The New York herald. [volume], March 15, 1922, Image 1

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on
WEATHER FORECAST.
Unsettled, probably rain and somewhat
colder to-day; to-morrow fair.
Highest temperature yesterday, 58; lowest, 43.
Detailed weather report* will be found on editorial page.
THE NEW YORK HERALD
(COPYRIGHT, 1 9 2 2. BT THE SUN-HERALD CORPORATION!
VOL. LXXXVI.?NO. 197
-DAILY.
THE BEST IN ITS HISTORY.
The New York Herald, with all that was
bes% of The Sun intertwined with it, and
the whole revitalized, is a bigger and better
and sounder newspaper than ever before.
NEW YORK, WEDNESDAY, MARCH 15, 1922 ?1EN^PEn A3 SECOND CLABS MATTBR
POST OFFICE. NEW YORK. N. Y.
PRICE TWO CENTS
IN NEW YORK CITY.
THREE CENTS
WITHIN UOO MILE*.
FOUR CENTS ELSEWHERE!
American Exchange Trad
ers 'Cross Fingers to Cross
Their Orders.'
FEW BALES AVAILABLE
Boy Shows His Job Was to
'Borrow' Quotations From
Old Market.
PRICKS ALWAYS HIGHER
Southern Customers Called
Chief 'Suckers' for Pre
arranged Deals.
The brokers of the American Cot
ton Exchange do 90 per cent, of their
business with their fingers crossed,
?ind usually on prices three, four or
Ave points in advance of the recog
nized cotton market figures of the
.New York Cotton Exchange, accord
ing to the testimony of witnesses yes
terday before Chief Magistrate Wiil
urn McAdoo at the John Doe inquiry
into the bucketing charges against the
\merican exchange.
The Irony of the story told by thoftt
witnesses was that a broke* in making
i trade on the floor of the exchange
with his Angers crossed meant just
exactly what the gesture popularly
symbolizes?namely, that he was not
really making a trade, but "crossing"
a sale, which is the lingo of the ex
change for bucketing.
The finger crossing trick is not lim
ited, but is the universal gesture of the
entire membership of the exchange, ac
cording to the testimony, and that is
the ease not necessarily because a broker
deliberately desires to bucket his fcus
tomer's order but for the reason also
that frequently it is impossible actually
to buy a bale of cotton in the American
? xchange, though actual delivery of cot
ton may be effected at any time on the
New York exchange, across the street.
Why H IMic Tried to Bay.
The testimony revealed that It was that
Inability to buy cotton on the American
exchange that brought about the pro
uosal, disclosed at Monday's hearing, to
buy 15,000 bales through the New York
exchange for sale to American exchange !
brokers when conditions made an ac- !
tual purchase of cotton imperative.
One concern?the Mathewson Trading :
Corporation, financed by Randolph Rose '
.Son?actually was created to have cot- i
ton available for delivery. It was when
that concern ceased to function that
conditions became so -terrible" on the
American exchange that the proposal to
Mly a supply for the relief of "short"
brokers was made. The plan, however, I
was never carried out.
The sequel to the finger crossing deals !
of the American exchange brokers lies
south of Mason and Dixon line. Va
rious Brokers, formerly members of the
American exchange, told of how the |
American exchange specializes in South- ;
ern clientele.
One broker said of his hundreds of i
customers he had Just two north of the 1
Potomac River. It was then described !
how the chances of those clients to i
escape the conseuqences of bucketing are
virtually nil. Glowing literature de- i
signed to "hook" the Southern trade was
introduced In evidence.
Bor Obtains Quotations.
Th* hearing also solved the mystery
of how tba American exchange obtained
the New York and Liverpool quotations,
which it marked up on its quotations
hoard in the ring room. It whs brought
out that the American exchange had
negotiated in vain with the New York
exchange to obtain its quotation ser
vice.
Then Howard Thayer, a seventeen
year-old boy. now in the employ of A.
A. Housman A Co., of the New York
exchange, but until a month ago board
boy of the American exchange, took
the stand and told how the trick was
turned.
That, he said, was by the simple ex
pedient of calling over a tslephone at
Ills elbow while he stood at the board,
ohalk In hand, any one of a number of
New York Cotton Exchange brokers
who "gave him the market." He said
he had a N'SW York Cotton Exchange
house on the wire getting quotations
virtually every minute of the trading
hourav so that the New York exchange
ii?iires went on the American board
within a few *?conds after they ap
peared on the New York board.
At the time he left the service of the
American exchange he had four houses
which he called regularly for quota
tion, he said. Thayer mentioned Ice
land & Co., ("lark A Co. and Peers as
among ihose from whom he got auch
information.
Witnesses Tell Same fttory.
The alleged bucketing methods preva
lent m the American exchange were 1
described In virtually Identical detail by
Hsmuel Landecker of Ormsbee A I?an- I
(It c l<er and William B. Wilson and J. ,
Jt. Watson, all formerly members of th?
American exchange, who said they got
out of the exchange because they found
It impossible to do a legitimate commis
sion business in that exchange.
Wilson and Watson were partners In
business. All three said they resigned
after repeated protests to the officer*?
A. W. Graham, president, and O. W.
Pratt, secretary?against the alleged
practices without avail. They said they*
?were always put off with promises Of
Improvement of conditions.
One of the "encouraging announce
ments." according to Landocker, was
that "one of the biggest brokers in the
Htreet is coming In and will put new life
In things." That concern, hs said, later
proved to be J. B. Simartr.an & Co..
Whli h since has failed, owing creditors
?500,000. Joseph H. Sugarman nmv Is
?ml r Indictment charged with the lar
ceny of one of Ills client's securltlm.
Ivandecker described Pratt as "the
man who held the house of cards to
gether." The witness said he and scv
Coatinned on Page Mix.
Thentrleal and HntH and Restaurants,
Advertising will be found on Page 12.-Adv.
Parents Not Responsible
for Boy's Hurts at Play
CHILD'S parents cannot he
he may inflict on his play
mates when the child acts Without
the parents' knowledge. Justice
John MacCrate ruled yesterday in
the Supreme Court, Long Island
City. The decision was rendered in
the action brought against James
Casey of 1418 Perry street, Wood
haven, by Joseph Mamane, a neigh
bor.
Marnane asked $20,000 damages
for his son, one of whose eyes, he
charged, was injured when Casey's
son shot at him with a bean shoot
er. He sought to establish that
Casey permitted his son to play
with a dangerous weapon, and
therefore was responsible for the
damage the boy caused.
V /
M'ALLISTER'S NIECE
IN LIVELY RUNAWAY
in Peril When Automobile
Scares H,er Cab Hone.
HORNS ADD TO FRIGHT
Policeman With Taxi Hems
in Animal in Centre of Long
Acre Square.
Seventh avenue from the southern
end of Carnegie Hall, at Fifty-sixth
street, into the middle of Longacre
square was thrown into an uproar Just t
before 11 o'clock last night when an j
old fashioned cab horse driven by John |
Carroll of 315 Bast Thirty-seventh ;
street took the bit in his teeth and j
ran until two taxicabs ranged up to;
"squeeze" him Into a halt and his legs |
began to wobble.
In the swaying closed cab to which :
the frightened animal was hitched was
Mis? Julia G. McAllister, niece of the
late Ward McAllister, society leader.
Miss McAllister was uninjured, but
she was surprised at the horse's long
dash and said that for the last twenty
years she had considered herself per
fectly safe behind him.
Carroll, who Is one of the few sur
vivors of the old guard of cab drivers,
toTd the police his horse would have
lived up to Miss McAllister's expecta
tions of what he should do but that an
automobile struck him and caused him'
to take fright. The collision, which was
only slight, was enough to break one of
the shafts and the loose end of wood
banged against the horse's hind legs,
tickling him and causing him to drop
his usual calm air.
held responsible for injuries
Old Time Society Leader's Kin
Follow* Lonxtlmr CdkIoih.
Miss McAllister, who is advanced in
years and who has apartments at the
Iroquois Hotel, 49 West Forty-fourth
street, went to Carnegie Hall last night
to attend the concert of the Philadelphia
Philharmonic Society. Following her
long established custom she had Carroll
take her there and call for her at 10 :30.
As Miss McAllister got into the cab
Carroll, looking around and seeing the
road clear, started to turn from Fifty
sixth street into Seventh avenue. The
automobile turning at the same time
humped the horse. The bump and the
breaking of the shaft upset his temper
and the dangling bit of wood did the
rest.
Halfway between Fifty-sixth and
Fifty-fifth streets the horse reared.
Carroll, Miss McAllister said, spoke to
him several times but no attention was
paid to his command. Then Miss Mc
Allister leaned out a window and spoke
to the animal. He only reared some
more, jumped a couple of times and
then broke Into something between a
lope and a gallop.
Carroll sawed at the lines, but found
he could do nothing. He took the time
to turn and reassure Miss McAllister
and th?-n looked around for a policeman.
At Fifty-first street Policeman Daniel
Eberle of the We??t Forty-sevnth street
station tried to head off the runaway.
Joat Minn Catching Animal.
A loud chorus of automobile horns
and sirens sounded by chauffeurs w>io
were trying to avoid collisions In the
traffic Jam then piling up frightened
the horse and he sprang to the east side
dii the roadway, nearly upsetting the
cab and getting out of Kberln's reach.
Several other policemen missed catching
him.
While the horse continued south
TCberle Jumped to the running board of a
taxlcab. He ordered the chauffeur to
draw as close as possible to the cab.
But John Car roll's old horse was faster
than the taxi and kept ahead until the
north end of Longacre Square wan
reached. Eberle was able to maneuver
his cab and with the help of another
start a ?*squee?ing" movemenr. The
horse apparently recognised the trick
for he slowed down between the two
taxis and stood trembling right out In
the middle of the square.
Miss McAllister had much praise for
the manner In which Eberle outwitted
the runaway, but Just as much for the
way John Carroll handled the situation,
and as she left the scene to go to her
hotel she told the old coachman she
knew the automobile was at fault, that
the old horse wns perfectly reliable and
that both might call for her at the usual
time this morning.
PRESIDEN1 STARTS NORTH.
He and Mrs. Harding End Monsr
hoat C'mlse In Flhrlda.
Pai.m FUcach. March 14 (Associated
Press). ? President and Mrs. Harding
ended their house bfcat cruise in Florida
water here to-day and started bark
North. They expect to reach St. Au
eustlnc by train to-morrow and after
a stop there of two days to depart for
Washington Friday.
The President played two rounds of
golf during the ilnay. His plans as
first announced included a Ashing trip,
hut golf was substituted.
Or?enbr1er. White Sulphur Rprtngs, W. Vs.
Championship Bnlf. Both courses open. The
saddle. t?nnl*. swimming and the cur*. Orer
nl&ht from Nrw York. Booking*, Plaxa.-^ldv,
SHOT IN FAKE HOLDUP
TO SHOW MERITS OF1
BULLET PROOF VEST
Steel Protection Plates Get
Misplaced, Leaving Open
ing: for Missile.
VICTIM'S CONDITION BAD
Pierpont Potter, Officer of,
TJ. S. Armor Corporation,
Hart Done Trick Often.
FIRST ACCIDENT OF KIND!
Money Handlers of Third Ave-!
nue Elevated Line Witness
Accident.
Pierpont Potter, sales manager for
the United' States Armor Corporation,
arranged a fake holdup in the base
ment of 104 Front street yesterday
afternoon to demonstrate the bullet
proof qualities of a steel plated canvas
vest manufactured by his firm.
He was showing the device to three j
employees of the Third avenue ele- ?
vated railroad, all trusted men who
are in charge of the collection of
money from stations and the handling
of huge sums for pay rolls. They had
been sent to witness the test, it was 1
learned, because the railroad company
is anxious to protect them from at
tacks by bandits and the vest had b??en
suggested as a safeguard.
The railroad employees, with George
.W. Smith, one of Potter's salesmen,
stood back gainst the wall to be out
of the path of revolver fire. Edmund i
McGrath of 2540 Boulevard, Jersey
City, Potter's assistant in demonstra- '
lions, had the role of bandit and was
armed with a ,32-culiber revolver,
while the sales manager, playing the
part of the victim, wore one of the
vests.
I
Remly lor Attack hy Thief.
"Mow watch carefully." shouted Pot
ter to the gallery. "I walk along the
street Vfcith a bag of mon?-y. Th?? thief
springs at me?come on Mac, come at
me?and I get ready for him."
McGrath leaped at Potter, whipping a I
revolver from his pocket. "Hunds lip!"
he said.
"He says 'Hands up!'" Potior con
tinued, reaching out to grapple with
McGrath. "I go at him and he shoots?
shoot Mac."
McGrath fired. Potter staggered and
screamtd with pain and then collapsed, i
M?Grath hurled the gun Into a corner
and raced to the street and then to Old
Slip station, where he found Patrolman
Marshall Smith and Detective Dunp'ny.
"I've shot a man accidentally." he
told tV< m. He led them to the basement
of the Front street building, where they ?
found Dr. Gibson of Broad Street Hon- I
pita! already at work over Potter. .Pot
ter was losing consciousness, but before
lie was taken away to the hosplta! he
lagged the detective not to arrest Mc
Grath.
Victim Aluolfru Shontfr.
"Dor.'t arrest him. Hp didn't rr.ean
to hurt me. Mac and I are old pals."
At Broad Street Hospital It was paid
that Potter's condition was critical. The
bullet passeg through his stomach,
lodging In the tissue near the spine. It
was extracted.
An inspection of the steel plated ve*t
showed that the bullet had passed, not
through the steel but between two of the
three broaxl overlapping pi a tea used In
protecting the chest and abdomen, Potter
the spectators said, raised his bands and
took a breath as If in preparation for a
struggle Just as he told McGrath to fire.
The inflation of his lungs and the rais
ing of his arms expanded his chest
enough to cause the overlapping plates
to spread apart a smull fraction of an
Inch and It was through this space that
the bullet went.
The office of the armor corporation Is
[ at 43 Exchange place, but Potter had
? rented the basement of the Front street
building for Uf*e as a demonstration
{ chamber. He and McGrath had held
i scores of fake holdups for the purpose
l of showing the value of the vest and
i yesterday's accident was the first.
Steel Plates Tarn Ballets.
A few minutes before the fake holdup
Potter had placed a plate of the steel
against a block of wood and fired bullets
at It to prove It would turn them and
not even suffer a dent.
Detective Dunphv questioned Me
Grath as well as the railroad employe"#,
William Kills, guard on the money car;
; Frank J. Buechler. collector, and Will
iam .1. Campbel, chauffeur of the auta
; mobile used In handling big sums for
the pay rolls, Later John R. Hennls,
! Assistant District Attorney, had them
go over the facts. He and Dunphy aaid
1 they were satisfied McGrath was not to
blame.
Potter's home It at B5 West Eighty
; fourth street. He Is 36 years old and
1 unmarried.
ATTACKS RICH WIDOW
IN LONDON HOTEL
Burglar Enters Room of Lady
White?Fractures Her Skull.
London', March 15 (Wednesday).?
| Late editions of the morning newspapers
<ny that Lady Alice White, widow of
Mir Edward White, late chairman of the
London County Council, who was found
unconscious In a London hotel Tuesday
morning, regained her faculties for a
brief period during Inst night. She as
serted that a burglar entered her room
through a window and struck her
A woman occupying a room adjofhing
that of Lady White said she lienrd a
scream after Lady White retired Mon
day evening, but she did not know
whether It came front the hotel or the
> street The assumption la that Lady
White shouted for help, whereupon the
Intruder struck her on the head ahd
' escaped. Lady White's skull was frae
i tured and she is In a critical condition.
Germany's Floating Debt
277,320,000,000 Marks
BERLIN, March 14?It was an
nounced to-day that the
floating: debt of Germany on
February 28 was 277,320,000,000
marks.
The total debt of Germany on
February 10 amounted to 259,127,
311,000 marks, which represented
an increase of about 3,600.000,000
marks since February 1.
V J
40 P. C. LOAN BILL
DEFEATED IN SENATE
Vote Foreshadows Death of
Other Lockwood Insurance
Investment Measures.
$100,000,000 BILL PASSED
State Trade Board Measure
Reported, and Two Rent
Bills Go Through.
Special Dispatch to Tun N'ew York Hbhald.
New York Fleruld Bnrraa, )
Albany, March 14. |
The Senate to-night beat the Lock
wood housing bill requiring Insurance
corporations to invest 40 per cent, of
their investiblp funds in real estate
by a vote of 24 to 24.
Senator Lockwood asked to be ex
cused from voting on the ground that
he has been an attorney for insurance
companies. The only absentee was
Senator JCavanaugh (Hep.) of Sara
toga. Nearly all of the New York city
men of both parties voted for the bill.
A motion to reconsider the vote was
made, but It will be impossible to get
the necessary twenty-six votes.
The housing bills requiring life in
surance corporations and savings
banks to invest 40 per cent, of their
funds in real estate were not reached
to-night, but will undoubtedly meet
the same fate.
Karlier in the session the Senate
passed the $100,000,000 Metropolitan
Life housing relief, and the bill to cre
ate a State trade commission?a meas
ure which Samuel Untermyer regards
as vital?was reported from the Cities
Committee.
There were seven votes for tlie trade
commission hill and only eight were
r.eeded. Senator Henry G. Schackno,
Democrat, of New York, was absent.
Commission It 111 Reported.
Senator Gibbs told Senator Lockwood
?they have inaue up their differences
since Sunday night?that if Senator
Schackno would say he favored the
bill it would be reported out. Senator
Schackno arrived inter, and early tills
evening the Cities Committee reported
out the trade commission bill. The only
absentee was Senator Kavanaugh of
Saratoga, who Is opposed to it.
When the State Trade Commission
bill was reported to tile Senate to-night
by the Cities Committee Senator Frank
L.. Wlawall of Albany refused unani
mous consent for Its advancement to
the order of final pasf-ase. This action
throws It Into gercral orders and a spe
cial rule will be required t<> advance
it. Senator Lusk, the majority leader,
declared such a rule would lie brought
in.
The two other bill* left In the Senate
Cities Committee are dead for this
session. Under the rule.#bllla which are
voted upon adversely cannot be pried
out of a committee on a motion to
discharge. Such a motion only can be j
made on bills on which no action has
been taken by committee.
The Senators will be compelled to ;
record their votes on the trade com
mission and other houslnx blll? re
ported. The trade commission bill is
the one for which Mr. TTnterm.ver made
his big fight last week, and he over
came Gov. Miller's objections to It.
The measure creates a State Controls- i
slon similar to the Federal Trade Com
mission, with authority to Investigate
and prosecute lllegnl combinations In
trade. Mr. t'ntermyer has told the
Legislature that only through such a
board can the monopoltes, such as he1
has uncovered, be I roken up. The
courts hare failed, lie said, and the
Federal Government i annot break the
grip of the combinations in New York
I.link Avnlnut Triulc lliinrd.
Senator l.usk and others In the cities
committee who voted to report out the
Trade Commission and other hills have
Indicated they do not favor the meas
ures. The leaders decided It would be
beuer to get the bills out for a record
vote rather than to give rise to the
charge that they were strangled In
committee.
It now seems practically certain th? [
Metropolitan bill and the five rent bills
will pass both houses.
The Senate to-night pass d two of the 1
emergeroy rent bill*. One provides that j
where rent is paid for three months In
three monthly installments, nt the time
each installment Is due, no question of
unreasonableness can be raised. This
was Introduced to offset a favorite
dodge of landlords In demanding three
months rent In advance.
The other bill extends the period In
which homes may be built to enjoy the
tax exemption law for another year.
The Assembly passed the bill per
mitting mutual Insurance companies to
write casualty Insurance.
UNTERMYER COUNTS
ON GOVERNOR'S AID
Expects Emergency Message
if Needed to Save Bills.
Tn face of pessimistic reports from
Albany flint many of the Ix>ckwood
housing bills wonlil be smothered In
committer. Samuel Untermver, counsel
to the Hollaing Committee, expressed
confidence yesterday that the legislative
program eventually would be put
through, especially If the bills could be
brought out on the floor of the As
sembly for debate.
The discovery of two "Jokers" In the
bllla nullifying to a great extent their
effect, which Mr. Untermyer charges
were Inaerted by th* Insurance lobbylata
In A'bajiy. has made It neceaMry to
Contlnnrd on Pare Six.
Warnings of Mellon, Criss
inger and Gov. Harding
Are Cast Aside.
amendments beaten
Fordney Prevented bv Bi
partisan Group From Hav
ing Immediate Action.
HEARING FOK TWO 1101'RS
Sales Tax Defeated 19 to 5
and Straight Cash Gratuity
Scheme 18 to 6.
By ions 8KIBOLD.
Special Dispatch to The Nftw Tobk Hb*ai.t>.
New York Hernld Hawaii, )
Washington, I). C\? March 14. )
The bonus raid on the public Treas
ury and business of the country was
started on its legislative care?r this
afternoon by the Ways and Means
Committee of the House of Repre
sentatives by a vote of 19 to 5.
The certificate loan plan bill was
ordered favorably reported by tbte
Ways and Means Committee within
ten minutes after Secretary of the
Treasury Mellon, Governor Harding
of the Federal Reserve system and
Comptroller of the Currency Cris
singer had expressed their disap
proval of it.
Even the convincing statement
from Palm Beach that the President
would veto the measure did not dis
courage the bonus members of the
Ways and Means Committee, al-,
though it was accepted as genuine.
The weight of Senatorial opinion
which was overwhelmingly agains
the latest bonus proposal, likewise
fell upon unwilling ears.
The vote on the bill was brought
about by Chairman Fordney and Ma
jority Leader Mmdell, who were de
mn'iMO io -tux- "m
the House resnr<lle?? ot tbe .mention
of merit, feasibility or political wis
dom. and in defiance of tremendous
public opinion.
Only Defen..- ?f Action.
The onlv defense made of the action
of (he committee is that members of
Congress promised "the soldier boys
lo pas8 ? bonus bill, and that the
promise must be kept, whether it
costs the people of tho country ?a.000..
000.000 or untold billions beyond the
point of ordinary computation.
Before the bill was reported Mr.
Fordney met with a decisive defeat at
the hands of a combination of Repub
lican- and Democrats associated on
,he committee. This group voted down
hi* proposal to report the bill without
amendment or seeking further infor
mation from competent Treasury of
ficials as to the adverse consequences
of the legislation to the Treasury an
the Dfoplt? of tbe country.
Seven Republicans and six Demo
orats not only voted to hold the bill
open for amendments, but directe
the chairman to invite S-retary M, -
lon and other officials of his depart
ment to discuss the bill, to which eac
had presented substantial and logical
object ions.
Forilnry Konirwhat <it'crctl?f,
After the three Treasury Depart
ment official* had repeated their clear
cut and positive statements previously
made, the political arguments pre
vailed and the hill was ordered re
ported. Just what is going to happen
to It is problematic. Mr. Fordney
would not disclose his plans beyond
saying the measure would be per
fected in the next day or two. re
ported and pressed to a vote next
week.
The plans of the bonus members of
Congress, whose only concern Is to
record themselves In favor of the
bonus, and regardless of Its ultimate
fate, depend somewhat upon the atti
tude of Speaker Glllett. The Speaker
Is on a holiday with President Har
ding in Florida. His cooperation Is
essential to the success of the proced- j
ure fav,ored by Majority Leader Mon- j
dell, who is quite as determined as1
Mr. Fordney to ignore the advice atid
Judgment of President Hatding and
Secretary Mellon.
The majority leader Is working hand
and glove with Mr. Fordney to pre
vent amendment of the bonus bill dur
ing Its consideration In the House.
Apparently authentic Information came
from Florida to-day that the Speaker
would not stand for the adoption of the
"gag rule" fav ored by Mr. Fordney!
and Mr. Mondell. If he persists In
this attitude the two bonus leaders
either will have to take the control of
the House from the Speaker or assent
to the regular proepdure governing
legislation.
Information. Pathos nn<| Hathna.
For two hours this afternoon Secre
tary Mellon and his associates In the
Treasury answered questions with
facts while the members of the com
mittee argued and made hrlef stump
speeches replete with both pathos and
bathos.
Secretary Mellqn. with a little cigar
between his fingers, stood before the
committee and repeated substantially
what he had said In his letters to Mr.
Fordney. Tie refused to be drawn Into
Confirmed on Pare Tiro.
TREATY AMENDMENT LOST "
BY TEST VOTE OF 55 TO 30;
RATIFICATION IS ASSURED
WHY FEDERAL FINANCIAL
EXPERTS OPPOSE BONUS BILL
Special Dispatch to Tub Nbw York Hera id.
New York Herald Bureau. )
Washington, I>. Murrh 14. I
rW^HESE reasons were advanced by Secretary Mellon, Federal
?* Reserve Governor Harding and Comptroller Crissinger in ex
pressing their disapproval of the bonus bill ordered reported by
the Ways and Means Committee this afternoon:
SECRETARY MELLON:
If a bonus bill is passed the preferable way Tto finance it! would
be by a graduated sales tax, but taxes are now as burdensome as
the country should be asked to bear.
The reclamation Hand settlement! feature of the bill is a very
indefinite and uncertain proposition, and to carry out its provisions
It would undoubtedly cost a vast sum.
Banks will hesitate in making loans on such slow paper?the
insurance service certificates.
The passage of the proposed bonus bill would have a tendency
to stimulate business for a short period, but reaction would surely
set In.
COMPTROLLER CRISSINGER:
If my advice is requested by national banks I would advise
them not to make loans on insurance certificates.
I know of a lot of banks which cannot loan one-tenth of 1 per
cent, on long time securities.
It is unbelievable the amount of doubtful paper some of the
banks now carry, and if we were not very lenient many of them
would be forced to close their doors.
GOVERNOR HARDING:
I believe the certificates will be a good thing for the service
men. but I don't believe they will help the banks and business of
the country.
Our interest in the [bonus] proposition is to see that the banks
do not get overloaded with unliquid securities.
Our only concern is to protect the Federal Reserve system.
RESERVE U. S. CLAIM
FOR RHINE TROOPS
[{('partitions Commission Re
fers Matter to Allied Gov
ernments for Action.
\\ VSIIIXOTOX OPTIMISTIC
Peems Report of Opposition of
Allies to Reimbursement
as Incredible.
Sp'rial HiKpatth In Tits Nrw Yosk IIriui.d.
New \ork Herald Bureau, |
Washington. I>. March 14. (
The State Department has been in
formed officially that American rights
to reimbursement for the co?t of main
taining- an army of occupation on the
Rhine have been reserved by the allied
Ministers, to whom the American
claims were presented.
This action is understood to have
beer reported by Roland W. Boyden,
the American unofficial representative
on the Reparations Commission, who
presented the American claims la-st
week.
The status nf the American claims
now. as understood in official circles
here. Is that they have been brought
to the attention of the Reparations
Commission and that body, deeming It
self incompetent to pass upon them,
has taken due note of the case of the
United States and referred the matter
to the alli?"J Governments.
I< eeou nlt loti ?lie Point.
Recognition of the Justice of the
American claims for reimbursement Is
the point upon which this Government is
chi^tly concerned, such questions a?
those of tehms and date of payment
being regarded as secondary. What the
United .States objected to was the ap
parent Intention of *th?; Reparations
Commission to proceed with the work
of parceling; out the reparations funds
without paying any attention to this
Government's rights.
When It appeared that such was the
commission's intention this (Jovernment
"merely riled a caveat, so that it couldn't
be said that the United Slates had
acquiesced In what they were about to
do." a high Administration official ex
plained.
It was emphasized again that all the
proceedings thus far had been conducted
in the friendliest possible manner, and
officials reiterated their desire that
there should be nothing said which
might embitter negotiations. This Gov
ernment. it was stated emphatically, is
still without any official confirmation of
reports that the allied Governments
think seriously of denying the right of
the United States to be paid, and offi
cials profess to regard It as Incredible
that any allied Government should con
template such action.
(Ideation* Are Separate.
Suggestions that developments brought
about by the presentation of the Ameri
can claims would result In the United
States being actively and officially rep
resented upon the Reparations Com
mission brought forth a declaration
from a high official that the questions
of representation on the Reparations
Commission and of reimbursement for
the American Army of Occupation had
no connection with each other.
The contention that the United Staes
has not assisted in the collection of
reparations is fallacious on the face of
it, officials here contend. It la perfectly
obvious, they asaert, that the presence
of the American Army of Occupation
had a part in convincing the German
Contlnned on Page Two.
I
BIG FIGIfT FOR OIL '
PROMISED AT GENOA
Standard and Royal Dutch Ma.v
Come to Grips in Con
ference.
F BENCH ALSO IN" HANK Eli
Fear Russians Will Give Brit
ish Surplus Production in
Oil Fields.
Hpr? ml l abh tn Tur Nkw Yo?k HjwaUV
l'W, by Tub Nrw Vwk Hbhai-b.
New \ork llrrulit lliirriiu, I
Purl*. Mnrrh 14. (
Tl-e Royal Dutch and the Standard
OH companies are about to come to
grips .it Genoa, according to well au
thenticated reports received here. The
fight will be centered, apparently, over
i he possession of trie South Russian
oil fields, where the Standard Oil Com
pany before the war was paining a
rapid footing. but where since the
British approval of trade relations
with Russia the Royal Dutch com
pany obtained h foothold and is seek
ing now to establish itself more firmly
through th< consortium scheme and
Its resultant concessions.
Tin American Government and pri
vate interests if not unaware of the
danger of this scheme* nevertheless
| have shown little interest in It yet,
but it is significant that reservations
have already been secured in Genoa
by high officials of the Standard Oil
Company and associated enterprises,
who. it is well known here, intend to
make it fight fur privileges despite
America's non-participation at the
conference. t
| A. <Bedford. < halrman of the
Standard Oil Company of New Jer
sey, wlio sailed on the Olympic Mar<*i
11. and Frank A. Vanderli", who left
with him. were reported as going to
attend the meeting of the Interna
i ttonal Chamber of Commerce In Paris
and the Genoa cont*r> nee, v here they
will act, areordin* to an Interview
* ith Mr. VatMlnrllp on the day \>f
his departure, as "unofficial observ
ers" for the I'nlted State*. |
VI ii > He (lasted From Hassla.
The danger is that American interests
will be maneuvered out of Russia as
they were maneuvered out of the Meso
potamlan oil fields at San Remo through
agreements reached by Allied Govern
ments to work through private interests
like the Royal Dutch Company
The fact that French oil interests are
running the siihi>- da nger Is beginning
to be stressed here the ExcttHor In a
long article to-day pointing out that the
Cannes resolution having left the dis
|?osal <>f these fields ? ntirely In Russian
hWnds. tneir plans now ate to constitute
their own practleal organisation and to
deliver to the Royal Dutch group all
surplus production In Russian oil field*.
This newspaper contends that owing
to France not having had direct Influ
ence In Russia for the Inst three years
It will be possible for the Knglixh. who
are already well established, to arrange
concessions for branehes of the Royal
notch company und< r the gulsi of na
tionalised Russian societies.
"The great danger to French Inter
est*," sav.? the K.reelnior, "Ilea in the
; iioeslblllty of an Knglish or some other
monoply plating the Russian oil fields in
I the hands of a single syndicate or trust
in which France will play no part"
[Leon Trotsky In a speech In Moscow
Sunday. (Aid the Baku oil fields were the
Contlnne* on Faro Foor.
2 BALLOTS TAKEN
Efefeat of Robinson Pro
posal Is Followed by
Similar Action 011 One
From Walsh.
DEBATE IS SPIRITED
Williams Stirs Storm by
Charging Partisanship
in World Affairs.
LEXROOT GIVES WARNING
Failure of Compact Ts Monaco
to Nation, lie Says in Re
ply to Borah.
Sprritil Dispntfh to Tub Nbw York Hh*ai.d?
Now York Hera CI Burwui. [
Washington. I). C.. Marrh 14. I
The Senate voted to-day on th#
Robinson amendment to th* tmr
power treaty, defeating it by & tX*
of 55 to 30, showing the supporters
of ratification to be In complete con-)
trol of the situation. Barring unfore
seen incident ratification of the
treaty is assured.
The vote, which proved more of a
test than was expected, showed that
on a trial which required only a ma
jority vote to defeat the amendment
the supporters of ratification had one
vote more than the two-thirds neces
sary to ratify had the vote been on
ratification itself.
In addition to this there were
eleven absentees, the majority of
whom favor ratification. They were
Broussard (La.), Crow (Pa.). Dial
(S. C.), Harreld (Okla), Jones < .
M.), McKellar (Tenn.), Moses (N.
H.t, New (Ind), Owen (Okla.t,
Trammell (Fla.) and Weller (Md.).
Some Democrats who voted for th?
Robinson amendment are expected to
vote for ratification.
The Robinson amendment which
brought about the first test vote pro
vided that the nations declare them
selves against unprovoked aggres
sio'ns ?within the league or outside of
it except that in the event of a con
ference dealing with nations not in
the compact the nations so interested
should be invited to the conference.
The Walsh substiMte simplified this
amendment, providing only that in the
case of trouble in which nations not
' in the compact should be Interested
those nations should be invited into
any conference on the subject that
might Ik? held.
II.the Vole Lined I P
The vote on the Robinson amend
ment. which furnished the test of rela
tive strength, was as follows:
YBAS.
REPUBLICANS. Kendrlck (Wyo.)
Borah (Idaho) King (ttah)
France (Md.) Mvers (iion.)
Johnson (Cal.) Overman (N. C )
l,a Follette (Wis.) I'ittman (Nev.)
IteeU < Mo.)
DEMOCRATS. Robinson (Ark.)
Ashhurst (Ari* ) Sheppaxd (Tex.)
! Carraway ( Ark ) Shields 'Tenn.)
Culberson (Tex.) Simmons (V C.)
Fletcher (Fla.) Smith (8, C.)
Gerry (R I.) Stanley (Ky . >
Glass (Va.)
Harris (Ga.) a, ? v,
i Harrison (Miss) Walsh (Mon.)
Heflln (Ala.) W*U!>"<^)
Hitchcock (Neb ) Total 30.
NAYS.
REPUBLICANS. McNary (Ore.)
Ball t Del) Nelson (Minn.) ^
Brandegee (Conn.) Newberry (Mich.)
Bursum iN. M ) Nlcholaon (Col)
raider (N. Y.) Norbeck (8. D )
Cameron (Arl?.) Norrla (Neb.)
Capper (Kan.) Oddle (Nev.)
Colt iR I.) <Vt->
"iimmlns (la.) Pepper (Pa.)
Curtis (Kan.) Ph1pp? (Col.)
Dillingham (Vt) Polndexter (WaSh.)
Du Pont (Del.) Raw son (la.)
Edge < N. J.) Shortrldr? (Cal.)
Elklna (W. Va ) Smoot (Utah)
Krnst (Ky.) Spencer (Ma.)
Fernald (Me.) Stanfleld (Ore.)
FrelInghuys n(N J.)SterUng (B. D.)
Gooding (Idaho) Sutherland (W.Va.)
Hai, (Me ) Townsend (Mloh.)
Jonm (Wash.) Wadsworth (N. Y )
Kellogg (Minn.) Warren (Wyo.)
Keve" N. H ) WaUon (lnd.)
Lsdd (N. D.) Willi* (Ohio)
Lenroot (Wis.) DEMOCRATS.
Txtdge (Mass.) Pomerene (Ohio)
McCormlck (III.) Ranadall (La.)
A1 cCumber (N. D.) William* (Miss.)
McKInlay (111.) Underwood (Ala.)
McLain (Conn.) Total?66.
ABSENT on NOT VOTING.
REPUBLICANS. DEMOCRATS.
Crow (Pa.) Brouapard (IA.)
Harrrld (Okla.) Dial (S. C.)
Moses (V. H ) Jones ? N. M )
New (Ind ) McKellar (Tenn.)
Waller (Md ) (>wen (Okla.)
Trammall (Fla.)
? Total?11.
Absentee* presumably favorable to
treatv?Crow (Pa). Hafreld (Okla.).
Moses (N. H ). New (Ind.).. Owan
, < tula ), Weller (Md.). Brouaaard (La.).
Dial (S C ). Trammell (Fla.). Total 9.
Presumably opposed to treaty?Jones
(N. M.). AlfKellar (Tenn.). Total 2.
Of the absenteea Broussard. Crow,
Dial. Harrald. Moses. New. Owen. Tram
mell and Weller are listed as favor'n?
ratification. Of tlnaa not voting Jonei