The St. Louis Star and Times from St. Louis, Missouri • Page 1

ID I 161,705 CIRCULATION jfet paid daily average seven months ending January 31, 1933. AND wsm 22 PAGES PRICE TWO CENTS RMAK THONG mm, STAR a VOL.47 NO, 12c ST. LOUTS, MONDAY, FEBRUARY 27, 1933. CE PULSE CQPmNUES British Put Embargo on Arums to JJapan and China Sues Husband for Accounting ENGLAND FORD GIVES HIS PROGRAM FOR MARKET CLOSES AT CLEVELAND IN BANK CRISIS Three Insulls Among 19 Financiers Indicted in Mail Fraud Case Stanley Field and Officials of Halsey, Stuart Company Accused in Federal Probe of Security Selling. CHICAGO, Feb.

27. (By U. Nineteen widely-known Chicago financiers were indicted by the federal grand jury today on charges of using the mails to defraud investors in various Instill enterprises. The indictments followed government inquiry into the collapse of the Corporation Securities Company a holding company for the colossal Middlewest Utilities Company, set-up of Insull operating companies. BERLIN REICHSTAG ON FIRE, ARSON PLOT SUSPECTED 4 Ashen-Brermer Photo.

Mrs. Elizabeth Halloday Niedringhaus filed suit today against her husband, Frederick E. Niedringhaus, asking for an accounting of her estate, valued at $98J96, inherited from her father, which she placed in her husband's hands for management. She charges that he has failed to account for the estate and has been absent from their home at 484 Lake avenue since December 2. Circuit Judge Hamilton has granted a temporary order restraining Niedringhaus from disposing of any of the property.

Niedringhaus is the son of Congressman Niedringhaus and is president of the Furnace Oil Company. He could not be reached for a statement. ACTS AS NEUTRAL Sir John Simon Explains Temporary Decree Does Not Make Nation Party to Dispute. ISSUE DEBATED IN THE COMMONS iabor Leader Warns Russia May Become Involved and Then All Europe Would Be Ablaze. U.

S. to Co-operate With League Board on Far East Crisis WASHINGTON, Feb. 27. (By U. The state department announced today that the United States, acting under its own treaty commitments and judging each new situation on its own merits, will co-operate with the advisory committee on the Far Eastern problem to be established by the League of Nations.

The committee is to be set up to follow events in the Far East and make recommendations as the occasion arises. It is a continuation of the so-called Committee of Nineteen established some months ago. Map on Page 2. LONDON, Feb. 27.

(By UV A temporary embargo by Great Britain on the export of arms to the Far East was announced in the House of Commons today by Sir John Simon, foreign secretary. John said that pending international consultations, Britain would not allow further shipment of arms to enter China or Japan. "Under no circumstances will the government allow Britain to become a party to the Manchurian dispute," Sir John warned. "Japan has taken the law into her own hands, but she has had severe trials to put up with, in that he has been dealing with a neighbor with whom it Is extremely difficult to deal. The BritLh government has said conciliation is the first task, but if it unhappily fails, must take the view of the Lyt-ton report." (This report condemned the warfare in Manchuria.) Sir John's statement was made during debate in the commons in which the combined Labor and Liberal forces demanded an arms embargo by Britain.

Just previous to the statement. Capt. William Strickland had asked George Lansbury, labor leader, whether he would "include an embargo on American exports of arms to Japan, and whether he would be prepared to send the British fleet gainst America to prevent their doing so?" "The American nation and the American government will. I am Viite sure, do what they think is right," Lansbury replied. Sir John remarked that it was "perfectly natural" for an embargo demand to arise, but added: "If the supply of arms is to be stopped, it can only be done by international agreement.

In this county we have provided rather better machinery for the purpose of stop-Ping arms traffic than any other country. 'Existing contracts must be respected, but subject to this, the government has decided as from today, Pending international consultation nd decision such as I hope for, the government will not authorize nor "Sue licenses for the export either Those indicted are: Samuel Insull, deposed head of his utilities empire, now a fugitive in Greece. Martin J. Insull, his brother, a fugitive in Oijtario. Samuel InsulL son of the former head of the empire.

Stanley Field, chairman of the board of the Continental-Illinois National Bank and a former director of Corporation Securities. Harold L. Stuart, head of Halsey, Stuart and formerly president of Corporation Securities. C. W.

Sills, vice president of Halsey, Stuart. Frank K. Shrader, vice president of Halsey, Stuart. C. B.

Stuart, vice president of Halsey, Stuart. P. J. McEnroe, vice president of Corporation Securities John F. O'Keefe, secretary, Corporation Securities.

Edward J. Doyle, president of the Commonwealth Edison Company, operating unit. John H. Gulick, official of the Commonwealth Edison Company. Waldo F.

Toby, lawyer. Clarence T. MacNeille, vice president, Halsey, Stuart. Fred IL Scheel, rice president, Utility Securities Company, another Insull holding company. Robert W.

Waite, treasurer, Utilities Securities. Frank R. Evers, secretary. Utilities Securities. George A.

Kemp, assistant secretary, Utilities Securities. Clarence R. Whitworth, auditor for Corporation Securities. Corporation Securities was Samuel Insull's last desperate attempt to stave off the collapse of his huge $2,000,000,000 utilities structure. The investing public sank $104,375,000 in the enterprise, all of which, it is indicated has been lost.

Of those indicted, Harold L. Stuart, C. B. Stuart. Doyle and Sills were directors of Corporation Securities, and Toby was attorney for the concern.

Bond for each was set at $10,000. The indictment contains twenty-five counts. It "charges specifically that the defendants "devised a scheme and artifice to defraud and to obtain money from prospective investors by false pretenses, representations and promises in the sale of Corporation Securities Company common stock." Nation-Wide Campaign. It is charged that the 'defendants engaged in a nation-wide campaign in the sale of stock through Halsey, Stuart Company, Utility Securities Company, Corporation Syndicate, Insull, Son Company, and others. The indictment charges that the defendants "falsely represented to the investors that they would find safety of principal based on the great physical properties that se cured the investments, when the fact was that the Corporation Securities Company did not own any-great physical properties and the security back of the stock was worthless." Crack federal investigators from many cities spent nearly five months examining the activities of the Corporation Securities Company.

Testimony indicated that hundreds of thousands of form letters, circulars and bulletins describing the securities were sent by mail to persons throupghout the United States and that advertisements were placed in newspapers in principal cities in six- Continued on Page 2, Column 2. RESTFUL PATIENT Pneumonia Area Hal Extended Slightly in Right Lung, Doctors Report After Examination. NO NEED FOR MORE OPIATES Mayor's Mind Clear and 'Color Good' He Is Able to Take Considerable Nourishment. MIAMI, Feb. 27.

tBy U. The pneumonia area in Mayor Anton J. Cermak's lower right lung has extended slightly, doctors said after an examination at 2 o'clock this afternoon. Otherwise his condition is unchanged. Following is the bulletin Issued by the doctors: "Mayor Cermak's condition remains practically unchanged.

He has had restful day without opiates or sleeping medicine. His coior is good and pulse continues full and strong. He has taken considerable nourishment. Temperature 101, pulse 112, respiration 36." The lung examination revealed a slight extension of the pneumonic area in the right lower lung, which, was penetrated by the bullet. It will not necessarily increase in size, the physicians said.

It was explained that the lung area, in which the pneumonia is consolidated, roughly, is the size of tennis ball in circumference, whereas twelve hours ago it was the size of a golf bail. This mornings bulletin, signed by Dr. Frank Jirka, son-in-law and personal physician to the mayor, said: "Mayor Cermak had a very restless night, especially during the early morning hours. He later fell asleep and now is resting comfortably. He has no cough nor any apparent pain.

"The oxygen tent ts being used. Temperature, 992; puLse, 128; respiration, 36." A later bulletin, issued at 10:45 a. read as follows: "Cermak's condition continues unchanged durinsj the past twelve hours. After 2 a. m.

he had a restful sleep. His mental condition is clear and unclouded. "Temperature 101. pulse 128, respiration 40." At times a little delirious, the mayor himself struggled last night to adjust cold towels that were placed around his forehead to keep his temperature down. He was able to take a little chicken broth before he fell into an intermittent sleep, shortly before midnight.

For Two days he had been sustained by glucose injections. In one of his rambling moments, it was learned. Cermak asked Dr. Jirka, in his native Bohemian, "Am I going to get "Sure!" Jirka replied. Rushing Oxygen Equipment.

CHICAGO, Feb. 27 Ey U. A plane left here today bearing 25 pounds of special oxygen inhalator equipment to be used for Mayor Cermak. MAN STROLLING IN NUDE AT GRAND AND OLIVE JAILED A noon -cay crowd at Grand boulevard and Olive street was startled today by the appearance of a nude man, who alked leisurely down the street, shouting. "This is the way every healthy man should walk." Appearing first at Grar.d and Lin-dell boulevards, he started walking north on Grand Two citizens attempted to seize him.

but he brushed them aside and continued to stroll. At Olive street, a policeman stopped him, but he struck the of-' ficer in the jaw, eluded him and continued north on Grand. Other policemen arrived on the scene id took him into custody on Washington boulevard, just west cf Grand. The man said he is Harry A. Guinness, an insurance broker.

He was taken to the City Hospital for observation. Pocket Battleship Tested. KIEL, GERMANY. Feb. 27.

'By TJ. Germany's newest pocket battleship, the Deutschland. proceeded on its final trials today in the North DAY FOR Mitchell and Baker Quit National City Resignations of Chairman of Bank and President of Affiliate Accepted Result of Senate Investigation. NEW YORK, Feb. 27.

(By U. Directors of the powerful National City Bank, meeting today, accepted the resignation of Charles E. Mitchell, its chairman and directing genius who made it the second largest bank in the world. Shortly afterwards directors of National City Company, securities affiliate of the bank, accepted the resignation of Hugh B. Baker as presi SAFE BANKING Auto Magnate Says One Depos itory He Will Control Will Be for Small Investors and the Other for Industries.

ONLY 'PRODUCTIVE' LOANS TO BE MADE, HE ASSERTS Declares 'Safety, First, Last and Will Be Watchword He and Edsel to Put Up $8,250,000. DETROIT, Feb. 28. (By U. A banking system which may revolutionize the financial structure of Detroit, and perhaps elsewhere, was envisioned today by Henry Ford, motor car manufacturer who has assumed virtual dictatorship of two of the city's largest banks to bring about their rehabilitation.

Ford and his son, Edsel, last night agreed to put up $8,250,000 cash to capitalize reorganization of two new banks to take over the First National Bank and the Guardian Na tional Bank of Commerce. Safety for the investor will be the watchword of the two new national banks, Ford asserted. "Safety is the biggest thing In banking," Ford said in his first public pronouncement since he came to the aid of the two depositories. "There must be safety, first, last and always. Safety in a banking institution means 'to me that a man can put his money in such a place and get it back, 100 per cent, any time he "Productive Loans." Dressed in brown, and still showing the strain of his recent serious operation, Ford came out of the seclusion of his laboratory to tell his theories of banking, a profession he has hitherto abjured.

"I believe in productive, and not speculative loans," he said. A manufacturer who needs capital to increase his factory, or to employ more men, would be a productive loan seeker, Ford explained. Speculative loans, he asserted, are those made on property which fluctuates in value. Speaking informally, he said that his plans for the new banks were still in a nebulous state. It would take many conferences, he pointed out, to iron out the various prob lems.

"Edsel is downtown now taking care of the preliminary matters," Ford said. While the younger Ford 1 was in conference, the inventor had repaired to his workshop to study plans for his next year's automobile. hope we'll hear less about banks from now on," he commented to one of his officials. His ideas. Ford said, would have to be tried out.

It was a gamble whether they would the means to the end, safety for all investors. Two Distinct Classes. The two banks will cater to two distinct classes, Ford asserted, the First National, out of which will come the People's National Bank, will be for the small investor. The Manufacturer's National, outgrowth of the present Guardian Bank, will, as its name implies, handle the financial affairs of industries. Under the reorganization plans, Ford and Edsel, who was one of the Continued on Page 5.

THE WEATHER Forecast for St. Louis: Unsettled tonight and Tuesday; possibly showers; slightly warmer tonight; lowest temperature about 38. For Missouri: Probably rain tonight and Tuesday, except mostly cloudy in west portion Tuesday; slightly warmer in extreme east portion tonight: colder Tuesday in northwest portion. For Illinois: Unsettled tonight and Tuesday; rain probable: slightly warmer tonight; colder Tuesday in west portion. TEMPERATURE READINGS.

4 a. 5 a. 6 a. 7 a. .33 .32 32 32 8 a.

33 7 a. 36 10 a. 39 11 a. 41 12 noon 45 1 p. 47 2 p.

43 3 p. 43 4 p. 49 Midnight 1 a. m. 2 a.

3 a. m. .35 .34 .33 .33 Relative Humidity. 12 noon 47 7 p. 62 7 a.

69 Stage of river, 7 feet, a rise of 2 of a foot. Sun sets 5:51 p. m. today, rises 6:35 a. rn.

tomorrow. Stock Exchange Directors Act After Depositories in Several Cities in State Place Limit on Withdrawals. GOV. WHITE PREPARES EMERGENCY LEGISLATION Restrictions Are in Force Dayton, Akron and Lima Business Reported Normal in Several Other Towns. CLEVELAND, OHIO.

Feb. 27. (By U. Ohio met the shocks from the Michigan and Maryland bank moratorium today with swiftly executed restrictions on withdrawals in communities most affected. Restricted operations in Cleveland, Dayton, Akron and Lima spread today to groups of smaller banks directly influenced by the larger banks in these cities.

The Cleveland Stock Exchange voted to suspend operations. No time limit was placed on the closing order. All banks in Lorain followed the lead of nearby Cleveland in allowing only 5 per cent withdrawals. Twelve banks in villages and towns in Mont gomery County joined Dayton banks in a three-day moratorium. JElyria banks, in the Cleveland area, limited savings account with drawals to approximately 10 per cent per month.

No limitations were placed on commercial accounts. Banks in Canton, Youngstown, Al liance, Massillon, Painesville and Niles in the northeast sector varied the details of restriction. Normal banking business was reported in many other centers. Gov. George White reaffirmed his refusal to declare any state wide bank holiday, and announced he would submit to the legislature to night a bill to empower the state banking commissioner to restrict local bank operations in emergencies.

In Dayton, banks were closed un der a three-day moratorium. Cleveland depositors were unable to with draw more than 5 per cent of their savings and commercial deposits. In Akron, savings depositors were re stricted to 1 per cdht withdrawals per month, and commercial deposi tors were warned that attempts to withdraw more than customary amounts needed for business would be refused. Depositors in the first American Trust Company at Lima were re- tricted to 2 per cent withdrawals. At Cleveland a crowd estimated at between 4.000 and 5,000 jostled its way into the main banking room of the Union Trust Company as it opened today.

Many were taking advantage of the percentage with drawals. The National City Bank, which alone of the Cleveland institutions refused to oin the restructed activities, met a short run at the opening which quickly dwindled to routine business which officials said was evenly divided between deposits and withdrawals. Other Cleveland banks experienced larger throngs of customers than customary. Cleveland's immediate difficulties were traceable in part to the Michigan bank holiday. Bankers explained that many Detroit manufacturers and businesses maintained accounts in Cleveland and made heavy withdrawals on them to provide cash to relieve the tension in their own city.

Five PcL Limit in Indianapolis. INDIANAPOLIS, Feb. 27. (By U. Indianapolis banks allowed withdrawals of only 5 per cent today under a limitation of the city's clearing house association.

The action affects only members of the clearing house, and does not affect notices of withdrawal which have been filed for sixty days. Gov. Paul McNutt said he had not changed his position announced last week that Indiana would have no general moratorium. A banking code adopted last week by the legislature allows a newly created bank ing commission to close any bank and to allow its reopening when 80 per cent of the depositors have signed waivers that they will not attempt to take out of the bank more than a specified percentage of their deposits. Financial difficulties in Fort Wayne and South Bend during the past week brought partial local mora toria.

Marvland Emergency Law. BALTIMORE, Feb. 27. (By U. Emergency legislation restricting withdrawals of deposits from Maryland banks was whipped into shape today for presentation to the legislature tonight.

Quick passage of the measure is expected to open the way for resumption of business by Maryland banks, which closed Saturday under a three-day houday pro- claimed bv Gov. Ritchie. Blaze Breaks Out in Four Places Entire Department Called. BERLIN, Feb. 27.

(By U. The Reichstag, Germany's parliament building, was aflame tonight and it was feared the cupola would collapse. The fire broke out in four places at once, and a high official said he believed it was of incendiary origin. The entire Berlin fire brigade was called out. Fifteen minutes after the blaze was discovered the cupola was a mass of flames.

The building, a huge and imposing structure, stands near the Brandenburg gate at the end of Unter den Linden, in the heart of the city. This was the second mysterious Blaze in three days. A minor fire occurred in the old Imperial Palace overlooking the Lustgarden Satur day. UKULELE CAUSES DISCORD, WIFE AWARDED DIVORCE Mrs. Thurley J.

Trott, pretty 21-year-old blond, today was granted a divorce from Earl Louis Trott, office manager of the printing firm of John S. Swift Co, and was awarded custody of their 17-month-old daughter, Patricia. -We Just couldnt get along," Mrs. Trott told Circuit Judge Taylor "one time when he was reading I started nlavine mv ukulele. He knocked over tne coffee table, left the house and didn't return for three Mrs.

Trott. who lives at 5444A St. Louis avenue, was represented by Frank B. Grodzki. Trott entered an appearance through his counsel, Carl F.

Stocksiek, but did not contest the suit. The Trotts were married March 1, 1930, and separated May 21, 1932. ROOSEVELT LIKES 'CUT OF JIBS' OF 2 CABINET MEN HYDE PARK, N. Feb. 27 (By U.

President-elect Roosevelt today formally announced that Harold Ickes of Chicago and Senator Claude Swanson of Virginia have consented to serve as secretary of the interior and secretary of the navy, respectively. "I liked the cut of their Jibs," Mr. Roosevelt said Yesterday he confirmed appointment of Henry A. Wallace of Iowa as secretary of agriculture and James A. Farley of New York, his campaign manager, as postmaster general.

Mr. Roosevelt resorted to a nautical figure of speech in his reference to "jib," which is a small triangular sail. Kriwanek's Markets Kroger Piggly Wiggly Market dent of the company. James IL Perkins, president of the City Farmers' Trust Company, was appointed as the new chairman of the bank. Perkins had been elected president and director of Farmers' Loan and Trust on June 16, 1921.

and was made president of the City Bank Farmers' Trust and a dircetor of the National City Bank on completion of the merger of the two institutions on June 29, 1929. 1 Mitchell resigned also as chairman of the National City Company, the bank's securities affiliate, and four subsidiaries. None of the affiliated companies chose successors to Mitchell or Baker, but the National City Company was expected to act late today on selection of a new chairman and president. Following the resignations National City Bank stock was up two points at the close of the market today. Mitchell and Baker returned to Washington today where they resumed their testimony before the senate committee investigating the National City's market activities.

Mitchell said he resigned because he was afraid criticism directed at him because of revelations before the the comiymtejajwnhtte Continued on Page 3, Column 1. Today's Features Woman's Patres 6 and 7 Movie Time Table 7 Ili-IIo Puzzle Contract Bridge Cross-Word Puzzle 3 Horoscope "Murder of Carolyn Bundj" (Serial. Comic Paces 10 and 11 Uncle Kay Side Glances Brushinc Up Sports Sport ...12 and lo O. O. Mclntyre Jj Market Report JJ Stranae As It a.

lb Todav's Almanac 1 Want Ails Short Stnrv NATIONAL CITY GOT BAD REPORTS BUT SOLD PERU'S BONDS Hugh Baker Agrees Company Withheld Facts From Public. WASHINGTON, Feb. 27. (By U. Hugh B.

Baker, resigned president of the National City Company, was driven to agree today in the senate stock market investigation that his company had withheld from the public unfavorable information regarding Peru while floating Peruvian bonds in this country. Investors seem destined to take tremendous losses in the issues, aggregating $90,000,000, which the National City Company helped float. Baker said he doubted if American investors would have bought if certain of the information in his company's files had been contained in the bond prospectus. Turning to the $50,000,000 issue of December. 1927, Ferdinand Pe-cora.

committee counsel, asked: "Was there any statement in the circular about Peru's bad debt record?" "I don't know that there is any we showed the total debt," Baker I said. Pecora snapped back that to state the total debt without showing how much had been defaulted might in itself mislead the public. The company floated to American investors $5,000,000 of the bonds at $96.50 for a $100 bond and made a gross profit of between $5 and $6 on each bond. They are quoted now at between $7 and $10. A report as late as February, 1925, two years before the Peruvian loan was made, was read into the senate record by Pecora.

It noted that the fiscal and economic situation in the South American republic was still unsatisfactory and painted a gloomy Your Dinner Party will be half way down the road to success when the menu is selected from the wide varety of good things listed today in advertisements of the following food merchants. And after the party is over, it will be great to find that the cost was much lower than you had expected. toina or Japan of any articles in the arms report prohibition order of 1931. "There is no doubt at all, that Jhe method followed by Japan in jhis controversy and the action she taken are not in accordance ith the provisions of the league covenant, but we would be doing a tfeat injustice if we stopped there Wd did not admit that the case 01 Japan ts Involved with many Plications. "The action of the Japanese army not in the least resemble the mjasion by a foreign force of an-er country.

Japan has to certain strips of Continued on Page 2, Column 4. Bers'i Market Food Center Leber Continued on Tage 2, Column 1..