Indianapolis Times, Indianapolis, Marion County, 4 March 1939 — Page 3

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“Arrests ......

! Seventh New Deal Year Begun With Democtats in Conflic Opponents of Spending Rally

‘VanNuys Joins Harrison In Demand for Aid To Business

" WASHINGTON, March 4 (U. P).

—President Roosevelt returned

the capital today on the sixth anniversary of his first inauguration to confront a Democratic rebellion in Congress. Conservative Brancerats are speaking against the Administration and in behalf of business: They demand speedy economy, assurances

' against further reform, more care-

ful selection of Presidential appointees to responsible office. Before delivering an address to a joint session of Congress at noon commemorating the 150th anni- “ versary of the first Congress, Mr. Roosevelt - will follow his annual March 4 custom and attend church services at St. John’s Episcopal Church, across Lafayette Square from the White House.

Speaks to South

- ‘There, as on each previous anniversary of his first inauguration, the President, accompanied by members of his immediate family who are here, will pray for divine guidance in the administration of his duties as chief executive. Mr. Roosevelt arrived at the White House at 9 a. m. after a two weeks’ cruise with the U. S. fleet in the Caribbean. His special train was

"met at the Union Station by a

group including Mrs. Roosevelt, Treasury Secretary Morgenthau, Postmaster General Farley, Commerce Secretary Hopkins, Agriculture Secretary Wallace and Assistant Secretary of State Francis B. Sayre. The President returned to the mainland yesterday from his seagoing vacation and in a press conference at Charleston, S. C., raised one of favorite New Deal battle shouts—that the South is the nation’s No. 1 economic problem and should be remedied. He said the South suffered from lack of purchasing power and observed that an increase in wages in the South and a 50 per cent boost in purchasing power would aid that area and the nation as a whole.

Some Lieutenants Rebel

The times are in a sharp contrast’ to the blustery March of 1933 when Mr. Roosevelt brought a nation cheering to its feet with a promise to remember the forgotten man. Some of the front rank rants of that inaugural occasion are leading the conservative Democratic rebellion today. Vice President Garner] then was about to enjoy his own inaugural in the Senate Chamber. Now he is the master strategist in opposition to the New Deal program of the man he still refers to as “Captain,” or “The Boss.” Chairman Harrison (D. Miss.) of the Senate Finance Committee is on the firing line and the anti-New Deal front is expanding. Senator VanNuys (D. Ind.), one of the conservatives who survived the 1939 Roosevelt purge, and Senator Byrd (D. Va.) have joined up for the duration of the war. Barkley Defends New Deal But the President is not without defenders. Senate: Majority Leader Barkley (D. Ky.) observed the sixth New Deal anniversary today with a tribute to the man in the White House. He recalled the desperfite economic plight of the nation in the winter of 1932-33 when banks were folding, the army of unemployed suddenly a national menace, food riots reported from North and South and a ragged army of bonus-seek-ing veterans but recently driven from the ‘capital by gas, horse, foot and tanks “Mr. Roosevelt rode out the storm by ‘brilliant leadership,” Senator Barkley said. “The nation has given

its wholehearted indorsement tol;

these. splendid reforms and no po-

* litical party will ever dare propose

their repeal.” But immediate dissent sounds from conservatives who contend that New Deal policies are prolonging business difficulty. Senator Hagrison opened the barrage with a demand for Government

IN INDIA NAPOLIS

Here Is the Traffic Record

County Deaths Speeding .. ive 30

(To Date) Rec Hes

driving .... 2

Running preferential streets .... 11 Running red lights

—_— Drunken driving | 0

Others oofenee 11 MEETINGS TODAY

Painters and Paperhangess © Conference and Dinper Hotel Severin— elta u Delta porshern Péivision conference, Columbia "Club, all day. Indiana pal Symphony 0 Orchestra, coner cei pat an Hotel Hotel {a

Accidents .... Dead

5

m. luncheon, meeting,

Francaise, Washington, noon.

G! AssUeiation,, Was hington, 7:30 p MARRIAGE LICENSES

(These lists are from official records in the County Court House. The Times. therefore, is not responsible for errors in . pames and addresses.)

Jam McMurray, Ave.; $ocie S. Cooper, 39, of 1828 calm,

* K. Kommnick, 40, of 44 S. Pe Hilda Arquette, 34, of 2029 College

"Cia ay McClure, 51, 3504 Evergreen Ave.: Edna Poehler, 48, of 308 N. Hamilton Ave. “Frank T. V Horn, 32, of 1226 Comer Ave.; Lula Bell, 26, of S228 Comer Ave. Edward L. O'Nan of Fulton, Ky.; Mary Jones, 38, of iE

BIRTHS

: Girls Harl, Virginia Day, at St. Vincent's. -Arnol ary Royer, at St. Vincent’s. a Joseph, Mary Campbell, at St. Vincent's ‘Cullen, Roberta Barnes, at St. Vincent's. ‘Randle, Earline Draper, at Sir Drue. Faun'el Goss. at St. Veld . Ruth Deon. i #3539 Union.

Boys

45, of 4120 Spann Mont-

M. gt i

1, Ruby Thomas, at St. vancent's, conti Lois Allfrey. at St. nt's. ea Esgt her Henn, at bos “Vincent's

emuel, Leola Palmer, at C iam, Margaret Neville, at Sty. Harry, Grace Hill, at St. Fran Albert, Mary Morrison, at St. nels bls, Lou e Duh. at I

Coleman. Coleman.

.j reforms.

eve... 17 |monia.

nn. {pneumonia

NATIONAL AFFAIRS

CONGRESS celebrates its 150th anniversary with speeches.

ROOSEVELT'S anniversary ‘finds Democrats in revolt.

HARRISON economy policy held unlikely of achievement.

BUDGET cut of 10 per cent would save half billion.

GARNER keeps vow to Bod his

| (Page

kay! in S APPEASEMENT

Gongressman Hopes Move To Aid Business Is More Than Gesture.

By DANIEL, M. KIDNEY Times Staff Writer - WASHINGTON, March 4. — Rep. John W. Boehne Jr. (D. Ind.) member of the tax subcommittee of the House Ways and Means Committee which handles ‘all tax measures, urged today that the new Administration “appeasement” policy be made something more than a mere gesture of good will. “I hope that the trial balloon sent up by the Secretary of the Treasury and the Secretery of Commerce will not be shattered by electrical disturbances when. my committee sees fit to male definite recommendations looking toward the removal of those punitive taxes that have nampered business during the past two years,” Rep. Boehng said. “As a member of the tax subcommittee, I am anxious to get te work on this problem immediately. not to hold out an olive branch, but actually to do something constructive so that .the co-operation between government and business. which we have known in the past. will again be fully established.

economy and followed up with & joint statement with Chairman Robert L. Doughton (D. N. C.), of the House Ways and Means Committee, proposing & study of taxes looking toward repeal of levies deterring business. Senator VanNuys snapped: that

Observers Pessimistic on Possibility of Much Real Economy.

By THOMAS L. STOKES Times Special Writer

WASHINGTON, March 4.—The economy crusade of Senator Hafrison (D. Miss.) attracts lip service

at the Capitol, but there is private skepticism as to any material resulis in the immediate future. Most Senators and House members agree that they, like the Senator, are unable to suggest where and how to start cutting. Some concede their own blame in the numerous appropriations they are sponsoring. If these were all enacted, they would really break the Treasury. Even Senator Harrison has his pet spending bill, a measure for subsidizing education. - It calls for a total of 872 million dollars in six years, beginning" with 72 million dollars next year and increasing each year into 1945. : Florida Canal Bill Talked

{ Reminded of this measure, the Senator explained that he had refrained from introducing it this year, an dthat while he regarded it as more worthy than some other projects he was willing to join with others in Tedycing such proposed expenditures. The education bill is sponsored. in the Senate by Senator Elbert Thomas (D. Utah), who said in the foreword that it was introduced “for himself and Senator Harrison.” It

is currently the subject of public

hearings. This is merely one example of the pet projects embodied in pending bills. A House Committee is considering a bill for the proposed. Florida Ship Canal, to cost eventually 170 million

begin similar hearings next week. This and ‘the Passamaquoddy project in Maine were recommended for further appropriations at this session by President Roosevelt. A bill for 500 million dollars more for PWA projects has just been introduced by Rep. Joe. Starnes (D. Ala). It has the support of Rep. Clifton Woodrum (D. Va.), a leading. member of the House Appropriations Committee and one of the most outspoken advocates of economy in Congress. He led the recent fight to knock 150 million dollars off the relief bill. Flood Bill Fight Looms Soon the House will consider a bill for | various flood-control projects. Army engineers recommended 195 million dollars, which the Presi-

“heckling American businessmen and foreign dictators” has helped! neither domestic nor international conditions. He said business must be reassured and that assurances of a definite and stable Government program is what businessmen want rather than a “breathing spell.” Senator VanNuys proposed these steps to reassure business: 1. Repeal the undistributed gorporate surplus tax and anend / ‘the capital gains tax. 2. Assure that the Go emment would not pile up new and untried

3. Curtail Government spending. 4, Exercise more care ir placing men in crucial Federal offices. Senator VanNuys protested Mr. Roosevelt's nomination of former Rep. Thomas R. Amlie, lame duck Progressive from Missouri. to the Interstate Commerce Coramission. He said Amlie two years ago introduced in the House a resolution for a Constitutional amendment to “socialize all business, marufacturing, commerce, industry and banking and confer powers upon the Federal Government which are unsurpassed in any or all of the totalitarian governments of the

e Senator urged that Mr. velt withdraw the Amlie nomn. Senator Byrd joined the chorus with a warning that eight more years, of spending would swell the national debt to 75 billion dollars. He said Congress would not honor any Administration request to increase the present limit on the na-

‘lars.

tional debt from 45 billion to 50 billion.

Kenneth, Evelyn Gray, at 1049

Elm, | 2 Anth ony, Mary Floreaacig,

1024 N.

DEATHS William H. Munz, 20, at Methodist, influenza. > James Caldwell, 74, City, broncaopneu-

Fanny Jenner Bailiff, 84, at 4808 Central,

infuen ond L. Walker, o> at 5755 N. Pennsylvania brain tum : Mary © areili, 68, at City, bronciopneu-

es Cnderwood, 57, at City, lobar pneumons. 56, at 1506 E. 18th,

lobar pneum Mary Margaret Willlams, 84, «t 1307 Brookside, peritonitis. Sarah Cloyd 56, at 932 Paca, coronary occlusion. Katie. ‘Keogh, 179, at Central ./ndiana Hospital, ATEioseIerosse Mary ‘Bell Wiethe, 7 ‘at 415 N. Chester,

influenza. K M. Holland, 50, at 212¢ Park,

coronary embolism Claire E Jackson, 35, at St. Vincent's, pulmonary embolism Albert Rutter Wade, 69. at 12:3 LeGrande, carcinoma. ary Fiances Milton, 65, at 2313 N. Gale, carcinom eorge W. MSteele, 78, af 1043 Russell, rt losers: Schn: opel. 50, ati 1417 New Jersey. A pneum Hogy Curtis Brannon, 52, at 1116 W. New York, carcinom

ge Tmadean Be Reading, 15, at City’ acci-

Elma Harvey, 53, at Long. carcinoma. canine L Lackey, 66, at 608 N. Delaware, apie | ay Wicolal, 64, at 2333 Farker, C: Joseph P. Hoy, 86, at 626 Douglas, betes mellit Susannah Sosbe, 37, at City, broncho-

ia-

INCORPORATIONS

Sharp & Dohme, Inc., Maryland corporation: admitted to Indiana to sell pharmaceutical and biological products. hio Finance .Co., Ohio corporation: change of agent to_Jacob S. White, Merchants Bank . Indianapolis i Reem ployt. Way ne;

Sei Inc. 2517 S. Washington St.. Marion; resident = agent, ohn A. Hardesty, same address; capital stock, 2000 shares no par value: real estate and construction: John A. Harcesty, Bertha M. Hardesty, Robert K. Hardesiy. position Assn,, syne, amendment chan ing Bn ‘to Allen County Fair, Speedway and Industrial Exposi-

tion. Inc. Calumet Paving Co., Indianapolis: amendment of ar res of gheortoration, Mishawaka Studebaker S: & Service, Inc., South Bend: than zing name 5 S. and a Illican Oil Corp., Illinois Corporati ion; admitted to Indiana to deal in petroicum New Corydon Telephone Co., New Corydon; reorganization: capital stock, 200 .|shares of $20 par value. Sora alty, Inc

nve: Allen County Fair ahq Industrial ExInc., we Hel

Boulevard San Fri agent, K.|8

dent’s budget cut to 110 million dolAlready Republican Congressmen who shouted much about economy during their campaigns are beginning to organize to increase this amount. . In the Congressional mind, generally speaking—and there are notable exceptions—economy begins with the other fellow and the other state, but if two or three blocs can get together and form a combination which would put all their projects over, that often is done. The process is known as logrolling. Recently New Englanders contributed votes for additional TVA dams and Southerners reciprocated by supporting appropriations for New England hurricane relief and salvage. The Senate is most often the offender in upping budget estimates. It increased a bill for grasshopper control from $3,300,000, as recommended in the budget, to $6,417,000. The House previously had voted only two million dollars. The House added two million dollars to a three million dollar item in the budget for venereal disease control, on pleas from state health departments.

Roosevelt Signs

Extension Bills

WASHINGTON, March 4 (U. P.). ~The White House announced today that President Roosevelt has signed bills extending the lifé of the Reconstruction Finance Corp., the Commodity Credit Corp. and the ex-port-Import Bank.

real estate: K. poyerield, George E. Weidlich, Vera we idlic Jefferson County obs Will Conservation Club, Inc., 1105-N. Walnut St., Madison: no capital stock: to_ promote conservation o ¥ Roy Cranford, 14 liam old nk rd,

rozier ‘Torrance, Louis H Freudenstein, August M. Riehl, Roy Server.

| OFFICIAL WEATHER lm: By U. 8. Weather Bureau

INDIANAPOLIS FORECAST: Occasional rain probable tonight and tomorrow; somewhat colder tomorrow. Sunrise ........ 6:14 | Sunset ........ 5:40 TEMPERATURE —March 4, 1938—

Precipitation 24 hrs. ending a. m, Total precipitation since Jan. Excess since Jan. 1

MIDWEST WEATHER

Indiana—Occasiona! rain probable tonight and tomorrow, except Rossibly. turning to snow in extreme Dord portion tomor:ow, somewhat Solder central and north portions tomorrow

Illinois—Qccasional rain probable tonight and tomorrow, except rain or snow in ettreme north portion tomorrow; colder in central and north.

Lower Michigan—_Probably snow in north and rain turning to snow in south portion jonis ML a oro; somewhat, colder T n west an jomarTow at north portions

Ohio—Rain tonight and tomorrow - ably changing to snow in north A tomorrow; colder tomorrow and in extreme Jorn portion tonight; much colder Mon-

.00

Kentucky—Intermittent rain toni mth Sh Buran ech So At r in nor - morrow; much colder Monday. Portion 30

' (WEATHER IN OTHER CITIES AT 7A. M.

Qaaokuang

QAAONON o

* “woe ~

dollars, and a Senate Committee will | ye

Nearly 500 Republicans rallied

OHIO GOVERNOR TALKS T0 GROUP

Claims Republican Victories In 1940 Would Bring Economic Recovery.

(Continued from Page One)

payrollers at a savings of $2,500,000 to $3,000,000 to the taxpayers and, he added, “the story is not half told et. ” “I say to Indiana Citizens that unless the Republican Party is able to save the taxpayers money and do an honest job of it, and stop increasing the burden of government; on private citizens, our party might as well let tke other party continue to make a mess of it and not even try to get into office.” :

Calls G. O. P. Victory Essential Republicans must win in 1940 iu

work, return prosperity to the nation, return. fair prices to the farmers and check Communism in this country, Mr. Capehart declared in ‘his speech. “We can win if we will forget ourselves and start to think about the good of the nation,” he said. “1f we want to win in 1940 we must start now to create goodwill for the Republican Party and rededicate the party to the American people and to the American principle of government.” State Chairman Bobbitt praised the editors for their part in the Republican victories in the State last fall. He also commended the 51 Republican members of the House and the 16 in the Senate for their party loyalty in the State Legislature. “They are going to cut the budget,” he said. “Whatever good comes out of this Legislature, the people of Indiana will owe it to the Republican ‘61 Club’ and the 16 Republicans in the Senate.” He appealed for continued support of the Republican editors for “victory in 1940 so great they can’t count us out.” Mr. E. Willis paid a tribute to M. W. Pershing, 90, retired editor of Tipton, who is the sole surviving charter member of the Indiana Republican Editorial Association. Mr. Pershing was presented a testimonial certificate in recognition of his half century membership in the organization.

SEEKS TOBIN'S AID FOR LABOR PEACE

President Set to Appeal to C.l.0.and A. F. L.

(Continued from Page One) off the A. F. of L-C. I. O.-Labor

‘|Board battle in Congress, which the

A. F. of L. is trying to force now. To meet the emergency some of the President’s advisers want to trade with Mr. Green on Labor Board personnel—whether for the existing board, or a new one, to be determined afier the peace conference. This explains in part the paradox of Mr. Green’s friendliness to the peace conference gnd his action: in bombing it yesterday with the new Board amendment. But there are more potent reasons. . - One is that the C. I. O. has smeared the original Green-Walsh amendments as “antilabor” measures almost to the point where they are too sticky for friendly Senators and even the A. F. of L. progressive minority to handle.

Fear Complex Noted

Moreover, most of the A. F. of L. strategists think that the Supreme Court blows have seriously weakened the Labor Board and C. I. O. for the moment, and that therefore the A. F. of L. should engage the enemy on this’ victorious front now instead of risking all on the Roosevelt conference where defeat is possible. Of all the difficulties sprouting around the parley, perhaps the most insidious, and hardest for the President to control, is this fear complex of the Green group. They seem to be afraid of losing their shirts to the faster Lewis-Murray-Hillman team. " Hence the President’s frantic effort to get the mighty Tobin back

33 (In the A. F. of L. lineup. !

Roosevelt Plans

New Labor Appeal

WASHINGTON, March 4 (U. P.). —President Roosevelt was revealed today ‘to be planning a new and more ‘ vigorous appeal for labor peace when six A. F. of L. and C. I. O. representatives begin another atemp to settle their three-year-old 5) . Mr. Roosevelt personally will talk

Hotel last night for the Indiana Republican Editorial Association’s 61st meeting. Shown at the speakers’ table are Poster W. Riddick, retiring association

order to return 12,000,000 men to|

at the Claypool Grace Reynolds,

State. :

mitteewoman, and James Tucker,

Hints of New Envoys To Moscow and Burgos Given.

WASHINGTON, March 4 (U. PJ). —The State Department today revealed that Claude Bowers, American Ambassador to Loyalist Spain, has been ordered home for consultation, presumably as a first move by this * Government toward possible recognition, of the Franco regime. At the same time it was unofficially revealed that Laurence A. Stein-

i |hardt, U. S. Ambassador to Peru,

will be named American Ambassa-

® dor to Russia in the near future.

Times Photo.

president; Governor John W. Bricker of Ohio; Mrs.

Indiana Republican National comSecretary of

4

Where Now? Itinerary of Bricker Lost

Governor John W. Bricker of Ohio today faced the pos= sibility of a three-month vacation from speaking engagements but offered a reward to prevent it. ‘ Governor Bricker, who spoke to the Indiana Republican Editorial Association here last night, lost his briefcase in Columbus, O., he ‘told police. It contained a list of his schedule between now and June and “without that schedule I don’t know where to go,” he complained.

FD. R., HUGHES PRAISE LIBERTY

Speak at 150th Anniversary , Of U. S. Congress’ First Session in 1789.

(Continued from Page One)

govern their own country has not been abridged, but has been broadened and strengthened.” The addresses were delivered in the Chamber of the House of Representatives in which both Senate and House had assembled in joint meeting. Cabinet officers, Supreme Court members, ranking Army and Navy officers sat in a specially reserved section of the Chamber. Galleries were jammed with members of the diplomatic corps, newspapermen, wives and friends of Congressmen and the general public. The gathering was in strange contrast to the initial assembly of scattered Representatives of the 13 struggling states in a New York Federal hall 150 years ago.

External Effort Stressed

Mr. Justice Hughes emphasized that external effort is required if democracy is to be preserved. “Forms of government, however

well contrived, cannot assure their own permanence,” he declared. “If we owe to the wisdom and restraint of the fathers a system of government which has thus fer stood the test, we all recognize that it is only by wisdom and restraint in our own that we can make that system last. “With respect to the influences which shape public opinion, we live in a new world. Never have these influences operated more directly, or with such variety of facile instruments, or with such overwhelming force. We have mass production in opinion as well as in goods. “Our institutions will not be preserved by veneration of what is old, if that is simply expressed in the formal ritual of a shrine. The American people are eager and responsive. They listen attentively to a vast multitude of appeals and, with this receptivity, it is only upon their sound judgment that we can base our hope for a wise conservation with continued progress and appropriate adaptation to new needs.” . Congress Praised

Mr. Justice Hughes paid tribute to the manner in. which Congress has functioned as a democratic legislature. “We shall do well on this anniversary,” he said, “if the thought of the people is directed to the essentials of our democracy. Here in this body we find the living exponents of the principle of representative government—noi government by direct mass action, but by representation which means leadership as well as responsiveness and accountability. “Here, the ground-swells of autocracy, destructive of parliamentary independence, have not yet upset or even disturbed the authority and responsibility of the essential legislative branch of democratic institutions. “If our checks and balances sometimes prevent the speedy action which is thought desirable, they also

END TESTIMONY IN GAS BATTLE

Court to Decide Later if City Bound by Lease of . Predecessor.

(Continued from Page One)

tiff, Chase National Bank of New York, and the Indianapolis Gas Co., listed as a defendant.

Special Master Asked

The motion also asked appointment of a special master in chan-

"|cery to ascertain the costs and ex-

penses of the City utility, and that these costs be assessed against the

Chase Bank.

The motion was taken under advisement. Mr. Thompson continued his efforts to show cause for dismissal of the complaint on the technical grounds that Federal Court has no jurisdiction in the complaint. The suit was filed by the Chase National Bank of New York, trustee for Indianapolis Gas Co. bondholders, when the City upon taking over the Citizens Gas Co. in 1935 declined to accept the lease. The lease, calling for annual payments of about $580,000 to Indianapolis Gas Co. bondholders, was executed in 1913 when the Citizens Co. took” over the operating property of its competitor, the Incdianapolis Gas Co.

Admits Suggesting Suit

Through questioning of William R. Higgins, a director of and an attorney for the Indianapolis Gas Co., Mr. Thompson endeavored yesterday afternoon to prove his contention that the ‘Indianapolis Co. should be a plaintiff in the case instead of a defendant. If he should be sustained in his contention, there would be no Federal Court jurisdiction, because in that case there would be’both a plaintiff and a defendant residing in the same State. Hy Higgins admitted that he had suggested to the Chase bank that it file the suit to protect the interest of the Indianapolis Gas Co. bondholders, and that he had collaborated in the preparation of a complaint for the- hank. Mr. Higgins was recalled to the

ing in regard to his and the Indianapoliy Gas Company’s connection with the preparation of the com-

Burns Directs Bank’s Case

The bank’s case was directed by Howard F. Burns, of the Cleveland law firm of Baker, Hostetler, Sidlo & Patterson. This firm formerly had been employed by the Indianapolis Gas Co. in the preparation of an opinion on the. validity of the lease. Thé Indianapolis Co. released the law firm in order ‘that it might bring the present suit on behalf of the Chase National Bank. Among those testifying yesterday were Paul C. Beardslee, an executive of the Chase bank; Brodehurst Elsey, a director of the Citizens Gas & Coke Utility, and Frederick Matson of the law” firm of Matson, Ross, McCord & Clifford. Mr. Beardslee, on cross-examiga-tion, admitted that Mr. Higgins had suggested that the bank bring the suit in which Mr. Higgins’ company was named a defendant. Mr. Matson and Mr. Elsey testified in regard to the sale of CitizensiGas & Coke Utility securities.

assume in the long run a more deliberate judgment. And what the people really want, they generally get. “We not only praise individual liberty, but our constitutional system has the unique distinction of insuring it. Our guarantees of fair trials, of due process in the protection of life, liberty and property— which stands between the citizen and arbitrary power—of religious freedom, of free speech, free press and free assembly, are the safeguards which have been erected against the abuses threatened by gusts of passion and prejudice which in misguided zeal would de-

stroy the basic interests of democracy.” . :

SAVINGS CITY-WIDE

to She delegates. at a white House |

J Member Federal Resetve S

i” letcher Trust Company

COMMERCIAL BANKING

* TRUSTS BRANCHES

witness stand for further question- |

Mr. Bowers, who has maintained headquarters at St. Jean de Luz on

‘the French border since shortly

after the Spanish civil war began,

{sailed for home on the liner Queen -|Mary today.

Officials would make no comment on Mr. Bowers’ return other than confirming that he was ordered home for consultation, and would make no comment whatever on possible recognition of the Franco -1 regime. The Embassy in Moscow and the Soviet Embassy in Washington have

_ |operated without the presence of

Ambassadors for nearly a year, and it has been reported that Soviet authorities have believed that the United States has purposely permitted the vacancy to continue.

Russo-Japanese Clash Reported

TOKYO, March 4 (U. P.).—A newspaper dispatch from Hsinking, Manchukuo, reported today that Russian and Japanese-Manchukuan border guards were fighting sporadically on the frontier near Manchuli and that 11 Russians had bgen killed so far. The dispatch, published in the Independent-Liberal Asahi, asserted

chukuan border guards.

SHANGHAI, March 4 (U. P.).— A Domei (Japanese) News Agency dispatch from Hsuchow said today that Japanese troops had occupied Haichow, which the Chinese had used as their headquarters for Kiangsu Province.

French Envoy to Raise

Troop Removal Issue

PARIS, March 4 (U. P.).—Marshal Philippe Petain, France's new ambassador to: the Spanish Government of Generalissimo Franco will raise the question of removing Italian troops from Spanish territory as soon as he reaches Burgos, Gen. Franco's temporary capital, probably late next week, it was understood today. There seemed hope here that by the time Marshal Petain reached Burgos there would be some sign that Italian troops were about to leave. But it was understood that there was considerable anxiety over Italian references to the necessity for a final “political” victory before the troops were withdrawn. Great Britain named her Ambassador to the Franco Government—Sir Maurice Peterson, Ambassador to Iraq. The Spanish civil war fronts were quiet but the troops of Gen. Franco were preparing to attack Madrid if the Loyalists elect to continue resistance. It was understood that they probably would mass 500,000 men in the Madrid area. Jose Felix Lequerica, Mayor of Bilbao and staunch opponent of the Spani ‘republic from its inception in 1931, was accepted by France today ‘as Spanish ambassador to this country.

that the fighting started when 100] Russians attacked Japanese-Man-

; Hitler Names Schacht To Lead Trade Drive; ‘Bowers Called Home

Goering Goes to Italy: For Several Weeks’ ‘Vacation.’ -

(Continued from Page Onc)

within the next few weeks with a number of trips to European nae tions, particularly Rumania, where recent British and French economic moves in a territory which Berlin regards as within the Nazi orbit, has caused misgivings here. German counter-moves already have started with a trip by Dr. Helmuth Wohl . rhat to Rumania to negotiate for an increase of oil exports to Germany.

Trip to South America Talked According to Nazi industrial circles, ‘Dr. Schacht will negotiate for debt and credit settlements such as already had been started when he recently visited Switzerland for private talks with officials of the Bank for International Settlements. The importance which Fuehrer Hitler must attach to the new as= signment for Dr. Schacht may be gauged by his own words to the Reichstag on Jan. 30, “Germany must export or perish. ” Today’s disclosure recalled the ree cent, announcement that Dr, Schacht would make a trip to South America. The trip was described at the time as purely personal and une official. Dr. Schacht in the past few days

{has been preparing the ground for

trips abroad in talks here with German industrialists and exporters as well as some foreign industrialists.

Exports Slump Sharply

According to reliable sources, Dr.\ Schacht’s new task—which was! foreshadowed in the announcement of his removal from the Reichsbank —will make him" Herr Hitler's personal adviser and confident on exe

port trade and economic questions,

similar to that which Baron Konstantin von Neurath occupies in

foreign affairs.

The critical condition of Reicha exports which Dr. Schacht will be charged with combating is revealed by the fact that the Nazis them= selves admit Germany in 1939 must

‘tincrease sales abroad by at least 115 per cent over last year if she is

to avoid serious restrictions on im-

+ | ports.

Germany’s three most important export industries—chemicals, coal and textile—suffered a severe slump last year compared to 1937. Exe ports of chemicals showed a de= cline of 13 per cent, coal-about 12 per cent and textiles about 17 per cent. In Nazi eyes this is futther aggravated by what they claim. is the unreasonable . attitude of Britain and France in not permitting the Third Reich to have a complete monopoly of trade with Central and Southeastern Europe. :

Cautions Democracies Not to Misinterpret Pope

ROME, March 4 (U. P.).—Virginio' Gayda’s Giornale d'Italia, which often speaks for Premier Mussolini, today cautioned the democracies against interpreting His Holiness Pope Pius XII's broadcast appeal for world peace as support for their retention of “illegitimate possessions.” In an apparent veiled attack on France, where the election of Cardinal ‘Pacelli was hailed as a blow to the dictatorships, the Giornale d'Italia said 'the kind of peace to which the Pope intends to devote his energies “is as he himself stated

2

a peace of justice.”

amounts.

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