Evening star. [volume], October 25, 1934, Page A-2, Image 2

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

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U. S. Ending Aid to Munici
palities to Compete With
Private Companies.
BY DAVID LAWRENCE.
Evidence is accumulating that the
Roosevelt administration ie gradually
changing Its policy toward privately
owned public utilities.
Instead of using public funds indis
criminately to aid municipalities to
compete with private companies, thus
forcing the latter out of business, the
Federal Government now has laid
down th* rule that if local rates are
reduced by existing companies, there
will be no Federal money granted for
municipal construction of plants to
compete with them.
Private Company Harmed.
Hitherto, private companies have
bwn faced with the prospect that
municipal plants, immune from Fed
eral and State taxation, would otter
low rat»s which could not possibly be
maintained for any length of time and
yet the private company would have
been, in the meantime, forced out of
the field.
It begins to look now as if the Fed
eral Government will examine care
fully into rates and conflicting claims
of low-cost operation when a muni
cipal project seeks Federal aid in com
petition with a private company.
Already, in a number of instances,
the Public Works Administration has
rescinded its approval of loans it in
tended to grant to municipalities.
Notable amonfc these is the revoca
tion of an allotment of $4.000,000 on
the Verde power development in Ari
zona and a recommendation that the
Citv of Columbus. Ohio, withdraw its
application for funds to finance a
power plant. The reason given in the
one case was that the investment
couldn't he liquidated in the time spe
cified and in the other that the Colum
bus Railway, Power & Light Co. had
agreed to reduce its rates.
"We make it a practice." says Ad
ministrator Ickes "before approving a
loan, to give the company an oppor
tunity to put into effect rates at least
as low -js thaw at which the muni
cipal system will be self-liquidating.
Several utility companies have ac
cepted th" opportunity.
A ,antage«u* to City.
"It is obvious that, in such ca-ses.
It is advantageous to the city and the
Ρ W V that the offer be accepted
and the applications withdrawn. To
make loans and grants to finance proj
ects where the competitor offers rates
which are lower than those possible
bv the city plant would duplicate fa
cilities without any social betterment
and impose on the city a burden which
it probably could not meet without
resort to taxation. Furthermore, the
public works will be free to use ite
funds to better advantage elsewhere."
The P. W. A. will not retire from a
•situation unless there is legal assur
ance of permanence of rates on the
new basis, but this involves the ques
tion of what the State utility com
missions may have to say about such
commitments.
But the whole problem of whether
the Federal Government shall con
tinue to subsidize local power plants
or to stimulate their competition with
the private companies depends on how
costs are figured. It is apparent that.
Instead of taking any figures that are
offered. Independent investigations will
be held and, if necessary, public hear
ings
All thU is a different approach from
that which prevailed several months
ago under the New Deal. It does not
mean that the administration has
abandoned its policy of stimulating
local competition, but that the policy
will not be pursued as brusquely as In
the past and that due regard will be
given to actual coets.
Cause Found in Wire.
Just what has caused the adminis
tration to recede somewhat from its
earlier view has not been explained,
but it is hardly any sudden interest
in the power companies or their in
vestors. Rather is the reason to be
found in a telegram, such as was re
ceived by Administrator Ickes from
George J. Leahy of the National Job
Saving and Investment Protection Bu
reau for the Coal Industry, which
reads as follows:
"The coal industry of the country.
mine workers and mine owners alike,
heartily approve your action In re
voking allotment of four million dol
lars to Verde irrigation and power
project of Arizona, ultimate cost of
which was estimated at $19.000.000.
but actually determined by your board
of review to be i29.000.000. This is
the first ray of hope that our industry
has had that there might be a let-up
in the hydro-electric program that
threatens us with the loss of millions
of tons from our coal markets and
thousands of additional idle miners.
Can you not consistently take the
same action in regard to Loup River
project in Nebraska, Casper-Alcova
project in Wyoming, and others
equally unjustified by economic facts?" I
There is every reason to believe the
coal industry and the miners of the
country have made their protest felt.
'Copyrieht. I»:t4 )
WOMEN'S PEACE LEAGUE
TO SUPPORT MRS. O'DAY
Organization Favors House Can
didate for Whom Mrs. Roose
velt Will Stump.
The Women's International League
for Peace and Freedom will throw its
nupport behind the House candidacy
of Mrs. Daniel O'Day of New York,
for whom Mrs. Franklin D. Roosevelt
has decided to take the stump.
The action, taken by the league's
national board, marks the first time in
the organization's history that it has
openly supported a candidate for
Office.
The announcement said Mrs. O'Day,
a member of the league, had taken an
"absolute stand for peace" and that
because "of her high ideals and her
great ability," the league would con
duct a "whirlwind campaign" in her
behalf.
'■ ·
CULPEPER PETITION
ASKS LIQUOR BALLOT
By the Associated Press.
CULPEPER. Va., October 25.—A
petition requesting an election in
January on the question of whether
m le of alcoholic beverages shall be
permitted in Culpeper was presented
to Judge Alexander T. Browning of
Culpeper County Circuit Court yes
terday.
There were 201 names on the paper
and its sponsors estimated that 185
signatures of qualified voters was
sufficient to cause the election for
the town to be ordered. Judge
Browning appointed two local attor
neys. £. E. Johnson and Burnett Mil
ler. Jr., to examine the signatures.
The petition requests a vote on the
Issuing of wine and beer licensee, as
well as on operation of State liquor
stores.
! I What's What
Behind News
In Capital
Graceful Way Out of
Sinclair Muddle Is
Sought by Party.
ι ·
BY PAUL MALLON.
THERE has been some whisper
ing and planning about clear
ing up the White House stand
ing of that Democratic step
child. Upton Sinclair, before
California goes to the polls.
The whispering is among those who
are high enough in the administration
to plan its business.
They believe en erroneous publie
impression u<at created by Presi
dent Roosevelt's Ant meeting with
the Ε. P. I. C. Californian. They
will even tell you off the record Mr.
Roosevelt himself is restless about it.
The President's plan was to see Sin
clair briefly at Hyde Parle in the pres
ence of two or three other persons.
However, he was so charmed by the
fluent Sinclair that the conference
lasted an hour and a quarter, and
later word came out that the meeting
was "wonderful." The natural deduc
tion was that Mr. Roosevelt wanted
Mr. Sinclair elected. That Impression
was strengthened by the way Messrs.
Parley, Hopkins, et al. took the new
comer into the fold.
View Difficult to Change.
It would be exceedingly difficult for
tne wnite House now to change that
idea, because Mr. Roosevelt must
maintain the historic pose of taking
no hand in local election contests.
But don't be surprised if some deli
cate means is found of correcting the
misimpression. For instance, if Mr.
Roosevelt should be asked whether he
Intended to take part in the California
situation, he could answer no. Then,
if asked whether he would vote for
Gov. Lehman, he could answer yes.
That might do the job.
Or it might be enough for Senator
McAdoo or George Creel to say he
is going Ashing on election day In
California. (Mr. Creel has been act
ing suspiciously, as if he intended
to come out against Mr. Sinclair
openly J
At any rate, keep your eyes open
for something along this line.
Incidentally, the chiefs of the
Democratic command are not very
much Impressed with the caliber of
men they expect to get out of the
coming election.
This does not refer to the large
proportion of Democratic congres
sional candidates, but to a feiv wild
and woolly ones who are hell
raisers of no particular experience
or standing.
Few Real Statesmen,
A head man of Democracy recently
returned from looking them over out
in the country and confided to a
friend:
"There aren't manv statesmen in
the lot and they are goine to be
harder to handle than a flock of
wild men."
The Democrats at O. H. Q. heard
only a few days ago that they had
an excellent chance to accomplish
the impossible by defeating Repub
lican Senator Austin in Vermont,
where even the rocks have always
been considered Republicans.
As a result, there has been some
cagey strategy developed and some
money raised.
The money is being used to cir
culate through Vermont an 11-page
booklet, entitled: "What Austin Has
Done for Vermont." The 10 suc
ceeding pages, of course, are va
cant. Not a single word adorns
them.
It « not a new campaign trick.
Some New Dealer was reading his
tory and found it had first been done
in Andrew Jackson's time, or there
abouts.
Harriman Was Right.
Investigation shows that President
Harriman of the Chamber of Com
merce was right the other day when
he said he saw not a single newsman
after his conference with Mr. Roose
velt. That may help to clear up
some of the misunderstanding with
the White House.
Another recent error was the
prophecy that MacFadden's new po
litical magazine would be out around
the first of the year It came out
the very day the prophecy was pub
lished. which shows faster action than
mMt columnar nrwltptinnit
Errors usually run In threes, but
the third one has not yet developed.
The Russians and Germans ure
having a little private verbal war of
their own over who killed King Alex
ander. Each is trying to blame the
other.
Isvestia recently carried a lead
article toying the Nazis had a hand
in it. Berlin was infuriated, and
Goer'ng, premier of Prussia, hinted
there was reason to think the So·
viets man have been implicated.
Now the Moecow press has gone on
the rampage. Says Pravda. "The
German Fascists specialize in state
ments that astonish the wofld. Their
flights of fancy surpass those of the
celebrated Baron Munchausen."
President Roosevelt's new pet stat
istician these days is Dr. Willard
Thorpe, recently Installed in N. R. A.'* J
research and planning division. He
is the brain truster refused confirma
tion by the .Senate as head of the
Bureau of Foreign and Domestic Com
merce.
F. T. C. probers are now writing a
Ave-volume report covering their six
year inquiry into all phases of the
utility interests. It will go to Congress
in January with recommendations for
legislation.
(Copjrritht. 1Η.Ί4.)
WOMAN, 55, ENDS LIFE
Mrs. Julia T. Wise Dies of Gas
Poisoning in Home.
Mrs. Julia T. Wise. 55. committed
suicide with illuminating gas late yes
terday in her home in the 1000 block
of Evarts street northeast. She was
round in the gas-filled kitchen by her
husband, Charles S. Wise, when he
returned home shortly before 5 p.m.
Despondency, due to ill health, was
Jlamed for the act. Mrs. Wise left a
note telling of her Intention to take
1er life. A suicide certificate was is
sued by Coroner A. Magruder Mac
Donald.
*
FM I. SPRAGUE,
EDISON AIDE. DIES
Week's Illness Fatal to One
of Foremost Figures
in Engineering.
Br the Associated Press.
NEW YORK, October 25.—Frank J.
Spargue, engineer and inventor, who
for a time was assistant to Thomas
A. Edison, died of pneumonia today
at his home, 40 Went Fifty-fifth street.
He was 77 years old.
He had been ill only a week.
Mr. Sprague was a pioneer in rail
way electrification and equipped the
first modem trolley railway in the
United States at Richmond, Va., in
1887. For years he was engaged in
promoting underground rapid transit.
Born in Mllford. Conn.. July 25.
1857, he was graduated from the
United States Naval Academy In 1878.
He received degrees from Stevens In
stitute and Columbia' University.
Made Study for Navy.
After his graduation from the Naval
Academy, he was a member of a jury
at the Crystal Palace Exposition in
London. England, where he had charge
of tests of dynamo-electric machines,
gas engines and electric lights, as re
ported to the Navy Department. He
-ontlnued his electrical studies and ex
periments at Stevens Institute, the
Brooklyn Navy Yard and the United
States Torpedo Boat Station at New
port, R. I.
In 1883 Mr Sprague re-signed from
the Navy to devote his time to elec
trical work, and it was at this time
that he became an assistant to Edison.
He founded the Sprague Electric
Railway Si Motor Co. In 1884. and this
company, using his constant speed
electric motor, was the first to engage
in the general manufacture and intro
duction of industrial electric motors.
Among his inventions was a pilot con
trol of industrial and other motors.
Work Known Abroad.
After equipping the trolley railway
at Richmond, he equipped similar
railways in Florence. Italy; Halle. Ger
many, and more than 100 other rail
ways in two years.
He developed an alternating current
induction smelting furnace, and also
high speed and house automatic elec
tric elevators. He invented a method
of operating two elevators on the same
rails in a common shaft, and accel
eration control of car safeties.
Mr. Sprague also invented the mul
tiple-unit system of train control,
which is now in general use. and a
system of regeneration used on moun
tain electric railways and on high
speed electric elevators. Another of
his inventions was a system of auto
matic signal and brake train control
to enforce obedience to signals. Dur
ing the World War he was engaged
in the development of fuses and air
and depth bombe.
Headed Engineer Group.
He was a past president of the
American Institute of Electrical Engi
neers. and had received numerous
honors for his work. Among them
was the gold medal at the Paris Ex
position in 1889 for electric railway
development, the Elliott Cresson medal
of the Franklin Institute in 1904 for
his multi-unit system, the grand prize
for "invention and development in
electric railways" at the St. Louis Ex
position in 1904. the Edison gold medal
for "meritorious achievement in elec
trical science, engineering and art"
in 1910. and the Franklin medal in
1921 "for fundamental inventions and
achievements in electrical engineer
ing."
Surviving are his widow, the former
Harriet Chapman Jones of New Hart
ford. Conn., and four children. Robert
T. Sprague of Williamstown, Mass.;
Desmond Sprague. Stratford. Conn.;
Julian K. Sprague. Toronto, CanaJa.
and Mrs. Frances Althea Tucker. New
Canaan, Conn.
AIRPORT TRAFFIC
LIGHTS STILL STaY
Signals Erected to Guard Autoists
to Remain Unless Army
Removes Them.
If the traffic lights safeguarding
the Military road crossing at Wash
ington Airport are removed, they will
have to be torn down by the Army,
it was indicated today.
In a letter to Col. Kenyon Joyce,
commanding officer at Fort Myer. Va.,
who has jurisdiction over Military
road, Samuel Solomon, general man
ager of the airport, said that while
he lacked specific authority for erect
ing the lights, he had done so to
safeguard lives and property. He
expressed the hope the lights would
be permitted to remain and that the
Army would co-operate by requiring
drivers of military vehicles to obev
the lights as the public has done
voluntarilv
Col. Joyce refused to make any
statement on the situation. He said
no decision on the fate of the lights
has been reached and that no an
nouncement of a decision would be
made at Fort Myer.
He indicated that when a decision
is reached it will be communicated
to Solomon and that if it is to be
made public it will have to be made
public by the air|x>rt management.
"We are not going to try this case
in the press." Col. Joyce said.
In the meantime the whole question
of the future of Washington Airport
has been laid by Solomon before the
Federal Aviation Commission, with a
request that the commission recom
mend to Congress a plan for estab
lishment of a permanent, model Fed
eral airport for Washington.
KINGSFORD^SMITH
DELAYED BY WINDS
Australian Flyer Plans to Re
sume Trans-Pacific Flight With
Honolulu Hop Monday.
Br the Associated Pre*».
SUVA. Fiji Islands. October 25.—
Sir Charles Kingsford-Smith, Aus
tralian flyer, said today he would not
attempt to assume his trans-Paclflc
flight until Monday.
The flyer and his navigator. Capt.
P. G. Taylor, hoped to take off today
for Honolulu, but a strong cross-wind
made it dangerous to attempt to lift
the Lady Southern Cross with Its
heavy load of fuel.
The pair flew to Suva from Bris
bane, Australia, Sunday.
Phone Lines Underground.
Because of heavy damage by recent
storms 35 important telephone lines
In France have bacn placed under
ground·
A
Vanderbilt Child Prefers Aunt to Own Mother
GLORIA VANDEKBILT.
—A. P. Photo.
MRS. HARRY PAYNE WHITNEY.
GLORIA PREFERS
LIVING WITH MINI
Tells Justice She Had Good
Times at Mrs. Whit
ney's Home.
By the Auociited Pre*».
NEW YORK, October 25—The
Times says 10-year-old Gloria Van
derbilt doesn't want to live with her
mother. Mrs. Gloria Morgan Vander
bilt, but wants to remain with her
aunt. Mrs. Harry Payne Whitney.
That, the paper says, is what she
told Justice John F. Carew of the
Supreme Court yesterday, when the
jurist questioned her in his chambers.
Justice Carew has been presiding in
the habeas corpus proceedings brought
by Mrs. Vanderbilt to regain custody ol
Gloria. The hearing 1« being con
ducted en cernera.
The Times says the child told Jus
tice Carew she has been having a
good time since she went to live with
her aunt at Westbury. Long Island,
two years ago. Before that time she
lived with her mother, mostly in Lon
don and Paris. She told the judge
she doesn't remember much of those
years, except that she moved about
a great deal and had no one to play
with regularly except her nurse.
Since living with Mrs. Whitney she
has a number of cousins her own age
to play with and has a pony.
The Times says the child made it
plain she does not dislike her mother
but had not seen very much of her.
Mrs. Vanderbilt was expected tc
testify yesterday in the habeas corpus
proceedings, but was too overcome tc
continue. Session» will be resumed
today.
INFLATION HELD
INJURING WORTHY
Princeton Professor Say* Great
est Debtors Are Stock
holders.
By th* Atsociated Pre»».
NEW HAVEN. October 25 OP).—
The present inflationary tendency li
Injuring the country's most worth;
people. Prof. Edwin W. Kemmerer ol
Princeton, international monetary ex
pert. said last night.
In his prepared address before about
1.000 Crusaders at a mass meeting
held at Yale University. Dr. Kem
merer asserted: "By cheapening the
value of the dollar, in which all debt;
are payable. Inflation obviously tend!
to relieve the debtors at the expense
of the creditors."
The Crusaders are a non-pert Lsar
group whoee aims are to maintain s
1 sound currency and oppose measure."
of the present administration which
may be detrimental to business. Dr
Kemmerer's address sounded the
opening note of an Intensive drive
for members.
The Walker professor of Interna
tional finance at Princeton said: "The
greatest debtors in the United States
on long-time account are not the
farmers but the stockholders of our
corporations * · * and the greatest
creditors are the people who own the
bonds of the corporations.
"Inflation resulting in a heavy de
preciation of the dollar is causing
much injustice to a large proportion
of the country's most worthy people.
"The sad irony of our financing ex
travagant Government expenditures,
through the mechanism of Inflation, is
this fact that in a subtle way the
Government is financing Itself largely
out of the endowment of the Nation's
public institutions and out of the life
Insurance policies and savings of the
poor."
Dr. Kemmerer said the recent silver
legislation calling for a broadening of
our metallic money base by the pur
chase of silver will be perfectly useless
from a monetary point of view.
"With the price of sensitive com
modities already moving strongly up
ward." he said, "and with powerful
Inflationary groups both In Congress
and out. still loudly clamoring for
more and ever cheaper money and
credit, is there any wonder that busi
ness confidence continues low?"
LIQUOR STORE HELD UP
John M Davis, operator of a liquor
store at 425 Tenth street, was robbed
of $25 last nlghi by a bandit, who,
after looking at several bottles of
liquor, drew a pistol and demanded
the contents of the cash register.
Davis handed the man the money
and the robber ran from toe store.
♦
Mussolini Orders Dignitaries
j Τ ο Military Duty at Exposition !
By the Associated Press
I ROME, October 25.—Premier Mus
solini took another step today to let
his cabinet ministers and other high
officials know their jobs do not con
sist in simply wielding pens.
Members of the government and the
Grand Council of Fascism were or
dered to do guard duty at the National
Fascist Exposition Sunday, just be
fore its close after two years of
existence.
The guards will march to the ex
position building la uniform and
Uand holding a rifle, with bayonet at
tached. at the portals until their
trick is over
Marquis Gughelmo Marconi, In
ventor of the wireless; Gen. Iialo
Balbo. now Governor of Libya, and
i
I other high dignitaries form pert of the
Grand Council, but the order» did not
reveal whether the entire membership
would be railed out.
The announcement that "the |ov
ernment" will furnish some of the
guards leaves the way open for Mus
solini himself to do a short trick, ι In
addition to being premier, he is min
ister of foreign affaire, the interior, j
corporation», war, marine and avia- !
tion.)
During war maneuvers in August
Mussolini advised his ministers to j
put on uniforms «nd join the troops.
Provincial prefects stood guard at
the exposition a few days ago and
the Governor of Rome was to be a
sentinel today. Nearly 4.000,000 per
sons have witnessed the exposition.
IMPASSE REACHED
: IN GAME W
Threat of 5-Cent Price Cut,
However, Made by Inde
pendents.
Washington's current gasoline price
war reached a stalemate today when
bi'h the major companies and the
independent dealers awaited the
other1» quotations before announcing
their own. with the result that r.o
reduction was made by either group
when business opened this moraine
The threat of a substantial cut.
however, continued as leaders among
the so-called independents attempted
to obtain united action In a cut that
would severely hit their competitors.
A spokesman for the independents
1 said that if a sufficient number of
dealers enter the agreement a cu of
5 cents or more would be posted tome
time today.
The Independents contend the
larger companies are trying to de
stroy the 1 cent diflerentiai they have
; enjoyed below the price charged for
the widely advertised brands. The
chain organizations, on the other
hand, declare the reductions are dic
tated by a surplus of gasoline.
Standard Oil retained its price of
12'·? cents and led the way for the
larger distributors. One officiai of the
company here said he had expected a
reduction this morning, but prices are
dictated from the New York office.
The Independents were selling for
11 Vi and 11 cents and virtually all
of them insisted on at least a cent
lower quotation.
The threat of a larger reduction, if
materialised, wlil drop the retail price
to 5 or 6 cents, including the Dis
trict tax. A decision was expected
to be made early this afternoon and
it was Indicated that the number of
dealers willing to take the loas will
1 determine whether the drastic cut
I will be made.
Washington Committee on
Housing Accepts Resigna
tion—Successor Named, j
Resignation of John Ihlder &.» sec
retary of the Washington Committee
on Housing to become executive officer
of the District of Columbia Alley
Dwelling Authority, was announced
today by Clarence Phelps Dodge,
chairman of the committee.
Mr. Dodge said Ihlder's place with
the committee will be taken by Flor
ence D. Stewart, formerly secretary
of the Housing Committee of the
Washington Council of Social Agen
cies.
In announcing the change, Mr.
Dodge said:
"The Washington Committee on
Housing has just accepted with deep
regret the resignation of John Ihlder
as secretary of the committee. Mr. 1
Ihlder has left the committee to take
up his duties as executive offlcer of
the District of Columbia Alley Dwell
ing Autk»ority.
"Mr. Ihliler's experience and
achievement as a city planner and
housing worker in many cities places
him among those foremost in the
housing Held. His intimate knowledge
of Washington, especially of Its slum
areas, will be of tremendous value in
eliminating Washington's inhabited
alleys and replanning them so that
they may be converted into useful
areas."
Members of the committee include:
Mrs. Franklin D. Roosevelt, honor
ary chairman, Mr. Dodge, chairman:
Mrs. Anne Archbold. Mrs. Robert
! Woods Bliss. Rev. Robert W. Brooks.
James A. Cobb. Frederic A. Delano,
ί Mrs. C. Carroll Glover, jr.; Col. U.
S. Grant 3d; Mrs. Archibald Hopkins,
Maj. Campbell C. Johnson, Stanton
C. Peele. Rev. Anson Phelps Stokes
1 and J. Bernard Wyckofl.
Marriage Plans Hit Snag
The marriage plans of Ellen McAdoo and Rafael Lopez de Onate,
38-year-old actor, struck three snags after they had filed notice of intention
to wed on October 22 in Riverside, Calif. The county clerk «aid no license
would be issued until De Onate could prove he was a Caucasian. Her
mother announced "there are no marriage plans right now" and her
father's law partner announced that "Mr. McAdoo does not approve the
marriage." Miss McAdoo te the daughter of 8«nator William Oibbe Mc
Adoo of California and his foreer wife, the daughter ot President Woodrew
Witeon. " —A. P. Photo.
A
MRS. GLORIA MORGAN
VANDERBILT.
—A. P. Photo.
PERSIANS ARREST
U. S. DERBY FLYERS
Wright and Polando Charge
Mistreatment—Lose Out
on Prize Money.
By the Associated Preu.
BAGHDAD. Iraq. October 25.—John
H. Wright and John Polando took off
from Shaiba, Iraq, early today for
Karachi. India, after giving details of
their unhappy experience as the pris
oners of Persian authorities for more
than 24 hours.
The American flyers in the Mel
bourne Derby were forced down Tues
day.
Wright, in a telephonic conversation
with the Associated Press, said "what
causes me anxiety is that we again
have to fly over Persia Heaven knows
what will happen if we are forced to
land again.
"We had a devilish experience day
before yesterday. We were compelled
to land because of trouble with our
fuel supply The Persians were
greatly excited. Some helpful Britons
hid me away, but the Persians got
hold of my colleague Johnnie (Po
lando), who was placed under police
guard.
Refused Drink of Water.
"They wouldn't even give him a
drink of water. Later I joined him.
so we suffered together. We did our
best to point out there was no pos
sible reason for our arrest, since the
passports were visaed by the Persian
Legation in London, but they would
not listen.
"We spent a most unpleasant night.
Yesterday the Persians thought better
and released us. I believe our British
friends were chiefly responsible for our
release. We flew back to Basra t Iraq ).
where we had the best possible treat
ment.
"It makes us furious to think our
detention in Persia removed all pos
sibility of getting a good place in the
handicap race. I guess the people of
America will have something to say
about it."
BRITONS PLACE FOURTH.
Jonc· and W&Uer Reach Melbourne
As Nine Planes Trail.
MELBOURNE. October 25 (JP) —
England took fourth ax well as first
honors in the Englahd-to-Melbourne
■peed race today when Cathcart Jones
and Ken Waller landed at 2:54 p.m.
(11:54 p.m. Wednesday Eastern stand
ard time) on sun-flooded Laverton
Field.
Their English plane is a duplicate
of the one in which C. W. A. Scott
and T. Campbell Black won first
place (a De Havilland comet). Amer
ican-built planes finished second and
third.
The appearance of Jones and
Waller relieved anxiety occasioned by
a lack of news from them after they
passed over Cobar this morning.
Mar Win a Prime.
Although they took fourth place in
the starting field of 19. Jones and
Waller will not win a prize unless the
Dutch pilots. K. D. Parmentier and
J. J. Moll, who finished second, win
a handicap prize and choose it in
preference.
Nine plane* Including that of John
H. Wright and John Polando of
America, stuck to the long derby route
today in the wake of the four
finishers.
Wright and Polando. who were
arrested by Persian guards when they
landed near the Turco-Persian border,
took off today from Shaiba, near
Basra, Iraq, for Karachi, India. They
lost 24 hours and all hope of winning
handicap money.
MacGregor In Fifth Place.
In fifth poeition was Squadron
Leader Malcolm MacGregor -of New
Zealand, veteran pilot who took off
this morning from Ranibang, Lombok,
for Port Darwin. Australia. J. E.
Hewett and C. E. Kay, also of New
Zealand, left Singapore.
A close race was on between Squad
ron Leader D. E. Stodart of England
and Lieut. M. Hansen of Denmark.
Both planes left Rangoon. Burma, the
Britons about two hours ahead.
C. J. Melrose of Australia arrived
at Calcutta this morning earlier than
tie was expected.
Chemical Trade Gains.
Spain's foreign chemical trade has
been increasing for two years.
Express Busses Talked.
Glasgow. Scotland, may have ex
press bus service to its new municipal
bouses.
%
1
RAIL An FACING
HIGH COURT TEST
Appeal From Invalidity Rul
ing Here Is Certain for
Pension Law.
By the Associated Press.
An eventual te«t in the United
States Supreme Court of the New
Deal pension system (or railroad em
ployes was regarded as certain today
u a result of the action of the Dis
trict Supreme Court yesterday declar
ing the legislation unconstitutional.
Although an appeal by the Gov
ernment is regarded ω a certainly,
the decision of the District court
served to stimulate a sluggish stork
market, rail shares leading a brisk
advance yesterday with a jump from
$1 to $5.
"The act is unconstitutional be
cause it extends its provisions to per
sons not engaged in interstate com
merce," declared Justice Alfred A.
Wheat in his opinion.
Fifth Amendment Held Violated.
The American Railway Association
in its attack upon the law averted
it affected many employes who were
engaged only in Intrastate commerce
and that it violated the fifth amend
ment by taking property without due
process of law.
Passed in the closing days of Con
gress. the pension bill had much the
same legislative history as the Frazier
Lemke farm moratorium measure. Ad
ministration leaders had neither bill
upon their program, but a coalition,
which included Senator Lone. Demo
crat, of Louisiana and Senator Dill,
Democrat, of Washington, put both
measures through.
The Frazier-Lemke bill since has
been held unconstitutional by a Fed
eral court in Maryland.
Held Loosely Worded.
President Roosevelt in signing the
measure said it was "loosely worded"
and would require amendmAU next
seasion. Justice Wheat referred to it
by quoting Mr. Rooeevelt.
"The natural reluctance which a
judge feels when compelled to hold
an act of Congress unconstitutional."
he said, "is in this case somewhat
tempered by the fact that the act
seems not to be satisfactory even to
some who favor it in principle and
purpose."
The pension act. which bore the
name of Representative Crosser. Dem
ocrat, of Ohio, provided for retire
ment with pay of railway employes
who had reached the age of 65 or who
had served for 30 years. Both em
ployes and employers were required to
contribute to a fund for the pensions,
but the carriers' assessment was about
two-thirds of the sum.
154 Roads Enter Battle.
More than 150 railroads were rep
resented in the legal assault upon the
act. In addition to the challenge on
constitutional grounds, they claimed
the financial burden on the carriers
would be $60,000,000 the first year of
the law s operation, and the railroads
were in no condition to stand added
levies.
Justice Wheat also said the pension
act provided for re-employment by
the carriers of men previously In rail
road service, and that this prior ser
vice was to be counted as part of the
time which entitled them to pensions.
The evidence, he said, showed more
than 1.000.000 former employes might
be affected.
"To require the plaintiffs to eon
tribute huge sums of money to be
devoted to the payment of pensions
based upon service long since com
pleted and fully paid for," Justice
Wheat said, "seems to me to take their
property without due process of law.
I am constrained, therefore, to hold
that the act is unconstitutional."
The law was to have been admin
istered by a Railroad Retirement
Board of three persons, headed by
Murray Latimer of New York, the
Government's representative. The ef
fect of the decision was to restrain
the board from proceeding toward get
ting up the pension fund pending a
final test of the legislation.
D· C. BAS CALLS
CITIZENS' MEETING
TO WAR^ON CRIME
'Continued[ Fron, r<7st P^,
and released them all after convinc
ing themselves they could shed no
iurther light on the case.
Haien Demands Drive.
Commissioner Hazen. who sum
moned Maj. Brown to hi* office yes
terday to discuss the case, said today
he expected the Police Department to
wage a campaign of "constant ha
rassment" on large gambling houses.
Handicapped by the present laws,
which make it difficult to obtain court
convictions on gambling charges, the
police are under orders to raid as
often as possible and to follow the
gamblers from location to location.
Hazen said he is planning to confer
soon with Maj Brown. Senior Judge
Gus A. Schuldt of Police Court. Dis
trict Attorney Leslie C. Garnett and
Corporation Counsel Ε Barrett Pret
tyman regarding ways and means of
putting down gambling In the District.
Garnett today denied a published
report that representatives of his of
fice had been approached by gam
blers with an offer t<· turn In the
slayers in exchange for a let-up in the
campaign on gaming.
Funeral services for Wilson, who ta
survived by his wife and three young
children, will be held tomorrow at 8
a.m. from St. Michael's Church in
Silver Spring and burial will be In
Mount Olivet Cemetery.
POLICE SEEK STABBER
AFTER CARD ARGUMENT
Headquarters detectives today were
seeking a man who last night stabbed
Okey J. Wofter 27, a Pennsylvania
Railroad Co. employe.
Wofter. founo about 11 pm. on the
front steps of his rooming house in the
100 block of Ε street with a stab
wound in the neck, is said by police
to have refused to give any informa
tion on the stubbing, except to say
he was scabbed while passing through
the hallway in the house.
Police claim, however, that their in
vestigation disclosed Wofter had been
stabbed by a man with whom he had
an argument after playing cards at the
Ε stree address. The argument is
said to have begun over a small sum
of money Wofter was treated at
Casualty Hospital.
Bingo F.-T. Party Planned. '
LANDOVER. Md October 25 «Spe
cial).—The Parent-Teacher Associa
tion of the Landover School will hold
a bingo party tomorrow night.