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The New York herald. [volume] (New York, N.Y.) 1920-1924, March 11, 1922, Image 1

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MAR 13 1922
change in temperature.
Highest temperature yesterday, 46; lowest, 36
Detailed weather reports will be found on editorial pace.
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
TO GAIN $7,600,000
There Is Also Hint That
Action Is Move for a
Way Sought to Forestall
Double Fare in Split of
Three Lines.
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
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
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
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.''
j All Financial 3Ieasnres, Except
$100,000,000 Loan, Headed
for the Rocks.
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
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
"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.
She and Woman Compan
ion, Armed, Captured in
Barricaded Room.
1,000 Bottles of Whisky
Found?Band Had Three
Tracks to Canada.
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
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.
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.?
Denies Influencing Accuser to
Recant Charge of Bribing
Tammany Politician.
Untermyer Threatens to Ask
Grand Jury Inquiry to Clear !
Queer Points,
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
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
One of 33 Raid Victims Is Ad
vised by Magistrate Corri
gan to Get Warrant.
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 ,
"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
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.
Three Republicans on His
Committee in Rebellion
Against Measure.
Ex-Representative Good of
Iowa Says Midwest Op
poses Gratuity.
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
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
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
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.
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 '
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,
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.
' |
Noil - Cooperation Leader's
Capture Follows Closely!
Resignation of Montagu.
Step Only Delayed Because
Prince of Wales Is Still
in Country.
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
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
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?

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