Indianapolis Times, Indianapolis, Marion County, 2 February 1939 — Page 3

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Negoti ations May End 5-Year - Battle With Private Utilities;

7-Month Deficit Nearly 2 Billion

Tentative Price Said to Have Been Set; Plan No More Suits.

! NEW YORK, Feb. 2 (U,P.)—The billion-dollar Commonwealth and Southern Corp. was reported today to be nearing an agreement with the Tennessee Valley Authority that may end the five-year fight between Private power interests and the New eal ! Wendell L. Willkie, Commonwealth president, conferred all day yesterday with J. A.. Krug, TVA power engineer, and Joseph Swidler, TVA. legal representative. Although no results were announced, it was reported that a tentative price had been agreed upon for the sale to TVA of the Tennessee Electric Power Co., Commonwealth's operating unit directly affected by Government power oper tions in the TenNessee Valley. + Arguments we the value of this company have atured the long dispute o Oper whether the Government had a right to generate, transmit and distribute electrical power from dams ostensibly built for flood control, in competition with private industries already established. «+ Mr, Willkie has led the private utility interests’ fight through the Supreme Court, and has frequently

- Said that if the dispute could be

settled, private power companies would immediately begin a one billion dollar expansion program which would put 400,000 men to work. : Asked 94 Millions - He has asked 94 million dollars for the Tennessee operating company, and the TVA has offered 67 million dollars. It was reported that he had lowered his price at yesterday’s conference, and that the

- TVA officials tentatively had raised

their offer to where the figures were virtually in accord. » The Supreme Court ruled last

. Monday that 14 private power com-

panies who had challenged the validity of the 500-million-dollar TVA program, were without: legal standing. Although the court did not rule on the constitutionality of TVA, its decision was interpreted as a goahead for TVA directors. Tuésday, President Roosevelt announced that the Securities and Exchange Commission had declined Commonwealth's request to fix a fair

- price for its Tennessee company. Mr.

Roosevelt said the SEC had no auhtority and no funds to conduct a

. hearing and set a price.

Mr. Willkie announced that there would be no more suits against TVA, but explained that it had no reference to yesterday's conference.

Approves $25,000 For TVA Inquiry

WASHINGTON, Feb. 2.(U, P)— The Senate today approved a resolu-

tion giving a joint Congressional

committee investigating the Tennessee Valley Authority an additional $25,000 to complete its study.

. U. PROFESSORS ASK LIFTING OF EMBARGO

BLOOMINGTON, Feb. 2.—Sixtytwo Indiana University faculty members today petitioned President Roosevelt to ask Congress to repeal “that part of our neutrality legislation by which the legal Government of Spain is deprived of its normal right . . . to purchase materials of war in ‘this country.” Among the signers were Bernard C. Gavit, law school dean; Edwin H. Sutherland, sociology department chairman and American Sociological Association president, and Charles J. Sembower, dean of men and Eng-

{nation of Floyd H. Roberts as Fed-

NATIONAL AFFAIRS "TVA accord with Commonwealth reported near. SEVEN months spending nearly equal to year’s income. ALASKA proposed as haven for Europe’s refugees. FAVORABLE report on Dies probe continuation expected. DOWNEY proposes $100 per month for persons over 55.

END of tax immunity may be expensive. for Roosevelt.

ACTION ON DIES PROBE AWAITED

Although Bitter Debate Is Held.

WASHINGTON, Feb. 2 (U. P.).— The House Rules Committee was expected to report favorably today a resolution continuing the Dies committee which investigated unAmerican activities last year. The resolution will be sent to the House, however, only after a fight of House liberals to deny the committee an extension or more money. Approval by the committee was almost certain after anti-Adminis-tration members reported favorably a resolution recreating a special committee to prepare Government reorganization legislation. In return for that move Administration committee members were understood to have compromised on the Dies resolution. The House passed the reorganization committee resolution yesterday; it is expected to pass the Dies resolution tomorrow.

Bitter Debate Held

Rep. Hill (0. Wash.) charged today that Chairman Dies was “not a judicial person” and therefore was not fit to direct additional inquiry into the subject. “He has made himself president of the House ‘Demagog’s Club’ and he has lived up to it,” Rep. Hill told the Committee. Rep. Hill’s testimony touched off bitter debate. Rep. Cox (D. Ga.) defended Rep. Dies. Frequently two or more persons attempted to talk iat the same time and Chairman: Sabath (D. Ill.) rapped hf gavel, pleading, “Gentlemen, gentlemen! Please don’t do this.”

One Amendment Left on WPA Bill

WASHINGTON, Feb. 2 (U. P.).— The House today approved the conference report on the 725-million-dollar WPA appropriation bill and began consideration of the amendment on regional wage differentials —only remaining controversial item.

Carry Roberts Eight to Senate

WASHINGTON, Feb. 2 (U. P.).— Senators Glass and Byrd, leaders of the conservative bloc, today carried to the Senate their fight to reject President Roosevelt's nomi-

eral judge for the western Virginia district. . Mr. Byrd and Mr. Glass seek Senate approval of the 15 to 3 vote by which the judiciary committee wrote an unfavorable report on Mr. Roberts’ nomination.

Predict Favorable Report |

Expenditures Almost as Much as Anticipated Year’s Income.

WASHINGTON, Feb. 2 (U. P). —The Treasury revealed today that it ended the first seven months of the current fiscal year with a deficit of $1,961,543,858. The daily Treasury statement for Jan. 31 showed that spending since July 1 totaled $5,222,590,404 as compared with $4,262,464,425 in the same period last year. Spending for the first seven months closely approaches total income anticipated for the entire fiscal year. Receipts aggregated $3,235,436,995, compared with $3,510,922,783 in the corresponding period of the 1938 fiscal year.

More Than Double 3g

The deficit, which did not reflect $25,609,500 expended for debt retirement, compared with $711,987,692 in the corresponding seven months of fiscal 1938. The public debt continued its rise to new record heights, reaching $39,631,276,260 on Jan, 31. Expenditures for the fiscal year, which ends June 30, were budgeted at $9,492,000,000. A deficit of approximately four billion dollars was forecast.

Plans BiH Opening

Alaska to Refugees

WASHINGTON, Feb. 2 (U. P).— Chairman Dickstein (D. N. Y.), of the House Immigration Committee, said today he was drafting legislation to open Alaska to European refugees. Mr. Dickstein said that he was studying Alaska to determine its suitability for colonization, principally by Jewish refugees. He said his research shows that Alaska can support ‘upwards of a million persons.” The territory has an area of 586,400 square miles, of which 65,000

“|are estimated to be crop-producing,

and a population of only 59,278. “It seems reasonable that 100,000 to 200,000 persons a year for five years could be admitted to Alaska without disrupting the national economy,” Mr. Dickstein said. “Present immigration quota laws, of course, would make it necessary for Congress to enact special legislation to permit absorption. “On the fact of evidence now available it seems entirely feasible to permit refugees to settle in Alaska. The territory is rich and fertile. It would be possible to finance

4the building of homes, for instance,

by the Federai Housing Administration, which is largely self-liqui-dating.” He said that he probably would take his studies to President Roosevelt and ask for his opinion. He emphasized, however, that the proposal still was in the “study stage.” Mr. Dickstein’s suggestion followed designation by the sole remaining legal organ of Jews in Germany, the Juedisches Nachrichtenblatt, of Alaska as the first choice for mass Jewish colonization. The publication disclosed that a committee of British and American members will leave New York for British Guina, which was selected as second choice, about Feb. 8, to study the possibility of settling ; refugees there. PORTUGAL IMPRISONS 24 LISBON, Portugal, Feb. 2 (U. P.). —A special military = tribunal yesterday sentenced 24 persons to

prison terms varying from 10 months to four years and took away their civil rights for five years for spread-

lish professor.

ing subversive propaganda.

IN INDIA NA POLIS

; 2, of 152 Here Is the Traffic Record) A rs. 2 ot 0 Payers ue

County Deaths | Speeding .... 6 (To Date) Reckless

driving 2

Running preferential streets ..... 7

City Deaths (To Date)

1939 ......... 1938 ..... a... 10

Feb. 1 Accidents ....

Injured ...... Dead ... ests

Running red lights

Drunken driving ..

1 Others

MEETINGS TODAY

eIndianapolis Real Estate Board, lunchHotei Washington. on. PAavertisiag Clb of indianapolis. lunchlumbia Club. noo OO Chi, luncheon, "Board of Trade, Be rican Business Club, luncheon, Co-

in redit Group, luncheon, Men's Grille, ig William H. Block Co.,

noon Acacia, luncheon, Board of Trade, noon. < Aran a Nu, luncheon, Hotel Washington,

Ho ava Club, luncheon, Murat Temple, Roadie Sines Guild, meeting, Hotel

m. Anil rian, luncheon. Hotel Severin, noon.

. ti ague of Indianapolis, | p, inches: Architects and Builders Buildihe Tadiana lis Camera Club, meeting, 110 E ly <r Tincheon. Canary Cot-

aD, Chapter, International Association of Electrical Inspectors, convention, Hotel Antlers, all day.

MEETINGS TOMORROW

tive Council, ght. eon, Hotel Washon, Columbia Club,

« Exchange Club, 1 ia ton, noon. 1 Sp timist Club, lv

Reserve Officers’ Assotiation, luncheon,

T i Set Theta Ju luncheon,’ Canary Cot-

py Delta, luncheon,

meeting, Hotel

Columbia

3 ‘Stamp Club,

m. Antiers. 80. Symphony. Orchestra, concert, Murat Theater, 2:45 p

MARRIAGE LICENSES * (These lists are from official (ecords the County Court House. The imes, therefore, is not responsible for srrors is names of addresses.) ;

; Robert Drexler, 20, 0. of 1046 Nelson St.; June J. Hogans. 32 of 1620 §, East St. ouze, of 730 ttage Ave.” ances H. Shdor, | 124, of 62] ‘Home

iy He Christian. 51, In} ianapEdith Bridgewater, 33, of 321

: J ne G. Lit , Covington, O.; Janina G1. 0 %0d8 Sroadmay: Oi Janins

hypertension. : Paul : sion

Willard Pr. Eckert, 25, of 1122 Prospect

St.; Mary C. Burris, of 1023 Olive St.

BIRTHS

Boys Albert, Sadie Gahimer, at St. Francis. Herbert, Florence Martin, at City. Dock, Grace Lee, at City. Glen, Eloise Winter, at St. Vincent's. John, Mary Engieman, at St. Vincent's. Curtis, Charlotte Davis, at Methodist. . William, Louise Buschatsky, at Method5

, Lorraine Hopkins, at Metnodist. Girls

James, Mary Laugley, at St. Francis. sore Mary Baudendistel, at St. Fr cis

ranA at St. Francis, at City. at St. Vincent's. at St. Vincent's. at Coleman.

, at

iene a Brainard, Cooper, a -

st. Edward, Ruth Pyland, at 253 8S. Keystone. Twins

Edgar, Ruby Janes, at Methodist, boys.

DEATHS Rolla E. Little, 51, at City, lobar pneu30, at City,

Jin Walls, tuberculosi

nelle or, 20, at City, lobar pneuon William A. Barrett, 44, at 316 E. 49th, coronary thrombosis. Mary C. Taylor. 76, at 1505 N. Colorado, Bypertension; E. Riley, 52, at Veterans’ Hospital, arteriosclero Mattie Whitheld, 71, at 102 Cora, chronic myocardit.s Walter Willits, 61, at Central Indiana -{Hogpital, cerebral hemorrha Henry Klefker, 70, at Ci 5

Wary Susan Burks, 49, at Long, bronchopneumonia Maggie Pearson, or at St. Vincent's, cerebral femorrh ha Nancy E. “. at 608 E, Walnut, cyte Sprdjac Satie her, i, at 3603 Washin gon Blvd. £5: ethodist,

pulmonary

abscess of

oc. cerebral hemorrhage elen Wadsworth, 43, at broncho pneumonia. rra PF. Havill, 70, at Veterans’. Hospital, ercbrer hemorrhag 48, 2% 1905 Charles,

[ey J. at 2344 N. Alabama, | p

coronary ‘occlusion ohp "J. Crump, 62, at 2547 Sangster,

Romberg, 51, at City,

INCORPORATIONS

Provident Building & Loan AsSoeiation, Indianapolis; dissolution. Stratford University, South Bend; capital stock; educational: Savage, Fredrick Juchhoif, Alyce Hansen, Lewis Jenkins, Alene H. Gibbon:

no

Steel Protection & Chemical Co. Inc., In- : .| dianapolis; change of address to Moores-

ville, Ind.

hyperten- K

_

ase ol 5 Gus Corp. Greencastle; ent to alter D . RS Cloverdale r Dorsett, R ast Gary Security Co., Inc., 607 Broadway, Gary; resident agent, Hoy. D. Davis, same address; capital stock, 1000 shares no par value; to ‘operate. insurance agency and real estate business; Patrick J. Kilroy, Fred Ellen, Albert B. Wyant, Nilda Wyant. G.’s. Spring Clutches, Inc., 1701 Gent at Indianapolis; resident "agent, ‘W. Carleton Starkey, same address; capital stock, 750 shares preferred of $100 par value and 1000 shares Class A common and 000 shares Class ® common no par value; Lieshsing Saving Fuiches and units: Ww. arkey, Jo. [ions y n Beaty, Ralph G.

OFFICIAL WEATHER

teeeeeeBy U. S. Weather Pureatiom |

INDIANAPOLIS FORECAST — Partly cloudy tonight and probably tomorrow; much colder tonight with lowest temperature about 20; continued cold tomorrow. "Sunrise 6:53 | | Sunset TEMPERATURE —Feb. 2, 1988— coils 33 | 1 1p m BAROMETER a.m ....... 29.91 Precipitation 24 hrs, ending 7 a. m.

Total precipitation since Jan. 1 ...... Excess since Jan. 1

7 a m.

.20 5.53 sreahieean. tains sais 2.44

MIDWEST WEATHER,

Indiana—Generally fair in north, mostly cloudy in south portion tonight and tomorrow; probably rain in extreme south: much colder tonight and in extreme south: east portion tomorrow.

Illinois—Generally fair in north and central; unsettled in extreme seuth portion tonight and’ tomorrow, considerably colder tonight; rising temperature in north and west-central portions tomorrow afternoon.

Lower Michigan—Generally fair tonight and tomorrow. much colder tonight and in north portion tomorrow.

Ohio — Cloudy and colder preceded b rain in extreme southeast portion tonight; tomorrow fair, colder in central and east portions.

Kentucky—Cloudy and colder preceded by rain in extreme east portion tonight; tomorrow cloudy, colder in east portion.

WEATHER IN OTHER CITIES AT 7 A. M. Station Weather Amarillo, Tex d, 2093 Temp. ismarck, Boston Chicago ...... Cincinnati . . Cleveland .....,.... enver .. ese .Cl Dodge city. Kas. d Helena ont, -:....... Cloud, Jacksonville, Fla, Clouay J

Chicago Garment Co., Inc change of address to LaF

3t. Argos; | | } Wash

ENDOFU.S. TAX EXEMPTION MAY HIT ROOSEVELT

IN. Y. Could Levy on Pay;

Downey Drafts $100 Pension Plan.

By LEE 6. MILLER ~ Times Speci 1 Writer

(Flynn, Page 16)

——— WASHINGTON. Feb. 2. — President Roosevelt might be forced to pay several thousand dollars a year if Congress enacts the Doughton Bill ending the tax immunity of public salaries.

The bill, introduced this . week pursuant to the President’s request, would apply the Federal income tax to all officials and employees of State and local governments, and would permit the states in turn: to tax Federal salaries. The President already pays a stiff Federal tax on his $75,000 salary. If the Doughton Bill passes, and New York promptly takes advantage of it, tax experts here say that as a legal resident of that state Mr. Roosevelt will have to pay its income tax, which ranges from 3 per cent up to 8 per cent.

Voie Due This Week

The Ways and Means Committee, of which Rep. Doughton (D. N. C.) is chairman, is expected to vote on the bill this week. Some authorities hold that Congress has no right to let the states tax the Presiaent’s salary, since Article II of the Constitution forbids diminution of a President’s pay during his term of office. But Mr. Roosevelt himself has asked Congress to end tax exemption on public salaries “of all kinds,” so he isn’t expecled to invoke the Constitution to protect his own purse. The President, and ieading Government lawyers, contend that the 16th amendment “meant what it said” when it authorized Congress to tax income '“from whatever source derived,” and that Congress also has full power to let the states even things up by taxing Federal jobholders.

$100 Monthly for All Over 55 Proposed

WASHINGTON, Feb. 2 (U. P.).— Senator Downey (D. Cal.), advocate of California’s “ham-and-egg” pension plan, said today that he would ask Congress to provide $100 per month “social dividends” for all .retired citizens over 55 years of age. Mr. Downey, Democratic primary winner last fall over former Senator McAdoo with the backing of the “$30-Every-Thursday” group, outlined in an interview the objectives of his pension proposals. He declined to discuss details, which he said would be incorporated in a bill to be introduced in the Senate after further study by €économists. Meanwhile, Rep. Sheppard (D. Cal.) told the House Ways and Means Committee that a 2 per cent gross income tax proposed in the General Welfare Federation pension plan would produce annual revenue of seven billion dollars. Testifies at Hearings Testifying at hearings on proposals to revise and broaden present, social security laws, Mr. Sheppard, House floor leader for the Federation’s “$60 at 60” plan, said such a tax would have produced $7,247,340,000 on basis of national income in 1936, Rep. Doughton (oD. N. c), who as chairman of the House Ways and Means. Committee is an outstanding Congressional fiscal expert, questioned Mr. Sheppard closely. He asked whether the tax might mean bankruptcy for many businesses operating on a small rgin of profit. “It all depends on the survival of the fittest,” Mr. Sheppard replied. Under questioning by Reps. Buck (D. Cal) and McCormack (D. Mass.), Mr. Sheppard said he formerly was Congressional floor leader for the Townsend organization but split with that group because of “conduct by the nationgl leader and certain leaders in its [national offices in Chicago which proved to me that the organization was not functioning on what I analyzed as an honest basis.”

REPORT WILLIS GIVES UP IDEA OF CONTEST

Friends Say He Still Feels He Was ‘Counted Out.

By DANIEL M. KIDNEY Times Staff Writer WASHINGTON, Feb. 2.—Raymond E. Willis has definitely decided not to contest Frederick VanNuys’ seat in the United States Senate, according to word brought directly from Mr. Willis to Republican friends here today. However, the Republican Senatorial candidate still feels, it was said, that he was “counted out” in the November election which Senator VanNuys won by the margin of 5197 votes. Official returns gave Mr. VanNuys 788,386 and Mr. Willis 783,189. Mr. Willis’ decision is said to have been a direct result of his secret visit here last week to learn the

” | procedure involved in taking the

matter to the Senate. He conferred at that time with Chairman John D. M. Hamilton of the Republican National Committee; Senator McNary, Republican floor leader, and Senator Townsend, Republican Senatorial Campaign Committee chairman. The latter two are said to have given him little encouragement and the report is that he decided to abandon the idea when informed that the Senate would not bear the Preliminary expense of an investigaon.

Instead of a challenge now, the Indiana Republicans intend to make the alleged ballot-tampering an issue in the State’s 1940 campaign, Mr. Willis’ friends here declare. Will Irwin, Columbus capitalist and Republican national Commit-

if |teeman from Indiana, is credited de

Rep. Melvin Mans

NAZIS REPORTED FORTIFYING ISLE

Maas Declares Germany Now Active Few Hundred Miles From Guam.

WASHINGTON, Feb, 2 (U. P.).— An assertion by a member of Congress that Germany is fortifying one of the Japanese mandated Caroline Islands increased today the controversy .over proposals to establish an air and naval base at Guam, only a few hundred miles from the Carolines. Rep. Maas (R. Minn.) told the House Naval Affairs Committee that a Nazi air base was being constructed on one of the Caroline Islands and said his information “indicates that Germany and Japan must have a military alliance.” The committee is considering the bill of its chairman, Rep. Vinson (D. Ga.) to authorize 12 new United States bases, including preliminary work on Guam at a cost of five million dollars. Rep. Maas said his information was “more than mere rumor.”

NAZI PRESS LOOSES STORM OF ANGER

Rome Brands Roosevelt as ‘War Monger.’

(Continued from Page One)

velt’s shameless war mongering and presumptuous declaration that ‘America’s frontier lies on . the Rhine,’ ” Der - Angriff said. “This shows the world that the President '.éannot be“ considered as spokesman for his people.”

bine,

Places Italy’s | Frontier in Panama

ROME, Feb. 2 (U.P.).—The “defensive frontiers” of the GermanItalian axis must extend “to the Panama Canal” as a result of the policies of President Roosevelt, the

authoritative Fascist editor, Virginio Gayda, declared today. “It is evident,” Gayda continued,

“that Mr. Roosevelt himself is seek-

ing>and wishing for the possibility of armed conflict.” The Fascist press assailed Mr. Roosevelt as a troublemaker and “an incorrigible war monger.” “Mr. Roosevelt proclaims himself the defender of the democracies and affirms that the United States frontiers are in France,” Tevere said. “Mr. Roosevelt's warlike attitude,”

frontiers are along the Maginot line.”

Europe Blazons News of U. S.

LONDON, Feb. 2 ((U. P)— Europe ‘ blazoned President Roosevelt’s views on the arms situation today as a new factor of incalculable importance in its tense political situation, In Great Britain, and particularly in France, the President’s move to aid the European democracies to rearm was hailed as a contribution to. the restoration of a: balance of power—a contribution calculated to slow the march of the dictators and perhaps save the world from war. In Paris it was even suggested that the reported: statements of the President to the Senate Military Affairs Committee at a secret White House conference, caused Premier Mussolini not to_make his customary vigorous speech to the Fascist militia yesterday on the occasion of its anniversary. Discussion of the President’s reported remarks, and ef the implications of his policy, coincided with a special meeting of the British Cabinet today on rearmament. Both Great Britain and France are arming urgently, particularly as regards airplanes. But there is considerable doubt in some quarters in both countries as to the prospect of their reaching the racing pace which Germany and Italy have set. It was expected that this question would be the big feature of all government armament discussions for many weeks to come. Officially inspired articles are appearing in British newspapers assuring the public that British airplane production may ‘be on a par with Germany's soon,

French Commentators Like Attitude

PARIS, Feb. 2 (U. P)—A majority of French commentators today hailed President Roosevelt's attiude toward Europe as a tangible move toward abandonment of isolation and an -entry into European affairs. a The Petit Journal and’ the Populaire were virtually alone in

headlined Messagero. “United States

Move to Force Public! Hearings on F.D.R.’s ~ Foreign Policy.

4 1 (Continued from Page One)

the public. The secrecy element has precipitated a dispute which is teetering toward another historic White House-Senate clash on.foreign affairs. Senator Austin (D. Vt.), acting as spokesman for the Republicans, said his colleagues would insist that planes be sold to any or all nations in the interest of “true neutrality” and expansion of American trade, and that the public be given a chance to speak before the Government’s foreign policy becomes crystallized. : ‘We Are Not Fighting , ..°

“We are not fighting a war of ideologies in shaping our foreign policy,” he said. “Our objective is peace, and we wish to remain at peace with the totalitarian as well as the democratic nations.” In addition to Mr. Austin, the group which met last night comprised Senators Nye (N. D.), H, Styles Bridges (N. H.), Chan Guerney (S. D.): and Rufus: C. Holman (Ore.). They would indorse a program tc allow all nations equal opportunity to buy American-made planes with the following restrictions: 1, Priority to the United States on all new devices. 2. Legislation allowing cancellation of any contract if and when it proved injurious: to the United States. 3. All sales to be made on a cash basis. Other Factors Involved Mr, Austin said that he, peérsonally, was sympathetic toward allowing the President to discuss foreign

seeret, subject to the Senate's responsibility to ratify any agreements or treaties. "A dozen or more factors relating to foreign affairs precipitated the current Senate controversy. But on the surface it was a protest against secrecy concerning President Roosevelt’s support of world democracies against aggressors. Politics definitely is ‘not “stopping at the water’s edge.” Criticism of the President is mostly from Republicans or from Democrats already at odds with the Administration. The protest has not enlisted the support of any numerically large group of Senators, nor is there any sign that it will. Senate uproar over secrecy, under which one of its committees was compelled to hear an explanation o: why new types of American fight: ing planes may be sold to France, reflects suspicion regarding exten} to which the Administration will aicl European democracies. It merely is another angle of the dispute precipitated when the President submit. ted a naval report proposing to fortify Guam. The issue of secrecy, However, may be disposed of quickly tomorrow when the Military Affairs Committee considers a motion by Senator Clark (D. Mo.) to open to the public the inside story of the plan to arm France in the air—at the expense of the French Government. The five Republicans and at least two Democrats on the 18-man committee will vote for Mr. Clark’s motion. It was recalled here that the Senate’s famous rebellion against President. Wilson’s League of Nations began after the Senate Joreign Relations Committee was summoned to the White House for conference—just as Senate Military Affairs committeemen were called in Tuesday. |

VATICAN CITY, Feb. 2 (U.P) Osservatore Romano, official Vatican organ, took vigorous exception in an editorial today to Fuehrer Hitler's reference to religious liberty in pres-ent-day Germany in hip speech of "| Monday. After listing 10 points on which the church must take issue with Herr Hitler, the editorial, one of the most strongly worded since formation of the Nlome-Berlin axis, said: “Liberty has lost all meaning in the ecclesiastical and religious field in the Third Reich.”

LOYALIST PREMIER GIVES PEACE BASIS

Lays. Down Thr Three Points That Must Be Met.

' PERPIGNAN, Feb. 2 (U.P.)—A three-point peace basis laid down by Premier Negrin of Loyalist Spain raused hope today that international efforts might be made to end tke Spanish war by negotiation. Addressing the Loyalist Parlie.ment, in a historic abbey near Figueras last. night, Premier Negrin emphasized that the Loyalist Government would fight not only for

the end, added that the Goverrment had always sought a peaceful solution of its problems.

for any peaceful solution acceptable to the Government,” he continued. “First, a guarantee of the independence and sovereignty of Spain. Secondly, freedom from all foreign influences and a free life for the Spanish people. Thirdly, no persecution of the civil population and no reprisals.” Meanwhile, armies of Generalissimo Franco closed in on Gerona today with announcement that wey had captured and occupied town of Berga, on the a Catalan front, 5

LONDON, re. 3 2. ‘w.

warning that the President’ ported stand should be treated:

to open national defense hearings to :

policy with a Senate Committee in |:

central Spain, but for Catalonia fo]

“Three guarantees are necessary|

OFF RELATIONS WITH HUNGARY

Action Taken Because of Anti-Communist Pact, Moscow Declares. MOSCOW, Feb. 2 (U. P.).—An

official announcement today said fhe Soviet Union had severed for-

{mal direct diplomatic relations with

Hungary. The action was taken because of Hungary’s adherence to the Anti

Communist accord among Germany, Italy and -Japan, the announcement said. . Recently Hungary advised the munist bloc that she was adhering the Rome-Berlin-Tokyo axis in Eastern Europe. Reports from Berlin had indicated that Czechoslovakia A,was eventually expected to adhere to the Anti-Comintern Treaty and that, when and if the Frnaco armies ‘|triumph in Spain, the Rebel regime to be established there would also join.

Closing It's Embassy

The severance of relations with Hungary was announced in an officials communique which added

embassy at Budapest. The Soviet also is asking Hungary to close its embassy in Moscow, the communique said.

Carpatho-Ukraine, the easternmost province of Czechoslovakia, recently has been the scene of frontier fighting between the Czechs and the Hungarian Magyars and also the center of agitation for creation of a “Greater Ukrainia.” The idea of a new Ukrainian state, generally attributed to Nazi influence, has been aimed at slicing territory from the frontiers of Po-

1land, Rumania and Russia with the

vast Soviet Ukraine scheduled as the backbone of the proposed new state.

SHANGHAI, Feb. 2 (U, P.).—Two Norwegian ships and one British, detained by the Japanese south of Tsingtao, were understood today to have been released.

Five Russians Are Reported Killed

TOKYO, Feb. 2 (U. P.).—The Domei News Agency reported today from Hsinking that 100 Russian soldiers penetrated Manchukuo 60 miles northeast of Manchuli, and that in the resultant fighting five Russians were Killed and ’ three wounded.

MOSCOW, Feb. 2 (U. P.).—The official Tass News Agency reported today that clashes on the SovietManchukuo borer are being more frequent. The most serious recent clash, Tass said ,was on Jan. 31 when a Soviet frontier patrol of five

machine gun fire by 17 JapaneseManchuguan soldiers who occupied an island in the Amour River belonging to Russia.

commander were founded, the dispatch said. !

TRIPLE CRASH VICTIM DIES

juries received yesterday when an automobile in which she was riding was involved in a triple collision south of Rochester.

Strauss Says:—

The SALE

tot... These

three members of the Anti-Com-.

to their accord, thus strengthening |

that the Soviet Union is closing its |b

men was attacked with rifle and

Seven Japanese |and the Soviet

In Guam Debate. Sell Planes to All Nations, G. O.P. Senate Bloc Insists; ~ Crash Touches Off ‘Explosion’

SOVIET BREAKS

| Younger Men in Upper House Lead Debate = On French Deal.

By THOMAS L. STOKES . Times Special Writer 3 . 2.—The

WASHINGTON, Feb. bombing plane which spiraled down near Los Angeles, sending a test

that his injured passenger was. &

here to buy: warplanes, has set off an explosion that may affect vitally the course of American foreign policy.

another airplane accident. But now the Senate, that hogy which broke Woodrow W heart by rejecting the Ver les Treaty and its League of Natidbns, has fixed its grip on the subsequent revelations that the Administration was secretly assisting the French plane-buyers, and that this help is to be interpreted as lining us up with France and England against Germany and Italy. There were shouts of “this is the road to war” as the Senate took its first opportunity to debate the matter after the President had talked to members of the Senate Military Affairs Committee and sworn them to secrecy.

Sale Itself Is Legal

The debate did not strike so much at the sale of planes to France, for as Senator Barkley (D. Ky.) pointed out, there is nothing illegal about this. It revolved chiefly about the

secrecy surrounding matters which the critical Senators argued should ns hn to the people, particularly” since it was just such involvements which eventually led us into the last war. The Kentucky Senator bore the brunt of the attack. Other Demo< crats did not rise to defend the Administration, The Senate burst of oratory was carefully planed in advance. The objectives, as they developed ‘in the debate, are three: 1. To force the President to “take the country into his confidence” and reveal his policy. 2. To opén up the record of the Senate Military Affairs Committee on its recent hearing of Secretary of the Treasury Morgenthau and Army officials regarding the bombe ing plane being tested at Los An. geles; the Treasury’s role of contac agency with American manufac turers, and President Roosevelt's own instructions on co-operation to heads of other Government depart< ments. 3. To open up for inspection the operation of the two billion dollar stabilization fund, through which the Treasury deals in foreign exchange, to discover if this might be used to assist France and others in financing piirchases © of war supe plies here.

Sopnisiers in Lead

Three younger members are ace tive in the Senate’s publicity drive, Senator Lodge (R. Mass.) introduced a joint aesolution which would request Secretary Morgenthau to tell about stabilization fund operations, which Mr. Lodge says might very easily be used to depress certain foreign currencies and boost others, lor even be manipulated so as to finance purchase of war materials here. The Treasury has denied the fund is being used to finance such purchases. Senator Clark (D. Mo.) is taking the initiative to force publication of the Senate Committee record. He will move at the committee’s meet~ ing tomorrow that this be done.

LOGANSPORT, Feb. 2 (U. P.). —| Mrs. Myrle A. Fountaine, 42, died in a hospital here last night of in-

Prices!

1.00, 51.65,

Senator Nye (R. N. D.) made & gesture. by announcing he would withdraw from Senate Military Afe fairs Committee session until the committee adopted a policy of open hearings. He says he will not be a | party to secret deliberations on mate- | ters of policy. :

PAJAMA is- on!

And people are uring

. as per custom.

only more so!

are the Sale

{In the $I 65 Sale

group are plenty of "Noblets.")

v ngs ; are beyond

pilot to his death and disclosing =

member of a French commission = |

It seemed, at the moment, just :