Evening star. [volume], July 16, 1934, Image 1

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

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weather. The only evening paper
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fair and slightly cooler tonight and ■ in U ashington With the
tomorrow, gem* north shifting to north- MAssociated Tress News
mM or east wind* Temperature— M ■ , . ■ V ■ w *
Highest, r? at 6 30 pm yesterday, low* ■ ■ B B 1/ service,
eat 7} at 5 am today. il
Full report on j*f* 0 ^B B L————————————
Doting N. Y. Markets, Pages 14,15 & 16 _ ?*L|!n.V , l08,214 ;iLPuo.V 122,054 -
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SAN FRANCISCO PARALYZED BY STRIKE
BUSINESS AND TRAFFIC CEASE;
MORE TROOPS ORDERED TO CITY;
WAGNER TO GO AS ARBITRATOR
■ ■ ■ A___ - - ■ .___. •!•
Grocery Store
Is Looted by
FOOD SUPPLY
Pickets Warn All
W alkin" to V^ork
to Turn Back.
BULLETIN.
SCRANTON, Pa., July 16 OFV—
William Green, president of the
American Federation of Labor,
aays he does not look for a quick
aettlement of the general strike
called In San Francisco.
•'I see no prospect of any im
mediate clearing up of the San
Francisco situation,” he remarked
when questioned about conditions
on the Pacific coast.
By the Associated Press
SAN FRANCISCO, July 16 —Com
pletely paralyzing the metropolitan
area with a population of more than
1,300,000 persons, the general strike
railed by labor unions became effec
tive at 8 a m. today.
All business and street car traffic
Ceased and the National Guard moved
swiftly to prevent violence.
Tanks were en route to the city,
bearing machine guns and one
pounder guns. Orders to proceed at
once to the area were received by the
160th Infantry (National Guard) at
Los Angeles. A Field Artillery unit
got under way from Salinas with 75
milhmeter guns.
The National Guard force here was
Increased to 4,000 men, 2.000 troopers :
being moved quickly Into the city.
Headquartres of the Ouard on the
water front was a scene of feverish
activity.
Store Is Looted.
Violence broke out here and in the
transbay region Police said a mob
of nearly 1,500 men stormed and
looted a grocery store at Twenty-third
and Mission streets. •
At Hayward 50 men raided an
alleged communistic headquarters,
dragged the furniture to a nearby lot
and set It afire.
Pickets approached pedestrians and
warned them not to go to work, i
Arising early, thousands of persons
trudged miles to their offices.
Most of them ignored the few pass
ing automobiles, apparently fearing
even private machines would be at
tacked.
Rossi Is Threatened.
Mayor Angelo Rossi, whose plea to
Acting Gov. Frank Merriam had j
resulted in more Guardsmen being;
rushed here, was the target for abuse
shouted by six alleged Communists as
he came to the Hall of Justice to con
fer on the strike crisis
Chief of Police William J. Quinn I
personally came to the Mayor's aid
and arrested the men
The mob which stormed the grocery
Store here smashed the doors and
stripped the place of $2,000 worth of
groceries before police riot squads
arrived
Running the strike blockade under j
the State highway police convoy, the
first fleet of trucks, laden with food, j
neared San Francisco from Sacra
mento.
The heavily guarded trucks carried
meat, bread and fresh produce.
Trucks Overturned.
Acts of violence increased alarming
ly in the East Bay region.
An egg truck was overturned at San
Ramon. Strike pickets cruised in
Livermore, issuing warnings to gaso- j
line station operators to close up.
"Either close up in two hours or we
Will do it for you." the pickets warned
A truck carrying a load of pears was
Bent hurtling into a canyon at Dublin.
Creosote bombs were hurled through
windows at the home of Hsrry G.
Burton, employe of the Oakland Port
Commission.
Rocks were reported thrown through
the windows of two small grocery
stores and the truck of one Chinese
merchant was found overturned
Butcher shops and several large
markets remained closed in Oakland.
Chain stores were open today, but the
managers said they were not sure'
what they would do tomorrow.
Vegetable Truce Made.
Julio Firpo. president of the Bay
Cities Vegetable Growers' Association,
announced an agreement with the
East Bay Strike Committee whereby
grocers will be permitted to stock up
on fresh fruits and vegetables at the
Oakland Wholesale Market Tuesday
morning. Firpo said supplies of gaso
line also will be available there for
merchants
At the Presidio. Army headquarters
here, officers said they were maintain
ing a "watchful waiting" attitude.
No orders had been received to
mobilize the Regular Army troops
"We feel that the State of Cali
fornia will be able to cope with the
iContinued on Page 4. Column 1.)
Cuide for Readers
Page
Amusements.B-16
Comics .B-12
Features.B-ll
Financial . A-14-15
Lost and Found.A-9
Radio . B-13
- Serial Storv . B-8
Society .B-2-3
Sports.A-12-13
A
Is Communism Buck of Strike'!
Han the Pan fir Coast been selected by Communists as the focal point
of a drive to overthrow all governments with the Government of the
United States the immediate objective? Is the present general strike m
San Francisco one more advance on that objective?
An Associated Press dispatch from San Francisco appearing in The
Star on June 28 quotes Albert Hogardy. Communist organizer, as de
claring recent strikes in the rich Imperial and San Joaquin agricultural
sections were part of a widespread revolutionary program aimed at
overthrow of established government.
Federal, State and agricultural organization offlnals agreed with
the Communists that California was particularly vulnerable to the plan
ned revolutionary movement because her perishable crops require quick
handling
Communism Taught in Schools
While efforts are being carried on to combat the spread of Com
munism during the coming harvest season, the Communists conducted
schools in Los Angeles, San Francisco and Sacramento, teaching hun
dreds the pnnciplts of their beliefs
"The workers no longer believe in the advice handed out by William
Green, head of the American Federation of Labor, that thy should not
strike at a crisis because public sentiment would be against them,"
Hogardy declared at Sacramento.
"The longshoremen’s strike proved that a crisis is the psychological
time to press the issue. That illustrates the reason we follow California
crops.”
Ask Six-Hour Day.
The aims of the Communist party, as outlined by Hogardy. include
a six-hour working day, full political and economic equality to both men
and women, abolishment of child labor, political and economic equality
to the Negro race, cancellation of all Federal debts on small farms, con
trol of all large farms, control o) all industries, banks, etc., and installa
tion of the Soviet prison system, wherein convicts conduct institutions
on "self-government" basis, without guards.
The Communists have filed for every county office at Sacramento
for the coming elections
Meat Supply Almost Ex
hausted—Hospitals to
Be Supplied.
—
By the Associated Press
The food situation in the San
Francisco metropolitan area was esti
mated today to be about as follows:
There is little fresh meat, and the
supply is rapidly becoming exhausted.
Smoked meats, hams and bacons—
which housewives have been buying
heavily because such meats keep
well—are about gone.
The larger hotels, which have facil
ities for food storage, insist they will
be able to feed ‘regular guests.”
Patrons of smaller hostelries, in some
instances, have filled closets In their
rooms with canned foods to meet
eventualities of the "siege."
Fresh meats and other necessary
foodstuffs will be supplied hospitals
by special dispensation of the Gen
eral Strike Committee.
Hundreds of restaurants have
closed, others say they will have to.
Relief Stations Depleted.
One reliel station, feeding 100 per
sons daily, was down to a fare of
beans yesterday.
Beans, spaghetti and tinned meats
were in biggest demand. Food stocks
of most grocery stores were near
depletion.
No interrupition. at least immedi
ately, is anticipated in the supply of
milk and bread, although a stoppage
of bakery deliveries was possible.
Supplies of butter, eggs and sugar
are so low that many grocers have
limited the quantity each customer
may buy. Early exhaustion of the
present supplies is foreseen unless
means are found for getting more
into the city soon. Fresh vegetables
and fruits, excepting oranges, already
are regarded as luxuries.
Eighteen restaurants were desig
nated bv strike leaders^ to remain open
(Continued on Page 4, Column 8.)
STORED EXPLOSIVES
GO OFF; HEAT BLAMED
Bucharest Rocked by Blast.
Three Soldier Guards
Reported Hurt.
By the Associated Pres*
BUCHAREST. Rumania. July 16 —
Bucharest was rocked by a heavy de
tonation today when old explosives,
stored underground near Tunart.
blew up. apparently because of exces
sive heat.
Although it was rumored that three
soldiers on duty there had been killed,
the official report mentioned only that
three guards were slightly injured It
was said officially that the property
loss was small since, although a large
quantity ol explosives was lost, it was
of little value.
Many windows in Bucharest were
shattered,
STRIKE OUTBREAK
ISFATALTOTHREE
Three Dock Workers Are
Wounded in Houston
Labor Troubles.
By the Associated Press
HOUSTON. Tex., July 16—The roar
of gunfire on the water front, leaving
three men dead and three others
wounded, created a tense situation to
day In Houston's dock labor troubles.
The outbreak occurred as 20 col
ored independent longshoremen were
riding to work yesterday. A coupe,
which police believed carried members
and sympathizers of the International
Longshoremen's Association, drew
alongside Rnd pistols and shotguns
pouted a stream of lead into a truck
and a motor car occupied by the men
Union Worker Wounded.
One ot the colored Independents
jerked out a pistol and returned the
fire, wounding C. O. Reeves, union
longshoreman. The colored man's pis
tol fire was cut short when a bullet
felled him.
Those killed were Prank Rowland
and Jim Barnes, riding in a sedan
which followed the truck, and George
Hardy, who was in the truck. Joe
Henry, another occupant of the truck,
received probable fatal injuries.
Charged in Three Cases.
Reeves, taken to a hospital, was
charged in three murder and assault
to murder cases. S. P. Brown, colored,
said to have been riding in the rumble
seat of the coupe, and H. J. Freeman,
white union dock worker, surrendered
to authorities and were placed under
similar charges.
The killings marked the most serious
of a series of outbreaks since trouble
started weeks ago between ship oper
ators and dock hands at all Texas
Gulf ports and Lake Charles, La.
All but three ship operators came
to terms with the union men after a
prolonged strike. The continued use of
independents by three coastwise oper
ators has been the cause of sporadic
disturbances.
TWO PRISONERS BURN
TO DEATH IN JAIL FIRE
Alabamans Held on Charge of
Drunkenness Trapped in
Cell by Flames.
By the Associated Press.
COURTLAND. Ala.. July 16—Two
white prisoners burned to death here
yesterday in a tire which destroyed
the town jail.
The two. Ruel Ferguson. 35 and
Emmett Burrs. 19. were farmers of
the Courtlana community and had
been jailed Saturday afternoon on
charges of drunkenness.
Police Chief J R. Godsey and
Patrolman Tom Terry discovered the
blaze and attempted to release the
two fiom their blazing cell, but after
, they unlocked the outer door a mass
of flames drove them back
19 SAN FRANCISCO RESTAURANTS
REPLACE 2.000 IN FOOD CRISIS
B> the Associated Press.
SAN FRANCISCO. July 16— Nine
teen restaurants were designated to
day by tile General Strike Committee
tc teed the thousands who daily de
pend upon San Franciscos 2,000 eat
ing places lor food.
The city's famed cuisine took it on
the chin. The 19 places selected are
not those of which residents boast
and tourists dream Naturally union
labor status was given first consider
ation—location and seating capacity
next
Dairy lunch rooms accounted for
about hall of the 19 Not one of San
Francisco ? highly-praised foreign res
taurants was on the list The seeket
for French. Spanish. Italian. Russian.
Armenian. Chinese. Greek. Japanese
to *
or other foreign dinners, it appeared,
would have to wait until the strike is
over.
The restaurant diners were not the
only S&n Franciscans on rations
Consider this:
Groceries with any stocks remain
ing at all—after the "panic” buying
of the last half ol last week—allowed
only five pounds of sugar. 10 pounds
of flour, one dozen eggs and one
pound of butter to a customer
For the city as a whole, the Strike
Committee prepared today to establish
depots were fresh provisions—but nc
meat—might be purchased by the
public They disclosed no details
There was no interruption in milk
and bread deliveries under orders ol
the cammitleai
*
Senator Goes
to Portland
Today.
.WATCHES
.ABOR CRISIS
Army and Navy Are
•f J
Ready to Act on
J
Short Notice.
By the Associated Press
While no requests for Federal as
| sistance have been received, official
j Washington scanned carefully all re
! ports from the San Francisco strike
area today, and Army, Navy and re
] lief agencies evidenced a readiness to
act if the emergency demanded it.
In an effort to strike at the core
! of the dispute in another sector, the
White House announced that Senator
Wagner of New York was leaving New
York City this afternoon for Port
land. Oreg.. to act as a mediator in
the longshoremen's strike In that area.
Senator Wagner, chairman of the
old National Labor Board, was under
stood to be going to Portland at the
request of the President's new Labor
Relations Board.
No Requests Yet.
War and Navy Department officiate
and the White House said no requests
for Federal aid had arrived here, but
they were watching every develop
ment.
The Federal Emergency Relief Ad
ministration indicated it was ready to
cope with any situation demanding its
attention.
“Our position is that we are not
mediators in any labor dispute, but we
do not intend to see women and chil
dren penalized,” said one authority.
"If they are hungry, we will feed
them.”
No special plans have been made
for carrying out an enlarged relief
program in the bay area.
The California reUef machinery has
been functioning for months Just as
it has been In other States and relief
officials said it could be expanded
“very easily” to take care of any
situation it was asked to face.
The declaration of policy that no
one would be allowed to starve has
not been modified, these officials said,
ana would apply in the prospective
emergency in San Francisco and other
cities in the area.
Wait Official Call.
"We have not been called upon for
an enlarged program,” they added,
"and so far the relief burden has not
been magnified greatly in any area by
strikes. We are at the call of Mayor
Rossi of San Francisco and Acting
Gov. Merriam of California.”
Acting Secretary of War Woodring
said the War Department had received
no request from Acting Gov. Merriam
of California to send troops into the
| strike area, and that the department
i had no plans to order any troops there.
War Department officiate indicated
if a request for aid did come from
Merriam it would be transmitted im
mediately to President Roosevelt for
instructions.
Maj. Gen Malin Craig commander
of the 9th Corps Area, at San Fran
cisco. has transmitted no reports to
the War Department indicating Fed
eral forces were needed.
Has 13,117 Men.
Gen. Craig has 13,117 men under
his command, including more than
800 stationed at the Presidio in San
j Francisco.
Federal troops could be used, it is
understood, to afford emergency pro
tection in the event ot urgent neces
sity. Gen. Craig, if forced to do so,
has authority to issue emergency or
ders. Authorization for use of troops,
aside from urgent necessity, however,
would be necessary from the War De
partment. with approval of the Presi
! dent.
It was learned that Gen. Craig and
Rear Admiral Thomas J. Serm, com
mandant o! the 12th Naval District,
and Rear Admiral Yancey Williams,
commandant at the Mare Island
Navy Yard, are keeping in close touch
with the constantly changing situa
tion
The Army has its own docks at the
Presidio. The Navy has only three de
stroyers in the area at present and
| they are assigned to reserve or other
I duty. No change has been made in
their order. The Navy has a large
food store at its Mare Island ware
house. while the Army has stores at
(Continued on Page 4, Column 5.)
— ■ • ■ — -—• "
ROOSEVELT TO STOP
AT PACIFIC ISLAND
Fishing Attracts President. Rest
ing Aboard Cruiser Zn
Route to Hawaii.
ABOARD THE U. S. S. NEW OR
LEANS. ACCOMPANYING PRESI
DENT ROOSEVELT, July 16 UP).—
President Roosevelt rested today as
the cruiser Houston carried him
toward Hawaii and more fishing.
The vessel, on Mr. Roosevelt's
! orders, headed for Clipperton island,
a small Pacific spot, where fishing is
reported to be splendid. Present plans
are to anchor off the island Tuesday
afternoon
Mr. Roosevelt and his sons. Frank
lin. jr . and John, attended a religious
service conducted on the deck of the
Houston yesterday by Chaplain Sauls
i bury.
4
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GAM& 1
BAQ. A
,A
TOKIO NAVY HEADS
PLOT '35 DEMANDS
Cabinet Only Lukewarm to
Treaty Abrogation and
Parity Proposals.
By the Associated Press.
TOKIO, July 16.—Confronted by
the government’s admitted indecision
concerning Japan's program at the
1935 Naval Conference, 15 of the
navy’s highest officers held an official
but secret conference here today.
The officers gathered from navy
bases and fleets throughout the em
pire.
After a four-hour meeting partic
ipants declined to disclose proceed
ings, but vernacular newspapers with
a unanimity indicating official in
spiration said the conference agreed
on fundamental policies the navy will
demand the government follow In
naval negotiations with other coun
tries.
These policies were stated vaguely
by the newspapers, which avoided
specific mention of tonnage parity
and abrogation of existing treaties.
But they discussed drastic revision
of the existing 5—5—3 ratio or aban
donment of the present scheme of
limitation and asserted Japan’s right
to be considered an equal to other
naval powers.
Prince Fushimi Presides.
Imperial Prince Admiral Hiroyasu
Fushimi. chief of the navy’s general
staff, presided at the meeting.
Others present included Admiral
Mineo Osumi. ministry of the navy;
members of the Supreme War Coun
cil, commanders of fleets and naval
bases and ranking admirals of the
general staff of the naval office.
Navy men have actively pressed
upon the government demands for a
firm stand at the 1935 conference and
reportedly were dissatisfied with the
appointment of Admiral Keisuki
Okada as premier recently because he
is considered a moderate.
According to the vernacular news
papers, Foreign Minister Koki Hirota
is most unwilling to agree to the
navy representatives’ desires.
Cabinet Is Lukewarm.
The new cabfnet’s big five—the pre
mier and the ministers of the navy, of
war. of finance, and foreign affairs—
are considered lukewarm toward such
drastic demands as the abrogation of
the Washington naval treaty at the
end of 1934 and to unqualified insist
ence on parity with the United States
and Great Britain.
The newspaper Asahi stated that
five basic points were agreed upon at
today’s conference. These were said
to be:
1. Abandonment of the ratio meth
od of armaments limitation.
2. Restoration of the rights of au
tonomy in national defense.
_3. The extrication of Japan from
(Continued on Page 2, Column 6.)
MACHADOESCAPES
TO ISLAND REFUGE
Former Cuban Head Flees to Do
minican Bepublic in
Small Boat.
By the Associated Press
NEW YORK. July 16-Oerardo
Machado, whom Cuba seeks to ex
tradite to face trial for crimes he al
legedly committed while he was the
republic's president, has made good
his escape to the Dominican Republic.
Authoritative Cuban sources today
definitely confirmed persistent rumors
that the former executive, who had
been sought intensively here by Fed
eral officers, had left the United
States.
A tiny boat, these sources said,
carried Machado and several friends
to his new sanctuary in the Carib
oean. The crossing was very rough,
so much so that several members of
the party suffered seasickness
How Machado himself withstood the
passage was not learned.
The boat carrying the exiled Cuban
President left an unnamed port on
the Northern Atlantic about 15 days
ago. it was said, and since has re
, turned to these shores.
*
Wall Streeters Fly
To Work in New
Commutation Plane
By the Associated Press.
NEW YORK, July 16 —A group
of Wall Streeters flew to work
today, inaugurating what la ex
pected to be a regular Summer
commutation service.
Carrying six passengers, a large
seaplane flew from Oyster Bay.
on Long Island, to the foot of
Wall and South streets In 19
minutes.
One of the commuters, C. G
Cleveland, for whom no train
has ever backed up, arrived Just
after the take-off. He signaled
the plane. It returned and
picked him up.
_____
k -
President Acts in Line With
Policy to Obtain Cheaper
Electricity.
By the Associated Press.
A special committee will shape a
national power policy in line with
President Roosevelt s vision of cheaper
electricity for farm, factory and fire
side.
The committee, headed by Secretary
Ickes and including several Govern
ment officials, was named yesterday
by the President in a radio message
from the Pacific.
Mr. Roosevelt said his idea was this:
“I wish to establish in the Public
Works Administration a committee to
be called the ‘National Power Policy
Committee.' Its duty will be to de
velop a plan for the closer co-opera
tion of the several factors in our elec
trical power supply—both public and
private—whereby national policy in
power matters* may be unified and
electricity be made broadly available
at cheaper rates to industry, to do
mestic, and particularly to agricul
tural consumers.”
Other Members.
Besides Ickes, other members of the
committee will be Dr. Elwood Mead of
the Bureau of Reclamation. Prank R
McNinch of the Power Commission;
Norris L. Cooke of the Mississippi
Valley Committee of Public Works:
Maj. Gen. Edward M. Markham, chief
of Army Engineers; Robert E. Healy
of the Stock Exchange Commission;
David E. Lilienthal of the Tennessee
Valley Authority, and T. W. Norcross,
assistant forester.
The committee will be charged di
rectly with preparing legislation for
the next Congress better to regulate
the flow of electrical energy In inter
state commerce.
The President interrupted his vaca
tion cruise to take this latest step to
ward achieving his long-sought goal
of cheaper power.
Long before he assumed the presi
dency, Mr. Roosevelt had outlined his
desire of lighting homes, operating
factories, easing the burdens of the
housewife and bringing modem con
veniences to the farm with low-cost
power.
On his return from Hawaii he will
visit two gigantic power plants being
constructed with public works funds.
These are the Bonneville Dam in
(Continued on-Page 2, Column 5.)
OF BUREAUS HIT
Bar Committee Urges Ad
ministrative Court to
Pass on Enforcement.
By the Associated Press.
A committee of the American Bar
Association says the judiciary is being
undermined by a "maze of conflict
ing and overlapping” administrative
agencies.
The committee urged yesterday
that the judicial functions of the
agencies be disassociated from tne
legislative and executive powers and
reposed in an administrative court.
The N. R. A. was mentioned spe
cifically as an example. The com
mittee observed that the Recovery
Administration "seems clearly limited
to the exercise ol legislative func
tions (having to do with the approval
of codes and matters incidental
thereto) although both it and cer
tain other agencies created by the
President under the same act are
actually exercising Judicial functions
• • • hearing and deciding alleged
violations of codes.”
Among the other administrative
agencies referred to were the Inter
state Commerce Commission, tne
Agricultural Adjustment Administra
tion and the Federal Trade Commis
sion.
Doubts Wisdom.
The committee, in criticizing what
it called the "maze of confllctmg and
overlapping agencies” set up by tne
administration, stated it doubted the
wisdom of authorizing the President
to create and discontinue at will ad
ministrative agencies to delegate
powers handed nlm by Congress.
Pointing out that Mr. Roosevelt by
executive order had set up 13 agencies
and 4 corporations, the committee
recommended that so-called inde
pendent commissions be abolished and
theii legislative and executive func
tions transferred to some executive
department of the Government. It
suggested that no new independent
commissions be created.
On the matter of establishing an
"administrative court,” the committee
urged that if It did not prove feasible
the judicial functions of these agen
cies be placed in an "appropriate”
number of Independent tribunals
modeled after the Board of Tax Ap
peals. It added:
Violates Fundamentals.
"When judicial power is combined
with executive or legislative power, a
maxim fundamental to the adminis
tration of Justice is disregarded, that
a man should not be permitted to ad
judge his own case.
“When an administrative tribunal
is charged with investigation of al
leged violations of the law or of its
own regulations, and with the prep
aration and conduct (through its own
attorneys) of the very proceedings on
which it sits in judgment and (again
through its own attorneys) with the
defense of its own decisions on ap
peal, it is doing exactly what the ex
perience of ages has demonstrated to
be unwise, and. Indeed, unworkable.”
The committee in its study also
found that appointments to adminis
trative agencies were too generally
classed as patronage and ("it is to be
feared the decisions of some of them
(Continued on Page 2, Column 1.)
D. C. HEAT WAVE PROVES FATAL
TO LAST OF PRESIDENT’S DOGS
Winks, the last of President Roose
velt’s pet dogs, is dead.
The year-old Llewellyn setter that
never missed a morning at the Presi
dent’s bedside, where he would lick
his master's hand affectionately and
received a pat on the head in return,
died yesterday in a freak accident
attributed to the intense heat.
Marvin McIntyre, secretary to the
President, told newspapermen this
morning he had radioed news of the
tragedy to the President on his Pa
cific cruise, after withholding the dis
patch as long as possible because of
its nature.
Winks was racing around the Whfti
House grounds yesterday afternoon,
with Pal, a bull terrier belonging t*
•
Gus Gennerich. the Chief Executive’s
personal bodyguard, when he became
dazed from overexertion in the blaz
ing heat. He staggered headlong into
an iron fence and collapsed. A short
time later he was dead, veterinarians
said from brain concussion
The pup was only a few months old
when he was presented to President
Roosevelt at Warm Springs, Ga, last
Pali When the little setter had ma
tured somewhat, he was Drought to
the White House to replace Major, the
1 German police dog which began the
administration with his master, but
was banished because of a penchant
for biting guests and attaches Mag
gie. a Scottie belonging to Mrs Roose
velt. likewise was sent away for the
same reason.
a
NEGLIGENCE LAID
TO SAVINGS BANK
DIRECTORS IN SUIT
Park Receiver Says Stunz
Dominated Institution With
Board in Ignorance.
SEEKING TO RECOVER
MONEY FOR DEPOSITORS
Failure to Require Proper Col
lateral or "Even to Attend
Meeting!" Charged.
Bank directors who allegedly per
mitted their Institution to be domi
nated by one man by (ailing to at
tend to their duties, were severely
criticized today In a suit by the re
ceiver of the Park Savings Bank to
recover $2,595,989 from 28 director! of
that bank.
The petition, filed by John F. Moran,
receiver, charges the bank incurred
losses aggregating the amount sought
as a direct result of negligence by the
directors In permitting Robert 8.
Stunz, executive vice president, to
dominate the affairs of the bank.
Stunz committed suicide In March,
1933. when the bank failed to re
ceive a license to reopen at the end
of the President's bank holiday.
Some of the allegations against _the
directors are that they failed actively
to supervise the officers and employes
of the bank; that they failed to ascer
tain from records how the bank was
being conducted, relying laitead on
Information supplied at directors'
meetings by an officer of the bank
who was also a director; that they
failed to Inquire into the official con
duct of Stunz; that there was no
regular audit of the bank’s books;
that the bank had no proper snd
efficient bookkeeping system; that
Stuns was negligently allowed to
"wantonly misappropriate. waste,
squander and dissipate funds of the
bank”: that the directors knew or
should have known Benedict M Me
i Neill, an assistant cashier, had de
| faulted in the sum of $144,000, and
that they failed to examine into the
defalcation, or make proper claim
against the bonding company for
losses sustained through his acts.
“Improper Collateral.1*
It was also alleged that the directors
failed to require proper collateral for
loans
Another section of the petition
j stated:
"As an added charge of negligence
I against the defendant. George W.
White, plaintiff alleges that for a
period of more than five years prior to
the suspension of the bank—that Is
to say. from January 1,1927, to March
S. 1933. the said defendant director.
George W. White, failed and neglected
to attend each and every or any meet
ing of the board of directors of the
i bank.”
Mr. White is one of the 28 directors
named in the suit.
In an Itemized statement of losses
the petition charged the bank lost
$112,000 by thefts by Stunz of cus
tomers’ notes left for collection and
wrongfully sold by him to other cus
tomers of the bank. In each case,
it was said, the customer now has a
claim against the bank for the full
' value of the stolen securities.
Irregular Credit Charged.
An additional loss of $152,205.21 was
Incurred, according to the suit,
through the wrongful advancing of
money by the bank and the giving
of Irregular credit to the accounts of
and on the notes for and on behalf
of Benedict McNeill. Alexander Mc
i Neill and John McNeil and a bad loan
and Irregular credit in the sum of
$7,853.34 on a note executed by Fanny
Cunningham.
Another charge Is that the bank lost
nearly $200,000 through the paying of
interest on depositors’ accounts, al
though at the time the bank had no
earnings with which to pay this in
terest.
It is charged Stunz was allowed to
conceal the true condition of the bank
through fictitious entries in the gen
eral ledger. It Is also asserted the
bank lost $50,000 through the pay
ment of dividends to stockholders
when it did not have sufficient funds
to warrent such payment.
Finally, it is charged, a loss of
$1,596,976 60 “was occasioned through
the irregular transactions of Stunz,
to whom the directors gave complete
charge of the bank without supervi
sion. Investigation or audit to check
the true condition of the bank."
It was pointed out that an audit ol
the bank's books disclosed that the
actual liability of the bank to deposi
tors was more than twice that shown
I by the general ledger.
Liability Sought.
The court is a*ked to hold the di
rectors liable on the theory that they
were and are trustees for those en
titled to participate In the benefits of
this suit and of such recovery as may
be had. The liability of the defendant
directors, it was alleged, constitutes a
trust fund for their benefit. The di
rectors are:
Frank E. Altemus. Wade H. Atkin
son, Charles W Bolglano. L. T. Breu
nlnger. Joseph W. Cox, H. P. Dttmer,
Peter M. Dorsch, Q. W Forsberg. John
O. Gheen. E. T. Goodman. Charles E
Gross, John H. Holmead, A. F. Jorw.
E. S. Kennedy, Nathaniel Mountfor%
C. M. Murray, Claude W. Owen, Rob
ert L. W. Owens, Norman W. Oyster,
Henry A. Polkinhom, George A. Pre
vost, Maurice Schloaberg, Warren W.
Spencer. William B. Todd, William M.
Wailes, George E, Walker, C. C. Wlnc
bergei and Mr White.
The suit was filed through Attor
neys J. Bruce Kremer, George B.
Sprlngstcn and Herbert M. Bingham.
Flight Date Uncertain.
RAPID CITY. 8. Dak , July 16 (it*).—
With the weather map unfavorable,
stratosphere flight workers marked
time here todajr. _ _ . . -
*