Oakland Tribune from Oakland, California • Page 1

Exclusive 2ssociacd PressSf Service afetattd OAKLAND AND VICINITY Rain tonight and Friday; clearing Friday afternoon; moderate temperature; fresh, southerly winds. fc Temperatures yesterday. 48, min. 40 RAINFALL CHABOT OBSERVATORY. 24 hours ending at 7 a.

AS Season to date 8 00 Normal to date 12 .57 Last year to date 17-96 umtcarcss Consolidated Press Association VOL. CX VIII THREE CENTS, SUNDAY TEN CENTS OAKLAND, CALIFORNIA, THURSDAY, JANUARY 26,, 1933 28 PAGES NO. 261 OITV Xl-rJ ITl AAA llAAKAA igaJBsV 111 Mrs. Belmont, ILL Spirit Will Battle Turns To Discussion Of Divorce $500,000,000 Relief Program O.K.'d by Senate Committee; Britain to Limit Debt Parley DE VALERA'S PARTY VICTOR IN ELECTION Measure Carries Out Suggestions of Roosevelt R.F.C. Gives Report on Loans Made 10 MEET STATE DEFICIT AIRED Scheme Provides Land Shall Bear Only Half the Cost Of County Government Levying of Gross Income Tax on All Incomes Over $1000 a Year Proposed SACRAMENTO, Jan.

26. The Legislature today was offered a new plan for balancing the budget and placing State and county revenues on a revised basis definitely attuned to governmental needs. The plan, promulgated by State Controller Ray L. Riley and the State Board of hquiliza-tion to meet the situation caused by discarding of the administration urogram lor balancing the budget, and th prospects ot a MMKXI deficit for the Statedunng the next biennium, is basesiBfcthe follow ffl '-tne present ate 1 and county systems of taxation 1 Levying of a gross income tax 2 on all personal and business incomes in excess of $1000 a year. 1-Limiting to 50 per cent the pi a portion of cost of county gov ernment to.be borne by real estate and other common, property.

T-Return of public utilities' prop-4 erty valued at $1,000,000,000 to $1500,000,000 to county rolls lor county r-'T of 5 Relieving coumica.ui thP school tax burden. r-Limiting to five per cent tne annual increase in siw local taxes." The plan, which takes the form nf a proposed Constitutional i- t-i ut urn- amendment, is i ponents to afford greater tax re-' lief to common property than any other measure yet proposed. 1, sponsored in the Senate by Senators Jen-old Seawell Placer. Will R. Sharkey, Contra Costa, Edward H.

Tickle, Monterey: An-drert L. Pierovich, Amador Brad ford Crittenden, San Joaquin, Bert B. Snyder, Santa Riley. Inyo; Leonard J. Difani, Riverside.

MAY BE SUBMITTED AT SPECIAL ELECTION. Is up to the Legislature, say proponents of the plan to say whether the measure will be submitted to the people at a special tn balance tne election in 1933-35 State budget and at the ame time give renei taxes, or whether it shall wait over to the general election oi nuvraiw, 6 Ua maHp hOW- No attempt win ever, to obtain Legislative approval before adjournment iui ure i rr Pririav or Sat- gtituuonai urday, but the recess is expected to afford sufficient time to enlist public support and the necessary backing to adopt the proposal at the latter half of the present session. The proposed constitutional amendment would put the so-called "Amendment No. 1," the basis oi the state's taxation system since 1910 into the discard at the same time it would inaugurate the new tax system. PLAN WOULD LIMIT COUNTY BUDGETS All county budgets would be limited for revenue to only 50 per cent of Ihe amount which might be raised from taxes on real property.

This change, it is claimed, would cut the burden of "common property owners, in half at a single The separate divisions of property as between that which supports county government and that which supports state government would be eliminated, with the exception that 'the state wduld continue to collect revenues from bank and corporation taxes, although at a lower rate than now In effect, from taxes on personal property and intangible property of public utilities, Inheritance taxes, through (Continued on Page 4, Col. 2.) mann I THE NEW Noted Society And Suffrage Leader, Dies Former Consuelo Vanderbilt At Mother's Bedside in Paris When End Comes PARIS, Jan. 28. (U.P.) Mrs. Oliver H.

P. Belmont, the former Mrs. William K. Vanderbilt, a leader of American and European society for years, died early today. Mrs.

Be 1 t's i a er, Madame acque Balsan, the former Consuelo Vanderbilt, was at her mother's bedside. Dr. Edmund Gros of the Amer i an os pita 1, tended Mrs. lmont during an Illness of A several MRS. O.

H. P. BELMONT.m 0 gave the cause of death as heart paralysis complicated by bronchitis. Mrs. Belmont was 80 years old.

Mrs. Oliver Hazard Perry Belmont, who by dynamic forcefulness carried through whatever4 project" she undertook, was one of the most colorful personalities who ever graced the social scene In New York and Newport With a zest that startled the more conservative and stolid elements in the New York society of last century, she swept everything before her in pursuit of her aims. She was born Alva Smith, daughter of a cotton broker, in Mobile, Ala. After her debut in Mobile she was married to William K. Vanderbilt and stormed the social colony at Newport.

BUILDS MARBLE HOUSE THAT COSTS MILLIONS. When it became apparent that she was not thoroughly welcome in the "inner circle, she challenged her opposition with the famous marble house a home that cqat $2,000,000 to build and $7,000,000 to decorate arid furnish. The mansion was given to her by her as a birthday gift. Then cameher romance with Oliver H. P.

Belmont, a sensation of the 1890s. She was divorced from Vanderbilt and married Belmont. She continued her career as nonchalantly as she has begun, it, unconcerned over gossip. After Belmont's death Mrs. Belmont decided to essay a public career.

There were no "idle rich," she said, because no one could be wealthy and remain idle. She plunged into the suffrage movement and for years was one of its foremost leaders. FOUNDS POLITICAL EQUALITY LEAGUE. In 1909 she founded the political Equality League and immediately became a central figure in the Woman's Suffrag movement. At the same time a sofcial and ecclesiastical storm broke over her head because of her work and because of the first marriage of her daughter, Consuelo Vanderbilt, the now Jacques Balsan.

Mrs. Belmont gave up her public career and her residence in America twelve years ago to make her home in Europe, Mrs. Belmont's children, in addition to Consuelo. are Harold S. Vanderbilt and William K.

Vanderbilt Jr. CRASH KILLS 1 Tank Wagon Bursts Into Flames After Hitting Coach Near San Jose SAN JOSE, Jan. 26. One man was killed and a northbound Southern Pacific passenger train was halted in a grade crossing acci dent five miles west of San Jose at noon today. Linden, 27, driver for an oil company, was dead when extricated from the burning wreckage of his tank truck after it had crashed into the train at the Lawrence road crossing.

Linden's heavy truck nearly demolished one of the coaches, plowing between the wheel trucks of the train. The impact inited the tank of gasoline in Linden's truck and it became a blazing mass of wreckage. Ed Lynch, engineer, and Charles Baugh, conductor, of the train, pulled Linden from burning truck. The train was so 'badly damaged that it was unable to continue and an emergency call was put in for another engine and tender. John Ludwig, 26, and Louis Boiligi, 44, two itinerant laborers riding on the train, were burned.

They were taken to the Santa Clara County Hospital and given emergency treatment Their condition was not serious, lrt TIN ASK RECALL OF Announcement Is Made by George Sehlmeyer, Master Of State Organization 'General Incompetence and Utter Lack of Fitness to Hold Is Allegation SACRAMENTO, Jan. 26. The recall of Governor James Rolph on charges of "general incompetence and utter lack of fitness to hold office" will be asked by the California State Grange. This was announced by George Sehlmeyer, master of the grange, to confirm the vote of the executive committee of the organization taken at a secret meetinp last Monday and disclosed late yesterday. Sehlmeyer said he, had gone to Los Angeles following the executive committee meeting and was "surprised at the support the movement will receive." "The charges upon which the recall of Governor Rolph will be asked will Include those of general incompetence and utter lack of fitness to hold office," he said, "coupled with the fact that his administration has run a surplus in the State treasury, into a large deficit.

RECALL HELD PURELY A STATE QUESTION SehlmeyeV said he had talked with Louis G. Taber, of Columbus, master of the National Grange, over the long distance telephone, and Taber had told him the pro posed recall was "purely a State matter not within the concern of the National Grange." He said Taber expressed only the concern that the recall movement should be motivated in the interest of more than 13,000 Grange members in California, and not for "political purposes." Subsequent to this conversation, Sehlmeyer said, he received a telegram from Taber confirming his verbal statements and is now awaiting a letter. "As soon as I receive that letter I will be ready to issue a formal statement setting forth oar position in detail," he said. FRICTION BETWEEN ROLPH AND GRANGE OUTLINED There has been friction between the Rolph administration and the Grange ever since the Governor removed G. H.

Hecke as State director of agriculture and appointed Dudley Moulton, the present director. Administration of the State bovine tuberculosis indeninity fund, now under investigation by an Assembly committee, also has been criticised by Grange leaders. Sehlmeyer said he gave "all reasons why the recall should be held." He said the Grange feels that there is "grave danger of an ad valorem tax that would smash agriculture off the face of the map" in California, and holds the Rolph administration responsible in a considerable degree. sehlmeyer plans for Conference He said he planned to confer with John Hartley, Napa; Harry or han Jose, and W. Loosley, of Pittsville, members of the executive committee, who are all ready to shoot." In order to compel a recall elec tion, petitions must be signed by approximately 166,000 registered voters.

The ballot would contain spaces for a "yes" or "no" vote on a proposition of, whether the Governor should be recalled and names the candidates to succeed him in event the movement succeeds. Such candidates must be nominated by 13,000 signatures of registered voters. Under the law the Governor can not run on the ballot to succeed himself, and the lieutenant-governor must act in his place in all matters pertaining to the recall election. Ruth Judd in Plea For Life Next Week PHOENIX, Ariz, Jan. Winnie Ruth Judd, sentenced to be hanged February 17 for' murder of Agnes Anne Leroi will plead for her life before the Arizona Board of Pardons and Paroles next week.

The board today tentatively set either Monday or Wednesday for a hearing of her application, at the State Prison in Florence. Mrs. Judd's application for a hearing has been pending before the board since January the naming of a date. When she appears before the three men who hold power of life and death, she will have little more than two weeks of time separating hex from the 13 iron steps leading to the gallows. Veterans' Hospital Fire Routs Patients TUPPER LAKE, N.

YV Jan. 26. (if1) Two hundred patients were forced to leave their beds in the Veterans' Administration Building here last night when fire threatened the building. Six patients were carried down ladders. The fire was confined chiefly to the long corridor, but smoke fUied the building.

Damage was estimated at between $50,000 and $75,000. GOVERNOR London Holds Scope Of Conference to Single Issue GENEVA AWAITED English Would Avoid All Topics on Program Of World Meet WASHINGTON, Jan. 26. (IP) Great Britain's acceptance of terms for a war debts discussion was regarded today as having filled in much of the ground that must be built up before President-elect Roosevelt talks with that nation's representative. This attitude was taken generally In many quarters despite the British reservation against deciding in advance of a meeting of all nations to be represented there what subjects should be placed on the agenda of the world economic confertnee.

In the weeks preceding the American meetings in March with Great Britain and other debtor na tions which have paid promptly. other exchanges undoubtedly will take place, outlining in more de tail ideas of and the prospective foreign visitors. The incoming Chief Executive himself had no comment to make at Warm Springs on the British ac ceptance, but he was represented as having well-developed views on the forthcoming debts discussions and the economic conference and being ready to do his own bargaining. BRITAIN WOULD LIMIT DECISIONS TO DEBTS Sir Ronald Lindsay, the British Ambassador, delivered his country's note to the State Department. It said that Great Britain is "happy" to accept the opportunity or a debts discussion and added: "The effect of the debt situation upon a wide range of world economic problems is crucial to every government and In the course of the discussion at Washington on the debt we shall be glad to take the opportunity of exchanging views with Mr.

Roosevelt on those other matters In which the two govtrnments are so closely Interested, "It will be recognized that decisions on matters which constitute the subject of the approaching world economic conference and which affect other states cannot be reached before discussions take place at that conference between all the states represented there." In London this was interpreted as definitely the scope of the l.tlks. It was suggested that Britain does not desire to be too deeply Into any general discussion of world economic problems at that time, ROOSEVELT WOULD BARGAIN AT ECONOMIC PARLEY In this connection it was recalled that those close to Roosevelt have discussed among themselves the idea of proposing a postponement of future debt payments for a period until the new Democratic President has a chance of bargaining at the economic conference for trade concessions and stabilization of foreign exchange which he desires to promote American pros perity. Protection or home Industries by the immediate passage of legislation to restore normal tariffs against countries with depreciated currencies was urged -last night by House Republicans. They acted only a little while -after the assertion was made on behalf of President Hoover that he feels that either the United States must build up its tariff walls to counteract depreciation of foreign currencies or the latter must be re-established. London Would Avoid Eclipsing Later Meet LONDON, Jan.

28. (IP) Great Britain's action in limiting the forthcoming Anglo-American con ference to decisions on war debts onlv tndnv annnrentlv eliminated any chance of tfet Washington par ley eclipsing the proposed world economic conference in London. In official circles it was conceded that Great Britain did not want the scope and purposes of the projected London conference limited, despite President-elect Roosevelt's offer to discuss the general world situation. Premier Ramsay MacDonald yesterday was elected chairman of the forthcoming economic meeting, which cannot be held before this Summer. This was decided yesterday by a preparatory commission which also listed "currency, tariffs, prices and movements of capital as among the world problems to be considered at that time.

Newspapers here received the British restrictions, presented to Secretary Stimson yesterday, with general approval. The London Times said the British reservation was necessary. If also stressed "the necessity" of British representatives going to Washington prepared, not only to state "an overwhelming case" against continuance of the debts payments but also "to suggest some alternate plan on the lines of the Lausanne agreement (practically wiping out German reparations), which might be more acceptable to the United States and in conformity with the two essential conditions defined by Chamberlain at Leeds." Neville Chamberlain, chancellor of the' exechequer, In Tuesday Woman Medium Is Grilled On Why She and J. J. Dickson Separated By ANNE CLARK SAN FRANCISCO, Jan.

26. Astral atmosphere and ghosts vanished before the" more worldly discussion of what led Mrs. Gertrude Dickson and "Rev." J. J. Dickson to get a divorce a year ago, when the battle over Dr.

Frank Bishop's will resumed today in Superior Court. Mrs. Dickson herself, who is fighting to retain the $40,000 bequeathed to her by Dr. Bishop be fore he killed himself last April, was placed on the stand as an "adverse witness" by attorneys representing live sisters seeking to invalidate his will. The testimony descended to an earthly plane as Mrs.

Dickson told about plate-throwing activities Nof "Rev." Dickson which led her into the divorce courts. "Did your husband toss platters at your head?" Attorney Jerry 'Reisner asked her. "He did," Mrs. Dickson responded. "And did he slap you, and curse you, and punch you, and otherwise conduct himself in a cruel manlier toward you?" Mrs.

Dickson replied in the af firmative. GROUND LAID FOR LATER TESTIMONY The examination was regarded as laying the groundwork for later testimony by which the five 'con testants hope to prove to the jury that Mrs. Dickson allegedly pursued a course of conduct designed to win Dr. Bishop as her husband. Mrs.

Dickson related that she was married to "Rev." Bishop ten or eleven years ago in San Jose, and that they separated several times before she finally made their estrangement permanent in Janu ary. 1932. by divorce proceedings. The last separation occurred at Hayward, Mrs. Dickson testified where she.

her husband and Dr. Bishop maintained ranches. "I moved to San Francisco and lived with Dr. Bishop as his housekeeper for three or four months before his death," Mrs. Dickson "We attended seances, went to show, and he took me to dinner two or three times a week.

We intended to wed. Mrs. Dickson described herself as a spiritualist but did not testify concerning any of the seances. She admitted having faith in her former husband "and his work." WITNESS DESCRIBES SPIRIT PICTURES The' witness described the "spirit pictures" previously introduced in evidence as "slate drawings." The constants rested their case after Mrs. Dickson's testimony, and Clifton Hildebrand, her attorney, immediately placed Miss Augusta Corum, 729 Central Avenue, Alameda, on the stand as the first "defense" witness.

Hildebrand created a stir In the courtroom when he told the jury, in an opening statement, that Miss Corum would testify that Oakland police officers themselves draped "Rev." Dickson in a cheesecloth covering when they raided am Oakland seance and arrested him in 1930 as a ghost. Hildebrand sought a dismissal of the case after the contestants rested, on the grounds that no un- (Conlinued on Page 3, Col. 2.) sprWlIights SPLITJf U. C. Legislature Bill Seeking to Separate Berkeley and L.

A. Colleges Criticized Separation of the University of California and the University of California at Los Angeles into two independent institutions is asked in a proposed constitutional amendment introduced into the Slate Legislature today by Assemblyman Charles Dempster, Introduction of the proposed measure brought an instant rejoinder from Dr. Robert Gordon Sproul, president of the university, who is now in Los Angeles. "It is of the utmost importance that there be no separation of the two universities," Dr. Sproul said.

Setting up of separate State universities will mean Inevitably we will have in this state 10 or 15 such institutions, and that we will repeat the serious mistakes that some eastern States have made by such a division. "I will do everything at my command to prevent such a separation. I have talked the matter over with frovost Moore of the University of California at Los Angeles, and he is of the same opinion." A $120,000 share of the annual University of California appropriation for the establishment of a graduate school at the University of California at Los, Angeles is asked in a bill alse introduced by Dempster. A second bill provides for changing the name of the southern college to the "California State University." COMBINATION BILL La Follette, Co-Authors To Push Act Forward To Early Action WASHINGTON. Jan.

26. (IP) i The Senate today authorised "Its' finance committee to make a study of the economic situation as, proposed by Democrats to aid the-Roosevelt administration. i WASHINGTON. Jan. general relief program, understood by its sponsors to carry out sug gestions of President-elect Roosei velt, was agreed upon today by thf Senate manufactures and a report of the measure to the benate was authorized without record vote.

tho combines ie UroDetieigin and the' Cutting bills which had aimed at fern6 the relief prob' LaFollette of Wisconsin and Cutting of New Mexico, Re' Safu who sup-Rnl presidential at Springs nHen, Zith thetic." f0Und him "ynpaf YewbHI direct: granta to the states with a total fund of $500,000,000 to be avail-; by a like sum' the notes, bonds and similar obli-. th eonstructlonI Corporation is authorized to FEDERAL EMERGENCY BELIEF BOARD SET UP 1 Ju eus UP 8 feieral emergency relief board of three members to LSpM.y President, the fvinV lne lying to the Reconstruction Cor agent, what payments are to be made. The combined bill removes th w.S that tht? th chil urea" shall be the board to BAccuuve omcer. After LaFollette and Cutting returned from Warm Springs, they rHR00Sr1Velt's view to Senator Costigan Democrat, Colorado, and nLaUett.e th t0 Emulate a com. bined bill.

The composite measure retains LaFollette-Costigan bill but discards the provision for floating a $500,000,000 bond issue: Provisions making available 40 per cent of the total fund for apportionment among the states on the basis of population are kept in 1 f. along with the stipulation that the payments shall" not exceed two-thirds of the states' relief expenditures from public and private funds. 60 PER CENT SET ASIDE AS RESERVE The remainine 60 nor runt wllh the exception of the $15,000,000 for transient relief and $350,000 for administration, is set aside as a reserve fund to be on the oasis oi neea. Both the transient relief moneys would be adminis- lerca Dy ne states under their own rules and regulations. 4 LaFollette told newspapermen there was no attempt to combine in the bill proposals advocated by Senator Wagner, Democrat, New York, for liberalizing the existing relief machinery, but -added that amendments of this character if of.

ierea on tne senate floor "will be entirely germane." Cutting, commenting on the in! corporation of his transient relief proposals iri the bill, said that if the bill failed of approval he would renew the fight for Federal help in this field by bringing up his bill separately. LaFollette said the combined mewjure would be reported to the flooy as soon as possible and ae tion sought at the first oppoN tunity. 'Agent of Roosevelt I Watched by Paris PARIS, Jan. 26.omPolitical observers are giving considerable attention to the presence in London of William C. Bullittt, whom news, paper reports have described as an emissary ot President-elect Roosevelt, although the British Foreign umce ana tne American Embassy there disclaim knowledge of his presence.

He was in Paris a month ago and left, intending to return after a trip to America, but he has not reappeared here. Woman Has Met the Industrial Test' -And has taken on tha riespon'Mbilities that be-; longed Exclusively to men ten years ago, in spite of her powder and paint, says Dr. Lucy W. wilson, noted Philadel- Khia educator, in the lagazine section of next Sunday's (uy Anti-British Govern ment Gains Dail Majority on Basis of Early Returns Cosgrave Unsuccessful in Attempt to Oust Fianna Fail Party From Power DUBLIN, Irish Free State, Jan. 26.

(yp At 5 p. m. today, as the count of the vote in the general election proceeded. President De I Valera's party had 34 seats in the new Dail, former President Cos-grave's opposition 16, the Indepen- dent party 6, tne (jenter party and the Labor party 2. President De Valera, tnus naa a majority of seven seats over all oth er parties combined.

Counting tne Labor members as his allies, he had ten more than the combined opposition. He may be assured oi election to the presidencywithout needing the votes of any other parties. The 11-anna Fail the party which has fought for complete independence of Ireland has never had a clear majority in the Dail in the ten-year history of the Free State. The Dail elected De Valera presi dent for the first time last March 9 as the result of a Fianna Fail-Labor party combine. VICTC-Y WON BY NARROW MARGIN.

Last February's election of the seventh Dail returned 72 of the Fianna of Cosgrave's party, and seven labor, four farmer and 13 Independent members. De Valera was elected president three weeks later, 81 to 68. The Fianna Fail, however, was strenatheqing its position in all dis-trictSrknd a slump in the Cosgrave strength was indicated. His party has been satisfied with the Free State organization as an integral part of the British Empire and cam' paigned for liquidation of the present tariff war between England and the Free State. CbSGROVE LOSES MANY VOTES IN CORK.

De Valera increased his personal vote in Clare County more than 50 per cent. Cosgrave losr many votes in his constituency, Cork. Vice President Sean O'Kelly, doubled his poll in Dublin and other Fianna Fail ministers, Sean Lemass and S. Macenee notably, recorded remarkable increases. O'Kelly's vote topped that of Lord Mayor Alfred Byrne, independent, who long has set the pace in Dublin.

William Norton, leader of the Labor party, probably will be returned from Kildnre and indications were that his party would have no more than five seats, a loss of two. Only two women thus "far have oeen assured of seats. Mrs. H. Con-cannon, of the Fianna Fail, was seated and Mrs.

Redmond, 6f the famous Waterford family, won in that city. She is a Cosgrave sup porter. RolphWeTl, But Can't Find Trousers SAN "FRANCISCO, Jan. 26. Governor Rolph, who has been confined to St.

Francis' Hospital with influenza, would be out today if he could find his pfftits. The Governor told Director of Finance Rolland A. Vandcgrift over the telephone that he was well enough to leave the hospital but had been unable to find his trousers, taken from him when he was put to bed last week. Dr. John Gallwey, his physician, said the Governor had made steady improvement but would have to stay in the hospital at least all day today.

Then he'll get his pants back. Paul-Boncour Wins Confidence Vote PARIS, Jan. 26. (U.R) The government of Joseph Paul-Boncour won a vote of confidence from the Chamber of Deputies today, 368 to 205, in the first test of strength in the important budget debate. The government victory was made possible by revival of a cartel of Socialists, Radical Socialists, and Republican Socialists who decided to support Finance Minister Cheron at least until the debate by chapters of the budget begins.

Finley, Political Leader, Succumbs SANTA BARBARA, Jan. 26. (U.R) Theodore R. Finley, Democratic leader of Southern California and several times mayor of Santa Barbara, died here today of pneumonia. He was 70-years of age.

Finley's last term as mayor expired in June, 1931. He suffered a cerebral hemorrhage and paralytic stroke on Christmas eve, which was followed by pneumonia. Mac Donald Asked to Preside at Geneva GENEVA, Jan. 26. (IP) 1 hi League of Nations council today invited Prime Minister Ramsay Mac-Donald of England to preside at the world monetary and economic 'sofa-ference and ratified other decisions reached yesterday by the conference organizing committee.

The organizers decided the con ference should be held as early as possible and will meet again within three months to set a date WASHINGTON, Jan. 26. (IP) The House of Representativesand the country were told in detail today despite strenuous objections from Reconstruction Comoration members just how that huge Federal relief agency pledged in five months to help business try to get on an even keel. In compliance with a special resolution adopted by the House, the corporation sent to Speaker Garner a statement showing each loan authorized by the R. F.

C. between the date of its creation on February 2, 1932, and July 21, 1932. Following the policy he insisted upon last Spring, Garner made the report public. Pressure had been exerted to have the report given only to members of Congress, on the ground that publication would be harmful to the borrowers. The Speaker denied this and held that since the loans granted after July had been published under an amendment to the original R.

F. C. Act the other should be, too. The later loans have been made public monthly since July. LOAN TO DAWES BANK AMOUNTED TO $90,000,000 The report divulged that the much-discussed loan to the Chicago Central Republic Bank Sc Trust Company, with which Charles G.

Dawes was associated, amounted to $90,000,000. It was advanced in two installments last June, two days apart, the first amounting to $16,000,000 and the second, Another of the large loans went to the San Francisco Bank of America, which was authorized to borrow $64,000,000. A $30,000,000 loan to the Bank of Italv Mort gaging Company of thsame city was shown to have been authorized, while the Prudence Company in New York got the First Central Trust Company of Akron, Ohio, The Union Guard-Ian Trust Company of Detroit, and the Union Trust Company of $14,000,000. Railroads likewise jSere aided, being told they could borrow 147,000. Of this, $32,500,000 was allowed the Baltimore and Ohio, and $27,500,000 went to the Pennsylvania.

Other loans approximately of them in amounts down to a few thousand dollars were authorized from coast to coast. MONTHLY STATEMENT FOR DECEMBER RENDERED. Along with this special report, the corporation submitted the monthly statement of its December activities. Loans approved and money allocated in that1 Ynonth totalled $154,000,000. This latter analysis showed" that at the end of the year the corporation had assets of $1,725,000,000 and a cash balance of $7,927,000.

The December loan authoriza tions or allocations included: for financial institutions and railroads, $35,837,000 for State re lief, $8,271,000 for self-liquidating projects, $2,671,000 for facilitating agricultural exports, $11,000,000 to the Secretary of Agriculture for loans and advances to farmers, 000,000 for capital in agricultural credit corporations and an $800,000 subscription to home loan bank stock. INTEREST RATE CUT ONE-HALF PER CENT. The Corporation announced that because of prevailing low money rates it had, iri December, decreased its interest rates one-half per cent. This report also said that total loans authorized for the month were 738 and applications from fi nancial institutions and railroads were 756. In November, 584 loans were approved and financial institutions and railroads filed 576 applications.

At the close of business Decem ber 31, the corporation had made In all loans totaling $1,648,622,000. Its authorizations since it began business were $2,095,823,000 and from last February 2 to the end of the year repayments were 288,000. $11,722,149 Paid Back By Borrowing Railroads WASHINGTON. Jan. 28.

(IP) Railroads have paid back 149 of the $218,944,533 they bor rowed from the Reconstruction Corporation during the first five months of its existence. The figures were made nubile to day along with other details of loans granted by the relief agency from February 2, 1932, to July 2. a total or- $224,147,409 for rail roads was authorized but 856 has not yet been Ihe corporation also made it known today that on February 13 it agreed to make advances lor in terest charges on railroad obligations. The corporation said, however, that the sum to be used for the purpose, along with advances by bankers and the Railroad Credit Corporation, should not exceed The Credit Corporation also agreed -to repay the Rccon struction Corporation any money advanced. The agreement was rescinded on March 30, 1932.

$218,944,533 LOANED TO SIX COMPANIES. 1 Loans to six companies account for more than half the $218,944,533. Included in yiese was the SECTION Ivrltes OIL "The Fallacy of Currency Inflation" 2 Today's Tribune Subject Page Amusements, Theaters ....24 Aviation 20 Classified Ads 25 Comics 23 Cross Word Puzzle 22 Culbertson Contract 22 Editoriafs. 28 Editorial Features 21 Fiction ..22 Finance kvLZ' Geraldine 22 Marine .20 Minute Mysteries 1 4 a. 9 Radio .20 Society, Women's' Events 1 0 Sports I Vital Statistics ...27 (Continued on Page Col.

(4.) 1 on Page 2, Col. 1).