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MAR 13 1922 THE NEW YORK HERALD change in temperature. Highest temperature yesterday, 46; lowest, 36 Detailed weather reports will be found on editorial pace. THE BEST IN ITS HISTORY. - The New York Herald, with all that wa* best of The Sun intertwined with it, and the whole revitalized, is a bigger and better [copyright. 19 2 2. by the sun-herald corporation.) and sounder newspaper than ever before ? f ? -f NEW YORK, SATURDAY, MARCH 11, 1922.? IR.T. WOULD DIVORCEI TO GAIN $7,600,000 AND GET ON ITS FEET There Is Also Hint That Action Is Move for a Receivership. NEW SPUES TO BE KEPT Way Sought to Forestall Double Fare in Split of Three Lines. DIVIDENDS TO BE SAVED First Breach in the 999 Year Lease Will Be Withholding of $2,100,000. The Interborougrh Rapid Transit Company has taken a step which may result in a complete "severance of operating arrangements and a corpo rate divorce from the Manhattan Ele vated Railroad Company, which for twenty years has been operated by the Interborough under a 999 year lease. After months of fruitless effort to persuade the Manhattan owners to modify the terms of the lease, which has been found too oppressive a finan cial burder^, the Interborough has made what is understood to be a final proposition?in fact, an ultimatum. Accompanying this proposal was a plain statement, that whether the Manhattan accepted or rejected the proffer, the Interborough positively is through paying 7 per cent, annual in terest, which is the guaranteed rental charge under the lease, on $60,000,000 Manhattan stock. *>2,100,000 to Be Paurd March 31. On March 31 will fall due tho Interest lor the first quarter of the current calen dar year. Under the terms of the lease tho lessee company has ninety days' grace after payments fall due before legal steps may be taken by the lessor to enforce payment. Interest has not yet been paid, how ever, for the final quar'.er of last year and the ninety day allowance for that settlement will expire on March 31. The two quarterly elairr)9, aggravating six months' Interest, which then will be due i he Manhattan company will amount to $2,100,000. The Interborough company has no Intention, the Manhattan com i>any has been informed, of paying any part of the claim. The final proposition for the cancel lation of the lease at the Instance of the Interborough management, a proposition to which the Manhattan has shown no signs of assenting as yet, is couched sub stantially in these terms: The Manhattan "L" owners are to agree to cancel the lease, relieving the Interborough thereby of an unprofitable appendage for the maintenance of which It has to pay annually $4,200,000 stock dividends as rental under the lease, SI,600,000 annual interest on the bonds and $1,800,000 . yearly taxes. These figures aggregate $7,600,000 as a prospec tive yearly saving. The Interborough thereupon is to re store all the old original elevated lines to the exclusive management and op eration of tho Manhattan company at a valuation of $30,000,000, which is to in clude also transfer to the Manhattan of all elevated line power houses and third tracking express facilities which were financed with Interborough money, the Manhattan to pay interest to the Inter borough on the $30,000,000 valuation and to provide for a sinking fund for the ultimate liquidation of the debt. This proposal, should It be ratified, would leave In the hands of the Inter borough $17,000,000 worth of extensions, constructed and now operated by the Interborough In connection with Its ele vated railroad division. If the lease be nbrogated, it Is contemplated that the Interborough shall continue to operate these extenslops as a part of its own service. Lines Wonlil Be Broken. Therein lies the contingency of para mount public Importance to hundreds of thousands of city travelers. After these companies have severed contractual re lations as lessor and lessee a continuous ride over any one of the old Manhattan elevated lines Interlocking: with any one of the Interborough's newer extensions thereto will be possible only under either a dual fare or a Joint rato adjustment approved by the Transit Commission under the provisions of the State rail road laws. The Transit Commission knew of this proposal for a cancellation of the lease as soon as it was tnade some weeks ago to Alfred Skltt, president of the Man hattan Klevated Railroad Company. It was to meet Just such a contlngeno>* that the Transit Commission, with Oov. Miller's approval, framed one of the transit act amendments now pending In tne Legislature's Committee on Kules. Hint amendment so enlarges the powers of the State Transit Commission that It may still compel the operation of a through service, as lit present, even though a. system, by the cancellation of a lease, h? cut Up Into component parts. Two roads thus operating an inter locking route might be compelled by the commission to continue through service at the nickel fare, dividing the resultant operating revenue, provided only it could not be proved that the nickel fare re striction In such a case would be con fiscatory. Three Important I.Inks to Re Kept Moat Important among the several tnterborough extensions now operating In close relation with Manhattan service but whoso control would be retained by the Jnterborough under the proposed terms of separation are these: On the Third avenue "IS the extension (mm from the Fonlham ro?d station via Webster avenue to Gun Hill road and fnntlnned on Page Six. D?*Uh rtohtiin it.>.,in thinoaV Dinner and Bve Itfng ''flrncrt. $2*0. Vamtrrbllt Hotel - ,4dr. Theatrical nnd Hotel nnd ttrstmirairt*. Advertising will l>e (mind on Pag" 0.?Adi., f ? - s 'Herald' Bucket Series Commended by Banton District attorney joab H. BANTON said yesterday: "The New York Herald deserves great credit for calling to the attention of people the condi tions that have existed in the of fices of oertain brokers and in re vealing the crimes of 'bucketing' orders, trading against customers and conducting 'wash sales.' "The fact that correspondence has reached this office from every State in the country and many provinces in Canada indicates the widespread scope of The Herald's articles and the interest aroused by the disclosures.'' BIG BILLS IN PERIL, L0CKW00D ACCUSED j All Financial 3Ieasnres, Except $100,000,000 Loan, Headed for the Rocks. |'RAN OCT!' SAYS GIBBS Housing- Committee Head As serts Leaders Agreed to His Leaving- Albany. | Special Dispatch to Thb Nbw York Hekald. ?w York lleruld Bureau, ) Albany, March 10. f Samuel I'ntermyer's fight for his ! housing program may have saved the j Metropolitan $100,000,000 bill to re lieve housing conditions in New York, but the other financial bills backed I by the Lockwood committee's recom i mendations appear to be headed for the rocks. All the financial measures, providing ' that insurance companies and savings i banks invest larger amounts in build jing securities, apparently will have a i hard time to get out of committee, and I this is due largely, the leaders say, to Senator Lockwood, whose attitude to day has completely mystified the Leg islature. Developments indicate that the so called Metropolitan bill will pass both the Senite and Assembly. Speaker I Machold announced that he supported the bill and that it would be reported out favorably next week. There is not a majority pledged to the bill in the Assembly, but with the Speaker be hind It there is good prospect It will pass the lower house. Indications are that Uie Legislature also will pass the five other rent and housing bills now on the calendars. That may be all. These five measures extend the exlstine emergency housing laws and the tax exemption law. I.arkwaod Arrnard by Gllili*. "Senator Lockwood ran out on ub after insisting that the bills be reported, and I an at a loss to account for his conduct." Senator Gibbs. chairman of the Cities Committee, said, when a quorum did not appear at the special meeting which Senator Lockwood had demanded to take prompt action. Fail ure ot get this action to-day is a dis tinct loss for the committee. Senator Lockwood gave notice this morning in the Senate that he would move to discharge the Cities Committee from further consideration of the Lock wood committee bills not yet reported This sounded like a demand for a show down. It placed Senator Lockwood on the initiative in forcing the committee to action, apparently against Its wishes Next, Senator Lockwood filed with Sen ator Olbbs, chairman, a petition signed by seven other members of the Cities Committee demanding that a meeting be called forthwith and the bills reported out. That was a militant move to com pel action. The petition read : We. the undersigned members of the Cities Committee, respectfully re quest that you report promptly for the consideration of the Senate the bills Introduced by the Joint Legisla tive Committee on Housing. Those who signed the petition were Senators Lockwood. S. Seymour Low man. William W. Campbell, Parton Swift, C.' Ernest Smith, James J. Walker and Peter J. McGarry. Senators Walker and McOarry are Democrats. Menu tor l.ockntHid Aliment. Senator Olbbs called the meeting of his committee, which was held imme diately after adjournment of the Sen ate. Only five members appeared and Senator Lockwood was not one of them. Three who were present were Senators Campbell, Pick and Smith, who had signed the petition, and the others were Senators Olbbs and Oeorge R Fearon of Syracuse. After waiting for nearly an ho^r for Senator lx?ckwood the committee ad journed because there was not it quo rum present. It was not possible to take action and this throws all the re maining bills. Including the entire finan cial program, over until next Tuesday at the earliest. That !s within five dnya of final adjournment, when hours count, und It will take extraordinary pressure to rescue the measures in the last wild (?crumble. "The five members o' the committee present did not constitute a quorum and we had no right, to take action, espe- j daily with the Introducers of the bills not present." Senator Olbbs said. "There was no explanation of why the Senator ran out on the committee." As the situation has developed It Is easier now than at any stage during the entire session to kill these bills, against whirh the powerful Insurance and financial lobbies have been conduct ing a steady fight. Senator Ltisk said the Senate probably will act on the Met, ropolitan bill next Monday night. There la believed to be a scant majority for the measure at present In either house, but Indications are that with the lead ers of both Houses favoring Its pas sage It will squeeze through. Speaker Machold said he could see no objections to the bill and heretofore he has been counted against It. The changed atti tude of the leaders of the two Houses was regarded as evidence that Mr. Un termyot had convinfed Oov Miller In Continued on Page Seven. WOMAN BOOTLEGGER SHOOTS A DETECTIVE INGANG'S FINE HOUSE She and Woman Compan ion, Armed, Captured in Barricaded Room. | RESERVES CALLED OUT 1,000 Bottles of Whisky Found?Band Had Three Tracks to Canada. KILLED LEAVING A SHIP Engineer of Vessel Thought j Booze Runners Had Xot Paid for Their Two Cases. A shot fired by a woman on the stairway of IS Charlton street, which two detectives were visiting early last night on suspicion of bootlegging ac tivities, led to a running pistol battle from the basement to the roof, in which Detective Vance L?. Lavendar was shot through the shoulder, and reserves were called to break into a room where two armed women barri caded themselves and defied the police. One man and the two women were arrested. Bottles of whisky were found hidden in almost every room of the house, which was luxuriously fur nished. The liquor seized amounted to about 1,000 bottles, bearing the labels of White Horse, Haig & Haig and Johnny Walker. Detective Lavendar received his wound from Mollie Perselli, aged 30, the alleged accomplice of a gang of Canadian bootleggers who are believed to have made the Charlton street house thtir headquarters. Frank Celano, the one man arrested, said he lived at 1347 Forty-seventh street, Brooklyn, and admitted, according to the police, that he worked as chauffeur for the gang, which keeps three big cars busy carrying liquor across th? border into New York. Woman Krrpii Mootlea Door. Acting on a tip received by Inspector UnderhiU, Detectives Lavendar and Herman Guran went to the Charlton street house last evening, rang the base ment bell and told the woman who came to the door that they wanted to see "Eddie," She told them "Eddie" was not in, and was not expected until late i at night. They pushed past her and | started up the stairs to the flrat uoor. The woman who let them in quickly ! gathered what was up and tried to | block their way. She shouted at them, "If I had a gun here I'd blow your insldes out," and then screamed up the stairs as they pushed her aside, "Shoot. Mollie, shoot!" The detectives had not reached the first floor when Mollie opened Are. Two men appeared beside her and a general interchange of shots began. I-Avendar felt a stinging sensation in his shoulder and at the same time noticed that one of the men dropped his revolver arid ran. One Man Kncii |M>a House. Mollie, the detectives said, ran Into a room on tho first floor, where sue was followed by the other woman, who said later that she was Mrs. Marie I'amero. Lavendar and Guran ran on upstairs after the two men. One got out through a window and down a rear fire escape. Celano surrendered. The dctectives then went back to the first floor and ordered the two women to : comc out. They found the door heavily 1 barricaded, so that they could noi. push 1 !? In. and one of the women called out: "We've got plenty of guns in here. Why don't you come on in?" Lavendar stayed on guard while Guran went out and telephoned to St. Vincent's Hospital and called for the Charles street reserves. When the reserves arrived the women ' did no more shooting, but gave them selves up only when the door to their ' room was broken through. Kadi Motile Mmle Into Three. On the top floor of tho house the po lice say fhey found a quantity of White Horse whisky labels and Canadian Gov ernment stamps bearing tho Imprint of the Quebec Liquor Commission. They also found a bottle of rum flavoring, an alcohol gauge and some essence of gin. Celano told the police that, all the liquor he brought In over the border was di luted three times before it was sold to the patrons of the gang. The detectives said bank books were found In the house which showed de- j posits amounting to about $80,000 made within the last six months. They would not say In what banks the deposits were made or to whom the books belonged. A loaded .3d calibre revolver whs found in the breadbox In the kitchen. The ?run used by the woman known as Mollie Persellt could not be located. The bullet that struck I^avendar's shoulder passed through his overcoat and suit and through the strap of his suspenders, making a slight flesh wound. The detectives were certain that the man who escaped was struck by one of their i bullets. Roy, \\ omiilril. I* ?inspected. Later In the evening Detective leaven- j dar went to St. Vincent's Hospital and talked to a hoy who said he was Jerry Perrella of 43 Macdougal street and who wa-s seriously injured wllh a bullet wound In the chest. Lavendar said he j resembled the man who dropped the re volver during the battle In the Charlton street house. Penrolla. however, said he had been wounded In his father's butcher shop at lSj West Houston street when a man brought in a re volver he was trying to sell. He said It was accidentally discharged find re fused to give the other man's name to the police. The three prisoners were taken to th" I onfinued on I'age Ml*. WTisn Toil Tltlnk nf Writing Think of Whltlnii ? Adv. N There Is Nothing so Important as Facts. In its more or less frank remarks about Congress with its relation to the bonus, The New York Herald has repeatedly said that the Republican party had never committed itself to the payment of a bonus; that the only Republican commitments of this nature were made by individual Congressmen in their cam paigns for election. Here is the declaration of the Republican party in its National Convention in 1920 in Chicago on the bonus. We have already printed it, but it is worth while to print it again: "We hold in imperishable remembrance the valor and the patriotism of the soldiers and sailors of America who fought in the great war for human liberty, and we pledge ourselves to discharge to the fullest the obligation which a grateful nation justly should fulfill in appreciation of the services rendered by its de fenders on sea and on land. "Republicans are not un grateful. Throughout their history they have shown their gratitude toward the nation's defenders. Liberal legislation for the care of the disabled and infirm and their depend ents has evei- marked Repub lican policy toward the sol diers and sailors of all* the wars in which our country has participated. The present Con gress has appropriated gener ously for the disabled of the world war. "The amounts already ap plied and authorized for t^ne fiscal year 1920-21 for thi3 purpose reached the stupen dous sum of $1,180,571,893. This legislation is significant of the party purpose in gener ously caring for the maimed and disabled men of the re cent war." This official declaration of the Republican party shows clearly where it stands on the bonus. The com mitment of Republican Congressmen to the payment of a bonus is crooked business, a raid on the Govern ment Treasury for their own political advantage.? Editorial. JUSTICE MAY ENTERS KENNEALLVS MIXUP Denies Influencing Accuser to Recant Charge of Bribing Tammany Politician. iM'COOEY LAWYER IN CASK Untermyer Threatens to Ask Grand Jury Inquiry to Clear ! Queer Points, j Saul Blickman, under examination late yesterday afternoon by Samuel Uptermyer. counsel for the Lockwood committee, said that he had signed an affidavit recanting testimony against William P. Kenneally, former Tam many Alderman, on the advice of Justice Mitchell May of the Supreme Court in Brooklyn, and A. T. Nova, his lawyer, who also is counsel for John H. MeCooey, Democratic leader of that borough. Blickman. a builder who had testi fied before the Grand Jury that he had paid $3,000 to Kenneally to have a strike called off on one of his build ing operations, was put on the stand before Justice Wanservogel in the Su preme Court in connection with a motion for dismissal of the extortion indictment against Kenneally. This move was made after Blickman had denied that Kenneally was the man to whom he had given the bribe. At the .end of several hour*' grilling by Mr. Untermyer the case was ad journed until M. Kantor of 110 West Fourteenth street, whose name was mentioned frequently by Blickman, can be found. Mr. I'ntermyer intimated. us he left the Criminal Courts Building, that he might asl. for a Orand Jury investigation. Blickman, who said he was the man aging head of the S. Blickman Com pany of Washington Heights, manu facturers of kitchen equipment, contra dicted himself several times throughout t'he examination and at other times appeared loath to tell all he knew of subjects on which he was questioned by Mr. I'ntermyer. Blickman said that after Kenneally's indictment last month, charging him with taking the 13.000 bribe as delegate of Steamfitters and Helpers' Union, he had seen Kenneally's picture in the newspapers and realised he was not the man to whom he had given the bribe. When Kenneally was asked yesterday by his counsel, Mm tin Conboy and I George Z. Medatie, to aland up In the courtroom. Blickman said: "So, that Is not the man to whom T gave the money." During the questioning by Mr. Unter Itiyer, Blickman told of having had re peated visits from Kantor. whom h<* said he did not know. Kantor showed him Kenneally's picture and asked him j to sign an affidavit recanting his pre vious testimony before the Grand Jury, i All that Blickman knew about Kantor was "that he was a Democrat.'' "I felt some doubt about the honesty j of his motive In coming to me," testl- j fled Blickman. "and on each occasion j I ordered him out of my office. 1 saw him last on February 24 The next day 1 Contlnnrd on Page Three. Dogs Quarantined in Connecticut Hartford. March 10.?Connecticut Is j threatened with an epidemic of rabies,! Cattle Commissioner J. M. Whittlesey said to-day, and to prevent Its de velopment he extended the dog quar antine to twelve more towns, making it effective In twenty-five in nil. Smallpov has increased In towns j near Bridgeport, reports to Health <'<>m miss loner John T Black to-day SAYS POLICE CAPTAIN BEAT HIM IN STATION One of 33 Raid Victims Is Ad vised by Magistrate Corri gan to Get Warrant. AM. IN PARTY FREED People's Rights Ignored, As serts Court, in Attack on Police Officials. Detectives Edward J. O'Neill and James Meeh&n of the Central Office raided an apartment in 271 Went Fortieth street last night and took thirty-three men to the West Thirtieth street station and then to the Night Court, where they were charged with gambling. Magistrate Joseph E. Cor rigan dismissed the cases against all of the men. criticised the police for mak ing the arrests and advised Michael Raidice of - Rector street to procure a warrant for the arrest of Captain Joseph Howard, commander of the West Thirtieth street station. "I am certainly sorry this is my last night in the Night Court," said Magi* trate Corrigan. "or I should Issue the warrant now. I would chcerfully handle this case myself, but It is out of my jurisdiction, as next Week I shall b> sitting in the West Sidfe court and could not hear the case. I suggeet that you go to the Second District Court to-mor row and procure a warrant. You may tell the Magistrate that I have heart! the evidence and that I would have given you a warrant If I was to con tinue to sit here." Raidice said that after tie- detective1! had taken himself and thirty-two other prisoners to the Wc.it Thirtieth street station in a patrol wagon h* was as saulted by Capt. Howard when he askert | if he might use the telephone. "I was dragged and kicked about the floor," ne said, "and called all sorts of vile and abusive names until a sergeant finally came from behind the de?k and stepped betwp"n the superior officer and , me." "This I* one of those outrageous and j ridiculous raids that are being made every day by the police," said Magis trate Corrigan. "There Is absolutely n<>1 evidence here to warrant sn arrest. Of late It has come to my attention that ? the police are making such raids. They ? have got to stop. I have been on the I bench for a good many years and I I have never found conditions so bad a^ ! to-d iv in this respect. "The police are riding roughshod over the rights of the people. I'm not blam ing the officers who make the raids and present these cases I know orders come from superiors and have got to he car- I ried out. These superiors think they are | running the city and can do what they i please, but they are not. Every cltlaen | has his rights and they have to be re- ! spected. They are not lo be assaulted by policemen." The detectives told the Magistrate that they made the raid because of com plaints by women received at Headquar ters, O'Neill testified that when the police entered the apartment they found j the floor littered with torn racing chart-, and slipa. chips and other gambling paraphernalia. in 25 Towns \ Rabies Epidemic showed- Compulsory vaccination was ordered tn Bethel early In the week. ' and it la estimated there are 150 caaes In Falrfleld county, which includes | Danbury. In Milford four cases were) officially reported to-day. A fortnight 1 ngo nearly 151 casr-s had been under treatment in Bridgeport and nearby1 towns nnd the epidemic has since ex tended to more distant places, doubling ; the n'irnber of patients. ANTI-BONUS REVOLT BREWING IN HOUSE DESPITE FORDNEY Three Republicans on His Committee in Rebellion Against Measure. MANY TO ATTACK IT Ex-Representative Good of Iowa Says Midwest Op poses Gratuity. NEW -RAIDS* ARE SOI'ttHT Spanish War Veterans Want! to Be Included in Bene fits of Bill. h.v i.oris skiboi.ii. Sptnal Dispatch to Tub N>.w York lluni.i Nrw York Heruld Kiircnu. I H'aahlnitnn, D. C.. March in. I The fate of the most recent legis lative bonus raid on the public Treas ury and business of the country will be determined on Monday. The Ways and Means Committee of the House will decide then whether to press the makeshift measure pro duced by the Republican members or fall in line with the suggestion of President Harding that bonus legisla- J tion be postponed. The chances are that with every rational avenue closed to them Re publican members will undertake some chiseling and repairing before ordering the bill Reported to the | House for passage, though Mr. Ford I ney will oppose any tinkering. Opposition to the measure will not be confined to some of the Democratic j members, who have instanced their ; disapproval of it, at least three Re publican members will protest , against reporting the bill because it has been pronounced unworkable by I ' Comptroller Crissinger in addition j to being generally condemned by bankers, farmers, merchants and in dustrial workers. Fordney Anniiuiirn) tnunlinlly. When the Republican majority on ! tho committee decided to introduce | the Inmiranoe certificate loan measure I Chairman Fordney announced the de j ciaion was unanimous. It developed to-day that two Republican members, i one of whom was Representative Til j son of Connecticut, vigorously pro tected against the presentation of the scheme to the. House. Since then Rep | resentatlve Mills of N'ew York, a new : member of the committee, has an nounced his opposition to the measure. Hence it is quite certain that In a j full vote of the committee the decision 1 to recommend for immediate passage the latest Fordney plan to tie up the j resources of the country's hanks with unmarketable securities with a lendlnK value of 80 per cent. at the end of three yeors will be far from unani | mous. The Republican members of the Ways and Means Committee appeared to-day to have only a hazy idea as to Just what is going to happen to their legislative offspring. They expected Mr. Fordney to point the way out of the bonus wilderness on his return ; from Chicago, where he predicted for the twentieth time that "Congress j will pass a bonus bill and the Presi dent will sign It." On more than one occasion the President has indicated that the only bill he will sign is one with a sales tax feature, to which the legislative farm bloc Is bitterly op posed, f.no.l Warn* Con?rr??. Bonus advocates received a shock when It became known around the Capitol that former Representative | James W. Good of Iowa, for many years a power on the Republican side, was here and had openly expressed strong opposition to the bonus. Sev eral leaders went to some trouble to sound Mr. Good on the proposition. Fresh from the contact with many people in the mid-West. Mr. Good, with firmness and conviction, told his former colleagues, "The country Is against the bonus and will not sup port a Congress that passes it." "Not half of the soldiers themselves want the bonus." Mr. Good added. "The veterans who are studying the bonus situation see the harm It will do the country, and they are afraid that passage of the bill will put them 'in wrong' with the people. The aver age patriotic former soldier does not like to put himself in the position of cudgeling the country to give him a bonus." Mr. Good was the center of the sev eral groups of Representatives at dif ferent times during the day. and his views otv the political side of the bonus were plainly taken with ;i (treat deal of seriousness. "The tariff delay." he added "Is not half so big a question In th?* minds of the people as the bonus." Fordney still Rnthnalnstlr. On returning to the national capital - to-night Mr. Fordney did not brine with him n new Inspiration to assist his harassed bonus associates in solv ing the aggravating problem He did return, however, with unabated en thusiasm. In announcing that the meeting of the committee called for to-morrow will he postponed until Monday he declared the people bo. t.ween here and Chlrago "are unani mously for the bonus." If" has said Continued on Tune Two. / - \ Harding to Veto Bonus Bill If It Reaches Him Special Dispatch IoTijc Ntw Ycik Hbbai.u ST. AUGUSTINE, Fla., March 10.?If Congress passes the bonus bill F'resldent Harding will veto it. He hua left no doubt in the minds of the members of his vacation party that this is his in tention. He will not be forced by the House Republicans into a public announcement In advance that he will veto the bill, but he has made his attitude perfectly clear to Sec retary Weeks. Attorney-General Daugherty and Speaker Gillett of the House. The correspondent of The New Yokk Herald is able to state au thoritatively that the President's Cabinet is practically unanimous in advising him to veto the bill. But the President doubts that both branches of Congress will delib erately pass the measure in the face of the opinion of Secretary Mellon, Comptroller Crissinger and financial authorities in the Senate that it will disrupt the nation'.-. finances. Nevertheless he is ready to "face the music" if he is called upon to exercise his constitutional authority to veto. V U. Sl RHINE CLAIM TIES UP REPARATION Allied Ministers Are Forced to Stay Division I'ntil Com mission Acts. $?241,000,000 IS SOI (HIT Decision Kxpected To-da.v or Sunday?Meantime German Mold Lies Tdle. Kpfital t able In Tim New Yohk llmin. Copuright, I9!t, l>u The Nhw Voik Hkkai.d. New Vork Hrrald Hnrmn. > Paris, March JO. ( Alter having decided, earlier in the day. lo distribute Germany's first bil lion gold marks of reparations pay ments among the Allies, leaving the t'nited States to whistle for nearly a billion marks ($241,000,000) due to her for expenses of the American forces in Germany in the Cobienz area, the Allied Finance Ministers decided to night not to enter the earlier decision in the official minutes of the confer ence until advice had b*5en obtained from the Reparations Commission. With the demand for payment, of the American claim presented yester day by Roland W. Boyden, American ' observer at the financial conference, will be presented the suggestion that the Reparations Commission approve and define the limits and the terms of a loan to be floated in international markets by Germany, not only to cover the American claim, but repara tions payments for the immediate fu tMH, - , The Allied Foreign Ministers ex pressed astonishment at the sudden ness of the American move, professing that they never liad received any inti mation. official or otherwise, that the Unlt.-d States intended to make a claim on the first billion marks collected from Germany. And by referring simul taneously this claim and the loan pro- j posal to the commission. It is assumed, the Allied Ministers are opposed to the United Statt-s sharing in any of Ger many's payments to date. Minister* Klimllv I onvlneed. Mr. Boyden's argument convinced the .Ministers that the United States was serious In demanding payment, which decided them instead of closing the financial conference to-night to await the decision of the reparations com mission to-morrow or Sunday. According to the proposed division of Germany's fhst billion Great Britain j would fOO.'MO.OOO marks. Belgium 330.000.000. Franco 140,000.000 and Ituly ' .10,000.000. The only comfort proposed for the j United States was apparently that she might get her .*xpenses for the Rhlni> 1 occupation later on from Germany out of the International loan, the flotation i of which necessarily would depen.l ) laraely upon American mart.ets. trpnriitr Prnee Hroiithl I p. The American claim Tor the cost of her Arrnv of Occupation official!* brought up for the first time hire the inter-I'latlonship of Berlin, the Versailles "ire.itles and the question ot what part nership, if any, the United States now i has with Its associates by reason of it* separate P?Ke negotiations The Ameil .?an <l?lm was based upon the ctaus- In the treaty concluded by the ITnltcd States and Germany wherein the j I'nlt. d States reserved the rlirhls ac corded It by the Versailles treat*. The meeting here, however. has brought out the Net thai t tit Allies never conceded this, and that their eon sent to such reservations as the I'nlted Stat s made In the Berlin treaty never , was asked or granted As undet th . Versailles document the cost of o<>upa M?n com?w ahead of ac tual re >aratlona, the Allies simply have counted the United States out of their application of this part of the Versailles treaty, al though the Am?rkjan arguments all were ' addres?ed to the rwilnt that the I'nlted States should be Included In the <11 vi- j sion of payments by Germany, U. S. IS DETERMINED TO PRESS JUST CLAIM Will Not Permit Move to De lay Its Payment. Sprit at IHtpatch to Tub New Tn?n Hmti.n ?? \nrk Hemltf Hureaii. I Washington. D. March to. f State department officials to-night said they had received no confirmation i of reports to the effect that the Al- I lied Finance Ministers at Paris at first 1 had refused to allow the claims of the j I "tit In tied on Pate Two. BRITAIN ARRESTS ? GANDHI, CHANGING ITS INDIAN POLICY ' | Noil - Cooperation Leader's Capture Follows Closely! Resignation of Montagu. VTCKROV LIKELY TO GO Step Only Delayed Because Prince of Wales Is Still in Country. FEARIMi FOR HIS SAFKTY Llo\ (I George Furious at Soo* retarv's Blunder ? Lord Derb\ May Suceeed. Sp,rial Cable to The Sww Vokk it. Copin iffht. bj The New Yobk In x New %ork Hrrald Rm ? I ondon. Man Mohandas Karamehand Gam Indian Nationalist noil-coop at > leader whose professed objec overthrow British rule in Ind t, arrested to day on a charge tedi tion. This act of the India eminent, immediately following tho resignation of Edwin S. Montagu, Secretary of State for India, marks a most significant change in th* British policy in Indian affairs. In this connection it is widely pre dicted that the Viceroy, Lord Read, ing, will resign also. It is believed in well informed circles that this step on his part is delayed only be cause the Prince of Wales still is ia India and to await more nearly com plete information on the circum* stances which brought about the sen sational retirement of Mr. Montagu, after he had authorized the publica tion of the Indian Government's note forwarded to him by Lord Reading, requesting the restoration of Turkish rights in India and the Near East. The announcement that Gandhf had been taken into custody has oc casioned some apprehension over the safety of the Prince of Wales, be cause it is feared that the .native ex tremists will attempt strong meas ures of retaliation. I.lojd GrorKr Cbfrrfnl. Although there Is general oatiefao tlon over the resignation of Mr. Mon tagu, the consequent breach In tM Cabinet has caused tho political pot to boil. But in the midst of it all Prim* Minister L.loyd George is as buoyant as ?ver. Accompanied by his wtti and his daughter Meegan, he has de parted for Criccieth, in Wales, on a fortnight's holiday. He has taken along a number of Welsh hymns, which he says he wants the homo folks to play, and also his Ashing tackle. He says he intends to take a complete rest. The name of'the Earl of Derby is persistently onpccted with the gossip as to the next Secret 'v India. It is open gossip to-day thi % long time there has been diss tion in the Cabinet at I^ord R' n* manner of handling recent e- < India. There is general cc that he has shown indecision ? J tW log with the Indian agitators, ?; f though the arrest of Qandhi w ? ? ? ticall.v promised by the "Gov t several times as Imminent, * ahv.iy.s put off. I.ortl Itendlna Llkrl) <<? Technically, it Is agreed that ihe u rident which brought about the fail of Mr. Montagu does not involve ixyni Reading, while the Viceroy was anx ious to get the Indian Government"* state mat urging the revision of tin* Sevr?-< treat)- published, he proceed*"! along strictly orthodox lines and ?** waiting until he had authority. He had asked Mr. Montagu t.. obtain the con sent of the British Cabinet before pub lish itiK' the telegram. Tnere is no crlll i ism m this respect, bui it Is pointed out that bad sanction for publication l<eeti rofum .1?as now it i? plain such sane tlon would have been refused?the posl. tlon <<f the Viceroy would have been made extremely difficult The friends of Lord Readinc think that when be real tfles exactly how tiie I'abinet felt about his requf-'* '<i publish tne manifest" ? will promptly decide to place his rewnr* nation In the King's hands?as soon, that i?. as the Prince of Wales lejuiyi India. It is admitted In Governmental eir cles lo-da.v that Mt IJovd George furlou- at Mr. Montagu's ' blunder '? he cause 'if 'be "incalculable injur) ' tho secretary's action might inflict upon tbo necotlations in Pari* over proposed re visions of the treaty of Sevres. t lltiiat Henetied In India. It is believed the incident has hrouB^t to a head the premier's perturbation over what be has regarded as the tris. management of Indian affair*, both In India and in the Indian Office at home, because those affairs had l>een driftlug from bad to worse The situation l?| the Cabinet already was delicate when Mr. Montagu precipitated the cri?i?. There Is decided belief tbst the matter* will g<> further, and the Pall Mall (Ja ?rttr, which always Is close to the Gor ernrncnt, says Lord Reading's resigns, tlori is Certain. This paper declare* ?dl torlally ? "The resignation of the Viceroy la n<* less to he desired than that of the <Je- v?. tary of Utate for India. I/ord Heading has had a fair trial In that office (ths Vice royalty) and itis high motives can not distract notice from the plain fact of ti'r failure " Mr. Montagu's successor |*???bnht. * Ik named to-morrwa, lieoausc tht l")w?