Iola Daily Register And Evening News from Iola, Kansas on March 9, 1933 · Page 1
Get access to this page with a Free Trial

Iola Daily Register And Evening News from Iola, Kansas · Page 1

Publication:
Location:
Iola, Kansas
Issue Date:
Thursday, March 9, 1933
Page:
Page 1
Start Free Trial
Cancel

VOLUME XXXVI. No. 113. Succe««br to Tbo Tola Doily Reginter, The Tola Dsily Record, and loU Daily Index. IOLA; KAS., THURSDAY EVENING, MARCH 9, 1933. Tha Weeklj Register, Established 1867. The lots Dally Register, Established 1897. EIGHT PAGES TWO ADMIT ROBBERY OF SHOE STORE MTTTELBACH IDENTIFIES MEN HELD IN IJEAVENWORTH DIAMONDS STILL MISSING Officers Still Working on Case to Trace the Stolen Stones PET CHECKS WILL BE CASHED BY BANKS. Confessions signed by Jerry Carroll and Billy Ham.by that they held up and robbed the Palace shoe store In lola February 18 are in the hands pi J. D. Mlttelbach, son of the owner of thei store and one of the three victims of the robbers. In the rob- befry the elder Mlttelbach and Mrs. Mlttelbach were forced to turn over four diamond rings and a watch and the younger mart was forced to deliver his watch and cash from the store amounting to over $200. Hamby and Carroll are being held hi the Leavenworth Jail and their confessions were given in the pres- etjce of Chief A. V. Punkhouser of Ibla, Sheriff Bud Hurley of Allen county, and J. D. Mlttelbach. Other persons there Includiid the sherifT of Leavenviforth county, his deputy, the Jailor, and the County attorney pjr Leavenworth county. The lolans had. gone there yesterday to question the suspects concerning any connection they might have with the robbery. En route to Leavenworth, J; D. Mlttelbach purcha.sed a Topeka paper and saw the pictures of the two. lie immediately recognized the pictures and when he viewed the prisoners later positively identified them as the ones who had robbed the shoe store. At first they denied that they, recognized Mlttelbach and that they had itibbed the store, but after questioning by the ofilcers and Mittelbach they finally signed the confessions which Mittelbach n6w has. Confessions Reproduced. The confessions fbllowr. reproduced exactly as they were written: I Bill Hamby .hereby admit that on the night of February 18, 1933 at 10:10 p. m. I, entered the shoe store of J G Mittelbach at lola. Kamas held it up and robbed those present, two men and a woman of money, jewelry and keys, i make this .statement of. my own free will, 8th day of March^ 1933 BILLY HAMBY Some curiosity having been expressed by patrons of the Pet Milk Company as to the manner in which the checks which In the regular order of things would come to them tomorrow and next day, would be taken care of The Register is authorized to make this statement: The milk d&cks will be Issued as usual and they will be cashed by either of the lola banks as usual. The only unusual thing about it Is that the checks will be paid In money sent to the lola banks from the general offices of the Pet Milk Company at St. Louis for that purpose. The Pet Milk Company in all the fifty years of its history has never yet missed a pay d^y and- it is anxiotis not to break that record. When the present bank holiday was declared, therefore, the company asked all.Its customers in various cities to settle their bills in cash Instead .of checks-just as far as possible. In that way the company was able to gather up currency enough to take care of its patrons in the way Indicated. So something Uke $7,000 will be paid out In lola tomorrow and next day of real money, NEW money that does not deplete the stock already here. The patrons of the Condensery doubtless will appreciate the trouble the Pet Milk Company has taken to meet Its obligations to them In this wholly satisfac­ tory'manner. GUILHTHE PLEAMADE BY ITALIAN ZANGARA ADMITS HE ASSASSINATED ANTON CERMAK thjis I, the midersigned, make this statement of by own free will that on the night of February 18th 1933 I was with and aided Bill Hamby in the hold up of a shoe store at.lola, Kansas where two men and a woman were present. Money, jewelry and keys were I taken. Dated this 8th day of} March. 1933 •JERRY CARROLL x'The pair told the officers that they had disposed of the cash taken in the'robbery and had sold the dii.monds. The place where they ,r.ald they sold the stones was not revealed by.officers who are conducting a further investigation Int •> the crlm^. Tlie one. who said he hacl- taken the older Mittelbach's watch snld that he. had intended to nend It back because he knew it miRht have: value,, as a keepsake, and officers are trying to trace it now The other ' said that the watch he took from J. D. Mlttel­ bach was lost as he was boarding a freight train. Hamby a Murderer. Hamby, who Is 17 and gave his hem;, as'JopUn, Mo., has pleaded (TJiity to first degree murder and has been sentenced to life imprisonment for the sla>ing",of E. J. Morris. 22-year-old Washburn college student of Erie, Kas.. on Monday. Carroll, charged with Hamby. has' demanded trial. Mon-is was slain at a filling sta- .lon near LawTence by one of two men he had permitted to ride on the running boards of the car he wa.s driving. His hssailant fired when- Morris .'cslsted their effort to take the car ftwav from him and the owner. Mrs. W. L. Weber of Tooeka. and her two SOPS Scott and John. A. few houre after the slaying '^mbyand Carroll were captured four miles from Tonganoxle. close to ^here they had abandoned the stolen car in a ditch. They were Identified by Mrs. Weber. Married Recently. Hamby In a "statement to officers said his age was 17 but that he had given his age as 23 in an application for a marriage license in Leavenworth cfiunty probate court. The records show that Hamby was married to Opal Kittelwell, who gave her age as 34. and her residence as Joplln. Aft«r the issuance of the license they were married by the Methodist minister. Hamby said his bride is now In Kansas Cltv. Chief FMnkhouser said that Mrs. Hamby had later been arrested In Kansas Cltiy and that he and others had questioned her concerning her husbarid's activities, but to no avail. It y[as also pointed out that by coincjdence the minister who married thjem, Mr. Spencer, was formerly pastor of the First Methodist church' in lola. Cuhl to Anto Woiiiers. Detroit. Jtfarch 9. ;(APV-Hundre<Js of thousands of dollars In currency -was placed! in circulation today by nmtlVs ailtomoblle .•ftwstoriea, ^ttta 100 per cent cash payiheots of week- if wages to em|»lo^.. SENATE PASSES 110 TAX BILLS Income and Sales Tax Measures Go to the House Again Topeka, Mar. 9. (AP)—By votes of 35 to 2 an4 22 to 18 respectively, the senate passed today and sent to the house two important revenue raising, measures—the income tax and sales tax bills. ' The income tax measure now goes back to the house for action on changes which the senate made in the measure, as approved by the house last week, including amendments to reduce rates on Individual and corporation Income taxes arid providing for a homestead property tax offset. Chairman Morse of the house assessment and .taxation committee said he would a^ the house to non­ concur In the senate amendments and to send the measure to a conference comipittee.. Chairman-Coffman of the seriate assessment and taxation committee expressed opinion a conference committee might agree to the rates approved by the senate if the homestead offset provision were eliminated from the bill. He said he thought that likely would be the compromise between the two branches. The sales tax bill was approved by the senate Tuesday night but was not up for third reading yesterday as the senate spent the entire day on the income tax bill - The sales tax measure has not been: before the house. As finally approved by the senate the income tax bill provides a 2 per cent tax on corporation net incomes, compared to 3 per cent as approved by the house, and rates on individual net incomes as follows: First i2,000 or part thereof of net Income, 1 per cent; next $il,000, 2 per cent; next $2,000, 2Vj per cent; ricxt $2,000, 3 per cent; next $3,000, 4 per cent, and all Income over $10,000, 5 per cent. Exemptions allowed In the bill were unchanged as fixed by the liouse and are $750 for single persons. $1,500 for married couples and $200 for each dependant. Rates which {he house bill provided for individual Incomes but which the senate refused to accept, were: Pirsf $1,000, 2 per cent; second $1,000, 2Vi per cent; third $1,000, 3 per cent; fourth $1,000, 3'-: per cent: fifth $1,000, 4 per cent, sixth $1,000, 5 per cent and all m excess of $6,000, 6 per cent. SORRY HIS SHOT MISSES 1— Confessed Murderer Says He Is Mad at All Kings And Presidents Miami. Fla., Mar. 9. (AP)— Circuit Judge Uly O. Thompson today took imder advisement the fate—life Imprisonment or death' —of Giuseppe Zangara, ^ who pleaded guilty to charges of murdering Mayor Anton J. Cermak of Chicago when his attempt to kill President Roosevelt failed. The judge said he would pass sentence tomorrow morning at 10 a. m. WEATHER and ROADS FOR KANSAS: Cloudy andsUtiit- ly colder, possibly with some snow in west portion tonight: Friday partly clondy with slowly rising* temperature In west and north-central portions. ' For lola and Vicinity: Clondy and sliirhtly cdlder tonight; Friday partly clondy; little change in temperature. Temperature — Highest yesterday, 55; lowest last night. 30; normal for today. 42; excess or deficiency yesterday, 0; excess since January 1st. 465 degrees: this date last year, highest. 22; lowest. 8. Precipitation for the 24 hours ending at 7 a. m. today, .00; total for this year to date, 3.90; excess since January 1, .30 inch. Relative humidity at 7 a. m. today, 75 per cent; barometer reduced to sea level, 30.11 Inches. Sun rises, 6:42 a. m.; sun sets, 6:23 p. m, Kansas Weather and Dirt Roads. Emporia, partly cloudy, roads rough. Ottawa, partl.v cloudy, roads good. Manhattan, cloudy, roads fair. Cbtfej-vllle, clear,; roads good. Topeka, cloudy, roads rough.. Ackansas City, Wlchltai clear, roads good. Salin.i, cloudy, roads good. Pittsburg, clear, roads good. AiluuiMs Law Holds. Little Rock, Ark., Mar. 9 (AP) — The Arkansas senste last niUit -de;- feated 25 to B a bouse bill to repeal the state's 9Q-dA ]r *lvoroe tow. 1 • Mlanil, Fla„ Mar. 9. (AP)—Giu­ seppe'Zangara today pleaded guilty to charges of murdering Mayor Anton J. <3ennak of Chicago when his mad' attempt to assassinate President Roosevelt here February 15 failed. Zangara's plea was entered by Louis P. Twyman, chief of the counsel appointed for him after Zangara himself had said. In response to a query as to guilt by State Attorney N. Vernon. Hawthorne. •'I want to kill the president. I want to kill all kings and presidents," Zangara apparently started on a lengthy discourse but was halted by Twyman. The latter said his client, would plead guilty to the firet count of an Indictment returned Monday by a specially convened grand jury if the second count was dropped. The first count charged Zangara with killing Mayor CJermak as he tried to kill the president. The second charged premeditated murder of Mr. Cermak. Witnesses Called. ' Tom Armour of Miami was called as the first witness as Judge Thompson heard evidence accprdmg to Florida law, before passing sentence on the assassin. Zangara already has been sentenced to 80 years Imprisonment on his plea of guilty to charcc? of attempting to murder the president and three of the persons his bullets struck. Armour told his story of attempting to divert Zangara's aim when the latter fired his pistol five times in Bay Front Park. The second witness. Miss Dixie Herlong, a court reporter testified aljout taking Zangara's statement, delivered she said, "in a reasonably calm way" the night of the shooting. Zangara said. Miss Herlong testified, "that he attempted to kill President Roosevelt because , he didn't like presidents and i capitalists." Sheriff Dan Hardie of Dade county, described tlie shooting and. Zangara's capture and said the latter stated he wanted to kill President Roosevelt because he was "a member ol the capitalistic class;" Picture from Pocket. The sheriff I'dentJfled a newspaper clipping showing a picture of President Roosevelt. The clipping was taken from Zangara's pocket after the shooting.' "I believe he had no connection with any criminal gang in the shooting," the sheriff said. H. L. Edmondson, Ottumwa, Iowa, testified he saw Zangara before and after the shooting. Dr. R. C. Woodard, superintendent of Jackson Memorial hospital described treatment of Majxir Cermak up to his death and said the bullet wound caused his death. Dr. E. S. Nochol, one of the physicians who attended the mayor also testified death resulted fjrom the bullet wound, as did Dr. J. W. Snyder, another attending physician. Zangara himself took the stand after the state closed Its case. "I'm 33," he testified, "bom In Italy. I came here first September ten years ago and live In New Jersey. I live here three four months— since July. "I want to kill all capitalist. Because of capitalist people get no bread. That's important thing—not money. I feel this way since I 14 years old. "I go to work when I six years old. I work with farm people. •' My father's In Italj-. My mother died when I two years old. I got six sisters and a step-mother. We got same father—not same mother." "I have stomach pains since I six years old. I not mad at my father but I mad at capitalists. They got education. don't smoke, drink because It makes stomach on fire. Are you mad at any body now?" Twyman asked. "No, except I mad at capitalists all time—I not mad at jailers'or at anybody here. " I dont belong to church. I dont believe In God." Zangara described the actual shooting and said Mrs. W. F. Cross of Miami and not Armour, an earlier witness, knocked his arm and diverted His aim as he tried to shoot Mr. Roosevelt. "I: tried to shoot Mr. Roosevelt before, when he talk, but lots of people In my road and I can't do it. .1 feel I have a right to kill him,: I feel that many years. ".. .. .1 know thojf «lve infi electric chair but I don't care-ri'm, T10A." Americans Give Protest To German 'Indignities' Unwarranted Intrusions by German Police in Homes of Americans in Germany Following Recent Elections Included in Charges Through Ambassador. Washington, Mar. 9. (AP)—•tlie state department disclosed' today that protests have been made to the Gerinan government through Ambassador Sackett against reported indignities and violence involving American citizens. In reply the German govemmefnt expressed its keen regret and gave assurances that every measure would be takcQ to prevent similar occurrences. The cases were imderstood to have arisen from disorders in connection with the recent, election In which the KTational Socialist or Nazi party, headed by Adolf Hitler, was given commanding power. Foiir incidents were reported Involving American citizens. The Individuals named were Henry H, Sattler, Edwin P. Dakln, Nathaniel KIDNAPING CASE IS "IRONCLAD" Denver Police Say Convictions Are Certain For Six Suspects Denver, Mar. 9. (AP)—The police case against six suspects in the Charles Bocttcher II kidnaping has become "Ironclad," Chief of Police Albert T. Clark annoimced today. The chief also predicted that officers on the trail of two of the six not yet in custody would effect their capture before the day had passed. The two sought are Verne Sankey and Gordon Elkhorn, believed by Clairk to be fleeing into Canada. Twp women and two men are In jail heiie. Federal kidnaping charges have been filed against all six. Information which caused Chief Clark to state he had Ian "ironclad" casie, jhe said, came from Arthur Yoimgberg, alleged member of the kidnap band, captiured at a ranch house allegedly owned by Sankey near Chamberlain, S. D. Police said Yourigberg was the guai'd. who watched the 31-year-old wealthy bro;ker In the basement at the Sankey ranch during the 16-day period In which negotiations for $60;000 ransom were completed. Voungberg and Boettcher were brought together In the chiefs office just after the scion, of the pioneer Colorado family had come from a hospital where his wife had glvien birth to a baby 'daughter, their second child. "Boettcher closed his eyes tight when I asked Youngberg questions," Clark said in: describing the scene. "When he hetird Youngberg's voice he lunged forward as if to throttle him, but was Restrained by another police officer and myself." i Clark explained that during his long captivity {Boettcher was blindfolded but knew his captors by thefa: voices. He said! one of the men spoke with an accent. Youngberg's English has a decided foreign accent. "Charlie wag a nice fellow," Clark quoted Youngberg as saying. "We got along swell. I wasn't In on the kidnaping at all. I just went to worlB for Sankey on his ranch last November. - "C|ne night he and Elkhorn brought a young fellow I got to know as Charlie to the place and put him In the basement. They asked me to look after him and I did. I Then they came and took him away and a day or so later they came back. I didn't see any of the $60,000 ransom. They went away again and told me they were coming back. That's all I know about it." While the police were questioning Youngberg here, the trail of Sankey and Elkhorn led to Minneapolis where it was learned the two had left a hotel Tuesday night. S.iWollf, and Max Scbussler., Their places of origin or residence In the United States were not^^ven In the dispatch from the BerUn embassy and were not immediately available at the state department. Two distinct protests were made and after the second the German foreign office said the matter had been called to the personal attention of the Chancellor and each member of his cabhiet. Wollf contended he had been virtually kidnaped, bound and held In- ccanmunlcado for three hours. On the day after the German foreign office expressed Its regret and intention of acting to prevent similar occurrences, a protest was made in the fourth case, that of Schussler, who said he was foreed at the point of a pistol to sign an order revokjpg an eviction proceeding against one of his tenants who was a year in arrears in his rent. Bchussler charged that his home was invaded and his wife subjected to Indlghltles and this likewise was made a subject of the protest. Similar cases, the state department ^was informed, have been brought to the attention of the; German government by other diplo-' matic missions in Berlin. Three American citizens complained to the embassy at Berlin this week that their apartments had been entered without provocation by the auxiliary police. The complainants were Henry H, Sattler of New York City, Edwin F. Dakln of Hannibal, Mo., and Nathaniel S. Wolff of Rochester, N. Y. FORMER LOVERS SLAIN Coroner Says Young Woman Kills Pleasanton Man and Tunis Gun on Herself. : KANSAS CONFOBMS WITH : FEDERAL RULES. Topeka, Mar. B. (AP) — To : : conform with President Roose- : ; velt's proclamation of last Sim- : day night declaring a bank boll- : : day, (3ovemor Alf M. Landon : : and H. W. Koeneke, state bank : commissioner, altered today their : : earlier order permitting Kansas : banks to pay out 5 per cent of : deposits. . : Until further notice, the Kan- : : sas banks were ordered not to : : pay out any percentage of their : : deposits, with certain exceptions, : and to comply with the orders : : issued by the secretary ot the : United States treasury depart- : ment relative to the making of change, the opening of safety deposit boxes, the repayment to : all depositors (ft cash deposited March 4 «nd subsequent thereto, and the cashing of checks drawn on the treasury of the United States. ' ' The five per cent order became effective last Saturday. Bank Commissioner Koeneke said the exceptions referred to were the treasury department r^rulatlons restricting payment of coin and currency to absolute needs for food and other necessities of life, for the reUef of distress and for payment of salaries and wages. ROOSEVELT ASKS ACTION A SPECIAL MESSAGE TO CONGRESS TODAY Port Scott, Kas., March 9. (AP)— Miss Beulah Halpaln, 25, of Pittsburg, Kas., a school teacher at Worland, Mo., and Zack Collins, 27, her former admirer, were killed in a double shooting at Pleasanton, Kas., last night. Dr. H. li. Clark of LaCygne, Linn county coroner, said jthe evidence was that the teacher shot Collins and then committed suicide. No inquest was planned. Friends of the two victims said they had been estranged for eight or nine months, but had seen each other occasionally. Collins, a tipple man at a mine near Pleasanton, was engaged to Washington, Mar. 9, (AP)—President Roosevelt In his mtesage to congress today proposed immediate opening ot all sound hanks and provisions for (iurrency expansion during the banking reorganization. "I cannot too strongly urge upon the congress the clear necessity for Immediate action," he declared. He will request of congress "at an early moment" two other measures which he regards of "immediate urgency."' It was understood in capitol quarters that these would refer to granting him power to cut federal expenses drastically, including those for veterans, and also for getting to work oh a huge public building program to provide employment. "It is my beUef," the president told congress In a message of 500 words, "that this legislation (banking legislation) will not only lift immediately all unwarranted doubts NEW BANK BILL Senate Approval Only Needed to Send Emergency Measure to President Roosevelt For His Si^natur^ Tonight. UNANIMOUS VOTE UNUSUAL UNITY IS NOTED IN QUICK HOUSE ACTION GENE BRIMM DIES Meat Cutter in lola Stores cnmbs to Pneumonia Suc- Gcne R. Brimm, a meat cutter for ten years in various lola markets, died today in St. John's hospital following a brief illness. Phj-sicians said death came as the result of pneumonia. He was 34 years old. The funeral will be held at 2:30 p. m. Sunday in the Baptist temple, the iRev. J. H. Sowerby, pastor of the church. In charge. Burial will be imade In Highland cemetery. Mr. Brimm was bom in Hiawatha and had lived in lola for ten years. During that time he had worked in the meat departments of the A. W- An{3erson grocery, the M. & M., the L. Foster grocery, Greathpusc's. and at the time of his death was emplojed at Fryer Bros. He leaves Ws wife and eight year old son, and three sisters, and two brothers, none of whom'llve in lola. JJ ^'V^™''^ r^'^","'? °^ °'-e^:|and suspicions hi regards to banks el. Mo., young school teacher at inn r,^.. .,„„^j i,.,f Trading Post, Kas., five miles north of Pleasanton. They had planned to be married next Saturday. Miss Halpaln drove to Pleasanton last night and called at the home where Collins roomed. Authorities were told Collins Informed, her he did not want to see her. Later they met on the street and Collins entered her car. They parked In front of the home of Mrs. Bertha Braden where Collins lived. Mrs. Braden told the coroner the couple sat a few minutes. She then saw Collins get out of the car and start to run. He fell 30 feet away. He was found dead with a bullet through his heart. , Miss Halpaln was found dead in the' car, also sho^ through the heart. An automatic pistol wiis on the floor between her jfeet. Miss Franklin said that days ago she saw a Ictte^ which Miss Halpaln had written Collins seeking a reconciliation. , Miss Halpaln's body wa^ sent to Pittsburg, Kas., this morning, Collins was the son of J. M. Collins of ColllnsvlUe, Okla. a few Revival Services Start. Revival services at the Pentecostal church. Second and Neosho, are ready to start In earnest tonight with the arrival today of the Rev. James B. Burrell, widely known evangelist, from Idaho where he has just closed a series of services. The public Is invited to attend each night. MRS. JIMMY WALKER ASKS DIVORCEi CHANUTE YOUTH IN JAIL HEBE Rexall Hamilton Charged With Bobbin; HoailNridt Stoic A 20-year-old Chanute youth who gave his name to County Attorney Prank Taylor as Rexall Hamilton, was bound over to district court today after a preliminaty botring in Humboldt on charges of burglary and grand larceny. He was placed In the Allen county jail when be f aUed to make $1,000 bond. The charges were placed after he was arrested ^ Humboldt by OWL- ceis there wfaO sllege he entered the Orange store and stole a shotgun and 93 ofvta in cub. Miami, Fla., Mar. 9. (AP)— Mrs. Janet Allen Walker today sued James J. Walker^ former mayor of New York CJlty, for divorce in the circuit court of Dade county. She alleges desertion. • Airs. Walker has been spending the winter in Miami. Walker is in Prance. ' Mrs. Walker made no request for alUnony or other financial settlement In the bill filed in circuit court. Her petition recites that Walker now is resid-: Ing at Cannes, France, and that since October 15, 1928, when he left their New York home and moved into a hotel, he lias "wilfully and obstinately" refused to resume marital relations. Mrs. Walker refused to discuss her action, referring all questioners to A. Prank Katzentine, mayor of Miami Beach, who is her attorney. Katzentlne had nothing to say. The divorce cannot be granted imder four weeks, attorneys explained today. Legal advisement of the petition will require that long. A copy of the petition will then be mailed to the former mayor's last known ;address and if the action Is not resisted, a final decree will be entered under routine practice. Divorcees may remarry under Florida laws immediately after final decree is entered. which are 100 per cent sound but will also mark the beginning of a new relationship between the banks | and the people of this country." The text follows: "To the senate and house of representatives: "On March 3 banking operations In the United States ceased. To review at this time the causes of this failiu-e of our banking system Is unnecessary. SufQce it to say that the government has been compelled to step in for the protection of depositors and the business of the nation. "Our first task Is to reopen all sound banks. This is an essential preliminary to subsequent legislation directed against speculation with the funda of depositors and other violators of position of trust. "In order that the first objective —the opening of banks for the resumption of business—may be accomplished, I aak of the congress the immediate enactment of legislation giving to tbe executive branch of the soTemment control over baiilts for the protection ot depositors; authority forthwith to open such banks as have already been ascertained to be in sound condition and other such banks as rapidly as possible; and authority to reorganize and reopen such banks as may be fbond to require reorganization to pat them on a sound basis. . I ask amendments to the federal reserve act to provide for such additional currency, adequately secured, as it may become necessary to issue to meet all demands for cuirency and at the same time to achieve this end without Increasing the unsecured indebtedness of the government of the United States. "I cannot too strongly urge upon the congress the dear necessity for immediate action. A continuation of the stranirnlatlon of banking fa-, cilities is unthinkable. The 'passage of the proposed legislation will end this condltiqn and I trust within a short space of time will result in a resumption of business activities. "In addiUon, It is my beUef that this legislation will not only lift immediately all unwarranted doubts and suspicions in regards to banks which are one hundred per cent sound but will also mark the beginning of a new relationship between the banks and tbe people of this coimtry. "The members of the new congress win realize, I am confident, the grave responsibiUty which lies upon me and them. "In the short space of five days it is hnposslble for us to formulate complete Measures to prevent the recurrence of the evils: of the past. This does not and should not, however. Justify any delay in accomplishing the first step. "At an early moment I shall request of the congress two other measures which I regard as of, Immediate urgency. Wlthi action taken therieon we can proceed to the consideration of a rounded program of national restoration. "tnANKUOi D. ROOSEVELT." "The White House," . "March ». 1833." MAY OPEN BY MORNING Law Says Sound Bank^ May Be Opened by Per- • mission of U. S. Washington, Mar. 9. (AP)—By almost unprecedented unity, jtiie house of representatives late today unanimously passed the drastic banking bill asked earlier by P^esl-. dent Roosevelt, and the senate pre4'| pared likewise for the "immediate action" which the president had said was imperative. All was In readiness for the White House to order reopening of "sound banks'! in the morning, H the bin should be signed Into lav granting the extraordinary powers requested by the executive. , The senate banking committee approved the bill after a two-hoiU: session, during which Senator Glass, (D., Va.), explained it. No record vote was taken, although it was im­ derstood two senators Opposed ft. 'Senator Fletcher, (D., Fla.), took the bill immediately to the senate for consideration on the floor at 4:20 p. m. The. house action was. by viva voce vote, party lines being swept aside by the unanimity of support for tl^e president to the emergency. If the bill is not changed on. the senate floor, and the same speed of action maintains as. did In the house, the prospect was for Mr. Roosevelt to get the legislation he requested for signature by nightfall. War powers for the president: topk sh^pe a few hours after the special congressional session convened today, as Its leaders heeded his plea for extensive authority over the na- I tion's, banks and to expand the currency greatly, "Our first task is to reopen ftll sound banks," .said the president :ln a concise special message. He asked, power to do so, and to allow for reorganizations of other Institutions under federal supen'lsion. •' The legislation was introduced almost Immediately in both branches, calling tor approval of all the president has done to date and to extend his war time power so he can deal as he sees fit with hoarding, transactions In foreign exchange,: and gold usages. The outlook was, if the law Is enacted by nightfall, for his. new proclamation to be under the new law, carrying- through the authority now being exercised over the bank holiday. Upon hearing from him a coutisel for utmost speed, the senate bahk- Ing committee In executive session labored through the complexities, of a mammoth banking revision bill. The aim was to get it ready for senate action by tonight, and house leaders likewise were inaklng preparations to expedite'the emergency legislation there. Senate in Adjonrmnent.' Meanwhile, the senate Itself stood in adjournment. The house worked for a- time on- disputed credentials of members, after elevating- Raihey of Illinois to the speakership.! • The new bill, as revised Irt conferences held to the last minute between the president, Secretiiry Woodin, federal reserve officials and senators, would authorize issuance .of new currency against government bonds, notes, drafts, bills, of -exchange and bankers' acceptance. Several billions could thus be jssued. The collateral would be deposited with the reserve banks, and currency issued equal to 100 per ceint of the face value of govemmeptiob- ligatlons and 90 per cent qf the sound value of other obligations', j In exceptional cases, it would empower the reservei banks to^ niake loans, under close restrictions; to banks; and to lend, also for 90-^lay periods to individuals and partnerships with government bonds; as security. To wipe out those practices of some bankers against which Mr. Roosevelt protested iri his inaugural address, the bill would prohibit banks from Indulglngt In any transactions except under regulatipns laid down by the federal or (In Case of state banks) the state governments. Only Sound Banks. < Only those banks whose absoliite soundness has already been asder- talned may be ojiehed immediately, under the bill. | Other banks 100 per cent sound would be opened as fast as therein be checked by the treasury department, i All banks that ^are opened could obtain cash resources necessary f^m federal reserve banks by deposit of goveriiment bonds and other to md collateraL Banks whose; credit was iwaa \o be impaJried would be plaee« uider government "conservators," who would receive no more coUipensation than ; other government employees of slpiilar responslbUltles. An amount equal to the sound as* sets of thede banks would be mads available>to depositors. Similar provisions would be - permitted state banks subject to the approval of the proper state officials. Furthermore, in the case of these partially reopened banks, new deposit^ would be received and such deposits kept either In cash or in federal reserve banks or In government- bonds. The full amount of these'special deposits could be withdrawn In full at any time. Federal reserve banks would be authorized to Issue currency not only agahist loans made on government securities but on other sound assetd as well, - tvmr to Comptroller. The bill in general would give the comptroller of the currency broad powers to conserve assets of banks for the benefit of depositors and other creditors; The comptroller would also be authorized to prescribe rules and regulations In order to carry out the provisions therein. The bill appropriates 2 mllliod dollars for necessary expenditures to be made xmder the direction of the president, and at his discretion for any purpose In connection with carrjing out provisions of the measure. T^e war time powers given to the president by the act of 1917 would be' broadened and extended to cover such national emergency as the president shall declare to exist.. The act takes effect immediately. While Democratic senators and representatives sought to get quick committee and congressional approval for his recommendations, the president himself remained at hla White House desk at work on related details. He did not deUver his message personally, but It wis read to the crowded senate and house chambers by clerks. One of the drastic provisions of the bin provides that whenever the res9i -ve board finds It necessary ta protect the gjold reserves of the system, it may by a vote of five of its metnbers require all member banks to deliver to reserve banks all gold coin, bullion and gold certificates owned by It. The reserve bank would pay to the member bank in rettuii, an, equivalent amount of any other fQrm of coin or ciurency, or give the member bank Immediate credit in its resei've balance. The president would .be authorized during any emergency period proclaimed by him to regulate and limit the extent of business dona by all reserve member banks. State banks would be subject to similar restrictions by staite, officials. The second section of £he bill pro« vides that when he decides It Is necessary, the comptroller of the currency may appoint a consenrator for such bank. • The conservator would have "all the rights," powers and privileges now possessed by or hereafter given receivers of insolvent national banlcs." • . The com/ptroUer could In hla discretion terminate the conservator-' ship and permit the bank to resume business under such restrictions as he saw fit to prescribe. While the bank- is in the hands of the conservator, the comptrQller could permit him to maKe available for withdrawal by depositors and other creditors such amounts as the comptroller felt were safe and to receive deposits which would not be subject to any limitation or withdrawals, but -would be segregated from past indebtedness. •Such deposits would be kept In cash, invested In direct United Sjates obligations or deposited with,: a reserve bank. ;when the bank was turned back to its directors by the conservator with or without a reorganization, the segregation of new ' dejioslts would end and they would be merged with the banks other holdings within 15 days. The bill would ratify the «eeutlvs orders IssUed by the president sod continue his authority 'over tbe banking situation; provide for oon- oentration of the nation's gold supply in the federal reserve banks; penalize hoarding; and provide for dontroUed expansion of the currency. The bill was Introduced by Senator Glass a>. Va.). > Senator Robhison of Ai^ansas, the ' Democratic leader, said be was con- yihqed the bill was sound and that if "passed today will assure the opening of many banks both national and state on tomorrow that are now closed." , Senate leaders planned to submit the measure hnmedlate:^ to committee after organization of the Senate with a view to reporting It back within an hour or two and passing It in time for house action today. Presidential Orders UpheU. "The bill," Robinson said, "rstlflos the orders and proclainatlons Ibeie- tofore Issued by tbe president' and secretary of ^ tieaSary, penalizes hoardtag, requh«s member banlcs to pay to the federal reserve bank bullion or epld certificates;.. tucb inenuifar banks ami to ,

What members have found on this page

Get access to Newspapers.com

  • The largest online newspaper archive
  • 11,100+ newspapers from the 1700s–2000s
  • Millions of additional pages added every month

Try it free