Evening star. [volume], December 12, 1930, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
WEATHER.
CO. S. Weather Bureau Forecast.)
Partly cloudy tonight; minimum tem
perature about 34 degrees; tomorrow
fair and slightly colder. Temperatures
—Highest, sl, at 4:30 p.m. yesterday:
lowest, 36, at 7:40 am. today.
Pull report on page 9.
Closing N.Y. Markets, Piges 13,14 &15
No. 31,636.
HOUSE REFUSES
SENATE CHANGES
IN BILL FOit RELIEF
Conference Asked on Meas
ure Passed With sllß,-
000,000 for Public Works.
EXECUTIVE’S CONTROL
OVER FUNDS LIMITED
Another Flare of Row With Hoover
Threatened, but Trace
May Block It.
By the Associated Press.
The House today refused to accept
the Senate amendments to the sllß,-
000,000 unemployment emergency pub
lic works bill and asked for a con
ference.
The Couzens amendment stipulating
that only workers who had lived 90 days
In the vicinity of the projects could be
employed by contractors met strong
objection among administration lead
ers. The increase of $8,000,000 for high
way construction on unreserved lands
Is not strongly opposed.
Reports Stir Senators.
foiscord between President Hoover
and the Senate threatened to flare
again today, reports reaching the
Capitol that President Hoover contem
plated another statement against -the
foes of his relief program The death
of Senator Overman of North Carolina
may bring a truce, however.
The Senate In passing the emergency
$118,000,000 public Improvements ap
propriation yesterday struck from the
bill without opposition a provision giv
ing Mr. Hoover a free hand If necessary
In the use of the money.
About the same time, Republican
leaders at a conference decided to call
upon the President to co-operate with
thelh on tactics hereafter in return for
co-operation he was demanding from
them.
Watson Conveys Views.
Senator Vfatson of Indiana, the party
leader, informed Mr. Hoover the Repub
licans felt they should be consulted
about any future statements if they are
going to be called upon to defend them.
Word also was given to the White
House that the Senate leadership is
more concerned In avoiding an extra
session than In spending hours in de
fensive debate.
„ However, the Senate Republicans are
determined to pinSQe Mr. -Hoover's re
quest for confining relief legislation
within limits of the Treasury and ate
gathering their forces to insure that.
House administration leaden are
pushing plans for engineering through
that group the drought-relief bill passed
by the Senate last week.
. Speaker Longworth said the drought
legislation would be called up in the
House early next week, amended from
the Senate's $80,000,000, to the $30,000.-
000 favored by the House Agriculture
Commltee. It probably will be debated
under a rule barring amendments sub
mitted from the floor. In effect, this
would prevent a House vote on the
larger Senate figure.
Experts $• Be Heard.
At the President’! suggestion Chair
man Wood of the JEmergency Employ
ment Committee arm other Government
men working on related problems are to
be heard by the various Benate com
mittees which have before them relief
proposals of various types. This sug
gestion was communicated to Senator
Watson. The Idea was viewed as a
means of getting clearly before.the Sen
ate the administration's reasons for
what It wishes done or left undone.
Even though prospect Is slight that
any relief legislation distinctly objec
tionable to the administration will be
passed by the Senate, a good measure
of debate and full consideration far the
many proposals Is in sight.
BLANTON ANDGRIFFIN
TO GIVE TESTIMONY
Chairman Mapes Clears Mystery
Concerning Fiscal Relations
Witnesses.
Chairman Mapes of the special com
mittee which is conducting hearings on
the fiscal relations between the federal
Government and the National Capital
cleared up the mystery today as to who
the two members of Congress are who
have asked to be heard when the com
mittee resumes its sessions tomorrow
morning at 9:45 o'clock.
They are Thomas L. Blanton. Demo
crat, of Texas, and Representative An
thony J. Griffin, Democrat, of New
York, a member of the subcommittee
which drafts the District appropriation
bill, and who has been a strong pro
testant against the lump-sum contribu
tion for flnsneing the District govern
ment.
The third witness invited to testify
tomorrow morning is L. A. Carruthers,
speaking for the Federation of Cit
izens' Associations, following Dr. George
C. Havenner, president of the associa
tion, and a research man with the
United States Bureau of Efficiency, who
testified yesterday.
GIVEN 10 YEARS
Two Convicted of Manslaughter in
Carolina Sheriff's Death.
GREENVILLE, 6. C„ December 13
—Carlos Rector and J. Harmon
Moore, convicted of manslaughter of
Sheriff Bam Willis, today were sen
tenced to 10 years' imprisonment after
withdrawing a motion for a new trial.
Rector, a State constable, was ap
pointed sheriff by Gov. John G. Rich
ards after Sheriff Willis was shot to
death In his yard by an assassin the
night of June 11, 1927. Moore served
under rector as a deputy.
RASKOB’S SON WEDS
NORTH CHELMSFORD. Maas.. De
cember 12 (A*).—John J. Raskob. Jr.; of
New York, and Miss Minerva Aafonson
of New Haven were married today at
the rectory of St. John's Catholic
Church o l North Chelmsford.
/
Entered as second class matter
post office. Washington. D. C.
Hold-up Men Obtain
Embalming Fluid,
Mistaken for Rum
By the Associated Pres*.
CHICAGO, December 12.—The
police were told today by Robert
Kirkham, an undertaker’s assist
ant, that they should have no
trouble finding the two men who
held him up last night if they
drink the liquid they took from
him, thinking It Is moonshine.
"Why?” asked a policeman.
“Because,” said Kirkham, "what
they took Is embalming fluid.”
SENATOR OVERMAN
UIES AT AGE OF 76
North Carolinian Expires
Here After Illness of Less
Than Week.
Senator Lee S. Overman, Democrat,
of North Carolina, died early today
after a brief illness, in his apartment
at the Shoreham Hotel.
His death ended a long and distin
guished career in the Senate, where the
white-haired veteran from North Caro
lina had occupied a seat for nearly
28 years, endearing himself to those
who have come and gone In the halls of
Congress during that time.
The end came shortly after last mid
night after an illness of less than a
week. He was 76 years of age. At his
bedside were Mrs. Overman and one
daughter, Mrs. E. N. Show of this city.
Two other daughters, Mrs. E. C. Gregory
and Mrs. Gilbert Hambley, arrived In
Washington today from Salisbury, N. C.
Senate Adjourns.
As a mark of respect to the memory
of Senator Overman the Senate ad
journed until Monday after adopting,
resolutions of regret and making ar
rangements for funeral exercises in the
Senate chamber at 8 o'clock tonight.
Showing plainly the grief he felt at
the sudden death of his veteran col
league, Senator Simmons of North Caro
lina paid a brief tribute to the life and
character of Senator Overman before
the Senate adjourned a few minutes
after noon. The two floor leaders, Sena
tor Watson, Republican, of Indiana,
and Senator Robinson. Democrat, of
Arkansas, also expressed briefly the sor
row felt by members of the Senate and
called attention to the exercises to be
held tonight.
The body of Senator Overman will be
brought to the Senate chamber tonight.
Rev Dr. Z. B. Phillips, the Senate
chaplain, will have charge of the
services.
Will Go to Salisbury.
Following the services, the body will
be conducted to Salisbury, N. C„ by a
Senate committee and members of the
family for burial there. '
The resolution* adopted by the Sen
ate on motion of Senator Simmon* pro
vide for the extending of Invitations to
attend the services tonight to President
Hoover, other high officials of this Gov
ernment and the diplomatic corps.
Vice President Curtis appointed the
following committee: Sasaitors Simmons
of North Carolina. Watson of Indiana,
Robinson of Arkansas, Smoot of Utah,
Fletcher of Florida, Borah of Idaho. !
Smith of South Carolina, Jones of '
Washington. Swanson of Virginia. Norris
of Nebraska. Ransdell of Louisiana,
Sheppard of Texas, Hale of Maine, j
Johnson of California, Harris of Georgia, j
Moses of New Hampshire, McKellar of
Tennessee, McNary of Oregon, Walsh of
Massachusetts, Phipps of Colorado and
Shortrldge of California. •
At Office Monday.
The veteran North Carolinian had
remained active In his legislative duties
almost to his lest monvent. He was
at his office all day Monday, and even i
after that day he continued to keep I
In touch with senatorial matters from :
his home.
He had suffered a slight attack of '
indigestion a week ago, but was able to
return to his office, only to be stricken
again. However, he had been thought
on the road to recovery until yesterday
afternoon he suffered a severe hemor
rhage of the stomach.
He rallied after a blood transfusion
and had been conscious during the eve
ning. chatting with his physician. Dr.
Sterling Ruffin, and with his son-in-law,
E. N. Snow of Washington.
Despite his advanced age, Senator
Overman was diligent in his attendance
at sessions of the Senate to the last.
Members of the Senate, particularly
these who had served beside him for
more than a quarter of a century, will
miss him from his accustomed place on
the center aisle, his kindly manner al- !
ways with him.
Would Have Been Dean.
If Senator Overman had lived a few
months longer, until March 4, he would
have become dean of the Senate in
point of service. At his death he ranked
second only to his colleague. Senator
Furmfold M. Simmons, who terminates
( a long career In the Senate at the end
of the present session. The death of
Senator Overman will make Senator
Reed Smoot, Republican, of Utah dean
after Senator Simmons leaves in March.
Senator Overman came to the Senate
March 4, 1903, two years after Senator
! Simmons.
1 Senator Overman reached the peak
' of his long legislative career during the
; trying days of the World War, when he
: took a leading part In the framing of
I important legislation relating to the
I conflict He was one of the men Presl
! dent Wilson turned to for consultation,
j The Overman bill giving the Presi
■ dent unusual powers lor the prosecution
; I of the World War, his work as chair
(Continued on Page 2. Column 6.) ~
, -
NEW YORK POLICE BUY PAGE AD
TO OFFSET RECENT CRITICISMS
#
Benevolent Association Asks That Force Be Not Con
demned for Acts of Few Members.
Sr the Associated Press. *
NEW YORK, December 12.—The New
York police force took full-page adver
tising space in this morning's news
papers to tell "the good people of New
York." as the advertisement is headed,
the policeman is by no means as black
as he has been painted. The advertise
ment says it is prompted by "recent
published reflections upon the integrity
of members of the police force appear
ing in the editorial and news columns
of the press.” ,
It is signed by the Patrolmen's Benev
olent Association. Inc., and it outlines
the problems of policing a city the size
of New York.
i ‘The average patrolman," it states,
• • * la conscious of the fact that
ffoetiitra Skf.
V v J y > WITH SUNDAY MGTRNINQa IDITION L/
WASHINGTON, D. C., FRIDAY, DECEMBER 12, 1930-SIXTY PAGES. ***
SMI CO. GHARTER
READ PREPARATORY
TO Pins DEFENSE
Accounting Expert Refutes
Embezzlement Charges .
in 30 Instances.
OTHER ACCOUNTANTS
ARE TO BE SUMMONED
Attorney Cites Authority Granted
Officials to Be Financially Inter
ested in Subsidiary Corporations.
The defense in the F. H. Smith Co.
conspiracy trial, now under way In Dis
trict Supreme Court, today laid the
groundwork for its contention that
O Bryan Pitts was entitled to surplus
money in the treasuries of various sub
sidiary corporations of the company.
The defendants —Pitts, C. Elbert An
adale and John H. Edwards, Jr., all
former officers of the Smith company—
are accused of embezzling the corpora
tion's funds and of destroying Its
records.
Reads From Company Charter.
Frank G. Raichle of defense counsel,
read to the Jury portions of the Smith
charter which accords to officials of the
company the privilege of being finan
cially interested in subsidiary corpora
tions. This is forbidden by the char
ters of many corporations and Defense
Attorney Wilton J. Lambert told the
Jury Wednesday the defense would
prove that part of the money allegedly
embezzled by Pitts was, in fact, due
him from surpluses in the treasuries of
certain Smith Co. subsidiaries.
The reading of the charter to the
lury was designed to clear the way foi
introduction of evidence supporting the
claim that Pitts did rightfully receive
money from these corporations.
Defense Expert Testifies.
Most of the morning was taken up
with testimony from H. O. Hart, de
fense accounting expert.
The bulk of the prosecution’s evi
dence has been designed to support the
charges that Pitts and his co-defend
ants In 95 instances embezzled money
belonging to the Smith company.
Charles T. Malone, Department of Jus
tice accountant, took up the separate
Items while on the stand and testified
that in his opinion they represented
embezzlement.
The defense has met this by having
its own accountant take up certain of
these items In an effort to show that
the money involved was not embezzled.
According to the Government, the em
bezzlements were committed through
misappropriation of the proceeds de
rived from the cashing of approximately
250 checks of the Smith Co., Involving
$1,190,000. When court adjourned at
noon, Mr. Hart had testified that, ac
cording to Smith Co. records, in at
least 30 instances cit'd by the Govern
ment the money Involved was not
embezzled. His testimony covered In
all approximately $300,000.
. Found Petty Cash All Bight.
! Hart also said that from his examina
tion of the records, he was convinced
i there was "nothing wrong” with the
petty cash account of the Smith Co,
The instances which Hart discussed
in detail Involved for the most part
money paid Pitts in dividends on the
| preferred stock of the Smith Co. which
he owned. It was brought out that he
; owned 7.979 shares of this stock, of
j which there is a total outstanding of
300.000 shares.
Frank O. Cunningham, clerk of the
court, was called to the stand to intro
duce certain records relating to hotel
; bankruptcy proceedings, which the de
-1 tense will use later in the trial.
Hart Is expected to conclude his dl
i rect testimony this afternoon, when he
will be subjected to cross-examination
by Nugent Dodds, special assistant to
the Attorney General, and Neil Burkin
shaw, assistant United Btates attorney. |
His cross-examination is expected to be
lengthy, and probably will occupy all
of the half-day session tomorrow. After
Hart is through, the defense announced,
other accountants wih be brought' to
the stand. All of the 95 embezzlements
; charged by the Government are to be
taken up In an effort to refute them, It
Is premised.
Pitts is expected to take the stand In
his own.defense early next week. He
probably will be followed by the other
defendants.
29 HURT IN GERMANY
IN 4-CORN ERED CLASH
Social Democratg, Commaniiti.
Fascists and Police Battle,
Wrecking Meeting Hall.
By the Associated Press.
CHEMNITZ, Germany, December
12.—Six polic:men and three Fascists
were seriously Injured today in a four
cornered clash at Mittwelda near here,
among Social Democrats. Communists,
Fascists and the police. A score of the
combattants suffered minor hurts.
Bearing stretchers and first aid kits
in the anticipation of trouble, 100 Social
Democrats and Communists entered a
Fascist meeting hall and a fight re
sulted. The police intervened. Before
p ace was restored the interior of the
hall had been wrecked.
in all groups ofTnen. whether ordained
to the service of Ood or selected for
Btate or business purposes, there may b#
a few who have been unable to resist
the temptations of the moment But to
condemn a church, or a State or a busi
ness for such violations of trust when
there are thousands of conscientious in
dividuals carrying on those institutions
would be unthinkable.
I "He feels it is equally unthinkable to
link even indirectly by innuendo the
• thousands of patrplmen efficiently doing
the city's most important perilous work
with allegations concerning a few of his
comrades who are still to have their day
in court.” „
Certain members of the force have
been involved cesently In vies graft.
P
NEW JERSEY MAN IS APPOINTED
TO BE DISTRICT FIRE MARSHAL
V
Takes Competitive Examina
tion With Better Mark
Than incumbent.
Fear of Non-Residents Being
Favored When Rule Was
Passed Recalled.
Calvin O. Lauber, a resident of New
Jersey and employed in the Underwrit
ers’ Laboratories in New York City, was
r.ppointed by the District Commission
ers today as District fire marshal at a [
salary of $5,000 a year.
The appointment was' the first to be
made under the sy|tem of selection of
fire marshals by competitive examina
tions conducted by the Civil Service
Commission.
This was the second examination to
fill the job held by the commission.
This selection is in no way connected
with the recent order of the Commis
sioners that department heads desiring
to hire employes should consult the
United States Civil service eligibility
list. The Fire Department has been
under civil service rules since 1019.
These rules, however, affect grades only
up to and Including that of captain.
In 1922 it was decided that the post of
superintendent of machinery, which
HOOVER IS ASSURffi
'32 W.C.T.U. BACKING
.Mrs. Ella A. Boole, Organiza
tion President, Pays White
House Call.
| Mrs. Ella A. Boole, president of the
Wcmen's Christian Temperance Union
and chairman of a "board of strategy” ,
appointed by dry leaders to formulate I
a plan of action for the 1932 campaign,;
said after a call at the White House
today that the Women’s Christian Tern- ;
perance Union expects to support Presi
dent Hoover in 1932.
"We told Mr. Hoover,” she said, “that
in the Houston Convention of the W.
C. T. U. there was nothing but high
praise for the way he has stood by the
principles for which the W. C. T. U*
has worked.”
Full Support Promised.
Meanwhile, other dry leaders on the
"board of strategy” studied the prob
lem of how to throw the full force of
the churches to the support of what
they earnestly believe is a moral ques
tion and at the same time discourage
pastors and other church leaders from
participating in partisan politics.
Oliver W. Stewart of Chicago, who
declared before the conference of dry
leaders earlier this week that "the
church, as such, has no place in the
election of a President,” prepared to re
sign from the "Board of Strategy” to
day.
Appointed a member by the National
Conference of Organizations Supporting
’the Eighteenth Amendment, in annual
meeting. Stewart, said the board would
be all right as far as it went, but that
it woujd be ‘“inadequate.”
The statement of Mrs. Boole further
complicated a situation which finds
dry leaders disagreed on what should
be the fundamental policies underlying
the campaign to be waged in the next
presidential election.
New Set-up Required.
I Stewart contended that prohibitionists
can never unite under the leadership
of existing organizations and that the
battle of the 1930 campaign must be
waged by a new set-up. Some of the
temperance organizations, he asserted,
“have passed the stage where they
(Continued on Page 2, Column 2.)
BANK ROBBEDIw FIVE
Pennsylvania Bandits Escape With
$2,500 as-Alarm Bounds.
GIRARDVILLE. Pa., December 12
(A*).—Five ’men, four of whom were
masked and carried revolvers and
sawed-off shotguns, today held up and
robbed the First National Bank of this
place oi $2,500. They fled as the
cashier, A. G. Schreiner, set off a
burglar alarm when told to put up his
hands.
Radio Progress on Ptgs D-8
■ $
.JSfc r
Jg* Ji
CALVIN G. LAUBER.
—Harrls-Ewing Photo.
a
ranks above that of captain, should be
filled by civil service examination, and,
as a result of the examination. Otto E.
Fern, resident of Columbus, Ohio, re
ceived the appointment. This Job also
pays $5,000.
The post of fire marshaK has been
vacant since August 1, 1929, its duties
having been discharged by C. G. Ach
stetter, with the rank of acting fire
marshal. Aohstetter also took-the civil
(Continued on Page 2, Column 2.)
NEW FEDERAL!"
ASKED BY BONNER
Secretary of Power Group
Seeks Reassignment After
Commission Is Protested.
By the Associated Press.
Frank G. Bonner, secretary of the
Power Commission and who has been
at times a center of controversy over
Federal action on waterpower matters,
notified Secretary Wilbur today he was
ready to accept reassignment in the
Government service.
Bonner, addressing Secretary Wilbur
as chairman of the Power Commission,
called attention to the Senate Inter
state Commerce Committee challenging
of nominees for the new commission as
reason for his action.
In a letter ijushed this afternoon to
Chairman CouZens, Bonner declared he
did not desire to be •connected with an
organization to be used as a "political
foot ball.”
A. D. Danziger, New-Orleans attorney,
testified before the committee today at
the request of Gov. Long that Marcel
Garsaud has "no knowledge of experi
ence” to sit on the Federal Power Com
mission.
Danziger, a former president of the
New Orleans Chamber of Commerce,
said Garsaud. who was nominated by
President Hoover, "owes a debt” to R S
Hecht, a director of the Louisiana Serv
ice Corporation, which he said was a
subsidiary of the Electric Bond & Share
Co.
Power Partiality Feared.
Long. Senator-elect from Louisiana,
had previously voiced his opposition to
Garsaud.
‘‘With Col. Garsaud's background we
(Continued on Page 2, Column L)
THE INSIDE STORY OF
Why Sen. Wood j
Did Not Lead i
the A. E. F. |
ji| Gen. Peyton C. March reveals i
| for first time what happened to !
jt| thwart high ambitions of Roose- j
j; velt protege
EXCLUSIVELY IN '
THE STAR'S
MAGAZINE
NEXT SUNDAY
j| Why Gen. Wood did not go to j
France when America entered f
World War.
" * f * * * - *
■ -
ARCHITECTS FAVOR
BAN ON BILLBOARDS
Local Chapter to Support
Any Plan to Clean-up
Nearby Roadsides.
Formal action putting the Washing
ton. D. C., Chapter of the American
Institute of Architects unanimously on
record In support of the civic movement
to banish billboards and roadside ugli
ness from the main highway entrances
to the National Capital was taken at a
meeting of the chapter last night In
the Cosmos Club.
The action of the architects followed
presentation of plans and purposes of
the campaign before the civic section
of the Twentieth Century Club at which
Mrs. Elizabeth Lawton of the American
Civlo Association revealed by means ol
pictures to what extent roadside land
scape la being commercialized m the
vicinity of Washington.
Immediate Need Stressed.
OUbrrt L. Rodier, president of the
local chapter of architects, pretented
the resolution which pledged the chap
ter to back up sponsors of the campaign
in anything undertaken for the pres
ervation of the natural beauty of the
highways from further desecration and
the removal of existing billboards, "il
legal” signs and roadside nuisances.
Mr. Rodier particularly stressed the ne
cessity of accomplishing the purposes
of the campaign before r the opening of
the George Washington bicentennial
celebration In 1932 when upward of
25,000 visitors a day are expected to
arrive in the National Capital.
The Washington chapter of the ar
chitects has been foremost In co-oper
ating with Federal and local authorities
in behalf of beautifying the city ol
Washington and in maintaining strict
zoning regulations. The question ol
the billboard situation, admittedly one
of the -greatest handicaps in preparing
for the great celebration here In 1932,
has been discussed previously by the
local architects at various meetings.
Last night’s action, however, was the
first time this influential body has taken
U up on a formal motion.
Roads Are Commercialised.
"It is a shocking offense to the
public the way the roads are being com
: mercialized,” Mr. Rodier said today In
discussing the purposes of the cam
paign. “If there Is any possible way
to get rid of these objectionable bill
boards and signs before 1932 it would
certainly help a very great deal In get
ting Washington ready for the Bicen
tennial year. The Washington Chapter
of Architects has not considered any
plan of its own, but will give Its whole
hearted support to anything that is
undertaken to beautify the roadsides in
preparation for 1932.”
Through the co-operation of the
American Civic Association the series
of pictures recently taken by Mrs. Law
ton in her survey of conditions within
a 20-mile radius of Washington were
exhibited at the meeting of the archi
tects. While the scenes are perfectly
familiar to most of the members, the
pictures were enlightening as to the ex
tent of the widespread destruction to
scenic beauty along principal highways
and revealed furthermore the possibili
ties of enhancing the landscape by re
moval of signs.
Social Service Is Discussed.
The civic section of the Twentieth
Century Club, comprising many promi
nent. woman leaders In the National
Capital, evinced great Interest In the
(Continued on Page 2, Column 7.)
MONUMENT LIGHT PLANNED
AS SAFETY TO AVIATORS
Experiments to Be Made to Decide Type of Beacon to
Serve for Beauty as Well as Warning.
The Washington Monument, held to
be one of the most serious menaces to
the safety of night-flying aircraft in this
part of the country, may soon be lighted
as a warning to airmen.
Experiments will be made to devise
a type of lighting which not only will
provide ample warning to pilots but
which will Increase the night-time
beauty of the Monument.
First Lieut. F. B. Butler, assistant
director of public buildings and public
parks, said today that a tentative so
lution of the problem has been reached,
though no date has been set for actual
experiments. Prominent electrical con
cerns are co-operating with his office
in an effort to obtain the desired effect.
At present the Washington Monu
ment’s top is lighted by the projection
ol a searchlight beam from the eastern
end of the Navy Building. Seventeenth
and B streets.
3
■ -
■ ! '
“From Press to Home
Within the Hour 99
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.
Yesterday’s Circulation, 115,775
Means Associated Press.
CONFESSES THEFT
OF MILLIONS FROM
LOANJNSTITUTION
Manager of Hollywood Firm
Admits Peculations Cov
ered 9-Year Period.
DIRECTORS ASSERT SUM
MAY REACH $8,000,000
#
Association Was Allied With Bank
Which Failed to Open
on Monday.
By th« Associated Press.
HOLLYWOOD. Calif., December 13.
—Charles A. Whitmore, building and
loan commissioner, announced today
that defalcations totaling several mil
lion dollars from the Quaranty Build
ing St Loan Association were admitted
in a written confession by Gilbert
Beesemyer, 45. its secretary manager.
Directors of the association said
Beesemyer's misappropriations might
aggregate 98,000,000. They were said
to have affected not only the associa
tion, in which he was a 65 per cent
stockholder, but also the North Amer
ican Bond St Mortgage Co. and the
Guaranty Holding Corporation, both of
Los Angeles. Beesemyer was described
as having been a director of the lat
ter concerns.
The confession, Whitmore said, was
given to him and to directors of the
association early today, after which
Beesemyer was taken into custody. He
was with grand theft. Whit
more said the confession disclosed the
most amazing and elaborate pecula
tions of their kind in California in
recent years. Beesemyer said the ab
stractions were made over a period of
nine years.
The building and loan association was
capitalized at ti 1,000,000, but officials
said its deposits exceeded that figure.
It was allied with the Bank of Holly
wood, a relatively new institution, which
failed to open its doors Monday.
Should Not Shake Confidence.
Whitmore said:
“The loss is certain to be very great.
While this is the largest defalcation in
recent years aad comes at a time of
unrest, 1 nevertheless it should not be
allowed to shake public confidence in
the building and loan business.”
Whitmore said his department would
take charge of the Guaranty Building
dc Loan Association and liquidate the
remaining assets for the benefit of de
positors.
Beesemyer had been a leader in the
building and loan movement here since
1931 and was a director of many such
organizations as well as Industrial firms.
The association had 30,000 depositors.
Whitmore said Examiner Milton O.
Shaw, who was transferred here from
San Francisco, discovered discrepancies
in the association's books. His findings
were presented last night to the board
of directors of the assoclalon, after
which Beesemyer arose, directors said,
and stated he had caused the trouble.
“How much was the defalcation?”
one director asked. "More than you
think,” he answered.
The directors guessed $1,500,000.
"More than that several millions,”
Beesemyer was quoted as saying.
"I am a dirty crook.”
Loaned $40,009 To Friends.
Beesemyer then launched into details
of his operations, Whitmore said, stat
ing he withdrew the amounts as over
drafts, loaning $40,000 to friends who
approached him with hard luck stories
and investing two years ago $2,000,000
in the promotion of an oil company
with the hope of regaining the amounts
taken.
Whitmore said the exact amount of
misappropriations could not be de
(Continued on Page 2, Column 8.)
AMERICAN AVIATOR
RELEASED BY CHILE
Beed Smith, Held Since Recent
Revolutionary Attempt,
Freed on Appeal.
By the Associated Press.
CONCEPCION, Chile, December 12.
The appellate court-martial today ap
proved the release of the American
aviator, Reed Smith, who was arrested
om charges that he participated in the
recent revolutionary attempt.
Smith and another American flyer,
Edward O. De Larm, were arrested to
gether, but De Larm, who comes from
San Francisco, escaped and made his
way to Buenos Aires in a 500-mile trip
during which he endured considerable
hardship.
Bmith, whose home is Reidsvllle, N. C.,
was De Larm’s mechanic. He spent a
brief time in prison, but was released
under ball last month with a court
recommendation that he be acquitted.
Today’s decision by the appellate court
gives him his complete liberty.
This Is regarded as Insufficient and.
even though the four sides were bathed
in light, it still would be necessary to
have a light on the top to provide
adequate lighting for aviators under all
conditions of weather and mist, In the
opinion of the engineers.
Lighting of the Capitol dome became
necessary some months ago after sev
eral pilots had narrowly escaped col
lisions while dropping in for landings
at Bolling Field. The dome Is in the
line of flight of pilots approaching the
Army field, which is used by airmail
planes on night runs.
The Washington Monument is said to
constitute an avail greater hazard to
planes apnroaching Washington-Hoover
Airport, me terminal foriSiu air pas
senger #nes.j several of whlem operate
passenger planes after dark. On sev
eral oaeasions, especially with a light
mist lit the air, pilots have beia un
able te locate the Monument,
r \
TWO CENTS
CUBA CALM UNDER
RIGID POLICE RULE
AFTEROUTBREAKS
President Machado Denies
He Will Resign—Constitu
tion Suspended.
U. S. EMBASSY SPIKES
RUMOR OF WARSHIP CALL
But Virtual Martial Law Condi
tioni Held to Indicate Seri
ousness in Situation.
By the Associated Press.
HAVANA, December 12.—Cuba went
about it* business today with no out
ward indication that the constitution
had been suspended from one end of
the island to the other. Police re
mained in charge but there had been
no necessity for calling out troops, al
though the country is virtually under
martial law.
Street gatherings are forbidden,
largly as a result of yesterday’s dis
turbances in which many arrests were
made and one man waa fatally wounded.
Today the police arrested the publisher
and art director of the weekly maga
zine, Karikato, on charges growing out
of a cartoon in the current number of
the publication.
Country Wants Feace.
Serious as the political situation is to
all Cubans, the country Is anxious for
a speedy return of peace in view of the
approach of the Winter tourist season
The races begin at Oriental Park on
December 20 and the National Casino
is scheduled to open the day before
Christmas. Business men have begun
to fear that the season will be a fail
ure unless the present situation Is eased.
Meanwhile the government sat back
to await the next move of Its oppon
€lll4.
Reports that President Machado had
tendered his resignation to the Supreme
Court were denied by the President and
the American embassy branded aa ”ut
terly false” stories that it had asked
that two crullers be sent here from
Guantanamo to protect American In
ttifiti.
i T^ le suspension qf the constitution
is similar to that effected In Havana
and environs for a 20-day period, Just
ended, when student disturbances here
threatened the government, it allows
Imprisonment without trill, suspends
free speech and Invokes other summary
measures. '
Physicians Make Itelli
Meanwhile, 300 physicians, voicing
protest at conditions, voted to “strike*
ts the government makes good Its threat
to imprison professors of the notional
university who support the leaders of
recent disturbances. The doctors said
they would neither answer sick calls
nor Issue prescriptions.
Six students were Injured In
In Havana yesterday prior to the Pres
ldent’B action. No disorders were re
ported after the suspension.
Dr. Ricardo Herrera, minister pleni
potentiary and personal secretary to
President Machado, said of the sua
peelon:
“It is merely a means to insure peace
In Cuba during those weeks when
trouble seems to have increased. The
President Is determined that order shall
prevail.”
In denying that he had resigned, the
President sa*d: “I have not resigned
and I am not thinking of resigning. I
see no reason for giving consideration
to such a move on my part.”
C. S. Envoy Informed.
The suspension came close upon a
meeting of the cabinet at which Harry
F. Guggenheim. American Ambassador,
was understood to have been present.
The resignation of Miguel Angel Campa
as attorney general, the latest of a long
list of cabinet changes during the week,
was announced at the meeting.
Among clashes yesterday was one at
Guantanamo, where students bombard
ed the Catholic school with tomatoes
when its faculty refused to close the
institution. Three bombs were discov
ered in the provincial institute at Santa
Clara. A bomb exploded at Matanza*.
The Camaguey Normal School, where
students fought with the rural guard
Wednesday, closed yesterday.
U. S. POLICY UNCHANGED.
Stlmson Scoffs at Report of Envoy at
Cabinet Meeting.
By the Associated Press.
Continuance of the previously an
nounced policy of the American Gov
ernment to remain aloof from Internal
Cuban affairs was announced today by
Secretary Stimson.
The Secretary scoffed at reports Am
bassador Guggenheim had attended a
meeting of the cabinet in Havana, say
ing this would be contrary to American
policy.
Questioned on events in the island
republic, the Secretary said Ambas
sador Guggenheim had merely reported
on the Government's action In sus
pending constitutional guarantees.
His reports were said not to con
cern any question of the resignation
of President Machado.
Ambassador Ferrara conferred at the
State Department with Francis White,
Assistant Secretary of State for Latin
American affairs. White reported fully
to the Secretary on the question, but
Stlmson declined to disclose the nature
of the conversation.
The department is keeping In the
closest possible touch with the situ
ation.
GERMANY RULES OUT
ANOTHER WAR MOVIE
“Steel Helmets,” Film of Nation’s
Legion, Regarded as Creating
Wrong Impression.
<
By th« Associated Press.
BERLIN. December 12. Another
“war” movie was ruled out of Berlin
today when the city’s board of film
censors forbade the showing of a reel
depicting the “Steel Helmets” national
rally last May. The chairman, dissent
ing. said he would appeal to the su
preme film board.
The “Steel Helmets” Is a sort of
American Legion in Germany. The Ber
lin board feared the picture might cre
ate an impression that Germany Is
getting ready for another war. The
national censor yesterday placed a
taboo on the picture “All Quiet on the
Western Front.”
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