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Evening star. [volume] (Washington, D.C.) 1854-1972, June 16, 1938, Image 4

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Gen. Bentran Feared Cut Qff
as Troops Flee Across
French Border.
By the Associated Press.
HENDAYE, Prance (At the Spanish
Frontier), June 16—Spanish Insur
gent* sprang a carefully set trap on
the government’s last-ditch defenders
In the Pyrenees Mountain passes today,
forcing the government’s "lost” 43d
Division to flee across the frontier into
In the south, a major battle de
veloped on the Cordoba front. Insur
gents reported they had advanced
about 10 miles in two days in the
mountainous sector northwest of Pen
naroya, where the government has
built strong lines.
Surge Toward Valencia.
On the Mediterranean seaboard, in
the east, the insurgent conquerors of
Castellon de la Plana surged toward
Valencia from two sides without slack
ening their pace.
Three insurgent armies pressed
eouth toward the refugee-crowded
former capital, 40 miles below Castel
lon on the broad coastal plain.
Two others attacked eastward from
the Teruel sector, the other arm of
a giant nutcracker in which Franco
hopes to crush the defense army of
Gen. Jose Miaja, kernel of the gov
ernment resistance.
More than 2,000 wounded militia
men of the "lost” division, clothed
only in rags, straggled into Prance
during the night and early morning
darkness while heroic comrades cov
ered their flight down the Pyrenees’
■teep slopes.
Pear was expressed that Gen. An
tonio Bentran, commander of the di
vision, and his staff with 800 members
of a "suicide brigade” might be cut
off by the insurgents’ rapidly closing
.ine mgnc ended tne resistance of
tlft division, which had halted Fran
co’s entire northern campaign for
two months, although it was cut off
from all aid and was isolated on bar
ren ridges of the mountains.
Acknowledge Loss of Castellon.
The Government acknowledged loss
Of Castellon, the first serviceable port
the insurgents have won on the
Five ships, including two French
and two British freighters, were
bombed in Valencia harbor by in
surgent planes.
The French freighters Karbear and
Galois were sunk. The British freighter
Thurston, first bombed June 7, and
the British ship Seapharer were
BARCELONA, June 16 (A*).—Three
persons were killed and 10 wounded
today in two insurgent air raids on I
the outskirts of Barcelona.
■ Continued From First Page.)
•nd Japanese armies, locked in com
bat on the Peiping-Hankow front, fled
before the torrent, which Japanese now
estimate will take a toll of 50,000 lives.
Advices from Hankow, the pro
visional Chinese capital, said the re
lentless flood surging southeastward
from torn dikes had penetrated be
yond Fukow, 70 miles south of Kai
feng on the Lunghai Railway and 90
miles south of the Yellow River.
Sweeping over thousands of acres
of farmland, driving peasants and ;
armies before it, flood was declared j
by Japanese war dispatches to have
affected 2,000 villages with an aggie
gate population of 500,000.
Bombers Drop Empty Bags.
Japanese bombing planes, tem
porarily diverted from their death
dealing activities, dropped thousands
of empty bogs, ordinarily used for
trenches and machine gun nests, into
the flood area for use by Japan's
army engineers in repairing breached
Food and tools also were being
dropped to isolated Japanese troops
fighting the new enemy.
While the main course of the flood
was southeastward, another peril was
reported north of the river, where
Japanese said Chinese troops fleeing
westward from Chengchow had cut
new holes in the dikes of the Tsin
Tsinyang, about 50 miles northwest
of Chengchow and on the opposite
aide of the Yellow River, was men
aced, they said.
The outskirts of Tsinyang were
under water and the Japanese gar
rison was struggling to barricade the
center of the town.
The rolling torrent similarly was re
ported threatening Menghsien and
Wenhsien, both on the north side of
the river where tributaries were over
flowing widely.
Yangtze Flood Feared.
The heavy rains also brought fears
•f a flood on the Yangtze River, up
Which another Japanese naval and
army expedition is fighting Its way
toward Hankow.
With dikes between Kiukiang and
Hankow in a bad state of disrepair,
foreign military observers said it was
entirely possible the Yangtze would
repeat the disaster of 1929, when 3,
000,000 lives were lost and the Hankow
Bund completely destroyed.
High water might permit Japanese
Tessels to override the booms con
structed by Chinese about Kiukiang.
On the other hand, it would make
navigation dangerous and perhaps im
possible, and would impede land opera
Meanwhile a cholera epidemic was
added to China’s other woes of flood
and war. Cholera yesterday was de
clared epidemic in Shanghai, where
there W’ere 123 cases in the city’s hos
pitals. Eight deaths were reported at
Japanese-occupied Soochow.
Object of Grand Scramble
To the winner of The Evening Star Cup golf tournament for
women goes this glistening prize. As the field entered the final
round today at Columbia Country Club IS participants were
bunched at the top with only three strokes difference between
the first two, Mrs. Merrill Lord of Columbia and Miss Lila Sari
of Beaver Dam, tied at 76, and the fifteenth. Covetously holding
the trophy are, left to right, Mrs. H. L. Simcoe and Mrs. Frank B.
Helen, tournament participants. —Star Staff Photo.
(Continued Prom First Page.)
Vernon Mortgage Corp., which pur
chased the remaining assets.
To Be Pay in Full.
The 25,000 depositors who hold par
ticipating certificates of $60 or less
in value are to receive a total of about
$150,000, which, under the plan, will
pay them in full. This fund is de
rived from two sources, one-fourth of
which is the cash pro-rat* distribu
tion from the proceeds of the sale
of all the remaining assets of the
Mount Vernon liquidating trust at
public auction on March 3, three
fourths of which was contributed by
the International Association of Ma
chinists as a part of its plan of termi
nation of the Mount Vernon liquidat
ing trust.
Notices will go out soon to these
depositors with less than $60 notify
ing them when to call for their funds
at the City Bank of Washington or any
of its branches. These people are
asked not to call at the City Bank until
they have received an official notice
in the form of a letter from the Mount
Vernon Liquidating Trust, notifying
them to come. These letters are to
be mailed out in groups of about
1.000 a day, and the pay-off probably
will begin some time next week. The
blanches of the City Bank of Wash
ington where participating certificates
may be cashed in will be listed on
the letter.
The reorganization plan on which
officials have been working for months,
is now ready to be consummated, and
will result soon in the distribution of
the common and preferred stock of the
new Mount Vernon Mortgage Corp.
Machinists’ Association Aids.
Success of the plan was largely due
to the co-operation of the International
Association of Machinists, which was
one of the largest stockholders In the
Mount Vernon Savings Bank. This
union advanced *150.000 in cash, for
which they will receive 10,000 shares
of no-par common stock upon which
they can receive no dividends until all
of the preferred stock has been once
called for redemption. The union out
of the common stock received will con
tribute to the old stockholders of the
Mount Vernon Savings Bank one share
of the common stock of the Mount
Vernon Mortgage Corp. for each share
of bank stock. The bank stock is being
canceled under the reorganization pro
gram as the bank is surrendering its
charter in West Virginia through legal
proceedings in court at Charleston.
Preferred stock in the Mount Ver
non Mortgage Corp. is to be issued
to holders of participating certificates
in the Mount Vernon Liquidating
Trust who agreed to the reorganiza
tion plan. They will get preferred
stock of, *1 par value in the total
amount of $975,000. This is 3 per
cent preferred stock cumulative as
to dividends after December 31, 1939.
The distribution of funds to the
25.000 depositors with $80 or less will
be handled by the City Bank, of
which C. P. Burton is president.
This bank maintains its head
quarters in the office of the old Mount
Vernon Savings Bank and has five
branches scattered throughout the
The Mount Vernon Liquidating
Trust is operated by three trustees,
Thomas E. Burke, E. C. Davison and
E. Flavelle Koss; executive secretary,
Robert T. Highfleld, and general coun
sel, L. Harold Sothoron. These con
stitute the Board of Directors of the
Mount Vernon Mortgage Corp.
larm Is Sold.
ROCKVILLE, Md„ June 16 (Spe
cial).—Announcement has been made
of the sale to Cooke A. Robertson,
Rockville contractor and builder, of
the 104-acre farm of Roger Shaw, near
here. The price was not revealed.
The farm, regarded as one of the
finest in this part of the county, ad
joins the estate of Dr. James A. Lyon
and the property of the Christ Child
Society. Mr. Shaw and his family plan
to move to their Rockville home Au
gust 1.
1,500-Year-Old Custom.
The 1,500-year-old custom of bless
ing the growing grapes was observed
this year in Langdon Hills and Can
lngton, England.
Lady Muriel,
Accused as Spy,
Dies in Sleep
If the Associated Press.
LONDON. June 1*.—Lady Muriel
Paget, pioneer in Russian relief work
who denied an accusation of having
worked for the British intelligence
service, died in her sleep during the
Lady Muriel, wife of Sir Arthur
Surtees Paget, founded the British
subjects in Russia Relief Association,
organised the Anglo-Russian Hospital
in Petrograd during the World War
and conducted post-war relief work in
many countries. She was made a
commander of the Order of the Brit
ish Empire.
In the March trial of 21 accused
Rightist-Trotskyist plotters, one of
the defendants, Christian Rakovsky,
former Ambassador to London and
Paris, testified that in 1934 Lady
Muriel triad to get him to resume
work for the British intelligence serv
Lady Muriel, in a denial, said she
never had worked as a spy.
Economics Minister Says
Germany Unobligated
on Any Ground.
B* the Associated Press.
BREMEN, Germany, June 16.—
Economics Minister Walther Funk
declared today that Germany was not
obligated to acknowledge state debts
of annexed Austria either from the
viewpoint of international law or on
economic or moral grounds.
He added, however, that Germany
was trying to come to an agreement
with Sir Frederick Leith-Ross, chief
economic adviser to the British gov
ernment, “in a spirit of mutual under
standing with the aim of compromise
that will meet the interests of both
In a speech here, Minister Funk
asserted that “there is no legal obliga
tion for the German Reich to take
over these (Austrian) debts.”
“England, for instance, declined
after the Boer War to recognise the
debts of the Boer republic as her
own," he added, "• • • nor did the
United States acknowledge the loans
of the Southern States as binding
upon the new state."
“Will of People."
Minister Funk also scoffed at the
Idea that the present Austrian region
of Germany must be regarded as the
legal successor to the Austrian republic.
“The change in the legal status of
Austria is an historical development
brought about by a revolutionary act,"
he said of the republic’s absorption
into Germany last March 13. “Austria
as it existed hitherto has been wiped
out as such by the will of the people.”
The economics minister, speaking at
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Sunday is H is day!
T_TE MAY he The Forgotten Man for three
JO. hundred and sixty-jour days of the year,
hut on Sunday, JUNE 19th, he’s king! Sure, it’s
sentimental. . . and why not? The old gentle
man can stand a little sentiment once in a while.
Now here's a bit of advice about the gift
you're going to buy. Don't waste time trying to
think of something quaint, over-expensive or
too original. Just give a moment’s earnest con
sideration to his needs ... the things he loves
to do in his leisure hours. Then pick out some
thing he will use, and use again and again.
FOULARD TIES.. . $1.50
FROM FRANCE.55c to $1.50
NOVELTY CUFF LINKS.$1.50 to $7.50
PAJAMAS.$2.50 $10
* CUSTOM TAILORED SHIRTS . $2.50 to $7.50
Tint Shirts, Silk Pajamas* Panama and Straw Hats,
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Gabardine Suits, Palm Beach Suits, Sports Coats, Flannel
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1409 G STREET, N. W.
a celebration of the 400th anniversary
of historic Schuetting House, head
quarters of Bremen’s Chamber of
Commerce, branded the United States
as “virtually the center of disturb
ances’’ in world economics.
Threats of Force Useless.
Referring to the debts of other na
tions to the United States he said
that "no sensible person believes these
debts ever will be paid.”
Referring to the Dawes and Young
loans—made to Germany In 1834 and
1830, respectively—Minister Funic ex
pressed the opinion that a political
debt does not become a commercial
one if private capitalists on the
creditor side take the place of states.
(The loans were part of attempted
solutions of Germany's reparations
He declared it was absolutely neces
sary that interest rates of 7 and SH
per cent on these loans “be reduced
to a normal level.”
Funk took Issue with the theory
that Austrian state loans had served
economic purposes.
Nevertheless he said Germany was
ready to come*to some acceptable ar
rangement on this question. But, he
added, threats of force were useless
and would only prevent an amicable
Colombia, with an area of 500,000
square miles, now claims a population
of 8,000,000.
100,000 Subjects
Cheer Gustaf on
His Birthday
Light Signals Mark
Official Start of
By the Associated Press.
STOCKHOLM, Sweden, June 16.—
King Gustaf V, 80 year* old today,
waa greeted by the thunderous cheers
of 100,000 of his subjects as he stepped
on the balcony of the royal castle
shortly after midnight in a flood of
light from warships anchored in the
stream below.
The light signaled the official com
mencement of nation-wide festivities
in honor of the monarch's birthday.
A short felicitation speech by
Crown Prince Gustaf Adolf, who sails
tomorrow with Crown Princess Louise
and a party to the new Sweden jubilee
celebrations in Wilmington, Del.,
started off a strenuous day's schedule
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for the monarch. On the program
Special thanksgiving services In all
A trip in the barge Vasaorden to
Stockholm Town Hall for a civic
Homage by massed choral societies
at the town hall.
A “citizen homage” in Stockholm
Concert and flag parade in the
Skansen, Stockholm’s zoological park.
And dancing by the people in the
parks and public squares.
Benefit Pay to Be Given.
(Special).—A benefit play,“TheStrike
of the ladles’ Aid,” will be given to
morrow evening in St. Mary' s Hall by
Falrvlew Home Demonstration Club.
The play is sponsored to raise funds
for a new community hall.
—4 1
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