Evening star. [volume], September 04, 1935, Page A-2, Image 2

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

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Observers See Opening of
Way for Stabilization Talks
While Abroad.
By the Associated Press.
Secretary Morgenthau is trying to
arrange a Fall pleasure trip to Europe,
a visit which some believed might
place him in a position to discuss
stabilizatlonal of international ex
change.
Plans are still indefinite, but as
But lined following the Treasury chief's
return from a week end conference
with President Roosevelt at Hyde
Park, N. T„ he would sail for Portu
gal with his family and spend his
time traveling In that country and in
Spain.
Observers here noted that he would
be far removed from the financial
centers of London and Paris, but they
quickly emphasized that English and
French monetary experts might possi
bly strive to seek him out and discuss
stabilization prospects.
Change Seen in Fall.
Ever since Morgenthau used the
Government’s $2,000,000,000 stabiliza
tion fund to ease a French financial
crisis in mid-June, reports have been
current that some stabilization de
velopments might be expected during
the Fall months. Whether they will
materialize while the Treasury Sec
retary is visiting in Southern Europe
remains to be seen, but, at least, ob
servers remarked, he would be in a
position to receive overtures.
Morgenthau and Secretary Hull
have both emphasized the importance
of stabilization in stimulating world
trade. At this time also, there are
recurring reports that the President
and his advisers are seeking ways to
balance the budget as soon as possible.
International stabilization would re
move the necessity for the $2,000,
000.000 stabilization fund and this
could be applied to debt retirement.
Washington to Aid.
It was last May that Morgenthau
Said that "the world should know that
when it is ready to seek foreign ex
change stabilization, Washington will
not be an obstacle.”
Observers were inclined to believe
that stabilization efforts would be
timely now. They noted that the
French franc had shown signs of
avoiding devaluation pressure, that in
ternational money markets, except for
flurries In the Belgium belga, have
been easy, and that Great Britain
might be wiiling to discuss stabiliza
tion after some forthcoming elections.
On the other hand, experts put down
war threats as offering possible obsta
cles for any immediate developments.
STADIUM USE DENIED
Constitution Day Rally Is Barred
at Chicago's Soldier Field.
CHICAGO, September 4 (4>>.—The
Chicago Park Board closed the gates
of Soldier Field yesterday to a group
of citizens seeking to use the huge
stadium for a Constitution day rally.
A statement from the commission
explained that applications of the
Constitution Day Committee Si Save
America, Inc., had been denied be
cause the Lake Front Amphitheater
‘ should not under any consideration
be used for the dissemination of
propaganda upon political and eco
nomic subjects of controversial na
ture.”
SHIRKERS DENIED AID
Oregon Jobless Rejecting Harvest
Jobs Refused Relief.
PORTLAND, Oreg., September 4 OP).
—Unemployed persons who turn down
oilers of jobs as harvest hands were
ordered stricken from the Federal
State relief roles yesterday by E. J.
Griffith, Oregon works progress ad
ministrator.
Griffith said some relief roll workers
recently have hesitated to take em
ployment as harvest hands for fear
they would not have an opportunity
to obtain employment on W. P. A.
projects.
U. S. MAY QUIT GENEVA
Closing Office of Disarmament
Unit Is Reported Considered.
GENEVA, Seutember 4 OP).—The
advisability of closing the Geneva
office of the American disarmament
delegation Is being considered, It was
learned yesterday.
No definite Instructions have been
received from Washington. The mo
tive was said to be economy and
would mean that Hugh Wilson, United
States Minister to Switzerland, and
his military attache would no longer
maintain their present Geneva quar
ters.
Irvin S. Cobb
Human Tumble Weeds
Drift Into Western
Port of Relief.
SANTA MARIA, Calif., September
4.—This is a favorite port of entry
for the unemployed, who pour in by
the thousands looking for manna in
the wilderness.
If we’re out of
manna they’ll
take sarsaparilla.
There are many
pitiable cases
among these new
comers, also
plenty of others
who want to go
on relief right
away, but shy off
from work on
some P e d e r a 1
project aa if It
were a nest of
black widows.
And these pilgrims, some oi mem,
have mightly poor manners, especially
in the mess hall. They accept Unde
Sam’s abundant free meals and then
complain of the service and want to
know why the orchestra’s not playing
and what’s become of the finger bowls.
Apparently this depression has pro
duced a species of American who
might be likened to the tumble weed
of these Western plains. The tumble
weed doesn’t amount to much one
way or the other where It grew up
and only begins to create unfavorable
comment when it starts traveling.
(Copyright. 1035. hr tM Worth American
Newspaper Alliflbe, Inc.)
What’s What
Behind News
In Capital
Old Propagandists See
Marks of Trade in
Ethiopian News.
BY PAUL MALLON.
OLD hands at the propaganda
game here believe they have
noted excellent marks of
their trade hidden in some
of the news from Europe.
The brazen Ethiopian effort to In
volve the United States by oil conces
sions did not particularly draw their
admiration. It was too obvious to be
good. What caught their fancy was
the adroitly magnifying and insinuat
ing reactions prepared for American
eyes in the capitals of Europe.
For instance, one of the best
known American journalists abroad
wrote the other day about “the
great profit” which will ensue “to
whatever nationals are inx>olved in
the deal.” meaning, of course, the
United States.
Another yam from the Ethiopian
capital called it "a $60,000,000 deal,”
meaning that the promoters were go
ing to spend that preposterous amount
of money in search of Ethiopian oil.
That kind of lure for American fish
(say the United States propagandists)
is worthy of favorable comparison with
the best bait manufactured abroad to
hook the United States into the World
War.
Suspicions of American officials were
aroused because the Commerce De
partment checked up on Ethiopian
mining prospects only about two weeks
ago. Its official report indicated that
if Haile Selassie has found any oil
prospects worth 60 cents, he has kept
them the biggest secret in the world.
Also, if there are any huge prof
its to be made, no one yet suspects
it save the King of kings and the
British promoter who offered the
suggestion.
The Commerce Department learned
that there have never before been re
ports of oil in Ethiopia and that no
real survey has ever been made of
its mineral deposits. It silhis up the
mining possibilities in one sentence:
"Little exploitation and no accu
rate data on resources: potash, gold
and platinum irregularly produced in
small quantities.”
Diplomatic “Oil.”
For these and other reasons, officials ’
here will tell you off-the-record that i
the Selassie-British promoter* appear
to be prospecting more in oil of the :
diplomatic kind than in petroleum.
They will also tell you the Securities
and Exchange Commission would not
permit sale of stock to American in
vestors unless Selassie gets up a bet
ter prospectus. Likewise, they sus
pect that the reaon the details have
been kept secret is that there are no i
details.
Whether they are right about that
or not, they advise tongue-in-the
cheek reading of European promotion
material from now on.
Rosevelt Keeps Formula.
President Roosevelt seems to be
clinging to hi* old recipe in making re
cent official appointments. If you
analyze the background of men nguned
to the two recently appointed boards 1
(social security and labor) you will
find that his formula is one part prac- I
tical, one part brain trust and a dash
of politic*.
f l^+pdr
■
On the Social Security • Board he
named: (A) an efficient gubernatorial
administrator of liberal tendencies,
(B) a brain truiter who has been
in the Government a long time, and
(C) a purely political appointee.
The personnel of the Labor Board
is being appraised on the inside as:
(A) A lawyer hitherto unknown to
the New Deal whose record places
him in the practical category, (B)
a holdover liberal of the brain trust
type, and (C) a labor mediator of
experience.
Dodges Price Rise Question.
The President was asked to com
ment the other day about the ad
vance of the commodity price level
to 80.8 per cent of the 1926 average.
He dodged the question by asking
which commodities had increased
most.
The fact is only special food
and farm prices have been increas
ing. They have drawn the gen
eral index up to the highest level
in five years. Other (Industrial)
prices have been virtually un
changed for months. On the basis
of 1926 a$ 100, the comparison be
tween the three lines now is: Farm
prices SO.7; foods S6.1; other com
modities (industrial) 77.6.
Ho one will point with pride at
that.
Portraits Removed.
Reporters filed into the office of a
cabinet officer for a press confer
ence and noticed that all the portraits
of former holders of that office had
been removed from the walls. One
inquisitive news gatherer asked why.
The reply of the cabinet officer was:
"Oh, they’re out being cleaned."
After thinking over that remark,
the cautious cabineteer decided to put
it in the off-the-record class so It
could not be published.
Over at the Justice Department,
aides collected oil portraits of former
Attorneys General and decided to
hang them in the corridor. They dis
covered that two were missing, Mr.
Hoover’s Attorney General Mitchell
and Mr. Harding’s Harry Daugherty.
They decided to seek one of Mitchell.
(Copyright. 1835.)
GUARD ASSAILANT TO DIE
Californian to Face Scaffold on
Friday for Assault.
SAN QUENTIN. Calif., September
4 OP).—Prison officials said yesterday
William Bagley, 45, habitual criminal
sentenced to death for assaulting a
guard, would be hanged Friday as
orlgnlally planned, despite injuries he
Incurred in a futile attempt to escape.
Dr. L. L Stanley, prisoa physician,
said Bagley's skull was not fif.ctured,
as first supposed, but that there was
a slight head contusgjp.
LAW JSFORECAST
Board Chairman’s Argu
ment Held Proof Court Will
Act Adversely.
BY DAVID LAWRENCE.
What J. Warren Madden, chairman
of the newly created National Labor
Relations Board, said over the radio
about the Wagner labor law has fo
cused attention once more on the
probability that the act will some day
be declared unconstitutional.
No better proof of this could be
given than the argument which Mr.
Madden has made for the board. He
said:
"The board's powers are expressly
limited to the prevention of unfair
labor practices ‘affecting commerce’
and ‘commerce’ is expressly defined
as interstate and foreign commerce.”
The Supreme Court of the United
States in the Schechter case by
unanimous opinion stated that the
mere fact that a practice Vaffects"
Interstate commerce is not sufficient.
The effect must be "direct.” And the
Supreme Court in previous cases has
held that a labor dispute or a threat
of a strike—except of railroad em
ployes—directly affects Interstate
commerce even though the employer
sells in interstate commerce goods
which have been produced by em
ployes who are parties to a labor dis
pute. This has been held to be true
even though the effect of a strike or
a threat of a strike is to reduce the
amount of goods moving in interstate
commerce.
Would Retard Bargaining.
The essence of the Wagner labor
law Is an attempt to enforce collective
bargaining as a principle of conduct
In the relations of employer and em
ploye. There is much merit in col
lective bargaining and the right of
employes to negotiate through agents
of their own choosing, but the pro
tection of this rigtvt is a matter for
the police power of the States. In
deed, everything that Mr. Madden
says about the virtues of collective
bargaining can be obtained under State
laws. The effort to concentrate on a
Federal statute for this purpose will
only delay and retard the true at
tainment of collective bargaining for
American labor.
For It Is evident from Supreme
Court decisions that there is no direct
relationship between a labor dispute,
or controversy over union or non
union membership, and the movement
of goods in interstate commerce. In
the famous Adair case the Supreme
Court passed judgment on k law which
had forbidden interstate carriers,
namely railroads, to threaten any
employe with a loss of employment
or to discriminate unjustly against
any employe because of his member
ship in a labor union. Said the
Supreme Court in 1908 in holding the
act unconstitutional:
“'Manifestly any rule prescribed for
the conduct of interstate commerce,
to be within the competency of Con
gress under its power to regulate com
merce among the States, must have
some real or substantial relation to
or connection with the commerce reg
ulated.
No Bearing Under Law.
"But what possible legal or logical
connection Is there between an em
ploye’s membership in a labor or
ganization and the carrying on of
interstate commerce? Such relation
to a labor organization cannot have,
in itself and in the eye of the law,
any bearing upon the commerce with
which the employe is connected by
his labor and his services."
The court held also that the statute
had its origin “in the apprehension,
on the part of Congress, that if it did
not show more consideration for mem
bers of labor organizations than for
wage earners who were not members
of such organizations, members of
labor organizations would, by Illegal
or violent measures. Interrupt or im
pair the freedom of commerce among
the SUtes."
The court stated that it could not
Indulge in any such conjectures “with
out imputing to Congress the purpose
to accord to one class of wage
earners privileges withheld from
another class of wage earners, en
gaged, It may be, in the same kind
of labor and serving the same em
ployer."
The last sentence applies equally
well today to the language of the
Wagner labor law, which attempts to
bind a non-union minortiy in a shop
to the wishes of union men or a union
minority to the wishes of a non-union
majority.
Misled by 1917 Decision.
Some observers have been misled by
a subsequent decision, in 1917, where
by the Supreme Court upheld an act
of Congress fixing hours of employ
ment. but here the precedent cannot
be held to apply to private industry,
because Congress had already asserted
its power to regulate the railroads
and the question of a standard eight
hour day was held to be part of the
regulatory power of Congress over
railroads.
Inasmuch as collective bargaining
is attainable under State laws and
probably will be held to be outside the
scope of Federal power, it is interest
ing to go back to the “horse-and
buggy days" of February, 1933, when
Senator Robert Wagner, author of the
new labor law, was speaking in the
United States L-nate. He had Just
contended that the question which
had troubled the American people
since the eighteenth amendment was
added to the Constitution "was not at
all concerned with liquor,” but was a
“question of government, how to re
store the constitutional balance of
power and authority in our Federal
system which had been upset by na
tional prohibition." Senator Wagner
said:
"No one single national standard
can prevail. That is the principal
lesson of our experience with the
eighteenth amendment. Federal
guarantees are futile. At the bed
rock of this entire question lies this
immovable truth: That there is noth
ing the Constitution can say, nothing
the Federal Government can do
which will successfully Impose a rule
of conduct upon a community except
by the will of the people of that com
munity."
No better argument for State laws
to regulate labor conduct could have
been made, but while Senator Wagner
and the New Dealers have reversed
themselves the Supreme Court of the
United States Is not likely to do so.
Its record on the lack of right In
herent In the Fedwal Government to
regulate employer and employe rela
tions generally, or even in a limited
Held, is plain spoken and unequivocal.
That's why Chairman Madden’s
speech may be viewed as a vulnerable
argument which can only be the fore
runner of a declaration by the courts
holding the Wagner law as having
gone beyond the Federal Constitution.
(Copyright. 1035.)
Has Million for Ethiopia
i
i
fl
'
Above: Leo Chertolc. New York broker, who says he is prepared to
exercise his option on a 50-ycar concession on oil and minerals in
Ethiopia and that the necessary J1,000,000 loan to take up the option will
be forthcoming.
Below: Reproduction of the agreement for the concession.
—A. P. Photos.
- A_
Ethiopia
(Continued From First Page.)
She has brought forth new charges
in a memorandum filed today.”
Premier Laval of France pleaded
for conciliation on the part of both
Italy and Oreat Britain, declaring:
"I am convinced the Italo-Ethioplan
dispute can be settled by the League."
Unworthineas Charged.
As the Council member* assembled,
Italy had filed a protest against
Ethiopian membership In the League.
(The Italian memorandum charged
that Ethiopia by her conduct "placed
herself openly outside the League and
rendered herself unworthy of the
confidence accorded her when she
was admitted.”)
Alois! declared that If the League's
recently adopted definition of an ag
gressor had existed previously, Italy
often in the past would have been
justified—under the League rules—in
“resorting to war against Ethiopia.”
The Italian told the representatives
of the other nations that his govern
ment had submitted a memorandum,
explaining the reason Italy believes
Ethiopia has "systematically violated
all treaty undertakings both toward
Italy and the League.”
He said that for the same reason,
Italy was unable to accept the program
presented during the conference with
Oreat Britain and France in Paris
last month.
Alolsl said that for 50 years Italy
has pursued a policy of amity and col
laboraUon with Ethiopia, but that
Ethiopia had resorted to brigandage
and violence.
Denies Equal Rights.
A nation like Ethiopia, said the
Itai'an noble, "cannot have equality of
rights or equality of duties ac com
pared to civilised nations." He claimed
that the Ethiopian attitude prejudiced
the interests of other League members.
Alolsl charged that slavery still
flourished in Ethiopia and declared:
"All solidarity with such a nation
should be refused. Italy would con
sider her dignity profoundly wounded
if she continued to discuss at the
League on a footing of equality with
Ethiopia.”
The slavery issue was emphasized
with the charge that the Ethiopian
government not only countenanced
the traffic in slaves but "directly par
ticipated in the slave trade, either
through accepting slaves In payment
of taxes or permitting regular troops
to capture them.”
The violations cnargea were:
“Ethiopian refusal to define fron
tiers with Italian colonies resulted in
the consequently illegal occupation of
Italian territories by Ethiopia.
"Continual offense against the im
munity of Italian diplomatic and con
sular representative# in Ethiopia.
Discrimination Charged.
“Permanent offense against the
lives and goods of Italian citizens
living In Ethiopia, who were pre
vented from developing economic
enterprises of any nature whatsoever.
“Offenses and attack against the
lives and goods of Italian citizen.',
even on Italian territories themselves."
The memorandum voiced the theory
that other members are not bound
to observe the rules of the covenant
"toward a member which had placed
heraelf outside the pact through Vio
lation of engagements assumed "
With reference to the borders, the
memorandum said the Ethiopian gov
ernment "upholds the constant policy
of refusal and delay, which cannot
be interpreted otherwise than as an
alibi in order to keep the door con
stantly open for ah attempts at
Ethiopian invasion Into Italian ter
ritory.”
Two Ethiopian delegate* Tecle
Hawariate and Prof, Gaston Jew,
were seate^in the Council chamber
V
as temporary members in a publie
session which followed close behind
a private meeting.
Prior to the private meeting, the
British delegation announced that
Prance was in agreement with Great
Britain as to a report on the recent
three-power conference in Paris which
failed when Italy refused a British
suggestion.
Eden Presses Psace.
Eden told the tense members of
the council: "We have all tried to
create a new international order whlcr.
win spare mankind the scourge of
war."
He reported, and announced that j
Premier Laval of France concurred I
with him in the report, that Great
Britain had drawn up a program as a
basis for discussion at Paris of the
Italo-Ethioplan situation and that
this program was rejected by the
Italian government.
He said that "we did not exclude
the possibility of territorial adjust
ments” In formulating the plan.
"War is the enemy of progress,"
said Eden, "and that is why. in the
Brland-Kellogg pact, the nations re
nounced war. World opinion is
watching us. • • •
“If the League falls to settle this
dispute, its influence will be grievously
shaken. The collapse of the League
would be a world calamity.”
RED CROSS HYGIENE
CLASSES ARRANGED
Home Care of Sick to Be Taught
at 1730 £ Street or Other
Convenient Placet.
Classes In home hygiene and care
Of the sick will be conducted from
early September through the middle
of June by the District of Columbia
Chapter of the American Red Cross,
It was announced today.
The classes will be arranged foa
morning, afternoon and evening and
will be held at 1730 E atrett, or at
other places which may be con
venient for individual groups. Each
student is to receive 24 hours of
Instruction, covering a period of 6
weeks. Time, place and length of
class meeting will be arranged to
meet the convenience of the groups,
It was announced.
The course Is arranged as a phase
of health education and Is Intended
to provide training in solving the
health problems of the home and in
the simple care of 111 members of the
family. The course is planned to
meet the requirements of such varied
classes as Americanization school
groups, mothers, leisure-time groups,
business women, Girl and Boy Scouts
and men's groups.
The chapter provides volunteers
who have taken the course and who
wish to contribute their services to
aid the medical and nursing staffs of
seven hospitals of the District. These
volunteers are known aa health aides
and are employed in social service*
recreation and similar service among
patients.
Information as to details of the
course may be obtained at the local
chapter house, 1730 E street, tele
phone National 1910. The courses
will be taught by graduate nurses
under direction of Miss Caroline X.
Thomson, instructor in home hygiene
and care of the sick of the local
chapter.
Bandits Taka Pay Boll.
PHILADELPHIA, September 4 <A»).—
Four men held up the offices of Scott
Bros., teamsters. In South Phila
delphia, today and escaped with a
pay roil variously estimated at be
tween $l,£g0 and $5,000.
K,
Believes Mishap Caused by
Nose-Heaviness Due
to Pontoons.
A nose-neavy airplane, resulting
from substitution of pontoons for
landing wheels, coupled with engine
failure probably due to clogging of
the carbureter by ice during a climb
ing turn just after talcing off, prob
ably was responsible for the deaths of
Wiley Post and Will Rogers near Point
Barrows, Alaska, August 15, it was
reported today by Eugene L. Vidal,
director of air commerce, Commerce
Department.
Vidal, following a personally-con
ducted investigation of the crash,
submitted a 1.100-word report to
Secretary of Commerce Roper in which
he attributed the crash to a coinci
dence of factors. His investigation
indicated the airplane stalled at an
altitude of perhaps 200 feet.
“The combination of the plane in a
banking turn with still low flying
speed immediately following the take
off and climb, the motor failure and
the airplane's nose heaviness could
result in such a stall,’’ Vidal reported.
Poet ana commerce Department in
spectors were entirely satisfied with
the condition of the airplane during
its test flights, Vidal said. The later
substitution of pontoons for landing
wheels so the ship could be operated as
a seaplane, however, apparently
changed the center of gravity and
Post discussed with Joe Crosson,
Alaskan pilot who flew the bodies back
to the United States, the apparent
nose-heaviness of the plane and his
suspicion that the pontoons were re
sponsible. Because of this condition
Rogers always sat far back In the
plane on take-offs and landings and
all luggage was kept far aft
Vidal based his report on informa
tion gathered from Crosson, Sergt.
Stanley R. Morgan, Army 8ignal Corps
radio operator, first official at the scene
of the crash, Eskimos who witnessed
the accident, and others.
He attributed engine failure to ac
cumulation of ice in the carburetor by
condensation of moisture in the air at
low temperature or the freezing of
spray thrown up during the landing
and take-off and sucked in through
the air scoop.
SEARCH CONTINUES
FOR MISS JORGENSEN
Friendi Fear for Safety of
Actreis-Pianist Misting
Since Saturday.
Br th» Associated Press.
HOLLYWOOD, Calif., September 4.
—Search continued today for missing
Marchene Bach-Jorgensen. 24-year
old actress-pianist, who has figured
in several odd news happenings in
recent years.
The young woman has not been
seen since she left her home last
Saturday. Her friends expressed fear
for her safety.
Recently Miss Jorgensen was ques
tioned as the purported leader of a
cull which received •'spirit” messages
from the late Rudolph Valentino.
In May, 1934, Miss Jorgensen told
police she had been kidnaped by two
men and carried into the Hollywood
hills. The men never were found.
Last December she won a 11,000
Judgment against Lew Brice, theat
rical agent, whom she charged mis
treated her. She had sued for $100,
000.
WABASH MEDIATION
CONFERENCE OPENS
- !
Railway Officials, Brotherhood
Representatives and National
Board Meet Here.
Br th* Associated Press.
Wabash Railroad officials and rep
resentatives of the four railroad
brotherhoods met with the National
Mediation Board today to try to avert
a threatened strike.
The brotherhoods postponed the
•trike, originally set for August 31, at
the board's request to permit media
tion conferences.
The dispute was over wages in sev
eral classifications. The brotherhoods
and the carriers submitted some of
the issues to the National Board of
Arbitration. The brotherhoods subse
quently claimed the railroad had re
fused to carry out the board's awards.
Dr. William Lelserson, chairman of
the National Mediation Board, ex
pressed hope the board could arrange
an agreement. He said the confer
ences probably would continue several
days.
BAIL FOR BROWN SOUGHT
BY MRS. WILLEBRANDT
Vice President of Defunct Shang
hai Firm Faces Embezzle
ment Count.
Br the Associated Press.
SHANGHAI, September 4.—Mabel
Walker Willebrandt, former Assistant
United State* Attorney Oeneral, is
seeking to arrange bail with the De
partment of Justice for John Warren
Brown, vice president of the defunct
American-Oriental Finance Corp.
Brown, formerly of Los Angeles,
•nd other officers were charged with
embezzlement In a complaint filed by
Felthan Watson, United States attor
ney here. The alleged embezzlement,
the complaint states, Involves the
funds of paid-up stock accounts to
taling 165,000 of 15 clients.
Brown, now In Manila, Is reported
ready to come to Shanghai. Bail is
fixed at (10,000 In gold.
COUNSEL AGREE TO OPEN
ROBINSON TRIAL OCT. 7
Br th. Associated Press.
LOUISVILLE, Ky., September 4.—
Both prosecution and defense counsel
agreed today that there be no further
postponement In the trial of Mrs.
Thomas H. Robinson, Jr., and her
father-in-law. Thomas H. Robinson,
ir., of Nashville on conspiracy In
dictments In the kidnaping of Mrs.
Berry V. Stoll.
It was decided to proceed with the
trial October 7 regardless of whether
Thomas H. Robinson, Jr., who has
eluded O-men for almost a year since
the kidnaping of Mrs. Stoll, Louis
ville society belle, is captured. Rob
inson, Jr., is charged with the actual
tidnaptfi.
Dies Aboard Ship
GEORGE C. HANSON.
(Story on Page A-l.)
Morgenthau Refuses Com
ment on Difference in
Market.
Br the Associated Press.
Treasury officials were openly pleased
today with the success of their latest
half-billion-doUar Issue, especially
since the Treasury’* recent failure to
obtain a full subscription on a $100,
000.000 farm mortgage issue.
Secretary Morgenthau announced
last night that the new $500,000,000
issue of 3 H-year, 1 >/2 per cent notes
had been oversubscribed, but he de
clined to advance any explanation for
the difference in the market last week
and this.
Subscription books have been closed
on the new 3'2-year notes, but will
remain open until further notice for
holders of $1,250,000,000 In called Lib
erty bonds to exchange them for new
bonds or notes.
The financing announcement came
as Treasury figures showed that, col
lecting *6 cents for every dollar spent,
a deficit of $662,594,078 had been
rolled up In the first two months of
the financial year.
Cash Cut to 91,185,000.000.
To cover this difference between in
come and outlays, It borrowed $334,
000.000 and dipped into its cash on
hand to the extent of $358,000,000.
This reduced the ready money in its
vaults to $1,185,000,000. Big as it was.
this sum ranked small by comparison
with the amount usually carried, espe
cially since an estimated $400,000,000
was •'earmarked” for retiring national
bank notes.
Considerable sating in interest pay
ments was expected from the ex
change of liberty bonds. The Liberties
yield 4*4 per cent. The bonds for
which they are to be exchanged carry
a 2*4 per cent rate, with maturity 12
years hence, or the Liberties may be
turned In for the l’a per cent notes
maturing in 1939.
In this way the Treasury is taking
advantage of prevailing low money
rates to reduce the interest payments
on the national debt. Much of it has
been converted into short-term paper,
however, and if the savings is to be
permanent low money rates must con
tinue for the next several years. The
Treasury books schedule maturities
totaling $13,000,000,000 before 1940.
Comparative Figures.
ff>r the first two months of the
fiscal year, with the last day of Au
gust yet to be reported. exDenditures
totaled $1,237,000,000, while revenues
added up to $574,000,000. For the
same two months a year ago outlays
aggregated $930 000.000 and revenues
$436,000,000. or tax collections of ap
proximately 53 cents for each dollar
spent.
Last year's deficit for the two
months was $434,000,000 as compared
with the $662,000,000 this year. Last
year, too, revenues more than cov
ered the expenditures which the
Treasury classifies . as “general" to
distinguish from expenditures for re
covery and relief. Against the re
ceipts of $496,000,000, general dis
bursements totaled $429,000,000.
But this year, all outlays were about
evenly divided between the two classi
fications, with revenues of $574,000,000
insufficient to cover either. "Gen
eral" expenditures totaled $608,000,
000 and outlays for recovery and re
lief aggregated $628,000,000.
The receipts this year, however,
were $78,000,000 greater than a year
ago with all classifications—except the
processing tax—revealing increases.
Income tax payments rose from $42.
000,000 to $46,000,000; miscellaneous
internal revenue from $271,000,000 to
$360,000,000, and customs from $41,
000,000 to $65,000,000. Processing tax
collections meanwhile fell from $81,
000,000 to $30,000,000.
WHITE IS NOMINATED
JACKSON, Miss., September 4
(A»).—Hugh L. White of Columbia was
officially nominated as the Democratic
party candidate for Governor of Miss
issippi yesterday by the State Dem
ocratic Executive Committee.
In a session lasting less than an
hour, the committee canvassed the
official returns from the August 27
primary, and promulgated the cer
tified results.
White led Paul B. Johnson of Hat
tiesburg for the gubernatorial nom
ination by 12,066 votes with the of
ficial vote of the auditing committee
adopted as correct. The vote gave
White 182,771 and Johnson, 170,705.
DISAPPOINTS BUYERS
SCRANTON, Pa. </P).—An Ingenious
magazine salesman who said he was
selling subscriptions to win a scholar
ship at an aviation school left a trail
of disappointed buyers.
He told them with each purchase
they were entitled to a free airplane
ride by applying to ‘‘the colonel at the
second hangar” of the local airport.
Airminded subscribers couldn't find
any "colonel.”
$2,500 in. Checks Stolen.
ALBUQUERQUE, N. Mex„ Septem
ber 4 UP).—Theft of more than $2,500
in travelers’ checks and cash from
the automobile of K. M. Scoville, Chi
cago mining engineer, Monday night
was being Investigated yesterday by
police. Scqville. a Navy aviator dur
ing the World War, is a former com
modore of the Southampton Yacht
In Long Island, N. Y. ,
Keynote for Speeches in
Future Seen in White
House Parable.
BY J. RUSSELL YOUNG.
Stiff Correspondent of Thi Stir.
HYDE PARK, N. Y„ September 4.—
An Informal talk to a group of
Duchess County neighbors last night
and a long-distance speech two weeks
ago to the young Democrats meeting
In Milwaukee may serve as the key
note of Mr. Roosevelt’s political ut
terances In the near future.
In both speeches he seemed eager
to impress upon Americans the theory
that old and wornout things need
modernization and renovation, if life
is to be made happier and safer, and
that there is no need to fear neces
sary repairs.
Speaks In Rain.
About a hundred men and women
stood in a drizzling rain to hear him
last night. They sensed the signi
ficance of the New Deal parable he
drew from the repairs now being
made on the White House. He made
no direct reference to his administra
tion or his ideas for improving the
Government, but he made it plain in
the comparison he drew between the
repairs going on at the White House
and Government itself.
' Every once in a while whether it
be a human structure, things made
with hands, or things created by gov
ernment, we have to make repairs,”
he said. "Back in President Coolidge's
time the White House root leaked. It
was quiet dangerous, because the
water had rotted some of the beams.
It must be remembered that the
White House dated back as far as
1796. It is one of the most historical
buildings in the United States and
it will remain as one of our most his
torical buildings, but every once In a
while repairs must be made. But with
all these repairs it has remained the
same White House, the same archi
tecture. the same dignity and the
same beauty.”
Vetoes Seven Bills.
The speech was made in front of
the house of Moses Smith, Mr. Roose
velt's tenant farmer. The President’s
mother, Mrs. James Roosevelt, and his
sister-in-law, Mrs. John Roosevelt,
and his youngest son, John, motored
with him from the Roosevelt home to
the gathering.
Mr. Roosevelt yesterday vetoed seven
more bills. Six would have added to
the pension rolls of the Civil War.
The President conferred today with
Postmaster General Farley. It is the
first time he has seen Farley since he
returned from the Hawaiian Islands.
Farley arrived at Hide Park With
Mayor Kelly of Chicago, who came to
see the President about work relief
projects.
Others visiting at the Hyde Park
estate were Vincent Daly, head of
the H. O. L. C. in New York, one
of Farley's principal lieutenants in
New York City, and Robert Jackson,
counsel for the Internal Revenue Di
vision of the Treasury Department.
Despite the politcal stripes worn by
those in this group, the President
insisted, while talking to the press
in advance of their visit, that their
coming had no political significance.
HOUSTON SELECTED
FOR ROOSEVELT TRIP
President Reported Planning to
Use Cruiser on Return From
West Coast.
President Roosevelt is planning to
use the cruiser Houston on his pro
posed trip from San Diego, Calif.,
through the Panama Canal to the
East Coast, it was made known today
by publication of the announcement
In Army and Navy Register. At first.
Secretary Swanson and Admiral Wil
liam H. Standlev, chief of naval opera
tions, were reluctant to discuss the
plan, preferring to permit the White
House to make Its own announcement.
The Houston is the same cruiser that
the Chief Executive used when hs
visited Colombia In South America,
passed through the Panama Canal
and went to Hawaii last Summer,
Naval officials said the Houston pos
sesses particularly good quarters for
high ranking officers.
The President will be away from the
White House for at least 45 days, due
to alterations now In progress.
- - - ^ ...
SENTIMENT IMPROVED,
ASSERTS EDSEL FORD
“Basic Industries Holding Up
Much Better Than During
Usual Seasonal Lull.”
By the Associated Press.
LOS ANGELES, September 4 — Ed
sel Ford, president of the Ford Motor
Co., said yesterday that in his opinion
• the general economic sentiment is
a lot better than it was."
'•The basic industries are holding up
much better this year during the usual
season lull," he said at a press con
ference.
In the Ford factory, he said, 25.600
more men were employed this year at
the peak than last year. He estimated
that about 65.000 men are now em
ployed in the Detroit Ford plant, with
35,000 more at work elsewhere in sub
sidiaries.
Or the New Deal he said: "Many
things were attempted perhaps too
quickly to be assimilated. A good
many so-called changes have had defi
nite benefits."
Ford has been spending a brief
vacation in California.
RIOT BEGINS ROMANCE
KANSAS CITY, Kans.. September
4 i/P).—They met their future wives at
a riot.
Sergt. Aubrey S. Anglen, 24. and
Pvt. Wayne C. McClarney. 27, of the
Kansas National Guard, told about it
yesterday on their return from the
weddings in Southeastern Kansas.
Anglen met Miss Ruth Langford, 19,
and McClarney Miss Margaret Camp
bell, 18, while doing guard duty in
Cherokee County, Kans., during re
cent lead and zinc mine strike dis
orders.
Ship, Overdue, Reported.
MONTREAL, September 4 {IP).—
Overdue on her maiden voyage from
England to Montreal, the Joseph
Medill, largest all-welded ship in the
world, was reported yesterday by her ;
owners as being 400 miles'off the coast
of Newfoundland. The collier left
Newcastle-on-Tyne for Montreal Aur
gust 10. £
s
$