Evening star. [volume], March 16, 1934, Page A-2, Image 2

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

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EXPERTS DRAFTING
NEW SMS BILL
Revised Measure Will Relax
Drastic Sections Wall
Street Opposed.
By the Associated Press.
A much revised Stock Exchange
control bill was being prepared today
for scrutiny by Secretary Morgenthau
and the full Federal Reserve Board—
the next important step in its path.
Eugene Black, governor of the Fed
eral Reserve Board; Tom K. Smith,
Morgenthau's special assistant on
banking, and several other Govern
ment experts worked into the small
hours of this morning in reshaping
the measure
They were under presidential or
ders to write a bili that Congress
would pass.
Requirements Smoothed.
In attempting to relax drastic sec
tions which have drawn vehement
protests from Wail Street and con
servative members of Congress, it was
evident that margin ^quirements
were being smoothed.
Details of the revision were with
held pending their final approval.
There were indications Morgenthau
and the Reserve Board might have
the redraft ready today. It was
doubtful, however, whether the con
ciliatory revision would be ready for
the Senate Banking Committee meet
ing scheduled for today.
Mr. Roosevelt has instructed the
Treasury and Reserve Board to study
the effect the bill might have on
banks and Government finances.
Original Pecora's.
The bill was drafted in the first
place by Ferdinand Pecora, who
directed the Senate investigation of
Wall Street practices, and James
Landis of the Federal Trade Com
mission. advocates of strong govern
mental regulation. The measure they
drafted stipulated a minimum cash
margin of 60 per cent, abolished
numerous practices considered ques
tionable, provided for corporate finan
cial statements at frequent Intervals
and gave the Trade Commission re
sponsibility for administration and
enforcement.
Wall Street quickly protested, find
ing objections in nearly every section
of the measure, but protesting princi
pally the phases of the bill outlined
above. The group of experts divided
Into two factions in disagreement over
modifying the margin requirements.
Then the administration stepped in,
President Roosevelt directing the
Treasury and Federal Reserve Board
to investigate the effect of the meas
ure on Government finances and the
banks.
ATTACKS ON OHO
CURBED IN AUSTRIA
Tenants of Imperial Palace Are
Ordered to Clear Out
Before Fall.
By the Associated Press.
VIENNA, March 16. — Tenants
occupying the former imperial palace,
seat of centuries of Hapsburg rule,
were ordered today to clear out before
the end of the Summer, and a news
paper was confiscated at Graz fgr
disparaging remarks about Archduke
Otto, exiled claimant to the Austrian
throne.
These two apparently unconnected
circumstances coincided with the
closing of the two-day conference of
Heimwehr leaders under Prince Ernst
von Starhemberg.
This meeting, held while Chancellor
Dollfuss is in Rome, issued a com
munique denouncing the governor of
the province of Vorarlberg for pre
suming to remove a Heimwehr leader
from his official position. The gov
ernor. Ender, minister for constitu
tional reform, is also a member of
the Dollfuss cabinet. Ender’s pres
ence in the ministry has been pointed
out as absolute assurance that the
long-promised new Austrian consti
tution would be democratic.
Heimwehr leaders at their meeting
also discussed the present political
situation and "consequences which
must necessarily be drawn therefrom.”
PLANE FIRM ASKS
$200,000 DAMAGES
IN. MITCHELL SUIT
(Continued From First Page.)
would be cited. The attorney said he
would not give more definite infor
mation until the declaration of the
suit is filed on or before the third
Monday in April. He issued the fol
lowing statement for the corporation:
"Gen. Mitchell has made in public
serious charges against Curtiss-Wright
Corporation, which is now calling
Upon him to prove those charges in
court.”
The suit was filed here as Gen.
Mitchell’s Middleburg home is within
the jurisdiction of this United States
District Court, which is presided over
by Judge Luther B. Way.
Boothe refused to state whether the
charges were brought against Mitch
ell as the result of a recent radio
speech made by the former chief of
the Army Air Corps or whether the
charges would relate to statements
Gen. Mitchell made in other public
addresses.
U. S. ASKS STRICKEN
VETERAN TO ASSUME
CONTROL OF ISLANDS
(Continued From First Page.)
1906, after which be served for a
year in the Philippine Bureau of
Lands.
His next step was to be lieutenant
governor of the Oriental Negroes
province, where he served from
March, 1914, to 1927. In 1929. he
became Governor of Sulu, and con
tinued In this office until the com
plete breakdown of his health in 1931
Fugate’s long experience as a
teacher gave him the sympathetic in
sight into the workings of the Moro
mind which enabled him to get along
with the turbulent people. He
grasped the fact that Uncle Sam's
Moslem subjects wanted above all
things to be left alone with as little
interference as possible in their
established ways of life. They re
sented an assumed superiority on the
part of officials.
--—«
Bolivian Troops Retreat.
ASUNCION, Paraguay, March 16
(4s)—The minister of war announced
yesterday Bolivian troops had been
forced back several miles in the
Campos Jurado sector of the Gran
Chaco, over which border area Bolivia
and Paraguay are at war.
I k
'I
What’s What
Behind News
In
Defeat of Waterway
Was Real Blow to
Roosevelt.
BY PAUL MALLON.
SCUTTLING of the St. Law
rence treaty was more of a
personal blow to Mr Roosevelt
than is publicly known.
He lobbied ardently back
stage for the treaty.
Wayward Democratic Senators were
called to the White House. Strong
arguments were used to make them
see the error of their ways.
7 he President could not over
come the sectional self-interest of
Easterners. They would not con
sent to sidetracking their commerce
to help the West and refused to
change their votes.
Politicians believe Mr. Roosevelt
would have won the entire wheat
belt over to the Democratic standard
for good if he had been able to put
it over.
Treaty Appears Doomed
Feelers are expected to go out short
ly from the White House to Canada
; looking toward negotiation of a new
treaty.
Administration manipulators are
confident they will have a better doc
ument to send to the Senate next
year for ratification. They are cer
tain they will be able to put it over
then.
They are merely singing In the
rain. The vote showed them 13
short of the necessary two-thirds
majority. The only reason they got
as many as they did was that five
' Democrats ducked the roll call. Pre
i ferring to be absent rather than brave
| the presidential wrath.
; Some very radical compromises will
j have to be made before Mr. Roosevelt
will ever get any kind of St. Law
I rence treaty through the Senate.
Farm Aid Totals *272,474,958.
No announcement has ever been
made of total amounts paid the farm
ers In benefits by the Federal Gov
ernment to date.
Up to March 8 it was $272,474,958.83.
! That does not include any loans,
I merely the outright payments, for
] cotton (rental and benefit payments);
i tobacco, wheat (acreage reduction and
export benefits): hogs and Federal
Surplus Relief Corporation purchases
of butter, cheese and hogs.
Good Market Bill Due.
It is now virtually certain that a
good stock market regulation bill
will come out of the current mess.
The Federal Reserve experts are
writing the credit sections of the new
bill. They know their business. The
young Anthony advocates have joined
with less liberal experts inside the
administration to correct defects of
♦he original measure.
The first humdinging bill of the
advocates has served a good politi
cal purpose. It paved the way for
a strong regulatory measure.
The man who started the ball roll
ing toward a compromise was Rep
pesentative Rayburn. He is supposed
to have trotted down to the White
House one evening and asked what
was what. Chiefly, he wanted the
Treasury and Federal Reserve Board
to get together and take responsi
oility for sections of the legislation
affecting business and credit.
The President is j supposed to
have called Treasury Secretary
Morgenthau and Gov. Black of the
Federal Reserve on the telephone
and started all the Government
machinery going in one direction.
Some bad feeling still exists among
the inner circles who were working
earlier at cross purposes. It will all
be straightened out when the satis
factory bill is arranged.
Turn to Cuban Market.
It was stated here recently that
Cuba could not buy a dime’s worth
of American Agricultural products.
That is relatively true, but the foreign
trade experts have hopes of building
! up the Cuban market to what it
was in 1928 and 1929.
In 1929 Cuban imports of our
meats amounted to $6,000,000; lard,
*9,600,000: wheat flour, *7.990,000;
potatoes $1,100,000; milk and cream,
$2,200,000.
Her Imports fell from a high of
$202,000,000 In 1928 to $28,000,000 in
1932, not because the Cubans stopped
eating but because they were too poor
to buy anything.
A boost In sugar prices Is what Cuba
needs to restore her normal appetite.
Installation of Army officers as
Government representatives on code
authorities has begun. Eight recently
were appointed. More will come later
The N. R. A. has had tumble getting
college professors for that work.
Railway workers are complaining
that they have been subjected to
much more than the advertised 10
per cent wage cut, just as Govern
ment workers have suffered much
more than the advertised 15 per
cent cut. When you figure in fur
loughs and part-time employment,
the cuts may average nearer to 20
and 25 per cent.
Those who follow Gen. Johnson
around do not like the way the bands
always receive him by playing “Who’s
Afraid of the Big Bad Wolf.” It has
happened three times now. Since the
change in N. R. A. method, they
would rather have “Love Is What
Makes the World Go ’Round.” 1
■
N. R. A. CALLS WIRE
Dill Proposes Senate Probe
of A. T. & T. “Monopoly”
During Summer.
By the Associated Press.
All telegraph companies were put
on call today by the N. R. A. to ap
pear here early next week to help
work out and accept a code for their
industry.
Exercise of this seldom-used N. R.
A. power—demanding that a group
accept a code—was taken just as a
Senate investigation of the American
Telephone & Telegraph Co. was pro
posed at the Capitol.
Chairman Dill of the Senate Inter
state Commerce Committee, at the
conclusion of hearings yesterday on
the Dill-Rayburn bill to regulate _11
communications, said he Would Intro- i
duce a proposal next week to investl- |
gate what he termed "the telephone j
monopoly."
Pecora Mentioned.
“I would like to get Ferdinand
Pecora (Senate Banking Committee
counsel) to make the Investigation,
providing the Banking Committee
plans no hearings during the Summer
recess,” Dill said.
The telegraph industry was ordered
by the N. R. A. to appear here April
2 lor a hearing on what hours and
wages should be established for the
industry. The demand was made
under a clause in the industrial law
permitting the N. R. A. to write a
code or modify one already submitted
if the public interes requires it.
The code previously submitted by i
the industry was termed “wholly un
satisfactory.’’
Dill announced his plans after sev
eral witnesses had criticized the -A.
T. & T. for alleged monopolistic prac
tices. He said "it will be a good thing
for the country to have some facts”
about the organization.
Gifford Hits Bill.
Walter S Gifford, president of
A. T. & T.. criticized the communica
tions bill before the committee early
this week as too drastic and as going
far beyond President Roosevelt’s rec
ommendation for a Federal commis
sion.
Dill told newspaper men yesterday
some changes would be made along
the lines suggested by Mr. Roosevelt,
but added the “general principles of j
the bill ought to be retained.”
E. H. Ncckels of the American Fed
eration of Labor and Frank Powers,
international president of the Com
mercial Telegraphers' Union, told the
committee A. T. & T. had a monopoly.
Powers said the company made Us
wires available for telegraph purposes
at lower rates than when used for
telephone communication. He added
A T. & T. owned the Western Union,
but when asked by Senator White,
Republican, of Maine, what he based
that on, said it was only heresay and
newspaper information.
"Monopoly” Protested.
Nockels placed before the commit
tee resolutions adopted by the Amer
ican Federation of Labor protesting
against the alleged monopoly. John
Benton, solicitor for the National As
sociation of Public Utilities Commis
sioners. approved the bill because, he
said. State commissions would still
exercise control over State telephone
rates.
Chester Leasure, speaking for the
United States Chamber of Commerce,
opposed the bill as too drastic. He
said it would interfere with the con
tinued efficiency of the communica
tions services.
Father John B. Harney, speaking
for station VLWL, New York City,
approved the radio provisions. He
protested against the alleged mo
nopolistic control of radio and said
the new commission should initiate a
new policy of regulation.
Appearing for the Navy Depart
ment. Capt S. C. Hooper urged
strengthening of the provisions against
foreign stock ownership in American
communications companies.
-0-- -
PAL OF DILLINGER
BELIEVED CAUGHT;
DIES OF WOUNDS
(Continued From First Page.)
crossed the St. Clair River into Can
ada in a boat at about the time
Youngblood was shot, got into a wait
ing car and sped away. Ontario po
lice were notified.
Every exit from South Port Huron
immediately was placed under guard
by sheriff’s officers, State police and
local police, and other officers be
gan a systematic combing of the
suburb, in search of the fugitives’
hide-out.
It was on March 3 that Dillinger
walked out of the Crown Point jail,
leaving guards and deputies locked
in cells. Since then, he and Young
blood have been reported in many
section of the country, and at least
one bank robbery attributed to them
The search has centered for the most
part in the Chicago area, where the
automobile of Sheriff Lillian Holley,
in which Dillinger and Youngblood
had fled, was found.
Dillinger, captured In Tucson, Arir,
after a search of many months that
started when he was freed from the
Lima, Ohio Jail in a bloody foray by
outlaw aides, faced a murder charge
In Ciown Point for the slaying of a
policeman. That was one of many
killings attributed to him during his
brief career of crime which earned
him the title of "cop-killer.”
ON HONOR LIST
Russell E. Dorrell and Barry
Mulligan Named by Carnegie.
Russell E. Dorrell and Barry Mulli
gan, both of this city, have been
named on the honor list of the Car
negie Institute of Technology for the
first semester, according to word re
ceived here.
Dorrell is the son of Mr. and Mrs.
James C. Wood, 3700 Homer place
southeast, and is a senior in the de
partment of electrical engineering.
Mulligan lives at 2800 Thirteenth j
street, and is a junior in the drama
department.
INSPECTOR GRAVELY ILL
Police Inspector Ogden T. Davis,
who has been critically ill with
pneumonia and influenza at his home,
1408 Crittenden street, was rushed to
George Washington Hospital today
and placed in an oxygen tent in an
effort to save his life.
Inspector Davis, who is commander
of the second inspection district of
the Metropolitan Police Department,
has been ill for two weeks.
This morning his condition took a
sudden turn for the worse, and his
physicians decided the use of an
oxygen tent was necessary. The fire
rescue aqusd took him to the hospital
ft
JOHNSON OFFERS
AUTO PEACE PLANS
Proposes Two Courses to
Avert Strike That Would
Hamper Recovery.
(Continued From First Page.)
today the strike would start next
week, hampering the best production ,
year the Industry has experienced
since 1929 and setting an example to
labor in other lines.
The automobile strike threats were .
only part of Johnson’s troubles. He
was listed as a witness before the
Senate Labor Committee on the Wag
ner bill, designed to strengthen the
Labor Board against just such con- ]
tingencies as it now faces. Whether j
he would have time to appear was
doubtful.
A prediction that continued evasion 1
of the labor provisions of the recovery
act ‘’will breed revolt” was given the
committee today by John L. Lewis,
president of the United Mine Work
ers of America.
« Lewis said "the continued denial i
and wretched evasion” of the col- |
lective bargaining clause of the recov- 1
ery law “has caused unrest and will 1
breed revolt apart from any question
of wages ”
Would Ban Company Unions.
The bill, by Senator Wagner, Dem
ocrat. of New York, would outlaw
company unions and make permanent
the Labor Board, of which he is chair
man.
Labor. Lewis said, understood that
in return for suspension of the anti
trust laws Industry would recognize
the right of employes to organize, but
was “deeply grieved because of the
bad faith evidenced in the attitude of
maior employers.”
The steel and automobile Industries j
were singled out by him for particu- j
lar criticism as to their attitude j
toward labor. He said they were I
willing to take all the benefits of the i
N. R. A., but still denied equality of
bargaining power to labor.
The only unions in the steel in
dustry. Lewis told the committee, are
company-dominated ones. He cited
testimony to the Labor Board as evi- ,
dence of violations of the recovery act
by the automobile industry.
He said this evidence showed com
pany unions were organized in the
automobile industry to prevent col- ;
lective bargaining and disclosed re- j
peated Instances of coercion, intimi
dation and discrimination against
employes who Intended to join other
organizations.
Rail Groups to Meet.
Representatives of a million rail
road workers prepared to meet this
afternoon with rail managers on a
proposal for continuing the present
10 per cent wage cut until April 30,
1935.
The managers withdrew their pro
jected 15 per cent cut plan. Labor
leaders suggested a suspension of ne
gotiations until January.
Johnson also had today another
hitch to untangle In his proposed
hour-shortening plan. A special com
mittee of code leaders suggested that
real compliance with the codes had
to come first, and that each industry
should work out Its best possible con
tribution to further re-employment. |
The committee report, signed by
George A. Sloan, head of the cotton
textile code authority, and 12 other
industrialists, proposed that qualified
code authorities be given power to
punish violators; that Government
compliance staffs be enlarged and
that “wilful and deliberate” violations
be stamped out without delay.
Charge 7-A Violations.
Green and Father Francis J. Haas,
also a member of the board, testified
to the Senate committee yesterday
regarding a huge increase in the num
ber of company unions since the na
tional industrial recovery law went
into effect less than a year ago.
Their argument was that this was
evidence that the employers were at
tempting to evade the famous section
7-A's provision that workers should
have the right to organize as they saw
fit and bargain collectively through
representatives of their own choosing
without coercion by employers.
Father Haas directed himself espe
cially to the troubles with the com
pany unions.
“The impropriety of the company
union,” he said, “is clear when it Is
remembered that the typical company
union scheme requires workers to
chose as their bargainers persons
who are paid, in whole or in part, by
the employer with whom the workers'
case is being bargained.
Recent Case Recalled.
“In a recent case before the Na
tional Labor Board, involving over
4,000 employes, the labor adjustor
and the two attorneys for the workers
received half of their compensation
from the company and half from the
employes.”
Meanwhile, another outgrowth of
the company union issue was quietly
developing at the Justice Department.
There it was made known that a
decision virtually had been reached
to seek an injunction to prevent the
Weirton Steel Co. from interferring
with a proposed election at which
employes would select representatives
for collective bargaining.
Green used the Weirton case to
bolster his argument against company
interference in labor matters and the
formulation of company unions before
the Senate Committee. Advocating
the passage of the Wagner biU he de
clared Ernest T. Weir, president of
the steel company, should be branded
a “public enemy” and that he "stands
as a challenge to the Government.”
Confirms Priest’s Story.
Green also cited instances of men
serving as labor representatives in
disputes who were paid in part or in
whole by the companies and said:
“What hope have the workers un
der such a plan? Is it any wonder
that social unrest is rising?”
The automobile hearing before the
Labor Board ended with a demand
by William Collins, American Feder
ation of Labor organizer, that the
company executives be required to re
main at the hearing in hope some
solution to the impasse might be
found Clay Williams, acting chair
man of the board, however, pointed
out the board had no power to de
mand attendance.
Before the witnesses, both employ
ers and employes, left the board to its
executive session. Williams did re
quest all those attending to leave their
addresses so they could readily be
reached.
Knudsen read a telegram to the
Bulck Co. requesting a labor confer
ence. This, he said, received on
March S, was the first indication that
company had of dissatisfaction on the
part of employes. He said the com
pany had “conscientiously endeavored
to live up to both the letter and spirit”
of the code, which it signed, although
It received no advantages from the
code. .
Knudsen declared in the past all
disputes had been settled satisfactor
ily through works councils whenever
direct negotiations were found neces
sary.
The special commutes of code
1
New Corporation Counsel Takes Office
E. BARRETT PRETTYMAN SWORN IN TO SUCCEED W. W. BRIDE.
E. Barrett Prettyman new corporation counsel for the District, taking the oath of office. Left to right: Com
missioner Hazen, Daniel E. Garges, secretary to the Board of Commissioners; Mr. Prettyman and Commissioner
Allen. —Star Staff Photo.
-A - A
leaders, representing the consumer
goods Industries—those which make
shirts, shoes, cigarettes, sparkplugs,
etc.—urged Johnson to abandon ideas
of reducing hours by executive order
and maintained that unless the "chis
elers” were made to do their part first,
honest employers would be tremen
dously penalized and would lose still
further ground to the ‘‘dishonest com
petitor.”
Besides the real compliance effort—
which N. R. A. is planning to spring
soon—the committee asked that de
termined effort be made to bring all
industries under codes. This request
coincided with N. R. A.'s demand that
the telegraph companies come in for
a code hearing April 2, when it will
hear testimony as to what wages and
hours should be established for them.
The submitted code already has been
labelled unsatisfactory, but never be
fore has N R A. ordered any group
to come and take a code.
The consumer group, headed by
George A. Sloan, president of the Cot
ton Textile Institute, made suggestions
on each of the 12 reform points out
lined by Johnson early in the recent
public hearings.
Full Data Is Sought.
On wage and hours changes In re
gard to their industries, the commit
teemen proposed that N. R. A. call in
code spokesmen for each industry to
submit information on the ability of
the industry to stand pay roll in
creases, and that quick conclusions be
reached between N. R. A. officials and
the code authorities.
They insisted that "it would be most
unfortunate to inject a compulsion
which industry has at no time antici
pated under its partnership relation
with the Government.”
On enforcement, the men urged
posting of code provisions in public,
and that the right to impose penal
ties on violators be accorded to all
code authorities deemed by the ad
ministrator to be properly qualified,
using the penalties for defraying ad
ministration costs.
The General Electric Co. and the
National Electrical Manufacturers’ As
sociation yesterday challenged the
Jurisdiction of the Recovery Review
Board, headed by Clarence Darrow,
over allegedly monopolistic practices
not directly under the electrical code.
Phillip P. Reed of New York, com
pany counsel, said complaints made
at a hearing concerned events taking
place before the code was adopted.
He added the company had "good an
swers.” but said the Federal Trade
Commission had jurisdiction. The
commission has begun an investiga
tion, he said.
Point Is Disputed.
W. B. Rice of New York and
Thomas E. Rhodes of Washington,
lawyers for the Independent lamp
manufacturers, said the commission
was not inquiring into N. R. A. and
claimed jurisdiction for the board.
Chairman Darrow promised a de
cision some time today.
The dispute came at the eftd of the
first hearing held by the new board,
after independents had alleged pro
posed code provisions would amount
to price-fixing, and give General Elec
tric a larger share of the lamp busi
ness than the 93 per cent they said it
already had.
FIRE oiTwARCRAFT
TO BE INVESTIGATED
Naval Court of Inquiry to Probe
Fulton Case—Blast Limit
Mystifies.
By the Associated Press.
HONGKONG, March 16 —A naval
court of inquiry tomorrow will con
duct an examination into the burning
of the United States gunboat Pulton
north of Hongkong Wednesday night.
The session will be held aboard the
gunboat Tulsa, which was standing by
the still-smoldering Fulton today in
Junk Bay.
Only one magazine of the Fulton,
it was disclosed, was flooded by open
ing seacocks. Fire pipes were put out
of action shortly after the fire broke
out, and why another magazine which
was not flooded did not explode was a
mystery. Its outside portion was
burned.
The crew of 187 of the Fulton was
rescued by the British destroyer H. M.
S Wlshart.
G. W. DEBATERS TO MEET
PRINCETON PAIR TONIGHT
Teams Will Argue Wisdom of
Boycott of German Goods by
American Public.
George Washington University and
Princeton University will meet here in
debate tonight to discuss the question,
"Resolved, That the American People
Should Boycott German Goods.”
Theodore Pierson and Richard
Buddeke will take the negative, rep
resenting George Washington, while
Gordon Craig and J. B. Schaner ol
Princeton will uphold the affirmative.
In line with the university’s policy
to emphasize the value of discussion
rather than the spirit of competition
in intercollegiate debates, no decision
will be rendered. An open forum will
follow the debate, which will take
place at «:15 p.m. in Corcoran Hall
on the university campus. ■.
i
BEFORE a gathering of employes
of his new office, friends and
District officials, E. Barrett
Prettyman today took the oath
of office as corporation counsel
of the District. Prettyman succeeds
W. W Bride, whose resignation be
came effective yesterday.
Prettyman was Inducted into office
at a brief ceremony at 10 o'clock In
the office of Commissioner Melvin C.
Hazen. Most all of the assistant cor
poration counsels and the. clerical force
of the department witnessed the cere
mony. Commissioner George E. Allen
also was a witness. The oath was ad
ministered by Daniel E. Gargcs, secre
tary of the Board of Commissioners. |
Prettyman said afterward he had no 1
announcement to make at this time
as to any change in the operation of
his department and that he contem
plated no changes in personnel. He
said he planned to make no changes
in policies, at least until after he
had familiarized himself with the
duties of his office.
Prettyman just recently completed i
duties as general counsel to the Bu
reau of Internal Revenue. He re
signed that post when Secretary of
the Treasury Morgenthau planned to
appoint men of his own choosing for
responsible posts under the Treasury.
In the Federal post, Prettyman was
succeeded by Robert Jackson.
Bride today was taking a brief va
cation at his resort in Delaware prior
to his return to private law practice.
He still will be In District service,
however, since he has accepted ap
pointment as chairman of the Dis
trict Board of Indeterminate Sen- 1
tences and Parole. The post carries
no salary.
All members of the legal depart
ment, including the clerical force, !
staged a farewell banquet for Bride
last night at the Mayflower Hotel.
Vernor E. West, principal assistant !
i corporation counsel, was toastmaster.
A gift from members of the depart
ment was presented to Bride by
Robert E. Lynch, assistant corporation
counsel.
BOSTON EVICTION
PROBE IS CLOSED
A. A A. Agent Exonerates Land*
lord's Case as “National
Turnover.”
By the Associated Press.
TY.'ONZA. Ark., March 16 —E. A.
Miller, an agent of the Agricultural
Adjustment Administration, today
closed his investigation into the evic
i tion of Ed Boston from a farm near
Tyronza. and exonerated his former
landlord.
“There is no decision in the case
for us to make,” sillier said. "Last
Pall Boston signified his intention of
leaving. Another family was secured
: to take his place. When Boston found
he was unable to find another ‘crop’
he refused to leave and was evicted.
I have an affidavit to that effect.
"There is no provision in the code
requiring planters to retain their
identical tenants, just so they retain
a number in 1934 equal to the num
ber employed in 1933. There is a
natural turnover.”
Norman Thomas, the Socialist lead
er, was among those protesting Bos
ton’s eviction. Boston was one of a
group of sharecroppers described by
Thomp as “forgotten men.”
Miller said he had found “a few
instances” of failure of Arkansas
landlords to comply with the pro
vision of the cotton agreement, but
there was absolutely no evidence of
“wholesale chiseling” among Arkansas
farmers.
HOUSE STANDS PAT
ON SALARY RETURN
PROGRAM IN VOTE
(Continued From First Page.)
Committee had supported and which
was understood to be acceptable to
the administration, namely. 5 per cent
as of February 1 and another 5 per
cent July 1.
The House also voted Tuesday for
compromise war veterans’ provisions
substantially similar to thoee advo
cated by Senator Byrnes of South
Carolina, one of the administration
spokesmen in the Senate. The Sen
ate, in passing the bill two weeks ago,
however, had adopted the more lib
eral Steiwer-McCarran veterans' pro
gram.
When the bill came back to the
Senate yesterday containing the com
promises voted by the House Tuesday
the Senate could either have con
curred in those proposals, which
would have settled the pay and vet
erans' sections, or disagree and ask a
conference. The latter course was
chosen.
In the House now, a new threat by
the powerful ex-soldiers’ wing faces
administration leaders. This is seen
In the statement by Representative
Connery, Democrat, at Massachusetts,
that he would attempt to have the
entire question at veterans’ and Fed
eral employe benefits reopened for up
ward revision.
Hayden Mail Bill Fasted.
A bill by Senator Hayden, Demo
crat of Arizona, to prohibit the send
ing7 of unsolicited merchandise, for
sale1, through the mails was passed
yesterday by the Senate and sent to
Ul« bouM.
1
Princess Anne Druggist De
nies He Took Part
in Affair.
By the Associated Press.
William H. Thompson. Princess
Anne. Md.. druggist, today denied to
a Senate committee that he partici
pated in the lynching ot George
Armwood last October.
Thompson was named by William
Preston Lane, jr.. attorney general of
Maryland, at a Senate hearing two
weeks ago on the Costigan-Wagner
anti-lynching bill as one of the par
ticipants In the Armwood lynching.
"I am thankful for this opportunity
to state my side,” Thompson said as
he appeared before the judiciary sub
committee considering the measure.
Thompson then read scores of let
ters "from respectable men of the
community,” attesting to his good
character.
"I am innocent of any charge per
taining to the lynching of George
Armwood.” Thompson said. "I was
not In town that night—I can prove
with witnesses that I was in Salis
bury at a moving picture.”
Saw Large Crowd.
Thompson told the subcommittee
that at 9 p.m. of the night of last
October 18. when Armwood was taken
from the jail at Princess Anne and
lynched by a mob. he was "just about
leaving the moving picture show at
Salisbury.”
"We got back to Princess Anne at
9:45,” he said. "There was such a
large crowd and so many cars, we
could not get closer than a block to
the drug store. I thought some one
was making a speech.
“I left my wife in the car and
walked through the crowd to the
store, then I found out what had
happened.” On questioning. Thomp
son estimated the size of the crowd
as 1.000. He said he had recognized
only one person In it. -
Armwood had already been lynched
when he arrived back In Princess
Anne, Thompson said.
Saw No Violence.
Questioned by Senator McCarran.
Democrat, of Nevada, on the temper
of the people of Princess Anne, during
the period when Armwood was re
moved to Baltimore and then re
turned to the Eastern Shore following
his arrest on charges of criminal
assault. Thompson said he had not
observed any indications of impending
mob violence in Princess Anne.
"Had you expressed yourself as to
what ought to be done with Armwood.
"Yes." Thompson said. “I said he
should be given a trial quickly and
the case should not be delayed as
that of Euel Lee.”
"Didn’t you express what you
thought should be done with Arm
wood?” McCarran asked.
"No. That wouldn't have been
proper because he hadn't been tried
yet.” he answered
Thompson said that on the morning
after the lynching, he was asked to
serve on a coroner’s jury and went
to the scene of the lynching with
other members of the jury. He said
photographs of the jury were taken
and that two State policemen, whom
he had never known, identified him
as one of the lynchers on seeing this
photograph in a newspaper.
Wife Is Heard.
rnompson was ionowea Dy ms wue.
who corroborated the druggist's ac
count of having been at the movies
in Salisbury when the lynching took
place. She said that from the time
her husband came home to dinner
until they arrived home in Princess
Anne after the lynching he had never
been out of her sight.
Mrs. Thompson said she had lived
in Princess Anne all her life but had
been unable to recognize a single per
son in the huge crowd milling about
in the streets of Princess Anne on
her return there.
“Did the crowd seem angry or ex
cited?” asked Chairman Van Nuys.
“No. They seemed surprised and
shocked.” Mrs. Thompson replied.
The next witness was Mrs. Lee Hay
man, a friend of the Thompsons and
the wife of a Princess Anne hardware
merchant. She told of having seen
Mr. and Mrs. Thompson return to
Princess Anne after the lynching. She
said she had been In front of her
husband's store while the crowd was
taking Arm wood from the jail and
hanging him.
Could Not Identify Any One.
Like Mrs. Thompson, she was un
able to identify a single person in
the crowd, she odd.
“Doesn’t it seem peculiar to you
that you were unable to recognize any
one?” asked Senator Van Nuys, Demo
crat, of Indiana, chairman of the
committee.
“Yes, it was peculiar,” Mrs. Haym&n
said. “They were people I had never
seen before and I suppose they were
people from out of town.”
"How did these strangers get Vnto
town—where were their autos or
horses?” Van Nuys asked.
Mrs. Hayman said she saw no horses
and did not see many out-of-town
automobiles until later that night.
She said she bad left hjf horns and
t
R. F. C. ASKS POWER
TO BROADEN WORK
New Legislation Would Au
thorize Body to Engage
in General Banking,
Copyright. 1934. by tha Associate^ Pres*
Unprecedented powzr to engage In
a general banking business, heretofore
confined to private banks, was sought
today by the Reconstruction Finance
Corporation.
Jesse H. Jones, chairman of the
Corporation, will be called before the
Senate Banking Committee tomorrow
to explain the necessity for the legis
lation just submitted on behalf of the
R. F. C. board. Under it, the Corpo
ration could loan direct to Industry.
Long a critic of the lending policy
of private banks. Jones is expected to
urge the measure as a means of pro
viding sufficient credit for industrial
recovery.
The proposed power would be con
ferred under the broad terms of a
bill, drafted by the R. F. C., which
also would grant authority for financ
ing foreign trade and extend the
corporation’s functions in other direc
ti (MIS.
Whether the bill had the approval
of President Roosevelt was not im
mediately disclosed, but many argued
the Chief Executive must at least
have known of the proposal.
Would Aid Industrie*.
Taking cognizance of steps already
underway to create a system of Fed
eral Intermediate credit banks under
the Federal Reserve Board for lend
ing to industry, Jones said the board
did not want to oppose that proposal
If this banking system is completed
he said, “it would not be necessary
for the R. F. C, to make such loans,
but we could be in a position to do
so if desirable."
The R. F. C. bill would authorize
loans up to five years to industrial
and commercial concerns “to enable
such business to obtain working cap
ital, reduce and refinance its out
standing Indebtedness, or make plant
improvements or replacements.”
They could only be made, however,
to companies employing 10 people or
more, that were fully complying with
the N. R. A.
To provide for smaller enterprises,
the bill would permit the R. F. C. to
"purchase a participation” up to 75
per cent in loans for commercial and
industrial purposes by private banks.
Jones personally recommended that
Federal Reserve banks be given au
thority to make loans, with the ap
proval of the resen# board, to com
merce and industry for as long as five
years.
Would Fill Credit Needs.
"Such an amendment to the Fed
eral Reserve act, coupled with the
proposed amendments to the R. F. C
act, would meet all legitimate credit
requirements of business ar.d lrdus
try," he said.
Under the private loan provision of
the bill, the R. F. C. would be per
mitted to loan to "any established in
dustrial or commercial business "on
promissory notes, acceptances, redis
counts, purchase of securities or other
wise" for the purposes stated.
Under the foreign financing section,
the R. F. C. would be authorized to
extend credit to expand trade either
by direct loans to exporters up to five
years, or through export banks owned
by the United States.
The corporation noted that "other
' leading industrial nations, almost
without exception, have provided aid
, to their exporters by furnishing mid
dle and long term credits, by estab
lishing limited credit insurance facil
' ities, or by actually assuming a por
i tion of the risk involved.”
I Another significant section of the
i bill, designed to facilitate the reor
i ganization of railroads, would permit
i the corporation to compromise claims
against carrieis with the approval of
the Interstate Commerce Commission.
Other important provisions of the
measure would;
fA) Permit the R. F. C. to make
additional loans to complete and en
large self-liquidation projects for
; which advances had already beep ,
| made;
(B) Increase its fund available fc
I reorganizing drainage and lrrigat o
I districts from $50,000,000 to $100.
000,000;
(C) Authorize the R. F. C. to sub
I scribe for preferred stock or purchase
1 capital notes of mutual insurance
companies;
(D) Facilitate the corporation In
suing through the courts for liquida
tion of collateral on loans;
<E) Permit the corporation to ex
tend loans so that they could be re
paid after recovery has been achieved;
<F) Authorize loans up to five years
instead of three as at present.
shoem/uTer SHOWS .
SPEECH INVITATION
■
Contradicts Press Dispatch Frcr’
Dean Denying Arrange
ments.
Representative Francis H. Shot
maker of Minnesota today contra
j dieted a press dispatch from Minne
I a polls quoting E. E. Nicholson, dean
! of student affairs at the University of
Minnesota, to the effect that he knew
of no arrangements for the Repre
sentative to speak at the university
March 28.
Yesterday Shoemaker told Judge
Isaac R. Hitt in Police Court that he
! was to speak in Minneapolis on that
date and for that reason wished a
postponement of hearing on charges
of assault brought by Charles New
man, a taxicab driver.
The hearing was postponed to April
4 and Nicholson later denied knowl
edge of the date.
Shoemaker today showed an invita
tion from M. E. Haggerty, dean of the
College of Education at the univer
sity, inviting him to attend a confer
ence at the university to improve ed
ucational conditions. Shoemaker said
he was making plans to address the
meeting March 30 and if he found it
impossible to do so would give suf
ficient notice.
gone to her husband's store early in
the evening "because I didn't want to
stay in the house alone with that
crowd around.” She said she had
recognized no one on her trip from
her home to the store.
At one point in her testimony Mrs.
Hayman said that she didn't even
know that Arm wood was hanged "of
my own knowledge.”
“I didn't see them take him from
the jail or hang him,” she said. “All
I saw that night was a large crowd."
Mrs. Hayman said she had not dis
cussed the lynching with any one
since the night it took place.
“We don’t talk about it,” she odd.
k