Evening star. [volume], February 28, 1937, Page A-13, Image 13

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

Image provided by: Library of Congress, Washington, DC

                
KREUGER & TOLL
S. E. C. Attempts to Build
Case of Contrast in Treat
ment of Bondholders.
By the Associated Press.
NEW YORK. February 27 —Counsel
for the Securities and Exchange Com
mission attempted to build a case of
contrast today, in its Kreuger <fc Toll
Protective Committee hearing, be
tween treatment accorded a small
group of bondholders who recovered
100 cents on the dollar and the bulk
of holders who received only part of
their claims.
Edwin de T. Bechtler. attorney for
Lae Higgmson & Co., principal
American banker for Kreuger & Toll,
had testified the f.rm purchased 24
bonds of $1,000 each at their face
value from a group of claimants fol
lowing the crash and suicide of Ivar
Kreuger. and that these were the only
bonds so purchased.
Disclosure of this fact in a regis
tration statement with the S. E. C.
was the genesis of the present investi
gation of the Protective Committee,
headed by former Secretary of State
Ba inbridge Colby, for 5 per cent
Kreuger <5: Toll debentures.
Today commission counsel, Prof.
A. Foras of Yale Law School, ques
tioned Sigfried Hartman, formerly
connected with the Colby committee,
in an effort to show all holders of
the debentures had not fared as well
as those paid at face value.
it was Drougnt out mat Kreuion
Realization Co., corporate vehicle lor
various protective committees in
liquidating the bankrupt estate of
Kreuger & Toll, had realized for
debenture holders $193 89 per $1,000
face value of claims. Previously there
had been two payments to holders
of the debentures of about $25 per
$1,000, the testimony indicated.
Eugene Untermyer, counsel for the
Colby committee for a time, was
asked whether there had been any
agreement between the committee and
Hartman, who had resigned from the
Colby group to become counsel for
the trustees for the debentures, the
Marine Midland Trust Co., that the
payment of certain claims at face
Value should not be disclosed.
Untermyer told Foras there was no
euch agreement. His testimony con
cluded the New York phase of the
hearings.
- ■ ■ ■■ •-—
SPANISH INSURGENTS
BAN HOLLYWOOD FILMS
Publish List of Actors, Directors
and Writers Included—No
Reason Is Given.
By the Associated Press.
SALAMANCA. Spain. February ;
27—The insurgent government today
announced a ban on all films written,
acted or directed by a proscribed list
of Hollywood celebrities.
Included in the insurgent ban were
the screen stars Paul Muni and Luise
Rainer; Directors Lewis Milestone and
Frank Tuttle; Upton Sinclair, Clif
ford Odets, Liam O'Flaherty and Dud
ley Nichols, writers; Humphrey Cobb
and Kenneth MacGowan.
The works of the novelist Ralph
Bates, said by the insurgents to have
sent a telegram of sympathy to the
Madrid government, also were banned.
No reason for the action was an
nounced.
THE WEATHER
District of Columbia—Snow or rain
today; tomorrow fair, not much
change in temperature; moderate
north and northeast winds, increasing.
Maryland and Virginia—Snow in
west and rain or snow in east portion
today; slightly colder in east portion
tonight; tomorow fair.
West Virginia—Snow today; tomor
row fair, not much change in temper
ature.
River Report.
Potomac and Shenar/oah Rivers
muddy late yesterday afternoon.
Report Until 10 P.M. Saturday,
Midnight_30 12 noon_35
2 a m._ 30 2 p m._38
4 a m. __31 4 D m._40
« a m._32 0 p.m._37
* a m, __32 s p m._35
lo p m.-33 10 p.m._33
Rnari Until 10 P. M. Saturday.
Highest. 40. 4 p.m. yesterday Year
• go. 55
Lowest. 30. 12:01 a m. yesterday. Year
• go. 38.
Record Temperatures This Year.
Highest. 78, on January 9.
Lowest. 23. on February 6.
Tide Tables.
(Furnished by United States Coast and
Geodetic Survey.)
. , Today. 'Tomorrow.
High-10:01 am. JO:3Sa.m.
Low - 4:31a.m. 5:09 a.m.
High-10:21p.m. 10:59 pm.
Low - 4:59 p.m. 6:40 p.m.
The Son and Moon.
_ . , Rises. Sets.
Bun. today _ 8:43 5:59
Sun. tomorrow_8:41 8 on
Moon, today _9:39 p.m. 7:54 a.m.
Automobile lights must be turned on
ene-half hour after sunset.
Precipitation.
Monthly precipitation in inches In the
Capital (current month to date):
Month. 1937. Avge. Record.
January --7.83 3.55 7.83 '37
February --... 3.33 3.27 6.84 "84
March- 3.75 8.84 01
April- 3.27 9.13 '89
May - 3.70 10.89 '89
June- 4.13 10.94 'on
July -—-- 4.71 10.63 '86
August - 4.01 14.41 >28
September_ 3.24 17.45 '34
October - 2.84 8.67 '85
Hnvember___ 2.37 8.69 '89
December_ 3.33 7.66 '01
Weather in Various Cities.
_ . Preoip.
^-Temperature^ 7:30
Max. Min. Sat. pm to
Sat- Fri. 7:30 7:30
.. „ _ • urday.night. p m. p.m.
Asheville. N. e-40 ir 28 o.04
Atlanta. Ga..- 40 32 38 0.08
Atlantic City. W. J._ 38 30 36
Baltimore. Md- 40 30 36
Birmingham. Ala._ 38 36 0.43
Bismarck. N. Dak.. 24 ■—2 22
Boston. Mass_ 38 30 30 _
Buffalo. N. Y._ 24 22 20 0.03
Chicago. 111. 30 24 2R
Cincinnati, Ohio.. 34 28 32 _
Cheyenne. Wyo_ 32 —6 28
Cleveland. Ohio— 26 26 24
Pallas. Tex. ___ 38 32 36 0.03
Davenport. Iowa... 30 24 28
Denver. Colo- 30 10 30 o.ni
Dee Moines Iowa.. 26 22 2* 0.02
Detroit. Mich_ 30 24 24
Duluth. Minn_26 s 22
El Paso. Tex- 62 86 80 _
Gal vat ton. Tex._ 46 48 44
Helena. Mont- 26 6 22 0.01
Huron. 8. Disk_20 8 is
Indianapolis. Ind— 32 28 30 0.01
Jacksonville. Fla_no 42 66
Kansas City. Mo._28 24 24 _
Little Rock. Ark... 34 32 34 0.07
Los Angeles. Calif.. 70 46 62
Louisville. Ky._ 34 26 32 0 06
Marouette. Mich... 22 16 20
Memphis. Tenn_ 36 28 34 013
Miami. Fla... ... 72 60 70
Minneapolis. Minn. 24 18 20
Mobile. Ala.. _ 48 42 48 061
New Orleans. La... 54 48 48 0 21
New York. N. Y. 3R 32 3(1
North Platte. Nebr. 24 22 2T
Omaha. Nebr. .. 24 22 22 _
Philadelphia. Pa... 38 32 34
Phoenix. Ariz. _ 66 38 64
Pittsburgh. . Pa_ 30 24 26 0.01
Portland. Me. _ 32 28 22 _
Portland Oreg 52 36 52 _
Rapid City. S. Dak. 30 6 28
S. Lake City. Utah 44 32 40 0.09
St. Louis. Mo. . 34 28 28 0.05
San Antonio. Tex._ 50 38 46 0.01
San Dieeo. Calif. 64 42 60 _
S. Francisco. Calif. 58 44 58 _
Santa Fe. N. Mex.. 40 22 38 _
Savannah. Ga_ 52 34 44 _
Seattle. Wash_ 54 42 52 . _
Springfield 111. 30 26 28 0.01
TamDa. Fla. _ 68 48 66 _
Vicksburg. Miss. 40 36 36 1.31
WASH’GTON. D. C. 40 30 36'
t
Show Place to Become Jesuit School
A view of Inispada. the palatial home at Manhassct, Long Island, of Mrs. Nicholas F. Brady,
widow of New York utility magnate, which she is preparing to give to the Jesuit order as a house
of studies to train young men for the priesthood. The main building, of Gothic architecture, 1
is four stories in height and consists of 87 rooms. The estate is considered one of the most
beautiful on Long Island. —Wide World Photo.
$109,000,000 Spent for Aid
Of Old, Young and Blind
Social Security Rounding Out First
Year of Existence Has Been Voted
$214,000,000 for Next Year.
BY J. A. FOX.
A growing arm of tt e old, the young
and the blind is receiving direct aid
under the Federal social security pro
gram, just now rounding out its
first year.
For the first 11 months of the op
eration of the social security act—up
to the middle of January—more than
$109,000,000 was spent to help the
indigent aged, dependent children and
sightless, the respective totals, in
round figures, being $92,853,000, $11,
971,000 and $4,290,000.
For the new' fiscal year, starting
July 1 next. Congress has voted $214
000,000 for these three items, the old
age assistance fund going to $150,000,
000, child help to $54,600,000 and
blind aid to $10,000,000, in comparison
with a grand total of $128,000,00 for
the current year.
i The independent offices bill con
taining the Social Security Board ap
propriation is still in conference, but
these particular allotments went by
both House and Senate as asked by
the board *
Many States Qualify.
The great increase is taking place
in the ranks of the old-age pensioners,
where more than three-fourths of the
States already have qualified for Fed
eral grants-in-aid by adopting plans
sanctioned by the Social Security
Board. Other States are expected to
fall in line. All of the State rolls
are increasing.
For example, last April 26 States
and the District of Columbia reported
about 433,000 recipients of old-age
assistance. With a dozen more States
added, the lists were more than doubled
by September. This situation was
anticipated when the Government em
barked on this venture, but the ulti
mate obligation is still a matter of
speculation.
a compensating factor will enter
the scene five years hence, when old
age benefit payments are started
from the fund now being built up by
contributions of employed and em
ployer. But, as the Committee on
Economic Security reported to the
President two years ago, “With an
increasing and even more rapidly
increasing percentage of the aged, the
cost of supporting old persons will be
a heavy load on future generations,
regardless of any legislation that may
be enacted.”
Bureau Sees Shortage.
The Federal portion of this type of
aid equals one-half of <the State ex
penditure up to $30 monthly per per
son. plus an additional 5 per cent
of the Government grant for admin
istration or assistance. And even with
the $150,000,000 in sight for the com
ing year—a figure insisted upon by
the Budget Bureau—the Social Se
curity Board believes it will run
short.
At a House Appropriations Sub
committee hearing, when the board
defended its needs in a prepared state
ment. it was pointed out that the
Census Bureau estimated that on
January 1, 1938, the total number
of persons in the United States who
had reached the age of 65 and vfere
potentially eligible for payments would
be 7.988,000. , The board figured that
20 per cent, or nearly 1,600,000 of
these, would go on the rolls. The
Budget Bureau stuck to an estimate
of 15.7 per cent, which amounts to
slightly more than 1,250,000.
The board faces an apparent deficit
in the current year, expenditures for
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the half from July to January run
ning $59,289,612 ^8 out of a total ap
propriation of $85,000,000
Pensions Vested in States.
Discussing this point at the lubcom
mitte hearing, Frank Bane, executive
director of the board, pointed out that
the right to det .rmine the' number
, of persons who are in need and the
! pension per capita is vested in each
State, although the Government limits
its contribution to $15 monthly.
“The percentage of persons held
eligible in the various States—that
Is persons over 65 years of age,” he
said, "ranges from about 2 per cent
to more than 35 per cent. Many
States have had lafge waiting lists
of eligible applicants who have not
yet received assistance. At the pres
ent rate of increase in the number
[ of recipients, it seems entirely pos
sible that 20 per cent of the aged
population will be receiving assistance
by July, 1938. Thus to base the
request upon the assumption that
15.7 per cent will receive assistance
seems conservative, just as we told you
last year we thought $85,000,000 was
a very conservative figure.’’
' It was explained, too. that the
monthly pension for 1938 is being
figured on a minimum basis of $19,
which would entail an average pay
ment of $9.50 by the Government.
It has been ranging around $18.50,
although payments vary widely, Mis
sissippi. for instance, allowing $3.92,
and California, $31 36.
$35,000,000 for Child Aid.
For the fiscal year 1937, the appro
priation for child aid was $35,000,000
and for blind, $8,000,000, and to judge
by expenditures for the first- six
months, a surplus would be left when
July rolls around. However, the story
is like that of the pensions—addi
tional States are coming in with ap
proved plans that allow them to share
in the Federal disbursement; the num
ber of eligibles is increasing, and in
the case of the children, at least, the
per capita payment curve is upward.
The Federal aid for dependent chil
dren is one-third any State allow
ance up to $18 per month for the
first child, and $12 for others; for
the blind it is half, up to $20 per
capita. In each type there is also
an allowance of 5 per cent of #!e
Federal grant for administration or
assistance. . •
The Census Bureau estimates that
by January 1 next the total popula
tion of children under 16. the eligible
age. will be 36,444,000, and the board,
on the basis of past experience, puts
the dependency percentage at 3.1, or
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this pre-season bargain.
Special Prices on Upholstering .*
Call, Writ a or Phono, and EtHm
motor Will Choorf ally Call
With Samplat
Standard Upholstery Co.
913 7th St. N.W. Met. 6282
Oppe.it* Goldenberg’.
a total of something more than I
1,000.000. In the 26 States and Dis
trict of Columbia which had approved
child plans in Novetnber, the House
hearing was told, "an average of three
children per family are receiving aid.”
This proportion, it was emphasized,
would increase as "eligible families
now receiving general rc'ief or par
ticipating in the works program are
transferred.” The average monthly
payment of $10.35 'is expected to ad
vance to $11, of w: ich the Govern
ment's share will be $3.67.
Plan to Aid 67,000 Blind.
Plans are being made to help about
67.000 blind, this total being reached
by figuring that 4 9 persons out of
every 10,000 will get this sort of as
sistance. For these, payments are
due to remain practically stationary
at $25 monthly, of which the Fed
eral share, of course, Is $12.90.
As has been said, this State-aid
program has been only partially in
effect in the past year, some States
getting in early and others still be
ing in the qualifying stage. For 1938,
however, estimates are based on 100
per cent coverage.
And to this bill must be added
general overhead. Including the
money States get toward administer
ing the unemployment compensation
for which industry is taxed; mater
nal and child welfare grants to the
States through the Labor Depart
ment; vocational rehabilitation by the
Interior Department, and the cost of
public health activities conducted by
the Treasury—all viewed as part of
the vast social security pattern.
Conservatively, it shapes up as bet
ter than a quarter-billion-dollar prop
osition annually right at the outset.
-•
LECTURE SERIES OPENS
Dr. H. S. Jennings, professor of
soology of Johns Hopkins University,
opened a series of lectures en "The
Frontiers of Law and Economics” yes
terday at the Agriculture Department
Auditorium, sponsored jointly by the
department and American University.
The next lecture will be delivered
at 1:45 <p.m. Saturday by Gardiher C.
Means, industrial section director, Na
tional Resources Committee.
Wed 60 Years
WEST VIRGINIA COUPLE
MARKS ANNIVERSARY.
MR. AND MRS. GILBERT
KITCHEN
Of Berkeley County, W. Va.,
observed their sixtieth wed
ding anniversary at their
home near Martinsburg.
Mrs. Kitchen was Miss Ida
M. Chapman before marriage.
She is 79 years old. Mr.
Kitchen is 85. They were
married on his 25th birthday
anniversary.
The couple has six children,
including Assistant Postmas
ter Harry C. Kitchen of Mar
tinsburg.
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SMATHERS BACKS
JUDICIARY CHANGE
New Jersey Senator-Elect Will
Take Seat in Time to
Support Bill.
By the Associate*! Press.
ATLANTIC CITY. N. J., February
27.—Announcing his "wholehearted
support” of President Roosevelt’s Fed
eral Court proposals. Senator-elect
William H. Smathers said tonight
"All the people of the Nation will be
best served by adding new and young
er members to the Supreme Court.”
"I will take my seat in the United
States Senate in time to support the
President's Federal judiciary reform
proposal to the limit of my energy and
ability,” the New Jersey Democrat
said In a statement.
Victor over W. Warren Barbour. Re
publican incumbent, in the November
election, Smathers has delayed going
to Washington in order to hold hls<
seat in the State Senate. He said last
night he would take the oath as
United States Senator March B, the
day before Senate Committee Hear
ings on the court proposal are to begin.
His stand in favor of the President’*
court plan will leave new Jersey!*
senatorial ranks stalemated on the
issue, as the State’s senior Senator,
Democratic A. Harry Moore, has an
nounced his opposition.
----•—-—
Admits He Is Fugitive. 1
NEW YORK, February!
Found sleeping in the subway. Charles
ton Neil. 28, was held in the Bronx
County Jail today while police checL.'d
his alleged story that he was a fugi
tive from justice in Michigan and
Ohio. Detectives said Neil said he was
wanted in Detroit for a forgery involv
ing $1,400, and in Ohio for violating
his parole after conviction for another
forgery.
COUNCIL CIRCLE
"CARLETTA"
Circles Daily, 2:30 & 7:30 P.M.
Personal interviews for spiritual help
and guidance may be arranged by a
visit to the Council Circle, or telephone
Carletia reader Consultation SI
922 14th St. N.W. MEt. 4993
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