The New York herald. [volume], April 13, 1922, Image 1

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

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(2 ??*!?!>-'hi
WEATHER FORECAST.
Fair to-day; to-morrow cloudy and
warmer, probably showers.
Highest temperature yesterday, 58; lowest, 46.
Detailed weather report* will be fouiTj m Editorial page.
porta will be fouiTj tn Ed:
L?NO. 228?1
THE NEW YORK HERALD
tCOPYRIGHT, 19 2 2, BY TUB SUN-HERALD CORPORATION-,)
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.
VOL. LXXXVI.?NO. 228?DAILY.
+?++
NEW YORK, THURSDAY, APRIL 13, 1922.-ENK?4:DomcE%,^cv,bAIS.>!,ATJE'
PRICE TWO CENTS | WITHIN 200 MILES.
IN NEW YORK CITY. I FOUR CENTS EL8EWHEP.0.
GOV. MILLER VETOES
XYLANSALARY GRAB
OF $10,000 A YEAR
Rebuked for Asking: Albany
to Increase His, Craig's
and Hulbert's Pay.
BLOW AT HOME EULE
Told, as He Told Others,
Boards of Aldermen and
Estimate Have Power.
OWN WORDS A BOOMERANG
Mayor's Reasons Applied With
Double Force to Only Grab
Signed by Him.
Ppeciai Dispatch to Thb New York Herald.
New York Hrrald Burrnu. )
Albany, April 13. I
Gov*. Miller to-day vetoed the bill
Bigned March 21 by Mayoi Hylan In
creasing the salaries of the Mayor and
Comptroller from $15,000 to $25,000
each and of the President of the Board,
Of Aldermen from $5,000 tc $15,000.
In his veto and in a memorandum
hccompanying it the Governor rebuked
the Mayor for seeking salary increase
through the Legislature rather than
the governing bodies in New York,
where, he said, the power rests prop
erly. This salary increase was the
only one approved by th8 Mayor. He
vetoed similar measures calling for in
creases in the salaries of policemen,
firemen and other officials.
In his memorandum the Governor
referred to section 56 of the charter,
providing that the Board of Estimate
and Board of Aldermen have full au
thority for fixing the salaries of city
officials and further that no change in
salary shall be made during the of
ficials' term in office.
Hoist With Own Petard.
Tt is proper, the Governor said, thai
city salurles should be fixed by the
local bodies representing the taxpayers
who mturt pay those salaries. The true
power of the Legislature is to confer
adequate power on such local bodies
he stated, adding that in this instance
there is adequate authority to deal
with the Mayor's salary without com
ing to the State capital for help.
"I concur Jn the Mayor's reason for
vetoing a number of special city bilts
increasing salaries and disapproving
i other salary increase bills submitted to
him: 1. e., that the power to fix those
salaries is or should be vested in the
Board of Aldermen and the Board of
Kstlmate," said Gov. Miller. "That
reason applies with double force to tills
bill because of the cxpr. ss limitation
upon any change in tve sn'.ary of the
Mayor or Comptroller, duri.lg their re
spective terms of officer " The creator
of that limitation, the State Legisla
! turc, should respect It. If it Is un
sound it should be changed or repealed,
not violated.
"The wav to secure home rule is for
the Legislature to coir.er suitable
powers over local affairs upon the local
officials and then scrupulously to re
frain from itself exercising those
powers.
Matter of Local Cognisance,
"The fixing of salaries of local offi
cials is peculiarly a matter of local
: cognizance, so much so that I have
referred to the Mayor various bills In
creasing the salaries of county officials
within the city und shall follow his
recommendation in disapproving them.
I think the constitution might well be
amended to require such bills to be
submitted to the Mayor like special city
bklls. especially as such salaries are
now made a charge upon l*ie eni're city,
but, while waiting an amendment to the
constitution, such salaries should be
fixed, not by the Legislature. but by
the Board of Aldermen up n th? recom
mendation of the Board of f?stlmate, the
same as the salaries of cl'# officials are
fixed.
"It would appear that sections 58 and
1583 of the charter are Vo?(f enough
to confer such power, except possibly
in particular cases where the peculiar
wording of the statute applicable to them
may prevent. In any case the remedy
Is to confer adequate power. There 1*
mow a 1 vsk of uniformity and of suit
cble grading of salaries in the different
I'Aimties within the greater cltv. That
?K.'llculty should be cured by the sppll*
ration of general prlnc p'cs, not by
legislating for particular ?nsos.
"This subject may well be considered
l>y the charter revision commissioner*,
who will necessarily have to deal with
the difficult problem of overlapping,
duplication iund waste presented by the
present city, borough and county gov
ernments."
The Veto Memorandum.
in Ills memorandum of veto the Gov
ernor wrote:
"This hill Is a plain violation of the
principle of home rule. It Increases th.
salary of the Mayor and Uomptroller of
Now York from ll.i.OOO to $25,000 each
and the President of the Ttrtaru of Alder
men from ffi.000 to $15,000.
"Section 56 of the charter say*: 'Ex
cept ns this section otherwise provides,
it shall be the duty of the Hoard of Al
dermen, upon the recommendation of the
Board of Estimate and Apportionment,
in tlx the ralsry of every officer or per
?mi whose compensetlon I* paid out of
tb'' city treasury other than day labor.
?>k, and teachers, examiners and mem
Tiers nf the supervising staff of the De
partment of Education, irrespective of
the amount fixed by this art. except that
no change shall he made in the salary
of an elected officer or head of a de
triment during his tenure of office.'
"The power Is thus vested In the
Continued on Page Mix.
TlKstrical nnd Betel and Restaurants.
Advertising wlU bs found on Fm H. -Adv.
'City Pay Increases Are
City's Business'?Hylan
HIS is what Mayor Hylan said
on vetoing the increases in
salary for the police and fire
men:
"The question of whether the
policemen and firemen should re
ceive another raise in salary is one
with which the city Board of Esti
mate can cope without any inter
ference from Albany- I want to say
right now that any legislative bill
calling for pay increases to city em
ployees will receive little consider
ation from me in those instanced
where the Board of Estimate has
the power to make the increase."
CAPTIVE Of ACTRESS
3 DAYS, SAYS BROKER
Nicholson Could Not Break
Away From Party in River
side Drive.
DREW, STOPPED CHECKS
v.
Married Man Has Malvena
Richman in Court for Ab
ducting Him.
Asserting that for three days and
nights he hnd been kept prisoner in
an apartment in 187 Riverside Drivt
and relieved of an emeraid stickpin, a
rhinoceros tooth cane, $!>00 in cash
und checks he had never intended to ,
sign, Angus K. Nicholson, a broker of
52 Broad street, appeared lr the \V est
Side court yesterday as complainant (
against Malvena Richman, 21. and an
actress, in whose apartment, he al
leged. he was captive. _
Nicholson. who lives in 215 ^ est
Ninety-first street and is married, is 1 .
and has been since March, -7, * hen he
left the Richman apartment. Mus
Richman was released by
Nolan in $10,000 bail for examination
Saturday. The complainant was repre
sented by J. H. Gilbert of the law firm
of Gilbert ft Fallon. .
Detectives Trojan and Fitzgerald of
the West 100th street station are es
pecially interested in two checks beam
ing Nicholson's signature, which were
presented at the Thirty-flfth
branch of the Chatham and Phenlx
tlonal Bank, where payment was re
fused, a stop order having b'en
against them. One was said to liav .
been for 13.000. the other for *4.000.
According to Mr. Gilbert. Miss Rich
man and a woman friend were in a
motor car when Nlcholeon flret met
them. March 24, and the party* isited
a number of cafe-. By the time the
Richman apartment was reached t
friends of Miss Richman had Joir.ed the
party. , ,
Allegations made In court indicate
that Mr. Nicholson's condition remained
about the same fiom 7 P. M. on March
24 to 7 P. M. on March -<? It is not
clear he made strenuous efforts to leave
the apartment, but Mr. Gilbert assert*
his chauffeur tried to reach him to take
him home but was prevented b> those
in the upartment.
Detectives hold the opinion Nicholson
signed the checks while in a "muddied
state of mind. They are said to have
been made out to the order of Miss Rich
man. How they came to be drawn prob
ably will be brought out Saturday. Mr.
Gilbert says they were presented at the
bank by a man known as Joe Levy ana
they have since "evaporated."
Nicholson Is 45 years old. The direc
tory says he Is connected with the
brokerage firm of L. L. Winkelman
Co. of 62 Broad street. His home Is
the De Soto, a rather pretentious apart
ment bouse, it was stated there last
night that neither Mr. Nicholson nor any
of the family?there are children?wa*
The apartment at 1ST Riverside Drive
is an old private house converted. Miss
Richman lives on the top floor. Last
night a* maid opened the door on a chain
und Miss Richman said:
"I'm Indisposed and all excited I
really will say nothing at all. Abso
lutely not."
COLLEGE ASKS 17 GIRL
STUDENTS TO LEAVE
Thirteen on Probation for In
fraction of Rules in Michigan.
YpbilANTI. Mich.. April 12 ?Seventeen 1
women students at the Michigan St .te ,
Normal College here hav.j been a; k?*d to
leave the institution and thirteen others
Have been placed on probation for in
fractions of school regulations.
Coincident with this information a
proclamation was Issued by Cha:'.cs Mr
Kenny. president, and Mrs. Bessie
Keachprlddy .dean of women, to faculty
members, citing a list of thinga that are
forbidden. <
"The college will not knowingly per- j
mlt any young woman to remain In
school. mu-h less graduate Jwr. who
smokes tobacco." the ..reclamation
"Cntll tiie people of Michigan chang.
Ihelr attitude and are willing to take
women smokers as teachers, the college
will adhere to this policy." It added
Automobile riding without permission
attentions from strange men and "gain- ,
In* access to rooming houses by way of
windows." also are on the list of for- ,
bidden adventures.
SCHOOL CANNOT BAR
FEMININE ADORNMENT
Arkansas Girl Wins Suit; Ex
pulsion Is Set Aside.
? 'ORvt.NO, Ark., April 12.?Even though
she powders her face, uses a l'p stle!.
and follono fashion's edlnts as to dre<u
Pearl Pugsley, elgliieen-year-old student,
has the right to attend classes despite
the ban of the Knobcl School Boarl
against modern methods of feminine per
?onal adornment. Circuit .Itidge W. \V.
Handy to-night declHe.1 that the order
of th" board was unjust and that Mis . !
Pugsley could go back to ?ehool.
When the board's order was Issue.i 1
last September Miss PugsleV refused to
obey her expulsion from school result
ing. Her father Immediately began suit
to set aside the board's ruling. He died
recently and Mist Puai*y continued thge
court fight. i
JEWELER IS BOUND,
ROBBED OF $25000
NEAR MS SQUARE
Bandits Hold Up Owner in
Store With Policeman
Fifty Feet Away.
ESCAPE IN THE CROWD
Victim Helpless and Gagged
as Culprits Pick
Out Loot.
:?;$ ? ; ;
GET ALL EXCEPT SAFE
Suspects Halted After Colum
bia Theater Jol) Prove
Wrong Men.
Two young bandits of unimposing
appearance went a few minutes after
9 o'clock last night into the jewelry
store of Abraham Michelson at lil
West Forty-seventh street held him
up at the point of revolvers, bound and
gagged him in a rear room and looted
ihe show cases and windows of the
store of jewels estimated to be worth
between $-0,000 and $25,000.
Fifty feet away a policeman was
directing traffic at Seventh avenue and
Forty-seventh street, but he did not
know anything had happened until five
minutes after the robbery, when
Michelson, having removed the gag,
ran into the street blowing a police
whistle and shouting that he had been
robbed. Within less than three min
utes 3,000 persons, including detectives
and m?n and women who had been at
the nearby theatres, gathered about
I the store. Traffic policemen had to
I clear away the crowds to let detectives
into the store.
The store is in the Columbia heater
! Building on the northeast corner ofSev
cnth avenue and Forty-seventh street
And about ten feet from the avenu^
| Michclson said he was removing tra>s
from the windows when the robbers
arrived. Both, he said, leveled pistole
ia blm and one told him to put. up
his hands and step back into the store.
BnndItN Search Store.
Michelson told the deteltives that one
o> the bandits held a gun on him while
ihe other searched all over the utore to
ix ake sure that there was no weapon
concealed anywhere. They bundled him
off to the back room, where they tied
him to a chair and gagged him and
told him to mifke himself as comfort
rl.Je as possible. Then they went back
lr.to the store and proceeded to clean
it out. Michelson /said he coutd hear
them talking to customers every tew
seconds, telling them that the store was
closing for the night.
They stuffed the Jewelry into a lmg.
Then they came back Into the rear
room, toyed with their guns and told
him It would be a good Idea If he kept
quiet after they left. Then they walked
out Into Forty-seventh street and Joined
the crowds.
For three minutes Michelson clawed
and tugged at the cords and rags that
bound him. Finally he broke loose, and,
blowing his whistle and shouting that
he had been robbed, ran into the street
into the arms of Policeman Bright, who
was dire- ting traffic. Bright pulled out
his revolver and stopped a dozen young
men who were walking nearby, but let
them go when Michelson told him the
robbers were not among them.
Crorrrt Rank to Scene.
Before Michelson and Bright could
go back to the store hundreds of persons
standing near the Columbia and Palace
Theaters started on a run for the scene
of the robbery. Policemen for blocks
around commandeered automobiles and
drove rapidly to the store. Among the
first ones there were Detectives McGann
and Flaherty of the Forty-seventh street
station, who Immediately took charge of
the Investigation. They telephoned de
scriptions of the men to Police Head
quarters and a general alarm was sent
M!cho!3on declined to talk about t'he
robbery, but said that he might have
lost as much as $15,W> worth of stuff.
He told the detective* that he had some
Jewelry In a safe but that the robbers
had not touched It. He said, however,
that while he was tied up In foe back
room he could hear them arguing good
naturedlv over the size of the safe and
whether It would he worth while to wait
and break it open or try to carry it off.
"We'll leave It alone." one of them
finally said. "We haven't time to take
everything with us."
SECOND BANDIT HELD
IN SHATTUCK HOLDUP
Corsican Caught and Spirited
to Thit City.
Moaes Bagnoll. a waiter, of 240 West
Twenty-fourth street, one of the five
men indicted by the Grand Jury yea
terdav for complicity In the $<0,0n0
robberv In the home of Albert R. Bhat
tuck. at 19 Washington Square North,
on \pril 2. was caught last night at
? hotel In the "Watchung Mountains
near Plalnfield. X. J., by a squad of
New York detectives under command
of I.leut. Flaachettl of the Italian
Squad and Lieut. Oegan of the Bomb
Squad. He was taken to Headquar
ter* here, and according to the police
confessed to participating In the rob
'JrThe suspect was lrailed to th> Wash
ington House, an old hotel kept b> an
Itnllan in the midst of some quarries
three or four miles from Plalnfield. He
was found hiding In the attic. Ueuts.
Flaschettl and (Segan said that when
the detective* tried to <atcli him he
put up :? n?ht. but was finally over
powered.
The detective* then went throuun the
hotel of which Bngnolll was the only
guest, and searched every room In an
effort ?o find some of the loot taken
from the Shattuck home, but without
eucc?s?. |, - .
When he was caught, Bagnoll denied
Co*'' ned on P?f? Tea.
Commission Is for Lease
of New York P. O. Annex
WASHINGTON. April 12.?
Recommendation that the
Post Office Department
j lease in.stead of purchuse a bulld
j frig In New York to be used as an
| annex to the main Post Office
j building- is contained in a resolu
| tion adopted to-day by the Joint
! postal commission.
The building, under plans now
being formulated, would be built
by private interests under an agree
ment that the Post Office Depart
ment pay $25,000,000 for a twenty
j year lease.
ARBUCKLE IS FREED
1 BY JURY IN MINUTE
Film Actor Acquitted by Ac
elnmation in Rappe Man
slaughter Case.
PROSECUTOR SATISFIED
Defendant Borne Out of Court
by Spectators?Has No
Immediate Plans.
San Francisco, April 12.?A verdict
of acquittal was returned to-night in
the third trial of Roscoe C. (Fatty)
Arbuckle, film comedian, on a man
slaughter charge growing out of the
death of Virginia Rappe, motion pic
ture actress. The jury was out six
minutes.
Arbuckle received the verdict with
a great slgb of relief. Mrs. Mlnla
' Durfee Arbuckle, the defendant's wife,
j cried quietly. Both she and Arbuckle
I shook hands with the jurors, the quick
1 return of tyhom was a surprise.
Tlie verdict was by acclamation, the
deliberation taking less than a minute.
The additional time was consumed by
details.
Jurors and spectators crowded aroun-1
Arbuckle and his counsel and finally
bore him off to the Jury room to con
gratulate him further.
Has No Immediate Plana.
"Arbuckle has no Immediate plans."
Gavin McNab. his chief counsel, said.
"It was a splendid victory."
"The Jury did its duty," wag the com
ment of Milton T. Ulren, AssUtant DU?
! trict Attorney.
The third trial began March <? and was
j marked by the appearance of seventy
j witnesses and the calling of two of the
j defense witnesses before the Grand Jury
: in connection with their testimony. It
1 was longer than either of the previous
trials, lasting five weeks.
Much emphasis was placed on expert
incdlcal testimony regarding the exact
condition of Miss Rappe before and
after death. This testimony was based
on an autopsy llndlng that the actress
came to her death through a rupture.
The defense evidence was to the effect
that Miss Rappe came to her death as
the result of a sudden crisis in a chronic
illness, which led to a ruoture.
As In the second trial, fourteen jurors
heard the case, two being alternates.
Four of the regular jurors and one al
' ternate were women.
Mrs. Arbuckle expressed her thanks
tc Mc.N'ab by kissing him. The Jurors
held an informal reception with Ar
buckle in the jury room while newspaper
photographers took pictures.
1 A group of Jurors hended by Brown
i issued a statement which said:
"Acquittal Is not enough for Roscoe
C. Arbuckle. We feel that a great in
justice has been done him. He acted
in a manly manner and told a straight
forward story."
t'ounael ChnrKra Plot.
The day was occupied largely by the
concluding argument of Oavln McNab,
chief defense counsel, and I.eo Fried
man, Assistant District Attorney. Mc
N'ab charged that the District Attorney
! "processed" witnesses to "railroad" Ar
j buckle to prison. In answering Fried
| man snld that had the prosecution un
| dertaken to "frame the case" them
? would have hcen no chance for a de
i fense.
I Arbuckle was nervous/ throughout
1 Frledmon's argument. He whispered to
i his counsel at times.
' In his charge Judg?- I.ouderback de
fined manslaughter. He distinguished it
i from unavoidable homicide, which he
I said was not subject to l*gal action
| He also defined medical expert testi
i mony.
I "The fact (hat an Indictment has been
, returned against the defendant Is no
I evidence of his guilt." he said.
The Arbuckle trials coat t:ie City and
| '"ount> of San Francisco something like
? 20,000
For the defense it Is estimated that
: Arbuckle or hl> backers will have to
j foot a bill of $80,000. It is said that
I Gavin McNab. chief counsel, con
! traded for a fee of $50,000.
I.os Anoki.es, April 12.?Whether mo
rion pictures showing Roscoe Arbuckle
I will be shown again Is to he determined
j by the board of directors of the Famous
! Playsrs-Lasky Corporation, whose head
> quarters Is In New York.
Copley and Ireland, Who
Voted for Raid, Defeated
in Illinois.
HAD LEGION SUPPORT
Results Cause Sensation in
Congress, ^ itli Increasing
Anti-Bonus Reaction.
PRESSURE ON SENATORS
Lobbyists Are Trying to Stam
pede Upper Chamber Into
Quick Action on Bill.
Br LOUIS SKIB9LD.
Special Dinpatch to Tub New York Hbbai.d
?w York nri-ald Bureau. I
Wnnhlnitton. 1>. C.. April I ..
The resentment of voters against
the $3,000,000,000 bonus laid on the
national treasury was expressed in no
unmeasured terms yesterday.
Representatives who surrendered to
the threats of the American Legion
and other bonus propagandists now i
have cause to regret their action. Sen
ators who are being held to their
"promises" also saw food for thought
in the primary returns from at least
two Illinois Congressional districts.
popular wrath over th*. bonus raid
was partly responsible for the defeat or
two of the strongest men in the lower
house of Congress. In rejecting Ira
c. Copley the voters of Illinois also
rebuked Chairman Fordney of the
House Ways and Means Committee
and Senator -Arthur .T. Capper, the
captain of the farm bloc ir. the upper
house. .
Both of these men indorsed Kepie
sentative Copley. They wrote letters
to his constituents urgine his nomi
nation. Mr. Copley Is a member of the
Ways and Means Committee and as
sisted In framing the certificate loan
, bonus monstrosity which is now in the
Senate Finance Committee. Ho made
his fight largely on the bonus and
boasted of his activities in framing
and advocating its passage. T.ocahy
he was a "dry" and this helped to
bring about his defeat.
Defeat Cna?e? S*n?.ntlon.
His opponent and conqueror. Frank
R Reld. declared himself opposed to
' the bonus and for liberality In the
liquor laws. Mr. Copley is one of the
I veterans in the Illinois delegation and
| iiia defeat caused a sensation in Con
gressional circles.
I The other Illinois bonus Representa
tive who went down to defeat was
ClifTord Ireland of the Sixteenth dls
1 trict. who was one of the most active
! promoters of the bonus rsid during the
contest in the House, and he. too. made
his fight for renominatlon on his
I championship of that measure, as well
as on the wet and dry Issue locally.
He was backed by the Anti-Saloon
League. William E. Hull, his rival,
openly opposed the bonus in his cam
paign. Both Copley and Ireland were
solidly supported by ex-service men
lemandlng the bonus.
I As the contest over the raid in the
1 Senate will be reduced finally to a
political proposition pure and simple
I the results of the two Illinois contests
! which were fought out on the bonus
iasuo probably will not be without ef
fect on the minds of some Senators
1 who Intended to vote for the bonus
The bonus raiders who are training
' their verbal guns and their threats of
political reprisds on Senators are try
ing to stampede the members of the
upper chamber Into immediate action.
The lobbyists of the legion and their
I volunteer associates have made a re
quest to the members of the Senate
Finance Committee to report the
House's certificate loan bill at once,
with or without amendments, because
the propagandists are entirely indiffer
ent as to the terms so long as they
get the money.
Drtrrtton of l.enlon Member*.
Growing opposition to the bonus
scheme is not only being reflected in
the primary contests but in the in
creased defections oil the part of mem
bers from the legion itself. The latest
incident in this respect was the sur
Conllnned on Page Kle>en.
Army Insignia Illegal for Police,
Say Officials of War Department
Police Commissioner Knrlght has
Issued an order that the superior offl-,
cers of the Police Department shall j
war insignia similar to that of Cnlted |
States Army officers, beginning with
the police parade on May 6. The or
der provides for the Chief Inspector
to hmi' the two gold stars,of a Major
General. the Deputy Chief Inspector
to wear the silver star o( a Brigadier,
the Inspe tors the silver eaale of a
Colonel and the Deputy Inspectors
the gold oak leaf of a Major.
When this order was called to the
attention of the War Department In ;
Washington yesterday, officials there!
said that the wearing of such Insignia
wan clearly. In violation of aectlon 185
of the .National Defense act of 1!MS,
which sots forth that only an officer
or enlisted man of the army, navy or
marine corps shall wear the naval,
military or marln" corps uniform or
any distinctive part of It.
"t'se by poilce officers," It was said
at the War Department. "clearly does
not come within the provisions of the
act and Is unlawful."
Officers of the army nt Governors
Island also were of the opinion that
the nolice would be acting Illegally to
wi-ar the army ln*ignta. even though
they wore it on their collars instead
of their shoulders. Commissioner En
rlght could not be ?"cn at Police Head
quarters, and his recretary would not
ask him why ha had Ismied the order.
RUSSIANS OBTAIN DELAY;
REGARD EXPER T'S REPOR T
ATTACK ON SOVEREIGNTY
BANKS TO BALANCE 1
WORLD'S CURRENCY
i International Conference Pro
posed to Bring: Back Fi
nancial Equilibrium.
WANT U. S. PARTICIPATION
I krainian Premier Points to!
Russia's Disarming and
Budget Reduction.
Genoa, April 12 (Associated Press).
| The necessity of bringing about equi
I iibrlum in national budgets, if the
j European situation is to be stabilized,
I forrped the most important subject of
discussion at the meeting to-day of
' the subcommission on ? finance, at
which Sir Robert Stevenson Home,
j the chairman, Chancellor of the Brit
ish Exchequer, proposed a special in
ternational conference of great banks I
authorized to issue currency, liv order
to study the best means of attaining
| equilibrium of world currency.
Sir Robert especially recommended
that American Federal Reserve banks
should join in the conference, so as to
make it really effective, and he
thought particularly that American
banks should be represented owing to
the great quantity of gold concen
trated In the X'nited States.
| The commission decided to make the
London experts' report the basis of its
deliberations and to appoint another
subcommittee to examine exchange,
with a second subcommittee to study
credit.*, the commission Itself devoting
its labors to the question of currency.
Dr. Andreas Hermes, the German
Minister of Finance, created some com
motion by alluding to the question of
reparations. He declared that the Ger
mans had examined the London report
and were in accord on many points, but
wished to emphasize that (lermany
J would And extreme difficulty In estab
lishing equilibrium In her budget while
t obliged to support heavy payments ex
ternally. Germany, he promised, will
I bring in practical suggestions later.
RnaaJn Auffm to Dailgrt Reform*.
i M. Rakovsky. Sovlst P'-emier of
ITkralne, addressing the subcommi.slon,
! . erlared that on the iir'rclpal question
1 the London ' xp?.*ts' report corresp inded
' with the wishes of the Coviet Gov?*n-"
mcnt. notably as regarded the np <ty
j of ending the Issuance of paper money.
: He added that the Sov'et Government
i had already made great efforts to bal
| ance its finances and th-t all but about
j one-seventh of the deficit In the Soviet
I budget had been covere-l, while the num
! ber of State officials hat* been redjeed
j 4 0 per cent.
The prolonged war. said M. Rakovsky,
; had ruined Russian finances. The Soviet
on January 1. 1920, hnd 5,360,000 sol
idlers under arms. These had been re
duced on January 1, 1922, to 1,450,000,
one-quarter of that number being on the
frontiers. The military expenditures
; had been reduced 24 per cent. He
added: "Russia has already disarmed,
i but all will be useless until the great
! masses of gold, which really belong to
all countries, shall be distributed fairly,
instead of being concentrated in the
hands of a few nations. No ameliora
tion is possible without disarmament."
Upturn to f.oltl Standard I riced.
Emil ll-ckstadt, Danish delegate, who
was a number of the commission which
investigated the financial situation In
| Austria, urged the imperative necessity
' of returning rapidly to the gold stand
ard as the real basis of world cur- I
rency, and thus bring about equilibrium
in the budgets. He emphasized the ne
| cesslty of adapting special measures to
restore credit in countries like Ger
many, Austria and Hungary.
The question as to which subcommis
sion should discuss the question of
nuances connected with the reconstruc
tion of the devastated provinces of
France and Belgium arose and Chair
man Home ruled that It should be taken
up by the subcommittee on credit.
Sir Robert outlined the greHt goal of
the conference as: First, to establish
an agreement on the financial programs
I of all Governments; second, to achieve
the financial equilibrium of the budgets
j of ali stairs, and, third, the establlsh
' tnent of the gold "tandard as an eftec
j tlve monetary unit.
The report on financial questions pre
pared by the Germans and presented by
, Dr. ltathenau. deals especially with a
plan for the stabilization of exchange
| through an International loan, and also
outlines a proposal for universal mone
tary reform. The Herman plan consid
ers the reconstruction of Russia indis
pensable for the successful issue of any
such reform.
The sub-commission Is composed of
delegates from the five inviting Powers
find one representative from Russia,
?"?ermany. Norway, Serbia, Holland. Lnt
\ ia and Switzerland.
HITS MAN IN COLLISION,
WRECKS A STOLEN CAR
Thief Pulled From Wreck,
Then Escapes in Bronx.
A thief stole an Automobile owned by
.fohn Dlttrlck. a !>alesmiui of 2555 Grind
i'oncOUf?. The Bronx. last night, drove
, It approximately flvr miles In twenty
five minutes until he struck a pedes
trian, then had n collision with nqoilipr
machine and In the resulting hubbub
ilMt'le hi* escape.
The injure 1 man Is Oswald De Mar
tlni. Hired 20, of 591 Ka*) ldfith street,
who wmi struck at 185th street and
<'attldtrell avenue. At thf? same point
the ruthless driver run Into a cnr driven
by Philip Egbert of 921 Rast 165th
? ?treet. The tnlef upset his motor, tore
i off Its two left wheels and was pinned
under the steering wheel. Pivaersby ex
, trlcated him and no sooner was he freed
I th Tp he disappeared.
\ j
May Ask F. A. Vanderlip
- for Financial Advice
GENOA. April 12 (Associated
Press).?Frank A. Vander
lip of New York visited tlie
conference building to-day and met
many of the delegates. Sir Laming
Worthington-Evans said it was
likely Mr. Vanderlip and other ex
perts on currency and exchange
might be askedf to confer with the j
sub-commissioiris, as the conference
is inclined to avail itself of the best j
advice. The American Ambassador j
to Italy. Richard Washburn Child,
visited Kignor Schanzer. the Italian '
Foreign Minister, who supplied him
with particulars of the proceedings
of the conference.
" PLEA
FOR DELAY DENIED
Reparations Commission to De
mand Immediate Aecept
ance or Refusal of Terms.
1
STAVES OFF NEW CRISIS
Convinced Germany Can Pay,
Knowing; Costs and Profits
Made Abroad.
Special Cable to Tub Sr.xv Tour Hbrai.p
Copyright, 19!7. by Tun New Yop.k Hbhai.d
New York Herald Bureau. )
Pari*, April 13. (
Germany's effort to balk the Repara
tions Commission's demands for pay
ment by seeking the decision of neu
tral nations on her capacity to pay j
met an early .loath this afternoon
when the commission decided to re- j
ject the German counter proposals. A
note to that effect will drawn up
to-morrow and will demand again the
immediate acceptance o- refusal to
meet the Allies' requirements In its
note of March 21 for budget reforms
and financial control by an allied com
mission. according to the statement of
a high official of the commission this
afternoon.
By sending a new note, although it
will not accord the Germans the privi
lege they sought of reopening negotia
tions, the Reparations Commission is
staving off a crisis which would have
a certain repercussion at Genoa.
For the time being and until May Si
the moratorium Idea still governs the
German payments, the next of which is
due on Saturday and amounts to 18,000,
000 marks gold. Fifty millions more
must be paid by May 13. Agents of the
reparations commission in Berlin have
reported that Germany 1s making ar
rangements to meet the first payment,
but is likely to allow the commission
to report to the allied Governments that
she has defaulted on the second, simul
taneously with her default in the com
mission's demands for financial changes,
which the Wirth Government spparently
has decided it !s safe to reject.
"The commission is absolutely con
vinced that Germany Is able to pay,"
The New York Herald correspond
ent's Informant said. "For two years
we have studied every angle of the
German financial system and we lyiow
Just what her business Is producing
and what it costs to operate every fac
tory and what she is getting In the way
of prollts abrond. We consider Ger
many's reply merely a new effort to en
able German financiers to set their
wealth secreted before the German Gov
ernment writes laws meeting our de
mands or decides to take the risk of
either allied or individual pressure,
which will result if we are obliged to
report to our Government that she has
failed again to meet her obligations."
Special Cable In Tub New York Hbhalo
Copyright, tfltt, by Turn New Yosk Hwui.d
Genoa. April 12.?The Germans re
ceived news to-day of what may prove
to be their one concrete benefit from
the Genoa conference. It was word
to the effect that their refusal to ac
cept the conditions laid down by the
Reparations Commission as to the re
form of German finance# probably
would not lead to sharp measures by
the French Because of the peaceful
atmosphere crested at Genoa.
The fear bad b<*en that the German
note of refusal would be the signal for
new sanctions, but two leading mem
bers of the German delegation arrived
from Paris this afternoon and expressed
the opinion that a crisis mould be
averted,
RUSSIA OPENING
TRADE RELATIONS
Moscow Removing Restric
tions; Allowing Importations.
Moscow. April 12 (Associated Press).
?The Council of Commissars has re
stored the right of private ownership of
automobiles In Russia and has an
nounced that the Importation of auto
mobiles. motorcycles, bicycles nnd their
nctersorles will be permitted through the
Foreign Trade r'ommltssrlst. Som*
American automobile agencies already
have placed orders with the Supreme
Kconomlo Council, paving th? way for
expected developments at the Genoa
economic conference.
All re-trlrtlons on freight shipments
over Hussion railways have been re
moved. Individuals now can ship up to
ten carloads without permits from th?
Government. The Soviet State Bank
announced it would accept foreign cur
rency for transfer abroad, payable In
, the 'ante kind of currency, with the
Itiausl discount rates.
nil M> WYTHIWi?
I If ??, see If It Is advertised In the l???t snd
I Found columns of to-day's New Yotk ttsrald.
I -Adv.
IS XOT ACCEPTABLE
Soviet Views Public
Debt and Judiciary Pro
visions as Infringing
Sovereignty.
GOOD HUMOR PREVAILS
Japanese and Rumanians
Smilingly Answer Protest
Against Presence.
BASIC QUESTIONS AVOIDED
Lloyd George Playing Golf
With Tchitcherin May Yet
Save Europe.
Special rahl, to Tub New To** Hrt?.n.
Copuriaht. 19!?. by T?? Nrw Vobk Hbmib.
Genoa, April 12.?The report of the
allied experts on Russia is suspended
like a storm cloud over the Genoa
| conference. The Russian delegation
have asked a postponement to the
next session (Friday) of the sub
commission of the main commission
to deliver their answer. At that ses
sion Prime Minister Lloyd George.
Louis Barthou. head of the French
delegation, and Georgevitch Tchi
tcherin and other members are to
proceed with the main work of the
conference.
Two features of the report have
>een pronounced unacceptable to tho
Soviet leaders: the public debt and
the judiciary provisions, which they
consider arbitrary infringement of
Russia's sovereignty. The Germans
also are opposed to the Russian- re
port, because it gives the Russians
the right to make war claims against
Germany under the Treaty of Ver
| sailles and perpetuates the decree of
I the Czar wiping out German prop
I erty rights in Russia.
Hum.tH,i, mud,. Rrpor|>
The British were at pains to-dav
tc make it plain that the experts' re
port was not made in the name of
nny one Government, aud bound no
one even to consider it. The Rus
sian delegation are considering it
however, and naturally have taken
an intransfgeant attitude, declaring
t pj will object to some parts and
make many counter proposals, but
the odds are heavily j? favor of the
report forming the basis of an ar
rangement whereby Russia will re
enter the comity of nations.
Speaking to another delegate to
eajr. Adolph Joffo said the Russian-!
ould insist upon compensation for
losses suffered by the Sovietists. ow
1"*/? A"8lo-French intervention In
but the report recognizes the
Soviet right to deduct these losses
wherefore the underlying principle
of the report is pretty certain to he
accepted.
The Russians are agreeably sur
prised at the generally reasonable
conditions laid down by the experts,
whose object is clearly not to penal
tee Russia. but to make possible the
building up of Russia by foreign
capital.
The Russian question is in an inter
esting but not a critical stage. Yester
day in the number one commission,
which formed a subcommission un
der Carlo Schanzer. the Italian For
eign Minister, to consider political
questions?mainly of Russia?and
which therefore is by far the most
important commission and the one
upon which everything hinges?
Prime Minister Lloyd George sug
gested that there could be no bette
I method than to use as the basis of
discussion the Russian report pre
pared by the allied experts in London
and handed to the Russian delegation
yesterday.
liaml Kfflln* Prevail*.
Members of the commission com
mented upon the notable good humor
which prevailed throughout, taking it
as a good augury of the success of
the conference. When M. Tchltcherln,
as head of the Soviet delegation,
asked for more time there were
friendly exclamations of "Certainly*"
ltd ' You njust have time to study
the report fully!"
This welcome good temper is char
acteristic of almost all the proceed
ings of the conference. For example,
when M. Tchltcherln protested yes
j ferday against the presence of the
Japanese and the Rumanians the pro
test wan taken gracefully by the 1st
? ter. who said they had! accepted the
invitation to the conference in a
spirit of conciliation and were ready
In this spirit to dlscusB Bessarabia
i with Moscow's representatives. The
Japanese, also smiling and concilia
i tory, expressed mild surprise. All
' recognized that M. Tchlthcerin's pro*