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Evening star. [volume] (Washington, D.C.) 1854-1972, December 28, 1937, Image 1

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(0 8. Weather Bureau Forecast.)
Mostly cloudy tonight, possibly followed
by rain tomorrow; slightly colder tomor
row; lowest temperature tonight troout 34;
moderate winds, mostly northerly. Tem
peratures today—Highest, 45, at 11:50
a.m.; lowest, 35, at 3 a.m.; 44 at 4 p.m.
Closing New York Markets, Page 12
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
G£fU VTT \ T? V. •_> 4 OHO Entered as second clast matter
Quill 1 SLi Alt. JN O. Ol,ZUy. p0St office. Wathlnaton. D. C.
<**) Moans Associated Press. TWO CENTS.
U. S. Gunboat Sacramento
Is Due Thursday at
Deal Between Nipponese and Gen.
Han Fu-Chu Hinted After
Fall of Tsinan.
After conquering Shanghai and
Yangtze Valley as far west as Nan
king Japanese legions have turned
to clean up remaining areas in
north still under Chinese control.
Drive launched in Shantung Prov
ince resulted in capture of Tsinan,
provincial capital, while navy de
clared blockade of Shantung coast.
Three American warships sped to
Shantung to protect. Americans
the Associated Press.
SHANGHAI, Dec. 28.—The United
States gunboat Sacramento steamed
out of Tsingtao Harbor today, carrying
American refugees from that rich
Shantung Province seaport isolated by
advancing Japanese armies.
Dispatches from the threatened city
aaid 280 Americans had evacuated,
many of them on the Sacramento,
which was due in Shanghai, some 400
miles to the south, on Thursday.
Earlier this week Tsingtao advices
were that there were 300 Americans
there, with the Sacramento, the de
stroyer Pope and the cruiser Marble
head standing by to aid them.
(Reports from Tsingtao said
Americans were leaving on the ad
vice of the United States Consu
late. There was strict Chinese
censorship on all outgoing mes
sages. Although close to the scene
of Shantung Province fighting.
Tsingtao received no news of it ex
cept from Chinese, who reported
that all bridges on the railway to
the interior had been destroyed.)
May "Repudiate” Government.
Gen. Iwane Matsui, commander of
Nippon forces in the Shanghai-Nan
king area, told Japanese newspaper
men today that "Japan may repudiate
the national government of China" if
China continues “anti-Japanese pol- |
"There is no hurry about future j
military operations so soon after cap- !
ture of Nanking." the general said. \
“Our troops, after more than four i
months of hostilities need a rest. We
simultaneously will give Chinese time .
to reconsider, but if they persist in ;
anti-Japanese policies we will bei
forced to act.”
Fall of Tsingtao to Japanese swarm- i
ing southward Into Shantung Prov- :
lnce seemed Imminent. Tsinan, pro- 1
vincial capital 200 miles to the west,
was in Japanese hands. Other Jap
anese columns raised the Rising Sun
flag over Weihsien, railway point less
than 100 miles west of Tsingtao.
Provincial forces of Shantung War
lord Han Fu-chu took up positions on
nearby White Horse Mountain after
their feeble resistance at Tsinan. In .
Shanghai observer' raised the ques
tion of whether Gen. Han had made
a deal with the Japanese.
Chinese here were quick to point
out that only provincial Chinese
troops were defeated at Tsinan. They !
said strong central army forces oc- j
cupied positions at Taian, 32 miles to
the south, and Lincheng. another 85
miles along the route to Kiangsu
The United State gunboat Oahu
sailed up the Yangtze River to start
salvage operations on her tragic sister
ship, the Panay, sunk by Japanese
December 12.
Two United States Consuls, John M.
Allison and James Espy, and Code
Clerk A. A. McFayden were on board,
bound for Nanking to reopen the
United States Embassy as soon as
conditions permit. They were expect
ed to proceed to Hoshien, near the
scene of the Panay attack, and await
instructions from Washington, since
Japan had asked foreign nations to
withhold reopening of Nanking diplo
matic quarters temporarily.
New Shanghai Crisis Looms.
While Nippon’s warriors invading
■acred Shantung Province apparently
were bent on carrying out the Japa
nese threat of drastic punitive action
for Chinese destruction of $100,000,000
worth of Japanese property at Tsing
tao, a possibility of further friction
between civilian officials and Japa
nese military authorities arose at
The spokesman of the Japanese
Army, which yesterday proclaimed a
decree making Americans and other
foreigners subject to military law
death penalty for crimes againstj
Japan's armed forces, said the army
W'as not satisfied with the municipal
council’s efforts to rid the Interna
tional Settlement of arms caches.
He declared that definite, effective
action must be taken before Shan
ghai could return to normalcy.
Bands of Chinese Army stragglers
■till were roving about the countryside,
the spokesman said, delaying reopening
of Japanese occupied areas surround
ing the Settlement.
For the second time in as many days
a grenade was thrown at a Soochow
Creek tugboat laden with Japanese
troops. There were no casualties in
the attack near Chekiang Road Bridge.
One Chinese suspect was arrested.
Rising Sun warplanes, meanwhile,
ranged over Central and Southern
The Japanese Army spokesman an
nounced that Japanese troops would
stage a formal triumphal entry Into
Tsinan this afternoon.
Portuguese Isle Shelled.
HONG KONG, Dec. 28 G4>).—Re
ports from Macao, Portuguese colony
off the South China coast, said today
a Japanese cruiser had shelled Wong
kam Island, over which Portugal <
claims jurisdiction. Several huts were !
set on fire.
“5 and 10” Chain
Ceases Buying
Japanese Goods
Bj the Associated Press.
NEW YORK. Dec. 28.—The P. W.
Woolworth chain of flve-and-ten-cent
stores has ceased, for the present at
least, adding to its stock of Japanese
made goods, T. J. Mullin, assistant to
the president, said today.
“We haven’t purchased any goods in
Japan in months,” he said, adding
the action could be construed as re
sulting from the Par Eastern war.
Mr. Mullin said the chain had but a
small stock of Japanese goods now,
bought and paid for months before the
outbreak of the Japanese-Chinese war.
“We have bought from Japan only
merchandise that could not be found
readily in the United States,” Mr.
Mullin said, “and these purchases
represented not more than 1 per cent
of our inventory.”
Hirota Presents Reply to
English Protest in Lady
bird Ca§e.
B» the Associated Press.
TOKIO, Dec. 28 —Foreign Minister
Koki Hirota tonight delivered to
British Ambassador Sir Robert Leslie
Craigie Japan's reply to a protest
against Japanese attack on the British
gunboat Ladybird.
The text of the note was not made
public, but the military section of
imperial headquarters issued a state
ment saying the attack was a "mis
take" and expressing regrets. One
sailor was killed in the attack.
Military's Explanation.
The military's explanation follows:
On December 11 a Japanese detach
ment, anxious to aid in the capture of
Nanking, crossed the Yangtze River
north of Taiping and advanced toward
Pukow. Because of a previous warning
they thought foreign nationals had
evacuated the zone of fighting.
Observing more than 10 large
steamers fleeing up-river, the Japanese ;
high commander believed them to be j
retreating enemy forces and ordered j
the artillery to fire on them: but the i
shells did not reach the ships, which !
escaped. Thereupon he ordered
Japanese units at Wuhu to attack
Fired on Four Steamers.
A detachment after a forced night j
march opened fire on four large!
steamers. Observing the steamers
sending up dense smoke, the Japanese
decided they were trying to hide in
a smoke screen. Japanese shells
struck two steamers, the others es
caped. One vessel advanced toward
the Japanese forces, whereupon a
British flag was detected and an order
given to cease firing. When it reached
the w harf it proved to be the Ladybird.
The same night through a mistake
one shell was fired on a ship hoisting
the British flag, but did not strike it.
This proved to be the gunboat Bee.
Rear Admiral Holt, the British consul
and several officers landed. The
Japanese commander explained it was ,
a mistake. He said it was his duty to '
sink all enemy vessels and that he
did not know the ships were British.
The Japanese note was given to
Ambassador Craigie after Hirota re
ported details of the government's in
vestigation to the Emperor.
Cameraman Will Fly East With
Pictures of Bombing to Be
Shown Publicly.
By the Associated Press.
ALAMEDA, Calif., Dec. 28—The
China Clipper, bearing motion picture
films of the Panay bombing, arrived
here at 9:55 a.m. (12:55 p.m. E. S. T.)
today from the Orient.
The Clipper carried Norman Alley
and his 4,500-foot film of the bombing
in the Yangtze River, above Nariking.
A chartered plane was ready to fly
the film East, to be released for public
showing. Alley, whose wife and chil
dren came here from Hollywood to
;reet him, expected to fly East with
the films.
The camerman stood on the deck of
the little American vessel as it was
under fire. He radioed his employers
that the pictures w ouid show the whole
story of the episode, starting with the
bombing of Nanking, the flight of
refugees to a haven aboard the Panay,
the bombing planes power diving on
the gunboat and the rescue of the
Stocks Slump
$1 to $4 or More
In Fast Selling
Ticker Tape Gets Be
hind as Steel and Mo
tor Shares Tumble.
Bt me Associated Press.
NEW YORK, Dec. 28.—Heavy sell
ing developed on the stock exchange
shortly after the noon hour today,
sending many leading Issues $1 to $4
or more lower.
The ticker tape was several minutes
Behind as steel and automobile shares
bumbled downward in the wake of
Wall Street worries over the anti-trust
news from Washington and other un
favorable developments in business.
United States Steel, Bethlehem,
Chrysler, General Motors, Westing
house, Du Pont, General Electric, In
ternational Harvester, Montgomery
Ward, Sears-Roebuck, United States
Sypsum. International Nickel, Ana
conda. American Tobacco, Kennecott
Copper, Eastman Kodak and Loew's
were in the front in the decline.
An early-morning selling wave
Brought heavy volume which dwindled
luring an attempted comeback. Later,
towever, volume was at its heaviest.
Some issues reached new 1937 lows.
30.000 JANUARY 1;
Plants to Operate on Three
Day-Week Basis, Knud
sen Declares.
Adjustment Caused by Necessity
to Cut Sown Large Stocks,
Official States.
B, the Associated Press.
DETROIT, Dec. 28.—William 8.
Knudsen, president of General Motors
Corp., announced today that employ
ment in General Motors plants
throughout the United States would
be reduced by approximately 30,000
employes, effective January 1.
The reduction in Michigan, he said,
will approximate 20,000 employes.
Mr. Knudsen said "the recession in
business makes a readjustment of the
working force necessary."
He explained that the General
Motors plants would operate on a
three-day-a-week basis, each oper
ating a.total of 24 hours a week. That
will b# the working schedule for those
employes who are retained.
“The corporation has kept its men
employed up to very recently by re
ducing the hours given per man in
order to help the general economic
situation in the communities where
plants are located,” he said. “The
inventories, both in the field and at
the plants, accumulated through this
policy have, however, reached a point
where adjustment must take place as
it is impossible to carry larger stocks
than what the demand makes pos
•Therefore, on or about January 1,
the working foree will be reduced in
order that the people who will con
tinue at work, even on reduced hours,
will have reasonable income for all
their needs. This will necessarily af
fect a considerable number of men
in all locations, but there will still
remain on General Motors’ pay roll
in the United States more than
205.000 men, and the monthly pay roll
will exceed *24,000.000.
"The corporation regrets the circum
stances which make this necessary,
but sincerely hopes the condition will
be temporary and that spring will
see the return of normal employment.”
Knudsen said that reduction totals
for General Motors plants outside of
Michigan were not yet available and
that local managers would compile the
He said no reductions had been or
dered in Canadian General Motors
plants because "business Is normal
In an interview, Mr. Knudsen said:
"The used-car market is stopped, and
when that is stopped our employment
stops." I
Asked if a revision of prices on new
motor cars might ease the market
problem, he said: “A cheaper market
will do no good if we can't sell used 1
cars. Purchasing power is down— ;
there is no question about it.”
Asked for his explanation of the
general business recession, he said: >
“The price level rose too fast in the ■
spring of 1937 and we just couldn’t
digest it.”
Cloudy skies and probable rain and ,
colder weather tomorrow were fore- j
cast today as most of Western Mary- \
land lay under one of the heaviest1
snows of the season.
The minimum temperature tonight
is expected to be several points above
freezing. The mercury went down to
34 degree/ early today and rose grad
ually under overcast skies.
More than two inches of snow fell
in a few hours at Cumberland late
yesterday, hampering traffic and mak
ing driving in the mountainous
regions dangerous.
Between 9 and 11 p.m. yesterday
light snow flurries mixed with rain
swept Washington and vicinity, but
the snow melted almost as rapidly as
It fell. The Weather Bureau recorded
about a quarter of an inch of pre
cipitation in the last 24 hours.
Summary of Today's Star
Page. Page.
Amusements B-16 Radio -.B-ll
Comics ..B-14-15 Short Story -A-13
Editorials _A-8 Society -B-3
Finance _A-ll Sports_A-14-15
Lost & Found B-ll Woman's Pg. B-10
Americans flee Tsingtao, cut oil by
Japanese Army. Page A-l
Insurgents drive to release 6,000 from
Teruel trap. Page A-l
Reich gives Dodds a chilly fare
well. Page A-l
3helling of Britons was mistake, says
Tokio. Page A-l
Operation fatal to Maurice Ravel,
famed French composer. Page A-5
President expected to deliver annual
message in person. Page A-l
Tests point to new approach to cancer
treatment problem. Page A-l
Kellogg eulogized in buriel in Cathed
ral here. Page A-S
Invocation of Neutrality Act is
Pushed. Page A-4
Jackson believed slated for “trust
buster” role. Page A-3
Slum clearance, farm tenancy pro
grams begin soon. Page B-6
Utilities Commission discounts transit
company report. Page B-l
District's legislative program prepared
for Congress. Page B-l
Policeman Gorman dies of bullet
wound. Page B-l
L>. P. Steuart elected grand master of
D. C. Masons. Page A-l
District traffic control plan offered by
Randolph. Page B-l
Eleven hurt as wet streets add to
traffic hazards. Page B-l
’Bama lacks broken field runner for
Bowl tUt. Page A-14
Coach Harman out at Penn; Many in
line for job. Page A-14
College tutors frown on gridiron rules
changes. Page A-14
Pine ring future seen for Abrams, vic
tor over Mamakos. Page A-14
Experts, dubs start vying in Star pin
tourney. Page A-15
Hollywood open event producing keen
golf. Page A-15
Editorials. Page A-«
This and That. Page A-8
Answers to Questions. Page A-8
Stars, Men and Atoms. Page A-8
Political Mill. Page A-8
David Lawrence. Page A-9
The Capital Parade. Page A-9
Mark Sullivan. Page A-9
Jay Pranklin. Page A-9
Delia Pynchon. Page A-9
Bedtime Story., Page A-7
Nature’s Children. . Page A-7
City News in Brief. Page A-7
Shipping News. Page B-9
Dorothy Dix. Page B-19
Betsy CasweU. Page B-19
Vital Statistics. Page B-ll
Cross-word Pussle. Page B-14
Letter-Out Page B-14
Winning Contract Page B-I5
_The Sinking of the Panay—Exclusive Wirephoto
---*-—- • *
I' - ✓
Her decks awash, the U. S. S. gunboat Panay is settling into the Yangtze River, her hull pierced in
a °zei? Pj“* °y bombs dropped by Japanese airmen. This first photograph of the incident which caused
the United States Government more concern than anything since the World War, was rushed to San
Francisco by the China Clipper. More photographs of the attack on the Panay will appear in the 5:30
and Night Final editions of The Star.
Mother’s Gunshot Death Is
Ruled Accident by
Ohio Coroner.
the Associated Frees
WARREN, Ohio, Dec. 28-—The gun
shot death of Mrs. Cordelia Campbell
was ruled an accident today, and her
28-year-old daughter Lotilse was freed
from the Trumbull County Jail, where
she had been detained without charge
since Saturday.
The young woman was whisked
away from the Jail by her attorney
under guard of Sheriff Roy Hardman,
who sought to bar the curious from
the scene. She was driven to a ceme
tery for brief private funeral services
and the burial of her mother.
Mrs. Campbell. 55. daughter-in-law
of a pioneer Ohio steel master. James
A. Campbell, died Sunday of internal
hemorrhages induced by an abdominal
wound, despite a blood transfusion
from her daughter.
The verdict of the coroner's inquest
“All the witnesses in connection
with the fatal shooting of Mrs. Cor
delia Campbell were thoroughly ex
amined by Coroner J. C. Henshaw, and
they all stated that the shooting was
"Also, a statement was made by
Mrs. Campbell before she expired that
it was an accident.”
The order for the release of the
young woman gave her the opportu
nity to attend private funeral services
ror her mother at a Youngstown fu
neral home.
A close guard had been placed over
the blond, handsome girl last night
after her counsel said she “wanted
to die.”
Mrs. Roosevelt Leaves Seattle
After Visiting Daughter.
SEATTLE. Dec. 28 UP).—Mrs.
Eleanor Roosevelt sped eastward to
day aboard a train after spending
Christmas* with her two grandchildren
and daughter, Mrs. Anna Roosevelt
200 D. C. Jobs
On Emergency
Council Saved
The National Emergency Council,
slated to go out of existence on De
cember 31, is to be extended for an
other six months, it was disclosed to
day. This saves the jobs of more than
200 employes.
President Roosevelt will soon issue
an executive order giving a new lease
on life to this agency, which in the
last four years has served as a clear
ing house for Government informa
tion, as well as a co-ordinating agency
for emergency activities under the
New Deal.
Some months ago the President is
sued an executive order discontinuing
the National Emergency Council as
such on December 31 of this year,
but since then has decided to extend
this agency until June 30 next. Mr.
Roosevelt’s original decision to wipe
out the agency on December 31 is
understood to have bi en prompted by
his economy program. His original
idea was to transfer Eugene Leggett,
executive officer of the National Emer
gency Council, and a small part of the
personnel to the Budget Bureau, where
, the co-ordinating work of this agency
would be carried on on a reduced scale.
German Chief of Protocol
Absent From Party for
U. S. Envoy.
By the Associated Press.
BERLIN. Dec. 28.—William E.
Dodd, resigning United States Am
bassador, departed for the .United
States today with Mrs. Dodd—more
unceremoniously than any previously '
departing American envoy.
The chill of the farewell was in
keeping with the relations between
the Ambassador and the German gov
ernment. especially strained since Mr.
Dodd objected to American official
representation at the Nazi party con
gress last September at Nuremberg.
With only the male personne". of the
Embassy and consulate present la
the Dodd apartment to say good-by,
the couple slipped quietly into a car
and drove to Hamburg to board the
liner Washington sailing tomorrow.
Not even the chief of protocol of
the German foreign office was pres
ent at the Dodds’ farewell, although
customarily he receives and sees off
the heads of diplomatic missions.
Mr. Dodd sent word yesterday that
he did not know exactly when he
would leave and suggested the foreign
office should not bother.
Nor was Mr. Dodd received by
Chancellor Hitler before departure, as
Is customary in the case of most
Even the usual farewell luncheon
or dinner given by Foreign Minister
Konstantin von Neurath did not 1
materialize. 1
Senator Henry Lemery Tells Col
leagues of Rumor and Expresses i
Hope for Denial.
By the Associated Press. (
PARIS, Dec. 28.—Senator Henry i
Lemery told the French Senate today •
there had been “rumors” a French
division had landed on the Island of ,
Minorca, last stronghold of the Span- i
lsh government in the Balearic Islands 1
of the Mediterranean. i
He hoped, Lemery said, “to have a j
denial from the government.” 1
Reports of Italian forces based on
Mallorca and Ibiza, Balearic Islands i
controlled by Spanish insurgents, have <
greatly perturbed French political i
experts the past several months. i
Prince Georges Urges State
Build Routes Around
Peace Cross.
Br a Staff Correspondent o! The Star.
—In an effort to relieve traffic con
gestion on holidays and week ends at
the Bladensburg Peace Cross, the
Prince Georges County Commissioners
today asked the State Roads Commis
sion to build two roads from the De
fense highway to the Baltimore bou
Commissioner Joseph D. Blandford
said the board left the selection of the
roads to be built largely to the discre
tion of the State commission. It
specified, however, .hat one lead into
Northwest Washington and the other
into the Northeast section of the city.
It was suggested that the route into
Northwest Washington follow Finn’s
lane and Jefferson avenue extended
into Riverdale, thence via Madison
avenue to the Baltimore boulevard or
University drive. In general the board
asked ypat the roads branch from
the Defense highway a mile or more
from the Peace Cross. Mr. Blandford
said the proposed extension of New
Ifork avenue also may be considered
In conjunction with selection of the
proper route to link Northeast Wash
ington and the Defense highway. He
asserted the board had stated its views
to District Engineer Joseph Chaney of
the State Roads Commission.
"It is our contention that the roads
are needed to care for an ever-increas
ing volume of through traffic originat
ing in Washington and elsewhere out
side the county and therefore should
je built by the State. County funds
are needed for roads used more by
local people,” Mr. Blandford stated.
Papers Boost Prices.
TAMPA. Fla., Dec. 28 (/P).—Both of
rampa's daily newspapers today an
nounced increases in subscription
The Times, published daily except
Sunday, advanced its prices from 15
;o 18 cents a week, and the Tribune,
nublished seven days a week, from 20
a 25 cents a week.
3 Students Freeze to Death.
OSAKA, Japan, Dec. 28 UP).—Three
:ollege students were found frozen to
leath today and eight others were
missing in .the "Japanese Alp6” where
;hey had gone skiing.
4.47-lnch Rain and 3-Foot
Snow Cripple Communi
cation in Northwest.
By tne Associated Press
SEATTLE, Dec. 28—Gales, ice.
snow, rain and landslides crippled
travel and communication as the
year's worst and most widespread
storm lashed the Pacific Northwest
Traffic was halted on Portland.
Oreg., streets as 4.47 inches of rain—
heaviest fall since 1911—was record
ed in 24 hours. A small tugboat, the
Ben Hur, overturned and sank in
Portland Harbor while trying to move
a heavy barge. Two men aboard were
35-Inch Snowfall.
Pioneer residents of the Idaho Pan
handle said the two-day snowstorm
i was the worst in their memories. The
35-inch snowfall at Wallace closed
several mines. The fall measured 96
inches at Lookout Summit on the
Idaho-Montana Divide.
A small girl, Jennie Carle, suffered
a back injury, an ankle fracture and
Internal injuries at Wallace. Idaho,
when a porch roof collapsed, burying
her in snow half an hour.
Risim, waters of the Willamette
River threatened 45 families at Grand
Island and Wheatland, Oreg., as the
Wheatland Dam weakened. Water
piled up behind the dam and cut
through a county road.
A southeast gale which struck the
Oregon coast Sunday reached a ve
locity of 65 to 75 miles an hour at
Astoria last night, a naval communi
cations reserve dispatch received here
Two vessels lay outside the Colum
bia River mouth, but Coast Guard
officials said no distress calls had been
New Landslides.
New slides halted traffic on the
Spokane, Portland & Seattle Rail
way at Broadwood and piled addi
tional debris on the lower Columbia
RiVer highway at Westport, closed by
slides Sunday.
Two trainmen Were killed when an
S. P. & S. freight plowed into a slide
and overturned early Monday.
Short-wave radio messages front
Tillamook, Oreg.. said the Trash,
Hitches and Wilson Rivers had over
flowed, bursting dikes, flooding farm
lands and washing live stock out to
A log jam 30 feet high was reported
to have dammed the Wilson River
and a highway construction camp
with 400 men was reported marooned.
Tests Point to New Approach
In Cancer Treatment Problem
Scientist Describes Results of Injections
of Small Quantities of Certain Bac
teria Into Blood Stream.
Staff Correspondent of The Star.
INDIANAPOLIS, Dec. 28.—Experi
nents which may provide an entirely
lew approach to the problem of can
*r, and possibly other human dis
uses. were reported to the association
oday by Dr. M. W. Emmel of the Uni
versity of Florida.
There is a rare, and almost ln
■vitably fatal, disease of men and ani
nals known as leukemia. It is some
imes called “cancer of the blood,”
ilnoe its chief manifestation is in the
ncrease of small, immature and ap
>arently unregulated white blood cells.
Dr. Emmel has been able to pro
luce it experimentally, he reported to
lay, by injection in the veins of
ihlckens, dogs, goats, monkeys, hogs,
beep and mice of small quantities of
the bacteria which produce typhoid
and paratyphoid fever. The phago
cytes, the soldier blood cells, rush to
meet the invaders and literally swal
low them. But the bacteria are as
dangerous prisoners Inside their cap
tors as was Jonah in the whale's stom
ach. They secrete poisonous sub
stances as they perish. The phago
cytes become filled with these toxins
which are let out into the blood
Cause of Death.
It is these poisons, Dr. Emmel said,
which seem to cause the leukemia.
Death comes from “complete intoxica
tion of the body fj-om the host’s own
tissues.” But, through some mechan
ism which is still not clear, once this
(See SCIENCE, Page A-4.)
Expected to Tell Congress
Budget Can Be Balanced
if Relief Is Curbed.
Confers With Director Fechner or
Proposed Cut of $123,000,000
in C. C. C. Funds.
New Deal budgets annually have
been out of balance with appro
priations for various relief pro
grams being major items on deficit
side. Making frequent promises to
bring expenditures into line with
income. President Roosevelt this
fall found new business decline
adding strength to arguments of
free spenders. In hopes of putting
relief needs on more scientific basis,
special Senate committee starts in
quiry next week.
President Roosevelt's annual mes
sage to Congress on the state of the
Nation will be read to that body when
it assembles in regular session next
Monday, probably by the President in
person, but his budget message will
not be delivered until two or three
days later.
This was learned at the White
House today, but it was pointed out
the President has not definitely an
nounced he would make a persona)
appearance on Capitol Hill.
Usually well-informed officials said
today President Roosevelt would tel)
Congress that the 1938-39 budget can
be balanced if relief expenditures car
be held within bounds.
He is at work now drafting his mes
sage, as well as completing his budget
estimates for the fiscal year begin
ning July 1. It was said at the White
House that the President requires two
or three long sessions with Daniel W.
Bell, Acting Director of the Budget,
before the figures are entirely com
Plans Enlarged Navy.
Among the important items engag
ing the President's special attention
in the budget preparation right now
are the estimates for the planned en
larged Navy program and the slashing
of certain New Deal activities in the
interest of economy.
Principal among these cuts is the
one the President is planning for the
Civilian Conservation Corps. The
budget is understood to slash the oost
of this activity about $123,000,000, or
about 35 per cent of the total appro
priation for the current year. This
would mean cutting out about 404 of
the C. C C. camps, as well as a large
reduction in the camp personnel. To
work out the details of this, the Presi
dent conferred today with Robert
Pechner, director of the C. C. C.
New Warcraft Planned.
The administration has given indi
I cations that it is planning a liberal
j increase in the appropriation for the
I Navy which will be sufficient to make
! possible the construction of two new
| super dreadnaughts. as well as build
ing of some minor warcraft, including
two cruisers, eight destroyers and a
squadron of submarines, and possibly
a new aircraft carrier.
President Roosevelt is known to be
convinced that the Navy needs build
ing up and has indicated he favors a
substantial building program. In
fact, his ideas have prompted refer
ences to his program along the lines
that he is figuring on the largest
peace-time naval program in the his
tory of the Government.
The President has had frequent
conferences with high-ranking naval
officials. In this connection, he con
ferred for a long time yesterday with
Charles Edison, Assistant Secretary of
the Navy, who Is personally handling
the Navy building program.
Confers With Baruch.
The President held a long informal
conference today with his old friend.
Bernard Baruch, New York financier.
The impression is that the President
sought the views of Mr. Baruch on
various subjects which he will treat
in his message to Congress.
The President also saw John Blg
gers, who has been taking the unem
ployment census. Mr. Biggers is un
derstood to have discussed terms of
this census with the President today
The complete report on this census
will be delivered to Congress when it
assembles next Monday.
Deficit Estimate Not Expected.
The budget which the President will
send to Capitol Hill January 4 is not
expected to contain a definite reliel
(See CONGRESS, Page A-3.)
Pennsylvania Federation Head
Doesn't Know What to Do About
“Expelling” C. I. 0.
B» the Associated Press.
HARRISBURG. Pa.. Dec. 38.—John
Phillips, self-styled “harmony man”
in his position as president of the
State Federation of Labor, today faced
the problem of bringing together the
warring factions of the. A. F. of L.
and the C. I. O. in a showdown in
Pennsylvania’s labor situation.
The A. F. of L. in Pennsylvania—
the Executive Council of the State
Federation—gathered to consider the
demand of the national president*
William Green, who stated that all
C. I. o. unions were to be expelled by
•January 1.
Phillips had little to say about the
situation, which found his organisa
tion in a peculiar position because 75
per cent of the State Federation is
composed of C. I. O. unions.
“I’m only the harmony man in this
situation,” he said. “I don't know
what the Executive Council will de
cide to do.”

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