The Brooklyn Daily Eagle from Brooklyn, New York • Page 1

WALL STREET cwsiyc, PRICES ic ir it it BROOKLYN" DAILY EAGL a -J I -V -sso 91st YEAR No. 20. 1 NEW YORK CITY, WEDNESDAY, JANUARY 21, 1931. 36 PAGES THREE CENTS THE WEATHER FAIR TONIOHT AND TOMORROW: COLDER TONIGHT; WARMER FRIDAY Temperature. 11 M.

(Eagle Station) 81 Year ago (cloud;) 82 Mean average 10 yeari, umi date 83 Complete Report oa Pace 11. R7 i SUED TYDINGS ASKS SENATE TO HAVE WICKERSHAM EXPLAIN DRY REPORT MILLIONS Lm ED BANKOFU. ll OARD, STEUER bisCLOSES Illegally Jailed Girls Appear At New Hearing Corrigan to Consider Cases of '77 in Jefferson Market Court A large part of the 77 girls illegally committed to Bedford Reformatory as wayward minors were brought in two buses to Jefferson Market Court, Manhattan, shortly before 2 p.m. today for Individual hearings on the charges to which they had previously pleaded guilty. Chief City Magistrate Joseph E.

Corrigan was to preside at the hearings, without AUTHOR BURNED Wa In 'Contradictions Cleared Up Chairman Denies 'Outside Inter-ference'CausedCliangc in Findings While House Silent on Issue fUT jj $415,060,000 Public Building Fund Approved 100 Million Increase Asked by. President Is Favored in House Washington, Jan. 21 OP) The Administration's $100,000,000 proposal to increase its public buildings program outside of the District of Columbia to $415,000,000 was approved today by the House Buildings Committee. The committee also approved the Kelly bill to authorize $45,000,000 for the purchase or construction of buildings for Post Office stations, branches and garages in connection with existing Federal buildings. The $100,000,000 bill, sponsored by Chairman Elliott, is to assist the Treasury and Post Office Departments in carrying out the public buildings program within five years instead of ten as originally planned.

It will permit the construction of scores of buildings in various cities having annual postal revenues in excess of $20,000. Adopts Veteran Bill The Senate today adopted a resolution by Senator Norris, Republican, Nebraska, calling for codification of all veterans' laws by Veterans Administrator Hines In order that a "clear and complete statement of all rights and priv Gen. W. W. Atterbury Stockholders Sue P.

R. R. for $111,500,000 Railroad's Purchase of Wabash and Lehigh Alleged to Be Illegal A stockholders' suit against the officers and directors of the Pennsylvania Railroad Company and its affiliate, the Pennsylvania Company, for "more than $111,500,000" was filed today in Brooklyn Federal Court. The plaintiff is Mary Van L. Guiterman of Hewlett Bay Park, L.

as holder of "100 shares of the capital stock of the Pennsylvania Railroad Company, on behalf of herself and all other stockholders similarly situated." The action is the aftermath of the Interstate Commerce Commission's order of Dec. 2, directing the Pennsylvania to divest itself of the alleged stock control of the Wabash Railway Company and the Lehigh Valley Railroad Company it is held to have acquired in violation of the Clayton act's prohibition against elimination of competition by stock purchases. Seeks to Kill Deal The complaint seeks to havi? the Court decree the stock purchases "unlawful, as in violation of the Sherman law." It was filed originally in Nassau County Supreme Court early this month. Transfer to Brooklyn Federal Court was granted by Supreme Court Justice Byrne Jan. 19 on motion of the railroad, unopposed by the plaintiff.

The complaint sets forth that the stock purchases complained of were made between Feb. 1, 1927, and June 20, 1928, for "more than and that as a result of the purchases the Pennsylvania had "sustained a loss of not less than $2,500,000 per annum arising through the excess carrying cost over the dividends received on sal dstocks." Besides verification of plaintiff's figures the complaint asks interest on the moneys involved for the elapsed time, the whole to be paid by the officers and directors into the treasury of the Pennsylvania Railroad Company or the Pennsylvania Company. Gist of Complaint The complaint states that the Pennsylvania purchased 48 percent of the capital stock of the Wabash and 30 percent of the Lehigh Valley. As the Wabash, in turn, owns 19 percent of the Lehigh Valley, it sets forth, the Pennsylvania thus acquired virtual ownership of 49 percent of the Lehigh Valley stock. Its holdings on the basis of stock voted during the past five years, the complaint concludes, "the Pennsylvania has in effect the controlling interest in the Wabash and Lehigh Valley." The Individuals named defendants are W.

W. Atterbury, president of the Pennsylvania, and Charles Day, Percival Roberts Charles E. Ingersoll, Elisha Lee, Edgar C. Felton, Richard B. Mellon, Howard Heinz, Effingham -B.

Morris, Levi L. Rue, Jay Cooke and John T. Dorrance and Arthur W. Thompson, the last two lately deceased. CARTOONIST DIES Charles W.

Kahles Charles Kahles, Noted Artist, Is Dead at 53 Creator of Hairbreadth Harry Series Succumbs at Great Neck Home Charles W. Kahles, artist, car toonist and creator of the widely popular comic cartoon, "Hair' breadth Harry," died at Ms home in Great Neck, L. today, at the age of 53. He had been confined to his bed since Jan. 2, following an attack of angina pectoris.

Although he was in great pain during most of that nine, and was unable to do his work, his cartoon made its regular appearance daily and Sunday in the Eagle and other newspapers without interruption, and will continue for some time. He had been in the custom of preparing his cartoons several months ahead of schedule. Mr. Kahles was born in Lengfurt, Germany, on Jan. 12, 1878, and came to this country as a boy of seven.

He lived in Brooklyn until 13 years ago, when he took up his residence in Great Neck. He is survived by Mrs. Helen Harrison Kahles, the widow; whom he married in 1917; a daughter, Jessie; a sister, Miss Margaret Kahles, and a brother, Frederick Kahles. Friend of Macauley Mr. Kahles was a life-long friend of Charles R.

Macauley, editorial cartoonist of the Eagle, who only yesterday telephoned the Great Neck home and invited Kahles to sit Please Turn to Page 3. Rum Patrol Holds British Schooner Boston, Jan. 21 (P) The British auxiliary schooner Firelight was taken in custody off Nahant today by the Coast Guard patrol boat Harriet Lane, the commander of the latter radioed Coast Guard headquarters here. The message failed' to state whether the schooner had liquor aboard but did say she was intercepted within the 12-mile limit. The patrol boat's commander said he was bringing the schooner to Boston for investigation.

Princes Enjoy Trip; Not to Land in Cuba Havana, Jan. 21 OP) The Prince of Wales and Prince George, who are making an tour of Spanish America in behalf of British trade, will not leave their ship when it reaches Havana Jan. 31. Dispatches from their ship say the princes are enjoying their trip and participating in the ship life with other passengers. Pavlova's Illness Grows More Serious The Hague, Jan.

21 UP) The condition of Mme. Anna Pavlova, interpretative and ballet dancer, has proved to be more serious than at first supposed. It is now stated she is suffering from pleurisy as well as the influenza which necessitated suspension of her tour of Holland, illilKillli Capital Believes Views on Repeal Will Make Hoover Dry Candidate in 1932 Revision to Be Placed in Plat form of Democrats Eaglft Bureau. Colorado Building. By HENRY SUYDAM Washington.

Jan. 21 The most Immediate practical im portance of the Wickersham report is its effect on the 1932 campaign. Out of the welter of conflicting opinions which engulfed the Capitol, there emerged today one Or two simple propositions in politics. The first is that President Hoover becomes the prohibition candidate for President in 1932, and that East era Republican wets will have no choice but to indorse him or to de sert to the Democrats. The second proposition is that the Democrats will nominate a wet to oppose Mr.

Hoover and that the Democratic platform will declare for revision rather than repeal of the 18th Amendment. In his message transmitting the Wickersham report, the President made it clear that he is opposed to revision as well as to repeal of the 18th Amendment. His first visitor this morning was Chairman Simeon u. Fess of the Republican National Committee, himself an ardent sup porter ov prohibition. Wets Lack Candidate Even if the Eastern Republican wets wished to go to the extreme of opposing Mr.

Hoover's renomlna- tlon there is no wet candidate avail able. Dwight Morrow removed himself from the picture when he declared for Mr. Hoover in 1932 during his own campaign for the Senate, Moreover, the Morrow plan for repeal of the Eighteenth Amendment and the remission of prohibition to the individual States is repudiated in the Wickersham report, which even goes so far in Please Turn to page 3. Howlings Loudest Before Turn Klein Chicago, Jan. 21 VD The opinion that business revivals invariably start when "the howlings of professional mourners" are loudest was expressed last night by Dr.

Julius Klein, assistant secretary of the United States Department of Commerce, before the National Food Brokers' convention. Bones of Huge Sloth. Found in Ecuador Guayaquil, Ecuador, Jan. 21 (AO- Americans, excavating ruins on the sides of the volcano Chlmborazo, have found well-preserved skeletons of a prehistoric mylodon, mastodon, camel and a horse. The mylodon is one of a genus of large ground sloth, about the size of a rhinoceros.

Mellon Declares Vet Cash Bonus Plan Dangerous Says It Would Serious ly Affect U. S. Finances and Economic Situation Washington, Jan. 21 (yP) Secre tary Mellon today reported to the House Ways and Means Commtt- tee enactment of the Garner bill to pay cash on veterans' compensation certificates would seriously affect national finance and "our general economic situation." William Waddel, 40, City Fireman, Dies William Waddel, 40, of 179-22 145th Springfted, Long Isand, a city fireman, attached to engine company 215, on sick leave for some time because of heart disease, col lapsed, suddenly, today In front of 91 Flatbush Ave. He was dead when Dr.

Crandall arrived from the Jewish Hospital. Idle Sons Rich College Rum Indlanapolis.Jan. 21 CP) A decline of liquor drinking in American col leges in the past five years was reported at conferences of the Council of Church Boards of Education preliminary to the meeting of the American Association of Colleges here tomorrow. The only "prohibition problem" in the colleges, according to Dr. W.

C. Covert of Philadelphia, general secretary of the Board of Christian Education of the Presbyterian Church In the United States of America, is that idle sons from of he life on Collateral Weak, Some Notes Unsecured on Loans of $4,510,217, lie Says InstitutionRe-ported $17,000,000 Assets It Didn't Own Directors of Bank And Loans They Got The following loans to directors of the Bank of United States were revealed today: Julius Blauner $200,000 Indorsements 52,000 Joseph C. Brownston. 100,000 Brownstone's 275,000 Joshua L. Cowen 500,000 Cowen's 230,000 Max H.

115,000 John F. Gilchrist 25,000 Indorsements 112,000 Jack L. Hoffman 129,000 Isidor J. Kresel 251,165 Arthur W. Little 225,121 Henry Loeb 80,500 Herman A.

Metz 120,000 (As indorsements.) I. H. Rosenthal 90,200 Charles H. Silver 276,874 Geo. C.

Van Tuyl Jr 19,207 Morris White 1,336,000 Indorsements 145,000 Special Deputy Attorney General Max D. Steuer today opened his dual investigation of the Bank of United States failure with a series of the most startling revelations since the bank closed its doors on 440,000 depositors 42 days ago. The bombshells were: 1. That the loans to directors, many of them unsecured and many of them secured by collateral far below face value, amounted to $4,510,217. 2.

That of $37,498,390 loans outstanding as of June 23, 1930, the i. Btata Banking Department had placed the following amounts under these categories: Slow $14,065,038. Doubtful $9,321,038. Criticized $14,111,866. 3.

That at the time the bank in a public report last September claimed a surplus of $10,000,000 and undivided profits of 375, Superintendent of Banks Broderick was in possession of an examiners' report that the bank "did not have one cent in surplus or one cent In undivided profits." Director on Stand The testimony was adduced with Julius Blauner, gray-haired, slow-speaking director of the bank and a retired clothing manufacturer, on the witness stand. Steuer cornered Blauner early in the proceedings into testifying that he was a "director who didn't direct." The result was that the revelations came almost entirely from Steuer, who read from the Banking Department's report of its examination from July to September last. Speaking in his low, purring voice, Steuer timed his revelations with dramatic effect and divided his interrogation of the halting witness between his own surprises and inquiries as to the conduct of the bank. times the agile prober was able to bring in the name of Isidor J. Kresel, director and counsel of the bank and the present Nemesis of recalcitrant magistrates, and each time Steuer pounced on Kresel's name as awaiting cat on a mouse.

The prober questioned rlease Turn to Page 2. Stocks Generally At Better Levels Stocks were quite firm during the greater part of today's session, some getting to the best levels in over a week. Profit taking in the last hour, however, reduced the gains of some and, in addition, there were others below last night's close. Aifburn was one of the leaders of the advance, the issue getting up over 4 points at one time. Other motors and motor accessory Issues were quite steady.

U. S. Steel after rising; a point lost its gains. A number of rail shares were up and some utilities advanced. Oils and coppers were little changed.

News was constructive in spots but the major portion of the buying which lifted prices was largely the result of the better feeling created by yesterday's sharp gains. Some stocks were lower under bear pressure and liquidation. Stock Table on Page 33 THE EAGLE INDEX Page Aviation 11 Books IS Children 25 Classified Adl 30-32 Death Notlcea 11 Dr. Brady, Patrl, Featurea 16 Editorial 20 Financial 83-8S Lost and Found, Fertonal Novel, Comlca SO Radio 14 Society 8-23 Rporti 26-28 Theateri, Rian Jamei. SI Woman'! 22 which, the Appellate Division in quiry Into the Magistrates' Courts has revealed, their commitment was illegal.

Testimony against six policemen who are under suspension as a re suit of charges made by Chile Ma- pocha Acuna at the Kresel-Seabury investigation that they framed in nocent women in vice cases will be presented to the New York County Grand Jury next Monday, it was announced today by Assistant Dis trict Attorney Harold W. Hastings, The announcement follows statement issued last Monday by Referee Samuel Seabury in which he sharply criticized District At torney Thomas O. T. Crain for failure to act against the accused policemen. Hastings disclosed that Police Commissioner Mulrooney will be asked to adjourn the police trials of members of the department ac cused by Acuna so that the DlS' trict Attorney's stali may have ao cess to records impounded the department trials.

These police trials also were criticized in the Seabury statement. Claims Corroboration Hastings said he had "full cor' roboration'" in five of the cases and expected to have it in the sixth by Monday. He withheld the names of rlease Turn to Faje 2 Asks Governor To Extend Quiz Of Courts Here Mrs. Clivette Goes Over Heads of Appel late Division With Plea Going over the head of the Ap pellate Division, Mrs. Catherine Parker Clivette, president of the Society for the Prevention of Unjust Convictions, today appealed direct to Governor Roosevelt to extend the lower courts Investigation to Brooklyn and Queens.

The Govern or was reported yesterday as ready to order eucIi extension. In a lengthy letter to the Gov ernor, Mis. Clivette made no specific or new charges against any magistrate. Without mentioning names, she rehearsed charges that have been made within recent months against magistrates as pub' lished in the newspapers. Mrs.

Clivette quoted from The Eagle of Jan. 9, the record of way ward minor cases that had come up in Adams Street Court during the preceding three months. She pointed out to the Governor that records showed that in half of the cases the court accepted pleas of guilty without the formality of a hearing, which Referee Samuel Seabury contends is in violation of the law. She also asserted that "bail bond shysters" who frequent the magis trates' courts should be Invest! gated. SUPPOSED LEVINE KIN DIES Auersperg, Jugoslavia, Jan.

21 OP) Boris Levine, 62, said to be a rela' tive of Charles A. Levine, American aviation enthusiast, died at a sani tarium here today. make the question of liquor icgiajuijuu viiu suie criterion in choice of public officials, from President down, for generations to come; and the possibility of complete shift from absolute prohibition everywhere to legal sale everywhere by action of a mere majority of Congress from year to year, is unthinkable. Their proposal, eliminating as it does, the 'concurrent power' of the states now contained in the 18th Amendment would prevent even states which wanted prohibition from having it if Congress willed otherwise a distinctly backward step which, so far as I know, no one advocates. "The question of repeal or revision should be submitted to conventions in the States forthwith.

Until the major uestlon of the popular will as to the continuance of this great adventure in human betterment is settled, neither observance nor adeuate enforcement is probable." 7oiD Strife-Breed! tip 'If Cot Into the Dry Report Washington, Jan. 21 (P) With a dispute In progress a.f to when and how the "If" got Into the Wickersham Commission's suggestion for a revision of the dry amendment, newspapermen wore shown at Commission headquarters today a draft of this section as it was said to have stood last October. In this preliminary form, the report said the amendment Is revised," etc. This Inter was made to rend "all of the Commissioners agree that If," etc. The section jus.

preceding had two blank spaces in the preliminary draft. Into these blanks were to be written later how many Commissioners favored and how many opposed revision. In the final form the report merely says that "some" oppose it and "others" favor it. Fairlo Hiirrntj, Colorado Uulloing, Washington, Jan. 21 The apparent contradictions in the Wickersham report today produced such a sweeping crop of rumors of outside Interference that Chairman Wickersham this afternoon was forced to issue a denial that President Hoover had intervened at the last moment to change the commissions recommendations.

Mr. Wickersham refused to state. however, whether there had been last-mlnutc changes in the conclti. slons of the Commission. From an outside sourco It was learned that no changes was made subsequent td Jan.

7, the dote which the report bears on its face. The rumors which swept official Washington came to an abrupt head when the Srnatn ator Millard E. Tydlnga of Maryland, introduced a resolution reouestlncr that. Wickersham be called before th judiciary committee of the Senat, to explain "the method by which the aDDarentlv pnnt.rflrllrtnrw xnn. elusions and recommendations wen arrived at.

Resolution Put Over TllC resolution Said the rpnnH Was "C0nflISill2 and cnntrarilntnrv' and that an Investigation should made because Cnnm- called upon to enact legislation pD me Dasis of trie report. The resolution vipnt ntmr until tomorrow under Senate rules, bill the Marylander said he would ass for action tomorrow, or the first day such action would be In order, Commcntine on his rnsnlntlnn said: "It all comes down to the fact mere were no recommendations a all, from the commission, but. il separate reports. "Unfortunately, after the sion has snent two vears nnri ann 000 we are just where we were. ine.

mountain labored and brought forth 11 mice." White House Silent The resolution fnrrhr him that Mr. Wickersham explain wiieuier suggestions were received in framing the final report "from authorities not members of the Com mission." When the White House offlcri opened today a large group of newspaper correspondents were on hand to inquire concerning printed bta ries that the President had intervened at the last moment to changa the form of the Wickersham recommendations. The White House declined to comment. No denial was forthcoming and Please Turn to Page 3 In classifications where results can be definitely traced as in Real Estate Classified Advertisingj the EAGLE leads all other N. Y.

Newspapers. Figures are given in 'First in New an advertisement in today's EAGLE. Monterey, Jan. 21 UP) Gouverneur Morris, author, Is In a hospital here suffering from burns on his right arm. The writer got out of his automobllo last Friday to make a minor repair.

A spark from his cigarette dropped into the gasoline tank, causing It to flare. Morris, believing the burn inconsequential, continued v.ith Mrs. Morris to Sonora, but his arm became worse, Physicians said he would ba out of the hospital soon. U.S. Attacks Clark Rule in Supreme Court Previous Dry Decisions Are Cited Opponents Quote John Marshall Washington, Jan.

21 (IP) The Clark decision holding the 18th Amendment invalid was put to test today in the Supreme Court. Oral argument on the Government's prompt appeal began shortly after noon. Chief Justice Hughes withdrew from the case, announcing he submitted a brief to the court when prohibition was before it In 1920, and thus considered himself disqualified. The decision of Federal Judge William Clark of iJew Jersey was based on a contention that the amendment to be valid should have been ratified by State conventions rather than by State Legislatures. Solicitor General Thacher, launching into the Government's argument, said it seemed clear that Article of the Constitution had conferred ample authority upon Congress for its determination to refer the amendment to State Legislatures.

Cites Court Decisions He added the article was a man date upon Congress and left it free to use its own Judgment in deter mining whether the prohibition amendment should be referred to State Legislatures or conventions. The Solicitor General then re viewed the decisions of the Supreme Court since 1824 to sustain his contention. He insisted Congress was at lib erty to determine in all cases whether a proposed constitutional amendment should be submitted to State Legislatures or State conventions for ratification. The decision the Supreme Court In the na tional prohibition case determined the question raised by Judge Clark's decision, he continued. In that case New Jersey raised the issues presented in the present case, with the result, he said, that the Eighteenth Amendment had been held valid by the Supreme Court.

The court in plain language had supported other constitutional amendments against similar attacks added. Denies Government Power Julius Henry Cohen, beginning the argument for Judge Clark's decision, said that originally there was no power in the Government to prohibit or regulate the sale of liquor except by an amendment conferring this power. The Eighteenth Amend- Please Turn to Page 3 Called Only Menace in U. S. wealthy families, and student-drinking merely reflects the home and habits of the families.

A declaration of the Presbyterian College Union, one of the denominational groups meeting here said: "We resent the attitude of students toward the Eighteenth Amendment and the practice of prohibition. There is among the student groups of our colleges respect for the highest ideals and traditional code of morals and an encouraging spirit of co-operation behalf of morality and good citizenship." ileges" of war veterans may be had. Another resolution adopted was by Senator LaFollette, Republican, Wisconsin to request the President's Employment Commission to furnish the Senate with a copy of the Metropolitan Life Insurance Company's report on unemployment. The proposal by 8enator Dill, Democrat, Washington, calling upon the Postmaster General to furnish the Senate information concerning air mall contracts, also met approval. The Senate, however, eliminated the preamble In which it was stated that "control of Government air mail contracts is rapidly coming under the direction of aviation monopoly." The snail's pace of legislation on its way through Congress brought a night session upon the Senate to day and the threat of one Friday for the House.

Think Missing Girls Off for Hollywood Bound for Hollywood to "make a success out of life," as they term it, three girls of the Bath Beach and Flatbush sections left their homes last Friday and are being hunted all over the country today. The girls are Rose Ferara, 14, a student at the Bay Ridge High School and daughter of Mr. and Mrs. Ralph Ferara of 1715 59th Jessie Grot tola, 17, of the same address, daugh ter of Mr. and Mrs.

Nicholas Grot' tola, and Rose 18, also a Bay Ridge High School student and daughter of Mr. and Mrs. An drew Lombardi of 6107 17th Ave. New Trials Denied In Steel Combine Youngstown, Ohio, Jan. 21 JP Motions for new trials were overruled today Ivy Judge David G.

Jenkins in the suit to restrain the mer ger of Bethlehem Steel Corporation and Youngstown Shest Tube Com pany, in which an injunction re cently was granted against the merger. Count Sala Marries Widow of E. K. Bayer London, Jan. 21 M5) Count An- loine Sala was married today at the Notre Dame de France Church to Mrs.

Laura Stanton Bayer, widow of E. Kayser Bayer, late New York silk king, who died in 1928. She is reputed to be worth $100,000,000. Alma Rubens 111; Condition Critical Los Angeles, Jan. 21 OP) Mrs.

Theresa Rubens, mother of Alma Rubens, screen actress, said Miss Rubens was in a critical condition today from pneumonia. Brooklyn to whose staff Wobber was attached, would give no other explanation of the transfer than the stereotyped "for the good of the service." The same explanation was made at Manhattan headquarters. Among detectives at Brooklyn headquarters, however, there was a generally accepted report that the transfer was directly due to Jealousy on the part of brother officers over the favorable newspaper publicity Wobber received as a result of the capture of maniacs, Fort Says Uncertainty of Dry Report Mirrors Public Mind c.u,&Bmm. Washington, Jan. 21 Franklin W.

Fort, the New Jersey dry leader who opposed Dwight Morrow for the Republican Senatorial nomination, made the following comment on the Wickershum report: 'The report in its lack of certainty of opinion on various phases of pro hibition and the possible alternatives to it simply mirrors the public mind. It balances the proven benefits of added innustrlal efficiency, of better heads and living conditions and of the removal of the dominating Influence of the liquor interests in politics against the equally proven evils of growing disrespect for law, corruption and non-enforcement and finds no satisfactory way to retain the gainst and eliminate the evils. Personally I cannot believe their suggested form of revision namely the conferring of power upon Con gress to regulate or prohibit the trac, is desirable. Such a change Shift Wobber, Maniacs Captor; Jealousy Blamed by Associates Under a department! order which was suppressed from newspapermen, Detective George E. Wobber, of Brooklyn Headquarters, who distinguished himself last December by capturing single-handed four dangerous maniacs who had escaped from Matteawan was transferred a week ago to the safe and loft squad in Manhattan, the Eagle learned today.

Deputy Chief Inspector Vincent Sweeney in charge of detectives in Currie Reviews Ludwig Lewisohn's New Book Page 1 3 O'Neill Sprains Wrist Disobeying "Ghost" Page 11.