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WEATHER. (IT. 8. Weather Bureau Forecast.) Cloudy with showers tonight and prob ably tomorrow; not much change in temperature. Temperatures—Highest. 66, at 4 p m. yesterday; lowest, 52, at 11 p.m. yesterday. Full report on page 9. Closing N. Y. Markets, Pages 13,14 & 15 No. 31,942. SPANISH CABINET REPORTED RESIGNED AS ZAMORA QUITS IN CHURCH DISPUTE Assembly Votes Amendment! to Constitution Dissolving All Extra-National Orders of Religious Groups. CATHOLICISM REPUDIATED BY REPUBLIC AS ITS FAITH' fist Fight Occurs in Debate on Bill to Nationalize Property Which. Permits Seizure if Forfeiture Is I Considered Benefit to State and J Demands Allegiance. the Associated Press. MADRID, October 14.—Spain’s ! Republican government appeared I to have collapsed this afternoon !With the resignation of President j Riceto Alcala Zamora, which was followed quickly by reports that Jiis whole cabinet also had stepped tout. Reports of the cabinet resigna tion came from persons in a po * isition to know what was going on. The cabinet assembled at the home rs Indalecio Prieto, the finance minis ter, shortly after Senor Alcala Zamora's Resignation was announced. The ministers confirmed the Presi dent's retirement and then, it was re liably reported, decided to indicate their support by following his ex ample. Holds Curb on Clergy Too Strict. The issue which brought about these sudden developments revolves about a difference of opinion concerning the j treatment to be accorded Catholic j orders under the republican constitu tion. whose provisions end the cen tuiies-old official Catholicism of Spain. Senor Alcala Zamora and those who support him contend that regulatory measures governing the activities of the | priesthood should not be too stringent. The attitude of the National Assem bly in the face of the resignations was a matter of guesswork only, but there | was a persistent rumor that Manuel i Aznar, minister of war in the Alcala j Zamora cabinet, might be asked to head ' a new government. Senor Zamora remained at home this ! afternoon preparing the letter of resig- ; nation which will be submitted to the National Assembly. While he was thus at work the cabinet met without him and the reports arose that all would re sign. Zamora’s resignation came six months to the day after he was first provision ally elected to that office. Opposes Dissolution of Orders. He is represented as opposed to the section of the National Assembly in ap proving a constitutional amendment which would dissolve all church orders v end nationalize their property. The repudiation of Catholicism as \ the state religion of Spain was fol- I lowsd today by the incorporation of j the article in the new constitution. The National Assembly, after a stormy | 15-hour session, adopted by a vote of j , E59 to 178 a compromise amendment to | article 24. providing for the dissolution of those orders recognizing a higher authority than the state and those I considered dangerous to the state. It j also stipulates that property may be nationalized where it is deemed bene ficial. The vote was preceded by a long drawn-out debate in which Catholic Deputies proposed 20 other amend ments one by one in order to defend the interests of the church and was followed by an outbreak of fist-fight ing between Catholics and Socialists on the chamber floor. Held Action Too Radical. Article 24. providing for the imme , diate dissolution of ail church orders and the nationalization of their prop erty previously was rejected by a vote of 164 to 39. It was sponsored by the Radical Socialists and opposed by the Socialists, who ultimately were vic torious on the amendment. President Zamora and Minister of the Interior Miguel Maura expressed disfavor with the amendment on the grounds that it was too radical. Some leaders said it was aimed at the ex- I pulsion of the Jesuits. Others said ex pelled orders would find refuge in Bel gium and other countries. The Catholic Church was divorced from its age-old union with the state with the adoption of article 3 of the constitution by the Assembly last night, voting 267 to 41. It declared that “no state religion exists” and banned the church from engaging in commercial, industrial and educational getivities. Demonstrations Curbed. It was followed by demonstrations against the cliurch*ffn Madrid and Oviedo, in which extra police and civil guards were called out to prevent dis orders. Stores and cases closed their doors here in fear of looting, but au thorities were able to keep the situa tion under control. The legislation shattered a tradition of centuries, by which the Catholic Church had enjoyed a preferred posi tion in the eyes of the government and redeemed the pledges of republican leaders, who promised to separate church and state when Alfonso XIII yas overthrown last Spring. The defection of Spain leaves Bel gium. Italy. Bolivia, Colombia. Venezu ela. Argentine. Peru and Paraguay as the principal nations in which Catholicism is the state religion. Countries that have separated church and state in re- , cent years include France, Portugal, I Mexico, Chile and Russia. VATICAN UN ALARMED. Officials Believe Church in Spain is Undamaged by Rejection. VATICAN CITY. October 14 OF).— Mews of the rejection of Catholicism as the official religion of Spain was re ceived by Vatican officials today with disappointment, but without alarm. They were of the opinion that when religious conditions there have been straightened out the position of the church will be found to be not seriously damaged. Radio Programs on Page D-3 ! Filtered as second class matter post office, Washington, D. C. I President Quits 1 * PRESIDENT NICETO ALCALA ZAMORA. SHELBY TO RETIRE FROM 0. C. POLICE FORCE NOVEMBER I Board of Surgeons Finds Pratt's Aide Physically In capacitated for Duty. Inspector William S. Shelby, assist ant superintendent of police, will retire for physical disability on November 1 next, under present arrangements. The Board of Police and Fire Surgeons, which yesterday examined the veteran officer, found him physically incapacitated for further duty. The report of the board, recommend j ing retirement of the assistant police : chief, is understood to have been shown to the District Commissioners before it was sent to police headquarters. Ordinarily the board reports Maj. Henry G. Pratt, superintendent of police, who then forwards it to the Commissioners with his indorsement. Findings Unanimous. The report was signed by Dr. Daniel I Borden, chairman of the surgeons’ , board, and five other members of that body. The findings, unanimous, were i based on a detailed statement of treat ; mcnt administered to Shelby during ! the past two years by Dr. John A. j Reed, member of the board, supple mented by personal examination of i the officer by the board as a whole. The physicians reached the conclu- I sion that Shelby is suffering from an j acute nervous ailment, sinus trouble : and other ills, necessitating his per ; manent removal from the police force. ; The nervous condition is attributed ’ by Shelby’s physician to the strain of ! overwork while serving as chief of the | Detective Bureau. Receives "C” Rating. While the report of the physicians : was not made public today, it is un ' derstood the board gave Shelby a rat j ing of “C,” which means that he should i be relieved of his duties as soon as pos | sible. Thres votings are used in segre ! gating policemen examined for dis j ability. A rating of "A” denotes that I an officer is in perfect physical condi j tion. A ’’B” rating means that he is I suffering from certain physical defects | that do not necessarily incapacitate : him for further service. Compulsory j retirement is necessary with the “C" 1 rating. If Shelby had been given a “B” rat ing his retirement would have been optional with the Commissioners. Un der the “C’’ rating they have no dis cretion in the matter. TThe report was received at Maj. Pratt’s office early this afternoon. He must prepare a formal recommendation for Shelby’s retirement. The recom (Continued on Page 2, Column 8.) • - .. ■ ■ REPLACEMENT OF HARRIS RUMORED IN DETROIT Navin, However, Says He Has Made No Plans Concerning 1932 Manager. | By the Associated Press. DETROIT, October 14. —Frank Navin, owner of the Detroit American League Base Ball Club, today said that although Stanley (Bucky) Harris has not yet signed a contract as manager of the team next year, he has made no plans to replace him. Harris, manager of the team for the past two years, has had little success in bringing the Tigers out of the second division. Although Navin insisted that no action had been taken toward ob taining another manager for the Detroit club, 'The rumor persists here that the former Washington manager will be re placed next season. Navin confirmed a report that Jean Dubuc and Roger Bresnahan will not be retained as coaches next year. He said Dubuc might remain as a scout. LINCOLN "BIRTHPLACES” TOTAL 16 AS KENTUCKY FINDS ANOTHER Emancipator Was Born in Comfortable Two-Room House Instead of Cabin, Judge Says. I By the Associated Press. HODGENVILLE. Ky.. October 14. ' Louis A. Warren, Lincoln biographer, of Fort Wayne, Ind., in an address here today declared the discovery of another supposed birthplace of Abraham Lin coln raises the number to 16. Judge Harvey H. Smith of New York recently stated the Emancipator was not bom in a one-room log cabin on Nolln Creek, in Kentucky, but in a comforta ble two-story house on Mill Creek, 25 m il es ftW&V. “There have been 15 other attempts to center public opinion on a certain spot where individuals, groups and even whole States have claimed Abraham Lincoln was born,” said Dr. Warren. “Citizens of Hardin County, sy„ have for years insisted Lincoln was bom on one of four definitely located sites with in the present boundaries. .. Ii %uxmx Jgkf. WASHINGTON, D. C., WEDNESDAY, OCTOBER 14, 1931—FIFTY PAGES. *** HOOVER’S CREDIT GROUP IS READY TO BEGIN OPERATION Relief Organization Expected to Start With $170,000,000 as Local Bodies Form. FUND MAY BE RAISED TO BILLION IF NEEDED Committee Flooded With Subscrip tions for Initial Offerings of Debenture. ■ By the Associated Press. . NEW YORK. October 14. Local or ganizations were being set up in vari ous parts of the country today, as units 1 in the new National Credit Corporation, while the central organizing commit tee continued its labors with last-min ute details in New York. , It was explained today that all indi cations point to the beginning of ac tual operations in extending loans to banks by the first of next week. The ' corporation Is expected to start with initial funds of more than $170,000,000, and this may be raised to $1,000.000,-j 000. as and if that amount is needed. , This was the corporation's first day ■ ! of legal existence, as incorporation pa pers were filed in Delaware through the Corporation Trust Co. late yester day. This huge concern carries out the suggestion made by President Hoo ver to ease points of tension in the | banking structure. Flooded With Subscriptions. Even though no specific rate of inter- j est has been announced for the cor poration's notes or debentures, which are to be sold to banks to give it its funds, the Organizing Committee has been flooded with subscriptions for the initial offering. While only commercial banks were requested to participate, the com mittee has been receiving numerous in | quirles from savings banks, and they i will be permitted to participate where 1 : State laws permit. While the final plan as proposed by | the Organization Committee spoke of a j maximum issue of the debentures of j $1.000,000.000..if the commercfal banks, alone participate to the extent of 2 per ; cent of their deposits, as requested, the , i initial amount raised will exceed S3OO.- ! 000,000. as against only $500,000,000 ] | suggested in President Hoover's pro- I | posal. Corporation Not Restricted. j Furthermore, it is said in banking j quarters that several of the leading | private banking houses, investment ! trusts and other organizations will un- I i doubtedly respond if requested, and! I that there need be no limitation of the maximum funds to $1,000,000,000. The incorporation papers, as filed in j DelawareT make no restriction as to 1 i how much money the corporation may j raise, and give it broad powers. The articles of incorporation state that its purpose is to aid and assist banks ; throughout the United States “to util i ize their resources * * * to further the stabilization of financial economic I conditions.” The corporation may carry on a j banking business of great diversifica- I tion. It may trade in securities, prop j erties and real estate of all sorts. It j may organize subsidiaries in any State, j territory or country. D. C. YOUTH GRILLED IN TORCH MURDERS _ ■ Nephew of Miller Family Neigh bor Volunteers for Slay ing Quiz. ( Special Dispatch to The Star. MANASSAS, Va., October 14. Joseph E. Wolfenden, 19, of 1738 B street j southeast, Washington, D. C. appeared ! here last night voluntarily for question ing In connection with the death of the ' Goodwin Miller family, who perished l in a fire which burned their family | residence to the ground, near Joplin, Prince William County, on September : 25. Wolfenden is a nephew of Walter 1 Wolfenden, who lives in th? vicinity of ■ the fire, and is said to have been visiting his uncle on the night o fthe conflagra tion. Thomas H. Lion, commonwealth at torney, said this morning an investiga tion which his office is conducting with reference to alleged insurance policies was progressing and this line of inves tigation will be concluded within a day or two. It is thought that a well known resident of the Joplin vicinity may be brought into the case. M’KIMMIE ONE UP ■ • Leads Robert T. Barnett in First '■ 18 Holes for Pro Title. R. Cliff McKimmie, professional at the White Flint Country Club, was 1 up on Robert T. Barnett of Chevy Chase at the end of the first 18 holes of their scheduled 36-hole match today for the Middle Atlantic match play profes sional championship at the Woodmont Country Club. Barnett is the present title holder. McKimmie scored 77 for the first round and Barnett was 78. The final round Is being played this afternoon. ‘The project contemplated by Judge Smith is another attempt to locate the birthplace in old Hardin County. All of these birthplace projects, including the present effort on behalf of Mill Creek, necessarily imply the illegitimacy of Abraham Lincoln.’’ The biographer referred to a state ment by Lincoln to Hicks, the artist, in which he stated he was bom “February 12, 1809, in the then Hardin County, Kentucky, at a point within the now County of Larue, a mile or a mile and ■tr half from where Hodgen’s Mill now is.” The speaker said it must be acknowl edged Thomas Lincoln was much bet ter situated financially than was once thought, and that one historical con tribution which may come from the controversy is a proper estimate of , Abraham Lincoln's lathes. .? p BEER RESOLUTION | LAID BEFORE EABOR Two Other Proposals Urge Repeal of 18th Amendment and Volstead Act. By th<* Associated Press. VANCOUVER, British Columbia. | October 14. —After being kicked around : more than a week in committee rooms | and corridors, the prohibition question | crowded its way into the American i Federation of Labor Convention Hall i here today. j A Resolutions Committee, asserting it | was promoting the cause of true I temperance, asked the convention to adhere to labor s stand of several years ! for beer of 2.75 per cent alcoholic I content. j At the same time two resolutions, one | backed by the remains of the pre- I prohibition Bartenders’ Union, and the : other by the Tacoma Central Labor i Council, asked repeal of the eighteenth j amendment and the Volstead act. i Matthew Woll, vice president and j chairman of the Resolutions Commit- I : tee, said he had not heard half a dozen , j voices raised against the 2.75 per cent ( i idea. Council Favors Beer. Throughout the convention the ; recommendations of the executive | council have been almost unanimously followed and the council favors 2.75 per cent beer. Relief of the unemployment situa tion overshadowed all other resolu tions pending, but there was no con ! troversy in the convention as to the I merits of resolutions affecting unem- 1 ! ployment. Many suggestions were ad j vanced by the Executive Council and ' approved in the Resolutions Commlt j tee report prepared for submission to day. For emergency relief, the report fa vored maintenance of wages, shorter work hours, employment assurance, employers taking on additional work ers. creation of work through public undertakings, strengthening of em ployment agencies, no child labor, pref erence for workers with dependents and financial relief from public and | private funds. Asks-National Planning. i For permanent relief, the federation ; asks national planning to balance sup ply and demand, public accounting, a Federal labor board to collect data, I organization of workers in trades un- I ions, a Federal employment service, vo cational retraining, so that workers in i stagnant trades could be taught to do work more often in demand, and job security. . , , The subject of military training in high schools, originally referred both to the Education and Resolutions Com mittees, w r as left to the latter group after the Education Committee washed its hands of the matter. — Hurley in Honolulu. HONOLULU, October 14 (/P). —Secre- tary of War Patrick J. Hurley arrived here yesterday en route to the United States following an investigation of po litical conditions in the Philippines. He ■ will be the guest of Gov. Lawrence M. Judd during his brief visit here. —' 1 ~ German Export Balance Gains. BERLIN, October 14 (/P). —The news paper Boersen Courier said today that Germany's September exports exceeded unports by 387.000,000 marks ($96,- '750000), the highest active balance since the World War, Why Go to Paris x —for smart fashions when the newest styles are here in Wash ington? Washington store* are among the finest In the country and their advertisements in The Star will tell you about all that is latest in style and fashion. Yesterday’s Advertising. (Local Display) Lines. The Evening Star. . . 57,419 2d Newspaper 16,989 3d Newspaper 10,131 4th Newspaper 5,524 sth Newspaper 2,818 Total SSSJSSSff 35,462 The Star is read in a great majority of Washington homes, and consequently carries more retail advertising daily and Sunday than all other Wash ington papers combined. ' Fireman’s Hammer Releases Man, but Breaks Hand Bones By the Associated Press. KANSAS CITY, October 14- Seeking relief from the tedium of convalescense after a motor car accident In which he suffered the fracture of three ribs, Paul Schulze. 26, insisted yesterday on helping about the house. The clogging of a basement . drain pipe drew his attention. He thrust his hand into the tub ing to remove debris. There the hand stuck. Neighbors and firemen were called. A fireman picked up a sledge hammer. One solid smash broke the pipe —also three bones In Schulze's hand. HOSPITAL INQUIRY BEGUN BY WILSON j Welfare Head Seeks to Know Why Three Children Were Refused Admission. An investigation to determine why j three children, two of whom were dying, j were shunted in the past 10 days from one hospital to another before finally receiving treatment, was ordered today by Public Welfare Director George 6. Wilson. The cases concern Eva Mae Dixon, 5, who died of burns at Children's Hos- t pital after first being transferred from ■ Sibley to Garfield; Samuel Goddett, 9. who died of lockjaw at Gallinger Hos pital, where he was taken after being denied admission at Emergency and i Children's Hospitals, and Catherine | Zanelotti, 3, who was turned away j from both Children's and Gallinger, finally being treated by a private physi- J clan. While the Board of Public Welfare Investigation got underway, members of the Committee on Health of the Council of Social Agencies were sum moned to meet this afternoon with the superintendents of all hospitals con nected with the cases of the two chil dren who died. The meeting was called at the request of the Community Chest, by Miss Gertrude Bowling, committee chairman and executive director of the Instructive Visiting Nurse Society, to prepare a report on the two cases. Explains Proper Procedure. In announcing he had ordered the investigation to prevent similar han dling of future cases, Director Wilson explained the procedure parents should take before bringing sick children to hospitals. f "It is important for parents to realize that hospitals are for a particular pur pose and not for the treatment of every case of sickness,” Wilson said. "Hos pitals primarily are for the care of cases that cannot be properly treated at home, that Is, either because of the nature of the illness or the home con ditions. "A physician should always be sum moned before bringing a sick person, child or adult, to a hospital. In the case of the poor, physicians for their attendance are established in various sections throughout the city subject to day and night call. Police Will Send Doctor. "A telephone call to a police precinct station will summon one of these doc tors. We have found it quite desirable for a doctor to see a patient before he goes to a hospital, first, because it might not be safe to move the patient, and, secondly, so that the doctor may certify contagious disease if present for isola tion." In both the Dixon and Goddett cases suspicion of contagious disease was claimed by the hospitals affected as the reason for the transfers. The little Dixon girl, who lived at 1012 Jackson street, was not admitted to Sibley Hospital, where she received first-aid treatment for her bums, be cause her father told the ‘examining physician she had whooping cough. The Goddett boy, similarly, was re fused admission to Emergency Hospital, (Continued on Page 2, Column 4.) Brand Whitlock Better. BRUSSELS, October 14 (JP).— Brand Whitlock, former Ambassador to Ber gium, who has been 111 of pleurisy, was said to be in good condition today and in a cheerful mood. He is not sure when he will be able to leave Brussels. Hospital Staff Stricken. VIENNA, October 14 OP).— Eighty physicians, nurses and members of the staff of the Vienna General Hospital were stricken today with parayphoid, a disease akin to typhoid, and were segregated in special wards. They were said to be affected In mild form. CAPONE’S LOSSES ON HORSES CITED Gang Leader Was Poor Judge of Racing Steeds, Defense Witnesses Say. By the Associated Press. CHICAGO. October 14.—Alphonse Capone today opened his fight for acquittal on charges of evading income taxes with an account of his gambling losses. The husky 1 gang leader is a poor judge of race horses, the jury in United States Circuit Court was told today. “He won some bets, but not very many,” Milton Held, a bookmaker, testified. Held, although he had no records to prove it, and could remember no in j dividual transactions, estimated that ; Capone lost between SB,OOO and SIO,OOO during the Summer meeting at the Hawthorne race track in 1924 and about ff 2,000 in the Fall of 1925 at i the same track. I Paid in Pig Bills. ’ “A1 would make bets ranging from S2OO to SSOO on a race.” Held testi fied. “and he bet on four or five races a day. He usually paid his losses with SIOO bills, but sometimes he gave me a : SSOO bill.” Held admitted under cross-examina tion that his bookmaking was in viola tion of the law, and said he had fol lowed the business for 20 years or more He said he made only about $2,000 at the track in 1924, "and about that | much more at my office down town.” Oscar Gutter, a hunchback bookie, | who described himself as a “commis ' sion broker, who handled sporting i events, mostly horses.” said Capone lost i about $60,000 betting on races at the | various tracks near Chicago in the : Summer of 1927. ' - Customers Generally Lost. “Sometimes he would place $3,000 on a horse to win and $3,000 to place,” i Gutter said. 1 “Yes. they most generally lost,” he said, with a smile in answer to a ques tion as to his customers. Johnny Torrio. Pete Penovich and Louis La Cava, all past or present gang ! figures who were originally sub- ; poenaed as Government witnesses, were in the Federal building today, sup- j posedly waiting to be called as wit- | nesses for their friend Capone. None j of them was put on the stand by the prosecution. Gave Capone Credit. Gutter was asked if Ca,V>ne had credit at his “commission house.” “I knew A1 was fair and honest in his own business,” was the reply, “so I gave him credit. That is, he could make a bet today and settle tomorrow. I didn't require any security of him ” The witness said at Capone’s request he always dealt with him in currency. The Government questioned Gutter at length about how he arrived at the figure $60,000. He said he kept seme informal records from month to month "so 1 could figure up my income tax,” but that he destroyed the records as soon as he was through with them. "The business was Illegitimate at that time,” he explained. There has been no indication today that the “big fellow” would turn talka tive and take the witness stand himself, but it was no apathetic defendant who started this fight to escape a Federal prison. This trial, into which the Govern ment has thrown all its resources and energies, has brought out an alert Capone, a serious, attentive man ready with many suggestions for his lawyers. The Government closed its case yes terday afternoon. Defense Attorneys Michael Ahern and Albert Fink ex (Continued on Page 2, Column 7.) STATE DEPARTMENT SUSPENDS TWO TO BREAK UP GAMBLING Messengers Who Acted as Intermediaries for Clerks and Bookmakers Penalized in Drastic Drive. Drastic steps were, taken at the State Department today to break up gambling among the clerks. The first move was the suspension of two messengers with out pay for a month for having acted as intermediaries between bookmakers and clerks in the various bureaus in placing bets on horse races. The suspended messengers are John N. Savage, attached to the Near East ern Division, and William D. Evans, an employe in the Visa Office of the Pass port Division. Evans has been in the service since 1910 and Savage since 1916. \ The long and satisfactory service of the two messengers, it was announced, was the only mitigating circumstances which prevented mors severe discipli nary action. * ' . ti i rom Pfe»s to Home Within the Hour* 9 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, 114,895 (&) Means Associated Press. DIRECT NEGOTIATIONS BY ORIENTAL NATIONS COLLAPSE IN FAILURE Nanking Representative Refuses to Continue Conversations for Fear of Hindering Geneva. GILBERT, U. S. CONSUL GENERAL, DISCUSSES ISSUE WITH BRIAND Johnson, American Minister, Calls on Chiang Kai-Sliek—Japan Watches Wash ington—Canton Claims Internal Pact. By the Associated Press. While peacemakers labored over the Manchurian situation, China and Japan broke off preliminary efforts aiming at negotiations of their controversy. Each party held to its terms. China insists on evacuation of oc cupied districts by Japanese before entering upon any direct nego tiations. Japan requires assurance of the protection of Japanese lives and property before withdrawing her troops. The British and American Ministers to China arrived at Nan king from Peiping to consult with Chinese officials. Gilbert Calls on Briand. Prentiss Gilbert, American consul general at Geneva, conferred with Foreign Minister Briand of France, as also did the Chinese and Japanese delegates to the League of Nations. Presumably they sought agreement on the form of American co-operation in League efforts jto restore peace. Insurgent Cantonese at Hongkong said President Chiang Kai- Shek of the Nanking government had accepted terms for internal peace in China. American naval vessels in Oriental waters were diverted from ! their intended routine shore leave at Chefoo, being ordered to 1 Shanghai instead, to avoid any misunderstanding. A Mukden dispatch to the Rengo News Agency < Japan) said ; Japanese planes reconnoitering along the line of the Mukden-Peiping I Railway were fired upon by Chinese troops aboard a military train, : and that the Japanese retaliated with bombs. Japan Watches Washington. At Moscow there was a conference between Maxim Litvinoff, Soviet foreign commissar, and Koki Hirota, the Japanese Ambassador. Previously Hirota had provided the foreign commissar with a written explanation of Japan's action in occupying non-treaty zones in Man churia. Tokio dispatches report the Japanese cabinet as working “in per fect accord" with the military, with an eye to what action is taken either at Geneva or by the United States. The Japanese hold that fundamental differences responsible for the present situation must be negotiated directly between the Japanese and Chinese governments. Japan Withholds Consent for U. S. To Sit in League 1 BY PAUL SCOTT MOWRER. By Cable to The Star. GENEVA. Switzerland, October 14. The League of Nations Council, con- j ferring without Japan and China to- ; day, decided to invite the United States to sit in the council in a consultative , capacity. China and Japan then were asked to concur;. China agreed. Japan hesitated and said that it must ask for instructions from Tokio. The Jap anese maneuver is to separate Geneva | and Washington and play one against ! the other, it is feared. The test, it ! is said, will be how soon the Japanese reply will be received and its tenor. | Those who expected the Council of j ! the League, closely supported by the United States, to emit thunder and lightning in a dramatic effort to set- ; tie immediately the tremendous issues ! now before it. with the world's entire ! Deace machinery at stake, were dis- j appointed today. The League's methods are different i ! from that. Tension and excitement. j j antagonisms and anxieties were all i under the surface. Outwardly all was calm and the day passed in a series of ! private negotiations. Two Main Points. These negotiations bore two main ! points: First, the conditions of United States’ ; co-operation with the council: Second, possible ways of dealing with j the Sir.o-Japanese dispute itself. The greatest satisfaction was felt \ here, except possibly in Japanese quar- | j ters. at the report of President Hoo- | i ver's consent to allow Prentiss B. Gil- ! oert, American consul at Geneva, to sit in a consultative capacity with the | council itself. It is understood that | Washington, after carefully consider : ing the possibility of formally invoking the Kellogg pact or the* nine-power j Washington treaty, or both, decided finally to confine our public efforts for the present to co-operation with the i League in order to concentrate the whole peace power of the world at one point and to avoid a conflict of au- j thority. Present Status of Dispute. With regard to the dispute itself, the following appears to be the situation: When the Council adjourned Sep tember 30 after voting a series of reso lutions designed to enable Japan to make a graceful retreat, the expecta tion was that the Japanese_by_today (Continued on Page 5, Column 7.) Evans and Savage, it was charged, received small commissions for serving as runners in placing the bets, and their act was in strict violation of an order of the executive departments of the Government forbidding gambling during office hours. The State Department is the second Government agency to take drastic steps in the last few years to break up gam bling among employes during office hours. Some time ago, George H. Car ter, public printer, waged h concerted campaign against race horse betting at the Government Printing Office, and severely criticized the Police Depart ment for alleged dereliction in failing to close up bookmaking establishments in the vicinity of the printing office. • TWO CENTS. PRELIMINARY TALKS FAIL. Chinese Demand Evacuation Before Further Negotiations With Japan. i TOKIO. October 14 (/P). —Preliminary 1 conversations designed to open the way for direct negotiations between Japan I and China for settlement of their con j troversy over Manchuria resulted in ] failure today. ! For the time being, at least, there will be no further private conversations be- I tween Baron Shidehara. Japanese j foreign minister, and Chiang Tso-Pin, Chinese Minister to Japan. The I Nanking government was represented jas having taken the view that any I further such talks might be miscon strued as indicating China's willingness ] to enter into direct negotiations with 1 Japan before the latter evacuated the occupied districts. Vernacular reports of the conversation here Monday between Chiang Tso-Pin and Baron Shidehara indicated the Chinese envoy had insisted upon the withdrawal of Japanese troops from Manuchuria as a prerequisite to any immediate negotiations. Japan Demands Assurance. The Japanese foreign minister was represented as having taken the attitude that since his country's principal inter | est in Manchuria was the protection of Japanese lives and property, China would have to give assurance of this i before Japanese soldier; could be re | called. Instead of seeking settlement of the | question by direct negotiation with Japan, China appealed to the League of ; Nations, asking its intervention. Japan : has contended before the League Coun j cil that the Manchurian problem is one requiring direct negotiations between the two countries, and not a matter warranting action by any outside agency. The question oP ‘ face,” which evi | dently meant much to the Chinese, i entered into the conversations 'between I the Chinese envoy and the Japanese j foreign minister. Chiang contended that his country | “lost its face” when the Japanese oc cupied vital points outside the Japanese controlled South Manchurian Railway i zone and that China would find it difficult to begin negotiations until the Japanese evacuated the positions he!d since September 18, when the immediate | trouble started. The Japanese foreign minister replied that if China thought so much about (Continued on Page 5, Column - 5.) - - 9 - ■■ ■ MEDICAL ASSOCIATION i HITS VETERAN POLICY President-elect Wants Government to Cease Treating Non-Service Disabilities. By the Associated Press. FORT WORTH, Tex., October 14. The governmental program for hos pitalization of World War veterans Is under fire of tlie American Medical As sociation. Dr. E. H. Cary of Dallas, Tex., presi dent-elect of the association, announced 4ast night it would ask Congress to abandon the policy of rendering hos pital and medical benefits to World War veterans with nofi-service disa bilities. Addressing a banquet of the North east District Medical Society, Dr. Cary asserted Federal employes and members of their families soon •Rti! demand hos pital attention unless present policies are changed. ‘‘Doctors," he said, "will become di vided into Government doctors and common doctors. Taxes will be higher. Strike hard against such Communistic propaganda.” As a substitute for the present pro gram for veterans. Dr. Cary said the association would advocate a plan pro viding disability insurance with cash payments during total disability and liberal benefits to cover expenses during hoqpUaiizatloq. < A