davidaulloa/AmericanStories huggingface dataset:
Evening star., 1934-02-10

These whispers come from Demo-
cratic officials and may be discounted
for that reason at the present time.
But if half of them are true, the big
gest story is yet to come. Do not
bank on that. Some Of the inside
stories indicate much Of the evidence
is inconclusive.
For instance, some Army officers say
that contractor staged poker parties
for some of their colleagues. that the
stakes were heavy and that the officers
always won.
Experience Of Captain.
More indicative Of possible grating
methods is the experience Of certain
Army captain.
This captain says he was driving to
work a year or so ago. His automobile
was smashed by larger car occupied
by colored chauffeur. The chauffeur
said the car was owned by a certain
contractor doing business with the
War Department, whose name meant
nothing to the captain because he was
not connected with the contract end
of War Department business.
Later that day the captain was
called on the telephone by War De-
partment superior who turned his end
of the telephone line over to the con-
tractor, owner Of the larger car.
The contractor laughingly asked II
the captains car was badly damaged.
The captain replied that 1t was and
he intended to get damages.
The contractor laughed again
and said, Don't Dorry about that.
Ho,D Mould you like a nep carr"
The captain replied he only wanted
damages. The contractor told him to
do whatever he chose and send the
bill.
The repairs cost less than the cap
tain thought they would, so he de-
cided to pay them himself.
There can be no question about the
accuracy of this story because the
accident was reported both to an in
surance company and the police by
the captain. But it Is only circun-
Stantial evidence.
Undoubtedly, most Of the firms do
ing contract business with the War
Department are reputable. They did
not need to stoop to graft to get the
business.
Also the Army has an enviable
reputation Of its own in such mat
ters
Evening star., 1934-02-10
ARMY MAY REJECT
ALL AI2PLANE BIDS
P. W. A. Fund May Be Expended
After Negotiations With
Companies.
By the Associated Press.

By the Associated Press.
The Army may throw out competi-
tive bids on $7,500,00o worth OF air
planes and award contracts by "ne-
gotiation" for these ships to be bought
by an allotment from public works
funds.
This was intimated before the
House Military Affairs Committee by
an Army officer after members of the
committee had expressed fears that
inferior planes might be bought.
Chairman McSwain, Democrat of
South Carolina. and Representative
James, Republican of Michigan, ques-
toned Harry H. Woodrtng, Assistant
Secretary of War. closely about
changes made in specifications for
airplanes to be bought with the P.
W. A. funds.
Brig Gen. H. Conger Pratt said
that although bids had been called
for on the changed specifications, all
bids could be rejected and the Sec
retary of War could grant contracts
by negotiation with individual COM
panies.
During the questioning, Woodring
said no atempt was made to have
the Army accept planes inferior to
those called for in the original speci-
fications.
James said that when Maj. Gen.
Benjamin D. Foulois heard Of the al
location, he Immediately drew speci-
fications he thought the new ships
should meet. These called for pur-
suit planes capable Of q speed Of $50
miles, Q cruising range Of 500 miles
and . maximum altitude Of 27.800
feet.
When bids finally were called for,
James continued, the specifications
required contractors to bid only on
ships able to make 176 miles an hour,
cruise 1886 miles and reach an alti-
tude of 1900 feet.
Other changes. James asserted, re-
duced the specified speed of attack
planes from 207 to IT'S miles, cruis-
ing range from 800 to 394 miles, and
altitude from 21.75o to 10000 feet.
Evening star., 1934-02-10
Roosevelt Text
Message Asks Law to Curb
Destructive Speculation.

The Presidents message to Con-
gress yesterday, asking regulations OF
operation Of stock exchanges:
In my message to you last March
proposing legislation for Federal su-
pervision of national traffic in invest
ment securities I said:
This is but one step in our broad
purpose of protecting investors and
depositors. 1t should be followed by
legislation relating to the better su-
pervision of the purchase and sale
of all property dealt with on ex-
changes"
This Congress has performed q
useful service in regulating the in
vestment business on the part OF
financial houses and in protecting
the investing public in its acquisi-
ton Of securities.
There remains the fact, however,
vestment, naked speculation has been
made far too alluring and far too
easy for those who could and for
those who could not afford to
gamble.
Such speculation has run the scale
from the individual who has risked
his pay envelope or his meager saw
ings on q margin transaction In
volving stocks with whose true value
he was wholly unfamiliar to the pool
of individuals or corporations with
large resources, often not their own,
which sought by manipulation to
raise on depress market quotations
far out OF line with reason, all OF
this resulting in loss To the average
investor, who is of necessity person.
ally misinformed.
The exchanges In many parts OF
the country which deal In securities
and commodities conduct. of course,
q national business because their
customers live in every part Of the
country. The managers Of these ex-
changes have, it is true, often taken
steps to correct certain obvious
abuses. We must be certain that
abuses are eliminated, and to this
end a broad policy of national regu-
lation is required.
It is my belief that exchanges for
dealing in securities and commodities
are necessary and of definite value
to our commercial and agricultural
life. Nevertheless, it should be our
national policy to restrict, as far as
possible, the use of these exchanges
for purely speculative operations.
I therefore recommend to the Con-
gress the enactment Of legislation
providing for the regulation by the
Federal Government of the opera
tions of exchanges dealing in securi-
ties and commodities for the protec-
ton of investors, for the safeguard
ing of values and. so far as it may
be possible, for the elimination Of un-
necessary, unwise and destructive
speculation.
Evening star., 1934-02-10
AIRMAIL CONTRACTS
ABROGATION FOUGHT
BY OPERATING FIRMS
CONTINUED From First Page. }

that the airmail planes operated by
the Army would carry any passengers
as the Army's ships were not of the
passenger-carrying type.
About 1,700 planes are available, he
said. At the outset probably only
about 900 big observation and cargo
planes will be used, with 100 of the
Army's speediest bombing planes held
in instant readiness to join.
Both Secretary Dern and Macarthur
we're enthusiastic, incidentally, about
the opportunity given to the Army
Both pointed out privately that the
more than / 200 Air Corps officers who
have been limited as to flying time in
many instances by the economy act
would be given added hours in the
air.
They hailed the opportunity also,
for possibly gaining added funds and
increased equipment and attention as
q result Of the big job.
The administration was in receipt
today of various suggestions for its
next step in the arrangement Of con-
tracts after the Army is relieved.
Richard w. Robbins, president Of
Transcontinental g. Western Air, Inc,
telegraphed President Roosevelt sug-
gesting that the line be allowed to
carry the mail according to its con-
tract for one month, while a hearing
was arranged.
If after that hearing" he said,
you decide that there is anything
wrong with our contracts or that they
have been obtained by collusion or
fraud We will waive all claim for pay
ment for that month"
Thomas B. Doe, president Of East
ern Air Transport, Inc, subsidiary
of North American Aviation, asserted
his company received its airmail
contracts under open bidding In the
Coolidge administration and that he
felt he had right to assume
that I will be given chance to an
swer specific charges, if there are any,
before any final cancellation takes
place"
P. G. Johnson, president of United
Airlines, composed of the National
Air Transport, Boeing Air Transport
and Pacific Air Transport, likewise as
serted, I'VE have never been a party to
any collusive arrangement with any
other contractor"
From ST. Paul came a statement
from Northwest Airways, Inc, that it
would be forced to cease operations
If the Presidents order is carried out
Loss of the airmail contracts, an
official said, would mean that ITS per-
sons employed by Northwest would be
put out of employment.
Aircraft stocks broke sharply on the
San Francisco Exchange yesterday
upon word of the Presidents action
Ofhcials watched the Eastern markets
closely today.
Hints came from the administration
that a drafting Of new postal laws
would result from the wholesale can
collation., designed to remedy flaws in
existing statutes. and that speed"
would be asked of Congress.
Walter F. Brown, who was Post
master General when most of the air.
mail contracts were arranged. said
in New York that he did not care to
comment on the administrators ac-
ton.
Evening star., 1934-02-10
What's What
BehindNeWs
In Capital
President Beats 6. O. P.
Newspaper to Scoop"
on Army Contracts.
BY PAUL MALLON.

n KR. ROOSEVELT put over an
N N other fast one on the inside
VI in this current War Depart
1 ' L ment scandal talk.
The first hint that some OF
the Army contracts were not on the
level came at q secret meeting of the
House Appropriations Subcommittee.
Certain Army officials whispered their
suspicious to committee members.
At the same time a Republican,
newspaper here got tip on the
situation. 1t spent a peek digging
up the facts. But just D'1en 1t tras
ready to publish the story, Mr..
Roosevelt and the War Depart.
nrent announced 1t.
Previously House Democrats and
some war officials slipped up to the
White House and whispered In Mr..
Roosevelt's ear.
That enabled him to take the In
itiative instead Of having o Repub-
lican source get credit for 1t.
That makes bigger difference than
YOU suspect. 1t has been followed up
by War Department whispers that the
old Republican administration Is re-
sponsible for the situation.
Evening star., 1934-02-10
BANKERS FACING
FURTHER CHARGES
AlvanIey Johnston and C.
Stirling Smith Convicted
on False Entries.
By the Associated Press.

By the Associated Press
CLEVELAND. February 10.-After
hearing February % on the plea of
Alvanley johnston and c. Stirling
Smith for new trial, following their
conviction yesterday on a charge Of
misapplication Of Standard Trust
Bank funds and false entry, the
State will decide the status Of an
other indictment against them, As
slstant County Prosecutor Henry S.
Brainard said today.
Johnston, grand chief engineer of
the Brotherhood of Locomotive Engi-
neers and former director in the
Standard Bank, and Smith, former
president OF the now-closed institu-
ton, were found guilty on 9 of II
counts OF an indictment against
them.
Secretary Treasurer Freed.
James H. Cassell secretary-treas-
urer of the Brotherhood and also a
former director in the bank, was ac-
quilted on four counts and the Jury
disagreed on the other seven of the
same indictment.
None of the defendants commented.
Smith and Johnston are free on bond.
as Is Cassell on a separate indictment.
There is another indictment pend
ing against Johnston, Cassell and
Smith" Brainard said. Until the
outcome of the motion of Johnston
and Smith for new trial. we are not
prepared to say whether the three
Will be tried on this indictment or
not
Johnston and Smith could be tried
again also on the count on which the
jury disagreed, and Cassell could be
tried again on the seven counts on
which the jury disagreed with respect
to him"
Will Set Dates.
County Prosecutor Frank T. Culli-
tan said dates will be set shortly for
the trials of several other cases re-
sultlng from the closing of the Stand
ard Bank. which was a successor to
Brotherhood institution. The bank
mad deposits of more than $4,000
600 when 1t was closed.
T. j. BiSSett, first aSsistf mt grand
chief engineer of the Bro therhood.
said the conviction of Johnston did
not prove him guilty so far as the
Brotherhood was concerned and that
Johnston position as Brotherhood
officer has undergone no official
change.
Evening star., 1934-02-10
FATHER Of TWO
DIES IN FLAMES
Mother Saves Boy and Girl
as Glenn Dale Home
Is Destroyed.

Awakening to flnd her home q blaz-
ing inferno, Mrs. Anna Ridgeway Nc
Guire, %, OF Glenn Dale, Md. sue
ceeded in saving herself and her two
children, while her husband perished
In the fire early today.
Mrs. MCGUIRE and her 6-year-old
daughter Helen were severely burned
about the face and hands, however,
and are reported in a serious condi-
ton in Casualty Hospital.
The other child, Jack, 7, suffered
minor burns on his hands and was
taken to the home Of his GRANDPA
ther. John A. Ridgeway Of Takoma
Park.
AS the almost hysterical mother
was being taken to the hospital in
the Glenn Dale rescue squads ambu7
lance, police and firemen discovered
the body of her husband, John Thomas
MCGUIRE, "a, in a bathtub.
Believed Overcome by Smoke.
His exit by the doorway blocked by
sheet of flames. police believe he
entered the bath room with the idea
of escaping through a window, but
was overcome by smoke and fell In the
tub
Flames could be seen through every
window in the bungalow when Charles
Boswell. 40, q neighbor. came in sight
of the house as he walked toward the
w. B. g. A. tracks shortly after 6
o'clock
Hearing Mrs. McGuire's screams. he
rushed to the side of the dwelling
just as she broke a window and threw
Jack. clad only in his nightclothes,
into the snow.
Boswell helped Helen through the
window a moment later and then Mrs.
MCGUIRE climbed to safety. Scream
ing for her husband, she could be
restrained from re-entering the house
only with difficulty.
Flames Too Fierce to Enter.
Boswell tore of shutter and broke
another window, but could see no
trace of Mcclure and the flames were
too fierce to enter
The scantily clad mother and two
children were taken to the home of
their next-door neighbor, C. B. Sea-
ton, where they were treated by DR..
James H. Truitt.
Mcguire was employed as q night
watchman at the District of Colum-
bias Child tuberculosis Sanitarium,
near Glenn Dale. He worked from 4
pm. until midnight yesterday.
Police believe that, because OF the
severe cold, he added fuel to the fur
mace fire when he returned home
early this morning. They think the
overheated furnace or perhaps q de-
fective flue caused the blaze, but Its
exact origin remained . mystery.
Water Freezes In Hose Line.
The family formerly lived IN Ia
koma Park, but moved here about
three months ago 50 MCGUIRE could
be nearer his work.
Volunteer firemen from Bowie and
Glenn Dale were forced to stand by
and see the house go up in smoke
when water, which they were pump
ing from nearby wells, froze in the
hose lines.
County Policeman Arthur Brown
and Constable William Kreitzer i'm
paneled coroners jury. Justice of
Peace Henry O'Neill will conduct an
inquest at q date to be announced
later.
The bungalow was owned by Mrs.
Stefano Rigoli, prominent civic leader
and social worker Of Bowie district.
Evening star., 1934-02-10
FAVORS JOB INSURANCE
Roosevelt Endorses objectives as
He Studies Bill,

President Roosevelt made 1t clear
yesterday that he favored the objec-
tives Of unemployment insurance, but
he reserved official comment on the
proposed measure of Senator Wagner,
Democrat. of New York, pending
further study.
In response to inquiries he empha-
sized that he was in sympathy with
the general theory back Of the legis-
lation.
Evening star., 1934-02-10
STOCK EXCHANGE
BILL DELAY SEEN
Obstacles Loom in Meas
ure's Path as Congress
Seeks to Modify Severity.
Continued From First Page.)

or depressing the price Of the secur-
ity or creating q false impression to
the market of such security.
4. Spreading Of rumors that prices
will change In accordance with activ-
tiles Of manipulators.
5. Disseminating misleading tnfor-
nation regarding a security.
6. Paying for the dissemination Of
information in aid of the operations
Of manipulators.
z. Pegging the price Of a security
without informing the commission as
to all the details Of the operation.
8. Cornering the supply of a Sc
curity
Q. The use OF options and trading
against options.
Short Selling Restricted.
Prohibition against short sales or
stop-loss orders except in compliance
with regulations adopted by the COM
mission.
A limitation preventing brokers
from underwriting security issues and
prohibiting exchange members from
acting as specialists unless registered
as such.
A requirement for registration with
the commission and the exchange of
securities admitted to trading on ex-
changes, disclosing such details of the
company's financial position as the
commission may require.
Exclusion from the mails Of proxies
for registered securities unless infor-
nation on the proxies is filed with
the commission.
Outlawry of over-the- counter secur-
ity markets except in compliance with
commission regulations.
Compulsory disclosure Of holdings
and dealings of directors, officers and
principal stockholders in the secur-
tiles of corporation and a prohibi-
ton against speculation or short SELL
ing of the securities by such persons
Requirement for keeping detailed
records Of all transactions by brokers
open to inspection by the commission.
Would Establish Liability.
In general, the law would make per-
sons engaging in any Of these out
lawed practices subject to liability for
losses sustained through them by
others. In addition, it would impose
maximum penalties Of s25,000 fine
or 10 years Imprisonment for viola
tionS.
Exchanges violating the law would
be subject to fine Of $500,000
The bill follows the general lines
Of the new securities act in propos-
ing to make officers and directors Of
companies civilly liable for false or
misleading information filed with the
commission.
The Trade Commission, in addition
to making regulations for the ex-
changes, would have power to con-
duct Investigations of exchange oper-
ations and the condition of COM
panies with registered securities.
One provision of the bill, designed
to prevent evasions, would prohibit
persons from doing things through
dummy corporations or members Of
their families that they were forbid
den to do themselves.
The law would become effective
October 1, 1884.
Evening star., 1934-02-10

The current embarrassed look on
the face Of President Green of the A.
F. L. is due to the fact that he had
to change his position about the cleo
ton Of officials to the Labor Board.
II he had held his ground, a radical
anita F. L. official would have been
elected from the fur industry in New
York.
Green paid only 81 for most Of that
Communist literature he presented to
the White House recently. He bought
it at q book store here.
Wall streeters are trying privately
to convince the administration that
the recent recession in stocks was
caused by q threat Of stock market
legislation. That Is q laugh. The
truth is that the market was going too
high and too fast. and the Wall Street.
ers decided to sell so they could buy
later at reduced prices and get ready
for another rise which will go even
higher.
(Copyrisht. 1934)
Evening star., 1934-02-10

Another thing is that only about
$50 trucks have already been pur-
chased under the new $10,000,000 al
lotment for motorization. Bids have
been asked on about 1000 more.
Most of the $50 were bought from
reputable companies, not even sus-
pected of graft
So it seems that one contractor
may bear the brunt of the attack,
and that his past rather than his
present activities will be the basis.
Joke on Fletcher.
The joke is on Senator Fletcher.
AS chairman OF the stock market
investigators he has taken extreme
precaution to prevent Wall Streeters
from finding out what he intends
to do.
The other day newsman employed
by Wall Street agency was told by q
friend that Fletcher had q statement
ready at his Office regarding stock
market legislation. The newsman
called at Fletcher's office and was
handed several memos and letters.
Redd1ng heW ODeT OutS1ue, ne
found that they contained all
Fletcher's confidential Uie,cs as to
uhat the stock market regulation
should contain
Fletcher's Office had given him the
wrong statement.
These confidential papers were drawn
by Fletcher for his legislative drafting
adviser. The adviser happened to
have the same last name as the news
man. So when the newsman gave his
name at F1etchers Office, the clerk
there apparently though he was the
adviser.
Papers Returned.
The newsman debated with his con-
science for a while and then decided
to forfeit the best scoop he had ever
had. He took the papers back to
Fletcher and did not publish them.
Fletcher was wild. Publication
would have cost the clerk his job and
accomplished no good.
War Secretary Dern Is complaining
Evening star., 1934-02-10

the Army, shall be very much disap-
pointed"
He also asked the Post Office De-
partment to arrange a conference be-
tween himself and Army representa-
tives charged with talking over the
airmail routes.
Finances Explained.
President Robbins of T. w. A., In a
lengthy letter to Postmaster General
Farley, set forth the financial condi-
ton of the company, salaries. stock
holders and facts surrounding devel-
opment of a unified airmail as worked
out at the request of Postmaster
General Walter F. Brown.
Robbins said T. W. A. records had
been examined on several occasions
since last July by inspectors for the
Senate Airmail Committee.
I'VE know nothing Of the alleged
destruction of records by the former
Postmaster General" he wrote Farley.
but we do know that we have never
destroyed one single record. whether
contract, letter or telegram, pass
ing between us and the Postmaster
General or any other official of the
Post Office Department or other
branch of the Government"
A meeting of officials of United
Airlines is expected to be held this
afternoon on the situation, which one
official said "has hit us like bomb
she'll"
No statement of future policy will
be made until after the conference
and pending official notification of
annulment of contracts.
Philip G.. johnson, president OF
United Air Lines and the United Air
craft & Transport Corporation, denied
"any colluSive arrangement" in OBJ
tanning contracts. which were made
under competitive bidding. Johnson
said. in 1926 and 1927 under Post
master General New.
ANY meetings which our repre-
sentatives attended at which other
contractors were present were at the
express invitation Of the Post Office
Department" he asserted.
Evening star., 1934-02-10
SIAMESE ROYAL PAIR
REACH MARSEILLES
3y the Associated Press.

BY the Associated Press.
MARSEILLES, France, February 10.
The King and Queen of Siam, their
Oriental glamour hidden under plain
European attire, arrived today aboard
the liner Maonia
They are journeying by easy stages
to the United States, where King
Prajadhipok may undergo an eye
operation. They left Bangkok Janu-
ary II on q seven-month tour.
The King begged photographers to
spare him from their flashlights be-
cause of the weakness of his eyes.
Their itinerary calls for their ar
rival in New York April 16. The
royal pair will visit Washington and
other cities.
Evening star., 1934-02-10
JEWELRY STOLEN

HONOLULU, February 10 @.-
Mr.. and Mrs. B. A. Wallingford, jr.,
of Blue Ash. Ohio. yesterday asked
police to investigate the loss of iewelry
valued at $4,000 which they reported
was stolen from their state room
aboard the steamer Malolo while in
port at Los Angeles February 8. The
Malolo arrived here Thursday.
The Wallingfords said they had
$4,000 insurance on the jewelry.