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The New York herald. [volume] (New York, N.Y.) 1920-1924, April 29, 1922, Image 1

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MAY I 1922
Fair to-day and to-morrow; slowing rising
temperature; moderate westerly winds.
Highest temperature yesterday, 56; lowest, 38
Detailed weather report* will be tound on Editorial page.
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, SATURDAY, APRIL 29, 1922?no^,S:cSw cvoS.
$212,444TO SUBWAY
Three Key Contracts for
14tli Street and Other
Tubes Are Passed.
'Demands' Action bt Tran
sit Board in Series of
McAneny Says Estimate Body's
Explanation Is 'Mendacious*
and 'Smoke Screen.'
Mayor Hylan and the Board of Esti
mate bowed yesterday to the mandate
of Gov. Miller. They approved unani-1
mously three important "key" con
tracts for subway construction aggre
gating J212.444.75. Just nine days had
elapsed since the Governor, speaking
on April 19?Lexington Day?had
denounced the city administration's
policy of transit obstruction and had
ordered it stopped under penalty of
"more drastic action."
Of the three contracts voted, all of
^rhich have been in the hands of the
Board of Estimate since last summer,
the first was $95,600 for ties and tim
ber for use on various lines, but largely
for the Fourteenth street-Eastern Dis
trict B. R, T. subway, the dire need of
?which transit artery Gov. Miller had
emphasized in his address. It went to
the board May 26, 1921.
The second, in tlie sum of $19,500,
was for "treated ties" exclusively for
the Fourtenth street-Eastern District
line, and the third, appropriaing $97,
444.75, was for track installation in the
Livonia avenue yard of the Inter
borough's Brooklyn extension. They
were sent to the board on July 6 and
May 26, respectively, 192L
Kxchm Action of Board,
Mayor Hylan issued an explanatory
comment In which he endeavored to shift
upon the Transit Commission the burden
tor the long delay. The Mayor t aid:
"I am voting to approve these three
contracts because the prices are now
not widely at variance with present
market prices. In doing this I am alive
to the fact that If the State Transit
Commission had advertised these con
tracts after we declined to approve
them last August it could have obtained
lower prices, particularly along about
September of last year. It 1? only be
muse market prices have gone back a
ilttle that I approve these contracts at
this time, but this does not excuse the
nine months' delay of the State Transit
Commission in the matter. It could
)ii?ve readvertised these contracts at any
time during these past nine months and
could have had them back her-: within
uny two week period. 011 a lower basis."
The capitulation by the Board jf Ksti
Mau was accompanied also by a long
( reamble and resolution, introduced by
the Mayor and adopted unanimously by
Ills colleagues. It was a detailed Indict
ment of the Transit Commission for
that body's alleged sins of omission and
/ommsslon. Members of the Transit
Commission characterised It as 'Mie
most amazing display of inaccuracy and
mendacity ever spread upon a public
It cord," and as "a smoke s Croon emitted
fti an efiort to save Its lace by U*e city
Transit Chairman Plemcd.
George McAneny, chairman of th?
Transit Commission, uald :
"The action taken by the board In
finally approving the delayed key con- |
tracts for the Fourteenth street and Li
vonla avenue work Is of course pleasing
to the Transit Commission. Both of the
major contracts in question?that for I
ties and timber, without which no track
work at all could be commenced, and
that for the track Installation In the Li
vonla avenue yard, without which th? '
Livonia avenue extension, otherwise long i
since completed, cannot be operated-' 1
Were sent to the Board of Estimate on
May 26. 1021.
"There has been, therefore, a llttls j
more than eleven months of delay. That |
period has measured in turn the delay <
upon the other part* of these two 1m- '
portunt lines. The contracts returned to
the commission two days ago and Blnce I
readvertised were for minor parts of th?
work. (They aggregated ?85,?'00, chiefly |
for spikes, nuts, bolts, tie plates, &c.)
The vital part of the delayed work can |
now proceed without interruption.
"The commission lias no further com
ment upon the incident of the moment
cxcept to suggest that the record com
pleted by the Hoard of Estimate to-day
speaks for Itself. The general resolu
tions adopted by the board concerning
previous failures of action, which the
commission must regard somewhat In the
nature <' a 'smoke screen' for the action
that followed, we assume will be for
ti 1 illy submitted to us. When they are
received and the various suggestions
they carry have had proper considera
tion the board may be assured it will
get a prompt reply."
Telia of Good Intention*.
The preamble and resolutions, which
Chairman McAneny branded as "menda
cious'' and "a smoke screen," set forth
that "the Board of Estimate and Ap
portionment has been desirous of taking
favorable action upon contracts in order
to progress construction of the Four
teenth street-Eastern District line and
iMieh other subway construction as Is
under way."
The first of the series of resolutions
"condemns the Transit Commission for
i, inexcusMble nine months' delays in
u 'idvertlslng contracts in connection
with the Fourteenth street-Mat.tern Dls
Continued on P?pre 8ev?*n.
TlimMral and llo'el .ml nirnnts.
Advertising will ba tuund an i'age tt.?<44v. 1
Daylight Saving Starts
at 2 Sunday Morning
T-NIGHT is the night for New
York city to put the clock
forward one hour. Daylight
saving time starts at 2 A. M. to
morrow. Changing of the clocks
and the movement of suburban
trains will be synchronized. The
Long Island Railroad will operate
on daylight saving time, as it did
last year, but the other railroads
entering the city will run on East
em standard time. A rearrange
ment of schedules will, however,
enable the commuter who has been
using the 8 A. M. to arise at the
usual time and catch the same
train despite the fact that the clock
at the station will register 7 A. M.
when she pulls out. The railroads
have found it impractical to run on
daylight time.
V >
Bill of Senator Harrison Would
Have Revenue Act Exclude
Such Foundations.
Mississippian Denounces Com
missioner Blair as Ruling
Is Held Up.
Special Dispatch to Tub.New Voik Hbbald
New York Ilcrald Riirrmi, I
Washington. D, C? April 28. I
Senator Harrison (Miss.) introduced
a bill to-day to amend the revenue act
of 1921 so that persons who contribute
to the Wilson Foundation can have
the amount deducted from their In
come tax. The bill also provides such
exemptions for every corporation,
community, fund or foundation or
ganized and operated exclusively for
religious, charitable, scientific, literary
or educational purposes. Special men
tion is made in the bill of the Wilson
Foundation and posts of the American
Senator Harrison explained that he
was prompted to introduce the bill by
a ruling of Internal Revenue Commis
sioner Blair to the effect that sums
contributed to the Wilson Foundation
are not deductible from income tax
The Mississippi Senator scored the
ruling as "partisan, puerile and pica
yunish." He declared that only re
cently the Internal Revenue Depart
ment had ruled that contributions for
the Roosevelt Memorial Fund were
deductible from income tax returns,
and at a previous date had given a
similar decision as regards contribu
tions made to the McKinley Memorial
Not on Partisan Basis.
"I am sure that the ruling: just made
by the Internal Revenue Department
concerning1 the Wilson Foundation,'
said Senator Harrison, "does not express
the sentiment of the Hi-publican Senators
In this body. I am sure that the people
of the country will be surprised, if not
disgusted, by the decision.
"The Wilson Foundation is not being
established on a partisan basis. Pei ?
sons in all walks of life, of both political
parties, are contributors, Including foi
mer Postmaster-CJeneral Hays."
Senator Harrison said his bill aimed
to rectify the injustice of the ruling
and he hopes It will meet with little
The Wdodrow Wilson Foundation was
held by Commissioner Blair to be "civic"
rather than educational, and he ruled on
April 7 that contributions made to it
were not exempt from income taxes.
Commissioner Blair held that the
foundation differed essentially from both J
the Roosevelt Memorial Association am1,
the McKlniey Memorial Association. H>
defined these two organizations as "ex
clusively educational" and therefore fell
within the class entitled under the
revenue act to enjoy exemption for gift,
of money to educational projects.
The Commissioner, dealing with the
charter of the Woodrow Wilson Founda
tion, held that one of the primary pur
poses of the foundation was to make
awards to Individuals or groups thut
had rendered conspicuous service t
democracy or public welfare.
Rnllnir l? Held t'p.
The bureau was in turmoil through- j
out the day over the question of making
a full explanation of the decision, bu'
apparently the political effect of suc.i
action was feared by some officials.
Mr. Blair was absent from Washing
ton, and Acting Commissioner Smith
gave orders that the ruling must be
suppressed temporarily.
Reports became current about the
Treasury that because the ruling might
be seized upon by Democrats to make
political capital there should be further
deliberation over It before it was for
mally promulgated. Officials said the
ruling was In final form, so far as tin
legal advisors of the Internal Revenue
Bureau were concerned.
What Commissioner Blair would do
about the matter upon hi* return to
Washington, probably to-rrfirrow, offi
cials refused to predict. But the fact
that a ruling has been drafted, bearing
official approval, and yet ha* not been
allowed to follow the regular routine
procedure of being issued like other
Treasury decisions, may stir up a fur
ther row In the Treasury* Department.
Officials in authority would not discuss
the provisions of the ruling.
Officers of the Woodrow Wilson Foun
dation said yesterday that while they
were averse to becoming involved in a
controversy with the Internal Revenue
Bureau, they would contest the ruling
that contributions to the Foundation
are not tax free. It was pointed out
that the Foundation has not been Im-or
porated and that until It has been Its
character cannot br passed upon with
uny ilegrei of Intelligence. The officer*
believed their organization was as much
entitled to exemption as were the Mc
loaUnne* ?* r?#e i ? or,
Puzzle in Apartment Hotel,
Seems Without Solution,
Say Investigators.
Analyses of Contents of Two
Stomachs Not to Be
Ready for a Week.
They Can See No Motives, but
Are Sure Elderly Couple Had
No Thought of Suicide.
The possibility that Mr. and Mrs.
Freemont Madison Jackson, whose
bodies were found in the bathroom of
their apartment in the Hotel Margaret,
Brooklyn, on Wednesday morning,
were killed by poisoned fruit was
advanced yesterday by Dr. E. M.
Vaughan, medical examiner for the
District Attorney of Kings.
Thus far this solution to the mys
tery around the death of the devoted
pair cannot be more than a theory.
Just what caused death will not be
known officially until the chemists
have returned their report to District
Attorney Ruston ill about a week.
The police have abandoned their
first conclusion that Mr. and Mrs.
Jackson died natural deaths or, at the
outside, by poison accidentally taken.
They have reduced their theories to
two. Last night they admitted that
either the Jacksons died in a sulcidc
compact or were poisoned by some one
who sent them tropical fruit loaded
with a drug or chemical composition
that would cause quick paralysis and
ensuing death. Of one thing. Dr.
Vaughn seems quite sure?the Jack
sons did not die of ptomaine poisoning.
Plnm In Hnxband'H Stomach.
Among the most important supporti
for the murder theory Is the finding in
\fr. Jackson's stomach of a large piece
of fresh plum. That it was a fresh and ,
not a preserved plum la certain, ac- j
cording to Dr. Vaughar. He satisfied i
himself on this point before making I
1 his statement. That, however, is only ]
i one of the circumstances prompting the ;
police to change their Investigation
tactics. They said that if the chemist's (
report sustains their theory of a pos
sible murder, they have on their hands
one of the most elaborate mysteries :
i New York has seen for years.
There Is not thus far anything re
, sembllng a motive for murder nor Is
there any reason to believe the suicide |
j theory. The Jacksons were In excel- !
: lent health despite their years. Their j
j compatibility was commented on by 1
i those who knew them. Both had more j
than sufficient means to maintain them ;
j In ease for the rest of their years. The
! police have found that Mra. Jackson 1
had at least IIO.'XIO In cash and prob
ably that much more in securities.
I Her husband was worth much more, I
1 including two tenement hoses at 405- 1
: Vft West Fifty-third street.
1 Not the least of the unusual features 1
! of this case Is the fact that despite
j the evidences of death by poison, no :
container that might have held such
j death agency was found In the apart- j
j ments. Neither was there any evl
' dence that either of the \*ictlms had
; received a package that might have
' contained poisoned fruit. There were !
no plum pits nor fruit peelings. There 1
was nothing outside of the bathroom
| to Indicate anything unusual.
Hv?ry Hint tn Hf Followed.
The salient featurep of the mystery!
a.1? It existed last night were so com- J
pie* that the police declared that all
they could do was to follow every
line of reasoning, no matter how Im
probable, until they arrived at some
definite point.
In the first place no one has been i
found who remembsrs having seen the
Jackson* alive and together aft?r 9:30
Tuesday morning. About 8:80 they en
tered Joe's Restaurant, 330 Fulton j
street, and had breakfast of oatmeal, j
coffne and rolls. Warran "Pitt, a waiter. ;
remembers that. They hreakfnsted at i
Joe's frequently. Pitt always served j
them. He recalls that they were In
??xcellent spirits and apparently In fine
health. |
The couple returned to the Hotel Mar
jtar?t. Mrs. Jackson retired to her
apartment. Mr. Jackson went to Pros
pect Park, where on that part known I
as Grandpa's Playground he Indulged
In his dally round at croquet. Ha had |
been playing croq-iet for thirty yeirs. |
TTsually ho had t">r. George Warden- i
burg of 144 St. Mark's avenue as his
opponent. Other times h>> played alone
as he did on Thursday morning.
Man Unt *een In Offlrc.
The husband th'n app?arcd In an of
fice he maintained at 40F. West Fifty
fourth street, nnd where he sp.;nt a
couple of hours every day. An old fash
ioned desk and an equally antique safe
ar; tprincipal furnishings of the of
fice. Th" two tenement buildings are
worth about $40,000 each. And there i
trace of the old man fades out. From 1
th? time he left Mrs. Jackson In the j
Hotel Margaret aft'r breakfast nothing 1
seems to have been seen of her.
At 8:,30 Tuesday night two potted '
plants, purchased In a Brooklyn de
partment store by Mra. Jackson on Mon- j
day morning, were delivered at the
hotel. A hotel employee took tho plants ]
to the apartment. He knocked at the
door three tlm?>H. There was no an- |
sw.?r. He decided the Jacksons would
be home later so he dropped the plant*
In front of their door. The plants warn !
still there when at 8 o'clock Wednesday j
morning ft housekeeper intered th? j
apartment and found the elderly couple
dead In th<- bathroom.
Neither of the beds In the apnrtment <
hail been si >pt In tiov even rumpled
And yesterday It developed that no one
Continued on Page Nevon.
D*lls Untihla Room?9\)nrifty Ulnner and
five, ^'iiiuert, U-Ui. VeuderbUt Hetel.-vMe.
?. _ I
Ninety Billion Mark*
Raised by German Taxes
BERLIN, April 28 (Associated j
Press).?Speaking at a con
ference of State Finance \
Ministers at Wurzburg to-day, Im- \
perlal Minister of Agriculture
Hermes announced that Germany's
revenue from taxes, &c., in 1921
amounted to 90,000,000,000 marks, 1
an excess of 34,000,000,000 over the
Largest Prison Terms Imposed
Since First Court Formed
Here in 168B.
Two of Five Who Robbedj
Shattuck Home Get Forty
to Sixty Years Each.
Almost five centuries in prison sen- j
tences were imposed yesterday by I
Judges and Justices of tfce criminal
courts of New York county upon
seventy-two men who either pleaded
guilty or were convicted of crimes of
violence In the last two weeks.
This establishes a record that has
never been approached since 1683,
when the first court came Into exist
ence in New York city. The exact
number of years handed out by tfce
courts, based upon maximum sen
tences imposed, was 468.
The figures caused a hum of com
ment during the day throughout the
Criminal Courts Building. One county
officer visualized what the sentences
meant by saying that if a composite
prisoner had received them In 1492,
wfc?n Christopher Columbus first
landed on American soil, that man
would still owe the State of New York
twenty-eight years.
Judare Hoaalnky Sentence* 21.
Over half of the sentences were Im
posed by Judge Kosalsky in General Ses
sions upon twenty-one defendants. Two
of these, Eugene Diaset and Molse Bag
noli, who had pleaded guilty to burglary
of the home of Albert R. Shattuck, 19
Washington Square North, got from
forty to sixty years each.
Punishment has been visited npon th*
Washington Square robbers with excep
tional speed. Each was arrested within
a few days after the burglary, on April
2, held by a Magistrate for action of the
Grand Jury, subsequently Indicted and
pleaded guilty to first degree burglary
on April 21. They will be taken to Sing
Sing on Monday, which will close the
case in one day less than a month.
Diaset and Bagnoli were two of five
thugs, all believed to be French bandits,
who entered the retired banker's home,
locked him, hit; wife and several servants
In a wine vault and stole 170,000 in
jewels. Mr. and Mrs. Shattuck have
sailed for Europe to try to trace the
greater part of the stolen gems, which
they bellcvo have been taken to France.
When sentence whs pronounccd both
groaned and Diaset turned ashen gray.
When led across the Bridge of Sighs
to Tombs prison the deputy sheriffs had
to give them support.
While this wholesale sentencing of
crooks was in progress a report was
published from Police Headquarters that
Thursday night whs one of the quietest
the city ever experienced. During the
midnight to 8 A. M. shift the most seri
ous alarms sent Into headquarters con
cerned only a half dozen missing per
The great number of cases listed for
sentencing yesterday was due to the fre
quency with which pleas of guilty were
entered since April 17. when District At
torney Banton opened his drive against
crimes of violence. In many cases as
pleas were entered date for sentencing
was fixed for yesterday.
On the calendars of the nine parts?
three of the Criminal Branch of the Su
preme Court and six of General Ses
sions?119 defendant were listed for
sentencing. Of this number twenty-one
were postponed and twenty-six sentences
were Huspended. The sentences of the
seventy-two prisoners were almost e/only
divided between Sing Sing, for more se
rious crimes, and the reformatory, peni
tentiary, workhouse and city prison, for
lesser offenses.
I.Is* of !trn<farra Iropoird.
A tabulated list of the number of de
fendants sentenced and the number of
years Inflicted by each of the courts fol
low* :
D?- Rontancei
General Senslons. fmtents. In years.
Judge Roaalsky 21 23ft
Muloufan ? 4ft
Judge T?lley f> 2."S
fudge Mancu?o H 2*.
Judge Mflntlr# .1 22
Judge Johnstone 1 0
8ui>rem? <"ourt.
Justlee Finch 11 flfi
JustlCR Brown (5
Justice Iwvenrtorf 8 1!
Totals 72 4 V)
The nature of the crimes punished
ranged from murder, through robbery
and burglary, down to larceny.
Justice Klnch sentenced frank Pe
chota to thirty years to life for the
murder of Herman Pollock In the latter's
randy and cigar store at 4.12 Kast Hev- i
enty-slxth street on April ?. The Jus
tice raised the minimum from twenty i
to thirty year* because he said the
prisoner could otherwise get out of I
prison In thirteen years through good |
"This places too cheap a value on j
human life," he said.
Among those who received heavy j
sentences by Judge RoNAlsky were Chrin i
Peppier, Charles Oallaxher and John |
McCSrath, who pleaded guilty to at- I
tempting to hold up a cashier of the !
Masten Construction Compnny at Forty .
first street and Park avenue on March
31. They got eighteen years each.
John McCarthy was sentenced to nerve ;
ten to twenty years by the snme Judge
upon Conviction of the robbery of;
Harry Koves on March 18.
A thirty year sefltcnci was Imposed :
by Judge Mwlq.ieen on Harry Testa, :
convicted of robbery In the first degree
> |
CobUbwA ob riK Hum. '
La Follette Charges Specu
lators Got Advance News
of Teapot Dome Deal.
McCumber to Sidetrack
Tariff to Give Matter
Bight of Way.
Dealings in Sinclair Oil During
April Present Interest
ing Figures.
Special Pis patch to Tub Nbw Yo?k HbbALD.
New York Herald Bureau. )
Wnslilnrton. D. C.. April 2?. 1
Senator La Follette (Wis.). In dis
cussing to-day in the Senate his reso
lution of inquiry regarding the leas
ing of the naval oil reserve at Teapot
Dome, Wyo., made veiled charges that
advance information given to specula
tors on the New York Stock Exchange
netted them $30,000,000.
Senator La Follette stated that while
the lease was given to the Mammoth
Oil Company, a subsidiary of the Sin
clair Oil Company, on April 7 by the
Secretary of the Navy and the Secre
tary of the Interior, "the fact that It
had been executed was not officially
admitted until April 21."
"During the time between April 7
and 21." he added, "wnen this mys
tery surrounded the public s business,
speculation in Sinclair OH jumped on
the New York Exchange In three days'
trading more than $30,000,000.
Following are the sales on the New
York Stock Exchange of .Sinclair Con
ciliated and the closing pricea between
April 7 and 21: do^ng
April 7? 18.700
April 8? 5.100 25 M
April 9?Sunday. ~~~
April 10? 17,100 -5%
April 11? 11.500 , *5 A
April 12? 40,000
April 18?107.100 29%
April 14?Good Friday. ~?
April 15?122.500 3"Vj
April 18?Sunday. ??
April 17?261.700 32%
April 18? 80,500
April 19? 92,700 ?
April 20? 28,600
April 21? 25.900 3?
"At the very time when correspond
ents were being assured by officials o*
the Interior Department that no leaae
of the rich naval reserve had beer
made." Senator La Follette went on, "a
certain gentleman, prominent In oil.
racing and Administration circle#, pub
lished a statement In a New York news
paper that the leaae had been signed
This gentleman was none other than
Harry Sinclair of the Sinclair Oil Coir.
Prmldrnt Seek*
Reports at the Capitol to-day were to ,
the effect that President Harding wad
no) satisfied with the leas* of Teapot j
Dome and had asked the Navy and In- !
terlor Departments to .submit to him all i
the details. At the White House no In- I
formation was forthcoming: on the sub* i
Senator La Follette served notice he j
would call up his resolution at an earl\ '
date, perhaps to-morrow, and unless :
there Is quick action on it, he declared i
"there will he no peace or quiet here."
He was supported In his contention for |
an investigation of the lease by Sena- i
tors Poindexter (Wash.) and Mc- !
Cumber (S. D.).
"If It Is a fact as claimed by the Qov- ;
err.ment officials that private wells wer-. j
tapping oil In the naval reserve," nald j
S> nator Polndexter, "that fact should be j
established beyond all doubt.
"Again, we should be informed ait t">
the making of the lease and all the
frets leading up to It. The Government
officials should convince us of th"
reasonableness of the contract and the
propriety of the terms. The Congress t*
entitled to know, and the country Is ?n
tlt.ed to know. If the Interests of the
Government have been properly pro
Senator McCumber said he favored thi
resolution and was Inclined to lay aside 1
the tariff bill for a reasonable time for ,
Its discussion.
"Ureat Wrong to H>omiii|."
The Wisconsin Senator ridiculed the
contention made by Secretary of the
Navy Denby and Secretary Fall of the !
Interior Department that they were ,
forced to lease Teapot Dom< because j
private wells were being drilled nearby
which were draining the reserve. In
that connection he produced a telegram
from Gov. Carey of Wyoming, which
read In part:
"From such Information as I havn
been able to obtain, I believe there
1s no chance of the Salt Creek Field
draining Teapot Dome. Regardless
of all other objections to the lease,
a great wrong: is being done Wyo- (
mlng to rob it of one of its most
valuable natural resources and giving
the State nothing In return."
Senator La Follette also declared Dr.
O. B. Morgan, State geologist of Wyo
ming, had sent the following telegram
to him:
"No producing wells In the neigh
borhood of Teapot except Salt Creek
well* My opinion Is that Teapot and
Salt Creek sre separate structures
and practically no possibility of
draining Teapot through Smlt Creek
Senator La Follette then said: "The
excuse that the naval reserves are In
danger of depletion by draining Into
private wells on contiguous lands Is an
old one. It has ever been the specious
plea upon which those desiring to exploit |
these rich fields have based their ef* ?
forts to secure acces? to them. But even
!t th?' weigh' of scientific opinion wer"'
not Hgalnst the contention that the fields
can be drained by outside drilling, there
is a definite way in which the Govern
ment can protect lt?e|f oralnsi such a I
(uttleu uratem oi yUUge, ' 1
ENOA, AprU 28 (Associated Press).?A special drafting com
mittee composed of Sir Philip Lloyd-Greame, Great Britain;
Camille Barrere. France; M. Delacroix, Belgium; Vittorio
Scialola, Italy, and Dr. Motta, Switzerland, is working to-night on
combining the British and the French proposals for Russia. It
worked so smoothly that it completed its work on the preamble
to-night in forty-live minutes and will deal with the remainder of the
memorandum to-morrow.
The French proposal sketches at length the means for restoring
Russia's agrictultural and industrial activities, while that of Great
Britain devotes more attention to credit for Russia.
France insists on the full payment of Russia's war debts and
the restoration of private property to foreigners; Great Britain favors
a reduction in Russia's war debt and is willing to be satisfied if
Russia grants former foreign owners the use of their property instead
of a return of actual ownership.
According to Information from French sources the British draft
proposals suggest that Great Britain has a fund of ?25,000,000 avail
able for development in Russia which could be placed at the disposal
of Englishmen interested in that country.
France also anserts that Belgium and Japan possess large amounts
of capital for economic development in Russia, that other countries
could send technical experts to Russia, while Italy could aid Russia
through her cooperative agricultural organizations.
London, April 29.?A dispatch to the Central News from Genoa
says it is understood Premier Poincare has wired M. Barthou that
if the French draft is rejected or materially moditied the French
delegation should leave the conference.
Charge Them With Trying1 to
Bleed Country for Group
of Capitalists.
Arrival of Russo-Asiatic Com
pany Promoter Inspires
Bolshevist Distrust.
RprrUtI Cable to Thb Skw York Hbkau>
Copi/rlpht, JPttf, 6y Tub New Tohk Hbkald.
Genoa, April 28.?The arrival In
Genoa, at Mr. Lloyd George's request,
of L?eslle Urquart, promoter of the
Ru??o-A?latlc Company, an Kngllsh
concern which has more than ?100,
000 000 worth of mlnea In Russia, In
spires distrust among the Bolshevik!.
They claim that negotiations liav?
been blocked by the Allies" determina
tion to bleed Russia for the benefit of
a small group of great capitalists,
after the Bolshevlkl had proposed a
scheme Involving the compensation
of the great majority of small credi
tors. Rpeaklng on this point M.
Tchltcherin said:
"The present situation In a nutshell
Is that negotiations were rendered
more difficult, principally because of
the question of nationalized foreign
property. The pre-war debt question
could have been solved amicably If
the proposition submitted by the Rus
sian experts. Involving a loan to us,
had been accepted.
"The (treat majority of small holders
of Russian bonds?poor people who had
Inverted In Russia their modest means
earned by their own toll?would have
been satisfied If our proposition hud
been accepted; but that event was ren
dered difficult by the claims of a smill
group of profiteers and high finance
which was Interested In the lar*? Rus
sian Industries before the revolution.
When we speak of satisfying the Just
and reasonable claims of the old private
proprietors, we mean making irood the
losses sustained by small merchants and
workers owing to nationalization, and !n
this as In all cases the Soviet Govern
ment Is particular^- solicitous about the
workers, whom It will tako the most spt
clal pains to Indemnify."
M. Tchltcherin ref< to the Russian
offer to restore small properties, but not
to restore the greater ones that were
nationalized He refers also to the Bel
gians, who have such great Interests In
Rii*?la that they are represented by a
Minister, and also the French, who want
their properties returned. But the Eng
lish. he says, favor a concession, being
willing to accept long loans to run
nlnety-ntne years Instead of full owner
The foreign experts thus fnr have not
replied to the copious Bolshevist pro
tests that the reestabllshmcnt of private
Industry In Russia, so far as foreigners
are concerned, would be a blow at the
Soviet Government's fundamentally So
cialist laws. But one of the most prom
inent experts put the matter Into a nut
shell, saying:
"The Bolshevlkl have abolished So
clallam so far as the peasants are con
cerned. and that's 'jO per cent, of the
pov>ulatlon. Why protest, then, against
a proposition abolishing Socialism so far
as It affects the omall number of for
eign Industrialists to whom we want the
factories returned? The Bolshevlkl
want the towns Socialist and the coun
try Individualist and fear that private
factories will far outstrip governmental
factories, even In the matter of work
men's welfare. The Bolshevlkl fear this
competition, knowing that they certainly
are beaten. They doubt their own prin
ciples. Otherwise they would not be
afraid of foreign Individual Initiative In
PR Mat, April 2N.?For 112 years
the Rott fsmlly of We*f rape May h??
been hoping and praying that a girl
should be horn Into the family. To-day
thl*< Important event took place when
Mrs Edward Rott became the mother
of a girl
Oreat rejoicing resulted and a hi* re
union will be held when the little one Is
Negotiations Quietly Carried
On in Berlin for Contact
Through Caucasus.
Angora Government Seeks Mil
itary and Economic Support
?Afghanistan Cooperates.
Special Cable to Th* New To*k Hbkald.
Copyright, 191!, by Tub Nrw Yo*k Hba?
Sew York Herald Bnrean. )
Berlin, April t?. f
The Allies having closed Constanti
nople to their Intercourse, the Ger
mans and the Nationalist Turks are
seeking contact through Soviet Russia
nnd the Caucasus. By Soviet initia
tive and good offices, secret negotia
tions were opened recently in Berlin
j between the German Government and
i representatives of the Angora Govern
ment. The projected agreement is
primarily economic, as the German
Government wishes to avoid offending
the British by engaging in any po
litical understanding.
The same consideration makes Ger
many very slow to support the free
dom for India campaign and other
separatist movements affecting Great
! Britain, though during the war such
? movements found welcome in the Ger
| man Foreign Office.
The Turkish Nationalists have sought
! both military and economic support In
I Germany. Some weeks ago the Brit
ish secret service frustrated efforts by
the Turks to transport forty German
officers to Asia Minor via Copenhagen
on board a chartered ship.
The Turks look to Germany for en
gineers and experts, agricultural ma
chinery and textiles. The Bolahevikl are
In favor of contact between Germany
ami Turkey by transit through the Cau
casus, and have paved the way for
the negotiations. iHirks In Berlin, havj
declared to Tub New York HbraI.d cor
respondent, that on the whole they are
glad they were not Invited to the Genoa
conference, because they have been free
J to push their cause lr? the European
1 capital* without promises or handicaps.
Indeed, the Turks would have found
! themselves in an embarrassing position
I at Geona In the conflicts between
I Marthou and Tchltchertn, hoads of the
French and Soviet delegations respec
tively, a- the Turks have official friendly
relations with both countries
Afghanistan Is working In dose co
operation abroad with the Turks and th.'
! Soviet Government. She has established
1 a legation In Berlin, and also Is nego
, Mating a trade agreement with Germany.
' German business is in favor of such ne
gotiations with the Near Eastern Pow
er*. owing to opposition In the countries
of the Little Entente and in Constantt
; nople, which hitherto had msde German
trade with the Near East practically im
CoNSTANTiN'run.B. April 21 (Associated
: Press).?A representative of the Turkish
National Government at \ngora ha^
lodged a protest with the Allies against
the issuance of the Greek forced loan,
the scope of which Is declared to have
been extended into Asia Minor and
Thrace The Greek troops, according to
advices received here, are continuing
rbelr advance against the Turks along
I the Mennder River, practically without
resistance, and are understood to have
oc 'ipled the triangular region south of
-mM na which formerly was occupied by
Italian troops Their objective Is un
derstood to be Bodrum. ninety-six mlle?
I southeast of Smyrna.
Opened Between Koenigaberg
! and Moscow, Berlin Hears.
! Bkri.im, April 28.?Airplane service
i between Koenlgsberg and Moscow was
< opened to-day, the Berliner Togrbiatt
j announced.
i Germany's privilege of constructing
i eotnni' rclal airplanes, hitherto forbidden
by the Allie.". will bo restored after
May 6.
* itm^ hi m r
M *nair>, April ill.?Ota, Artiana* hn."
issued et> order forbidding the use of
ttjhsphcmy by Spanish soldiers In
I Morocco. The order carries haavjr pen
I allied for lis violation.
Action on Proposals of Al
lies Expected by Sub
Commission To-day.
Differences on War Debt
and Seized Property Be
lieved Overcome.
Crisis Over Reparations Next
Problem?French Leader
Again Called to Paris.
By john M'H. STTTART.
Rperial Cable to The New Yobk Heiai.b.
Copuright, I9!t, Jij/ Tub New Yobk
Oesoa, April 2R.?Prime Minister
Lloyd George and Louis Barthou,
head of the French delegation, ar#
prepared to take another step to
gether toward a Russian agreement
to-morrow. Notwithstanding the ap
parently impossibly divergent British
and French views, as previously out
lined here, it was officially announced
to-night that It now is a task of
drafting only to make the British and
French versions of the Allies' final
statement of termB to Russia identic.
The sub-commission in charge of this
work Is to meet at 11 o'clock to-mor
row morning and M. Barthou's de
parture for Paris to confer with Pre
mier Poincare has been deferred to
allow him to attend.
This propitious result was attained
only after a long and toilsome meet
ing of the sub-commission to-day, en
livened by a sharp exchange between
Mr. Lloyd George and M. Barthou. It
Is generally believed now that M. Bar
thou will postpone his trip to Pari*
at least a few days. His plan had
been to leave to-morrow In response
to M. Polncare's somewhat sharplv
reiterated order to come to report on
what Is taking place here.
Differ on Rnaata'a Debt.
An outlined to-night the principal
points of division between the British
and French propositions concern Rus
sia's war debt and the restoration of
property seized from foreign owners
and nationalized by the SovietB. The
British would reduce the total of the
war debt that the present Govern
ment at Moscow would assume and
not insist upon flat return of prop
erty, suggesting long leases instead
The French so far have insisted upon
full payment and restoration.
The crisis over reparations?the
I second, or German, of the three great
| subjects now before the conference?
! thus Is only postponed. It is reported
; here that M. Poincare is more deter
mined than ever to have nothing to
do with anything called by the name
of Genoa, now that reparations has
come up. even though It be kept Bep
arate from the economic conference.
It was reported to-day that direct
i orders from the Paris Cabinet had
! compelled the French delegation to
j draw up a much more stringent de
! mand upon the Russians than here
tofore had been contemplated. But
I The New Yobk Hlkald correspond
I ent's information still holds good?
that had the delegates been allowed
to have their own way here they be
lleve thoy would have found some es
cape from the Russian difficulty
Nevertheless, when the sub-commis
I sion met the exchanges between Mr
Lloyd Georgp and M. Barthou becam<>
sharper than any these two had yet
| indulged in.
Lcadcra ( linh ?l Mrrtlni
"There's a lot of froth about that,"
Mr. Lloyd George Is reported to hav?
*ald when the French draft was read
M. Barthou responded In some heat.
| **I do not see anything like substan
tlal b?>r to nourish the Rolshevlkl in
I the British plan," and thereupon In
I (dated that the entire long French
I preamble be read and discussed. ths
article Involving, hs It does, the defi
nite French dogma as respects private
| property, recognition and loans.
I It was, perhaps, a. result of this
j maneuver that Mr. Uoyd Qeorg.
, caused Sir Edward Griggs to stau
after the meeting
"The Prime Minister Is moat anx
ious that the final draft may not even
i seem In any way to represent a re
' traction of the principles laid down in
the Allies' note to the Russians on the
j 16th. He wants the world to re?il*?
! that the allied statement* are clea:
and continuous and state the ease as
a whole, not neglecting any prlnclplc
of th?f Cannes resolutions at th? ex
! penee of the other*' emphasis."
The lengthy discussion of the Anglo
French draft has hud the effect o*
eliminating th? discussion of the s^pi ?
rate drafts prefwd on behalf of th
I neutrals. on N-hnlt' of th" T-.lt tlo V!:
tonte and on behalf of Belgium. Th
Italians associate ttiemselve* wt?h ti
i English, but th" other drafts are re
i ported more lilts th? French thus

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