Beat up woman
ab police station with night stick.
Found guilty. Suspended for six
months.
August 27, 1919 (samo day as
above)?Beat up man with night?
stick. Made false arrest. Found
guilty. Fined one day's pay, $7.
?I-1
I
Lockwood to
Quit Unless
Partv Unites
j
(Continued from pago on?T~
j smiling and unruffled when seen at 5
j o'clock in the afternoon, just before he
i left for the beach.
"I have made it perfectly plain to
j the people who have come to see me
i about running for Mayor," said he,
i "that I would insist upon the solid
' support of the Republican party if I
was to enter the race. The Republi?
can leaders who came to see me were
kind enough to say that I seemed to
be the most available man for the
j head of the ticket. There isn't any
| doubt about the ability of the Repub
! lican organization to put over their
i choice for the city ticket. They can
| do it in every election district, in ev
j cry Assembly district, in every county
J and in the citv as a whole if they get
behind a Republican who is qualified
for the post. They cculd do it for
others.
' "If there should be four candidates
for Mayor in the primary there is no
doubt whatever that the Republican
j organization candidate will win out.
; When the leaders saw me last week I
j was assjfr?d that there would be no
sniping by Republicans, but on Tues?
day and Wednesday we discovered not
only sniping, but that some gentle?
men had brought, along gatling guns."
Koenig Consults Committee.
Samuel S. Koenig, the New York
County Republican leader, held a ses?
sion with various members of his ex?
ecutive committee in his office in Maiden
Lane yesterday. Friends of Borough
President Curran among the leaders
| wanted to know why Mr. Koenig had
! s.wung away from Major Curran and
\ favored Senator Lockwood.
Mr. Ko>?*Tg told them that Brooklyn
j had the largest enrollment; that on
j account of Mayor Hylan living there it
j would be the battle ground; that it
j was of prime necessity to name a man
i who would poll the greatest vote in
j the primaries, now that Judge Haskell
I has entered the race, and that it
i ?
seemed desirable to pick a man from
Brooklyn, provided the Brock;yn or?
ganizations were united for one man.
Among those present at tne confer?
ence were Coliin H. Woodward, Albert
J. Berwin, Charles K. Heycit, Charles
Largy, Wiiiiani Chiivers, Antun o Del?
lessandro, Robert E. Lewis and RoberS
Oppenhpim.
President Koenig leave-* to-day to at- '
tend the Pilgrim celebration at Piy-?
mcM'-h.
Mrs. Rebecca Kohut. or Broas.:'?:-',
and Eighty-sixth Street. yesterdaytsen?
her resignation as a member at the
coalition committee tfl Mr. Price, an 1 j
announcing her intention e*f working
for the designation in the Republics':
primaries of Maior La Guardia for.
Mayor. This is -the fifth resignation ,
from the committee.
Enright Asks
Tig he Arrest
For Rampage
'Conrlnuod fn?m pao? on*)
were dismissed by Magistrate Nolan,
who denounced the arrests S3 as
warranted The women who displayed
their torn clothing and demanded that
Tighe be arrested were unceremoni?
ously told to go home.
Further attempts were made yester?
day by the police at the Fcrty-seventh
Street station to hush up the inci?
dent. The men on duty refused to maka
known the contents of the reports
made by Tighe and Kauffman. This
policy of suppression of official facts
concerning the alleged outrage was al?
so carried out at Inspector Lahey's
office. Attach?s of the office ordered
reporters from the corridor when the
hearing was in progress and there wa?
a general effort made at Police Head?
quarters to cover up the scandal.
Detective Tighe is thirty-six years
old. married, and lives at 2742 Eighth
Avenue. He was appointed July 6, |
1912, and became one of Inspector
Lahey's favorites about nine months
ago. j
Jeisev
^nf?#
Vit
tim?
to
L-cave New
York on
E astern
Stan dard
Timts.
WEEK DAYS
Leave
W. 23rd St.
7.C5 a.m.
8.47 a.m.
?0.15 a.m.
12.45 p.m.
1.45 p.m.
2.45 p.m.
3.45 p.m.
4.47 p.m.
fi.45 p.m.
Leave
Liberty S?.
6.30 a.m.
7.30 a.rc
9.00 a.m
11.CO a.m.
1.00 p.m.
2.00 p je
3.00 p.m.
4.00 p.m.
5.00 p.m.
".00 p.m.
11.10 p.m.
Dining-Club Cai-a on train-,
1 rorn Liberty Street at 6.30
a.m.. 7.30 a.on., 11 a_m.,
4 p.m., 5 p.m.
Sleeping cars orn the 11.10
p.m. train from Liberty Sr.
may be (occupied 9 p.m. to
7 a.m.
SUNDAYS
I^-ve W. 23rd St.?9.47 s.m
1-47. 3.47,5.47, 4.47,7.47 p.m!
Leave Liberty St. ? 10.00
a.m.. 2.00, 4.00. 6.00. 7.00,
8.00. ?L1.0 p.m.
Time Table? and clocks of
<** New Jersey Central
wtil (how Eastern Stand?
ard Time, which is one
hour earlier than Day.
Light Saving Time.
Store Open (?All 'Day!
demons
?stallith*J l8?8
39? & BROADWAY
^
To-day?3rd ^ay!
semi-annual
Half Price Sale
Men's and Young Men's t?
_s^_ ?__* -r T_r -????r^ _r^i r
Reduced from 1^50
Allour**38 $-|Q
Suits wow JLjf
This is one of the few times that
a store can truthfully state that it
is losing money on every suit sold
Going Abroad?
78 passenger vessels scheduled for all ports in ths
world are listed among the 348 passenger and freight
vessels in to-day's New York Tribune
Shipping and Travel Guide j