Indianapolis Times, Volume 43, Number 130, Indianapolis, Marion County, 9 October 1931 — Page 15

Second Section

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James Truslow Adams The author of “The Epic of America,” is James TYuslow Adams and it is the October choice of the Book of the Month Club. It is issued by Little, Brown fc Cos., and sells for $3. It is a one volume edition of American history. tt tt "tt BY WALTER D. HICKMAN HAD an interesting visitor this week in the person of Dan Steele who is the author of “Snow Trenches,” just published by A. C. McClurg & Cos. It is a story of the World war on the Eastern front. Steele went to the Arctic circle with the North Russian American expeditionary forces. What he experienced and saw there forms the background of “Snow Trenches.” Now he is chairman of two important committees of the Chicago Chamber of Commerce. He has the urge to write and his first book looks like a success. I have a copy and will tell you about it next week. a tt tt The winner this week in the book review contest is Barbara Blatt of 2502 West Michigan street, who wrote a goon review of “The Cat Who Went to Heaven,” by Elizabeth Coatsworth and published by Macmillan Company. As soon as she gets in touch with this department, Miss Blatt will have the choice of one of several new books. Write your reviews at once and send them to the Literary Editor of The Times. Anew book will be given each week during the contest. Keep your review around a hundred and fifty words if possible. tt St St Miss Blatt’s review is as follows: The Cat Who Went to Heaven,” by Elizabeth Coatsworth. won the Newberry nrize offered annually by the American Library Association for the best children's book of the year, but like the fartasies of Walter ae la Mare or James Stephens, it will be more widely appreciated by adults than the children for whom it w r as ostensibly written. Good Fortune is a beautiful white cat whose master, a penniless Japanese artist, has had the honor of beins? commissioned to paint a picture of the death of Buddah for the temple. Each animal, from the little snail to the fierce tißer, that had helped Buddah was painted In the throne that approached the figure of the dying Lord. But the cat who alone refused the teachings of Buddah had no place among them. Yet Good Fortune. whatever might be the nature of other cats, was a very good, even pious little creature. And when all the animals had been painted on the silk and the picture was finished—and without any cat in It, her distress was so pitiable that the artist could not bear the sorrow of his gentle pet and took his best brush, touched It with ink—and drc*w a cat. The priests were outraged by this Indignity and ordered that the picture be burned, the next day. But a miracle saved it for when the priests went to the temple to tear it down, they saw that the silk on which the cat had been was without a touch of ink and the Buddah who had been painted with folded arms had stretched out his hand in blessing and beneath it. its head bowed in adoration, was the little cat. Miss Coatsworth's rhythmical, simple prose fashions the legend into a beautiful story that is enhanced by the illustrations that accompany it. Those who identify Lvnd Ward with the somber wood-cuts of“ God's Man." and “Madman's Drum.” will find this work of his very different in mood hut as skillfully done. He has copied the Japanese medium of brush and ink and has achieved, without anv imitation of its style, the same delicate effect of a Japanese print. Each animal is so well and sympathetically drawn that one , can not choose among them for a preference—until, one comes to the picture of Good Fortune. And then the matter is settled for the picture of the cat is exquisite. The one false note in an unusually well sustained harmony of theme, treatment. and illustration is the flamboyantly red and black binding of the book, but that is a detail of which most people are ob'tvious nnd which, in any case, can not blur the loveliness created by the author and the artfst. tt tt tt One of‘the most significant and most hopeful movements in modern American letters has been directed towards making the enjoyment of poetry an essential part of education through the medium of the narrative poem, and the announcement, therefore, that Brewer, Warren and Putnam published today, “Jane Matthew,” by Eda Lou Walton, one of the most, distinguished of modern American narrative poems, is of particular interest. Eda Lou Walton is already wellknown both for her critical work and her sensitive interpretation in her book. “Dawn-Boy,” of the songs of the Blackfeet and of the Navajo Indians, whose language she speaks. * tt tt tt FIRST of a series of story hours for children, to be anew feature of the program of activities at the John Hen-on Art Institute, will be given Sunday afternoon at 3:30 p. m. by Miss Mary Margaret Miller. The new feature is to be a bimonthly event for young folks from 6 to 12 years of age, and will coincide with the series of bi-monthly gallery talks to be given by Wilbur D. Peat institute director. Mr. Peat’s series does not begin until later in the month. The story hour will be devoted to story-telling, short discussions about art and illustrated talks which will interest a youthful audience. The first story will be “The Gift of the Moon Princess," an old Japanese myth, which will be Illustrated with special lantern slides. It combines a romantic tale with the story of how lacquer first was made. The art discussion will be further heightened by the collection of Japanese art pieces which the museum owns.

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STATE TRUCKS DEAL HALTED BY GOVERNOR Highway Board Accedes to Leslie Demand; Money to Provide Jobs. DODGE FIRM IS LOSER Contract for Purchase of 50 Light Cars to Be Held Up. As smoke of the long-drawn-out highway "trucks battle” cleared today, it was disclosed that the Indiana Truck Company remains triumphantly on the field while the Dodge firm was defeated. Defeat of Dodge is attributed largely to the verbal shrapnel fired by Governor Harry G. Leslie and said to be supplied by representatives of the Studebaker Corporation, “heavy Indiana taxpayer.” At any rate, the delayed truck deliveries were debated by state highway commissioners throughout Thursday, and at the close of the session, Director John J. Brown emerged with this prepared statement: Deferred Until Spring “At a meeting of the highway commission today at which the Governor was in attendance, the highway commission agreed that on account of unemployment conditions throughout the state and the general economic conditions, that we could best serve the interests of the state of Indiana by applying the funds with which we proposed to buy light trucks, to construction work and the relief of unemployment. The purchase of light trucks, therefore, will be postponed tfntil spring work opens up.” This means that more than SBO,000 worth of trucks contracted foV will not be bought at this time, unless court action is brought on the contracts. Dodge Big Loser Largest sufferer is the Victor E. Watkins Company of Muncie, which has a contract to deliver fifty Dodge trucks for $45,600. Other trucks upon which delivery is suspended, include six Studebakers from the South Bend plant for $4,819.50; eight Chavrolets from A. W. Bowen Company, Indianapolis, $5,350; eight Federals from the Federal Truck Company, Detroit, $7,510; eight Fords from the Thirtieth and Central Sales Company, Indianapolis, $5,463.36, and twelve light Indianas from the Indiana Truck Corporation, Marion, $11,784.96. All are half-ton trucks. The Indiana firm will make delivery on its contract for twentyeight heavy trucks costing $79,092.09. Brown explained that heavy trucks are needed to push snow plows this winter, Handled by York Sale of Indianas was handled by Homer K. York, vice-president of the company and Indiana state reformatory trustee. Another salesman for the company is Representative Sam J. Farrell, member of the state budget committee. History of the tempestuous truck deal includes the attempt by the Governor to halt purchase before contracts were signed. The commission at that time sought to protect itself by an opinion from the attorney-general. However, Attor-ney-General James M. Ogden gave them the wrong answer, and they went through with the purchase. The Governor then ordered a twoweek halt on deliveries and succeeded Thursday in stopping them. His shafts were directed at the Dodge deal, which got away to a bad start by being put across by an agent instead of a manufacturers’ representative. vDeserve Consideration Before the meeting Thursday, the Governor declared that the Studebaker and Dodge trucks had been designed by the same engineers. Previously, he had pointed out that the Studebaker firm is a large Indiana taxpayer and heavy employer of labor, thus deserving consideration. One of the Studebaker contentions was that its unit was SIOO less than Dodge in price.

Death-Defying Barnstormers Are Pacifies First Conquerors

BY BERYL MILLER NEA Service Writer .OoDvrieht. 1931. bv NEA Service. Inc 1 j IGHTNING struck Clyde I j Pangborn’s plane high in the air, and he side-slipped the burning ship to safety. . . . His motor cut out, and he landed unhurt on the street of a Florida city. ... A woman jumper's parachute caught on the strut of his plane, and he climbed onto the wing and pulled her back from almost certain death. These are some of the reasons why Hugh Herndon Jr., banker’s son and New York society man, chose Pangborn, the vagabond barnstormer, for a partner on their round-the-world flight, climazed by the first successful nonstop crossing by an airplane of the dangerous Pacific. “He’s one of the few real oldtimers left. And, you see, he’s still alive,” said Herndon. “That’s why I teamed up with him. I guess he’ll stay alive.” Pangborn, at 34, is said to have more flying hours (at least 12,500) to his credit than any living man. He received his aerial baptism in the army air corps. u THE veteran flier became chief pilot of Gates’ Flying Circus, one of the most widely known organizations of wing walkers, stunt fliers and parachute jumpers of aviation’s pioneer days. If any pilot is “living on borrowed time,” Pangborn is. He has Emerged the hero from a host of breath-taking adventures.

The Indianapolis Times

‘OH, FOR FARM LIFE,’ SIGHS ACTRESS

Ruth Etting of Stage-Radio Fame Holds Home Above All

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Star of the Follies, favorite guest artist of the air, Ruth Etting would rather sit back in a rocker on the porch of her folks’ home in David City, Neb., than enjoy the many pleasures of New York. She gets that way after a hard day of acting and rehearsing for stage and studio.

MASS FORCES TO FIGHT BANK CLAIM

Key to Past By United Press CHICAGO, Oct. 9.—Thirtyseven years ago, a man whose name has been forgotten stopped in Room 646 at the Hotel Sherman. When he left, he took the door key. The key has just been received by the hotel. It was sent from Sidney, Australia, without any explanation.

POISONING IS SOLVED Poor Refrigeration Blamed in Purdue Cases. By United Press LAFAYETTE, Ind., Oct. 9.—lllness of 119 Purdue university students last Sunday night was caused by bacterium enteriditis, a paratyphoid germ, it was revealed today by authorities who investigated the sickness. Dr. O. P. Terry, head of the university medical staff, attributed the germs “to exceptionally warm weather, combined with insufficient refrigeration, due to changes being made in the system.” Dr. Terry determined that the germs were carried in chicken salad sandwiches served at the evening meal Sunday. All the students who became ill have recovered. ROBINSON IS AGAINST PHILIPPINE FREEDOM Independence Inevitable, but Time Not Ripe, Says Senator. Continuing his series of discussions on the Philippine situation, Senator Arthur R. Robinson told members of Young Lawyers’ Club at a luncheon Thursday that, although independence for the Philippines is inevitable, the United States would be shirking a moral obligation if it were to grant it now. Charging that the natives have shown great ingratitude, because, although the possessions are a liability, the United States has, and is, spending millions to educate them and improve their living conditions. “Every session of their legislature witnesses a demand for immediate independence, which should be granted them only when they are capable of ruling themselves,” he said.

In a different way, Hugh Herndon is as picturesque as his flying mate. He was born in Titusville, Pa., but moved to New York. He is 27. The socially prominent son of a banker, he grew tired of studies at Princeton in 1925 and sought adventure in the Oklahoma oil fields.

INDIANAPOLIS, FRIDAY, OCTOBER 9, 1931

Creditors of Defunct Farmers Trust May Battle President’s Move. Creditors of the defunct Farmers Trust Company today were considering organizing to fight the attempt of Charles N. Williams, president of the bank, to obtain a court order giving him a large portion of the institution’s assets. Williams has filed a petition in superior court four asking the court to allow him a claim of $292,798.39, as a secured and preferred claim over claims of depositors and all other creditors. Court records also revealed today that Williams has filed another petition demanding that several thousand dollars worth of bonds, owned by him, be returned by Boyd M. Ralston, receiver. Exact Value Unkmnvn In his petition, Williams states that the large sum is held by the bank, as trustee, in a “special trust account,” created Nov. 8, 1930. “The bank was to hold the moneys as trustee and agreed to hold the account as secured by a first Lein upon all the assets of the Farmers Trust Company,” the petition contends. Assets of the bank, now held by the receiver, include real estate, bonds, stocks, mortgages and other properties. Exact value of the real estate is unknown. However, appraisers have been appointed by Judge Clarence E. Weir to appraise farm properties owned by the bank in other states. Administration Not Possible Williams, states that he “deposited of his* own funds various amounts, under terms of the special trust agreement, totaling $292,789,” which he demands with interest. Administration of the bank’s assets will not be possible for some time, Receiver Ralston stated recently, because the value of its real estate holdings is unknown. The bank closed its doors May 4, 1931. Othneil Hitch, attorney and creditor, charged today that “Williams wrote the agreement by which he now seeks to secure this large preferred claim.” V Miner Electrocuted By United Press CLINTON, Ind., Oct. 9.—Leo Bozarth, 33, was electrocuted while working in the Bogle mine near here. A crossbar, which became dislodged, pulled a trolley wire down as it fell. The wire fell across Bozarth’s body, killing him instantly. He leaves his widow and four small children.

THERE he met Pangborn and a friendship developed. Herndon couldn’t get a pilot’s license in the United States—he’s color blind—so he went to Prance and obtained it there, in 1927. The fliers formed the “Around the World Corporation” early this year. Lewis A. Yancey of transAtlantic fame, an naviga-

BY FAI L HARRISON NEA Service Writer NEW YORK, Oct. 9.—Ruth Etting sat in her dressing room at the Ziegfeld theater and talked—about radio, about herself and her home in David City, Neb. Ruth just had finished her famous cigaret-girl number. She was tired, and whenever Ruth Etting is tired, get ready for a lecture on the simple life and simple pleasures. “Too many of us who divide our time between the stage and broadcasting tend to forget the little towns and the people who hear but don’t see us. But those are the very ones who remember. They’re the real fans. “There are few who have moved successfully from the stage to

CHINA WARNED BY JAPAN TO HALT BOYCOTT * War Threat Is Contained in Official Note Fixing Terms for Peace. BY MILES W. VAUGHN Upited Press Staff Correspondent TOKIO, Oct. 9.—Bombing of Chinese headquarters at Chinchow, dispatch of warships to China, and a militant warning that China must protect lives and property of Japanese residents indicated today that the miltary had outweighed the peaceful intentions -of the foreign office. Some political quarters expected the government of Premier Baron Reijiro Wakatsuki to resign in view of its inability to overrule the warlike activities of the army. More than a score of vessels will be sent to Shanghai, Hankow, Nanking, and other Chinese ports. Holds China Responsible The official warning to China said the Nanking government would be held responsible for failure to suppress the Chinese boycott against Japanese goods and for failure to protect lives and property of Japanese. It appeared that General Honjo, commanding Japanese forces, which occupied Mukden apd the south railway zone in Manchuria, ordered the bombing of Chinchow, provisional Chinese headquarters in Manchuria, at his own discretion. The foreign office previously had instructed the commander to do nothing to aggravate the Manchurian situation. Peace Policy Endangered Bombing of Chinchow brought relations between Japan and China to the most dangerous point since the Tsinan incident of 1928, when Japanese and Chinese soldiers fought in Shaqtung province with heavy casualties on both sides. The foreign office appeared to be throwing the full weight of its influence for peaceful methods and solution of differences through diplomatic channels, but the army—always a strong factor In Japanese political and social life—appeared determined to force some sort of demonstration in Manchuria. China Calls on League By United Press GENEVA, Oct. 9—China demanded today that an urgent session of the League of Nations council be summoned to deal with the Manchurian situation. The secretariat hoped the session might be possible by Monday. Feeling that the situation might get out of control before the scheduled meeting of the council Oct 14, Sir Eric Drummond, secretary-gen-eral of the league, communicated with officials of the council regarding an earlier meeting. Wabash Man Fights Capone By Times Special CRAWFORDSVILLE Ind., Oct. 9. Dwight Green, assistant United States district attorney, who is appearing for the government at Chicago in its income tax suit against A1 Capone, attended Wabash college here shortly before the United States entered the World war.

tor, was engaged to instruct Herndon. They spent months in preparation, Herndon studying navigation and specializing in “blind flying.” Then, on July 28, the eastern society man and the veteran western barnstormer soared away from New York, bound round the world.

radio. A real actor can t express himself with voice alone. And still fewer have won stage success by the radio route. “So I wouldn’t advise any amateur to aim at the stage through radio. Anyhow, radio is the quickest road to perhaps the greatest fame.” tt tt a SHE sighed. It sounded like a young lady being homesick for David City, Neb. Coming from one of the highest-paid stars of the Broadway shovt world, and one who .can get SI,OOO for a single radio broadcast, it seemed just a little incongruous. ‘1 was thinking,” confessed Ruth Etting, “how nice it w.ould be to be lying out in the back yard at home. I’m going to build

Kickback By United Press HOWELL, Mich., Oct. 9. There certainly is a kick to those bricks, Dr. Clifford Parker, wine brick dealer, mused—or maybe its the cleaning compound. Anyway, Dr. Parker was blown through the window by an explosion when he started to light a cigaret while standing in the center of his store.

MAYOR DODGING. SAYISEABURY Charges Walker Is Evading Quiz on Funds. By United Press NEW YORK, Oct. 9.—Samuel Seabury has followed his revelation that four Democratic politicians deposited in seven years $1,100,C00 more than their salaries with an intimation that he was prevented from delving into Mayor James J. Walker’s brokerage accounts. Seabury for some time has attempted to get Russell T. Sherwood, business agent for Walker, within the power of the Hofstadter citywide investigating committee. , And Thursday, before Edward Clennon, supreme court justice, Seabury said: “I am being obstructed by every means possible. Why, even the mayor of the city has aided this obstruction by keeping his business agent, Russell Sherwood, out of the jurisdiction of the Hofstadter legislative committee.” Walker declined to comment when informed of Seabury’s charge. Seabury made the charge in his fight to uphold the committee’s power to examine witnesses in private. PROTEST LESLIE ACT Term Is Shortened for Bandit in Killing. By United Press HAMMOND, Ind., Oct. 9. —Loud protests were being voiced by Lake county citizens today against action of Governor Harry G. Leslie and the state prison board of commuting the twenty-five-year prison sentence of Charles McManion, Chicago Heights, to two to twenty-five years. McManion was said to have confessed to seven holdups when he was tried on robbery charges. He was alleged to have participated in a holdup at Schneider, Ind., in which Louis Teboda was shot fatally and a railroad detective wounded. McManion was sentenced to the Indiana state prison last January. AK R oOnTIL- D AYTRIP Big Dirigible Makes Sunrise Start on Fifth Trial Flight. By United Press AKRON, 0., Oct. 9.—The U. S. S. Akron rose from the GoodyearZeppelin airdock at 6:45 a. m. to- | day, and headed northeast on her ! fifth trial flight. Before embarking, Lieut.-Commander Charles E. Rosendahl said the giant air liner probably would remain aloft all day.

VI THEN ~ Pangborn and Hern- ’ ’ don dropped out of the sky from Siberia in a big red monoplane at Tokio on their round-the-world flight, a charming Nipponese beauty presented them with a. huge bouquet of flowers and ajterowd of thousands cheered thenras heroes.

Second Section

Entered as Second-Class' Matter at Post-office. Indianapolis, Ind.

anew house out there next year. No, I haven’t any immediate family, but I do have nine cousins, and we’re very close. “You see, I'm not stage-struck, and I haven't a lick of temperament. I was just lucky enough to have a voice. “I danced in Chicago night clubs to pay my way through art school. Then I started singing. It was about seven years’ ago that I got a job singing three nights a week over WLS in Chicago. “Five years ago I came to New York, but I didn't do any more broadcasting until 1928, when I was in 'Whoopee.’ “Now I do only three or four programs a month, because it’s such hard work in addition- to the show.”

‘BAD BARGAIN’ BOUNDS UP TO FRETCAPONE Letter Seeking Income Tax Deal Admitted Into Trial Evidence. BY RAY BLACK United Press Staff Correspondent CHICAGO, Oct. 9—Al Capone tried to wriggle out of his own bad bargain with the government today. As his income tax fraud trial before United States District Judge James H. Wilkerson went into its fourth day, the record held details of a Capone compromise offer that his own attorneys characterized as a confession. A letter, ruled as admissable after a day-long battle by the defense to prevent its being entered as evidence, contained Capone’s admission through his Washington attorney that the gang chief’s income over a four-year period was $266,000. It admitted no tax had been paid. The letter has not been read to the jury, however, and another battle to prevent the jury hearing it was expected today. “Nailed to Cross” “You’ve got Capone nailed to the cross now,” Albert Fink, defense attorney, cried. “Admission of this letter will put him in the final hole.” The letter, written by Attorney Lawrence Mattingly of Washington, to C. W. Herrick, chief internal revenue agent here, pleaded the cause of Capone as a $75 a week man for an “organization,” a family man and the father of a 12-year-old son, the sole support of his widowed mother, brother and sister. It stated that Capone had handled “considerable sums” lor the organization (meaning the Capone gang), but had never been its banker and always had owed his associates in the group $75,000 or more. Paragraph Is Damaging But included in the letter also was the following paragraph, which District Attorney George E. Q. Johnson and his aids intimated might become the deciding factor of the trial. “Notwithstanding that two of the taxpayer’s (Capone’s) associates, from whom I have sought information with respect to the amount of the taxpeyer’s income, insist that his income never exceeded $50,000 in any one year, I am of the opinion that his taxable income for the years 1926 and 1927 might be fairly fixed at not to exceed $26,000 and $40,000, respectively, and for the years 1928 and 1929 not to exceed SIOO,OOO a year.” . The government needs prove only that Capone had a taxable income of $5,000 a year. One of A1 Capone’s pleasure jaunts to the Florida coast as a “man from Chicago’s who's in the cleaning and pressing business” and his later admissions there that he was owner of dog racing and gambling interests were-described at the trial today. Vernon Hawthorne, state’s attorney from Dade county, Florida, on the witness stand told of the conversation between Miami officials and Capone in the summer of 1928, when the gangster was called to explain why he was there.

A few moments later, the two American airmen found themselves in custody of police, branded as spies, facing serious international complications, and unable to start their nonstop hop across the Pacific to America. A roll of exposed movie film, and the fact that they had failed to obtain proper permission to land on Japanese soil caused all the trouble. By some streak of chance, the aviators obtained almost perfect pictures of some of the most secret fortifications in Japan. Police and the military pounced on the camera almost as soon as they took the plane in charge for landing without a permit. tt tt a THE aviators at first were amused by the excitement. But their smiles disappeared with the increasing clamor in the Tokio t Nationalist press that they be punished to the full extent of the law—heavy fines and long prison sentences. Finally, with excitement at a fever pitch, the Americans were brought before a sub-district court judge on Aug. 15 and sentenced to pay 2,050 yen each ($1,025) or go to jail for 205 days. They paid the fine. And off Oct. 3. the wealthy, college-trained society man and the veteran aerial barnstormer pointed the nose of the monoplane eastward toward America—and fame as the first airmen to make a nonstop flight across the Pacific. * ,

HOOVER PLAN ACTS AS TONIC FOR BUSINESS Confidence Rises as Giant Bank Prepares to Free Frozen Assets. BANS EXTRA SESSION Talk Diversion of Federal Reserve Profits to Permanent Pool. BY THOMAS L. STOKES United Press Staff Corresnondcnl WASHINGTON, Oct. 9.—A spirit of confidence and optimism is manifest in the Hoover administration on the eve of formal launching of its plan to inject a vitalizing stream of money and credit into the sluggish veins of business, industry and finance. The $500,000,000 banking pool, characterized as "prosperity pool,” is expected to be incorporated by Saturday, within two weeks it should be ready to operate through the twelve federal reserve districts of the country, attacking the weak spots which unduly affected the whole financial structure. While the government sponsors this temporary instrument of private bankers, treasury and federal reserve officials and members of congress are formulating legislative proposals so that the federal reserve system itself can meet a future situation through the same methods. Democrats Take Action So eager are some Democrats to get at this problem immediately that they have started a campaign, promoted by Senator Joseph E. Robinson, minority leader, and Senator Walsh (Mont.), to call congress into extra session immediately. President Hoover, it can be said, has no intention of acceding to their demands. He is depending upon the private bankers to do the immediate job. Beyond liberalizing of the federal •reserve act, the administration program calls for increased capital for farm land banks to aid agriculture, and, if necessary, formation of a semi-governmental agency, like the war finance corporation, to supplement the private banking pool and the other financial relief agencies. The private banking plan, essentially, is simple. The pool, operating like a gigantic bank, will take from other banks those “frozen” assets-mortgages, bonds, and stocks —which are inherently good and sound, but depreciated in value at this time. Fresh Credit for Banks In their place, the banks will get credit by the action of the giant bank in taking over these assets and discounting them. This credit will strengthen their position. It will halt the throwing of such assets upon the market, in a desperate effort to get needed cash. The banks in some cases, have had to restrict loans for business activity because of the need to keep large cash reserves in recent months, and the new plan will relieve the pressure. It is visualized also as bolstering confidence so that the billion dollars which it is estimated in hoarded in safety deposit boxes, mattresses, and in tin boxes will find their way back to the banks and be put into circulation. Two proposed changes in the federal reserve act which are being considered by treasury and federal reserve officials are drawing both support and criticism.

Revolving Fund Considered One is to create within the federal reserve system a revolving fund, out of which depositors in failed banks could be paid. The proposal is to create this fund, ranging from $100,000,000 to $500,000,000, out of earning of the federal reserve system. The other proposal is of a more radical nature. It would extend the rediscount privilege of the federal reserve banks to sound stocks and industrial bonds not now included in the law. Rediscounting now is restricted to notes, drafts and bills of exchange covering actual commercial transactions of maturity not over ninety days, or seasonal agricultural requirements of a maturity not greater than nine months, as well as paper secured by government bonds, treasury certificates, and United States notes, provided maturity is not over ninety days. Seek to Halt Gold Flow The action of the federal reserve bank of New York in raising its re- | discount rate from the record low of IV2 per cent, to per cent, caused little reaction here, though officials declined to discuss it. Privately, they said it represented an adjustment to meet present market conditions, in financial J quarters it was regarded as a move | to check the outward flow of gold, which has begun to. make a slight : dent in the huge stocks of this I country and to give bankers, apparently anticipating a demand for money, a chance to make more profit m u' lending operations. ASSERTS PAL INNOCENT Chapman’s Aid, Facing Deportation, Pleads for Prisoner. lly United Press ATLANTA, Oct. 9. Ludwig Schmidt, who tunneled his way out of Atlanta prison with Gerald Chapman’s partners in crime while serving a 10-year term for the $500,000 Niagara Falls mail robbery, pleaded again today for liberation of a co-defendant. Schmidt just had completed serving his sentence: he now awaits deportation to Germany as an undesirable alien. “James Morrison is absolutely innocent of that crime,” Schmidt told the United Press. Morrison is serving a twenty-five year sentence for the robbery in which Schmidt also was convicted. •