The New York herald. [volume], March 20, 1922, Image 1

About The New York herald. [volume] (New York, N.Y.) 1920-1924

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W?K d\
^8 ^v/vfr<.
WEATHER FORECAST.
Rain and warmer to-day; to-morrow fair
and colder, south shifting to west gales.
Highest temperature yesterday, 45; lowest, 24.
Detailed weather reports will be touud on editorial page.
' /
VOL. LXXXVI.?NO. 202?DAILY.
THE NEW YORK HERALD
icor vr;ght, i#22~, by the sun-herald pr.r or at i o ??) y
r. p o r. a t x o N.l
x THE BEST IN ITS HISTORY.
The New York Herald, with all that was
best of The Sun intertwined with it, and
the whole revitalized, is a bigger and better
and sounder newspaper than ever before
NEW YORK, MONDAY, MARCH 20, 1922.-OTJS??no?c
PRICE TWO CENTS
IN new YORK CITY.
THREE CENTS
WITHIN 200 MIKES
( FOUR CENTS KUBBWHEftE.
UNTERMYER URGES
GOVERNOR TO ISSUE
EXTRA SESSION CALL
Withdraws Attack on In
surance Supfc. Stoddard in
4Joker' Episodes. 1
LOCKWOOD CONSENTED
Counsel Says Chairman Was
'Fooled' by Lobbyists in
Last Minute Rush.
SPEAKER MAKES DENIAL
Alachold Says Housing Bills
Got Good Show and That He
Spurred Sponsor to Act.
?
Counter charges followed fast yes
terday upon charges of responsibility
for the failure of a large part of the
Lockwood committee's housing legis
lation to pass. They were exchanged
between Samuel Untermyer, counsel
to the committee, and H. Edmund
Machold of Jefferson county, Speaker
of the Assembly, who was at the Com
modore Hotel.
Mr. Untermyer blamed Mr. Machold.
Speaker Machold put the responsi
bility up to Mr. Untermyer and flatly
accused him of uttering an untruth
in his charge that the insurance rate
regulation bill had been emasculated
at the beheBt of a lobby and with the
connivance of the Speaker and others.
Dnriug the exchange Mr. Unter
myer sent a long letter by special
messenger to Gov. Miller at Albany
requesting the Executive to call a
special session of the Legislature to
reconsider the State trade commis
sion bill, which the Lockwood com
mittee lawyer charges the Speaker
with throttling in the all powerful
Rules Committee of the Assembly
during the closing hours of the ses
sion, when, according to Mr. Unter
myer, there were enough votes in the
lower bouse to pass the measure.
Withdraws One ChnrKt.
The other developments of the day
included a withdrawal by Mr. Unter
mjrer of his charge, made in the news
papers yesterday, that Francis It.
Stoddard, Jr., State Superintendent of
Insurance, was responsible with Jesse
S. Phillips, former Superintendent, for
the restoration of Jokers to the insur
ance rate regulation bill that Mr. Un
termyer eliminated and which he
maintains make the bill worthless.
The charge against Mr. Phillips, who
is now head of the National Bureau
of Casualty and Surety Underwriters
:?nd who as such has drawn consid
erable of Mr. Untermyer's Are, was
allowed to stand.
Mr. Untcrmyer also makes tt)?
charge that Senntor Charles C. Lioclfr
wood, chairman of the committee, him
self had been looled by the insurance
lobbyists into consenting to a reinser
tion of the alleged jokers during Mr.
Untermyer's absence from Albany
while the measure was pending. When
the Speaker learned last night that
even the chairman of tho housing
committee had not escaped Mr. Unter
myer's censure for the failure of some
of the pet measures to pass he re
marked:
"Well, if Mr. Untcrmyer felt that
way about Charlie he shouldn't have
left him alone In Albany."
Assemblyman Thomas A. McWhlnney
of Nassau county, vice-chairman of the 1
l^ockwood committee, whom Mr. Unter
myer charged Saturday bad betrayed
the committee, received additional un
favorable mention In the lawyer's let
ter to Gov. Miller. Mr. McWhlnney is
charged with lobbying against the State
Trade Commission bill and the insur
ance measure when he had charge of
thorn In the Assembly as a representa
tive of the Lockwood committee.
.Speaker Machold last night defended
Mr. McWhlnney and characterised Mr.
Untermyer's charges against him as
"malicious.'* Efforts to reach Mr. Mc
Whlnney last night at his home In Far
Uockaway failed.
Reaaona for Kstrn Session.
While setting forth three major rea
sons for a special session of the Legis
lature In his letter to the Governor, Mr.
Unterniyer suggests that should Gov.
Miller toe impressed with the necessity
tho scope of tho extraordinary Hesslon
might well be made to Include consid
eration of tho question of establlshnlg a |
State monopoly of workmen's compensa
tion Insurance along the general lines
of the Downing bill Introduced at the
last session, and also of legislation that
would regulate public transactions In
securities somewhat along tho lines of
the Katlln bill or tho legislation recom
mended by District Attorney Joab H.
Ban ton.
In a supplementary statement Mr.
Untermyer denied knowledge of any
Intention on the part of the T.ockwood
committee to Investigate the n]lrg>>d
Insurance lobby 'against the committee
bills. The lawyer took occasion at the
some time publicly to remind Charles
A. Peabody, president of the Mutual
TJfe Insurance Company, who. In a
statement on the proposed Investment
by Insurance companies of 10 per cent
ef their assets In mortgage loans, said:
"No Intelligent person would take the
Continued on Page Fh?.
Theatrical and Hglri and R?la?iraats,
Advertising will b? found on Ptg* Adv.
Edition of Mark Twain
b Sold for $200,000
THE highest price ever paid for
a single edition of any au
thor's work was recorded
Saturday, when Gabriel Wells,
dealer in rare books, gave upward
of $200,000 for a new definitive de
luxe edition of Mark Twain, P. P,
Collier & Son Company being the
seller. From the sale of this edi
tion alone the Clemens estate will
receive more money than the writer
of one of to-day's best sellers re
ceives from the sale of 100,000
copies of his book^ This royalty,
added to the extraordinary return*
on the popular editions of Mark
Twain, makes his earnings the
greatest recorded for any writer.
The value of the edition is en
hanced by autographed title pages
done by Mr. Clemens before his
death, and introductions to the va
rious volumes written by a num
ber of famous authors give an ad
ditional literary value to the work.
CAUGHT IN PARK AV.
IN HIS 41 ST ROBBERY
Dapper Youth Had Looted
Apartments in Same House
Twice Before.
SERVANTS TURN SLEUTHS
Hold Intruder After Butler's
Intuition Undoes a 'Proc
ess Server.'
A nattily dressed young man whose
overcoat pockets bulged a trifle went
whistling through the upper halls of
the exclusive apartment house at 470
Park avenue about 10 o'clock l^t
night, finally stopping outside an
apartment on the fourth floor. He
rang the bell, ended his tune with a
flourish, and when the butler employed
by the family opened the door asked
for "Mr. Hanover."
"Not here," the butler told him,
"Why, do you want him?"
"Just between you and me I've got:
a summons for him.'' said the young
man. "Sorry I troubled you."
And ho went whistling down the hall,
panning at the stairs to light a cigarette.
The apartment house Is the home ot
many families intimately connected with
the business and social life of th? city.
Among them are Henry Batternian,
Samuel J. Bloomingdale. Duncan D.
Chaplin, Frank W. Frucauff. Charles
Cross Goodrich, Richard H. Higglns,
James K. Hoyt, J. Theus Munds. Cor.de
Nast, Frank H. Piatt. Ten Broeek M.
Terhune and Mrs. John Van Nostrand.
Under Becomes Sdnplcloan,
The butler In the meantime became
suspicious at the man's actions, so he
called the doorman down in the entrance
hall and asked about the stranger. The
doorman said no one had Kone up stairs
looking for Mr. Hanover and promibed
to investigate Immediately.
A few minutes later the doorman.
Frank Gllroy, and the elevator operator,
Jerome PIcera. found the process server
on the third floor. They grabbed him
on general principles and questioned him.
"Don't let's bother with a lot of nasty
questions," they heard him say, accord
ing to the police. "Just take this "
The young man reached into his over
coat pocket and removed what the door
man and the butler and a score of other
persons in the house described as the
wickedest gun they ever hope to see.
"Mind it for mo till the cops come,"
the prisoner went on.
Detectives Layden and Hughes and
Patrolman Martin Mitchell of the Kast
Fifty-first street police station responded
to a telephone call and took the young
man back with them. Searching him,
they said, they found In addition to the
ftun a nine inch Jimmy and a sirew
drlver. At the starion house he described
himself as Miles Boucher, 20 years old.
a bookkeeper, of 162 West Sixty-fifth
street. Sometimes, the detectives said he
told them, he passes under the name of
Kenneth Kingston.
The detectives said the man admitted
entering the apartment to rob some of
the homes and that he forced the gate
to the servants' entrance.
Apartmmtii III* Specialty.
They said also that lie confessed to
forty burglaries In apartments, giv
ing as the locations of his recent op
erations a house at Central Park West
and Ninety-sixth street, where he got
the Run, two rings and $10; a house
at Riverside Drive and 103d street, dia
mond lavalllere. three diamond ring*
and a watch and chain ; two previous
burglaries In the house In which he was
caught, $500, Jewelry and clothing;
Broadway and 167th street, rings; Riv
erside Drive and 120th street, two dia
mond rings and $80, and 4 40 Park ave
nue. two diamond rings.
Searching Boucher's room later detec
tives found a key to n safe deposit Imix j
at the National City Safe Deposit Com- i
pany, Madison avenue and Forty-xc ..nil '
street. Boucher said the box was empty, .
but It will be examined to-day.
Boucher's brother. Harvey. 22. came
home while the room was being
searched. He was questioned. He said
he opened a fruit store on Forty.second
street, near Sixth avenue, a few months
agft on money lent to him by the pris
oner. He said he knew nothing of his
brother's alleged operations. He helped
In the search for stolen valuables.
Among other things found were two dia
mond rings and several cameras. .
Dayden said the prisoner told him he
learned how to Jimmy doors while doing
time In the Jail at Rahwny, N. .1., and
that part of his proceeds went to finance
a burlesque company, now on the road.
He said his mother was dead. His
father, sho Is living, must not know
of his arrest, lie told the detectives. He
was charged with htvlns burglar*" tool.-"
and a pistol and was locked up in Police
Headquarters. The brother was de
tained for further questioning.
K. A. WKATHKRBV BJVIM I,IKK,
Miamt, March 19.?Officers of a
steamship arriving to-day from Nassau,
reported that a man who had registered
as K. A. Weather by committed suicide
at the Victoria Hotel, Nassau, Saturday.
Weatherby was saUi to be from New
York.
B. R.TJ REJECTING
VALUATION WILL SUE
CITY FDR 20 MEI0N
All Road's Ifls Laid to Mu
nicipality in Delaying
Contractsi
HITS TRANSIT BOARD
.$154,000,000 Set Would
Leave Nothing for Stock
holders, It Is Said.
14TH STREET LINE CITED
Other Alleged Delinquencies
Pointed Out in Charges In
timating: Bad Faith.
A letter from the protective com
mittee of stockholders of the Brooklyn
! Rapid Transit to George McAneny,
j chairman of the Transit Commission,
! made public yesterday, severely con
demns the recent valuation reports of
the commission, charges the city with
flagrant violation of Its contracts with
the company and threatens suit
! against the city to recover $20,000,000
| as compensation for the delays in con
struction that are alleged to have
of receivers.
The actual Investment in the prop
! erties. the ' stockholders maintain,
am/unts to $238,000,000, while the en
gineers attached to the commission
have allowed "on the basis of theoreti
cal assumption" only $154,000,000. Be
cause of this Irreconcilable difference
the stockholders give notice to Mr.
McAneny that they reject the commis
sion's proposals, as the valuations af
ford no basis for a discussion of the
plan of readjustment.
"We arc not in tho least concerned
by, nor can wo believe," the letter
State?, "the current rumors* that if the
security holders do not accept the valua
tions as proposed they will be forced
to do so through the deliberate exercise
for Such a purpose of the powers which
the commission considers it possesses.
We cannot conceive that such a course
would be pursued, but If attempted we
feel confident it would receive immedi
ate condemnation in public sentiment
and in judicial determination."
Krom 10,000 Inventor*.
company into the hands
i .ie leuer renecis me views 01 me
committee, representing more than
10,000 Investors owning $74,000,000 of
stock, beaded by Albert H. Wiggin,
president of the Cha.se National Bank.
Other members are Charles A. Boody,
president of the People's Trust Com
pany of Brooklyn ; Frederick H. Ecker,
vice-president of the Metropolitan Life
Insurance Company; Seward T'rosser,
acting chairman, and president of the
Bankers Trust Company; Galen L
Stone, Frederick Strauss, Gerhard M.
Dahl and Chellis A. Austin.
The committee points out that the B.
R. T. has fulfilled to the letter every
part of Its contract with the city, and i
even after the system went Into the !
hands of receivers the construction pro
gram was continued. This Involved the
borrowing of $18,000,000 on receivers'
certlflcateu with the assistance of the
court, an accomplishment which is
called "almost unparalleled in the his
tory of receiverships."
"Unfortunately," the letter says, "a
similar statement cannot he made with
respect to the performance by the city
of its part of the contract."
The uncompleted portion of the Four
teenth street-East New York line, re
garded by the traction company as ono
of the inost Important parts of the sys
tem from a revenue and service stand
point, is cited as one Instance of the1
city's delays. The contract was made, i
nine years ago, the committee states,
and the construction has not only not j
been completed, but several portions of :
the line have not even been placed un- '
der contract. No attempt 1ias been
made, the committee also points out, to
start work on the Nassau street loop.
No Basis for Discussion.
Regarding this point the commirteo
states:
"Our consideration of the conclusions
of your Bureau of Valuations and the
methods by which they have been
reached, coupled with the manner In
which such conclusions were apparently
received by your commission and com
mented upon by your counsel, has con
vinced us that the hopes we entertained
for a prompt businesslike snd unpreju
diced settlement of the grave problems
must be dismissed and that the valua
tions proposed afford no basis whatever
for discussion."
"We cannot refrain from emphasis'ng i
the very great Injustice which the pro- i
posed valuations de the rapid transit 1
propf-rtles of the company, for the ex
tension and equipment of which. In con
junction with I lie new city built, subway
lines, npproxhnately $78,000,000 hss
been obtained from Investors and ex
pended since 1911. Th< outstanding
debt agolnst these properties, including
the underlying bonds, notes und bonds
Issued since 1918, with Interest in de
fault, receiver's certificates, tort claims
and other obligations. Is estimated at
over $135,000,000, approximately $78,
000,000 of which has been expended
since 19)3, under the direct supervision
and control of your commission or your ,
predecessors ir. authority.
"Tn provide for this debt of over
$135,000,000 your engineers recommend j
a valuation of approximately $!ifi.00i.O00.
or $39.n0M,n00 less than enouab to pro
vide for the debt, thus eliminating com
pletely all stockholders' equities In the
properties. In reaching this valuation '
your engineers have placed n net value
of approximately $22,400,000 on the
company's extensive elevated railroad
system In the Borough of Brooklyn,
which was *lven an earning power under
the contract with tho city of $3,600,000
per annum, which, capitalised at 5 per
cent, (the rate proposed under your
plan), would support a value of at least
$70,000,000 for th? property.'
?;?n
'Health, Courage and Life'
in Wine, Repeats Poincare
PARTS, March 19.?"It wine
were bad for the health this
fact would have been known
since the days of the Romans an>
Greeks?since the genesis." said
Premier Poincare last night at a
banquet hold in connection with
the closing of "wine week.''
"America," the Premier con
tinued, "is, of course, the mistress
of her own Internal legislation, but
she must recognize the truth as
stated by the Anglo-Saxon poet?
wine is health, courage and life."
BANKER IS ACCUSED
AS A BOOUEM
Federal Reserve Official of
Miami to Be Arrested in
Big Liquor Deal.
TWO SMUGGLERS TAfcEN
Their Confessions Implicate
Financial Man, Who Fleads
Exposure Means Ruin.
Sprtial Dispatch to Tub New Yobk Hesald.
Miami, March 19.?Secret investiga
tions In this city and nearby winter I
resorts for the last ten days by a force
of more than thirty special operatives
brought down from the Northern
Spates by Col. G. Nutt, Chief of
Federal Prohibition Agents, resulted
to-day in the seizure of a smuggled
consignment of whisky, gin and fancy
liquors, wortb at prevailing bootleg
ging prices $20,000 and the arrest of
two of the smugglers.
Thomas N. I-iewis and Wilbur
Phelps, the two men arrested, had de
livered 100 cases of Scotch whisky
and gin to two Government agents.
They signed confessions involving the
vice-president of one of the principal
national banks of Miami, a member
of the Federal Reserve system. This
banker, whose name Is being tempo
rarily withheld while certain data is
being completed, probably will be ar
rested in a few days.
His connection with the case as a co
conspirator and the man who financed
the deal in his capacity as a bank of
ficer with the knowledge of the cashier
and in the presence of both parties to
the deal Is certain to be brought out in
the court proceedings.
Evidence la In hand one hanker was
to receive a personal payment ot
eighteen bottles of fine brandies as his
reward for putting the loan through the
bank, in addition to the Interest which
the bank would receive on a demand
"?When confronted with the fact that
the Federal authorities bad knowledge
of the whole transaction this hankera
moat collapsed in his own home last
^h was to'bind the
$4?000 ? bills of largo denominations In
a pocket of his pajamas when two of the
Government operatives called on him
^They Vad been posing as New York
bootleggers and had been offered - con
sienment of booze by Lew>s and I helps.
^ '^thfrnonVy'Th^rkerirned"
ovei^lhe money to' the Federal agents
? 'SSSi'TtwoSd'ru.n?hlm for life
and do WATS
Government agent.s did not arrest Mm.
then they took a ThelIps^lnto
custody at once but they f * on
the banker can be found ai any
account of his Prominence. ^ ^ ^
was bootlegging. - ^ v>oanl on
able to have a _itl, SPVeral small
c,aar i, rur. l.a-or- wcro
? ?"<" >? ???* *
hole.
About a week ago two Federal agents
entered the place. They bought cigars
and inquired what the board wan for.
They were told that whoever punched
one of the holes would forcc through the
other side a slip of paper containing a
number. There was a lucky number on
each board. The two strangers In
quired about prises.
"Well. I would not say this to every
body," said one of the partners, "but you
fellows look on the square and I don't
mind telling you that the prise Is a bottle
of imported Gordon gin or Scotch
whisky."
"We'll try It," wild the two strangers.
They spent a good many dollars during
the next two days punching the board
and cam* away with a quart of London
Oordon gin, a quart of Dunevllle's Irish
whisky, a quart of Burke's Irish and a
quart of old Highland Scotch.
Durlryc this period they were also talk
ing with waiters In restaurants, bell hops |
In hotels, other cigar store keepers and
generally finding out how easy it whs
to buy imported liquor In Miami and j
the many suburb*.
vr.oo.noo fibk ii\ ki.mira.
Ki.mtra. March 1!>.?Property damage
which it has been estimated may reach
nearly half a million dollars was don"
to nearly a dosen retail 'business estab
lishments and other placts of business
by a fire her* to-night.
Opium IJiiijr's Head Sales-,
man Tolls of 1,000 'Hop'
Feasts Recently in City.
ACTRESSES PATRONS
'Scar Face Tony' Names One
as Movie Star Prominent
in Taylors Murder.
MORPHINE $130 AN OUNCE
Dr. Simon Calls Arrest One of
Most Important Made by
His Narcotic Squad.
Tn the arrest yesterday of Anthony
Gessel, 39, known to the underworld
' as "Scar Faced Tony," the police said
they had in custody one of the princi
ple agents dispensing narcotics in the
country. According to nr. Carleton
Simon, chief of the narcotic squad,
under whose direction the arrest was
made. Gessel has supplied more drugs
to the addicts of this city than any
other single known dealer.
Gessel. who "says he has been an
addict since he was 15 years old. ad
mitted he had been supplying mor
phine at $150 an ounce to a prominent
motion picture actress mentioned in
the recent Taylor murder caw. Dr.
Simon said. He also asserted that
William Desmond Taylor had been
slain by one of the drug ring in Cali
i fornia. whose trade in narcotics had
I aroused the ire of the slain d,re' tor
I Gossrl was arrested in Broadway at
: Forty-seventh street, after he had sold
|a "toy" of opium to Detectives Riley
r.r.d Moffet of the Narcotic Squad, who
\ l.ad been watching him t< r several
! vrek? He made no attempt to resist
I the officers. When taken before Dr.
! Simon he said he was urilHns to make
! a clean breast of his activities, am
I made a long confession.
T>11? About Many "Hop Parties."
I Stories of "hop parties" which were
Indulged In by society folk and young
; Kirls attending school were given bj
! Gessel. who told the poMco that he
I alone had supplied enough opium for
more than 1.000 "parties' within the
I last two years. He made no effort
| hide the fact that he was one of the
1 best known dealers, according to the
; rollce. and said that he did a tremendous
I business on the lower East Side and
rmong chorus girls and gamuicrs. The
police say that Gessel has b.en active
1m virtually every section of the city.
' -it is one of the most important
arrests that have been made in this
city in some time." said Dr. .Simon.
??Gessel was pn.ba.bly the principal
' agent for more addicts and dealer* than
anv other go-between in the traffic. He
Tas not rich himself, but was the tool
of an Important ring or coterie of men
who have laid in a supply of drugs and
wio sold them through Gessel to the
people of the underworld."
That the narcotic detectives arc on the
' trail of the "coterie" which supplied
Gessel with the dags which he sold
was Indicated last night. Investigation
of Geasel'V places of operation nave
been made. He gave his address as
"124th street and Broadway and an
other address in a suburban section,
which the police would not dlscIoM.^ Ac
cording to the detective. Vessel said ithat
he would tell everything he knew i. he
i were proteeted from others who were
| more influential thanhe tn tr?",c;.
lie had eluded both Moffctt and Uilej
several times before they were able to
induce him to sell the drugs, and aceord
ing to them he mingled with educated
land cultured persons, and was a
j dressed, smooth spoken man.
I'rim or itiiiinic or injior,
Oessri spoke of th<> "killing- of Taylor,
but according to Dr. Simon no effort
was imdc to communicate with the
California authorities, although (Jesael
admitted Knowing a number of mem
bera of the drug ring whl'-h is known to
be operating in the vicinity of the movl<
atudios. He told in detail how he hid
supplied the morphine for a certain art
ress at regular Intervals, but said that
some one had "cut In on hia tradr" be
fore the date of the killing of Taylor.
Although the name of the actrean who
has figured prominently in the murder
of the motion picture director was stated
poaltlvely to the polic.' by Gesacl, who
said he had both Bold thu druga to her
personally as well as sending them out
to the coast, her name was withheld
until further lnveatlgatioii of the prison
er's story can be made. Gessel will
undergo thorough questioning aoon to
find "lit what he knows of the killing of
Taylor, and also for more detailed In
formation regarding the identity of th?
men who were supplying the drugs which
he dispensed.
"S?ar Faced Tony" has opt rated In
tlie metropolitan district for a number
of years, detectives said, but always
m.toasted to avoid arrest by a narrow
margin. Gessel Is married, hi- said, and
ha?! two children, but would not sny
where hl? wife or children are at pres
ent. He said he Ja 3A years old and
waa born In this country.
Two Arrested and $170,000 Bonds I
Stolen in Treasury Recovered
Special IHtpatih to Tm? N'nv Vouk Haul r>.
Nfi* York Ilrruld Riirrnii. I
W n?hiiiK?<>n. D. C.. Mnrrh 1f?. (
??r?o hundrfd and seventy thousand
dollars worth of negotiable Liberty
bonds, missing for many weeks from
the tTnited States Treasury, were re
covered by Chief W. H. Moratt and
Secret Service operatives to-day.
Two arrests were made In connec
tion with the recovery at the securi
ties, according to the meaner report
to the Secreturv of the Treasury to
night. U,
A shortage of $170,000 in tlic bonds
In the office of the Register of the
Treasury was discovered some lime
n??o. Government Secret Service
aaots were put to work on the ease,
and at about that time two employees
of the Regl.iUr'H oflVe left. One of
them wart located In Richmond, Va.,
and the other In Charlotte. N. C.
All of the miMln* bonds were re
covered and Chief Mornn la under
stood to be on his way to Washington
with tl cm to-nifbt.
FEDERAL TREASURY FACES
TWO TO THREE BILLIONS IN
CLAIMS BESIDES WAR DEBT
liE Government's deficits in the next few years will be heavier
than are indicated by the Treasury Department, because of
A large expenditures in paramount war claims. Attorney-Gen
eral Daugherty's latest estimate is that new suits for the payment
by the Government of alleged losses by the litigants will involve
between $2,000,000,000 and $3,000,000,000.
More than $1,000,000,000 is at stake in claims for refunds filed
by taxpayers as a result of assessments made by the Internal Revenue
Bureau.
Cancellations of contracts by the Shipping Board involve
$800,000,000.
Claims for patent infringement will exceed $1,000,000,000. Up
to date $200,000,000 of this class of claims alone is before the Court
of Claims.
Railroad claims growing out of Federal control may run as
high as $1,000,000,000, department officials said.
Officials declared this is only a partial list of the staggering
claims that are piling up and which the Government must defend.
It is added that despite the efforts of the Government to prevent
raids upon the Treasury it is to be expected that a very large sum
eventually must be paid by the Treasury in settlement of suits
decided adversely.
Special DigpatiU to Thi New Voek Hmu. r>.
\f? York Herald Bureau. J
Washington, D. ('.. March !!?. (
SUICIDE IS SEQUEL
TO KIEL'S DEATH
Otto Larsen, Tccli. Student
Who Fled From Boston Trag
edy, Is Found Dead.
SAME POISON KILLS BOTH
Letters Explain Source of Po
tion, Reveal Broken Promise
and Clear Mystery.
Boston, March 19.?Death by poison
ended the flight of Otto Haldor Larsen,
a senior at the Massachusetts-Insti
tute of Technology, from the gay
party at which Pauline Virginia Clark,
divorcee, ended her life early last
Thursday morning. His body was
found to-day in the fenway, behind
the Museum of Fine Arts. Apparently
he had been dead only a short time.
Two letters signed by Larsen. as
serting that Miss Clark long had in
tended to commit suicide and that
Larsen had supplied her with poison,
were received by a Boston newspaper
and Medical Examiner Magrath
several hours after his body was
found.
In the letter to the Medical Exam
iner, Larsen said Miss Clark requested
him several weeks ago to procure
some poison for her In order that she
might take her own life. She had
long before derided on this course, he
said she had told him.
"I agreed to this," the letter con
tinued, "extracting from her the prom
ise that she would not use It until her
mother came home. She gave me her
promise and I prepared for her a solu
tion of strong poison."
The letter related how Larsen had
met Miss Clark six weeks ago and they
had become Intimate friends. It said
that Miss Clark told him of hor ex
ce."Wive depression and of various inci
dents in her life.
Describe* Death ><?*enc.
"I wondered how she res Uteri so long
the temptation that death really Is," the
letter added.
The letter then described how he sus
pected that Miss Clark was going to
break her word an I take the polsdn
while with her guests on Wednesday
right, and although she again promised
to defer her act she suddenly stood up
and drank the fatal potion.
At the start of his letter to the medi
cal examiner Larsen said:
"In order that the disgraceful com
ment of ccrtain Boston newspapers upofl
tlw death of Miss Clark may be Riven a
chance to come to completion I take the
liberty in this way to tell what I know
about the tragedy."
A portion of the letter follows ?
"Miss Clark was not a 'society bell--'
of the pleasure seeking type. Her
charming parties were given to kill the
moroseness her life had precipitated in
her. Defiant of society, too stronsr to
ask for help or sympathy, she had long
igo decided upon how the end should
be when lier many devoted friend* no
longer could divorce her from the misery
of her own thoughts.
"Knowing me to b? a chemi?t She
asked me to get Iter some poison. 1
agreed, extracting from her the promise
that she would not rise It until her
mother came baok. She gave her prom
ise and I prepared for her a solution,
although l did not anticipate to what
end. Neither Mr. ?? nor any of the
other gentlemen in the party hud any
part in MIm Clark's suicide nor had the
young lady from Worcester
"What happened Wednesday after
noon and night I will short)? describe :
"I called Mlsa Clark on the phone
about fi o'clock, she asking me to Join
her ami her friends as soon as I c> >ild.
I arrived at her attainment at about 7
o'clock, where I met two gentlemen.
Mr. ? and Mr. . neither of whom
I had met before. Present aljjo was Mi?s
Clark'* lady friend from Worcester.
The twrt gentlemen left shortly after
my arrival to procure a pint of whisky,
with which they reappeared about 7
o'clock. At 10 o'clock Mr. ?? went to
'he auto show and came back about
11:30. Shortly before that Miss I'lark
had telephoned Mr.?i , who came *o
the apartment whortly aft' r.
Promised \i?t to Tiil.c I'olnon.
"All this timt, musle had been played
We had danced and com . rsed gayl>. I
was not feeling very well, not ha\ing
hid dinner, and therefore .unkcd the
ladles' permission to k<< for dinner. Miss
Clark, however, personally msde up some
sandwiched and partook herself In the
meal.
"Around tiit Mr. ? reclined on a
coueh. Mr. was conversing with
MIm Clark and I with the lady from
Worcester.
"1 had a suspicion that Mist Clark
ton tinned on Pag" Scten.
RECOGNITION BY U.S.
OF MEXICO IS NEAR
Harding: and Obregon in Per
sonal Communication to
Brin# About Settlement.
| SI MPLE PL A N P R < )P< )S E D
Simultaneous Exchange of
Notes May Be Made to
Remove Only Obstacle.
Sped a l Dlnpatch to Tub Wbw Turk Hnuid- .
New ^ url. Ilernld Itiucmi. I
Washington, I). March 19. I
President Harding and President
Obregon are In direct and personal
communication and recognition of
Mexico seems near. This was learned
officially to-day.
There la only one hitch in the pres- '
erit negotiations, which have been
going forward for some time, and it
is not regarded as serious. Tills is
tho unwillingness on the part of
President Obregon to give, in advance
of recognition, the guarantees which
Secretary Hughes has insisted upon
as a necessary prerequisite of recog
nition. These guarantees consist of j
the annulment of Article 27 of the
Mexican ronstitution so far as it ap- |
plies retroactively to vested American
property interests in Mexico.
The hitch which exists now in the
negotiations in now new. It is the note
In the negotiations, represented by the
direct communication* which have been
undertaken between President Harding i
arid President Obregon, which lenders |
optimism concerning u prompt settle- I
inent Justifiable. In addition, the State |
Department has been in daily communi
cation with George T. Summerlln, the
American Charge at Mexico city, who
in turn hss been in frequent communi- ;
cation with President Obregon and his
Ministers.
The result of the negotiations ha*
been th?- formulation of a plan which, it
is believed, will make it possible to 1
reach an agreement.
Since the Amerrean Governim nt has
Insisted upon sufficient guarantees con
cerning American property before recog
nition Is granted, and the Obregon Gov- '
ernment has been equally insistent that
recognition should precede the rfuaran- <
ices. the plan evolved aim1; to harmon
ise these differences
It is proposed that each government i
shall sacrifice Its Insistence and that i
recognition by this Government and the
guaranties of the Mexican Government !
shall be Included in a simultaneous ex
change of notes. By this method the i
aims of the American Government will
be accomplished and th^ pride of the
Mexican Government will not have been
sacriflc 'i.
I Herctoforo President Obregon hn *
inudc it clear there was no intention of
| not acceding to the demands for proper
j guaranties concerning American prop
j er|J'. The answer of this Government
has been that if this is so. there Is no
j reason why th<> xunrantv should not he
' Included In a treaty.
BULGAR MILITARISTS
FORM DICTATORSHIP
Overthrow Stambouliiky Cab
inet, Vienna Reports.
Paris. March 20.?A dispatch to the
Sew York Herald of Paris front Vienna
; sa.va It Is authoritatively stated there
; that Bulgarian militarists have over
thrown the Cabinet of Stamboullakx and
! established a 1 'lctator?hlji.
Alexander Stamboiill.-ki. known n?
the peasant premier, was tv>rn In 1S71
? at SIavorit*a. In Southern Bulgaria. lie
beffan his parliamentary career In 1#0S
?n?l In 1911.was elected to the National
Assembly. M?> was Imprisoned for thrc?
years and twice condemned to den I It
tor opposing ?'*?r Vertllnand and the
government which took Bulgaria Into
the war on the side of Germany. Early
' In HI# he entered tlie cabinet and In
j that name year he became Prime Min
ister. After the general election of last
; March which gave him a substantial
majority he formed a cabinet composed
entirely of his own supporters. M. Starn
hivullsky was a firm friend of the west
ern powers and his administration of the
past year cm\c proof of the honesty of
his purpose
It \ III V%TIO V4I.I*T*.
Bsr.rAST, March IS.?t'rown force*
raided St. Mary's llall. the Nationalist
headquarters in Belfast. Saturday night
and the police barracks at Pomeroy.
| County Tyrone, weie raided this morning.
The poilee to-day selied a Iargi> quan
tity of docti nenta In St. Mary's Mall,
' wh.ch are alleged to give complete Infor
mation of Republican activities here.
8t Mary'a Hall formerly wa# the head
quarters of lite Irish Republican Army
Division. *
BONOS LEADERS FAIL
IN A NEW EFFORT TO
STAMPEDE HARDING
President Declines to Meet
Them Until He Confers
With Treasury Men.
SENDS FOl? MELLON
Then Goes Over Situation
With Budget Director and
Veterans Bureau Chief.
RAIDERS' HOPES |)R<)1?
Executive to Meet Advocates,
of Raid This Morning and
Xoe Speaker.
Br i.oi is sEino;,ii.
Special Disrmti.li to The New York IfnxtT.B.
Vew Vnrk Hpnild fturrtiu. I
VVttfcliiiiKl..ii. II. Mnrcli 1!?. i
President Harding found plans for
a bonus raid on the public Treasure
and business of tiie country quite as
disturbing on his return from Florida
this afternoon as when he left Wash
ington eleven days ago.
Within ten minutes after W <1
reached the White House fir / an.'
evidence that the tumult ove
existed reached him. Thlr
the form of a request fror
jority leaders of the House
terview to discuss the bat .1 >
"mortstrosity," as critics
scribed the certificate loan
is scheduled to pass the lo a
during the coming week.
The President replied,
his readiness to receive th
tee at 9:30 o'clock to-morr
ing. The only engagements
President permitted to bre '
his practice of observing th?
were presumably connected
Congressional disturbance
bonus.
>lcllon Srr* Prr?lilfi
Secretary Mellon, who du
President s absence bluntly 1
the House Ways and Means <
tee of his disapproval of the
000,000 certificate loan projec ., 0
an hour with the President
the afternoon.
This evening the Presiden
ferred with Col. Forbes, the V
the Veterans Relief Bureau,
has administered the disburseir
$1 500,000.000 for the relief c.
maimed, sick and helpless victims of
tlio war.
Gen. Dawes, the Supervisor of th*
Budget, also particinated in the eve
ning conference, which, it is under
stood. was devoted to discussing plans
for making more liberal provision for
the disabled soldiers.
Secretary Mellon declined to giv?
any information regarding his confer
ence with 1'ie President beyond say
ing that the President had sum
moned him to discuss public matters
that required immediate attention.
Thurnnttli Dlnrnsnlnn nvopfo.
Mr, Mondell and the other Houm
loader* said thin evening: they wouM
invite a thorough discussion of the
'..oiiils siination. They will attempt to
obtain from th? President a recon
sideration. or at least a modification, of
bis last official utterances on the
bonus scheme In which he recom
mended the adoption of the sales tax
t.> finance It or the postponement of
sill legislation relating to the matter.
Failing ir. that, they will Invite fur
ther sugg-vtions as to the most ac
ceptable manner, if there Is any, for
financing the raid.
The fact that the President did not.
re gar J the Congressional phase of the
bonus dispute of sufficient importance*
to justify a Sabbath conference was
naturally Interpreted to mean that he
still adheres to his previous decision*
regarding It. Another circumstance
that Increased the anxiety of the
harassed bonus Representatives I*
that the President plans to talk with
Speaker Oillett before he meets the
delegation from the lower house
The bonus Congressmen who have
tenaciously clung to the Idea that the
President could be induced to change
hi* mind admitted his declination t?
receive the Republican leaders to-day
was not a particularly good augury. '
Prepared for \?lrerse Derision.
The fact is most of them are pre
pared for an adverse decision regard
ing the request of the majority lead
ers, who still persist In their declara
tion that the certificate loan bill will
be passed during the coming week re
gardless of Its ultimate fate in the
.Senate or at the White House.
Most of the bonus lenders will be
surprised If the President Indicates the
slightest departure from his policy of
dealing with *troublesom? situations,
tn other words, they expect he will
tell Mr Mnndell and Ills associate*
that he has no further suggestions to
make.
The pi.in for "jamming"' througU
the hill regardless of the President'.-;
dt cision will be < arried out. a?vording
to the House leaders. Before that
body meets thev expect (hat the situ
ation will bo cleared up one way o ?
the other.
They count upon having the Presi
dent's reply before Speaker Qtllet',
who has become the slotm center of
th- bonus situation at ilv ?.'?*pit >t,
tells .Mr. .Muudcil whellK'tl he A ill