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Evening star. [volume] (Washington, D.C.) 1854-1972, November 07, 1937, Image 2

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Bedaux Predicts Windsor
: Wilt Arrive After
: Storm Is Over.
»• v ■.
Brth« Associated Press.
NEW YORK. Nov. 6.—A prediction
that the Duke of Windsor will visit
thjs country at Christmas-time, after
the buffeting storms of controversy
h^e died down, was voiced tonight by
hit American representative. Charles
E.-"Bedaux, New York engineer.
The chubby little millionaire—once
a sweating “sandhog” who mucked in
the gloom of Manhattan River tunnels
before his invention of the Bedaux
"labor unit" system of production
brought him riches—shook his head
ln( moody bewilderment over the turn
in his fortunes.
We raised a glass brimming with
old brandy In the living room of his
luxurious suite at the Plaza Hotel and
"A toast to the Duke and
Duchess . .
Then he shook his head again.
With kaleidoscopic swiftness, the
bright world of his dreams had fallen
to pieces. It was all going to be so
He had acted so carefully, s a
cautiously, to safeguard the prestige
of the royal couple as "advance man”
for their projected 37-day excursion
tq study American labor and housing
Couple Wed at His Chateau.
It was in his ancient Chateau de
Cande, on the French Riviera, that
the abdicated King Edward VIII took
Wallis Warfield as his bride—and
Bedaux was delighted at the chance
to chaperon them on their American
Paradoxically, the boomerang to
his hopes proved to be himself—or
rather the Bedaux labor system
which brought him from “sandhog"
humbleness to wealthy host of roy
alty and which American labor or
ganizations assailed as a "stretch
out” and "speed-up” scheme of pro
duction aimed at sapping the mar
row out of the American working
man’s backbone.
As a target of rising hostility. Be
daux explained tonight, he could do
no less than "abdicate'’ himself, as
Edward abdicated last December 10
from the throne of Great Britain—
so that Windsor should not become
Involved in the controversy.
Scoffs At Labor Attacks.
Bedaux scoffed at union leader at
tacks accusing him of being a Fascist
or a Nazi.
His organization, he said, had been
thrown out of both Germany and
"And still they say I am a Fascist,"
he laughed.
He defended his patented "labor
Unit" efficiency system, which brings
him revenue from 400 American fac
tories now using it, declaring:
"Invariably, when labor studies
Bedaux seriously and understands
the system, it is with us.”
He cited an example of a factory
wlere his system lopped 1,000 men
off a 3,000-employe payroll. "But
those 1.000 workers did not lose their
jobs,” he said. “The factory intro
duced a cheaper article, enlarged its
output and soon had 4,000 employes.”
Federal Judge Rules Consent of
State Must Be Specifically
Granted for P. W. A. Plan.
Sr the Associated Press.
• PHILADELPHIA. Nov. 6.—Federal
Judge Oliver B. Dickinson ruled today
that the Federal Government cannot
acquire lands within State lines by
condemnation without the consent of
the State.
Judge Dickinson rejected a request
by the Department of the Interior to
condemn 459 acres for a Public Works
Administration park and recreation
"Without the consent of the State
the United States can exercise no
sovereign powers over the lands
within the borders of the State,” ruled
Judge Dickinson.
^''Pennsylvania, however, as every
sovereign State, possesses the power
of eminent domain and may confer
such power upon a corporation to be
exercised by it for public purposes. * • •
“We assume, the power may be con
ferred upon the United States. With
out this, however, the power Is not
—" ■ •
i --
Title Forfeited Because Still Was
Found in Raid.
SCRANTON, Pa., Nov. 6 (JP).—A
Federal Court jury today ordered the
title of real estate owned by Frank
and Frances Yanshak forfeited to the
Federal Government today because an
Illegal liquor still was found there
In a raid In September, 1936.
The case was the first of its kind
In the middle district of Pennsylvania
and the Treasury Department said it
was one of less than a dozen since
the repeal of prohibition.
An automobile seized by the Fed
eral agents In the raid was ordered
returned to Mrs. Yanshak.
Readers' Guide
News Summary
The Sunday Star, Not. 7, 1937.
Main News Section.
Japanese forces tightening grip on
Shanghai. Page A-l
Showdown on peace aims sought of
Japan. Page A-l
Japanese increase Manchukuo troop
concentration. Page A-4
Anti-red treaty declared backed by
three armies. Page A-l
Five captive ships hit British negotia
tion with Franco. Page A-2
U. S. taking stiller attitude toward
Mexico. Page A-4
Comintern defies triple alliance of
enemies. Page A->
Battle looms in Canada over U. S -
Brltish trade pact. Pago B-Z
Threat to business seen forcing labor
peace action. Page A-l
G. O. P. leaders regard Dewey as likely
presidential nominee. Page A-l
Bear market quia started by Twentieth
Century Fund. PageA-2
Use of security funds for building pro
gram urged. PageA-Z
President urged to heed those who
would aid business. Page A-3
Armistice Day Observance to Start
Today. Page A-7
Private capital investment in U. S.
shipping sought. Page A-10
Civil Service Commission to recruit
Job prospects. PageA-14
Pre-war peace parley urged by Dr.
Halodan Koht. Page A-18
Community Chest to launch cam
paign Wednesday. Page A-l
Federation elects Carruthers, hits new
car token rate. Page A-l
Wage-hour administration by Labor
Department predicted. Page A-Z
New regulations bring “truce” in
airport fight. Page B-l
Attendance Records Broken at Chrys
anthemum Show. Page B-l
Palmisano sees no chance for D. C.
race track bill. Page B-l
Broadening of income tax base seen as
unlikely. Page B-l
Vandenberg to seek security and la
bor law changes. Page B-l
Georgetown, West Virginia tie after
hectic final period. Page B-6
MondorfT’s field goal near finish wins
for Maryland. Page B-7
Navy finally shows power, defeating
Columbia, 13 to 6. Page B-8
Randolph-Macon spoils home-coming
day at American U. Page B-9
Nationals likely to trade Simmons in
revamping team. PageB-10
Neydar is easy winner in Futurity at
Pimlico track. Page B-U
Traffic convictions. Page A-8
Obituary. Page A-12
City news in brief. Page A-1S
Shipping News. Page B-2
Editorial Section.
Editorial articles. Page* C-l-3
Editorials ar.d comment. Page C-2
Civic news. Page C-4
Winning contract. Page C-4
Military and veterans’
news. Pages C-5-«
Parent-Teacher activities. Page C-6
Croas-word puzzle. Page C-*
Resorts. Page C-7
Educational. Page C-S
Society Section.
Society news. Pages D-l-ll
Well-known folk. Page D-g
Barbara Bell pattern. Page D-9
Women’s clubs. PageD-11
Financial, Classified.
Fifth District Business
uneven. Page E-l
Stocks slide up. Page E-l
Industry shows new
declines. Page E-l
Stock table. Page E-2
Bond table. Page E-3
Curb table. Page E-4
Stamps. Page E-5
Lost and found. Psge E-5
Vital statistics. Page E-5
Classified advertising. Pages E-5-17
Feature Section.
News feature*. Pages F-l-3
John Clagett Proctor. Page F-2
Dick Mansfield. Page F-3
Automobiles. Page F-3
Amusements. Pages F-4-5
Children's page. Page F-6
Radio programs. Page F-7
Catholic Priest, Driver of Machine,
Suffers Nervous Shock
After Accident.
Br * Staff Correspondent ot The Star.
WALDORF, Md„ Nov. 6.—Richard
Farrell, 7, was struck by an automo
bile and seriously injured while cross
ing the road near his home here today.
Father Michael J. Doody of the Sacred
Heart Convent at La Plata. Md„ whom
police said was driving the car, was
not held.
Father Doody told Maryland State
Police the child ran ii? front of his
car and that he swerved almost off
the road in an effort to avoid hit
ting him.
Following the accident, Father
Doody rushed the child to Providence
Hospital in Washington, where his
condition was said to be serious. After
reporting the accident to State police
here, Father Doody W'as reported to
be confined to his bed at the Sacred
Heart Rectory in La Plata with
nervous shock.
[".aiwTictUres; |
P Seta Number 1, 2, S and 4 *
p Now Available J
j§ nifNY one is entitled to one week’s set of Four i
p Pictures in the Art Appreciation campaign 9
B of The Star upon payment of only 39c at the Art 9
|jg Counter in the Business Office of The Evening S
m jp
| By mail—inclose 46c (stamps not acceptable), 9
I addressed to the Art Appreciation Counter. The
B Evening Star. ^
B Indicate desired set—No. 1—2—3—4 ,
fwt •
H ‘ Addraaa__ 9
PI Af« (if atadant)_Tam.
I \ ‘ '
Measure to Follow Farm
Legislation to Early Pass
age, She Declares.
Chairman Norton of the^House La
bor Committee returned to Washing
ton yesterday confidently predicting
the controversial wages and hours bill
would follov the administration’s farm
program through Congress at the
forthcoming special session, but not in
its present form.
There is strong likelihood, Mrs. Nor
ton intimated, that the bill will be
recalled from the House calendar and
some of its major features revised in
committee. The principal change, she
believes, will be designed to place ad
ministration of the proposed law in
the Labor Department instead of an
independent five-man board.
Since adjournment of Congress,
Mrs. Norton said, she learned there
is considerable sentiment among mem
bers of the Labor Committee and in
dustrialists in favor of placing juris
diction over any wages and hours plan
in the Labor Department.
Fear Board’s Power.
"Most of the industrialists with
whom I have talked,” declared Mrs.
Norton, “feel that the five-man board,
as set up in the present bill, would
have too much power. They believe
it might be better to have the law
administered in the Labor Depart
Some -members of Congress, how
ever, have been critical in the past
of Secretary Perkins, and as a result,
there is a serious question whether a
move to broaden her powers over labor
and Industry would be given congres
sional approval. Miss Perkins’ atti
tude on geographical differences par
ticularly aroused the ire of some mem
bers prior to Senate passage of the
wages and hours bill at the last ses
The Labor Standards Board which
the present bill would create to ad
minister the wages and hours law,
would be Composed of five men, ap
pointed by the President in accord
ance with the requirements of geo
graphical, industrial and labor differ
ences. One member must be from the
Northeast, one from the Northwest,
one from the Southeast, one from the
Southwest and one from the Central
part of the country. One of these five
members would be representative of
the employes and another the em
“Least Danger to Business."
Mrs. Norton pointed out that in her
travels since adjournment she found
“a great deal of sentiment for mini
mum wages and maximum hours.”
“But the question every one asks,”
[ she said, “is how the Government can
regulate wages and hours with the
least danger to business? My answer
has constantly been:
“The Government wants to create
employment, not destroy it.”
As soon as the special session con
venes. Mrs. Norton said she would call
her committee together to determine
the changes that should be made in
the present bill and to map out a
program for its now doubtful legisla
tive journey—doubtful because the
powerful House Rules Committee has
steadfastly refused to grant a special
rule for its consideration. But despite
this opposition in the Rules Committee
which came principally from such in
fluential Southern Democrats as Rep
resentatives Cox of Georgia and Dies
of Texas. Mrs. Norton said she Is con
fident the wages and hours bill would
be “the second order of business" of
the House at the extra session.
One member of the Labor Commit
tee who already has disclosed he
proposed to fight for recall and re
vision of the bill is Representative
Thomas, Democrat, of Texas. He
! has recommended elimination of
exemptions for certain classes of
workers now embraced in the bill,
including employes of local retailers!
Although Mrs. Norton does not be
lieve her committee will consider an
outright substitute for the present bill.
Representative Lamneck, Democrat,
of Ohio said he planned to introduce
an entirely new measure which would
authorize the Federal Trade Commis
sion to cite for unfair competition in
dustries which permit "substandard”
working conditions or child labor. He
said his bill would not attempt to fix
wages or hours, and that it would be
ready for introduction November 15,
the first day of the special session.
600 Boys Join Search for Dr.
Janies I. Seder, Missing
Since Monday.
By the Aseoeltted Press.
HUNTINGTON, W. Va„ Nov. 6 —A
mass hunt, with about 600 Boy Scouts
and members of the schoolboy traffic
patrol taking part, got under way to
day for the missing Dry James I.
Seder, 7», former head of the State
Anti-Saloon League.
The search was organized after po
lice were unable to find a clue to the
whereabouts of the retired Evangelical
minister and former missionary.
Dr. Seder was last seen in his apart
ment Monday. His two sons, Willard
Seder of Pittsburgh and Arthur Seder
of St. Paul, Minn., are here to help
in the search.
Repairs Ordered as Kalamazoo
Weighs Wage Demands.
KALAMAZOO. Mich., Nov. 6 OP).—
Eight electric light babies, cut by un
identified persons last night, were be
ing repaired today, as the City Com
mission considered wage demands of
union members of the municipal light
and Water Department.
The interruption of power left city
streets dark last night.
Officials of the International Elec
tric Workers’ Union, who had threat
ened to pull switches in the municipal
electric light plant and the water
pumping station, promised to defer
action until the new City Commission
mets Monday evening.
Chief of Police Lewis Marshall was
shot and killed here today as he
placed a prisoner in a jail cell.
Chief Marshall had arrested the
man, named by Sheriff A. L. Cooper
as Wiley Salyer, a farmer about SO
years old, on complaint that he was
drunk and disorderly. Marshall led
him about two blocks to the jail but
had failed to aaarab him.

Former New Deal Official
Fears Centralization
of Power.
By the Associated Press.
Nov. 6.—Hie Investment Bankers As
sociation of America today blamed the
autumn collapse in the securities mar
ket partly on Federal tax laws and
heard a former New Deal Treasury
Undersecretary condemned adminis
tration spending policies as "destruc
tive of self-government and contrary
to the welfare and happiness of the
In his first public address since he
left his Treasury post in February,
1936, Thomas Jefferson Coolidge as
serted that the apportioning of huge
Government funds by a "Washington
bureaucracy” was causing a "centrali
zation of power in remote govern
ment,” which was "exactly what our
ancestors tried to prevent through the
Frequently quoting the sage of Mon
ticello for whom he was named, the
Boston banker urged "that the Federal
Government at once give up the direc
tion of all this varied welfare work
having to do with the Individual, and
turn the full responsibility back to the
States and local governments.”
Would Apportion Revenues.
He said it could be done without
financial difficulties and suggested
that the Federal Government appor
tion certain of its revenues among the
States on a population or over-fixed
The association adopted resolutions
advocating repeal or substantial mod
ification of both the capital gains and
undistributed profits taxes.
Ellsworth C. Alvord, Washington
lawyer and Special Assistant to the
Secretary of the Treasury during the
Hoover administration, raised hopes
of the bankers for early action in Con
gress on the capital gains tax.
“It seems to be generally agreed—
by tax and financial authorities both
within and without the administra
tion—that the present method taxing
capital gains must be scrapped,” he
declared. Alvord said he did not favor
abolition of the tax, but rather
thought it should be retained with
"relatively low rates.”
rrincipie neia fallacious.
With respect to the undivided
profits tax. Alvord said the adminis
tration was still vigorously support
ing the principle of it, “despite its
direct conflict with its stated pur
He said the principle of the tax de
veloped by Rexford G. Tugwell and
other New Deal economists, was not
concerned with revenue raising, but
with preventing corporations from un
wise use of their savings. He ex
pressed full agreement with former
S. E. C. Chairman Joseph P. Ken
nedy. now chairman of the Maritime
Commission, that the tax was based
“on a fallacious economic principle.”
Alvord told the bankers he under
stood the Treasury was prepared to
recomemnd to Congress the abolition
of the Federal Board of Tax Appeals,
and expressed the opinion that such
action would seriously jeopardize the
rights of the taxpayer. He said that
over the last several years, the board
had found for the Government In only
about 30 per cent of the cases heard.
Coalidge’s First Speech Since 1936.
Coolidge. after his adress, told re
porters he had previously expressed
his dissatisfaction with New Deal
financial matter since leaving Wash
ington only in a magazine article and
in a letter to the Jeffersonian Demo
cratic Society. "This is my first public
speech since leaving Washington," he
The five-day annual session of the
Investment Bankers’ Association will
end tomorow with the induction of
the new president, Francis E. Froth
ingham of Coffin & Burr, Inc., Boston.
The association's Committee on Pub
lic Service Securities, headed by
Frothingham. in its annual report re
newed its suggestion of last year that
the administration appoint a non
political commission to review all sides
of the electric power problem.
- ■ ■■ ■■ •—-...
Actor Says He Felled Two Youths
Who Heckled His Wife.
HOLLYWOOD, Calif., Nov. 6 UP).—
John Barrymdre claimed knockdown
victories today over two unidentified
youths who, he said, had made dis
paraging remarks about his actress
wife, Elaine Barry.
When the hecklers spoke as he
and his wife were leaving a drugstore,
Barrymore said he swung two blows,
felling both youths. Then the Barry
mores drove home.
■— ■■ ■ - - - • ■ ■ ■ - •
Colin Cooper, Fainter, Dies.
SANTA BARBARA, Calif., Nov. 6
UP).-—Colin Campbell Cooper, 81, art
ist, noted for his paintings of urban
scenes, died today at his home here.
Cooper was born In Philadelphia.
He lived in Santa Barbara since 1921,
Museums throughout America and
Europe have his canvases.
Farley to Speak in Forum
I J ISM” is the title of an ad
I dress, which will be delivered
A by Chairman James A.
Farley of the Democratic National
Committee in the National Radio
Forum tomorrow at 10:30 p.m. The
National Radio Forum is arranged by
The Washington 8tar and broadcast
over the network of the National
Broadcasting Co. It will be broadcast
locally over Station WMAL.
Mr. Farley, chief political lieutenant
of President Roosevelt, has traveled
widely in the interest* of the Demo
cratic party. He 1* credited with hav
ing constructed a party organisation
which reaches strongly into every
county in every State of the Union,
not excepting Maine and Vermont.
Recently Chairman John Hamilton of
the Republican National Committee
was a speaker in the National Radio
Forum and dealt with the future of
the O. O. P. Mr. Farley will speak for
the party now in control of the Gov
Mr. Farley's talk will be awaited with
interest in political circles in view of
the controversy that has arisen in con
nection with threat* by some Demo
cratic leaders to strike back at mem
bers of Congress who opposed the
President's effort to reorganize the
Supreme Court. The Postmaster Gen
eral has said there would be no re
prisals, but this aseuraaoe has not keen
sufficient to dispel entirely the resent
ment that has developed among the
opposition Senators and led to a serious
split in the party.
While the text of Mr. Farley’s ad
dress has not been dgmlqed, some
political leaders believed* he will make
a further effort to ras|ore harmony
***** fUtef -
Cardinal Receives a Second Roosevelt
————_ _
James Roosevelt, son and secretary of the President, stopped for a visit with Cardinal Mun
delein in Chicago recently before delivering a message from his father to a rally of Catholic Youth
organizations at Loyola University. They were photographed in the chancery of Holy Name
Cathedral. The President visited the cardinal several weeks ago on the occasion of the dedi
cation of a bridge project. _—Copyright, A. P. Wirephoto.
C. !. 0. Leader Favors Use
of Security Reserves in
Housing Plan.
Financing of a low-coat housing and
general building program to relieve
unemployment, by using the social
security reserve fund, was urged yes
terday by Philip Murray. C. I. O. j
leader, before the Advisory Council on
Social Security.
The proposal was made as the coun
cil. of which Murray is a labor mem
ber. completed a two-day study of the
Social Security Act, and adjourned to
meet again December 11-12. At that
time, it will resume the task of consid
ering possible amendments.
Mr. Murray argued that the pro
gram he suggested "is absolutely essen
tial to the welfare of the Nation, and
would be a positive cure for the evils
of unemployment which are aggra
vated today due to the present busi
ness decline.”
Sees Labor Backing.
Mr. Murray said labor would get
behind such a plan and seek legislation
to put it over.
In adjourning until December, the
council created by the Senate Finance
Committee and the Social Security
Board, named a subcommittee which
in the interim will take up with the
Senate group and the board, sugges
tions for amending the Social Security
Representing employers on this sub
committee will be Marion B. Folsom,
treasurer, Eastman Kodak Co., Roch
ester. N. Y.. and Walter D. Fuller,
president of the Curtis Publishing Co.,
Philadelphia; G. M. Bugniazet, secre
tary of the International Brotherhood
| of Electrical Workers, an affiliate of
the American Federation of Labor;
Lee Pressman, chief counsel of the C.
I. O., who will speak for labor, and
Henry Bruere, president of the Bowery
Savings Bank of New- York, and Edwin
E. Witte of the University of Wiscon
sin, who will speak for the public.
Criticism Diacuaaed.
The council devoted the beat part
of the two days here to discussion
of criticism stirred by the old-age
benefits provisions of the act, and
of suggestions made for liberalising
payments and starting them before
the present effective date of January
1, 19*2. The criticism has turned
principally on the huge reserve fund
for benefit payments which Mr. Mur
ray proposes be employed for the
building program. This fund now is
being used as a part of the general
revenues financing the Government.
The sessions just concluded were
executive, and were in the nature of
groundwork for the further study th-.t
is being undertaken. Representatives
of the Social Security Board gave
their views on possible changes, and
at the December meeting, the views
of outside experts will be sought.
Leaving yesterday's session. Gerard
Swope, General Electric president, who
is one of the employer conferees, said
he “hopes we have made progress."
“But that may be only the hope
that springs eternal,” he laughed.
Police Who Held
Father as Son
Died Are Flayed
Miami Chief Indicates
No Action Will Be
Taken, However.
By the Associated Press.
MIAMI. Fla., Nov. The grand
jury recommended “prompt discipli
nary punishment” today for officers re
sponsible for "inhuman conduct” in
holding W. Vance Harrel incommuni
cado while he sought to deliver medi
cine to his dying son. but Police Chief
H. Leslie Quigg said no such action
was planned.
“The evidence shows beyond ques
tion.” the jury report said, “that De
tective Chief L. O. Scarboro was ad
vised and informed of this man's de
sire to communicate with his family
and get aid to the child.”
Harrell, arrested Monday on failure
to pay a 30-cent lunch check, said
he was held incommunicado 19 hours
without charge. Detectives detained
him because the title to his automo
bile was in his brother's name.
Harrell said he told police his son
was ill and needed medicine. He as
serted he overlooked the lunch check
while waiting for a prescription. The
child. Charles Harrell, 3. died of
diphtheria while the father was in
His 310.685 M.P.H. Doein’t Go
Into Records. However, as
Clutch Again Fails.
By the Associated Press.
Nov. 6 —Capt. George E. T. Eyston
today traveled the fastest man has
ever gone in an automobile—310885
miles per hour—but again failed to
break the world's official land speed
I record because of mechanical trouble.
He must work fast on his gigantic
“Thunderbolt” if he is to shatter
Sir Malcolm Campbell’s recognized
301.1292 m.p.h. clip, because winter
is closing in.
On his trip East Eyston hit 310.685
m.p.h. through the measured kilo
meter. His recorded time over the
measured mile was 303.2955. The
"electric eye” timing device stuck at
the end of the mile, official timers
said, adding that the actual speed
through the mile was approximately
310 miles per hour, faster even than
his 309.6 made October 28, but un
recognized because, as was the case
today, he hit trouble on the required
return trip.
"Apparently our repair work on the
left clutch was not thorough enough,”
Eyston said. "This time we'll radically
change it.”
Anti-Strikebreaking1 Law I* Chal
lenged Under Fifth and
Sixth Amendments.
B» tbs Associated Press.
NSW HAVEN, Conn., Nor. A
Federal court judge had under ad
visement today a challenge to the
constitutionality of the Byrnes Act,
under which James H. Rand, jr.,
wealthy industrialist, end Pesrl L.
BergofT, head of a New York strike
breaking agency, were indicted by a
grand jury last April.
Judge Carroll C. Hincks indicated
yesterday he would give a decision
before the scheduled opening of the
trial of Rand, president of Remington
Rand, Inc., and his oo-defendsnt Mon
day on charges they violated the so
called Federal "anti-strikebreaking"
law during a strike at Rand's (Middle
town, Conn.) typewriter factory in
The Government alleges that Rand
and BergofT violated the Byrnes Act
by transporting soma 87 “millwrights”
from New York to Middletown with
the Intent of Interfering with "the
right of peaoeful picketing” by Rand
Counsel for the accused asked dis
missal of the indictments in United
States District Court, arguing that
the law violated the fifth and sixth
amendments to the Constitution by
failing to "deflna the new crime with
Ship, Overdue, I* Safe.
• (A*).—The steamer James E. Me
Alpine, three days overdue here, was
reported in the Upper St. Marys River
today. Apparently the vessel, which
cleared Duluth at S p.m. Monday, was
delayed by rough weather on Lake
Superior- Ik is owned by Brown *
Ca. ot X. T.
Stock Exchange Request for
Probe of Slump Is
By the Associated Press.
. NEW YORK, Nov. 6.—The biggest
‘•bear" hunt in the history of Wall
Street was on tonight in an effort to
learn whether the current stock mar
ket was deliberately manipulated.
It was undertaken by the Twentieth
Century Fund—an independent, en
dowed foundation which has been crit
ical of market practices in the past—
at the request of the stock exchange.
The Investigation will run most of
the winter, with a corps of perhaps
30 expert auditors digging deep into
the records of "short" sales and what
effect these "bear” operations have
on falling prices.
The results will be published, tne
fund promised, "no matter what they
may be.” It added:
"The public, as well as the ex
change and its members, should know
to what degree and in what ways short
selling operators have affected * * •
the drastic decline in security values
during recent months.”
Scientific Sampling Process.
The sharpest economic brains of
the country were asked to direct the
inquiry, which under present plans
will follow a scientific sampling proc
ess. The most active stock issues,
both on the rising and the falling
market, will be studied intensively.
The investigators will find out who
sold what, how much, when and
how much profit he made.
Any hints, dug up in this way, that
bearish speculators forced the market
down will be followed through, wher
ever they may lead.
The operations of the "bears" have
never before been scrutinized on such
a scale. The stock market itself does
not know what effect "short selling”
has. so it asked the fund to find out.
The exchange's request for the in
vestigation was the first such request
the exchange ever made to an out
side, independent agency. The request
covered only "the effects of short sell
ing." The fund’s acceptance, trans
mitted by letter today to Charles R.
Gay, president of the exchange, was
on the same basis.
How "Bears” Trade.
"Short” selling or "bear” trading is
the practice of selling stocks—before
you actually own them—on the gam
Die that the price will iaii. were is
how It works:
You are a speculator. You look
over the stock quotations and pick out
a stock whose price you think is too
high. The quotation is, perhaps. $150;
you think the real value is about $100.
and that sooner or later the price will
drop. So you go to a broker and tell
him “Sell 100 shares of so-and-so
stock short.” The broker sells the
stock for $15,000. You do not have
the stock, but you must deliver it in
two days, so you go to what Wall Street
knows as the “loan crowd” and bor
row the 100 shares. These you de
livei the buyer, and you collect the
$15,000. Then you wait for the stock
to go down. If it goes down to $100,
you take <10,000 of your $15,000 and
buy 100 shares. You gige these back
to the fellow who loaned them to you,
and pocket <5,000 profit. If the stock
goes up Instead of down, you lose
"Short” sellers defend this practice
on the grounds that it balances the
market against margin traders, spec
ulators who buy on the gamble that
prices will rise. Opponents of “short”
selling blame it for deepening mar
ket slumps.
Third la Critically Injured in
Carolina Collision.
RIDOELAND, S. C., Nov. 6 OP).—
William M. Bennett of Plainfield,
N. J„ and his wife were killed and
Mrs. Velma Owens of San Diego,
Calif., was critically lnjurad in an
automobile collision near here today.
Miss Charlotte Owens and Johnnie
Owens were injured.
Bennett, 71, was driving to St.
Petersburg, Fla. The Owens were driv
ing to Philadelphia, where Mrs. Owens’
husband is employed in the Navy Yard.
Biggest Cargo Record Set.
CLEVELAND, Ohio, Nov. 6 UP).—
The Harry Coulby, flagship of the in
terlake fleet, today flew the pennant
for the largest cargo ever transported
on the Great Lakes.
The Coulby, operated by the Pick
ands Mather Co. of Cleveland, carried
17,596 net tons of ore from Alloues,
Wis., to Indiana Harbor, Ind. The
previous record was held by the Le
mojrne of the Canadian Stemship
Tines, with 17,166 tees of wheat.
T "
Montgomery Will Junk Court
in Line With Ruling on
Prince Georges Case.
B» a Staff Correspondent of The Star.
ROCKVILLE, Md., Nov. 6.—Return
of Jurisdiction over speeding cases and
other violations of the motor vehicle
regulations to the local justices of the
peace in Montgomery County was
forecast today after the first of a series
of conferences between State s Attor
ney James H. Pugh and Police Court
Judge Harold C. Smith.
The change In Jurisdiction is the
result of the recent decision by the
Maryland Court of Appeals, which
held the State law creating Police
Courts in Prince Georges County un
constitutional. The laws creating the
offices in Montgomery and Prince
Georges Counties are basically the
A preliminary conference has al
ready been held between Pugh and
Judge Smith, and another is sched
uled for next week. It is expected
that the new set-up will go into effect
soon although no date has been set.
Will Go to Justices.
The effect of the new set-up would
be to have motorists arrested for vio
lations of the motor vehicle laws,
taken Immediately before the nearest
Justice of the peace, instead of being
tried before one of the two police
magistrates created by the State Legis
lature 27 years ago. The two are
Judge Smith, whose Jurisdiction ex
tends over the entire county, and
Judge Herman C. Heffner, whose juris
diction is the 13th election district of
Maryland, the eastern end of the
county with headquarters at Takoma
Pugh said that the present pro
cedure will be followed until revi
sions are arranged for, probably with
in the next few days.
The present system in Montgomery
County gives exclusive Jurisdiction in
all criminal cases, and civil cases
amounting to $100 or less, to the po
lice Justices. In Prince Georges Coun
ty the limit In civil cases was $250,
but otherwise the laws were similar.
Law Held Unconstitutional.
In holding the Prince Georges Coun
ty law unconstitutional, the Court of
Appeals held that, a general law' had
already given Jurisdiction in such
cases to the nearest justice of the
peace, and that therefore the special
law for Prince Georges County was a
violation of the general law; and
also that the law itself was a vio
lation of the Maryland State con
stitution, which prohibits the Legis
lature from setting up courts not pro
vided for in the constitution.
Heretofore Justices of the peace
have had jurisdiction only to issue
warrants and summonses and accept
Just what the status of the police
justices will be under the new set-up
was problematical. Both Judge Smith
and Judge Heffner are Justices of the
peace and were designated by Gov.
Harry W. Nice as police magistrates
in his list of so-called green bag
Under the new system they will
have no more power than any other
justice of the peace in the county to
try cases involving violation of the
criminal code, traffic violations or
civil cases. Just what their statue
will be is to be settled in the eon
ference next w».lr
Movie Will Illustrate Lecture of
Ian Forbes Wednesday
Ian Forbes, recreation economist of
the National Park Service, will outline
the results of years of archeological
and anthropological research at Mound
State Park, Ala., in a lecture at 8
p.m. Wednesday in the new Interior
Department Auditorium. The public
is invited.
A two-reel movie entitled “Temples
and Peace" will be shown to illustrate
the lecture, the third of a fall series.
Another movie on the “Pleasures at
Griffith Park." at Los Angeles, will be
shown and Mr. Forbes will discuss the
cultural program of Oglebay Park, at
Wheeling, W. Va., and other centers.
World Again Tottering on Edge of
Conflict, He Tells Canadians.
OTTAWA, Nov. 8 James W.
Gerard, United States war-time Am
bassador to Germany, told the Cana
dian Club today the world again is
tottering on the edge of a great con
“The United States is against war,"
he said, "against alliances, against be
coming involved in the muddled af
fairs of Europe. We are arming to
defend ourselves, but the European
nations are preparing for war.”
Prime Minister W. L. MacKenzic
King was a guest at the meeting.
Factory Foreman Stricken as He
Sees Touchdown Bun.
SHARON, Pa., Nov. 6 (>P).—Jerry
W. Brown, 55-year-old local foreman
of the Westinghouse Electric Si Manu
facturing Co., died suddenly today
while watching the football game be
tween Sharon and Parrell High
Brown was stricken as Bobby Koran,
Sharon halfback, ran 30 yards for
the first touchdown. Sharon won the
game, 30 to 0.
ANNAPOLIS, Md.. Nov. « (*>)_
Btringfellow Barr, president of St.
John’s College, announced to home
coming alumni tonight Dr. Thomas
Parran, Jr., Surgeon General of the
United States, had accepted mem
bership on the Board of Visitors and
Governors of the institution.
Dr. Parran wae graduated from
St. John’s In 1911.
ROCKVILLE, Md.. Nov. 6 (Special).
—Charging he was deserted In August,
1935, Frank Wood of Washington has
filed suit In the Circuit Court for an
absolute divorce from Lillie Wood of
River road, this county. He is repre
sented by Attorney Kenneth Lyddane
of Rockville.
The petition states that the couple
was married in Washington in 1*97
and have two grown children.
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