Show dl The Weather UTAH— Saturday and warmer Saturday Sunday 9 I 14 Local Metal Prices ’AV fair H WYOMING— Probably snow ID 4HO— Occasional snout NEVADA — fair south cloudy north (Detailed Report on Page Twenty-Fire- ) My VOL 124 XO 129 Silver 30 4 a Lcd S75c Copper 615c Zinc 235c CENTS 26 PAGES-FI- VE SALT LAKE CITY SATURDAY MORNING FEBRUARY 20 1932 3 cr”ai cr JE33I Tsa sa isa iSEI kJ HOOVER HITS BEAR RAIDS Senate Approves Federal Reserve CHINESE BEAT OFF TANK SURVEY ON ATTACK REGAIN VILLAGE COST CUTS Measure AS GREAT DRIVE BEGINS Credit y PARTY ASKS Chief Executive In- Bill Amended to Extend From One to Two Resolution Reveals American and British Gold Time for Years Protecting Officials Bolster Up Democratic Econ spires Regulation to LITTLE By HERBERT Limit Short Sales Treaty Zone Defense omy Plan United Press Staff Correspondent Share Loans Barred dm f if Rule Results in Quick Rise of Quotations on New York Board !' i F (By Associated Press) WASHINGTON Feb 19 — Close on the heels of action by the New York Stock exchange to limit the activities of bear raiders President Hoover today struck again at short selling The chief executive reported that In numerous conferences with stock exchange officials the government had aided in inspiring their various antishort rulings He then charac terized continuing bear activities as “not contributing to recovery of the United States ” Only last night the txohange imposed the latest of its series of curbs Officials ruled that after April 1 members would not be allowed to lend to the bears securities held on margin without the written consent of the owners Recalls Recent Rulings The move precipitated a sharp up ward swing In security quotations to day as the hors rused to cover Later profit taking put brakes on the upward trend The market closed irregularly but generally higher It Was only a few moments after he received the closing reports that the president spoke As he addressed newspaper corre spondents packed around his desk there was spread out on a table a few feet behind him an extensive Chart labeled “Security Prices Affect ed by Short Sales ” Saying he spoke in answer to ques tions from the press as to whether he had conferred with stock exchange of ficials the chief executive replied in the affirmative He recalled that despite the activities of exchange officials to limit bear ish activities over the last eight months there had been during the latter part of January "a large in crease In the short account which un questionably affected the prices of se curity and brought discouragement to the country as a whole” He added Urges Protective Measures “I and other administration offi cials again expressed our views to the managers of the exchange that they should take adequate measures to protect investors from artificial depression of the prices of securities for speculative profit” No mention was made at the White House as to the officials with whom It was the presidrtit conferred known however that he talked pri vately last week with Richard Whit rey president of the New York Stock exchange The chief executive has kept In the closest touch with the activities of bears upon the market It was re ported reliably recently that he had secured the names of the principal short Sellers in New York Considers Tactics In the Same authoritative quarter It was said that Mr Hoover had con sidered various actions to prohibit One of the most these activities stringent of these concerned the gov ernment’s power to limit Interstate communications of those believed act ing against the common good A (Continued on Pse Three (Column Three) ) WASHINGTON Feb 19— The senate late today passed without record vote the administration’s federal reserve credit and currency and expansion bill designed to increase federal reserve credit to banks and buttress American gold reserves The measure was amended at the last minute to extend from one to 4 two years that section providing for emergency issuance of money to protect gold reserves and for loans to individual banks The other section of the bill providing for loans to groups of banks is without 11 nit Bill Goes Back to House The bill now goes back to the house which passed it last week for adjust This protedure ment of differences is expected to delay President Hoo ver’s signature and final enactment of the measure until the middle of next week because of the week end recess and the observance of Washingtons birthday Not a single voice was raised in op position to the bill when the vote was taken The measure provides 1 Permanently that groups of five or more national banks can borrow from the federal reserve on their notes and collateral upon approval of a majority of the federal reserve ()pard 2 Until March 4 1934 that indi vidual national banks of $2000000 or less capitalization in emergencies and on the federal reserve board s approval be advanced money on their notes and collateral by the federal reserve Foreign securities are barred as collateral for loans under either of these provisions 3 Until March 4 1934 federal reserve banks can use United States government bonds as a basis for cur rency issue with the legal gold reserve of 40 per cent The third provision was drafted according to a coauthor of the bill Senator Carter Glass (Dem Va ) to prevent threatened “raids” by France and other countries on the nation's great supply of gold much of which is “earmarked” to meet European ob ligations in this country The bill was the climax of the president's economic and financial rehabilitafton program First was the Hoover moratorium Second was the Reconstruction Finance corpora tion bill to lend $2000 000000 to ail ing banks and railroads These were followed by the presi dent’s action to bring out of mat tresses and kitchen stoves an estiof mated $1300000000 hoarded money The credit liberalization plan was brought forth just a week ago to sup plement the Reconstruction corpora tion’s work to free assets and col lateral now held inactive and nonpro ductive in the vaults of banks by bankers Western independent senators at the end of three days of senate de bate lost 18 to 52 an attempt to bar the use of all federal reserve funds in the stock markets for speculative purposes Senator John J Blaine (R Wis ) sponsored this amendment charging that the federal reserve board s fear of a French gold raid was “another bogey man ” He charged that the currency section will allow Issuance of money in the form of federal resrve notes backed by “nothing more than scrip or greenbacks ” Blaine charged the administration’s program was based on “fear” nur tured at the front door of the White House "The people have been told bear stories bedtime tales and that the goblin will get you If you don't watch out” Blaine said He cred ited Senator Walcott with having dragged ashore "an ugly horned (Continued on ? Two) Column WAR? From Ante comes echoes and rumblings of war while In Europe elaborate plana are made for peace Read the latest development fully covered In The Tribune DISARMAMENT CONFERENCE By FRANK H SIMONDS Then there are hundreds of other regular features You 11 find Fsnnle Hurst Kathleen Norrts Will Rogers O O McRobert Ripley Mark Intyre Sullivan Hurry J Brown and a score of others Don’t Miss Your Sunday Rf Salt £ak pifomt 19 Feb WASHINGTON (UP) — The treasury announced today the "baby bonds” to be sold to the public as part of President Hoover’s antihoard-incampaign will be in denominations of $50 $100 and $500 They will mature In one year and bear not less than 112 per cent interest The total amount of these known as bonds officially treasury certificates was not announced They will be of fered through the banks on or about March 7 g LEFTIST FAILS IN ORGANIZING PARIS CABINET Pa ini eve Gives Up When Laval Tardieu Refuse Seats (Br Aaaoriatrd 2479 Pri) PARIS Feb 20 (Saturday )— Former Premier Paul Painleve announced this morning after a night of unbroken conferences that he had abandoned his attempt to form a ministry to succeed the cabinet of Pierre Laval M Painleve attributed his failure to the refusal of M Laval and former Premier Andre Tardieu to go along with him in a ministry of leftist complexion At 4 a m he started for the Flvsee palace to inform President Paul Dou-mof his decision Later in the day the president will begin again his search for a premier and in political circles it was considered likely that he would call upon M Tardieu had eban Painleve previously doned attempts to form a "concilia tion” government and decided to draw all of his ministers from the left wing which overthrew the Pierre Laval government President Paul Doumer was informed of the decision and Im mediately vetoed it reminding Pain' leve that he was not authorized to form a left wing government The premier-elec- t then renewed his efforts to reach an agreement with the right w Ing facton represented by Andre Tatdieu former premier and Laval Tardieu however ob jected to Painleve t failure to give the right factions sufficient represen tation and announced that he would not partclpate Tardieu also said he would not return to head the French delegation at the Geneva disarmament conference because of Palnleve's attitude er Workers to Reduce Expense CHICAGO Feb 19 (UP)— "I am hope that we ran pay something In heaitbroken” Mayor Anton J Cer the way of salaries The wealthy mak assured Chicago’s councilmen to- simply must come to our rescue ” day but what I am about to propose Adjournment of the state Icglsla must be accomplished if our city Is tuie this week without having passed to survive ” laws enabling the immediate collei The mayor thereupon urged the tion of back taxes brought this latest city fathers to discharge 2479 mu- crisis upon the city he explained nicipal employes ns the first step in “Yes” agreed a patnarchnl alderskeletonizing the government of bank man white haired and attired in a rupt Chicago pule gray cutaway suit “the lcgisla And In two or three months we time done us wrong ’’ shall have to lay off three or four The aldermen voted Cermak s em thousand more workers” continued ploye discharge proposal with its Cermak In a voice hardly audible in i$HOOOOOO annual saving Into the the ornate city council room where finance committee lliey decided former Mayor William Hale (Big next to urge upon the governor next Bill) Thompson held a Wild West Tuesday the calling of another spe circus a year ago for the amusement clal legislative session to consider of his constituents Chicago s plight Finally they dis “The sooner the taxpayers realize cussed ways and means of collecting ‘ we can’t function without money the better off they'll be” said Cermak adding that he had prevailed on the unpaid school teachers not to walk out immediately as they had threat ened “We shall appeal to all taxpayers who haven t paid anything in 1928 and 1929 to come aross with at least a little" he said ‘The teachers will urge parents to pay up With the faint promises we have there Is U S Troops in Move Seeks to Save Envoy League Calls Special Session of Assembly to Hear China’s Plea An- nually $50 Upward the millions owed in taxes for the last three years ' We ought to shut off the water In every house and building In this city that hasn t had Its taxes paid up'” shouted Alderman John Toman "There s too many mom hers In Chi cago” His excitement got the better of his grammar He continued “Ain t you gentlemen anxious to find out the tax dodgers’ feure you are ” Peril PROGRAM DRASTIC U S Citizens Depart $800000000 Priced From Chicago Mayor Urges Suspension of PEACE OR One) Baby Bonds’ Nipponese Bring Up Men and Munitions In Vast Quantities By ARTHUR SEARS HENNING Tribune Salt Lake Trlbune-Chlcag- o Service WASHINGTON Feb mg the Introduction of a resolution in the house today for the creation of it became an economy committee known that the Democratic leadership of that body is perfecting a program of radical deflation of the paternalistic subventionary and regulatory activities of the federal government now costing the taxpayers more than $800000 000 a year This is the first definite step taken by the responsible majority of either house of congress In the direction of the objective of the fight for radical reduction of federal expenditures and for withdrawal of the central government from activities originally conceived to be the functions of the states With a tidal wave of popular sent! meftt now sweeping the country in favor pf the plan and constituents raining demands for action upon senators and congressmen the leaders of the Democratic house which controls the national purse strings found it expedient to initiate a policy con templating a more radical scheme of retrenchment than the cheese-parineconomies in expenditures being effected by the presidents budget bureau and the house appropriations committee Program Outlined The Democratic program provides for action along these lines 1 A survey of the economies possible of accomplishment m the administrative branch of the government by every means including the transfer and consolidation of bureaus boards and commissions and other re organization and abolition of activities representing encroachment jipon the functions of the- states 2 A horizontal further reduction of appropriations for the next fiscal to be effected by a joint resoyear lution of congress after the passage of the last of the appropriation bills at this session 3 Elimination of paternalistic and unnecessary activities to be effected immediately by cutting off appropriations for the bureaus boards and commissions involved and eventually by repeal of the acts creating the units Result of Conference This course was agreed upon at a senes of conferences In the last 48 hours In which Speaker John N Garner Majority Leader Henry Rainev Democrat Illinois Chairman Joseph W Byrns Democrat Tennessee of committee and the appropriations Chairman John J Cochran Demoof the committee on crat Missouri expenditures in the executive deg partments participated In pursuance of the policy adopted Representative Lewis W Douglas Democrat Arizona member of the appropriations committee Introduced in the house late this afternoon a resolution providing for the creation of an economy committee of seven members and the rules committee prepared to procure its immediate adoption The members are to be Chairman Byrns and Representative M Wood ranking Pennsylvania Republican minority member of the appropriations committee Chairman Cothran and Representative William Williamson Republican South Dakota ranking minority member of the expenditures committee and three others to be named by the speaker Report Due April 14 The resolution directs the committee to investigate “economies’ in the federal government which may be effected without impairing the necessary functions of the government and to report the findings on economies to the appropriations commit tee and on reorganization fo the expenditures committee not later than April 15 next Faim the Republican side there came two moves toward retrenchment William P Representative Holaday Republican Illinois offered a resolution to carry into effect President Hoover's government reorganIt would ization recommendations authorize the president by executive orders within one year after adoption of the resolution to abolish or boards combine any commissions departments bureaus or divisions congress to be advised thereof within 10 days By the terms of a proviso the aggregate pav of employes of the reorganized unit might not exceed 80 per cent of the aggregate pay of the unita replaced Fears Shells and Urges Removal of Women Children INVADERS REPULSED SHANGHAI Saturday Feb 20 (UP)— Japanese troops were repulsed in the first phase of their big offensive today when Chinese troops fighting stubbornly recaptured the village of Kiangwan and beat off a tank attack Lieutenant General Uyeda Japanese commander immediately moved bis headquarters to the Kiangwan front where the fighting was proceeding furiously (By United Press) SHANGHAI Saturday Feb 20— American and British officials joined today in feverish efforts to strengthen military protection around the inter national settlement and to evacuate foreigners from the zone of greatest danger in the impending battle be tween Chinese aj)d Japanese United States Consul General Ed win S Cunningham and British Con sul General John F Brenan pub lished a joint notification to American and British residents of the Hongkew and Yangtzepoo districts to evacuate or be prepared to take to cover Scores of Americans moved to safer (Copyright districts The two consular officials obviously showing the strain of many hours' work in the last few days emphasized the danger of shells falling in the This map shows the situation of the various settlements at settlement and urged that women and children be transferred to places of Shanghai where the Japanese army Friday launched its safety Immediately offensive The shaded portion is the international settle“We are holding both Chinese and ment peopled by Americans British and French To the north is Japanese responsible for all damage Chapei the Chinese settlement where the new battle opened done to the settlement both m the present and in impending fighting” Cunningham declared Hospital Patients Moved The American church missions and patients m St Luke's hospital in Hongkew the base of Japanese ma rlne activities were moved to the comparative safety of the French con cession “Even here or In other parts of the settlement we can’t be more than 75 per cent secure" Cunningham said when questioned as to the danger to (By Associated Press) some 5000 Americans In the settle WASHINGTON Feb 19— President Hoover's cabinet was acment of American British French and Ital cused of having “desecrated Lincoln’s birthday by their eulogies Ian military officials visited General Hoover” by Representative Black (Democrat New York) in an adTsai Ting Kai Chinese commander of dress in the house today He asset ted that the cabinet next Mon-‘te- ll the 19th army defending Shanghai Hoover us would and urged him to avoid shelling the day " "Next Monday the cabinet officials settlement General Tsai promised just like Washington 'he Chinese would fire only on the Mr Black made his attack after will turn the tide and tell u Hoover had is Just like Washington Imagine Japanese positions which are In the support for President HooverWood been urged by Representative Hongkew and Yangtzepoo areas Hoover and the Wickersham commis said the who Indiana "We are returning every shot the Republican sion crossing the Delaware without Japanese fire" General Tsai said ask chief executive has faced greater rocking the boat” which the ing whether foreigners would be able trials than those through ” Wood said to leave the settlement if such action immortal Lincoln went ‘ I believe that If the people use became necessary Cunningham said "Hoover's supporters threw the dirt now they won’t change good judgment of word no at restraint with Smith they' would remain " 'the chief"’ Blatk said “They hmses In the middle of the stream from Japanese Seek Safety Representative Blanton Democrat did not even spare Smith’ family No The Japanese military and consular ha ever abused Hoovers offi Texas reminded Wood that in 1929 officials also were evacuating their body It Is too funny to be the Indianan said ‘Herbert Hoover clal family is the most extravagant luxury ever nationals from the danger zone in abused people Hongkew which already had been “Yet the cabinet conducted Hoover fastened upon the American deserted by thousands of Japanese memonal services on Lincolns birth- and will continue to be " lesidents The Japanese high com day It was magnificent tribute to Wood Answer Crltlrlim mand ordered all Japanese residents the politically dead “Well at that time the man who In the northern part of the settlement “They told us that Hoover was like now is vour leader Mr Rainey Demto leave before last night The civil Lincoln Mr HooImagine Hoover tolerating ocrat Illinois was lans concentrated In the Japanese a general who violated the ‘noble ex ver” Wood retortedpraising club the Buddhist temple and other periment' like Grant Imagine Lin "That was before he found him out ’ points outside the zone of greatest coin watching a nation starve and Blanton replied danger yelling 'three cheers for Lincoln’ As (Connllntifd on Paae Two) There was one sharp note of con usual the cabinet was wrong Column One) trast to the fear of great danger in the coming battle A majority of the lesdents of the settlement within the area protected by United States and British troops were nonchalant and (heerftil last night as they gathered in hotels cabarets and motion picture houses until the curfew sent them home Accustomed to the sound of battle they did not appear to be wor WASHINGTON Feb 19 (Aj— A sen and Ashurst Democrat Arizona at ried by the coming hostilities subcommittee s reaction to tachcd so little weight to Anderson’s American passengers on the S S ate President Lincoln and other liners in charges that Judge Benjamin N Car claims that it took only a few min the harbor bemoaned their “liitk" be dozo had shown "gross injustice” in utes after he was through to decide cause they were ordered to sail earl) with a forgery case was quick on a favorable report to the full com this morning before they could hive dealing and unanimous approval today of his nnttee It in turn will report to the a chance to see the of hos opening seriate nomination to the supreme court tilities The only other protest was with It dismissed a complaint by Wil (Copyright 1932) ham H Anderson former superintcn drawn today O R Miller superin tendent of the New York Civic league Senate Confirms dent of the New York Anti Saloon had asserted before the nomination league who served a term In Sing that to name Cardozo would be an Envoy to Japan WASHINGTON Feb 19 tP)— With Sing after conviction on charges of "affront to the dry sentiment” in New books of the league York In a letter placed in the rec a crisis approaching in the Japanese altering the Chinese controversy at Shanghai the Anderson now general secietary of ord today he said he presumed after the American Protestant alliance all that Cardozo was a “great law senate today appioved Joseph Clark his (Ji ew to shoulder this country s diplo testified under oath before the sub yer” and he wished to wllhdiaw ” a room crowded with complaint In committoe mntlc burden at Tokyo men and Anderson also criticized other newspaper He is to leave his post as ambassa spectators He said he was convicted of a "flc judges who heard his case including dor to Turkey within a few days and fortitiou called ’third crime Senator Wagner Democrat New degree is expected to relieve W Cameron " Forbes as envoy to Japan within six gery’ and thRt the action of Judge York who berved on the supreme or seven week En route he will Cardozo in refusing him bail while court of New York before coming to come to Washington to disruss far awaiting the decision of the New the senate eastern problems with President Hoo- York supreme court was “more The witness said Wagner had de worthy of the most slippery police nled him a writ of reasonable doubt ver and Secretary Stimson to Meanwhile data on the tense situa court pettifogger than of a prospcc md as a result had been "promoted tion were laid before President Hoo tlve Justice of the” supreme court of the senate by Tammany “ Senator Ashurst resented the re ver today by Secretary Stunson at a the United States The judiciary subcommittee com flection on Wagner saving he was one prolonged conference but officials posed of Senators Robinson Indiana of the ablest members of the senate (Contimif1 on Pm ftrvcn) and Schill Minnesota Republicans and a man of high Judicial ability Column Four long-await- ed Hoover Eulogy Mars Lincoln Solon Avers NYDemocrat Berates Cabinet Says ‘They’ll Next Liken President to Washington’ ‘ Senators Approve Supreme Court Nomination Discrediting Protest 1932) SHANGHAI Feb 20 (Saturday) (UP)— A shell fired during the height of the Japanese offensive today completely wrecked the headquarters of a United States marine detail guarding the Tungyin cotton mill within the boundaries of the international settlement The marines had Just vacated the room to change guard and none was injured fc (By Associated Press) The big Japanese push aimed at overwhelming the stubborn 19th Chinese route army that has been defending Shanghai got under way with the deafening roar of guns Saturday morning and there was every promise that it would develop into the greatest military action since the world war At 8 50 a m Japanese guns roared forth from their positions In Hongkew park A few minutes later the Chinese artillery accepted the gage of battle The bombardment by both sides was of terrific proportions Japan’s ultimatum that the 19th army— heroes of all Chinese because of their performances In the field during the last few weeks — withdraw 12 miles from Shanghai had expired at 7 a m A Tew minutes after 7 o’clock five Japanese scout planes sped into the air and reconnoitered over the Chinese positions In Chapei Filers Find Lines InUrt It was a thick foggy day but the airmen could see enough to indicate that the Chinese front lines were intact — that the Chinese army was defying the ultimatum That word was brought back to Japanese headquarters and soon the big push was under way The Japanese command rushed men tanks mnchlne guns and field pieces toward the front In vast quandeep-throate- d tities The troop preparation had been going on all night long but until the big guns spoke at 8 50 o’clock the battle zone had been comparatively quiet Only a burst of machine gun fire now and again told of warfare After the big Japanese guns had started their streams of projectiles toward Chapei headquarters ordered up ten huge bombing planet each of them carrying a full load of explosives It was evident that the criss cross of Chinese trenches In Chapel and Kiangwan was In for a terrific battering Fifty Planes Lined Up Across from the Japanese headquarters 50 airplanes were lined up in a newly built landing field Their (Continued on Puto Svcn) iColumn One) Will Rogers Says: Feb 19— Just TULSA Okla flew In from Chicago Was going over to Claremore tonight but the hotels Rre all so full goirg to have to stay here in the edge of town I see where some line is going to make aviation pay bv taking It out of the pilots’ salary When they stait hiring cheap pilots I will stop flying That s what’s built up what confidence In aviation we have — is the experience chaiac-te- r and dependability of our pilots I think they are Just about the highest type bunch of men wo have I am Interviewing all the candidates to see what they are running on if anything Just outside a desire so I got to see our Governor Bill Murray Yours v Pc I |