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' . * I I , WEATHER. — ' , <U. S. Wtathcr Bureau Forecast.) Pair tonight; tomorrow mostly cloudy, followed by showers and cooler at night; gentle variable winds tonight, moderate southerly tomorrow. Temperatures today —Highest, 77, at 2 p.m., lowest, 54, at 5 a.m. Pull report on page A-19. Clo»ing N.Y. Market! Sqjei Page 18 _ A I_I Yesterday’s Circulation, 141,067 ^ ■■ - ^ - - " ' 1 . -■ ■ - i (Some returns not yet received.) " ■ ■■ — ■ — * ■■■■■ 1 ■ 1 .. - —■ , - 85th YEAR. Xo. 34,114. STSE •ZSiSiZS'?. WASHINGTON, D. C., FRIDAY, SEPTEMBER 24, 1357-FIFTY-SIX PAGES. *** w »«,. TW0 CENTS. JAPANESE ANNIHILATE PAOTINGFU GARRISON; FLEEING CHINESE SLAIN « Province Held Crushed by Defeat. 100 KILLED IN AIR RAID Hankow Target as Nanking Threat Is Made Again. ly the Associated Press. PEIPING, September 24.—The Japa nese Army announced tonight that Paotingfu, Chinese stronghold 80 spiles southwest of here, had been captured and its Chinese garrison annihilated. Mopping up operations at Paotingfu Were completed at 1:30 p.m., the Japa nese announced. All resistance in the city, capital of Hopeh Province and key poinC of the Chinese defense sys tem in Central Hopeh, was declared at an end. Early today the Japanese had com pletely enveloped the walled city, con taining a population of 100.000. While the attack was pushed from the north and west, strong Japanese forces wait ed at the south gate. As the Chinese troops attempted to flee southward they were slain, said Japanese dispatches. No figures of casualties were given, but it was strongly indicated there Were no survivors of the Chinese gar frisnn Climax of Japanese Drive. The fall of Paotingfu was the climax ef a Japanese offensive which had rolled relentlessly southward since the crossing of the Yhngting River, 30 miles from here, September 15. At least 60,000 Japanese troops, including cavalry and tanks, took part in the drive. Paotingfu was surrounded by the victors early today, then assault units, supported by heavy artillery and air planes, advanced to seize the northern and western gates in the city’s ancient , 50-foot walls. A breach was also smashed through the northwest corner of the walls. The infantry poured through these avenues, driving the desperate Chinese defenders to seek safety through the south gate, where they were met by Withering fire. The Japanese community of Peiping celebrated Paotingfu’s fall ecstatically, hailing it as a great step forward in the conquest of all North China. JAPANESE BOMB HANKOW. At Least 100 Killed and Twice as Many Hurt in Attack. 8y the Associated Press. Japanese bombers rained death today on the middle Yangtze metropolis of Hankow, killing at least 100 persons wnd wounding twice as many, as Japan's advancing land forces clinched a death grip on Paotingfu, strategic Chinese troop base. Nine planes carried out the Hankow raid that injured an additional 200 In the crowded city. Hankow is 600 miles up the Yangtze from Shanghai. Hanyang is separated from the main city by the Han River. These two cities, with Wuchang, across the Yangtze, make up the Wuhan cities, greatest commercial and indus trial community of Central China. Advices received in Shanghai said the heaviest tolls from the Japanese . bombs were inflicted in Wuchang, where explosives landed amid women and children. The United States gunboat Tutuila radioed that no Americans were be lieved injured or killed in Hankow, Hanyang or Wuchang. The naval re , port said most of the Americans liv ing in the three cities had left by rail for Canton. Americans Leave for Canton. It was said the last group of de parting Americans, numbering 20, left for Canton this morning, many hours before the raid. Neither of the two British gunboats, (See CHINA, 1PagtTAJL) STOCK ISSUES OFF $1 TO $4 OR MORE Many Decline to Two-Year Lows. Brokerage Explanations for Drop Are Varied. ■s the Associated Press. NEW YORK. September 24.—Heavy eelling hit the stock market today and toppled leading issues $1 to $4 or more a share, many leading in new low ground for nearly two years. Activity was pronounced at the opening with the ticker tape falling two minutes behind actual dealings on the floor of the exchange. Vol ume dwindled later and prices came back a bit in some instances. Brokerage explanations for the fur ther decline varied. Most, though pointed to the deflationary aspects of the parley between Secretary Mor genthau and Undersecretary Phillips of the British Exchequer on the “hot money” problem—foreign funds in the United States are now around $8, 000,000,000—as a possible depressing influence. While retail sales continued to ex- | pand, according to Dun and Brad street, thoughts of shrinking corpora tion profits and dividends due to higher costs were believed to have been factors in the stock slide. Bonds and commodities pointed lower. Prominent share losers included United States Steel, Chrysler, West inghouse, Loew’s, Deere, Eastman Ko dak, Anaconda, Santa Pe, Du Pont, • Allied Chemical, Coca-Cola. United State Rubber, Sears-Roebuck, Con solidated Edison and Union Carbide. ♦ A U. S. Fleet Will Stay in China Long as Needed9 Yarnell Says Policy of All Possible Protection in Dan ger Zone Is Announced After Meet ing of State Department Officials. BY WILLIAM A. MILLEN. The Asiatic Fleet. will remain in Chinese waters to protect and assist Americans “as long as the present controversy between China and Japan exists,” under a policy laid down today by Admiral Harry E. Yamell, com mander in chief. The Navy Department made public Admiral Yarnell’s program after a meeting of the General Board, the highest policy making body of the de partment. It presumably had the sanction of the State Department. The Navy statement said: “The policy of the commander in chief during the present emergency is to employ the United States naval forces under his command so as to ’ offer all possible protection and assist- 1 ance to our nationals in cases where I needed. Naval vessels will be stationed ( in ports where American citizens are i concentrated and will remain there ' until it is no longer possible or neces- ] sary to protect them, or until they have been evacuated. i “This policy, based on our duties and i obligations, will be continued as long j as the present controversy between - China and Japan exists and will con- 1 tinue in full force even after our 1 nationals have been warned to leave i China and after an opportunity to < eave has been given. Most American •itizens now in China are engaged in justness or professions which are their inly means of livelihood. These per sons are unwilling to leave until their justnesses have been destroyed or they ire forced, due to actual physical Ianger. "Until such time comes, our naval 'orces cannot be withdrawn without 'ailure in our duty and without bring ng great discredit on the United States Navy. In giving assistance and jrotection, our naval forces may, at ;imes, be exposed to dangers, which will, in most cases, be slight, but in my case, these risks must be ac :epted.” Friends of Admiral Yarnell in Washington are not surprised at the irm position he has adopted. He is mown as a keen student, not only of )riental history, but of the whole I’orld. He is an avid reader and is veil posted on situations similar to the iresent. His friends here say that he is fully ppreciative of the necessity of adopt ng an adamant attitude in favor of American interests in the Far East. Accordingly, those who know the com nander in chief of the Asiatic Fleet lave been anticipating some such pol cy as he has today promulgated for ,11 ships under his command. JOBLESS CENSUS PARLEYISCALLED Biggers Asks Nine Leaders to White House Con clave on Monday. BACKGROUND— President Roosevelt agreed in August to a jobless count if the census were, made voluntarily. Con gress at once passed an unemploy ment census bill. Eighteen months earlier the President vetoed a bill for such a census on the ground it offered too much chance for dis tribution of political jobs. ~ « John D, Biggers, Toledo industrialist and dollar-a-year supervisor of the Federal unemployment census, today invited nine leaders of agriculture, business and labor to meet with him and his Government Committee at the White House Monday at 2 p.m. to give their ideas on how the census should be conducted and what it should prove. He said the meeting had the approval of President Roosevelt. A few hours after he issued tele graphic invitations, Biggers, in his first Washington press conference, told reporters he is determined to have partial returns on the enumera tion tabulated by December 1. As soon as possible, he plans to have in the mail questionnaires of not more than 14 questions for each of 31,000, 000 homes in the United States, in cluding Alaska and Hawaii. In the end, Biggers said, he may have to distribute 100,000,000 ques tionnaires. The White House meeting will bring together John L. Lewis, chairman of the Committee on Industrial Organi zation, and William Green, president of the American Federation of Labor, if all those Invited accept. A. F. Whitney, president of the Brother f | C\ UKE TOGtrA I I out among the Ml i Trees and Forests, l i one gets a real I 1 VIEW AWAY FROM I V WASHINGTON MM I I juvc mui any particular memoas. SO long as he achieved the objectives of his program. Two more appearances were sched uled for Wyoming later in the day— one at Wendover for 15 minutes and the other for an hour at Casper, home of Senator Schwartz, Democratic ad ocate of the defeated court plan. Crowds ranging from a few hundred to several thousand turned out to greet the President and Mrs. Roosevelt in Iowa with noisy demonstrations. DR. HART DECLINES POST 3t. John's Rector Won’t Become Bishop Coadjutor. Rev. Dr. Oliver J. Hart, rector of St. John’s Episcopal church, declined to day to become bishop coadjutor of the Episcopal Diocese of Central New York. Dr. Hart's secretary announced that the rector sent a telegram this after noon to Bishop Edward H. Coley of Utica, N. Y., saying he had decided to decline the post because he did not be lieve “it is God’s will” that he accept. ---- % VESSEL IN DANGER ST. PETERSBURG, Fla., Septem ber 24 (A3).—The Coast Guard cutter Nemesis was proceeding today to the assistance of the banana boat My Dwn, formerly known as the Semira, nis, which was reported leaking badly and in danger of sinking 160 miles southwest of Tampa in the Gulf of Mexico. The My Own usually run* between Tampa and Central America. * -- a/svxkc, lie oa. 1U. Was Not Invited. Senator O'Mahoney was in the welcoming committee with Gov. Les lie Miller. Senator H. H. Schwartz, a. court bill proponent, and Repre sentative Paul Greever. all Wyoming Democrats. O'Mahoney, although he was not formally invited to board the President’s special, boarded the Chief Executive's private car as the train pulled out. During the President's talk he had stood at the rear of the train in the crowd, as did Gov. Miller. Senator Schwartz and Representative Greever. O’Mahoney told newsmen that when he greeted the President inside the car they said to each other, "You’re looking fine.” "There was no time to say anything except hello,” O’Mahoney added. O’Mahoney also chatted with Mrs. Roosevelt and Marvin McIntyre, presi dential secretary, while the special train was being switched in the Cheyenne yards. 5.000 Hear Him. The President opened his speech with the remark about a friend asking why he didn't "coast” from now on. Sheriff George Carroll estimated the crowd gathered to hear the President at from 4,000 to 5,000 persons. “I had thought it was part of the duty of the President to keep in per sonal touch with the Nation,” said Mr. Roosevelt, "and so this year, since January, I have already made one trip through some Southern States, and now I’m going out to the Coast for the third time since I have been President, not counting campaign trips; going out to get a ’look-see,’ to try to tie together in my mind the problems of the Nation.” He said the greater part of the emergency was over, but a lot of prob lems remained. Defends Reclamation Work. Touching on P. W. A. projects, he said; "We have to come to an end of that program some time, and just the other day we allocated the last of the money for public works projects.’* Commenting on an editorial hold ing the Government had wasted money on a certain project, the Presi dent said, engineers were human and "could not make a home run every time they came to bat.” He denied reclamation projects were a waste of money, saying many fami lies have had to leave their farms iin the drought area to escape starvation, and it was the duty of governments to provide them with good lands so they can make a living. All the (Government undertakings, he said, had served a "very useful purpose.” The President made five unscheduled talks to as many Iowa depot audiences behind him, as he traveled toward Wyoming, asserting he was "not i» TO BE CONTINUED, ' PRESIDENT SAYS Cheyenne Throng of 5,000 Told He Won’t “Coast Through” to 1940. D’MAHONEY WELCOMES ROOSEVELT AT STATION Administration Will Keep Trying to Do “Most Good for the Greatest Number.” By the Associated Press. CHEYENNE, Wyo., September 24.— President Roosevelt told a crowd of thousands here today he was going to continue in his second term the way he had in his'first, trying to do the “most good for the greatest num ber.” After being welcomed by a group including Senator O’Mahoney, Demo cratic foe of the Roosevelt Supreme Court proposal, the President declared he had told a {fiend recently who advised him to “coast” from now on that he would not take such advice. “I don’t want to coast and the Nation doesn’t want me to coast with my feet up on the front wheels,” he said. People are thinking in national terms, he asserted, adding the ad ministration projects up to date have had the national point of view in mind. ’ Don’t let anybody deceive you, the Government of the United States is COLLATERAL SUIT _ ■ Justice Holds War Secretary and U. S. Unit Liable to Commercial Receiver. BACKGROUND— Investigation of Commercial Na tional Bank after banking mora torium disclosed that institution posted collateral to insure the ac counts of certain Government de positors. Counsel for the unpro tected depositors immediately filed 10 suits against the favored clients to recover the money received by tfuem from their protected ac counts. Justice Oscar R. Luhring of Dis trict Court today signed decrees hold ing the Secretary of War and the United States Shipping Board Mer chant Fleet Corp. liable to the receiver of the Commercial National Bank for $1,204,140.49, representing collateral given by the insolvent bank to secure Government deposits. Since the Commercial has paid gen eral depositors 60 per cent dividends, the actual balance owed the receiver, under the two decrees today, is $531. 619.66, plus interest. Assistant United States Attorney Harry L. Underwood, who represented the Secretary of War and the Mer chant Fleet Corp., said he would ap peal the two cases. The receiver was represented by Attorneys George P. Barse, general counsel for the con troller of the currency; Brice Clagett, Charles E. Wainright, George B. Springston and the law firm of Sher ley, Faust & Wilson. Signs Similar Decree. At the same time. Justice Luhring signed a similar decree in a suit brought by the receiver of the Com mercial National Bank of Philadel phia. The bank’s proveable claim against the Merchant Fleet Corp. was fixed at $10,863.80. Since the closed institution has paid a 30 per cent dividend to depositors, that propor tion of the claim must be deducted, leaving a balance of $7,604.60. The three claims were among 10 brought in District Court two years ago by the Commercial and District National Bank receivers and National Bank receivers elsewhere to recover approximately $6,356,000 in deposits which were paid in full when the bank failed to reopen after the 1933 crash. General depositors, on the other hand, received only a portion of their deposits—60 per cent in the case of the Commercial and 75 per cent for the District. The Government accounts Involved (See SUIT, Page A-3.) « EMPLOYES FIRED Roads Cut Personnel Be cause of Operating Costs and Declining Business. Bv ihe Assocltted Press. Large railroads revealed today they are curtailing personnel in an effort to check what they said was a sharp drop in net revenues caused by higher costs and declining business. The disclosure was made by rail executives attending the regular monthly meeting of directors of the Association of American Railroads. 20,000 Are Dismissed. While figures were withheld by of ficials, who declined to be quoted by name, it was indicated the three largest Eastern carriers had dismissed upwards of 20,000 employes since September 1. These are the New York Central, the Pennsylvania and the Baltimore & Ohio. It was emphasized that a part of these dismissals could be attributed to the regular seasonal lay-off as maintenance programs are curtailed, or completed. Other carrier heads also indicated their lines had curtailed maintenance work with a resultant drop in em ployment. In the face of these reports, how ever, carloadings for the week ended September 18 showed a gain of 115, 266. or 16.2 per cent, over the previous week. The association of American Railroads reported 826,565 cars loaded for the week, 36,708 more than were loaded the same week a year ago. Rail officials declared an increase in rates for both freight and passenger traffic was the only solution to their problems, noting their operating costs have increased greatly because of wage increases and higher costs of materials and supplies. Higher Rates Considered. The Interstate Commerce Commis sion is now considering a petition by class 1 carriers asking higher freight rates on the so-called heavy com modity list. This increase, if granted, would, in a large measure, railroad officials said, recoup a major share of the $120,000,000 of annual revenue the carriers lost through termination of surcharges last December 31. The heavy commodity list includes coal, iron and steel, ore, petroleum and its products, lime, plaster and cement. The commisison's decision on the petition is expected to be handed down within the next two weeks. f ; officials expected that thousands would be on the seawall along the 1%-mile' course as the afternoon wore on. The races started under perfect weather conditions, but standing ; records were not disturbed. Interest in the outboard races was heightened by the arrival of Gar Wood, jr., of Algonac, Mich., with a fleet of the small boats. Officials had expected class work to keep Wood away. Regatta officials announced this morning that Gold Cup scoring will be used in the President's Cup race tomorrow and Sunday, the bonus sys tem involved being designed to stiffen competition. Heretofore, total points based on the order of finish in the three heats have decided the winner. In addition to these points there will be a 400-point bonus for the fastest heat and 400 more for the fastest total elapsed time for the three heats. This will make certain that a boat which otherwise could establish a safe lead in the first two heats will have to maintain maximum perform ance in the third. The outboards had the Hains Point course to themselves for the first day's card, with A. B and C amateur (See OUTBOARDs7Page~A^4/) <Pageant news and pictures appear on Page B-l.) BY J. A. FOX. Doug Fonda of Orange, N. J.t swept to an easy victory in the class A out board amateur race that opened the power boat section of the President’s Cup Regatta off Hains Point today. Fonda took both five-mile heats in convincing fashion, being pressed only by Tommy Tyson of the famous racing Tysons of Chestnut Hill. Pa. The rest of the field of five was far outdis tanced. The class A outboard race for profes sionals saw two disqualifications in the first heat. Bob Myers of Evanston, III., and Paul Wearley of Muncie, Ind., beat the gun. and, although they finished second and third, their per formances went by the board. The heat was taken by Thom Cooper of Kansas City, A and F class champion. Cooper also took the second heat and, with it, the event. Wearley was second this time, and Fred Jacoby of North Bergen, N. J„ leading point scorer for the professionals this year, was third. The two disqualifications in the first heat had mowed Jacoby up to second there in the field of eight, which answered the starting gun. The early attendance was light, but Class A Outboard Honors Go to Doug Fonda of Orange Captures Two Five-Mile Heats in Con vincing Fashion—Professional Event Is Won by Thom Cooper. New giraffes for Zoo please Nicky’s News editor. Page B-l Palmisano proposes drastic change In realty taxes. Page B-l More than 50 persons reported ill after eating pastry. Page B-l King urges D. C. tax hearings for civic groups. Page B-l Living cost data in dispute in mini mum pay negotiations. Page B-l High school group starts traffic safety drive. Page B-l Regatta queen to watch street danc ing tonight. Page B-l EDITORIAL AND COMMENT. Editorials. Page A-10 This and That. Page A-10 Answers to Questions. Page A-10 Political Mill. Page A-10 Washington Observations. Page A-10 David Lawrence. Page A-ll H. R. Burkhage. Page A-ll Dorothy Thompson. Page A-ll Constantine Brown. Page A-ll Lemuel Parton. Page A-ll FINANCIAL. Corporate bonds down (table). Page A-17 Trade improves. Page A-17 Freight loadings jump. Page A-17 Excess reserves rise. Page A-17 Stocks again slump (table-. Page A-18 Curb list drops (table). PageA-19 MISCELLANY. Shipping News. Page B-2 City News in Brief. Page B-2 Traffic Convictions. Page B-2 Vital Statistics. Page B-2 Nature’s Children. PageB-14 Dorothy Dix. Page D-4 Betsy Caswell. Page D-4 Cross-word Puzzle. PageD-10 Bedtime Stories. Page D-10 Letter-Out. Page D-ll Winning 'Contract. Page D-ll ' t Page. Page. Eomics ..D-10-11 Radio _C-4 Drama _C-6 Serial Story..D-5 Editorials ...A-10 Society _B-3 ‘’inance _A-17 Sports_D-l-3 Lost*Found D-5 Woman's Pg. D-4 Dbituary ...A-12 WAR IN FAR EAST. J. S. fleet to remain in Chinese waters indefinitely. Page A-l Fapanese forces annihilate Chinese garrison at Paotingfu. Page A-l Dhiang Kai-shek declares U. S. aid to China "obligatory.” Page A-6 FOREIGN. Mussolini, Hitler plan joint world ap peal for peace. Page A-l Lloyds probes report of sighting of Endeavour. Page A-l Mussolini leaves to confer with Reichs fuehrer Hitler. Page A-6 British Ambassador in Tokio to pro test bombings in China. Page A-6 NATIONAL. War Secretary and U. S. unit held lia ble to bank f-eceiver. Page A-l Ftailroads cut personnel to recoup revenue loses. Page A-l Earley’s resignation to take auto job is delayed. Page A-l President says he will continue. first term aims. Page A-l C. I. O. and A. F. of L. in open warfare before labor board. Page A-l Mtorney General heads prosecution in Denhardt case. Page A-4 rwo more Republican conferences to be held next week. Page A-4 WASHINGTON AND VICINITY. Fonda and Cooper score in regatta outboard events. Page A-l Young flyer killed in crash as wife and friend? watch. Page A-2 Firs fted Cross rally since war sched uled tomorrcw. Page A-S f Summary of Today's Star MARKET DELAYS FARLEY’S QUITTING Postmaster General Awaits Pick-up Before Taking New Auto Job. BACKGROU\D— Rumors have been current sev eral years that Postmaster General James A. Farley would resign to be come head of some business. Rea son given is that Postmaster Gen eral has devoted many years to public life and now feels that he should get out and get into private business long enough to make some money to take care of the future. By the Associated Press. NEW YORK. September 24.—James A. Farley’s resignation as Postmaster General and his acceptance of the presidency of the Pierce-Arrow Motor Corp., it was understood in informed circles today, has been delayed by the current decline in securities and the preparation of an S. E. C. registration statement for a new issue of Pierce Arrow stock. After considering numerous other offers of executive positions, Farley agreed several weeks ago to become the head of the reorganized Pierce-Arrow Co. Following his acceptance of this offer the company’s stockholders ap proved plans for a new issue of stock, aggregating $10,700,000, which will be used principally to place a low-priced automobile on the market in competi tion with the cheaper-priced Packard and Cadillac cars. Production of the higheripriced Pierce-Arrow will con tinue. Salary May Be $50,000. In addition to his salary, which has not been disclosed, but which is be lieved to be above $50,000 a year, the Postmaster General will receive 5,000 shares of the new stock outright and 5,000 more during the first year. The decline in stock market prices set in at a time when attorneys for the company were preparing the S. E. C. registration statement, and, consequently, there was no hurry to file the statement when market con ditions were unsettled. To Be Announced by Roosevelt. It was understood Farley’s resigna tion, when it does come, will be an nounced by President Roosevelt. The contract between the Postmaster General and the company has been drawn up, but it is not known defi nitely whether it has been signed. While leaving the cabinet, Farley will retain his chairmanships of the Democratic National and State Com mittees. " I -uwi-iyocu uiuav umi Premier Mussdlini and Chancellor Hitler have agreed to make a joint, world appeal •for peace when they speak Tuesday at the close of a huge demonstration in Berlin. Mussolini, en route to Munich today by special train for what is regarded in diplomatic circles as a highly-im portant meeting with Germany’s Fuehrer, was said to have already com pleted his speech on the subject. Italians in position to know said n Duce’s speech and Hitler’s would institute a mutual message for peace which might form the basis for lasting understanding it# Europe. Pact With Britain, France. They said II Duce first wrote his speech in Italian; then rewrote it him self in German. He speaks German fluently, having learned it while a bricklayer in the German section of Switzerland and, later, while in the Austrian jail at Trento, in the years before his rise to supreme power in Italy. The speech, as it stands, probably will be made in German, although Mussolini may yet change back to Italian, these informants said. A Nazi official in Rome went over it to smooth out grammatical stiffness. Hitler, who already has arrived in Munich to greet Mussolini at the rail road station tomorrow morning, and the Italian leader were represented as having in mind the attainment of paace through some arrangement with &reat Britain and Prance, according to information available in diplomatic circles here. However, their plans do not in clude the participation of Soviet Rus iia. A Second Locarno. The arrangement might be based jn another Locarno accord, both Hit tier and Mussolini reportedly being (rilling; to enter into such a program. (The Locarno pact banded to gether Britain, Prance. Italy, Ger many and Belgium to guarantee peace between Germany and France, under terms of the Ver sailles Treaty. It became obsolete when Hitler remilitarized the Rhineland, the unarmed buffer state created between the two old enemies by the treaty.) It was said that the new line-up of jocamo accord members would have ;o be the same as that of the old Lo -arno- pact. The only changes to vhich they would agree being the mission of Belgium, which country las declared its neutral status, and he omission of the Rhineland clause, vhich is out of date now. This version was taken to mean Mussolini and Hitler intend to reject he British idea of a northern Lo ;amo embracing Britain, France and 3ermany, and a southern Locarno embracing France, Germany and Italy. Political observers believed, however, hat any real peace understandings vith Britain and France will be diffi ;ult to arrive at so long as the Span ah civil war, danger point of the vhole European situation, continues. ICE AND HITLER PLAN JOINT APPEAL FOR WORLD PEACE Mussolini’s Speech Held De signed to Form Basis for Lasting Accord. YEW LOCARNO INCLUDING BRITAIN, FRANCE SEEN Spanish War Held a likely Snag. Hitler Ready in Munich to Greet Italian Guest. BACKGROUND— On the eve of Premier Musso lini's meeting with Adolph Hitler, the consensus of Rome diplomatic circles was that Italy has ligically improved her relations with Britain and France, but that anything like a triple alliance was unlikely. Mus solini, diplomats declared, has re peatedly said co-operation with Great Britain and France would not impair the Rome-Berlin axis. By the Associated Press. MUNICH. Germany, September 24.— t*-.-> _ men, out wouia not constitute a ma jority if nearly 30 tool and die workers were added. The latter were organized and affiliated with the I. A. M. before the U. A. W. began a drive in the plant last Winter. It was brought out at today's hear ing that the company had been threatened with a U. A. W. sit-down strike last February and had shut the ( plant down immediately. Then, over the week end, they had polled their employes through person-to-person 1 contact by 11 foremen, several of whom admittedly favored the A. F. i of L. On the strength of a verbal re port of sentiment from these foremen, the company decided to deal with the A. F. of L. and in April awarded the machinists a closed-shop con- • tract. Board Hears All Sides. Aware of the “dynamite” contained in labor's factional fighting, the board decided to hear all sides after the trial examiner had filed a report upholding the C. I. O. protest against including the tool and die workers in the bar gaining unit. The examiner's report already has drawn the lire of A. F. of L. officials, John P. Frey, president of the Metal Trades Department, citing it as an instance of the board’s alleged favoritism toward the C. I. O. Today the board heard arguments ■ from Charlton Ogburn, general coun sel for the A. F. of L.; David Kaplan, counsel for the I. A. M., and J. Marcus Hardin, counsel for the company, in ■ opposition to the examiner's report. A. W. Smith appeared as counsel for the C. I. O. A decision is not expected for some time, with the board anxious to avoid repercussions such as greeted the Na tional Electric Products case ruling. Popcorn Man Leaves $1,00,917. KANSAS CITY, September 24 <£>).— For many years prior to his recent death Irwin R. Neudeck operated a popcorn stand here. An inventory of his estate was filed yesterday. It listed his property at $100,011. * C. 1.0. FIGHTS A.F.L Clash Over Representation of Machinists Aired Before Board. Counsel for the Committee for In dustrial Organization and the Amer ican Federation of Labor were in open warfare before the National Labor Relations Board again today as the full board membership heard testimony in connection with a com plaint lodged by the United Auto mobile Workers, a C. I. O. affiliate, against the National Motor Bearing Co. of Oakland. Calif. Circumstances in the case were almost exactly parallel with those in the celebrated National Electric Products case, in which the board de clared a closed shop A. F. of L. con tract invalid and ordered an election to settle doubts as to whether the A. F. of L. union was the majority bar gaining agent. In the California situation, a closed shop contract likewise has been granted the International Association of Machinists, an A. F. of L. affiliate, but a trial examiner of the Labor Board already has ruled that the U. A. W. rather than the I. A, M. had a majority of membership in the proper bargaining unit for the pro duction workers of the plant. Admission of Workers. The difference of opinion centers ; upon whether the tool and die workers should be included within the bar gaining unit, the board’s trial exam iner contending thftt they should not, while counsel for the A. F. of L. and the company contended they should. The importance of this distinction ( lies in the fact that the U. A. W. membership of 55 would give them a majority of 97 production workers without including the tool and die hood ot Railroad Trainmen, is the third of the labor representatives who will meet with: Officials to Be Present. Edward A. O’Neal, president of the American Farm Bureau Federation: M. W. Thatcher, president of the Farmers’ National Co-operative Grain Corp., and L. J. Tabor, master of the National Grange agricultural repre sentatives, and W. Averell Harriman, chairman of the Business Advisory Council; George H. Davis, president of the United States Chamber of Com merce, and William B. Warner, presi dent of the National Association of Manufacturers, representing industry. Biggers said he also had asked Secretary Wallace, Alan Johnstone, counsel for the special Senate Com mittee on Unemployment and Relief; C. B. Uttley of the Post Office Depart ment, and Frank W. Persons, director of the United States Unemployment Service, to be on hand with his com mittee, comprising Secretary Roper, Secretary Perkins, W. P. A. Chief Hopkins, Chairman Altmeyer of the Social Security Board, Chairman Rice of the Central Statistical Board and Director Austin of the Census Bureau. To Be in Postcard Form. “We will have reached by tonight or tomorrow tentative agreements among members of the Committee on essentials to be covered in the ques tionnaire,” said Biggers, who has been given office space on the sixth floor of the Commerce Building. “But we will not reach a final de cision until we hear from the repre sentatives at Monday’s meeting. We have limited the number invited to this conference so that it will be a working session Instead ^)f a scenic conference.” Through his questionnaire Biggers expects to find how many persons m the United States are unemployed, how many are partially unemployed, how many are unable to work and how many are unwilling to work. The questionnaires, on blanks shaped like post cards, but larger, will be delivered by postmen.