Salt Lake Tribune | 1933-10-15 | Page 1

- m 1 i WEATHERl'FORECAST- UTAH— LOGAL METAL PRICES Aenerdly fair 8un ! day Monday IDAHO WYOMING and NEVADA — Fsir Sunday Monday (Detailed Report Page 11-- B) VOL 128- - Entered at the pottofffe Lake Oita aa Becood-Cla- u NO 1 at Balt Matur SALT LAKE CITY UTAH SUNDAY MORNING OCTOBER 15 Gold (newlyTnlnedl (2983 Silver 36c Lead 450c 8®850o Copper Zinc 475o Local Weakly Sattlamsnt Price Lead 450c a 865c Copper 1933 72 PAGES— TEN CENTS 4 I f h !sa EARLY OKEH Backs Up Allies RICH SCION Faces Prison Hitler’s Bolt From League : Of Nations an d Arms Parley Stirs Menace of Europe War HELDGDILTY vy IBIGTHEFI 1 Jury Convicts Chicago Man of $1200000 Embezzlement k - " -- i 11x -- Meeting Four-Pow- er JJ Called Sunday to Study Action U S WILL ATTEND v — - - - v : h - would soon be approved by the public works board and the president He that some other pending Utah projects will soon reach the final stages Whether Utah projects will be acted upon next Tuesday or next Thursday the governor did not learn but he feels confident that the coaling week will be an Important one to Utah In the allocation of public works funds Governor Blood was accompanied by Secretary of War Dern and the three had a friendly and enlightening conference-Governor Blood told Secretary Ickes something of the disappointments he has been meeting In the past two weeks ln-- h is repeated conferences witoTCfflclals of the public works board made clear to him the urgency of putting men to work In Utah and explained that So far as the Utah state program was concerned t was submitted in concrete and complete form and rated action 10 days ago Explains Delay The secretary countered with an explanation of toe congestion In his but said he could appre-:iat- e the governor’s desire for early decision and assured him he would not have much longer to wait The secretary did not commit himself definitely as to toe projects butonGovernor toe state Blood looks for first action program and Salt Lake city school program and then on the Moon lake Spring City and Ephraim irrigation the Deer projects and he hopes to have toe very creek project considered in near future conversathe Secretary Ickes during tion made ah allusion to the need for an equitable distribution of the public works fund among states and reminded the governor that Utah already had received nearly four million for two reclamation projects and more than four million for highways exFor past allocations the governor pressed his appreciation but pointed Pae on (Continued - Seven 1 Five) (Column Sunday Tribune Neivs Summary Parade of the Week’s Eveiftt— A brief and interestin review comprehensive of tha newt of th past week from neat and far Fate l-- C and C LOCAL Early approval of Utah public works program assured Pare I Hogle reports Wall street confident f big 0 - silver purchase Page side predict victory In battle 18-- B vet prohibitions repeal Page Assets of Western Loan St Building recommissioner company safe12-- hank B ports Page Congressman Murdock urges Utah to vote for repeal of the prohibition law i Page 12-NATIONAL ftmnd mlllionalr (nitty Chicago’ Of embenlement Pag I Trace declared In coast cotton strike Paga t rtra billion dollar works' 'fond (oal fixed Pag 1 Tammany Joint McKeo In defending Lehman Pag 1 Foreign event fall to excite Wall street Page L WORLD NEWS BItlef stuns world by bolt Pag L League of Nation Vi — VonHlndsnburg-dUsolvesrelchst1 Pag " u I barks I ai' ' from Ger- -- C Pag Serial "Mystery of the Private Car” Page D l-- B Classified advertising Page A t 11-- B ' SUPPLEMENTS Tribune Junior of th Twalr page (By United press) CHICAGO Oot 14— Ernest J Stevens scion of- a family listed in the Blue Book of Chicago finance tonight was found guilty of embezzling (1200000 in moneys of the defunct Illinois Life Insurance company Norman H Da via who repraaenta in a vain effort to save the tottering to United State gavenunent at finances of toe Stevens hotel world’s Geneva where Germany’s attitude haa precipitated a erlsis In world af- largest Ready to Stabilize By J R BRACKETT Associated Press Business Writer WASHINGTON Oct 14 — The American government it was learned tonight on high authority does not yet consider pricks high enough to warrant stabilization of toe dollar? Although in many other respect toe currency program remain in the “when as and category It was learned that present Administration thought inclines to these belief: That issuance of Small bonds definitely retirable out Of toe budget for the purpose of retiring Interest bearing government bonds would not con stitute “greenback” Inflation That it would be absurd to attempt In present circumstances to stabilize the dollar dgalnlst foreign exchange That the present credit expansion lii Itself is intended to be inflationary increasing buying power That it still u toe purpose to redeem government securities in dollars of toe same value as those borrowed On the same big) auttority It can be said that the president feels his monetary policies are at this time as apparent and definita as possible that there is no monetary uncertainty aside from the uncertainty which is inherent in an economic situation of toe present character and that in a general way future monetary policy will depend on the “when as and if” necessity He may soon at a time not yet chosen discuss 'toe monetary situation in an explanatory way and in terms of the multitude of alternatives which may be selected as circums-stanc- e in the unpredictable future may indicate There may be changes at any moment The fact that toe president has said he would use his inflationary powers "when as and if ' necessary does not forecast that any decision on the question as a whole will be promulgated at a given time fC Graf Zeppelin to Visit Chicago on Current Trip 4 FR1EDRICHSHAFEN "Germany Oct 14 (UP)-- The Graf Zeppelin tonight started on a triangular flight to Chicago via South America The Zeppelin’s course will carry her to the inland port of Akron Ohio en route to Chicago She carries 23 passengers of whom eight were looked for the round trip In the cargo were 200 white mice consigned to Rio de Janeiro and 420 kilograms of mall and freight This was the Zeppelin’s fiftieth crossing and her 347th air trip in 0 which she has covered more than miles and carried 8697 passengers 400-00- Stevens was found guilty by a Jury in criminal court shortly before 8:30 p mx after about six hours of deliberation The onetime millionaire is liable to a sentence of one to ten years on each of the two counts contained in the indictment Stevens a short Stocky man heard the reading of the jury’s verdict without emotion His attorneys immediately entered a motion for a new trial which will be argued November 4 Freed en Bond The verdict came vjulcklF"tthe end of several weeks of involved testimony tracing the financial transactions and interrelations of the hotel corporation and the insurance firm each entirely controlled by the Ste- vens family The charge la based on an advance of insurance company funds to bolster the hotel which faced a financial crisis due to toe depression After the jury’s verdict was read Stevens reached for his hat and walked slowly from Judge Michael He smiled at Feinberg’a courtroom reporters and asked nis attorney what the next legal move would be He was freed on the same bond of $25 000 which had previously been in ef- fect The Stevens case was a direct growth of the deepening effects of the economic depression The Stevens family had risen to financial and social power with the growth of Chicago James W Stevens elderly father of Ernest was credited with founding the fortune which his sons Ernest and Raymond W who took his own life last winter increased manyfold All three were indicted as a result of revelalons of their financial operations in toe months preceding the crash of the Illinois Life Insurance company last fall The life insurance company was the first interest of the family It had policies of (165000000 in effect and was so organized that toe family with an investment estimated at nearly (30000000 had aole control of its policies Expansion in the boom era of'the ’20s wrecked toe family fortunes Ernest Stevens branched into the hotel business The La Salle hotel one of the larger Chicago Loop hotels was acquired ’Then came plans for the Stevena' hotel— the world’s largest It was completed on a magnificent Michigan boulevard property just as toe panic of ’29 broke Invested la Hotel Funds of the insurance company had been invested in the (22000000 hotel project The pricking of the financial bubble revealed the city with more hotels than it needed The Stevens hotel had lean patronage in its million-dolla- r structure More out- (Continued on Pane Blxt (Column Bight) fairs FIVE BILLIONS-FIXE- D AS GOAL IN WORK FUND (J (By United Press) The moot serious crisis since toe World war broke over International efforts to peace and disarmament Saturday when Adolf Hitler’s nazi government announced withdrawal of Germany from the League of Rations ’ and toe arms conference Th German action created" Such V wave of resentment tost observer! at Geneva feared it would wreck the arms conference entirely and gravely endanger th league Itself A momentous meeting of statesmen at Geneva tomorrow will discourse on future courses The United States will be represented Ambassador Norman H Davis chief United States delegate to to today strenuously opposed immediate rearmament of Gem-ms- - i Atom toe first reaction was alarm and there was unofficial talk of action against the reich Including proposals in France for a “ring of steel” around— the reich Austria strengthened precautions for a pos stole armed clash y Leaders Administration May Ask Congress for Increase - - WASHINGTON Ad Oct 14 By JOSEPH E SHARKEY ministration leaders art giving Associated Press Staff Writer thought to the possibility of asking GENEVA Oct congress at its next session to increase to (5000000000 toe fund aet up under gathered here with the fundamental peace asked the national recovery act for public aim of consolidating themselves anxiously today along works In rounding out Monday its 100th what road Germany’s withdrawal toe League of Nations and toe day the public works administration's from allotments from toe present (3300? disarmament conference would lead 000- 000 fund will total morp than (1? them Arthur Henderson president of toe This sum has been as709000000 convoked a signed to more than 7000 federal and conference tonight meeting for 11 a net Sunday to nonfederal projects with the government agencies receiving by far the discuss toe disarmament situationam Norman H Davis American larger share Under the present plan toe re- bassador at large Sir John Simon Joseph mainder of toq (3300000000 fund will British foreign secretary French foreign minisbe allocated mostly to nonfederal and an Italian delegate will atprojects although a considerable part ter of it running perhaps into several tend toe words "Let Germany go hundreds of millions may be divert- weOpenly shall get along without her” were ed to the propped federal corpora tion to establish low cost housing heard but secretly jthe world leaders in Geneva were seriously disturbed units throughout the country for toe future Many Mora Projects Many of them expressed profound Secretary Ickes the public works dismay tost Germany dropped from administrator is known to feel that the arms conference from which some by January 1—toe date upon which quarters expressed a hope for a solhe expects the full (3300000000 to emn and sscred treaty to tighten the be completely allocated —there Will fabric of peace restore world confibe many nonfederal applications for dence and terminate a costly armaments race funds on hand He is understood to believe that Spokesmen for toe Little Entente who never among these there will be many ap- nations and Poland the plications from municipalities and favored western European peace pact other political subdivisions which will contend they must pay taxes to inspired by Premier Mussolini foresupport allotments to other communi- cast tonight that the retch’s twofold ties and therefore should be given decision would mean toe death of an opportunity to have their share of four-pow- Paul-Bonco- whole-heartedl- y four-powe- r -- that-accor- the projects In addition there will be considerable number of federal projects including a long list of planned buildings on hand by January 1 Only a few postoffices have been built out of the present funds Predict Trenble ce Tammany Joins McKee in Defending Lehman Against Seabury’s Attack —Tam- - Mayor Jamas The fusion many Hall Joined Joaeph V McKee leader was counsel to the legislative committee independent mayoral candidate toThe Democratic party resents exday in scurrying to toe defense of ceedingly the attacks being made on toe regularly Lehman quiet retiring Governor Herbert H Governor Lehman repeatedly attacked by Sam- elected candidate of toe Democratic uel Seabury fusion strategist party” said former State Senator Hailing Seabury’s criticisms of the Abraham Kaplan Tammany manager record of Lehman friend of President of O'Brien’s campaign Roosevelt (s a political blonder Calling Seabury’s attacks on Govforces behind Mayor John P O’Brien? ernor Lehman “slanderous" McKee Tammany nominee and McKee raced challenged Fiorello H LaGuardia fueach other In attempts to capitalize sion candidate to disavow unequivoon them cally “the man who dictated your Governor Lehman found himself nomination and speaks for you the central figure in the city’s bit- nightly" terest mayoral campaign in years— “When Mr Seabury made toe with Tammany Hall which fought charge that Governor Lehman was unsuccessfully last year against toe responsible "for allowing to go free president and former Governor Al- ‘criminals who stole' a good part of fred E Smith to block hianomination (10000000 (relief funds) ’ dictator uttered a base and joining- in hi defense His voice shaking Seabury had reckless slander" McKee telegraphed — 14-- ( Whither leads the road of armaments - beginning la an Impediment? r A statement by tha public works administration tonight said that “hundreds of thousands of persons have been put to work directly end indirectly" It' predicted that the number “will increase steadily as hundreds of pro) acts move into actual construction” CONVICT RECAPTURED CLARKSVILLE Texas Oct 14 VP —Dallas Hunter escaped convict from d the Angola La penitentiary was cap-ture- ' t ’ best in late - t i Hi er U Supports Allies In Opposing Gennany ' 1 '’w ' i Disarmament Meet Cannot Be Means of creasing Arms Say Officials In- (By Associated Press) WASHINGTON Oct 14— The United States tonight was disclosed as standing firmly with its one-tiallies In opposition to German rearmament end in support of the arms eduction plan which led the reich to bolt both the Geneva conference and the League of Nations This was made clear In a statement that followed official expressions of vis declared his support of the arms concern and great disappointment reduction plan submitted to Germany the Hitler government s sudden ac- - by Sir John Simon foreign minister tion and an aasertion by Secretary if Great Britain after talks with other Hull that toe German Withdrawal nations including' the United States would halt the entire movement France and Italy toward disarmament In direct language the Roosevelt administration asserted its position “that a disarmament convention could not properly be made an instrument for rearmament and that qualitative equality in armaments should primarily be Sought through the reduction in toe armamenta of th heavily armed powers and not through acts on the part of others to attempt to build up" f e This plan which Germany answered by abruptly quitting toe conference and th league called for a preliminary period tentatively set at four years during which European armies should be transformed to a militia basis and an international supervision of armaments established to make sure agreements were carried out faithfully This would be followed by another four-yeperiod in which equalit-woulbe brought about through gradual reduction of armamenta of toe heavily-armeand through power permitting German to have whatever arms finally were permitted other power The scheme involves toe principle that toe powers now under restriction of the peace treaties should not begin to increase their armament forthwith but should express their willingness to confQrm to a time table such as I have indicated” Sir John said Hii speech also was- made publiq at the state department ’ Davis said he wanted to assure those who have become impatient of the long delay to Obtaining rest disarmament that he was “more than ever convinced of the sincere purpose of the heavily-armecountries to make effective measures of disarmament i -- - d credits' tied up in Germany had led bankers to take a hopeof ' ful view the prospect of eventually reality” getting the funds out of Germany He added that American participawhich are now tied up in the stand- tion in a system of supervision would - short-ter- still agreement But some (200000000 in German municipal and corporate dollar debt is going into partial debt this month in keeping with the reich’s new plan of paying half the interest in dollars and the remainder in certificates for blocked mark ’which may not be transferred from Gennany Many of her creditors have expressed doubt as to the necessity of such a step A recent analysts by toe American Council of Foreign Bondholders Inc said: “Since German official statistics continuously refer to impressive gains registered to toe various branches in-of the economic life of toe nation considerable ex cluding above gains tn pansion’iS foreign'trade-anbusiness it is difficult if shipping elf -- V not be Justified unless the treaty con-tamed me arm reduc With deep concern in hi voice Secretary Hull told 'correspondents the German action had dealt a stag gering blow to the whole movement for disarmament and that toe United States was seriously disappointed and deeply regretful As to the dangers Inherent in the determination ot Germany to go it alone neither toe secretary nor his foremost advisers would undertake to predict in the absence of complete official advices from Ambassador Dodd at Berlin concerning the of the move — however Prlvatetjnhey-Tigreedthat thejogic pf events pointed In dangerous direction quarrel' - treaties with a really fanatical fidelity “The political leadership of the na- tion at that time however was In the hand of men spiritually rooted in the world of victor states "The German people ahould rightly expect that for this reason alone the rest of toe world would redeem its promise but for 15 years the German - on Fate Sisl (Column Three! 4 ' - people have Vainly hoped and expected that toe end of the war would fiand nally also be the end of' lutred ' 7 7 7 misery '“The purpose of the Versailles treaty has not seemed to give human- ' ity peace but rather to maintain a fathomless hatred” Then he described a “slave work the treaty ot Versailles end asserted:' Deny Any Guilt “The German peoples are the most y convinced ot their guiltlessness for the war “Let the other nations see to it that by tha unnatural etemalization of the conceptions of the victor and the vanquished that there does not result en eternal inequality of rights” The government issued another ap- peal also condemning what wal I (Continue on Fsn BIX) (Column On) The Mystery of the Private Car c v ' s MURDE- RROMANCE- - THRILLS ' A new gripping serial Read it from the start ±1 Begin It TODAY t 'Germanjrsppftrently-hstfieft-the-(Continu- --- He poured forth his nation's hope and grievance He bespoke the coun ' for defensive weapon try’ declared that “toe men who today lead Germany have nothing in conv mon with the paid traitor of Novem ber 1918” and said the German peo-- ' pie regard themselves as guiltless for the World war Then to give the people the chance to express their attitude about these sudden r epochal events President Paul von Hindenburg dissolved the reichstag and set new elections for November 12 Chargee Bad Faith In explaining this “plebesclte4 Hitler aaid his government will not “turn a deaf ear to proposal for real peace” but “will welcome every suggestion” "The German people the chancellor aaid “destroyed their weapons and fulfilled their obligations in toe iip-po- rt ed ' nd S eeemrnmmmmmmmmm - ‘ ' THE LEAGUE— Only three of the world powers still hold to the League of Nations: England France and Italy Japan walked out last March amidst the Manchurian dispute 3 the same locality where Charley Fraoomles zier another escaped Angola convict day aggr Both Tlera’tt rNot 070 McIntyre"WUl Lehman had failed to ect on disReports of improvement In German emanating from official sources with Responding LaGuardia character- men were held in jail here and officers Norris Art and Lit- Rogers Kathleen efwhat ( refused to say closures of the legislative lnvestiga ized McKee’s demand as “a silly disposition would trade and the progress made in toe the attitude ot the reich toward forpast year to reducing the veflume of eign creditors1' aaiamaiauituuiiiiiiiiiiiisiiaun tion which ended in resignation of fort to create a false issue" — — be made of toe prisoners world t ry ROME— Italy looks to the Invocation ot Mussolini's ®ttl the disarmament squabble? Its signatories: Great Britain Italy Franc and Germany v four-pow- J In a dramatic speech th chancellor condemned toe postwar Versailles treaty "tong a thorn In Germany's side and contended there "m no poe aibility of territorial conflict between Franc and Germany" ’ Over Events in European Centers day German bonds weakened and in foreign exchange dealings the reichsmark declined in tenfs of the dollar along with several other currencies but that was evidently only a continuation of the upward movement of the dollar which started yesterday War fever were completely tacking to th stock exchange Shares of munitions and aircraft makers displayed no particular strength or activity Important banking quarters aald this capital center had evidently be- comelalmost completely steeled against unsettling developments In central Europe in contrast to the tur- - tragic error regrettable - and fight" WASHINGTON— Secretary of State Hull “shuddered” to contemplate abandonment of efforts to disarm The reich Withdrawal declared ‘ ‘ LONDON— Prime Minister MacDonald ordered the foreign office to keep silent Great Britain's attitude: To keep hotheads from rocking the boat ' Peace ’ "geneva— Outwardly was heardr'Let Germany go well get’ along without her Inwardly the powers won seriously disturbed he for By LOUIS P LOCHNER Associated Press Staff Writer BERLIN Oct 14— Germany boldly announced her withdrawal today from the league of nations and the world disarmament con- J ‘ " ference rbecause-j&cujfee—Thiaghe-dl- d h fused to be a nation “of second class right" Chancellor Hitler’ declared and want “equality and ’ ' honor" Hitler told the world the German government and people are animated by no other wish than to help end the human epoch of TOKYO— Japan watching the disarmament conference from sidelines expressed no regrets at the prospect of failure at An army spokesman said It’s Casy xorJapan to sym--“ Geneva pathlae with Germany's demand toe arms equality with occidental ' Powers j Wall Street Refuses to Be Excited WV-Desp- Ite Stands Jhe They argued that even Italy which today almost unequivocally backed other powers Including toe United States in saying there shall be no rearmament in Germany may find it difficult to collaborate with Germany aa a signatory of the NEW YORK Oct 14 an American stake in Germany estimated at close to (2000000000 Wall street was disinclined to become excited ever th reich't angry withdrawal from the league of nations and toe disarmament conference to- Chancellor Scores Yer-- : sailles Insists He The World's Reaction t four-pow- ther expenditure To date less than (100000000 haa been withdrawn from the treasury against the (1709000000 allocated In answering criticism of toe slowness of the expenditure public works that bids officials have explained must be advertised for and toe formalities of contract letting gone through in toe first period of such a program thus slowing it down at the Charges Bad Faith PARIS— It’s the “gravest news In twenty years” said govern“We were much surprised but hot upset" said ment spokesman the foreign office France feels aafe Davis Declares Policy The statement of policy read to a private session of the Geneva conference by Ambassador-at-largNorynan H Davis and made public by the state department added that German equality to armaments “cannot be Depends en Condition achieved at one stroke" and that “unWhile they say that any request to agreement der present conditions steps are necesThey thought the French confidence congress to augment toe public works sary” for It attainment n Fate (Continued Six) fund would depend upon economic On behalf of the United State Da Beven) (Column conditions three months hence administration leaders believe that by the time congress meets the employment benefits of the (3300000000 fund will then be felt and congress might feel inclined to authorize furpost-offi- Be in ‘Second Class' Avowing Germany’ passionate devotion to peace Adolf Hitler declared the reich was ready and willing to go the limit in die armament— but warned that if other nation are to arm the German demand for equality must not be sldetricked President Von Hlndenburg dissolved the moribund reichstag cklling a plebiscite for approval of the reich’s action Davis Prom the United States ambassador at large Norman ‘ came the administration view: " A disarmament conference could not properly be made an Instrument for rearmament Qualitative equality In armaments should primarily be sought through the reduction in the armaments of the heavily armed powers and not through ?acts on the part of others to attempt to build up” wondering J Dedares-Countrj- Refuses 'to ence 0 NEW-YORKr- Oct i allies In rejecting man rearming demands Pag 1 ' Pari sees condition --aa grave Pag 1 League envoy call meet at Geneva to dlscasa Xntura action Paga 1 FEATURE!! AND DEPARTMENTS Editorials Here tn the West Senator from Sandpit and Washington Page C Markets and finance Pages 10-- C — 4 - and ll-Industrial develop- -' estate and Real Blent Pago l-- C ' Garden Gate Page C Sports ' Page J-- B to 4--DB Society Paget D to Drama Music and tha Scree a w Authority Reports President Not Yet High France Proposes ‘Wall of Steel to Surround Reich Testimony ARMS CRISIS AT AULANCE (By the Associated Press) Germany dramatically withdrew from the League of Nations Saturday and abandoned participation In the disarmament confer- SKS NEW TRIAL Stevens Case Ended After Weeks of Nazi Chief -- Page i Section-- - is ( -- ' --