Newspaper Page Text
<U. 8. Weather Bureau Forecast.) Fair, not quite so warm tonight; to morrow partly cloudy. Temperatures: Highest, 01, at 4 p.m. yesterday; lowest, 73. at 6 a.m. today. Full report on page 11. Closing N. Y. Markets, Pages 14 and 15 -»»• oi 1/10 Entered as second clans matter ol,! I !*'. post office. Washington. D. CV MORGAN IN LONDON 10 HELP MEDIATE DEBT DIFFICULTIES Report Confirmed That U. S. Captialist Is in British Banking Office. SNOWDEN ASKS PARLEY DELAY UNTIL WEDNESDAY MacDonald Gives Chancellor Back ing in Demand for Flan’s Revision. i By the Associated Press. LONDON, August 12.—J. P. Mor gan was authoritatively stated to be In the offices of his London banking house this morning. The Associated Press learned this after investi gating reports he was at or en route to The Hague to mediate in the deadlock between the British and other allied delegations at the reparations conference. THE HAGUE, Netherlands, August 12 (#). —A crisis in the reparations con ference was averted today by adjourn ment of the financial committee meet ing until Wednesday and rumors were rife that the delay was intended to give J. P. Morgan, American banker, an op portunity to exercise mediating in fluence. Louis Loucheur, French delegate, had been listed to speak at today’s meeting of the financial committee, which was to have taken up the proposal of Philip Snowden, chancellor of the exchequer of Great Britain, looking toward re vision of the Young plan. Chancellor Snowden, after several minor speeches had been made on the question of payments in kind, suggested that the meeting be adjourned until Wednesday. This was rather a surprise in view of the desire he had expressed Saturday to leave The Hague as soon as possible. Gives Morgan Time. Reparations circles were alive with rumors that Chancellor Snowden’s pro posal was intended to give Mr. Morgan, who was one of the American represent atives at the Paris experts’ conference which framed the Youong plan, time to exercise mediating influence. It was even reported that the Amer ican banker Already was at The Hague or had been here in consultation with the delegates secretly. Thus far this afternoon no delegate could be found who would confirm the reports, while Edwin e. Wilson, first secretary of the American embassy in Paris, and American observer at the present conference, stated that he was unaware of Mr. Morgan’s whereabouts or intentions. Chancellor Snowden today made pub lic the text of a cablegram received by him from Ramsay MacDonald, British prime minister, indorsing his stand at the reparations conference. MacDonald’s Message. The cablegram said: ’ The financial committee of the rep arations conference will make a most serious mistake and may wTeck imme diate prospects of settlement unless they understand quite finally that the experts’ report (that adopted at Paris embodying the Young plan) requires readjustment to meet the Just claims of tlris country. "Irrespective of party or section, the country supports the case you have made. Every newspaper as far as I have seen backs you. All parties in the House of Commons stand by you. “Hope most sincerely your colleagues on the financial commission will see that they have to face a position when the most elementary consideration of fair play as between country and coun try compel reconsideration -of some of the recommendations of the experts’ re port. “Our action hitherto in promoting settlement of Europe on a basis of good will is proof we wish this conference to succeed both on its political and its financial sides, but we have reached the limits of inequitable burden bearing.” Tension Lessened. Although outwardly there was today a alight lessening of tension between Brit ain on the one hand and the delegations of France, Italy and Belgium on the other, particularly France, in the light of developments few believed the crisis in the affairs of the conference, averted Saturday, could be long postponed. There was little doubt Mr. Snowden would demand immediate consideration of his resolution seeking revision of the Young plan once general discussion of that plan was completed by the finan cial committee of the conference. The discussion, /continuing today, was ex pected to be terminated within a few hours. Inevitable rejection faced the resolu tion. after which few could see how the British delegation could remain at the conference. Mr. Snowden has remarked he wished to know promptly what the nations Intended doing about it, since he did not Intend to spend the rest of his days at The Hague. Outwardly ill feeling aroused by Mr. Bnowden’s use Saturday of the English words “grotesque” and “ridiculous” with reference to a summation of Britain’s position by Henri Cheron, French finance minister, has been allayed with tacit apologies by the British chancellor. The political committee of the repara tions conference today began discus sion of a possible date for the begin ning of evacuation of the Rhine. U. S. FLYIR HOPS OFF FOR AGUACALIENTE By the Associated Press. LOS ANGELES, August 12.—Munici pal airport officials today announced that Tex Rankin, American aviator, had hopped off at Vancouver, British Columbia, at 4:4$ o'clock this morning, on an attempted non-stop flight to Aguacaliente, Mexico. Rankin is using an SO-horsepower machine, the Three Flags. He expect ed to reach his objective some time this afternoon. Rankin was frustrated by mist and smoke from starting on the 1,300-mile air journey early yesterday. Slate Newt, Pages 10 and 11 I EASILY OBTAINED BREWING PERMITS HELD SOURCE OF ‘SHOT’ AND ‘NEEDLED’ BEER i Mrs. Willebrandt Tells How Tactics of Government Have Allowed Another Big Dry Law Leak. (In this article Mrs. Willebrandt, discussing another type of "leak” in the prohibition dam, tells how bungling tactics on the part of the Government played into the hands of the vy-by-night brewers and en couraged originally honest near-beer manufacturers to evade the law. She describes how beer is “ needled ” and describes the magic "wort.”) BY MABEL WALKER WILLEBRANDT. I have attempted to describe to some extent up to this point sev eral principal sources of supply for the bootleg fraternity, including leaks through the Canadian border and from privileges exercised by holders of permits to manufacture, sell and use denatured alcohol. There has been persistent leakage, too, from breweries scattered about the country. Under existing law, breweries or cereal beverage plants, as they are commonly known, are permitted to manufacture and sell “near beer,” containing not more than one-half of 1 per cent of alcohol. In order to manufacture near beer, however, the process involves the creation, first, of regular beer with an al cohollc content or 5 or 6 per cent, or in some cases, even more. The original prod uct is then dealcoholized—that is, the al cohol is drawn out to one-half of 1 per jR., v - , cent, as established by law. Constant leak- Wt V age of “high-powered” beer has presented authorities with an ever- Alcohol also is “shot” or “needled” into near beer. During the past year an extensive drive against breweries was "A launched in Pennsylvania. Much avail- /VK, A able evidence was brought to light con- • ceming the methods in which breweries in that locality “shot beer,” as the saying •£% £ goes among the beer barons, but, due to injunctions granted by the Federal court u rs iviiiebr.ndt. from interfering with the privilege once granted, some of these establishments still hold permits. The method they use in Pennsylvania is Interesting. Most of the old barons have been driven to cover and forced to operate through (Continued on Page 3. Column 2.) GRAF SET TO LEAVE TOMORROW NIGHT Eckener Announces Every thing in Perfect Order for Tokio Flight. i By th. Associated Press. FRI ED RIQ H SHAFEN, Germany, August 12.—Dr. Hugo Eckener, com mander of the Graf Zeppelin, this after noon ordered the dirigible “cleared for sailing” on the Tokio stage of her flight around the world at 3 a.m. Wednesday (9 p.m. Tuesday, Eastern standard time). He admitted the departure of the big air liner might be delayed by unfavorable weather until the same hour Thursday morning. In any case, the start will be made in the early morning hours, as the low temperature then permits a maximum load of gas. Dr. Eckener made the announcement after getting one of the closest haircuts In his life. The barber who was groom ing him tonsorially persisted in going over the hero of Frledrichshafen’s hair again and again despite Dr. Eckener’s insistence that the haircut was already perfect. “Everything is in perfect order for the entire flight around the world ao far as riecessary permits, visas and other governmental requirements are con cerned,” Dr. Eckener declared. Konte Suggested by Soviet. “The Soviet government has been most obliging In every respect. At the beginning of negotiations the Soviet authorities suggested a certain route over the vast Russian territory to us. We immediately asked them whether this was a prescribed or an optional route. “The Soviets replied this was merely a suggested route based on their meteorological experience. They did not in the least wish to prescribe my course.” Dr. Eckener declared rumors current in Friedrichshafen that the Zeppelin’s departure would be delayed by procras tination of Russia in granting permits to fly over Russian territory were “arrant nonsense.” “There is not the slightest string attached, not even as to where we must enter Russia.” Two Courses Plotted. Two courses have been plotted by Dr. Eckener for the trip, which probably will be the hardest the giant Graf has been called upon to make. One is a northern route across Siberia and the other a southern route. The distance for each is about 6,600 miles. This distance Dr. Eckener expects to cover in about 120 hours, or 5 living days, or at an average speed of 55 miles an hour. ; The average speed on the just com pleted eastward crossing of the Atlantic was more than 75 miles per hour. Both northern and southern routes, 1 it was understood, converged at Chita, 1 Siberia, where the Zeppelin probably 1 will turn southeast to pass over Peiping, 1 ancient Chinese imperial capital, be ; fore heading out across the Chwang-Hai, or Yellow Sea, for Tokio. ' Observers pointed out multiple haz (Oontlnued on Page 2, Column 8.) ■ OVER THE BORDER The futility of periodic “drives” in the border town* while corruption of the officials and stupid departmental jealousies exist is pointed out by Mabel Walker Willebrandt l■ 1 1 ' • • * • ‘ / . -<I. 1 —-former Assistant United States Attorney General in charge of Prohibition, in her remarkable revelation of legal smug* gling across the Canadian frontier, in the 9th article— " The Border Leak” ! —appearing in tomorrow’s issue of ®fje Cbening fttar Mhenittfl WASHINGTON, D. C., MONDAY, AUGUST 12, 1929-TWENTY-EIGHT PAGES. ** BIG SCALE FRUIT MARKETING STARTS Barnes Heads $50,000,000 Organization to Have Na tion-Wide Scope. By the Associated Press. NEW YORK. August 12.—A $50,000,- 000 co-operative marketing organiza tion was preparing today to place the merchandising of fruits and vegetables on a “big business” basis. The new organization, the Nation wide scope of which is indicated by its corporate name, United Growers of America, is the second such combina tion of agricultural co-operatives to be formed since the new Federal Farm Board began to function. The first was the Farmers’ National Grain Corpora tion. Efforts'to Be Co-Ordinated. Announcement of the creation of the organization said its initial work would be the ' co-ordination of the efforts of local and national co-operative groups. The National Growers of America will serve 60 subsidiary organizations in 21 States, the announcement said. Headed by Julius H. Barnes, chair man of the board of the United States Chamber of Commerce, the United Growers will be directed by a group of nationally known men Identified with agriculture and co-operative marketing activities. < Board of Directors. The board of directors includes Wil liam M. Jardine, former Secretary of Agriculture; Robert W. Bingham of Louisville, Arthur R. Rule, executive vice president of the Federated Fruit & Vegetable Growers, a national co operative; Henry W. Jeffers, president of Walker-Gordon Co., milk producers, of New York; John Burgess of Minne apolis, banker for Northwestern co-op erative associations, and Gray Silver of Martlnsburg, W. Va., former lieutenant governor and organizer of the farm bloc in Congress. _ , The announcement said the united Growers had been organized in compli ance with the agricultural marketing act and the Capper-Volstead co-opera tive marketing act. CHINESE BANDITS SEIZE AMERICAN MISSIONARY Authorities Are Requested to Make fivery Effort to Obtain His Release. The United States Minister at Peip ing today informed the State Depart ment that bandits under Wang Chin when driven out of Tung Chang last Friday seized and took with them Henry W. Wesche, an s ionary of the National Holiness Mis sion and when the band was last seen it was fleeing in the direction of Kwang Hslen. The Minister said the Chinese au thorities had been informed of the account and requested to make every ■ effort to obtain the release of Wesche. 0. C. BOARD ORDERS PROBE OF CHARGES AGAINST GALLINGER Investigation Decided Upon After Conference With Welfare Officials. JUDGE’S COMPLAINT CAUSES INVESTIGATION Results of Inquiry to Se Made Public as Soon as Pacts Are Available. After a lengthy conference with public welfare officials today the Board of Dis trict Commissioners ordered a sweep ing inquiry into conditions at Oallinger Municipal Hospital as revealed in public charges made by Judge Katheryn B. Sellers of the Juvenile Court. Assurances were given by the Com missioners that "prompt and full con sideration" would be given to general conditions at the city hospital, partic ularly with reference to the men’s psychopathic ward, in order that a “definite and full reply may be made" to public criticism which has been aimed at the institution. The action of Commissioner Sidney F. Taliaferro and Col. William B. Ladue, engineer commissioner, was taken after an executive conference with James S. Wilson and John Joy Edson, director and chairman, respectively, of the Board of Public Welfare, which has Jurisdic tion over Oallinger Hospital. At the same time the Commissioners coupled with their announcement of an Inquiry a word of confidence In the personnel of the Oallinger staff. Meet for Two Hours. For upward of two hours the public welfare officials were closeted with the two Commissioners, and submitted to them much information bearing on the specific charges made by Judge Sellers and Information about conditions at the hospital from other sources. With the explanation that the situation at the hospital could not be further discussed at this time, the Commissioners made public the following statement: “Public criticism has been made of Oallinger Municipal Hospital, and par ticularly of the men’s division of the psychopathic ward. “The matters specifically referred to, as well as the general condition of the institution, will be given prompt and full consideration in order that definite and full reply may be made. “The medical staff of Gallinger Hos pital is made up of distinguished physi cians and the management is under the Board of Public Welfare, composed (Continued on Page 2, Column 3.) EARTHQUAKE ROCKS 5 EASTERN STATES Western New York Gets Worst of Tremors Also Felt in Canada. Br the Associated Press. A series of earth tremors, varying considerably in intensity and length of duration, rocked portions of five East ern States and one Canadian province today. Quakes were reported at intervals from as far east as Springfield, Mass.; west to Ashtabula, Ohio; south to vari ous points in Pennsylvania and north to ■ Toronto. In most cases the effects of the shocks were confined to the awakening of sleep ers and the violent rattling of windows and dishes, but in Western New York, where the tremor appeared to have reached its maximum intensity, con siderable damage was done. Shocks Last 8 Minutes. Selsmographic readings at Canlsius College, Buffalo, fixed the time of the principal shock at 24 minutes 55 seconds after 7 a.m., Eastern daylight-saving time, the main tremor lasting 12 sec onds and being followed by minor shocks at intervals throughout the next 6 minutes. Reports of shocks from other points, however, fixed the time as early as 3 a.m. In Canandaigua, where the tremors lasted nearly 3 minutes, large apart ment houses were said to have swayed noticeably, and police and fire depart ments were beseiged with telephone calls from terrified householders. In Elmira a woman reported that her bed broke down from the force of the quake. At Alfred dishes and pictures were thrown to the floor during the shock, which lasted about 15 seconds. Earlier at Binghamton. Binghamton reported the earliest experience of the quakes, fixing them between 1 and 3 a.m. Sleeping resi dents were awakened by the violent tilting of their beds, but no damage was reported. Most serious damage was reported from Attica, where one of the walls of the Methodist Episcopal Church was cracked and falling chimneys damaged the roof of the building. A huge chim ney on an Industrial plant at Warsaw, in Wyoming County, collapsed. Rev. John P. Delaney, S. J., head of the seismograph department at Canlsius College, fixed the center of the quake at a point at least 200 miles south of Buffalo. The shocks traversed in a north and south direction, but their course apparently was erratic. The seismograph failed to record the intensity of the shocks, the amplitude of the tremors being so great that the recording needle ran off the record sheet. The quake, according to mete orological observers, was the first to be felt in the Lake Erie area since the St. Lawrence Valley temblor in 1925. Bank Statements ' Washington clearing house, $3,736,- 143.05., . New Vork clearing house' exchange, $602,000,000. New York clearing house balance, $113,000,000. Treasury balance, $126,020,228.15. Radio Programs—Page 18 PICKING A MOSES. CHS TAKE TOLL OF 31 DEAD IN 111 13 in 2 Texas Families Are Killed at Crossing—Air Accidents Claim 6. Thirty-one were killed and seven In jured seriously yesterday In airplane, grade crossing and automobile crashes In various parts of the United States. Two families, totaling 15 members, were almost wiped out when a crack Texas & Pacific Railroad flyer crashed into the truck on which they were rid ing at a grade crossing near Dallas, Tex., killing 13. Six were killed in two airplane acci dents, one in Mississippi and the other in Mew Mexico, with the pilot and two passengers in each plane perishing. Two were killed and five injured seri ously in two 3-way automobile wrecks in Massachusetts and in Maine. Six Chinese were killed when their automobile collided with another near Sacramento, Calif., turned over and burst into flames. Two were injured. Four were killed in a grade-crossing accident in New York, when their car was struck by a Delaware & Hudson engine. TRAIN KILLS 13 TEXANS. All Were Returning From Holiday Jaunt in Dallas on Truck. Br the Associated Press. DALLAS, Tex., August 12.—Thirteen persons, all members of two families living near Masqulte, 20 miles east of Dallas, who had spent the day visiting zoo here, were killed last night when their truck was struck by the Sunshine Special, crack Texas & Pacific train, at a grade crossing leading to the Fordney-Terrill highway. The truck was demolished. Wit nesses said it stalled on the track and was struck broadside. Bodies of the truck’s occupants were found for sev eral hundred yards along the track, (.Continued on Page 2, Column 2.) CHINA RECEIVES U. S. COURT RIGHT NOTE Amerioan Reply la Believed Short of Nanking's Requests in Extraterritoriality Move. Br the Associated Press. NANKING. China, August 12. America’s reply to the redent note of the Chinese Nationalist government seeking abolition of extraterritorial privileges was received at the Nanking foreign office today. ~ The note, which was said to be lengthy, will be handed C. C. Wang, foreign minister, tonight when he ar rives from Shanghai. Although Its con tents were not divulged, It was under stood the United States had*tailed to meet China’s requests. Washington, however, was said to have expressed its willingness to dis cuss the subject further with the Na tionalist government. ■■ PLAN TAKE-OFF TODAY IN ENDURANCE EFFORT Three Chicago Flyer* Want to Break Record of St. Louis Aviators. B r the Associated Press. CHICAGO, August ’l2.—Three avia tors were prepared to take oil “some time today” in an attempt to remain aloft nearly three weeks. They have set for their goal the breaking of thei endurance flight record-of 424 hours re cently made in fit. Inula, by the St. Louis Robin. The Chicago flyers—C. Earl Steele, Russell Mossman and Wilson Herren— have christened their cabin monoplane 1 Chicago—We Will. ■ 1 — RUSSIANS HOP AGAIN. Moscow-to-New York Plape Takes Off From Krasnoyarsk. VERKHNE UDINSK. U. 8. 8. R.. August 12 </P). —'The Rfeian military ' plane Land of the Soviets, flying from Moscow to New York, took off ' from Krasnoyarsk late yesterday. It flew over Irkutsk and after passing over Verkhne Udlnsk, headed for Chita, the city near where the Transsiberlan ; RaUway branches into the Amur line ' and the Chinese Eastern. LINDY WINS HORSESHOE GAME AT HOOVER MOUNTAIN CAMP Drives Car Back to White House, Getting in Ahead of President, Although Taking Late Start. Col. Charles A. Lindbergh won the horseshoe pitching honors over the week end at President Hoover’s camp at the headwaters of the Rapidan River in the Blue Ridge Mountains of Virginia. The noted flyer said that he had not indulged in this sport for aome time, but, according to some of the runners-up In the tournament, he gave no evidence of being out of practice. He seemed to have his eye on the stake at all and had little difficulty throwing ringers when they were most needed. The second honors are said to have gone to Secretary of Agriculture Hyde. Herbert Hoover, jr., and Lieut. Comdr. Joel T. Boone, the White House physician, divided the third honors between them. Some of the players blame their poor showing on the fact that lugging boulders for the dam which President Hoover was building in the stream near the camp had sapped most of their energy. 30 ESCAPE DEATH IN HOTEL BLAZE Washington Woman Is Burn ed as Fire Razes Braddock Heights Hostelry. One Washington woman was burned on the face and neck while fleeing from a fire which early this morning de stroyed the Hotel Braddock, at Brad dock Heights, Md., driving approxi mately 30 scantily clad guests into the street and causing heavy property damage. The resort hotel had at tracted Washingtonians for a number of years. Miss Gertrude Rouech, 1726 M street, returned to her home this morning after being treated in Frederick for the bums on her neck and face. Her purse, containing SIOO, and all of her clothing was destroyed by the fire. Miss Rouech said the fire started on the roof and burned for about an hour before causing the elevators in the hotel to crash to the basement. The noise of the elevators falling attracted the attention of the night clerk. Glad stone Williams, who discovered the fire. Braves Flaming Stairway. “I was awakened about 5 o’clock by Mr. Williams knocking on my door,” Miss Rouech said. “Snatching up a few clothes, I ran into the corridor, which was filled with smoke. The stair way was in flames, but I held my breath and ran down. I hardly felt the bums at the time. “A second after I had reached the street two other Washington girls, dressed only in night clothes, ran down the stairs. Somehow they weren’t burned, but if they had been a minute later the fire on the stairway would have cut off their chance to escape. It was fortunate that the clerk heard the elevators fall, for otherwise many of the guests would have been burned to (death.” .• Two other Washington girls—Miss Kathryn Cunningham and Miss Cath erine Halsllt—were sleeping on the third floor when the fire started. The stair way was in flames when they were awakened, but Williams led them to a fire escape, by which they climbed (Continued on Page 2, Column 4.) GIRL, IN HALTED LEGATION AUTO, STICKS OUT TONGUE AT POLICEMAN I - • ' / ' J Incident at Klingle Bridge Follows Chase and Release of Egyptian Official. Ahmed Mawdouch Moursi, the second secretary of the Egyptian legation, was stopped by Policeman C. It. Smith of the Traffic Bureau at Klingle Bridge on Connecticut avenue last night for the violation of several of the District’s traffic regulations, then released owing hi his diplomatic Immunity, Bmlth re ported to the Traffic Bureau today. Officer Smith said that a car passed him traveling at an excessive speed, at Ttlden street and Connecticut avenue, and that he dropped In behind and paced It to Klingle Bridge, a distance “From Preaa to Home Within the Hour" The Star's carrier system covers every city block and the regular edi tion is delivered to Washington homes as fast as the papers are printed. (fl*) Means Associated Prase. The President himself did not play, but was an enthusiastic rooter on the sidelines. Horseshoe pitching has be come one of the principal forms of sport at the President’s camp since in troduced some three weeks ago. Other diversions include, besides dam build ing in the streams, horseback riding , and hiking about the mountain trails. Col. Lindbergh acted as chauffeur ' lar op * °* the Whit* House cars on (Continued on Page 3, Column 8.) SWEEPING BANKING PROBE SEEN BY NYE Expects Senate Committee to Act Soon Unless Abuses Are Corrected. A sweeping investigation of the whole financial, banking and speculative situ ation may be undertaken by the Senate banking and currency committee within a short time, “unless the banking in terests of the country correct the abuses that have grown up under the present system.” according to Senator Nye of North Dakota. In a statement given out at the office of Senator Nye today, the North Dakota Senator declared that "one of the most important questions which will likely be considered when the Senate meets again will be the banking and financial question. This has been seriously raised by the enormous movement of the country’s money and credit into the channels of speculation, especially speculation in stocks in the Wall Street district." Senator Nye complained particularly of the draining of the country's finan cial resources for the benefit of specu lation on Wall Street. Corrective Efforts Cited. He said: “At the present time, in spite of the attempts of the Federal Reserve Board to cut down the volume of what are known as brokers’ loans in the New York district, the total of those loans recently soared close to $6,000,000,000 In other words, there are loans of this amount on speculative paper, and that vast sum Is being used to promote the operations of the stock market.” The North Dakota Senator called at tention to the efforts of the Federal Reserve Board to curb the gambling on the stock market. He said that it had been demonstrated that it was impos sible to withdraw from the interior of the country the enormous sums now used for speculative, purposes in the New York district without affecting the general credit of the American people. “What has been happening for months,” said Senator Nye, “is that (Continued on Page 2, Column 7.) of about 10 blocks, at a speed of 85 miles an hour. Smith also said that in traversing the distance the car ran through almost all of the safety sones located in the area. He topped it at Kllngle Bridge, where the driver gave the name Ahmed Mtoorsi. 2401 Fifteenth street. Seeing the word diplomatic stamped on the driver’s permit. Smith let him go. but told the Egyptian that he would have to send a report of the Incident to the Traffic Bureau. The policeman said that a girl who was riding in the front seat of the car with the diplomat stuck out her ' : tongue at him as the car drove away. Saturday's Cirealatten, M,775. Sunday’s Circulation, 106,301. POTOMAC POWER PROJECT APPROVED BY GEN. JADWIN Retiring Chief of Engineer) Recommends Preliminary Permit Be Granted. SUBJECT TO PROTECTION FOR PARK DEVELOPMENT Report Holds Question Is Hot ‘‘Perk Versus Power,” but What Hind of Park. Lieut. Gen. Edgar Jadwin, U. S. A., retired, recommended to the Federal Power Commission, Just before he re linqulshed the post of chief of Armj Engineers last week, that the Potomac River Corporation of Wilmington, Del., be granted a preliminary permit, with a view to ultimate power development In the Great Falls area of the Potomaa River, “subject to certain provisions foi protection of navigation and park de« velopment." In making this announcement today, the Federal Power Commission asserted that it is probable that Its own report on the subject of power development at Great Falls, as well as those from the National Capital Park and Planning Commission, and from Gen. Jadwin, will not be made public until they are sent to Congress. In addition to the Jadwin report, the Federal Power Commission has before It a report from Maj. Brehon Somer vell, District engineer for the War De partment in the Washington area, which It Is likewise holding in confi dence at present. It is understood, however, that the Somervell report is in line with the Jadwin report, and that both recommend that power should be developed at Great Falls, in sisting that the question is not one ol “park versus power,” but is a question of having a different kind of park with additional recreational facilities from that desired by the National Capital Park and Planning Commission. Both reports are said to take the view that power and park development can go forward side by side. Weald Permit Inquiry. If the application for a preliminary permit, which Gen. Jadwin has recom mended, should be granted to the Po tomac River Corporation, it would enable the company to begin an investigation of power possibilities at Great Falls, Maj. Glen E. Edgerton, the Power Com mission’s chief engineer, made it clear that the commission is precluded from granting even this, as Congress has re- in quired that no preliminary permit be granted until it has had an opportunity to examine the subject further. Should Congress and the Federal Power Commission decide that a pre liminary permit should be granted, it was explained today that this would not allow the Potomac River Corpora tion to do any construction work, but would merely permit the firm to prove the power possibilities of that region. Should power development at Great Falls be found desirable it would then be necessary for the Potomac River Corporation to seek from the Federal Power Commission an application for a license to begin actual construction for hydro-electric development. Commission’s Announcement. The Federal Power Commission’s an nouncement today on tne Jadwin re port follows: “The reports of the chief of engineers. War Department, on application lor preliminary permits for power develop ment on the Potomac River have been received. The applications involved are that of Messrs. Stineman and Quick for two dams, one at High Island and one at Plummers Island; that of the South Branch Power Co. for certain storage reservoirs and two power plants, one at Great Falls and one at Chain Bridge, and that of the Potomac River Cor poration, which is substantially the same as that of the South Branch Pow er Co., except that it includes also a power plant at Harpers Ferry. “The chief of engineers recommends that a preliminary permit be granted to the Potomac River Corporation, sub ject to certain provisions for the pro tection of navigation and park develop ment and also subject to provision of public resolution No. 67, Seventieth Congress, which prescribes that no per mit shall be issued by the commission until further action has been taken by Congress after consideration of reports to be submitted by the National Capital Park and Planning Commission and the Federal Power Commission. “Report has also been made to this commission by the National Capital (Continued on Page 2, Column 3.) STOCK PRICES GAIN DESPITE RATE RAISE Market Continues Recovery of Sat urday, but Trading Is on Small Scale. By the Associated Press. ' NEW YORK, August 12.—A brisk up turn in prices of several leading stocks characterized the beginning of the new week on the New York Stock Exchange today. United States Steel common rose $7 a share to a record price of $225, and more than a score of utilities, investment rails and high priced stocks were bid up $4 to more than sl2. Trading, however, was comparatively quiet, many traders still remaining somewhat stunned by the startling de velopments of last week, when the New York Federal Reserve Bank raised its rediscount rate to 6 per cent and pre cipitated a wide-open break In security prices. Today’s advances were limited to a selected assortment of issues, such important groups as the coppers and motors failing to participate, x Commercial Solvents, a rather mer curial issue, was bid up $12.25 during the forenoon, Western Union $11.25, American Teleplume and R. H. Macy SB. Atchison, Topeka & Santa Fe common rose $5 to a record price at $282.50, and American Tobacco A and B stocks were sent up $8.50 and $7 to unprecedented levels. Such Issues as Allied Chemical, Auburn Auto, General Public Service, Pacific Lighting, Stone Ss Webster. Co lumbian Carbon, Westlnghouse Electric, . General Electric. Standard Gas & Elec tric, New York Central, Southern Pacific * and National Cash Register rcse $4 to $7, TWO CENTS.