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Evening star. [volume] (Washington, D.C.) 1854-1972, April 25, 1932, Image 1

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(v.awMt^JuR.u&MMt) If . ^ onl7 evening paper
Showers tonight and tomorrow: not M^ jn Washington with the
much change in temperature: minimum m U ^^k » , _
temperature tonight about 52 degrees. M I u I 1 I T Associated Press news
Temperatures—Highest. 65, at 2 p.m. ■ ■ ■ ■ ;
yesterday; lowest, 49, at 5:30 am. today. J ■ ■ V service.
Pull report on page 9. f M ■ _
/it . at V u i . n . . j i / V v Saturday*# Circulation. 122,549
Closing N. T. markets, rages 14 and 15 _^ ______Sunday # circulation. 13#,950
No. 32,136. ^r?™S^M».Tcr ———- aVASHIXGTOX, D. C., MONDAY, APRIL 25, 1932—THIRTY-TWO PAGES. *** in Mean, A.sociat.d pc... TWO CENTS.
SENATE WILL SEND
INVESTIGATORS TO
STOCK CHANGE
Committee Votes to Widen
Inquiry and Dispatch
Corps of Probers.
“BULL POOL” OF 1929
WILL BE EXAMINED
“Bear'* Trading Since Collapse
Also to Get Full Study—Dan
forth Appears.
By the Associated Press.
The Senate Banking Committee to
day ordered a full investigation of the
Stock Exchange and determined to
send investigators to New York.
At a lengthly executive session, the
Committee agreed to appoint a subcom
mittee and to employ additional coun
sel and investigators necessary to make
the study in New York.
The committee is determined to find
but the inside operations of the gi
gantic pool in stocks which operated
on the "bull” side in the 1929 boom
and on the "bear” side since the price
collapse.
Danforth Appears.
Before today's meeting, William H.
Danforth of Boston, a big trader on the
Stock Exchange, appeared at the offce
of the Senate Committee and offered
to testify in the investigation when
ever he is wanted.
A subpoena was issued for him last
week, but he was in Florida and could
not be immediately located. He prob
ably won’t be called for several days.
The trail of testimony so far taken
in the committee’s investigation of the
stock market has been led to establish
existence of combines formed to profit
by rise or fall of a particular stock.
However, all have stopped dead when it
came to proving what the pool traders
did to force prices in the direction by
which they planned to profit.
A number of traders and brokers
have been subpoenaed to appear before
the committee, but they probably will
not be heard for several days, as the
hearings have been temporarily sus
pended. Others may be called, includ
ing Chairman Raskob of the Demo
cratic National Committee, who partici
pated in a pool described in Saturday's
testimony.
The membership of two pools of im
portance has been described to the
committee and its agents say they had
information concerning a score of such
combinations, whose affairs are ex
pected to be gone into.
Conspicuous among the points the
Senators wish to establish is whether
the pools have been working with mar
ket specialists—brokers who handle one
stock and know the pending orders and
holdings in that particular security.
Saturday's testimony brought into the
record that M. J. Meehan, prominent
broker, was the specialist in radio
stocks and that his wife participated
in a pool operating in that line.
Meehan to Testify.
For specialists to pass out their con
fidential information is against the
Exchange rules, and Senator Brookhart,
Republican, of Iowa, after hearing the
radio pool testimony, said he favored
legislation to make such a practice il
legal. No testimony had been adduced
to establish that such an exchange of
Information actually did take place in
that or other cases and Meehan, for
whom a subpoena has been issued, is
expected to testify.
As a result of deciding to send a
corps of investigators to New York, the
committee must ask the Senate for
more funds. It was given only $50,000
for the inquiry.
After today’s meeting chairman Nor
beck said the question of subpoenaing
witnesses would be decided by the
Steering Subcommittee.
Proposals for employing Samuel Un
termeyer, veteran New York attorney,
for counsel were not discussed.
Determined to Get Data.
Asked concerning plans for secur
ing information, Norbeck said: “It
doesn't make any difference whether
it s in New York or San Francisco. If
we want it we are going to get it,
that's all there is to it."
He said the investigation would be
pushed "as fast as possible" and would
go into both the short and long sides
cf the market.
The idea of a steering committee was
first suggested by Senator Couzens, Re
publican. of Michigan.
The proposal for sending investi
gators to New York was advanced by
Senator Blaine, Republican, of Wiscon
sin. and the committee approved hi3
suggestion that the agents should be
selected from outside the Government
service.
The selection of committee counsel
was discussed in some detail, but the
question was referred to the Steering
Committee. Committee members gen
erally approved the manner in which
William A. Gray, the present counsel,
has conducted the inquiry
The committee today received a letter
from Matthew C. Brush, veteran trader
who was on the stand a few days ago,
correcting certain of his testimony. In
answer to a question, he had said he
had never participated in a pool.
In his letter he said he wanted to
correct that, because he had meant to
cay he had never been in a stock pool
iince the market crash of 1929.
»
NAT-YANKEE GAME OFF
Cold Weather Causes Postpone
ment of Contest in New York.
NEW YORK, April 25 'Special).—
Cold weather today caused the post
ponement of the game between the New
York Yankees and the Washington Na
tionals. scheduled for Yankee Stadium
The series will open tomorrow.
1,000 TO RESUME WORK
Ford Plant at New Orleans to Add
500 Others Later.
NEW ORLEANS. April 25 UP).—Eu
gene N. Stolz, manager of the Ford Co.
here, announced yesterday that 1,000
men who have been idle for several
months will resume work at the plant
within the next 10 days. He said 500
others will be added later.
Madrid-Manila Flyer Hops.
MALAGA Spain, April 25 (4*).—Fer
nando Rein. Spanish aviator who Is fly
ing from Madrid to Manila Philippine
Islands, took off from here at 6:25 a.m.
today for Algiers.
Insane Rifleman
Terrorizing Town
Subdued by Troops
By the Associated Press.
KANE. Pa., April 25.—An in
sane man sat on a porch with a
rifle and terrorized the town of
Rasselas, Elk County, late yester
day.
The man, Rudolph Feekeles, 36,
of Rasselas, shot at every one
within sight. He carried a 14
inch knife in his belt.
After Feekeles had maintained
his stand for h:urs State troopers
arrived and subdued him. All of
the officers were battered in the
half-hcur scuffle.
Feekeles was admitted to the
State Hospital for the Insane at
Warren today.
MASSIE DEFENSE
ATTACKED AGAIN
Prosecution Closes Case To
day With Testimony of
Third Alienist.
By the Associated Press.
HONOLULU, April 25.—The insan
ity plea of Lieut. Thomas H. Massie, on
trial with three others for the slaying
of a native, faced a final attack today
by another expert in the workings of
the human mind.
To the testimony of two physicians
that Massie was not insane when he
slew Joseph Kahahawai, whom he was
convinced criminally attacked Mrs.
Massie, the prosecution was prepared
to add the testimony of a third—Dr.
Joseph Catton, Stanford University
psychiatrist.
Dr. Catton was to take the witness
stand to stress again to the jury of
mixed racial origin the prosecution's
contention the Hawaiian was slain by
a sane man. killing with revenge in his
heart. The defense contends the
United States naval officer became
temporarily insane while trying to ob
tain a confession that would restore
his wife’s good name.
State’s Last Witness.
Dr. Catton is the last witness by
which Public Prosecutor John C. Kelley
bcpes to send Massie, his society ma
tron mother-in-law, Mrs. Granville
Fortescue, and two Navy enlisted men,
Albert O. Jones and E. J. Lord, to
prison.
The psychiatrist was brought here
from the mainland last week and court '
was adjourned Saturday to permit him
to complete his study of the case.
Yesterday he submitted a long report
to Kelley. Its contents were not re
vealed, but it was learned Dr. Catton
agreed with Drs. Paul Bowers and Rob
ert Faus. the physicians who testified
Friday, that Massie was sane when he
fired the shot that killed Kahahawai.
With the defense resting upon Mas
sie’s plea of temporary insanity. Kelley
has concentrated upon trying to con
vince the jury that he was not insane,
for under Hawaiian law. if Massie is in
nocent by reason of insanity, then all of
the defendants are innocent.
The defense, headed by 75-year-oid
Clarence Darrow. produced two expert j
witnesses who testified Massie was men
tally deranged.
Jnry to Get Case Soon.
The State hoped to complete its re
buttal with Dr. Catton’s testimony, and
attorneys believed the case would reach
the jury not later than tomorrow.
Opposing counsel worked Sunday on
the instructions which they will ask the
judge to give the jury. From these
Judge Charles S. Davis w’ill select the
orders by which the jury is to be guided
in reaching its verdict.
The psychiatrist testimony introduced
at the trial is being informally criti
cized by physicians attending the an
nual meeting of the Hawaii Medjcal
Society. They look with disfavor upon
the fact the opposing sides were able to
obtain alienists from more than 2,000
miles away who viewed the case the
same as those who employed them.
BET AT HARVARD PROVES
FATAL TO ELKINS HEIR
Student Attempts to Leap Over
Fence on Wager and Is
Impaled.
By the Associated Press.
CAMBRIDGE. Mass., April 25—A
wager, sportingly made on his youthful
prowess, brought death to Bayard
Tuckerman Elkins of Philadelphia, 20
year-old Harvard sophomore and scion
of one of America's wealthiest and
socially prominent families.
His father, William M. Elkins, finan
cier and philanthropist, came to Cam
bridge by a chartered special train, but
arrived too late to see his son alive.
The youth succumbed Saturday to
I septic poisoning from a comparatively
slight leg injury received eight days ago
when, attempting to leap over a fence
"on a bet” with his companion, William
Delano Robbins, jr„ of Washington. D.
C, he lost his balance and was impaled
on an iron picket.
MacDONALD EXAMINED
j Prime Minister's Eyes Declared to
Be No Worse.
GENEVA. April 25 OP).— Prime Min
ister Ramsay MacDonald of Great
Britain underwent an examination for
his eyes last night and it showed that
no further deterioration of his sight
has occurred since he left London, an
official statement issued here today
said.
The statement, signed by the prime
minister's two physicians, who ac
companied him here from London, said
his health was excellent.
I__
WOOS SLEEP AT EDGE OF FALLS,
SO WATER WILL WASH HIM AWAY
Man Climbs Between Guard Railing and Niagara, but
Policeman Takes Him to Court.
_
I
i By the Associated Press.
NIAGARA PALLS, N. Y., April 25 -
Henry Brownley, 53, who gave a New
York City address, hit upon a novel
plan to end his life today, according to
Patrolman Joseph Klein of the Niagara
State Reservation police. Klein said he
found the man asleep on the river bank
' a short distance above the falls. He
was lying between a guard railing and
the water's edge.
Klein said when he furifcd Brownley
MILLS ASKS CREDIT
_
Secretary Urges Controlled
Expansion Guarded by
Federal Reserve.

EXPRESSES HIS FAITH
IN AMERICAN PEOPLE
Drastic Federal Economies and
Additional Taxes Necessary He
Declares at A. P. Luncheon.
By the Associated Press.
NEW YORK, April 25.—A reinvigo
rated credit structure and a "restora
tion of national confidence" were called
for today by Secretary Mills as “twin
weapons which must be forged to turn
back the forces of destruction.”
The Treasury chief, addressing the
annual luncheon of the Associated Press
at the Waldorf-Astoria Hotel, said that
“the wave of fear and the tide of de
flation has to be turned back.”
“The only way that I know to bring
adequate relief to the people of the
United States,” he said, “is to set in
motion forces that will make economic
recovery possible.”
Against Pure Inflation.
As one of these forces, Mills outlined
controlled credit expansion, amply safe
guarded bv the Federal Reserve System.
“Controlled credit expansion is only
possible through the operation of that
system,” he said, “I emphasize this to
bring out the contrast between con
trolled expansion of this kind and pure
inflation, such as is involved in pro
posals now before Congress for printing
flat currency, or such as would result
ultimately from a series of unbalanced
budgets.”
On the budget question Mills was em
phatic;
"No greater blow could be dealt to
national confidence and to the national
credit,” he emphasized, "than the fail
ure of the Federal Government in times
like these to follow a sound fiscal pol
icy and to balance its budget.
“This means, for the Government,
drastic economies; for the people, an
additional burden of taxation. What
is the alternative? Continued borrow
ing at constantly increasing interest
rates, progressive depreciation in the
value of all outstanding Government
securities, loss of confidence and in the
end uncontrolled inflation and a sad
day of reckoning.”
Mills termed it a “most extraordinary
and baffling paradox that this country,
richer in actual and real wealth than
anything ever dreamed of by any na
tion in the world, at the same tinte
has been and is undergoing the most
severe depression ever experienced,’’
Cites Causes and Effects.
He outlined the causes and effects of
the latest and most serious phases of
the world-wide economic derangement,
beginning last May with the insolvency
of the great Austrian bank, Credit
anstalt, which, he said, in turn under
mined Germany, causing a collapse
which shook confidence throughout the
world, force Great Britain off the
gold standard and swept down upon
the United States and the American
dollar.
“That battle was won, but the cost
was heavy,” he continued. “When the
battle was over » • * the gold resources
of the United States were over $700,
000,000 lower, hundreds of banks had
failed, the banks were heavily in debt
to the Federal Reserve System and
currency was being hoarded on an im
mense scale.”
But for these events, he said, recov
ery might have begun many months
ago. Sven then, when “the economic
forces working toward contraction and
deflation had fairly well spent them
selves," Mills said, the forces of recov
ery were more than offset by the
“paralyzing fear which gripped our
people, the loss of confidence, and the
terrible contraction of credit which
forced business and prices to new low
levels.”
Successful Recovery Steps.
There followed, as he sketched the j
process, the various means taken by
the Government to halt bank failures
—86.4 per cent of those aided by the
Reconstruction Finanqp Corporation
were in towns of less than 25,000, he
said—aid the railroads, insurance com
panies and other units “affected with i
the public interest.” On top of these I
came the anti-hoarding campaign and
the steps for credit expansion. The
anti-hoarding campaign’s results and
other evidence, said Mills, indicate
clearly that there is a “definite, if
gradual,” return to confidence.
“I have tried to point out that credit
and confidence are the magicians that
must solve our paradox for us,” said j
Mills. "I have pointed out that progress j
has been achieved. But it takes time!
to arrest and reverse these great move- j
ments and while it seems almost cruel •
to urge patience after an already pro
tracted period of waiting, yet I can
not help but feel that we should give
the forces which have been set in mo
tion an opportunity to exert themselves
before yielding to doubt as to whether
we are on the right path.”
"I have seen nothing.” he concluded,
“even in the darkest hours of doubt, to
impair my faith in the promise of
American life.”
Strike of 2,500 Barbers Ordered.
NEW YORK. April 25 (>P).—Twenty
five hundred barbers in Upper Man
hattan shops were ordered on strike
today, protesting against wage cuts and
working conditions. Leaders said the j
strike would be extended to the entire
island by next month.
what he uras doing, the man replied
that he had picked out the dangerous
spot in the hope he would roll into the
river during his sleep and be swept
over the falls. Klein arrested Brown
ley on an intoxication charge and ar
raigned him before a police justice.
When Klein told the story of Brown
ley's rescue to the judge. William J.
Watts, Brownley made no denial. Judge
Watts lectured him severely and sus
pended sentence upon his promise to
leave the city.
“HI ^^ —.-1
/DOWNN
FRONTS
FOR BONUS ATTACK
Cry of “Throw Him Out!”
Raised at Senate Com
mittee Hearing.
By the Associated Press.
A war veteran, Fred C. Reynolds of
Baltimore, was loudly hissed by fellow
veterans today when he opposed the
cash bonus payment before the House
Ways and Means Committee.
One cry of "throw him out” was
heard.
Reynolds said he represented a group
of veterans opposed to full payment.
"We feel this bill to be class legisla
tion which endangers the financial
stability of the Government,” he said,
referring to the Patman bill to expand
the currency by $2,000,000,000 to pay
the remainder outstanding on the bonus
certificates.
Rainey Sounds Warning.
“We want you to know that there
are some veterans who consider this
appeal unpatriotic.” Reynolds added
that he had borrowed *400 on his own
certificate.
Representative Rainey of Illinois, the
Democratic leader, who was presiding,
warned, as the hisses rang out, that
the demonstration was a violation of
the rules.
Earlier at today’s hearing, the Na
tional Association of Manufacturers,
through James A. Emery, put before
the committee an emphatic protest
against full cash payment.
Emery called the *2.000,000,000 new
money plan an “experiment” and
warned the committee to “avoid ex
periments, especially those condemned
by historical precedents.”
"There is no evidence that our dif
ficulties arise from a lack of currency,”
Emery said.
See Political Fop.
‘‘We believe the fundamental thing
that cannot be overstressed is that con
fidence is required to restore the equi
librium.
"The fundamental trouble is that we
are moving in a fog of political un
certainty. We can't chart our course
until the fog lifts.”
"What would you have done to lift
the fog?” asked Representative Eslick
(Democrat of Tennessee).
"Action.” Emery replied. "First pass
the tax bill so industry may know what
to expect.”
Eslick asked if the Reconstruction
Finance Corporation were not an ex
periment.
"Yes, but it has historical precedent
and we approve of it,” Emery replied.
Representative Vinson. Democrat, of
Kentucky, said that during the last two
weeks the Federal Reserve System has
issued $200,000,000 in new currency on
the basis of Government bond pur
chases.
“That has been done without any
cnange in the gold reserve,” Vinson told
Emery.
“If they continue at that rate they
will have put $2,400,000,000 in new cur
rency into circulation in 24 weeks—the
same amount proposed in this bill.”
Seek* Low Peace Cost.
Gay lor Lee Clark, also of Baltimore,
'aid he belonged to the Maryland
branch of the Veterans’ Committee to
Reduce the Cost of Peace.
"I do not believe the veterans are
honestly and faithfully led,” Clark
said. “I know soldiers and I think if
the proposition had been put up to
them squarely they would not be for it.
"Soldiers will take what they can
get; we all know that. They will holler
for it. but when it comes to doing
something to disrupt the Government
if they do not get it, that is all bunk.”
Rrepresentative Pettengill, Democrat,
of Indiana, recommended legislation to
give veterans the option of turning in
their certificates for their present value
to receive coupon bonds due in 1945.
Previous loans would be deducted and
interest lowered to 2 or 3 per cent
under his proposal.
He suggested that the Government
maintain a par value for these bonds.
Representative McKeown, Democrat,
of Oklahoma, proposed a plan for cash
ing the certificates which would trans
fer the handling of the payment to
Federal Reserve member banks.
RAIN HALTS FOREST FIRES
Blazes in Pennsylvania Put Under
Control by Volunteers.
HARRISBURG. Pa., April 25 (AO.—
Aided by scattered rainfall, fire war
dens and volunteer fire fighters today
had gained full control of the forest
fire situation throughout Pennsylvania.
The Department of Forests and
Waters reported “everything out or well
under control” Several fires in the
Northern part of the State were the last
to be conquered, report stated.
Daylight Saving
Is Indirect Cause
Of Woman’s Death'
By the Associated Press
CHICAGO, April 25.—Inaugu
ration of daylight saving was in
directly responsible for a dtath
here yesterday.
As Mrs. Anna Larson, 52,
cliirbed a stepladder to set her
clock ahead a rung gave away.
She fell, breaking a verterbra
in her neck and was dead when
aid reached her.
Heavy Damage Done in Ala
bama, Tennessee and
Kentucky.
By the Associated Press.
MEMPHIS, Tenn., April 25.—State
highway patrol officers here reported
that at least seven persons were killed
by a tornado that twisted through three
towns in Shelby County about 11 o’clock
(Central standard time) today. They
could not give the names of those killed
nor the communities in which the
fatalities occurred.
It was impossible at first to establish
communication with Rosemark, Milling
ton, Kerrville and other communities
reported in the path of the storms.
The tornado itself was not felt in
Memphis, although the wind was high.
A high wind and rainstorm, accom
panied by hail, struck here last night,
but little damage was done.
STORM STRIKES KENTUCKY.
Damage Done in Counties in Southern
Part of State.
BOWLING GREEN. Ky., April 25
(£*).—A windstorm that approached
proportions of a tornado, accompanied
by severe lightning, torrential rains
and hail, swept through a half dozen or
more Southern Kentucky counties early
today. One man was injured in War
ren County, another was shocked by
lightning in Adair County and heavy
damage was caused.
Roofs and chimneys were blown off
buildings in a wide area and power and
light lines were crippled and several
towns, including Scottsville and Greens
burg, were in darkness for several hours.
Industrial plants at Scottsville were
closed for lack of power. Many tobacco
beds were ruined by the heavy rains
and Green River and its tributaries rose
rapidly.
ALABAMA IS SWEPT.
Heavy Windstorms Do Damage to
Buildings.
BIRMINGHAM, Ala., April 25 (IP).—
Windstorms of terrific force wrought
havoc in several communities in North
ern Alabama last night.
At Portersville a church was wrecked,
the front of a cotton warehouse was
blown away and a number of buildings
were unroofed.
Rural communities near Portersville
had some damage, but not as much as
that within the town.
Heavy hail followed the wind and did
further damage to crops. In many in
stances the deluge punctured tops of
automobiles left in the open.
TORNADO IN ARKANSAS.
Several Persons Injured in Osceola
Section.
BLYTHEVILLE, Ark., April 25 (/P).—
A tornado struck in the vicinity of
Osceola, 18 miles north of here, today,
injuring several colored persons and
demolishing two cotton gins.
The tornado followed a severe hall,
wind and electrical storm last night
that uprooted trees and broke windows
in houses. Thus far, no deaths have
been reported in this community.
SWEETWATER DAMAGED.
SWEETWATER, Tenn., April 25 (fP).
—Considerable damage was done by a
tornado that struck here early today,
but no one was injured.
It blew into town through the resi
dential section, destroying a garage and
unroofing three residences.
It then swept into the business dis
trict and damaged a garage, wrecked
two chimneys on a hotel and unroofed
a warehouse, a flour mill and a textile
mill.
Electric wires and trees were felled
and scattered over streets and a high
way leading to Madisonville.
I Radio Programs on Pago A-12
HITLERITES SWEEP
._.
Win in Four of Five States.
Three Deaths Reported.
Hundreds Arrested.
By the Associated Press.
BERLIN. April 25.—Adolf Hitler’s
National Socialists are the strongest
political party today in four of the five
German states which participated in
yesterday’s Diet elections, but they still
lack a clear road to control of any of
them.
Wilhelm Kube, leader of the National
Socialist faction in the Prussian Diet,
demanded today, however, that the
Prussian Diet resign immediately. “Dr.
Braun’s successor must be a National
Socialist,” he said, "and Adolf Hitler
will choose him!”
The election, which followed two
presidential elections in which Hitler's
Fascist legions fought futilely to place
him at the head of the Reich, resulted
in three deaths, many other casualties
and hundreds arrests.
Only at Bavaria did the Hitlerites
run slightly behind.
In Prussia, where the fight was most
bitter because of the theory that
"whoever controls Prussia controls the
Reich,” the Hitlerite forces garnered
in 162 seats, against the 9 they held
heretofore.
Braun Likely to Resign.
The coalition which makes up the
present government also secured 162
seats. The consensus today was that
Premier Otto Braun of Prussia and
his government would probably resign,
but that he would be likely to con
tinue to hold office, while a struggle
took place over the formation of a
new workable layout.
The National Socialists, with four
minor opposition parties, command
only 203 of the 450 seats in the Prus
sion Diet. They could form a govern
ment only if the 67 members of the
Centrist party, which is that of Chan
cellor Heinrich Bruening, were to sup
port them.
The rule is that the present govern
ment holds over, in any event, until a
new one is formed with the support of
51 per cent of the Diet.
Communists Gain Nine Seats.
The only other party in Prussia to
make a gain was the Communist, which
(Continued on Page 2, Column 2.) -
WINE RATIONS HALTED
IN POISONING PROBE

Action Taken in Havre, France,
After 300 Sailors Become 111
in Three Months.
By the Associated Press.
HAVRE, France. April 25. — Health
authorities here today ordered all ships
on which they suspected there might
be poisoned wine, such as is believed to
have been responsible for the illness j
of about 300 sailors during the last
three months, to abondon the use of
the wine.
An investigation into the poisoning
was begun last Saturday by Havre po
lice. They advanced the theory it was
caused either by poison used to treat
the vineyards or to reduce the acidity
in the- w’ine.
Large quantities of the wine already
had been landed from coast-wise ships,
but some, without radios, were feared j
to be still issuing the wine rations.
As far as was known no transatlantic |
liners had any of the poisoned wine
aboard, but it was confined to coast- :
wise, cross Channel and local fishing
boats.
IRELAND TAKES STEPS TO REPAY
U. S. INVESTORS IN 1921 LOAN
Fianna Fail May Have to Borrow Funds to Liquidate
$4,000,000 Bond Debt.
By the Associated Press.
DUBLIN, Irish Free State, April 25.—
The Fianna Fail government Is talcing
steps to repay investors in the £500,000
republican bond issue of 1921, held
principally in the United States.
Records relating to the loan were de
posited with American courts, but they
have been returned to the Free State
authorities, who now are Investigating
to ascertain whether it will be necessary
to enact legislation to make repayment.
It may be that the government will
have to borrow to meet principal and
interest on the loan, which at the pres
ent rate of exchange probably will ap
proximate £1,000,000.
The loan was raised by Eamon de
.Valera hunaefe la the United Btates. la
HOUSE DECEIVES
SAVING non
Senate Finance Committee
Drafts Companion Bill to
Raise $1,000,000,000.
WORKING WIVES ARE HIT
UNDER DISMISSAL PLAN
Hoover Given Right to Raise Fed
eral Pay When Commodity
Prices Recover.
_
With the pay cut and eecnomy pro
gram framed by the special House
Committee before It, Congress started
today on decisive steps to balance the
budget.
While the House was receiving the
bill designed to lop of! $200,000,000 to
$225,000,000, the Senate Finance Com
mittee was undertaking to draft a re
vised revenue bill to raise approxi
mately $1,000,000,000.
The House expects to take up the
bill Wednesday. Its most important
feature is arr 11 per cent cut in the
pay of every Government employe who
receives more than $1,000 a year. A
provision giving the President author
ity to restore salaries to the present
figure by proclamation, whenever
wholesale commodity prices shall reach
and maintain for 120 days a figure
within 10 points of the prices in 1926,
caused considerable speculation today.
It was presumed the framers of the
bill expected funds to carry out its
provisions to be obtained from savings
impounded in the Treasury from econ
omies in the measure, for it provides
that "such Impounding of funds may
be waived by the President in connec
tion with any appropriation when, in
his judgment, such action is necessary
and in the public interest ”
Even before the bill could be formally
presented at the opening of today's ses
sion, Chairman McDuffie of the Special
Economy Committee appeared before
the House Rules Committee asking a
special rule to make consideration of
this measure in order as an amendment
to the $20,000,000 appropriation bill
which carries salaries for the legislative
establishment. The rule undoubtedly
will be granted.
Storm Breaks Early.
Rumblings of the storm to break In
the House Wednesday were heard when
the Economy Committee divided before
(Continued on Page 4, Column 1.)
4,033 U. S.' CLERKS
Interior Department Slash
Imminent as Wilbur Pro
tests to Garner.
With a weather eye toward the House
on its omnibus bill progress. Interior
Department officials today were pre
paring themselves for what looked to be
the inevitable—the discharging of 4,093
of its 14,983 employes in Washington
and in the field as the result of Con
gress approving the department's 1933
supply measure calling for appropria
tions of 40 per cent under the current
fiscal years operation costs.
Only the substitution of the plan call
ing for furloughing workers and the
adoption of President Hoover’s pro
posal to permit the interchange of ap
propriations within a department or
agency up to 15 per cent in place of
'he straight salary reduction of 11 per
cent will spare the ax cutting job in
the Interior Department.
Wilbur Again Attacks Action.
On the eve of the House taking up
the omnibus measure. Secretary Wilbur
again gave voice against what he termed
the act of practically "dismantling of
of the ship” when the House approved
the Senate’s straight 110 per cent cut
in the Interior Department’s supply bill
"regardless of the wish of a head of a
department, without calling for confer
ence. or without considering any of the
details.”
The Interior Department bill re
ceived the approval of Congress last
week. This vast agehcy must get along
the best it can alter July 1, with $45.
398,672 less than its appropriations of
$75,680,598 for the present fiscal year.
Its treasury has been hacked to the
very bone, causing Secretary Wilbur to
shout out in a letter to Speaker John
N. Garner today “this is bad budgeting
and bad legislative practice.”
In event Congress fails to approve
the two major revisions in the omnibus
bill, department officials said there was
nothing left for them to do but to make
a_wholesale_reduction in their person
(Continued on Page 5, Column 6.)
---■--- - -- l
two sections. The first was issued in
January, 1921, for $5,250,000, and the
second in November of the same year
for $625,000.
About $2,000,000 was tied up by the
American courts in 1923 before it
reached the Free State and later was
returned to the investors.
Thus there remains nearly $4,000,000,
plus interest, still to be paid. The rate
of interest has not been determined, but
probably will be 8 shillings to the
pound, which is the rate on internal
loans.
The Cos grave government recognized
the validity of the loan and it was in
cluded among the Free State obliga
tions in 1924 The American court
action, however, complicated repay
I
SENATE COMMITTEE
APPROVES TARIFF
ON OIL AND COAL
Levy on Copper Added To
House Tax Bill—Lumber
Products Exempted.
ALL VOTES ARE CLOSE;
PARTY LINES BROKEN
Reed Says He Hopes Manufactur
ers’ Sales Plan Will Be
Revived.
By the Associated Press.
In a series of rapid-fire ballots the
Senate Finance Committee today dis
posed of the tariff issue in the revenue
bill by voting Import taxes on oil, coal
and copper and rejecting levies on for
est products.
The provisions in the House bill for
an import tax of 1 cent a gallon on
oil and $2 a ton on coal were retained.
An Import levy on copper, the rate to
be decided later, was added.
All votes were close. The attempt to
remove the oil tax from the bill lost on
a tie vote, 9 to 9. The lumber duties
were rejected, 10 to 8.
It was the second time a copper
tariff had been written into the new
billion-dollar revenue bill. The vote
was 10 to 8. The House Ways and
Means Committee voted once to put a
copper tariff In the revenue bill, but
later reconsidered.
Iwo Republicans Against.
The amount of the copper duty voted
by the Finance Committee was not im
mediately disclosed. Two Republicans
—Keyes of New Hampshire and La
Follette of Wisconsin—voted against
all tariff items.
Senator Connally, Democrat, of Texas,
voted with the Republican majority to
add the copper duty. Connally and
Gore, Democrats, of Oklahoma, also
voted with the Republicans to retain
the import taxes on oil and coal.
The vote on copper follows:
For: Republicans—Smoot, Watson,
Reed, Shortridge, Ccuzens, Bingham,
Thomas of Idaho, Jones and Metcalf
Democrat—Connally. Against: Repub
licans—Keyes and La Follette. Demo
crats—Harrison, George. Walsh of Mas
sachusetts, Bariclev, Costiean and Hull
The vote on oil. which was 9 to 9,
follows: For — Republicans, Watson,
Reed, Smoot, Shortridge. Couzens,
Bingham and Thomas of Idaho. Demo
crats, Connally and Gore. Against—
Republicans. Keyes. La Follette. Jones
and Metcalf Democrats, Harrison,
George, Walsh of Massachusetts, Cos
tigan and Hull.
The vote on coal was 9 to 8, as
follows: For — Republicans, Smoot,
Watson, Reed. Shortridge. Bingham,
Thomas and Jones. Democrats, Con
nally and Gore. Against—Repulicans,
Keyes, La Follettee and Metcalf.
Democrats. Harrison. George. Walsh of
Massachusetts, Costigan and Hull
Vote on Lumber Shown.
The vote against lumber was 10 to
8 as follows: For—Republicans, Smoot,
Watson. Reed, Shortridge, Bingham,
Thomas. Jones and Metcalf. Demo
crats. none. Against—Republicans.
Keyes and La Follette. Democrats,
Harrison, George. Walsh. Barkley.
Connally, Gore, Costigan and Hull.
The votes against shingles was 10 to 7
and showed the same line-up as against
lumber, except Senator Watson did not
vote on this.
The committee s action disposed of
the tariff controversy for the time be
ing, but Senator Jones, Republican, of
i Washington gave notice that the battle
: for import taxes on forest products
| would be carried to the floor of the
Senate. Votes will be had in the Sen
ate on all of the tariff items.
The tariff row was opened when
Senator La Follette moved exclude
all tariff items. This motion losv 10 to 9
Senators Connally and Gore joined the
Republican majority to defeat this move
Senators Keyes and Metcalf leff *he
Republican fold to join La Follette ar.,:
the Democrats in opposition to all tariff
duties.
Wanted to Speed Bill.
“Democrats voted without respect to
the merits of the various tariff items.”
explained Senator Harrison of Missis
sippi after the meeting, ‘ in order to
expedite consideration of the bill ”
After disposing of the tariff contro
versy, the committee began considera
tion of non-controversial administra
tive provisions of the bill. Another
meeting was called for later in the
day.
No effort was made in the commit
tee to add an import duty on manga
| nese. Senator Oddie, Republican. Ne
i vada, will offer this proposal, however,
| when the bill reaches the floor.
After the committee's action, Sena
tor ^ Borah, Republican, Idaho, served
notice he would demand a tariff on
lumber if duties on copper and coal
are approved.
“I have doubted the wisdom of legis
lating on the tariff question in a tax
bill, ’ Borah said in an informal state
ment, "but I can see no possible reason
for including copper and coal that does
not apply to lumber.”
Borah added that he had not decided
how he would vote on a motion in the
Senate to exclude all tariffs, but was
certain that if tariffs were approved
they should include lumber.
aoui Republican and Democratic
Committee members had favored tack
ling the tariff issue at today’s session
Notice was served several days ago by
Senator Hull. Democrat, of Tennessee,
that he Intended to move elimination of
the tariffs now carried in the bill and
seek to bind the committee not to add
any more.
As the committee sat down to its
big job, members had at their elbow a
fat, 1,440-page volutre of testimony
given in the recent hearings.
Senator Reed. Republican, of Penn
sylvania. said he hoped a manufactur
ers’ sales tax. rejected by the House,
might be adopted by the Senate in lieu
of some of the excise taxes on selected
products.
Technical experts from the Treasury
joined the committee as it began iu
work behind closed doors.
BEATING AIR RECORD
Ahead of Record in England-Aus
tralia Flight.
RANGOON. Burma. April 25 UP).—
C. W. A. Scott, British flyer, attempt
ing to establish a new record for a
solo flight between England and Aus
tralia. arrived here yesterday from
Calcutta a few hours ahead of the
time of C. A. Butler, present holder of
the record.
Scott, who made the flight from Cal
cutta to this city in eight hours, yes
terday flew across the whole of India
tom Irtrvhi to nairutty .. _

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