WEATHER
Fair tonight and Friday, with
rising temperatures tomorrow.
GOOD AFTERNOON
Liquid bank* never got that
way by dealing in watered stock.
VOL. 52—No. 130
wmam
SINGLE COPIES, FIVE CENTS
>^—1^———1^—^
Business Of Nation Shows Upswing In May
IMPROVEMENT
IN SOME MAJOR
LINES BROAD
Stock Turnover Exceeded
Only Five Times
in History
railwayTarnings
DECLINE IS HALTED
By MAX BUCKINGHAM
United 1 ress Financial Writer
(Copyright lt)'?3 by United Press)
NEW YORK, June 1.—iUP).—
American business swung forward
steadily as May books were closed
yesterday.
There was nationwide improve
ment in some major industries.
M»ch as the steel trade, to the
point. Where operations may be
profitable for the first tine in two
or three years.
As business stepped up, interest
in commodity and security markets
increased. The New York stock
exchange for the month of .May
had the greatest trading activity
since April, 1930, and the month's
business was exceeded by only 5
months in history. In all there
veiel0-1.213.954 shares exchanged
in sessions which saw trading at a
maximum of more than 7.000,000
shares and the ncv: high speed
tickers operating well behind the
markets.
On the basis of on average price
ranging between $10 and $25 per
share, the month's business on the
exchange totaled more than $2,
000.000,000. Of this stock brokers
gained more than $20,000,000 in
commissions. This increased busi
ness was indicated in bonuses to
employees—two stock exchange
houses today declaring bonuses—
and additional employment. Esti
mates were made that employment
in "the Street* was the highest
yesterday of any day in more than
two years.
uttier niarKeis enmyen ihmmu
days as business improvement
joined with speculative fever.
Wednesdays list of business im
provements included:
All non-ferrous metals advanced
in the spot market. Lead prices ad
vanced 20 points fo 4-10 cents per
pound. Zinc prices advanced to
4."5 to 4.40 cents per pound ea*t
St. I.ouis as against 4.15 to 4.20
rents per pound Monday. Wire
companies advanced price* or
bars and waterproof wire by 1-8
cent per pound and on magnet wire
1-4 cent per pound.
The United l*ress index on cash
prices f.»r 30 commodities advanc
ed to a new hitrh for the year at
91.70, which is approximately 3?
per cent greater than the level on
March 3, the day preceding the
bank holiday.
Steel output odvanced to more
than 40 pe.- cent—the figure at
which many companies cjin operate
at a profit. Iron age estimated the
output at 41 per cent and said
May bookings for several com
panies were greater than any
month since 1030 with tin-plate
production at 00 per rent. Wacres
may increase. American metal
market estimated ingot production
at 42 per cent of capacity.
The Worth Street (New York)
cotton market showed tremendous
activity with many traders refus
ing quotations.
R. H .Macy and company. New
York department store, reported
that June merchandise purchases
will be $1,000,000 greater than
any month since June, 1928, and
the company will use 10 per cent
more daily newspaper advertising
(Continued on page four)
AVERY ORR !S
LAID TO REST
Brother of City Police Of
ficer Passes Away at
Oteen Hospital
Avery Orr, age about 35, died
at the government hospital at
Oteen yesterday. The deceased
was a disabled World war vet
eran. The funeral is to be in
charge of J. M. Stenp & Son and
was being held at Pacolet, S. C.,
this afternoon at 3 o'clock.
A group of ex-service men and
several city officials from here
were in attendance.
The deceased is survived by a
son, Billy, about two years of
age; also one brother, Everette
Orr, a member of the local police
force; two sisters, Mrs. Arthur
Staton and Mrs. Lillie Morris,
both of the Tracey Grov« seetion.
[ Widow Is Slain:
Son, 17, Sought
Bait .uacuonaui, auove, n, i«
! soujrht on a warrant for the
! murder of his wealthy widowed
i mother. Mrs. Grace MacDonald,
below. Mrs. MacDonald was found
slain in her home .it Flint. Mich.
!! 1 FUGITIVES
! ARE AT LARGE
i
Run Gauntlet in Bad
Lands; Search Today
Is Futile
I MIAMI. Okla., June 1.—(UP).
: Posses searching for 11 fugitives
from Kansas slate penitentiary
| combed known hideouts in Osage
! badlands without results today.
Eleven escaped convicts ran a
J gauntlet of police and volunteer
possemen last night. seeking the
| shelter of the Ozark badlands.
One man had been killed, two
j wounded, seven persons kidnaped
1 ami dozens of robberies commit
ted since the convicts escaped
from the state prison at Lansing,
Kas.. during a Memorial Day
baseball game.
Trap after trap had failed to
day to catch the outlaws and they
were reported to have been seen
at widely scattered points appar
ently heading for the hills where
they mi«rht elude capture for
years. Peace officers were re-en
forced by posses of armed cow
j boys and aroused citizens.
NEGRO SENTENCED
DURHAM. June 1.—(UP).—I
Theodore Cooper, negro, was1
sentenced to death in the electric
1 chair yesterday after conviction
in the "insurance murder" of J.
i N". Lasater. Will H. Hessee, Dur
ham furniture dealer, accused as
an accessory, was sentenced to
life imprisonment.
EARLY SIGNING OF 4-POWER
TREATY STILL ANTICIPATED i
WITH NEW REVISION CLAUSE
By THOMAS B. MORGAN v i
United Press Staff Correspondent'
ROME. June 1.—(UP).—An
article calling for early revision
of the treaties ending the World
j war was included Wednesday in
j the four-power pact designed to
assure peace in Europe for ten
| years, subject to French approval.
The drafters, working on a
! new copy of the pact to be signed
j bv Italy, France, Germany and
Great Britain, restored this arti
I cle. despite definite opposition to
I it by France and members of the
little entente—Roumania, Jugo
' slavia and Czechoslovakia.
Article 3, dealing with disarm
ament, was removed, it was
learned, because this subject will
be dealt with in another agree
DELEGATION
TO ECONOMIC
FARLEY SAILS
Hull and Associates Have
Task Much Like Wilson's
15 Years Ago
PREPARATIONS FOR
MEETING ELABORATE
By JOSEPH H. BAIRD
United I're^s Stuff Correspomh nt
ABOARD SS PRESIDENT ROO
EV'ELT. Juno 1.— (UP).—The
American delegation to the world
economic conference departed for
London yesterday with high hopes
of .shaping order anil prosperity,
from the. chaos into which the
world's trade an.I money has
fallen.
Secretary of State Hull, chair
man, and his colleagues sailed
fiom New York at p. ni. after
a last journey by rail from Wash
ington.
Stacked away in bulging brief
cases in the cabins of delegates
was a store of economic data,
gathered painstakingly over many
months. This was the ammunition
with which the delegation plans to
attack its three-point objective:
1. To stabalize the world's
currencies so that the dollar,
pound, franc anri other units will
have a constant value in terms of
each other. By so doing, the
American buyer or seller of
merchandise abroad may be re
lieved of the uncertainty of
whether he will lose or gain money
on long-term transactions due to
sharply fluctuating currencies.
2. To lower tariff barriers,
thus permitting goods to flow more
freely from one country to an
other with a gain in world trade
and shipping.
•>. i «> riu^c pni'es uiu'uuiumil
the world, so the producer may
make a profit, pay his debts and
buy goods from others.
The delegation expects to ar
tive in London June 8 four days
before the gathering of more than
50 nations there for a frontal at
tack on the depression.
With Hull and his four col
leagues of ihe delegation were a
group of experts—"the slage
hands of diplomacy"—whose spe
cialized knowledge of finance, tar
iffs, and trade will be summoned
to solve the intricate problems
arising at London. They have
spent many weeks at the state de
partment in Washington prepar
ing for their work.
Further preparation for the
task at London will be made by
the delegates and advisors in con
continued on page 4.)
Naming of Hoover
At Morgan Probe
Said 'Outrageous'
NEWr YORK, June 1.—(UP).
Appearance of Herbert Hoover's
name in the Morgan inquiry at
Washington was characterized asi
"outrageous" yesterday by Kd-i
gar Rickard, reouted business
representative of the former)
president.
"Information from Washing-'
ton." Rickard said, "states that I
had a participation in the United I
corporation. This is true. My
participation was entirely a per-'
sonal matter of my own. and it is
outrageous to attempt to capital- i
ize my association with Mr. Hoo-I
ver to drag his name into this
matter."
nient to be based on the British
arms readjustment scheme.
All the other nations in the
"Big: Four" have agreed to the
treaty revision clause, and France
was expected to come around to
their point of view, with possible
reservations. The clause would
only be effective through the
League of Nations, under the new
draft, a gesture designed to ap
pease Paris.
Plans for initialing the four
power pact in Rome today pro
ceeded. despite disquieting news
from Paris. '
The foreign affairs board in1
the chamber of deputies in Paris
was said in Paris -dispatches t.to'
have voiced renewed hostility 'to I
(Continued on page 4.)' '
J[ <
Jelke Fails to
Divorce Wife
F. Frazier Jelke, above, 53-year
old broker, spent a small fortune
to divorce Mrs. Eugenia Wood
ward. Jelke. 27-year-old nieee oi'
the late Senator Oscar Under
wood of Alabama. She contestedj
the divorce in a trial held at
Newport, R. I. The trial judge
last night withheld divorce from
both parties.
Official Ceremony Entire
ly Lacking as Profes
sional Career Closes
FORT BENNJNG, Ga., June 1.
(UP).—With no official parade
and no ceremony whatever, Ma
jor-General Campbell King, com
mandant of the infantry, school
at Fort Penning, bade farewell
to the members of his staff laie
yesterday prior to his retirement
from active military life at mid
night last night.
Closing the desk from which,
for over four years, he has con
trolled the activities of the world's
largest school of arms, General
King told his staff he did not
want to interfere with the duties
of the camp, where thousands of
civilian conservation corps men
are assembled now.
It was believed to be the first
time that a U. S. Army general
had retired from active duty1
without a ceremony of some na-(
tu re.
General King left Fort Benning
early today by automobile for his
home near Charleston. S. C.
French Chamber
Takes a Recess
No Early Prospect of Pay
ing Debts to U. S.
PARIS, Juno 1.—(UP).—The
chamber of deputies adjourned
until June 9 after passage of a
budget indicating there is no
early prospect of France paying
her war debt installments.
The jrovernment of Premier
Edouard Daladier survived a par
liamentary crisis in the chamber
of deputies last night during de
bate on the oil monopoly ques
tion.
Daladier, who has fought for a
compromise on the monopoly
question, posed the question of
confidence in his regime and was
accorded a favorable vote of i»59
to 200.
The Daladier compromise calls
for the appointment of a commis
sion to study Ihe features of the
monopoly question.
PAPER IS SOLD
WASHINGTON. June 1. (UP> |
The Washington Post was sold at,
auction today for $825,000. Geo.
E. Hamilton, Jr., lawyer, declined
to disclose whom he represented
in submitting the highest bid. 1
! Angry Debate Boils Over
and Johnson of Califor
nia, Pours Wralh Upon
Veterans Administration
WASHINGTON. June 1.—(UP) I
—Death stands on the doorstep of J
many veterans whose compensa- j
tions were redueed by President !
Roosevelt's economy act, it was |
charged in the senate yesterday, j
as angry debate boiled over the '
independent offices appropriation j
bill.
The measure carries a $490,
000,0!0 appropriation for veter
ans' compensation, a figure which
is about one half of what the ex-1
service men were allowed before
President Roosevelt and budget
director Douglas began lopping ex
penditures off of the federal bud
get.
In the van of yesterday's rally
against the administration was
I Senator Johnson. Repn., Calif., a
progressive who bolted the He
publican ranks last fall to support.
Mr. Roosevelt's candidacy for pres-!
ident. He exonerated the president!
of personal responsibility for what;
he called the injustices to veter
ans, but he poured out wrath
against the veterans bureau in the
: most angry speech he has made
since he led the fight against
(.America's entrance into the Lea
gue of Nations.
A wrong: lias been done to
many of these men and you know
it," Johnson shouted to the senate,
his face reddened with rage. "Let's
right this wrong before the re
gaining nine days of the session
iof Congress end. If not, we will
'know that after July I we have
[killed many of these men.
"I make this protest because 1
have received mail such as I never
want to read again .in my life. A
law consists of words anil phrases]
•and clauses, but when it comes to
interpretation it must be read with
a heart. And that has been the
trouble with this measure. There
has been no heart in the reading
of it."
The attack—joined by *uch
staunch administration supporters
as Senator McAdoo, Dem., Calif.—
came at a time when the White
House had just announced it would
appoint an independent commis
sion to study the veterans cases
and make adjustments where clear
instances of injustice were found.)
McAdoo said the reason he vot-1
ed for immediate payment of the )
soldiers bonus when it was brought,
up and defeated in the Senate re-1
cently was that he was trying to f
(Continued on page six)
DAVIS URGES !
ARMS ACTIONI
More Disarmament Less |
"Procedure" Ameri
cans Stand
GENEVA, Juno l.—(UP).—
Norman H. Davis appealed to the
disarmament conference today for
[nfore disarmament and less "pro
cedure", on behalf of the United i
States.
Overriding objections by the J
United States, the preliminary
arms conference yesterday pro- i
ceeded with plans to adjourn dur- j
ing the world economic conference,
opening at London June 12.
The steering committee of the
general commission of the con
ference decided to adjourn the
preliminary sessions after the first
reading of a draft convention.
The committee would adjourn
June JO, or thereabouts, until June
27, giving Arthur Henderson,
British chairman of the general
commission, the power to extend
this adjournment another three
weeks.
The United States had opposed
any adjournment until draft of an
arms limitation treaty had been
agreed upon.
The steering committee decided
to ask that the general commission
recommend the British draft of
such an arms convention as the1
basis for a world arms conference 1
discussion on a final arms pact.;
This committee would remain in [
Geneva in an attempt to rewrite j
the British convention while the i
commission was adjourned, and I,
negotiate a settlement of numer-1
ous problems yet unsolved.
ROOSEVELT IN
PLEA AGAINST
CASTE VIEWS
Pride of Profession Neces
sary to Making of a
Good Officer
IS HINDRANCE, SAYS,
IF PUSHED TOO FAR
ANNAPOLIS, Juno 1.— (UP) —
A»i appeal that they break down
the traditional barriers of profes
sional caste and look eye to eye
with the nation on its vital prob
Jems was delivered to the gradu
i»t in«i" class at the Naval Academy
today by President Roosevelt.
"Esprit de corps pride of the pro
fession is as delightful and im
perative an element in the making:
of a good officer as it is in the
making of a good professional or
business man, but when it is car
ried to the point of assuming that
only the holder of an Annapolis
commission or a diploma or the
possessor of a college degree is a
valid member of the aristocracy of
life, it becomes a hindrance in
stead of a help to your fellow
citizens. "So I ask you to avoid an
exclusive relationship to your own
clan—to the clan of the navy or
some other special government
service or clan of your profession
or of your civil life.
"This barrier of caste exists not
alone in'your own class or pro
fession—but in the average run
of folks—the folks you would
have known, liked and would have
affiliated with had you not been
chosen to enter and graduate from
a highly specialized institution of
higher learning.'"
Find Two Bombs
In Mukden Today
One Aimed at Jap "Good
Will" Mission
MUKDEN. Manchuria, June 1.
(UP). — Two crudely-fashioned
bombs exploded on the grounds
of the British consulate here and
another bomb was found at the
railroad station, apparently timed
to explode on the arrival of the
Japanese "good will" mission.
PEIPING, June 1.— (UP).—
An armistice between the Chi
nese and Japanese forces design
ed to restore peace in China and
halt the invading Japanese armies
outside Peiping and Tientsin was
signed Wednesday at the meeting
of representatives of the Chinese
and Japanese military high com
mand and civil authorities at
Tangku.
The terms of the armistice were (
understood to include:
J.—The Chinese agree to the
establishment of a neutral, de
militarized zone between Peiping
and-Tientsin on the south and the
Great Wall on the north.
2.—Protection of the Japanese |
army of occupation during the
interim.
These terms were unofficial,
and reported from the Japanese.
The Chinese indicated that;
while they were willing to sign i
an armistice assuring peace in |
the north, the discussions on the j
st.atus of the occupied areas and j
the status of Chinese troops
would be among the major points
prolonging negotiations.
The Japanese were understood
to be demanding that China rec
ognize Manchoukuo, formerly
Manchuria and now a puppet
state controlled by Tokyo.
Middies' Cheers
Were for Her
Middies at the U. S. Naval Acad
emy at Annapolis, Mil., gave three
cheers of approval when Miss
Virginia Thompson, of Baltimore,
stood beside Midshipman Krnest
Lee Jahncke, Jr., who chose her
for "color girl" at pre-gradua
tion ceremonies as pictured here.!
Jahncke is the son of the former'
assistant secretary of the navy. |
STATE DRIVER!
LICENSE URGED
Lieut. Beck Tells Kiwanis
It Is Principal Hope
to Cut Accidents
A state-wide drivers' license is I
perhaps the only legislative meas- :
ure that could be employed to re-|
duee materially the number of
traffic accidents in North Caro
lina. Lieutenant R. H. Beck of
Marion, divisional head of the
state highway patrol, told tho
Kiwanis club in an address Thurs
day at the Skyland hotel.
"In cases of conviction for!
reckless driving, the judge must I
now suspend the driver's right to j
drive a car for at least 30 days, r
but he can with comparative safe
ty from re-arrest go to another
county and again drive a car,"
Lieutenant Beck said. "Under a
drivers' license law. his card
would be taken up and he could
not obtain another for use any
where until the period of his sus
pension had ended."
The program was under the di
rection of Edw. R. Sutherland,
chairman of the public affairs
committee, who cited North Caro
lina figures showing that of 303
automobile accidents in March,
25 female drivers and 303 male
drivers were involved.
"You can't kid the women for
being careless," he said.
H. R. Frymoyer, state patrol
(Continued on page four)
JAP GOOD WILL ENVOY SAYS
HE FINDS MUCH IN COMMON
FOR STRONGER FRIENDSHIP
NEW YORK, June 1.—(UP).
Destruction of treaties must be
forbidden by the League of Na
tions if the league is to function
adequately. Viscount Kikujiro
Ishii, chief of the Japanese dele
gation to the world economic con
Terence said in an address yester
Jay.
Viscount Ishii spoke first at a
luncheon given in his honor by
Japanese Consul General Herin
?ught. In another speech last
light before the Japan Society of
\Tevv York, the former ambas
sador stressed the traditional
friendship between his country
.ind the United States and paid
:ribute to President Koosevelt.
The league, Viscount Ishii said,
must forbid 1:reaty_breaking just
as the league covenant forbids
military aggression. Japan with
drew from the league over the
Sino-Japanese dispute over Man
churia.
The economic boycott, such as
that directed against Japan by
China, should be branded as an
act of economic aggression and
punished as such, he said.
He pointed out that the league
covenant does not prevent nations
from breaking their treaties, tho
it provides for punishment of
military aggression.
Destruction of treaties, in Vis
count Ishii's opinion, should be
outlawed by the Kellogg pact.
(Continued on page 4.)
MORGAN FIRM
PARTNERS TAX
IS ESTIMATED
Pecora Reveals His Pro
gram to Senate Commit
tee in Closed Session
SENATOR REYNOLDS
AIDS IN QUESTIONING
WASHINGTON June 1.—(UP).
—Paper profits of $152,508,000
to J. P. Morgan and Company and
his individual partners in securities
of the United Corporation was re
vealed today in the Senate Morgan
inquiry.
This figure represented paper
profits on common stock and op
tion warrants of the United Cor
poration.
George Whitney, Morgan part
ner, was a witness at the time.
He estimated the cost of the se
curities at $;i0,00<),000. L. A.
Keyes, Morgan office manager tes
tified that partners of the firm
paid more than $22,000,000 in
come taxes in the vears 1927
28-29.
Secretary of the Treasury Wil
liam Woodin, whose resignation
has been demanded in congress,
again topped a "preferred list"
of prominent persons who were
given an opportunity by Morgan
& Co. to purchase stock at $75
which later sold for $99 a share,
revealed by the hearing on Wed
nesday.
The stock was that of United
Corporation, mammoth Morgan
holding: company which controll
ed 22 per cent of the nation's
electric power.
Revelations yesterday included:
1. J. P. Morgan & Co. mado
a profit of $8,290,045 from sal»
of 200,000 of 1,714,000 option
warrants issued thru it for $1 per
warrant when the United Cor
poration was organized. The war
rants sold on the market at a
top price of .$4 7.
2. Ferdinand Pecora, commit
tee counsel, figured that J. P.
Morgan & Co. would have made
n profit of $08,000,000 had it
sold all the warrants it received,
to which estimate George Whit
ney, Morgan partner, agreed.
3. J. P. Morgan, by a verbal
agreement, effective in June
1928, purchased for $23,683,975
from the General Electric Co. on
January 10, 1029, securities of
the Mohawk-Hudson Power com
pany. which on the date of pur
chase had a market value of
$35,533,200 nearly $12,000,000
more than the sale price. This
was preliminary to organization
of the United Corporation.
Committee members and spec
tators followed with interest in
attempt by Senator Edward P.
Costigan, Democrat, Colorado, to
identify the name of Edgar
Kickard, who was on the li.st of
'preferred" purchasers of United
Corporation submitted yesterday.
"Is that the Mr. Kickard v ho
is reputed to be a representative
jf ex-President Hoover?'' Costi
gan asked.
"I don't know," Whitney re
plied, adding that he did not
*now Rickard personally.
Another senatorial name was
added yesterday to the "prefer
red" customers when the United
Corporation list showed the firm
of Kean and Taylor, investment
blouse, of which Senator Hamil
ton J. Kean, Republican, New
Jersey, is a member.
The United Press also learned
that Owen J. Roberts, United
States supreme court justice, is
an the United Corporation list
ivith Drexel and Co., a J. P. Mor
gan & Co. Philadelphia branch,
which has not yet been made
(Continued on page six)
i to aims
Whowsote
The (owen"
o
What is the
CHIEF METAL USED IN
MAKING* NBVSftPEft
ENGRAVINGS ?
WHO INVENTED THE
' HCMNG PICTURE
PROJECTOR?
For correct answers to then
lUMtioas, pl«|M turn t« pt|« 9i