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Evening star. [volume] (Washington, D.C.) 1854-1972, January 18, 1938, Image 1

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WEATHER.
(U. 8. Weather Bureau Forecast.)
Cloudy tonight and tomorrow; colder
tonight with lowest temperature about 22
degrees; moderate northeast winds. Tem
peratures today—Highest, 35, at midnight;
lowest, 28, at 3 p.m.
Pull report on page A-2.
Closing New York Markets, Page 16
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
86th YEAR. No. WASHINGTON, D. C„ TUESDAY, JANUARY 18, 1938-THIRTY-SIX PAGES. »»» «» — Pf^ THREE CENTS.=
21 BELIEVED DEAD,
OTHERS MISSING
Six Bodies Taken From
Ruins of Catholic Institu
tion Near Montreal.
’ MANY ARE TREATED
IN NEARBY FARMHOUSES
22 Are Carried to Hosptial in
Night Clothes Through Sub
Zero Weather.
ST. HYANCINTHE, Quebec, Jan. 18
(Canadian Press).—Twenty-one persons
were feared to have died early today in
a fire that trapped more than 100
asleep in the College of the Sacred
Heart here.
The only victim identified was
Brother Jean Baptiste, 64, who leaped
Trom one of the school’s upper windows
and died as he reached a hospital.
Police Chief A. Bourgeois said six
bodies had been reported taken from
the still-blazing building and “about
25, maybe 30” persons still were miss
ing.
The editor of the local newspaper
said about 20 persons perished inside
the school besides the brother.
21 In St. Charles Hospital.
Five brothers and 16 students were
In St. Charles Hospital. Four of them
, were reported in dangerous condition
from injuries suffered in jumping
from the four-story building or from
exposure.
Most of the college's occupants had
been quartered in big dormitories on
the fourth floor.
Crumbling wreckage of the 37-year
old brick structure still was blazing
nearly 10 hours after the fire was dis
covered.
A check-up was being made, but
officials had been unable to account
* for many of the 80 boarding students
and 31 teaching brothers who were
trapped in their beds by the flames.
Some had scattered to homes for
shelter in below-zero weather after
escaping, virtually all in scant night
clothing, through windows and down
crowded fire escapes.
The fire's origin was not known.
Apparently it had been burning at
least 30 minutes when a passerby
saw the flames.
Deep Snow a Handicap.
The occupants were warned imme
* rtiately and an alarm spread in the
town, about 35 miles east of Montreal.
Deep snow handicapped fire trucks
and ambulances in rt&ching the scene.
As the thinly clad students and
teachers streamed from the burning
building, firemen and townsfolk gave
what aid they could. Many lent over
coats and blankets to the shivering
victims.
The flames swept quickly through
* the wooden interior of the institution
and blazed high through the roof,
which collapsed and weakened the
dormitory floor.
No survivor was able to say whether
any one was trapped on the dormi
tory floor when the roof caved in,
shooting sparks and burning timbers
across the grounds.
Successively one floor after an
other, from the top down, followed the
roof in collapse.
, A few hours after the fire's dis
covery, the roof and four floors were
but a heap of burning wreckage on
the basement floor.
Unable to Search Ruins.
At noon firemen still were pouring
water from 15 hose lines into the blaz
ing wreckage, but made little progress
In extinguishing it. They had not
been able to get into the building to
begin the search for bodies and said
it “might be hours” before they could.
In the hospital, near the school, boys
t huddled three and four in a room as
doctors went about setting broken
bones, treating bums and bandaging
other injuries. Many victims had
broken arms or legs. Some faces were
so heavily bandaged only the eyes
showed.
Robert Dionne, 18, of Drummond
ville, Quebec, with a broken leg in
splints, told how he had jumped from
the fourth story. He said he was
awakened by some one calling “Fire!”
"I thought the roof had fallen in,”
he said. “Everybody seemed to be
running around. I followed some of
them. Then I ran to the window.”
STOLEN AUTOMOBILE
PROBE LAUNCHED
Boston Police Officer Says Some
Were in Possession of
Public Officials. '•
V
Br the Associated Press.
BOSTON, Jan. 18.—Sergt. Thomas
F. McLaughlin of the Boston police,
returning today after an investigation
that led to the recovery of 45 stolen
automobiles in New Hampshire, Ver
mont and New York, announced some
had been found in the possession of
New Hampshire and Vermont public
officials.
> Some of the officials, McLaughlin
said, had “dealt” in automobiles stolen
in Boston.
McLaughlin, who is head of the Bos
ton police automobile squad, declined
to name any of the officials Involved,
because he said he had been informed
the Federal Bureau of Investigation
had begun inquiries, acting under the
Federal statute governing interstate
transportation of stolen automobiles.
McLaughlin said he had received
.“very little co-operation" from some
of the officials in the area covered.
Yon Blomberg’s Mother Dies.
BERLIN, Jan. 18 (A*).—Emma von
Blomberg, the field marshal’s mother,
died today. She was 90, and reoently
broke her arm. The field marshal
curtailed his honeymoon to be with
her.
i f
Body of Ross Sought by G-Men
As Kidnaper Confesses Murder
PETER ANDERS.
Abductor of Aged Manu
facturer Trapped at
Santa Anita Track.
By the Associated Press.
LOS ANGELES, Jan. 18.—Relent
less Department of Justice agents, at
the end of a four-month manhunt,
marked the kidnap-slaying of Charles
S. Ross of Chicago, “solved” today as
they secretly whisked a man they said
was the confessed killer back to Chi
cago to stand trial.
J. Edgar Hoover, chief of the Federal
Bureau of Investigation, announced
Peter Anders, 30, former logger, ad
mitted he slew Ross two days after
$50,000 ransom was paid near Rock
ford, 111., October 8, 1937, and then
shot and killed his confederate, James
Atwood Gray.
(A regular passenger airplane
from Los Angeles carrying Anders
arrived at Memphis at 11:15 a.m.
today. The plane is due to arrive
at Washington at 5:50 p.m„ taking
the prisoner on his way to Chi
cago.)
Anders was traced across the country
by a trail of ransom bills he spent
lavishly at race tracks. Hoover said,
and last Friday was taken into custody
here at Santa Anita Park.
Agents recovered $14,402.28 of the
ransom on Anders and at his hotel.
Hoover said.
A 27-page statement was made by
the prisoner, but not released to the
press, before he was started eastward
last night.
The bodies of Ross and Gray have
not been recovered, Hoover said,
adding: 1
“We are certain the bodies are not
in the State of Illinois, where the
actual murders took place. This fact
gave the Federal Government Jurisdic
tion in the case.”
“Anders shot the two men through
the head, but all we can say for cer
tain is that the killings took place
on the outskirts of Rockford, about
100 miles west of Chicago, and that
the bodies apparently were hidden
somewhere over the Wisconsin line.”
A woman, it was learned, motored
here with Anders from New Orleans
last week, but investigators absolved
CHARLES S. ROSS.
—Copyright, A. P. Wirephotos.
her of connection with the Ross ab
duction. They shielded her identity.
It was Anders' irrepressible urge to
(See ROSS, Page A-<7)
Repudiation of Chiang Re
gime Held Stronger Than
War Declaration.
BACKGROUND—
As a result of conference of po
litical and military leaders of Japan
before Emperor Hirohito a week ago
Japan last Sunday withdrew recog
nition from government of Chiang
Kai-shek, thus severing dijlomatic
relations. Gen. Chiang flew from
Hankow, where his government had
fled from Nanking before its cap
ture by Japanese troops, to Suchow
to stimulate defense of vital rail
junction between Shanghai and
North China. Chinese claimed tide
of battle turned yesterday with sev
eral villages recaptured.
Tp the Associated Press.
TOKIO, Jan. 18.—The Japanese
government today Instructed its Am
bassador to China to return home and
reiterated its determination to have
no further dealings with the Chinese
government of Generalissimo Chiang
Kai-shek.
This repudiation, explained Akira
Kazami, chief secretary of the cabinet,
was stronger than a declaration of war.
Such a declaration would mean recog
nition of Chiang Kai-shek’s regime as
the government of China, he said.
But Japan today considers it only a
local regime. Hence there will be no
declaration of war.
Peiping Recognition Seen.
Indications grew that Tokio eventu
ally would recognize the Peiping re
gime, created under protection of the
Japanese Army, as the government of
China.
Premier Prince Fumimaro Konoye
expressed belief that regime "certain
ly would become the mainstay” of the
new China Japanese expect to come
into being after resistance to Japan
is crushed. -
Official circles said the recall of
Ambassador Shigeru Kawagoe from
Shanghai was tantamount to with
drawal of recognition from the Chiang
Kai-shek regime but emphasized that
Japan’s repudiation of the former
Nanking government already had
been made clear in the government's
statement Sunday.
Japan’s embassy in China, however,
will not be closed. Shinrokuro Hi
daka, its counselor, will remain in
Shanghai as charge d’affaires.
Chinese Leaves Thursday.
Domei, the Japanese news agency,
said the Chinese ambassador to Tokio,
Hsu Shih-ying, would sail for China
Thursday, but that a counselor would
remain in charge of the Chinese em
bassy here.
Premier Konoye, in an interview
with the Japanese press, said the
Japanese government expected and
was determined that the Peiping
regime should grow and co-operate
with Japan for “peace and culture in
the Orient.” But he admitted it must
undergo some changes before be
coming the government of all nhit»
JAPANESE ON DEFENSIVE.
Chinese Counter-Attacking in Two
Important Zones.
B) the Associated Press.
SHANGHAI, Jan. 18.—Chinese
counter-thrusts put Japanese armies
on the defensive today in two im
portant zones of their widespread war
fare—along the Tientsin-Pukow rail
way north of Nanking and in the
Hangchow area, 125 miles southwest
of Shanghai. Japanese sources ad
mitted they had been forced into de
fensive positions in those areas.
Heavy fighting was in progress in
the Hangchow area, where Japanese
apparently had been balked in their
attempt to drive inland from the sea
port. '
u.
Nippon’s Total of 213 Also
Is More Than Britain’s,
House Is Told.
By the Associated Press.
The House, preparing to start de
bate on the $553,266,494 nava1 appro
nations bill, studied testimony today
that Japan has more fully-manned
fighting ships in commission than
either the United States or the Brttish
Empire.
Navy Department data with the Ap
propriations Committee showeo Japan
on November 1 had 213 war craft
ready for action, compared with 199
of the United States and Britain’s 195.
Further, 150 of Japan’s ships were
under age, by the yardstick of the 1936
I/)ndon treaty, contrasted with 106
modem American craft and 162 mod
em British vessels.
Removed Limitation.
The Washington and 1930 London
treaties were aimed at maintaining a
ratio between the United States, Brit
ish and Japanese fleets of approxi
mately 5-5-3. But their expiration
removed this limitation.
The Navy’s data omitted com
parisons of total tonnage of combat
ant ships in full commission now, but
presumably Japan’s was smaller than
those of the other powers.
The totals included craft of all
sizes. The United States and Great
Britain both had more battleships in
commission than Japan, but the Nip
ponese fleet was stronger in destroy
ers and submarines than the United
States.
Seven to Be Dispoed Of.
The Navy reported Japan’s total in
cluded seven vessels which the Japa
nese government had announced
would be disposed of in order that
total tonnages of completed ships
would not exceed the 1930 London
treaty at the end of 1936.
These were the cruisers Jakagl and
Hirado, two destroyers that were to
be converted into targets and one
devoted to experimental purposes,
and two submarines which were to
be used for targets or experiments.
ENDS LIFE AFTER
STABBING FATHER
Farmer Near Mananas Reported
to Have Shot Himself—Parent
in Critical Condition.
Bpacial Dispatch to The Star.
MANASSAS, Va„ Jan. 18.—Wash
Bradfleld, 35, killed himself with a
shotgun today after stabbing his 75
year-old father, George Bradfleld, last
night at their farm home near here,
according to reports to Sheriff j. b.
Berlin. The elder Brtylfleld was re
ported in critical condition today. He
was being treated at his home.
Details of the stabbing and shoot
ing were not available immediately.
Sheriff Berlin and Deputy J. F. Wood
ward went to the ecene to investigate.
The stabbing was reported to have
occurred about 10 o’clock last night
The younger Bradfleld fired a shotgun
blast Into his chest about dawn today,
and died instantly, according to the
reports to the sheriff's office.
The Bradflelds were well-known
farmers in this section, living near
Lake Jackson, about 4 miles southeast
orf Mansassss. The younger Brad
field’s estranged wife was said to be
living with her family at nearby Clif
ton, Vw
r ~ 4
MRS. RUBENS HELD
IN MOSCOW JAIL,
U. S.JS INFORMED
Soviet Officials Advise She
Is Being Quizzed on Sus
pected Espionage.
INTERVIEW IS ASKED
BY SECRETARY HULL
Robinson Also Is Under Arrest
in Bizarre Passport
Mystery.
Bj the Associated Press.
The Soviet foreign office informed
the United States Government today
that Mrs. Ruth Marie Rubens was un
der arrest in Moscow and undergoing
questioning in connection with sus
pected espionage.
The woman, an American citizen,
has been the subject of an investiga
tion by the State Department since
she disappeared mysteriously in Mos
cow last month.
In an oral reply to an American
note of January 7 requesting informa
tion as to Mrs. Rubens’ whereabouts
the Soviet foreign office'informed Loy
Henderson, the American Charge
d’Affaires in Moscow, that the woman
was arrested following the arrest of the
man with whom she entered the Soviet
Union under the name of “Mr. and
Mrs. Donald L. Robinson.”
"Robinson,” the foreign office said
■it was informed by the Soviet secret
police, was arrested at Sverdlovsk on
suspicion of espionage.
Examination Continued.
It added that while the investiga
tion has not progressed sufficiently
to warrant placing a formal charge
of that nature against Mrs. Rubens,
the examination of her by the author
ities is being continued.
Immediately on receipt of this in
formation, Secretary Hull dispatched
Instructions to the Embassy at Mos
cow to request the Soviet govern
ment’s permission to interview Mrs.
Rubens.
The case has presented a bizarre
passport mystery since the disap
pearance of the “Robinsons” in Mos
cow in November precipitated an in
vestigation which disclosed that they
had obtained their American pass
ports in the names of persons dead
for many years.
Efforts to identify the couple led
investigators to establish that “Mrs.
Robinson” actually is an American
citizen whose real name is Mrs.
Rubens.
How she came to be traveling on the
passport issued in the name of “Mrs.
Robinson” is a detail not yet cleared
up. Neither have American authori
ties been able to establish the identity
and nationality of “Robinson.”
Entered Soviet Union Illegally.
The Soviet Foreign Office informed
the American Embassy, however, that
“it is clear she (Mrs. Rubens) entered
the Soviet Union illegally.”
The foreign office told the embassy
that early in November the couple
registered at the National Hotel in
Moscow bearing passports identifying
them as “Mr. and Mrs. Donald L. Rob
inson.” Their activities were so un
usual, it was said, that they attracted
the attention of the Soviet internal
authorities (the secret police).
In mid-November, the foreign office
said, "Robinson” disappeared from the
hotel, and when his wife was asked for
information concerning him, she in
formed the secret police that he had
gone to a hospital, the name of which
she did not know. *
The suspicions of the Soviet police
were heightened when a search of all
hospitals in the vicinity of Moscow
failed to reveal any trace of the miss
ing man.
In early December a man detained
for examination in Sverdlovsk was
found to be in possession of numerous
passports of various countries, includ
ing an American passport issued in the
name of "Robinson,” the foreign office
said.
BUSINESS COUNCIL
ASKEDBYBULKLEY
Advice of Experts Would Be
Available to Congress,
President.
B» ihe Associated Press.
Senator Bulkley, Democrat, of Ohio
proposed today that the Nation’s
“most intelligent and forward-looking
elements" pool their experience in a
national council on economic problems.
Senator Bulkley said the Senate
Manufactures Committee, which he
heads, and about 100 private citizens
have been studying the idea for
months.
“Whatever our decision may be as
to temporary, immediate remedies for
the present recession,” he said, “this
more long-time, permanent approach
which we have been working on should
be differentiated from plans or pro
posals which so prollflcally spring up
under the spur of immediate pressure.”
He said the formal call for organiz
ing the council would go out in the
near future.
The council would draw its members
from business, labor, agriculture, phy
sical and social sciences, and such
professional groups as lawyers, en
gineers, historians and economists.
Their advice would be available to
Congress and the President at all
times.
Senator Bulkley said most of the
co-operative efforts suggested so far
had been restricted to Government,
business and labor.
Roosevelt Parleys Continued.
President Roosevelt meanwhile con
tinued his business conferences, ar
ranging to talk over auto financing
Friday with both manufacturers and
auto finance men.
This meeting will follow a confer
ence tomorrow with the Commerce
Department's Business Advisory Coun
cil, which includes some of the most
prominent figures in business and
industry.
White House officials announced
yesterday that the following auto
men were to see Mr. Roosevelt:
Edsel Ford, president of the Ford
Motor Co.; Walter P. Chrysler, chair
man of the Chrysler Corp.; William
S. Knudson, president of the General
Motors Corp., and Alvin Macauley,
president of the Packard Motor Co.
and of the Automobile Manufacturers’
Association.
Also on the list were John J. Shu
(See BUSINESS, Page A^3)
Summary of Today's Star
Page. Page.
Amusements .A-7 Radio .B-S
Comics —B-14-15 Serial story.B-lg
Editorials ...A-12 Society _B-S
Finance -A-15 Sports ...A-18-19
Lost St Found B-19 Woman’s Pg.. B-S
Obituary ...A-14
FOREIGN.
Mrs. Rubens under arrest in Moscow,
Soviet tells U. 8. Page A-l
Japan withdraws envoy In pressing
war upon Chiang. Page A-l
De Valera pushes fight for Irish uni
fication. Page A-4
Chautemps near success in cabinet
formation. Page A-4
NATIONAL.
Body of Ross sought after kidnaper
confesses murder. Page A-l
Bulkley proposes national council on
economic problems. Page A-l
Railroad exemption on profits tax is
urged. Page A-l
House hears Japan has most fighting
ships. Page A-l
Seven dead, 25 missing in school
blaze. Page A-l
Rayburn pleads with House to cut
down expenditures. Page A-2
U. A. W. to punish members respon
sible for wildcat strlkea. Page A-8
WASHINGTON AND VICINITY.
Leniency with criminals charged to
D. C. court. Page A-l
Cutting lecturer praises and criticises
United states press. Page A-2
Family Mend calls for New York
youth found- here. Page A-S
Sales contracts Introduced in Nolan
trial. Page A-5
Police take "extra precautions” against
crime. Page A-5
Former Beard gambling aide hangs
self. Page A-g
Subcommittee given two D. C. Income
tax plans. Page B-l
Doctors to give group health views in •
forum Sunday. Page B-l
Three-for-26-cent rate likely, Eigen,
discloses. .Page B-l
5
Senator Lewis to introduce District
suffrage plan. Page B-l
Truckers warned by Schulte to cut
traffic toll Page B-l
Subcommittee hears Street on Dis
trict relief. Page B-l
EDITORIAL AND COMMENT.
Editorials. Page A-lt
This and That. Page A-lt
Answers to Questions. Page A-lt
Stars, Men and Atoms. Page A-lt
Political Mill. Page A-lt
David Lawrence. Page A-13
The Capital Parade. Page A-13
Mark Sullivan. Page A-13
Jay Ptanklin. Page A-13
Delia Pynchon. Page A-13
SPORTS.
Capital Garden and G. W. arena won’t
conflict. Page A-18
Glenn Cunningham not in mood to
retire. Page A-18
Boxer Laporte’s actions punsle Balti
more ring heads. Page A-18
Country clubs getting away from in
vitation tourneys. Page A-19
Farr in great fettle for Braddock
fight. Page A-19
Gevinson recoups ring
prestige. Page A-19
FINANCIAL.
Federal bonds rise (table). Page A-15
Bank investments gain. Page A-15
Glenn Martin orders sou. Page A-15
Stocks Irregular (table). Page A-18
Curb shares mixed (table). Page A-17
MISCELLANY.
Shipping News. Page A-14
Vital Statistics. Page A-39
Auto Permits Suspended. Page A-39
Bedtime Story. Page B-5
Betsy Caswell. Page B-8
Dorothy Dix. Page B-8
City News in Brief. Page B-7
Nature’s Children. PageB-M
Cross-word Pusale. Page B-14
Letter-Out. Page B-14
Winning Contract. Page B-15
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SPEAKING OF INTERIOR DEPARTMENT BATHS—
Milton Reported
Picked by Moore
For Senate Seat
By the Associated Press.
TRENTON, N. J., Jan. 18.—John
Milton, Jersey City attorney and mem
ber of the Port of New York Author
ity, was described by an authoritative
source today as having been offered
and accepted the United States Senate
seat vacated by New Jersey's new Gov
ernor, A. Harry Moore.
Mayor Frank Hague of Jersey City,
State Democratic leader—but not the
source which disclosed Mr. Miltons
acceptance—sat with him at the in
auguration of Mr. Moore today.
Asked whether he thought Mr. Mil
ton would accept the post should Gov.
Moore offer it to him, Mayor Hague
said:
"Milton’s pretty close to Moore, so
it's a pretty close guess."
Gov. Moore was expected to an
nounce his selection later today.
RlfiSlGE
Propose to House Commit
tee That Profits Levies
Be Eliminated.
By the Associated Press.
The Association of American Rail
roads urged the House Ways and
Means Committee today to exempt
railways from a modified undistributed
profits tax proposed as part of a gen
eral tax revision program.
“My fundamental proposition” R.
V. Fletcher, associate general coun
sel, said, “is that we are urging the
committee to change the law so that
the railroads would be placed in the
same category as insurance com
panies and banks and therefore be
exempt from the surtax on undistrib
uted earnings.”
A flat 16 per cent levy on banks
and insurance firms has been recom
mended by a Ways and Means Tax
Subcommittee. For large corpora
tions in general a 16 to 20 per oent
undistributed profits tax has been
proposed.
Sees Easing of Present Tax.
While recommending special treat
ment for the rail carriers, Mr. Fletch
er said the subcommittee’s tax plan
would considerably ease the present
tax on them as well as on corpora
tions In general.
Representative Woodruff, Republi
can of Michigan, suggested railroads
might be entitled to special consid
eration because they “find themselves
in a much more difficult position than
the average taxpayers.”
Mr. Fletcher agreed and went cm
to explain that railroads are “Semi
public" institutions and, he said, arc
subjected to “all sorts of minute regu
lation”—perhaps to a greater degree
than banks and insurance companies.
Mr. Fletcher said a proposed pro
vision for the carryover of operating
losses sustained in one year, to apply
against earnings in the next, would
be helpful. But he said it would be
better to let losses over three years
offset profits for a three-year period.
Favors Retention of Clause.
He said he favored, too, retention of
a clause which the sucommittee would
eliminate, that now permits exemp
tion from the undistributed profits tax
for corporations having contractu
under which they cannot pay divi
dends.
Under the new arrangement, Mr.
Fletcher asserted, these firms would
suffer a 4 per cent penalty—the differ
ence between the 16 per cent tax on
big corporations distributing all earn
ings and the 20 per cent on those pay
ing no dividends.
Chairman Doughton, Democrat, of
North Carolina said Mr. Fletcher’s rec
ommendations would result in loss of
revenue and suggested that be point
out ways of making it up.
The witness replied:
“I wish I could do that But I think
you could get it back in a way that
wouldn’t be so unjust.”
It Fays Him to Baise Wages.
PHILADELPHIA, Jan. 18 (/«.—
Louis Pappas, who began a one-man
battle 15 days ago against “bum busi
ness” by raising wages, cutting prices
and hiring additional help at bis res
taurant, reported today that custom
ers increased 68 per cent over any
previous 15 days ^ eight yean.
'EE L L FILES
BANKRUPTCY PLEA
Announces More Than $2,*
000,000 Owing in Bond
Interest and Principal.
By the Associated Press.
CLEVELAND, Jan. 18.—Erie Rail
road, owing more than $2,000,000 in
bond interest and principal, announced
today it was filing an application to
reorganize under section 77 of the Na
tional Bankruptcy Act.
A statement issued at the close of a
half-hour directors’ meeting said:
“The Board of Directors of the Erie
Railroad Co. today authorized appli
cation to the United States District
Court under section 77 of the bank
ruptcy act. Application is being made
in the District Court of Northern Ohio,
eastern district.”
Hie directors decided upon the
bankruptcy procedure after its efforts
to obtain a $6,006,000 loan from the
R. F. C. were stalemated by the R. F.
C.'s insistence that Chesapeake 8c
Ohio Railroad guarantee the loan. C.
It O., which has a large Interest in
Erie, refused.
R. F. C. Loan Cited.
"If the C. It O. won’t nurture its own
child I don't see why the Government
should,” Chairman Jesse Jones of the
R. F. C. observed January 6 in reiterat
ing the Government agency’s refusal
to allow the loan unless C. It O. guar
anteed it or added $2,500,000 in col
lateral to the collateral which Erie had
available.
Jomes commented he assumed the
C. 8c O. might want to see the Erie go
into trusteeship and then come out
with reduced fixed charges. On this,
C. 8c O. executives here declined com
ment.
President Charles E. Denney of Erie
said there was no comment to make
beyond the bare announcement of the
board’s plans. He had ascribed the
road’s financial ills to “the tremendous
drop in earnings” it, in common with
other roads, suffered between last Au
gust and December. He observed Erie
had "earned all its fixed charges, with
a small amount in excess,” from 1030
through 1036.
Defaulted Interest.
Erie defaulted interest on five bond
issues January 1, and some of them
broke as much as 17 points on the
stock exchange. Yesterday the road
announced it also was deferring pay
ment on $302,000 principal and inter
est due on an equipment trust in
stallment
President Denney said the directors
took no action today upon election of
a successor to William J. Harahan, a
member of the board and president of
the C. 8c O., who died December 14.
M’NUTT ON WARSHIP
SPEEDS TO SHANGHAI
High Commissioner in Philippines
to Get Data for Roosevelt
Prom Yamell.
By the Associated Press.
MANILA, Jan. 18.—united States
High Commissioner Paid V. McNutt
hurried to Shanghai aboard an Amer
ican warship today on his second trip
within a week to gather information
to lay before President Roosevelt in
Washington early in February.
His trip to China calls for a con
ference with Admiral Harry E. Yamell,
commander of the Asiatic fleet His
office here indicated McNutt would
seek the opinions of Admiral Yamell,
an expat on the Far Eastern situa
tion, relating to the Philippine Islands.
McNutt returned to Manila yes
terday from a “sightseeing” tour of
Southern Philippine provinces, par
ticularly Davao, where Japanese con
trol the archipelago's hemp industry.
WARSHIP FIRES PROBED
Second in Two Weeks Ocean on
Board Haw British Cruiser.
LONDON, Jan. 18 <*■).—'Ihe ad
miralty disclosed today that a court of
inquiry is investigating the second fire
within a fortnight aboard the new
9,000-ton cruiser Birmingham, over
due on her departure, for a China
station.
The latest fire was small and quickly
extinguished on January 18, while the
vessel was docked at Portsmouth. The
first was on January 3 In the starboard
ASHURST ASSAILS
COURT ‘LENIENCY’
IN STITELY CASE
Arizonan Says Washington
Has Reputation for
Ease With Crime.
PROTEST IS JOINED
BY SENATOR M’CARRAN
a
Two Senators Demand to Know
Why Ex-Fark Employe Is
Not in Jail.
BACKGROUND—
Interior Department investigators
had Reno E. Stitely, 29, arrested
last April 27 for allegedly defraud
ing the Government of about *75,
000 as chief of the voucher unit of
the National Parks Service. He was
indicted last September 29. On Jan
uary 7 of this year he pleaded
guilty before Justice Joseph W.
Cox in District Court. Since he had
no previous criminal record. Justice
Cox permitted him to remain at
liberty under bail and referred his
case to the probation officer for in
vestigation.
By BEX COLLIER.
Declaring Washington has a repu
tation for dealing leniently with crim
inals, Senator Ashurst, Democrat, of
Arizona, today severely criticized delay
at the District Court in sentencing
Reno Stitely, former National Park
Service employe, who pleaded guilty
several weeks ago in connection with
a $75,000 fraudulent voucher scheme.
Senator Ashurst was Joined by Sen
ator McCarran, Democrat, of Nevada,
in inquiring why Mr. Stitely "isnt in
Jail” and why he is now under con
sideration for probation.
The demands were made at a hear
ing by the Senate Public Lands Com
mittee into the nomination of Ebert
K. Burlew to be Assistant Secretary of
Interior. The Stitely case was brought
up in weighing Mr. Burlew’s qualifi
cations as an administrator, some
members of the committee indicating
their belief that laxity on the part of
some one at the Interior Department
enabled Mr, Stitely to carry on his
defalcations over a long period.
Stitely at Liberty.
"Why isn’t Stitely sentenced—why
is he being considered for probation?”
Senator McCarran asked after it was
brought out that the former Interior
Department employe is at liberty.
"Why isn’t this man in Jail?” de
manded Senator Ashurst.
Chairman Adams pointed out that
It was customary in the courts hers
to refer a case to the probation officer
for investigation and recommenda
tion prior to passing of sentence.
Senator Adams said he assumed this
was in accord with the laws passed
by Congress.
“I do not wonder that Washington
gets the reputation that it has when
such delays as this happen,” Senator
Ashurst responded. “It is no wonder
when they bring such men as Beard
back here.”
“I Just want to say this. They've
tried striking at criminals with a soft
hand—now it’s time to use the mailed
fist. There is too mueh of this parole
stuff. Too much consideration for the
criminal. Now take this Beard case
—it’s an outrage.”
Beard Recently Transferred.
Senator Ashurst had reference to
the recent transfer of Sam Beard,
former local gambling czar, from At
lanta Penitentiary to Lorton Reforma
tory—a move which precipitated a
storm of protest from the Criminal
Justice Association and other civic
interests, as a result of which Beard
is to be returned to Atlanta.
Senator Ashurst inquired if any
one knew the name of the justice who
was handling the Stitely case, and
said he would like to have the com
mittee ask that justice why he had
not sentenced Mr. Stitely.
Chairman Adams said he assumed
it was because the judge is awaiting
the customary report of the probation
officer. The matter was not pressed
any further.
Arrested April 27.
Chairman Adams said the records
show that Mr. Stitely was arrested last
April 27 and was indicted on nine
counts alleging forgery and false pres
entations of Government vouchers.
The chairman said Mr. Stitely pleaded
not guilty, but later changed his plea,
and the case was referred to the pro
bation officer.
Earlier at the hearing Maj. Gen.
Walter L. Reed, Inspector General of
the Army, testified that the scheme
by which the Government was de
frauded involved forged pay roll
vouchers to a mythical group of “blis
tcr rust checkers" and other so-called
(See COURT, Page A-5.)
ROOSEVELT ACTION
IN STRIKE SOUGHT
Puerto Hi can Dock Workers’ Head
Asks Intervention—Ramos
Denies Heed.
By the Associated Press.
SAN JUAN, Puerto Rico, Jan. 18 -
President Roosevelt was asked today to
interevene in settling Puerto Rico’s
prolonged dock strike, but the acting
Governor said there was no basis yet
for Federal action.
The request for executive interven
tion came from Manuel Rubio aminm,
head of the dock workers who have
tied up shipping for 16 days in a de
mand for increased wages.
Acting Gov. Rafael Menendez Ramos
said the situation did not call for Fed
eral intervention. Other Federal of
ficials explained that collective bar
gaining had not been denied the
strikers and their rights to picket had
not been interfered with.
Strikers at first asked their basic
hourly pay be increased to 75 cents.
Later they lowered their demand to
60 cents. Shipping companies offered
a 15 per cent increase from the present
rate of 32 cento an hour.

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