davidaulloa/AmericanStories huggingface dataset:
Evening star., 1933-05-28
GOLD ACTION HELD
PERIL TO CONTRACTS
Economist Says SteagaII
Clause Makes World
Pact imperative.
By the Associated Pres.


STOCKHOLM Sweden. May 81
Prof. Gustav CasSel. international econ
omist and member Of the Swedish
Monetary Committee. said today the
Steagall resolution in the United States
definitely attacks and endangers the
Sanctity of all contracts.
The resolution. providing for aboli-
ton Of the gold payment clause in all
obligations, intensifies. the desirability
Of clear definition of American mon
etary policy. Prof. Cassel declared.
The proposal may simplify payment
of war debts he said. but the possible
effect on the security Of private prop
erty in the world in general must not
be overlooked.
An international agreement on this
point must be Forthcoming Immediately.
President Roosevelt now he's sufficient
power and a supporting public opinion
to define a monetary policy without
difficulty, and it is important that he
do SO to facilitate international ac-
cord"
SWedens new monetary policy, COM
| mittee report on which is expected
over the week end, will seek some in
crease in prices, it is generally believed,
| and VIII anticipate a rise in the world
| price level before long.
Inc Legislature row is considering a
| proposal to give the Riksbank the right
TO Issue currency to an amount double
| the gold supply, plus $50, 600 900 kronor
| The present limit is double the gold
supply, plus 100000 kronor.
1ne press also prints rumors of a
| further reduction in the Swedish dis
| count rate
Evening star., 1933-05-28
Woodin's Gold Statement
Secretary Of Treasury Says That Resolution Makes
Clear That All Obligations, Past, Present and
Future, Will Be on the Same Footing.

used, doubt has arisen whether OBJ
legation expressed to be payable In
particular kind of money. such as
gold coin, may be satisfied by payment
in other forms of legal tender.
While the Supreme Cour: OF New
York is reported to have held in a
recent case that an obligation calling
for payment in gold coin could be sat-
isfied by payment in other lawful forms
Of money. confusion may be created if
the existing legislation is differently
construed in other jurisdictions.
One OF the purposes Of the resolution
is to remove any doubt and to avoid
confusion, SO that debtors and creditors
may have a clear definition Of their
legal positions
Another purpose of the resolution is
to make clear that future obligations,
public and private, shall not contain the
new clause. The Thomas amendment
did not contain specific provision to this
effect. Such a provision Is contained
in the resolution.
The resolution makes 1t clear that
all obligations, past and future, will be
upon the same footing"
Evening star., 1933-05-28
AKRON PILOTS ASSIGNED
SAME JOBS ON MACON
Six Aviators of Ill-Fated Dirigible
to Work From New Airship,
It Is Announced.

The half-dozen naval pilots who flew
small planes to and from the dirigible
Akron. but who were not aboard when
the ship crashed, yesterday were as
signed to the same Jobs on the new air.
ship Macon, now undergoing trial
flights.
The flyers now are at the Naval Air
Station. Lakehurst, N. j., and the Navy
Department said they would join the
Macon after she has completed her
trials
Lieut.. F. M Trapnell. one of the six,
had orders to fly to the Akron when
she took of on her last fight April g.
While he was preparing to take off
from Lakehurst. orders from the Akron
Cancelled his fight. He has been on
duty at the Naval Air Station at Ana
costa and is we'll known here. Twice
he has qualified as a member of the
Caterpillar Club
Another former Washingtonian, Lieut..
H. L. Young, will also go to the Macon
as one of the six pilots. His address
here is 1916 Seventeenth street.
In addition to Lieuts. Trapnell and
Young. the pilots for the Macon are
Lieut.. D. w. Harrigan, Lieut.. H. B. Mil
Ter, Lieut.. r. w. Larson and Lieut.. F.
NJ Kiyette.
Evening star., 1933-05-28

The formal statement issued yester-
day by Secretary of the Treasury
Woodin concerning legislation can
ceiling the gold clause in contracts,
follows:
"A joint resolution was introduced
today in both houses of Congress de-
signed to clarity the effect of recent
legislation upon the status Of the gold
clause in public and private obligations.
This resolution has the support of the
administration.
Since March 6. when the President
declared a bank holiday. transactions
involving payments in gold have been
brought under control in order to pro-
tect and maintain the supply which
constitutes a reserve for the Nations
currency. Gold is not now paid, nor
is 1t available for payment. upon pri-
vate or public debts.
Recently. the Thomas amendment
to the agricultural relief act has made
all coins and currencies of the United
States legal tender for the payment
of every debt, public and private
Due, however, to the language
Evening star., 1933-05-28
P|NCHOT DEMANDS
Z JUSTICES QUIT
AssaiIs Kephart and Schaf-
fer. Who Bought J. ?.
Morgan Stocks.
BY the Associated Press.

BY the Associated Press.
HARRISBURG, Pa, May 27.-Gov.
Pinchot, who has kept public utilities
and their regulation in the political
forefront for 10 years, today demanded
the resignation of two State Supreme
Court justices who bought stocks from
]. P. Morgan interests at prices below
the market.
Urging Justices John w. Kephart
and William l. Schaffer to step down
from the bench, he asserted. IF I had
the power, I would remove them at
once"
The justices, who were elected for 81
year terms, replied that they have no
intention of resigning. They denied the
Governors charges that they had &C
cepted ''favors from utility bankers"
and utterly disqualified themselves" for
further service in the States highest
court.
Justice Schaffer. who said he bought
Allegheny Corporation stock for invest
ment and sold it at heavy loss" as
serted his right to buy securities as any
other citizen would buy them.
Justice Kephart declared he holds
the stock for which he paid $4,000 and
now values it at $500.
The Governors request for the resig-
nations came closely in the wake of a
similar request from Warren Van Dyke,
Pennsylvania Roosevelt leader and
chairman Of the Democratic State Com
mittee. Van Dyke went further, in
sisting the disclosures by the United
States Senate Banking Committee were
sufficient to warrant Impeachment pro-
ceedings
Pinchot declined to comment, on Van
Dykes suggestion that a special session
Of the Legislature be called TO consider
Impeachment
Evening star., 1933-05-28
Decision on Morgan
List Unanim mOus,
Say Committeeman

Three members of the Senate
Banking Committee yesterday de-
clared that the committee agreed
unanimously to place in the pub
lie record of the committee the
list of favored clients of j. P.
Morgan g. Co, despite reports
Thursday that the committee
divided 6 to 5 on a proposal by
Senator Glass not to make them
public.
Senator Couzens of Michigan,
Senator Adams of Colorado and
Senator Glass of Virginia all
denied that there had been such
a division onsthis question. 1t
was their recollection that the
question of placing these names
in the record did not bring an
actual division in the committee
at all Included in the list of
favored clients were many men
of wide prominence, including
the late President Coolidge. Nor
man H. Davis, John j. Raskob,
Newton D. Baker, Senator Nc
Adoo Of California and others.
Evening star., 1933-05-28
BRO0KHART PUSHES
MARKETING OF U. S.
PRODUCE IN RUSSIA
Continued From First Page }

Continued From First Page)
a surplus of wheat. but not recently
and we do not need to fear Russia as
competitors in that line of production
for some time. They are very short OF
live stock products and could use five
times our surplus If We can make the
proper arrangements.
There are some very promising ar
rangements now nearing head. Rus
sla produces many of the things we
import. They mine considerable gold
We could take wood pulp, manganese,
ore and ether things in exchange for
our farm products. In case we estab-
lsh Russia as an outlet. it will not be
necessary to use proce ssing taxes to
raise cur farm prices"
Just as the appointment of the Iowan
was made known today. reports were
made public showing that in April ex-
ports of farm products dropped to IL
per cent of the l9O9-14 average.
Wheat in April reached a record low
point for recent decades. While ex-
ports during April, 1882, were 81 per
cent over the 1909-1914 pre-war level.
in April of this year wheat exports
dropped 80 per cent below pre-war.
Only fruit and tobacco exports were
listed out of A leading products as
above pre-war volume for the month.
Fruit shipments abroad were reported
as 81 per cent above the pre-war level,
while tobacco was 18. Exports of wheat
and -four totaled 1854, 900 bushels. This
brought the total exports for the 10
month period ending in April to 81 ,982.-
600, compared with 1880 900 during
the same period the year before.
In discussing the possibilities of his
new job last night, Brookhart had little
to say about exports to other countries
than Russia. He said arrangements for
these nations would have to be conduct
ed in large part through the State De-
partment
Since no diplomatic machinery exists
for transactions between the United
States and Soviet Russia, however, he
said he himself could handle these ar
rangements. He pointed out the ex-
istence of the Amtorg Trading Co. in
this country as an example of how trade
arrangements might be made.
Although reiterating that ALREADY
very important moves have been made" :"
he declined to say Just what they had
been, asserting that it would not be
proper for him to disclose details until
the moves had been finally completed.
Evening star., 1933-05-28
Status of Legislation
Adjournment of Congress Set for June 10, With
Numerous Major Bills already Enacted
Into Law.

measure, passed b. House, due for early
Senate consideration.
Railroad recrg passed by
Senate yesterday, with House consider
alton later
Cancellation of gold clause. reported
by committees on both sides today;
House action due tomorrow
Home mortgage reflnancing measure.
Passed by House; Senate action due.
Federal control of oil industry bill
In committees.
New farm credit measure approved
by House Committee
Other pending legislation:
Half billion independent Offices bill,
carrying new economy powers for
President. Passed by House; due for
Senate action.
st. Lawrence power ALLEGATION. Passed
by House; awaiting Senate action,
which may not come this session.
Arms embargo authority. Passed by
House and approved yesterday by SEN
ate Foreign Relations Committee with
some changes. Senate action due.
T'hirty-hour work week bill Passed
by Senate. rewritten by House; Shelved
for Roosevelt industrial program.
Evening star., 1933-05-28
RECRUITING PASSES
HALFWAY MARK
Forestry Army Enrolment Ex.
pected to Reach 150,-
900 Total.
BY the Associated Press.

By the Associated Press.
President Roosevelt's program for
putting 274,OO0 jobless men to work in
forests yesterday passed the halfway
mark.
Robert Fechner, director of the emer-
gency conservation work, reported TO
the White House that one half that
number were in either forest work or
conditioning camps He said Satur-
days midnight enrolment would total
100000
With men reaching the camps at
the rate above 5000 a day and with
sufficient camps selected to care for the
men, the success Of the move to place
274000 men in work camps by July
is now assured" Fechner said.
Reports reaching the War Depart
ment and my office paint a graphic
picture Of what Regular Army officers
refer to as the greatest peace-time
mobilization of men in the Nations
history
TO carry out the tremendous task
assigned it. the War Department,
through its Regular Army organizations
in each of the nine corps areas, is
working at top speed to complete the
construction of the l $50 forest camps
work this Summer and Fall on the
Nations vast timbered areas aggregat
ing more than 170,000,000 acres.
Commanding officers of the corps
areas have been instructed by Gen.
Douglas Macarthur. chief of staff. to
move men into forest camps at rate
exceeding 5000 per day.
AT the present time virtually all
Army posts and stations set aside for
conditioning men are filled to capacity.
To make room for the l25, 900 men yet
to be enrolled, the War Department
has kept steady stream of men moy-
ing toward the forest work camps.
In some cases it has been necessary
to send men across the continent from
Eastern States with few forest work
projects to the heavily forested areas OF
the Pacific Coast. Wherever possible,
however, men are being sent to work
projects within their own States"
Evening star., 1933-05-28

continued From First Page.)
persons of high position in public life
and out. They we're sold stock in the
Allegheny Corporation and Standard
Brands, Inc, at prices below tho market
quotations for those stocks.
In June. 1927, Morgan e. Co. ac-
quired 100000 shares of Johns -Manville
Corporation common at Alp. 1t dis
posed of 343,750 shares to a selected
list at the purchase price of 47l2. and
56,250 to another selected list at 57i2
Many noted persons are understood
to have been on the second selected
list and to have responded readily to
the price. which realized a profit of
1852 900 for Morgan IL Co.
Another special list of favored Gus
toners obtained 315,070 units of
United Corporation, the Morgan holding
company. at 10. Each unit included
a share of preference stock and a
share of common.
The third list was sold common stock
in Niagara Hudson Power Corporation
This company sold 1000. 900 shares of
the stock August l9 1929. each carry
ing one class A and one five-year class
c warrant. at S25 a unit
Shows Big Syndicate.
Morgan and Bonbright & Co. pur-
chased 100000 units, of which the
House of Morgan sold 56,50O to a Sc
lected list, leaving a balance of 143 500
to be divided between the two COM
panies.
The record showed the bankers pool
was one of the biggest syndicate oper-
ations participated in by the Morgan
House during the five-year period.
First Securities Co, Chase Securities
Corporation, Guarantee Co. of New
York National City Co, Bankers Co.
and Daniel. Murry S. r. and Simon
Guggenheim.
Each participant had a 4-25ths In
terest except the Guggenheims. who
had l-25th, the record disclosed, and
the pool engaged in operations in some
Of the better-known stocks, with vary
ing results. Altogether, l,1466 600 shares
in 81 different stocks were traded.
Evening star., 1933-05-28
By the Associated Press.

A cruise down the PotoTac River
last night by President Rooseve'' and
his Secretary of the Treasury. william
H. Woodin, stirred speculation and va
ried interpretations about the future
Of Woodin in the administration.
The concensuS by lntimate9 OF the
administration was that the Presidents
invitation to Woodin to accompany him
was a gesture of confidence and re-
neWed friendship.
1t has not been expected here that
Woodin would serve the administration
beyond the period of the emergency into
which he was called at the last minute
by Mr Roosevelt to head the all-im-
portant Treasury post.
The publication last week OF the fact
that Woodin before taking office had
been on the lists of the J. P Morgan g.
Co. for the receipt Of new stock issues
at bargain prices has caused some DEM
ocrats in high quarters to discuss Sc
riously the early retirement Of Woodin.
But there Is decided difference of
opinion whether this happening will
hasten or actually defer the resignation
Of the Treasury Secretary.
Woodin, smiling and genial rs usual,
has been at the White House even more
frequently Than ever in the last few
days since the Morgan inquiry.
There is an intimation from close
friends that he is going to have some
Evening star., 1933-05-28

BY the Associated Press.
With June 10 set as the date for
adjournment. here is the status of the
major legislation of the special session
of Congress
Laws enacted:
Securities regulation signed yester-
day by President Roosevelt.
Emergency bank and gold control.
Legalization of beer.
Economy and veterans cuts.
Reforestation Corps.
Muscle Shoals and Tennessee Valley
development.
Half billion for direct relief.
Farm relief-mortgage refinancing
and imitation.
Ready for final disposal:
Glass-Steagall banking reform bill,
in conference.
Extension of gasoline tax bill, with
postage reduction and transfer of elec-
trio tax off householder, in conference.
Insurance company Reconstruction
Finance Corporation aid plan, also in
conference.
To be passed:
Public works-industry control-tax
Evening star., 1933-05-28

Continued From First Page.)
currency the result will be favorable
Tor Germany, which can repay her
American debts in cheaper dollars.
Rome-While the government studied
the American gold measure, bankers
called the action a welcome gesture.
put said that. if italy was unable to
pay, reduction of approximately IS
per cent in her debt was unimportant.
Brussels-In the Brussels money mar
ket dollars lost ground, following upon
the Paris reaction, while government Of
f1cialS declined to comment until they
learned the results of the American ac-
ton elsewhere in Europe
Deplored BY Economist.
Madrid-Chiefs of the banks of Spain
said that the action of the United States
would have little effect in Spain, where
few American securities are held; they
do not foresee any great effect upon
foreign exchange.
Geneva-The news from Washington
was interpreted here as signifying the
desire Of the United States to increase
her foreign trade and to improve do
mestic prices of raw materials.
Stockholm-The sanctity of all con-
tracts is endangered by the Steagall
resolution abolishing gold payments on
all obligations. Prof Gustav Cassel in
ternational economist and member of
the Swedish Monetary Committee, as
serted.
Evening star., 1933-05-28
PecOra Revealed
As Third Choice
For Morgan Quiz
By the Associated Press.

By the Associated Press.
Ferdinand Pecora, the Italian
born counsel for the Senate
Banking Committee in its sensa-
tional j. P. Morgan e. Co. in
vestigation, was the third choice
of the committee for that i'm
portant post.
This was disclosed last night
by Chairman Fletcher of the
committee, who said the position
had been offered to Samuel Un-
termeyer Of New York and Balm
bridge Colby, Secretary of State
under President Wilson.
Fletcher said Untermeyer was
willing" but was about to leave
on vacation. Colby turned
down the request, Fletcher added.
He said that both Untermeyer
and Colby. however, recommend
ed Pecora.
Il can't see that it matters"
he concluded, "Pecora is our
attorney and he's going to stay"
Evening star., 1933-05-28
BOARD YACHT AT QUANTICO.
Presidents Party Motors 10 Marine
Base to Start Cruise.

ANY ANotOiS W tAaA biS
Base to Start Cruise.
QUANTICO, Va, May 27 lP)-Pres-
ident Roosevelt, accompanied by Sec
retary of the Treasury Woodin, boarded
yacht late this afternoon for a week
end cruise down the Potomac.
The President and his party motored
40 miles through alternating sunshine
and thunderstCrms from the Capital to
this Marine station, where the Presi-
dental yacht Sequoia was tied up. I.
In the party was Mr.. and Mrs.
Woodin, Admiral and Mrs. Cary T.
Grayson and Miss Margaret LELAND.
AS the President went up the gang
plank Marine Barracks officers greeted
him. Laying TO- out in midstre1m. were
two Coast Guard cutters. thsir crews
drawn up at tie rail for inspection as
the Sequoia cruised slowly b..
Mr.. Roosevelt plans to return to
Washington tomorrow afternoon.
Evening star., 1933-05-28
PRESIDENTS CRUISE WITH WOODIN
REGARDED AS MARK OF CONFIDENCE
Intimates of Administration See Gesture of Renewed
Friendship Despite Criticism.

thing to say once the Morgan investi-
cation has been concluded.
Only recently, before the Senate in
quiry began, he emphatically denied
that he had any intention of resigning
That statement apparently still stands
and m. Roosevelt is consulting with
him on all important policies relating
to the Treasury.
Evening star., 1933-05-28
WASHINGTONIAN GETS
HOLD-UP SENTENCE
Receives Three to Six Years in
Attempt to Rob Bank in
Pennsylvania.
BY the Associated Press.

BY the Associated Press.
CHAMBERSBURG. Pa, May 81
Alden P. Etter, A, Washington, D. c.,
who failed in an attempt to hold up the
Peoples National Bank at Lemasters,
near here, last Thursday, was sentenced
today to serve from three to six years in
the Eastern Penitentiary
He pleaded guilty to charges of fe-
lonious burglary and carrying firearms
without a license. Sentence was suS-
pended on the gun count but imposed
on the burglary charge
Etter formerly lived in the 200 block
of G street.
Evening star., 1933-05-28
$4,000 SUIT IS FILED
Claim Based on Sale of Ruben S
Portrait of Old Parr.''

NEW YORK. May 27 lP-A $4,000
suit over the sale of Ruben's painting,
Portrait of Old Parr," was Instituted
today in supreme court.
Oscar Henschel Of Germany, AS owner
of the painting, claims that sum is due
him from Kurt Walter Bachstitz,
Vienna and New York art dealer. and
his firms, from a sale to university
trustees of the William Rockhill Nelson
trust of Kansas City. Mo.
Fritz Won Mach of this city. assignee
of the Henschel claim. said that Hen
schel turned the picture over to the de-
PENDANTS with instructions to sell it for
not less than 10000 Dutch forms. or
$4,000, but that Bachstitz represented
no sale was made, Won Mach said.
Evening star., 1933-05-28

House tax provisions He seems almost
certain to be defeated in this move,
however judging by the attitude OF
Democratic Senators. Senator Walsh
of Massachusetts. an advocate Of the
manufacturers sales tax in the past,
will support the proposal again, as will
Senator Copeland of New York. But
even Senator Walsh does not have hope
that the sales tax will be adopted, he
said.
Evening star., 1933-05-28

ington General Assembly of the Fourth
Degree knights of Columbus.
Music will be provided by the Boys
Band of Holy Comforter Church. Rep
resentative Everett NJ Dirksen of Illi-
nois will make the principal address
Other talks will be made by William
G. Avery, DR.. Paul A. McNally and
Department Comdr. Michael Casey
George A. Campana will preside.
Evening star., 1933-05-28

In two days recently people Of
Czechoslovakia subscribed SIS 100000
to an employment loan"
Evening star., 1933-05-28
BRITISH EXPECTING
CHANCE TO PAY u. S.
IN CHEAP DOLLARS

Continued From First Page)
Evening star., 1933-05-28
GIGANTIC PROFITS !
Barred IN RECORDS
OF MORGAN'S BANK

Continued From First Page.)
Evening star., 1933-05-28

VIII ncSuf0t WUFh
The White House has locked askance
upon insurance of bank deposits. But
the demand for such insurance has
rolled up overwhelming maJorities In
both House and Senate.
The Senate Finance Committee.
which now has jurisdiction over the
Administrations public works and
utilities bill. is to resume hearings on
the measure tomorrow, but. 1t is eX-
pected to get down to the work OF pass
ing upon the bill promptly and to bring
the measure into the Senate for early
consideration.
There has been wide criticism of the
tax provision in this bill as 1t was
passed by the House, the attack center
Ing on the proposal TO increase the
normal income tax rates from to g
Ses cent on the first $4,000 Of taxable
income and from to 10 per cent or
.he second $4,000, with a surtax start
ing at $4,000.
These increases would add greatly to
the tsy hsrden borne by people OF MOD
e<ate and small incomes. Some of the
Democratic members of the Finance
Committee suggested that 1t might be
possible to increase the surtaxes IN the
higher brackets and to reduce the House
normal income tax rates. However,
they pointed out that the bill must pro-
vide for $220, 900 900 additional revenue
to finance the public works program,
and If this could not be found in the
upper brackets, they might. have 10
adopt the House proposal on incomes,
Senator Reed, Republican, of Penn
sSlyania is planning fight to substi-
tllte p manufacturers sales taxsfos the