i
Medford Mail Tribune
ty-Sisth Year
S1DENTS
ICE PLEA
BONDS
U .Holders NearPres
Seotic Tank Describe
Editions as 'Appalling',
alth Menace' and Be-
id Further Endurance,
mis of the' area' In prox-
o the present septic tank,
Lt few days circulated the
Jig freely-signed petition. It
encu by pracucauy
L n...nar nnri - describes
Ins, and 'tho necessity of
lc Improvement, as iui-
15th the people of
L ,ni vntn unon a bond
lor the construction of a
Hi.nnsal olant and a trunk
Jilong. Bear Creek, thus pro
1. magna for cleaning up
J.-n sewer which now flows
anA uncontrolled en-
Ihrough the city, and makes
fcosit of stencn ana mv
upon the properties ui
,, citizens Who live
lis course, thus endangering
ilth and lives of our iam
ho condition Is appalling
human endurance. It must
cannot continue,
iho nast several years
) us have protested to the
id state officials, and have
d nothing in return but
s. The condition is now
ible and the peril Is so
that we must have relief.
therefore making this ap
the voters of Medford to
thiti bond issue and en-
lie city to clean up this
imess.
hollovo that every voter
cognize that a city like
d has no rignt to imperii
tea and damage our prop-
Is being done m mis in-tt-htrh
has srrown worse
or until it has reached
irmlng degree. We believe
hat enrh voter will recog-
Jur-rlglit ' to" demand 'that
pplorable condition be cor-
Immftriintelv. If Is heVOnd
(htnslon for business men
mzens or a mBuoii"i
ot nn an flrmilTIPnt In de
jot opposition to this bond
when it has been snown
lie city Is not carrying a
Bpnernl nhliffatton 'bonded
IrhlH is nn luxury bond is-
fi the contrary, It is one
1 Is for tho protection oi
lid property, the first and
liental right of our con-
health officer of the state
tho ntstement that this
on is one of tho worst in
f and must be corrected
t further delay. Tho city
stratton is now doing an
in to provide funds to do
rk.
U inn mkp nr nunianiiy.
? 'he name of decency, we
to the voters for this sup
Ive are making no threats,
warm you that the condl-
; so bad that we cannot
it longer, and we ask you
ter, what would you do
were placed in our posl-
3 nameB are as follows:
' Smylle, Albert R. Storks,
BrunBon, M. J. Irving.
E. Smith. Wm. El. Smith,
Wood. Mrs. C. F. Nichols,
f'ary C. Hcmstreet,
h Nichols, A. C. Walker.
1. Miller, J. C. Woods, D.
Mr, Mrs. Frances Hogue,
Jlary Smith, H; E. McFad-
Holenbrook, E. E. Stump,
lareh, O. B. Elledge, Iaura
f 'ige. 0. 11. Stafford, W. P.
an. D. A. Nelson, W. C.
Mm. John Pearley, Louis
ft. Charles Berwert,.
ml Johnson. Mrs. A. K.
ra. A. K. Hanscom, Chas.
'ney, H. E. Peyton, Mildred
ton, Mrs. Dan Evans, K
I I. Palcn, Wm. Mc-
p- Slang. H. C. Sutherland.
L nines. A. C. Stlnson,
U Ule h. C. Moon. Wm.
J. R. Ilukill, John W.
Coy, Mrs. Mildred Palen,
c. Htinaon, Mrs. C. w.
0. C. Hamilton W. D.
w. Earl Owings.
' Rarnes. J. H. Llnvllle,
Blair, F. W. Shlnn.
"On. Frert Wllllnmi MarV
;". T. W. Billings, H.
'"on. j. ), McShano, I
Cowley, Robert Hae, John
inn 11 , , . xi mm
nw. nnirK warier, m,f.
Moon, u- a t-i..i.,.n r v.
r"T. Florence Itidgeway,
' J- Llles, Mrs. Robert Tho.
"m Hazel True, Claude
' Mrs. Claude Payton.
O., July 11. (UP)
, C. Cook, 8S, Syracuse,
lv W., . A
eloping with Mm.
inc he wan serenaded
i Of Kl . . . ...
w neignoors. ine
M his bride went on
"'Tmoon In an automobile
. m her for a wedding
MEDFORD, OREGON, SUNDAY, JULY 12, 1931.
No. 110.
PLANES IN AIR TOUR BEGIN 6,500-MILE TEST
,tSUt ttilttt flVSS 1 HUtU
Planes on the line at Ford airport, Detroit, Mich., when they started on the national air tour planned
as a demonstration of the reliability of modern aircraft. Winner of the tour will receive the Edsel Ford
reliability trophy.-Stops were scheduled In 33 cities of the central northeast, the west, Canada and the
south, covering more than 6,500 miles.
FIND BENNETTiUPSTATE
GUILTY AFTER HIGHWAY
7
HOUR
Jury, With Three Women
Members, Convict Log
ger In 'Petting Party'
Case To Be Sentenced
July 20 Faces Three to
20 Years.
The jury in tho trial of Prank
Bennett, 31, logger, after nearly
eight hours' deliberation, last
night at 9:40 o'clock returned a
verdict of guilty on a statutory
charge involving a fifteen year
old high school girl. They retired
at 1:60 p. m. ,
The jury stood 9 to 3, in the
oaViy balloting;'' according to court
ho ung reports, and during the last
hour switched to 10 to 2 for con
viction. 1
Circuit Judgo H. B. Norton, at
the" request of .defense counsel
polled the jury, after their ver
dict. Time for sentence was fixed
as Monday. July 20, at 0:30
o'clock. The law provides a sen
tence of from three to 20 yearn
in state prison.
Attorney T. J. Enright, attor
ney for Bennett said that an ap
peal would be filed.
Bennett received the verdict in
a calm manner, but later in tho
lobby of the court room, while
being led back to his cell, em
braced his loyal wife and wept
bitterly. Fritz, companion of Ben
nett on tho "petting party" will
bo sentenced at tho same time,
on a misdemeanor conviction.
Neither the complaining witness
nor any of her kin, were In tho
courtroom when the verdict was
read.
Court house reports said that
two men and a woman juror held
for acquittal in the early stages
of the balloting, and that one of
the women jurors held out to the
last.
The trial lasted two days, and
was bitterly foU;riit. T. E. Daniels
was foreman. There were three
women on the jury, all of this
city Mrs. Cordelia Boot, Mrs.
Meta (filbert, and Mrs. Winnifred
Short. Tho remainder of the jury
was: George W. Dunn, Ashland;
W. W. HJltie. Gold Hill; Leonard
MoKee, Applegato; Frank Beaton,
Medford; Fletcher Fish. Phoenix;
J. V. Smith. Gold HHI; W. H.
Lydiard, Medford, and J. F. Glass,
Trail. -
Thecomplaining witness was a
former high school girl, 16 years
old on July IS next. On March
1 1 last, by pre-arra ngement, and
with another high school girl,
they met Bennett and Fritz, ac
cording to tho testimony, and rode
in an auto to a cabin near Ruch,
where some liquor was procured.
Tho party of four returned to
Fritz cabin. Fritz and his girl
companion left, .leaving Bennett
and tho complaining witness be
hind. The girl In the case, took the
stand a the chief witness for the
state, and sobbed out a tragic
story.
ASKS FOREIGN VETS
IRK FAVOR EUGENE
PARLEY COMING WINTER HOSPITAL - SITE
State Commission Given
Plan to Aid Jobless By
Willamette Valley Citi
zensMillion Dollar Ex
penditure Sought for Improvements.
SALEM HAS FIRE
a a r vr rw Ttilr 1 1 A)
The police station wasn't robbed
and the flrehouse didn't burn this
time, but the firemen were called
to quench a blaze In the water
works now isn't that sumpfn 7
UkIak. lt Atnan UTAra PAllpri tO
IVaat Hnlam tnAnV tt'tlPn thfi belt
driving machinery in tho water-
work caught on nre. mere
nlniv nf wntor hilt thV Ued
chamlcals to put out th blaze.
SALEM, July 1 1. (P) Agres
slvo moves to straighten, smooth
and widen the Pacific highway
from Salem to Oregon City is to
bo brought to tho attention of the
state highway commission when
that organization meets in Salem,
Thursday, July 30, It became
known today.
Tho narrow highway between
the two tcities,r a. road which is
reported to carry"" tho heaviest
Inter-city traffic of any route In
the stato, has been regarded as
inadequate for the service it must
rendr. Agitation for improvement
has been crystallized of late"
through tho efforts of State Sen
ator Charles K. Spauldlng of the
highway commission and the
Salem chamber of commerce. .
Spaulding told the chamber re
cently that ho wanted one mil
lion dollars spent this winter by
tho highway commission for un
employment relief and urged the
organization to get busy suggest
ing vital work which should bo
done.
As a result of an all-valley or
ganization has been formed to
present tho case of the Pacific
highway to the stato highway
commission, J. N. Chambers, for
mer president of the Salem cham
ber of commerce, heads the group
which Is to meet hero to dtScuss
the highway needs before appear
ing at the highway commission
meeting. '
The present road, - constructed
years ago, is neither convenient
nor safe argument for widening
and otherwise improving the high
way is the fact that It lies In the
heart of the most populous dis
trict in tho stato and workers
could find needed jobs this win
ter close to their homes. Tho re
quest being formulated to present
to tho stato highway commission
calls for as much hard work on
a time basis as possible In the
construction of the highway.
Members of tho organization to
day said figures would be present
ed to tho highway commission to
show tho unusually heavy use
made of tho highway.
lawyersTlayed
University City Invites 1932
Convention There In Re
turn-Endorsement Voted
At Astoria Meet After
Protest Voived on Floor.
F
MOSCOW, Idaho. July 11. P
Hobert D. Ieepor, Lewiston, flay
ing members of tho state bar as
sociation for lack of Interest in
the organization, told them today
"It is difficult to conceive of the
averngo modern atandlnj? with
Patrick Henry when he said 'give
me liberty or give me death'."
"Rather does he advise with
himself ns to which position will
profit him most," Leeper said, ad
dressing the group an It closed
its annual meeting. Ho declared
stronser local associations would
knit members of the bar together
for business, ethical and social
purposes.
PORTLAND, July 11 . (F) A
robber who took $SO0 from the
cash register of an east side meat
market late yesterday forced the
proprietor, Roy Lytle. and a cus
tomer, Mr W. R. Whltaker, to
enter the Ice box while he made
hi Moane, The two who were
locked Jn the refrigerator box.
were released by Dominic Aldano,
who arrived In the store just a
the robber was leafing.
ASTORIA, Ore., July 1 1 . (JP)
Tho newly-elected officers of the
state department of Veterans of
Foreign Wars received a telegram
from Eugene chamber of com
merce tonight thanking them for
endorsing Kugone as the sito for
the proposed northwestern branch
of tho national soldiers home.
The chamber also Invited . the
officers to select Eugene as tho
1932 convention city. The officers
said the Eugene ohambc had affr
propriated sufficient funds to take
care of any expense necessary for
the convention.
The department officers said
that the ii)32 convention would
bo held In Eugeno "without a
doubt." -
Endorsement of Eugeno as the
sito of tho proposed $2,000,0000
national soldiers homo for tho
Pacific Northwest, was voted by
the convention late yestorday.
T. O. Russell, of Eugene, In
itiated the movement to endorse
Lh Lane county city.
Barney Oarrett, of St. Helens,
opposed the resolution on the con
vention floor, advising the organ
ization to stay out of what he
termed "an Improper and con
troversial matter."
The resolution endorsing Eu
geno remarked upon tho circum
stance that Eugeno lies close to
the center of population of the
district to bo served, is readily
reached from all points of tho
district, offers fine accommoda
tions for guests, tho staff and
families of the veterans, and that
it is in the heart of Institutions
of higher learning.
Another point contained In the
resolution remarked on recreation
al advantages and diversity of en
tertainment for1 guests and the
staff.
WHEAT GAMBLERS
FACE LEGAL CURB
BY HOOVER PLAN
WASHINGTON, July 11.
President Hoover'n denunciation
of wheat speculators was follow
ed today by demands for legisla
tion to restrict their activities.
Two senate democrats and de
partment officials joined in his
condemnation of speculative short
selling, a transaction which Mr.
Hoover said was Intended only to
depress prices and served to de
prive farmers of their rightful
Income.
Moan while, Chicago prices
closed half a cent lower than yes
terday, influenced partly by fore
casts of a 1931 production of
869,013,000 bushels.
The troubles of the wheat farm
er have been brought Into a prom
inence through the effort of ad
ministration leaders to amend
farm board policies.
A congressional investigation
preliminary to forming legislature
proposals for crublng short safes
was demanded by democrats of
the senate. They could see no
hope In Mr. Hoover's appeal to
speculators' patriotism and urged
new legislation to stop this typs
of trading in times of stress.
Senator Fletcher, democrat,
Florida, proposed the grain fu
tures act be amended to make It
possible to publish the n&mes of
speculators,
DEFICIT IN
STATE FUND
DECREASES
None By Next Year, Report
Of Holman Balance on
Hand, Instead of Over
draft Now Taxes and
License Money Yet To
Come, Adds Reduction-
SAI..BM. Ore., July It. (P)
A considerable purtlqu of tho
Btiito deficit will be eliminated by
the end of 1932, a statement from
the treasurer's office today re
vealed. On July 1, this year tho
general fund of tho stato showed
a balance of more than three
quarter million dollars as com
pared to nearly a million dollars
overdraft last year. The referen
dum against the appropriations
for higher educational institutions
and economies being effected In
state governments are tho other
contributing factors to tho con
clusion of Rufus C. Holman, stato
treasurer.
The general" fund's balance on
July 1, 1981, Holman reported,
waB $781,204.84 as compared with
an overdraft on July July 1, 1930
of f884,B12. To this balance the
state treasurer will add unreceipt
ed turnovers of operation fees,
excise taxes, intangibles nnd in
come taxes-, amounting In all to
more than a million and a quar
ter dollars, bringing the total
balance to $2,1113,1123.
Against this sum the treasurer
Is to apply about $2,300,000 rep
resenting motor vehicle and motoT
transportation fees which will
soon be distributed to tho coun
lies and to tho state highway
fund. The districts result In a
slight ' deficit only as compared
with an anticipated deficit of from
two to throe million dollars.
This deficit, the treasuror ex
plains, 1 considerably smaller
than UBual In the general fund
for this time o.f tho year, for tho
, r.eaf;V jhat , income. ana Intangi
bles taxes nave just Deen receiven
and such funds have'not yet been
used In ; payment of appropria
tions for current expenses "and
building construction. As thoso
funds go out the deficit will grad
ually Increaso until toward the
end of the year when tho last
half of Intangibles, Income and
property taxes will servo again
temporarily to reduce It.
The treasurer also reported the
total bonded Indebtedness of Ore
gon July 1, 1930 was $09,877,0111,
but that tho not debt at that time
after deducting assets was $29, -135,371.
Tho total cash In tho
state treasury July 1 of this year
was $4,440,082 as compared with
$5,212,013 a year ago.
Total investments of tho several
Industrial accident fund's on July
1 ot-this year were $0,708,397,
compared with $6,581,264 last
year. During the same period tho
World war veterans slnkiilg fund
showed a decline from $3,347,938
to $2,690,080. This reduction was
due primarily to retirements dur
ing the past year of $750,000 in
matured Oregon veterans' slate
aid loans.
4
VANDERBILT HEIRESS ENGAGED
in a n mi
rtty'i J FOR: BERLIN
- 1Mp - ' m i'S J JKI
Associated i'rvss t'hoto
The engagement of Muriel Van
derbilt Church to Henry D. Phelps
was announced by her mother, Mrs.
Graham Fair Vanderbllt. Phelps
Is a bond salesman for financial
house in Providence, R. I. The wed
ding will take place either In Sep
tember or October at Mrs. Vander
bllt's horns it Manhasset, Long
Island.
TO FACE ARREST
EUOKNK, Ore., July 11. (ZD
Captain Jay Haltzman, of tho
state traffic department, rocnlvert
onlom today from Hal J3. How),
nocretary of state, to arrent mot
orlHts who worn found oporatlm?
atitomoblleB without proper li
cence platen.
Captain HaHssman al! no a,r
reflts would be made If tho motor
Inta showed a wllllnKnoHM to buy
license. Thone who rcfUHO to
buy them will be prosecuted, ho
said. Haltzman said ho assumed
similar orders had been Issued
to other traffic officers through
out the stato.
SLEW AGED LADY
AS Y ACT'
lift VAN, ()., July M.m
Theodore Taylor. 27, of Htrlkor.
has confessed killing his 85-yoar-old
, grandmother, Mrs. Alihlo
Douglns, as an act of merry, Hhor
Iff Carl Itagsn said tonight.
Tsylor, arraigned before Justice
of the Peace A. W. Vogoiso, to
day, pleaded not guilty to a mur
der charge, but In a signed state
ment admitted poisoning the aged
woman, the sheriff said. Hlnco
then, he has alternately admitted
and denied the confession.
"Yes, t poisoned her.- Bhe had
been nck a long time. Hhe wanted
something to reliove her, so 1
gave It to her," the sheriff quot
ed Taylor as aaylng In his con
fession.
YOUTH TOLD 10
AID DRY LAWS
BY CjJHIEF
Christian Endeavor Conven
tion Prohibition Not Only
Issue Poverty and Sovi
etism Must Also Be Corn
batted Dr. Poling Declares
SAN KRANCISCO, July 1 1 . (!)
A "youth crusade, for law ob
servance, evangelism and disarma
ment" was proposed hero tonight
by Dr. nahlol A, rollng, president
ot tho International Hocloty of
Christian Knricavor at that organ
ization's fiftieth annual Interna
tional convention.
At tho first formal plenary ses
sion of tho convention, which was
attended by more than 10,000 del
egates, Dr. Poling called upon
youth to lead In "tho education
and enlistment of friends of pro
hibition in maintaining the eight
eenth amendment nnd supporting
l'rosldent Hoover and enforcement
agencies." "
"Prohibition Is not tho only
Issuo, however," Dr. Poling con
tinued, "wo nro not Interested In
prohibition to Iho exclusion of
olhf.r Important Issues. Political
decisions should not ho conditioned
exclusively upon whether or not
parties uio dry and candidates nro
for tho eighteenth amendment.
"American democracy must find
a way to destroy poverty. The
American social and economic sys-.
tern must accept responsibility for
discovering how to give work to
every willing worker, for making
the average nm n more secure In
his savings and for distributing
more widely tho higher privileges
of llfo as well us tho baro neces
sities. "The passion of Iho Hovlet to
win a class war must he matched
by tho fervor of American democ
acy to perfect 'this freedom'."
Dr. Poling closed his address
with an impassioned appeal for
world peace and disarmament.
guenIrIted
BY POSTAL AIOES
KAI.KM, Ore., July II. Ml
At the Joint convention of the
Oregon federation ot postal clerks
and Oregon state association ot:
letter carriers held here today,
Koseburg was Selected for next
year's meeting which will be held
the second Saturday In July.
Officers of tho postal clerks
elected here today include T,eo W.
Jackson of Knknr, president; It.
R Itider of Baiem, first vice presi
dent: Hugo Ouenthor, Medford,
second vice president; R Ken
nedy of Jm (Irande, third vice
president; A. I Ulade of Port
land, ro-elected secretary.
Tho retiring presld'tit, C. I.
Paterson of Portland, will he dele
gate to the national convention.
Tho convention wont on record
as favoring a 80-year optional re
tirement law, and a court of ap
peals for postal civil service em
ployes, with trial by Jury.
Tho letter carriers wore to elect
officers later tonight.
1
I
President Plans to Avert
Crisis By Backing Ger
many With American
Gold American Banking
Interests Endorse Move
No Aid From Europe.
ENGINEER SEES
HOOVER DAM AS
FUTURE MENACE
Danger of Disaster Due to
Rock' Formation, and
Same Design and 'School
of Thought' as St. Fran
cis Dam Claim Risk
Can Be Avoided.
KLAMATH KAI.I.H, Ore., July
11. (IP) The trial of Nicholas T.
Smith; charged with the slaying
of his wife, Lenna Ienora Smith,
was today set for July 20.
NEW YORK, July 11. (P)
Safely of tho Hoover dam Is ques
tioned Is said to risk repetition
nf tho Ht. Francis dam disaster
In tho July Issuo of Civil Engin
eering, official publication of tho
American Society of Civil Engin
eers. Tho writer Is M. 11. Oerry,
Jr., a consulting engineer of San
Francisco, and member of tho
society.
Hoover dam, 727 fool high, tho
greatest hydraulic structure over
undertaken, Is still In tho liluo
print slagc, but tho design has
been selected and tho contract lot,
and the safety questions are raised
about this design. Tho danger Is
said lo bo duo to tho rock upon
which the dam will rest rathor
than In the structure llserr.
Thin risk, (he arllclo claims, can
ho wiped out for an additional
expense of $5,000,000 or less.
"It should not bo forgotten,"
says tho writer, "Hint, tbreo years
ago the St. Francis dam, built by
tho city of lxs Angeles, did fall,
nnd without, tho slightest warn
ing. Even a cursory examination
of tho plans now proposed will
convince engineers that tho IIoo-vl-r
darn Is dcHlgncd In accord
ance with the same school of
thought and on altogether similar
lines.
"I.Ike the Ht. Francis dam, It
Is deficient In gravity section when
uplift Is considered; It is curved
In plan, on tho same radius; and
It Is designed on tho same general
Iheory that some concurrent arch
action will tako placo and thim
overcome the limitations of the
section a theory widely disputed
by engineers."
The statement "deficient In
gravity section when uplift Is con
sidered" means the dam's weight
Is Insufficient to keep it from
sliding with the weight nf water
pushing It from behind. ' The "up
lift" is upward push of water
seeping under tho dam, a push of
tremendous power when tho water
Is deep behind the dam.
DENVF.lt, Colo., July 11. Wt
Tho United Slates bureau of rec
lamation Is preparing a detailed
statement in answer to the
charges made by M. H. Oerry, Jr.,
Han Francisco engineer, that
Hoover dam Is unsafe.
S. O. Harper, superintendent of
coifttruetlon, said today thero
was "very liltle merit In Gerry's
statement and his article appear
ing in the July Issue of Civil En
gineering, shows he is not alto
gether familiar with the project.
4
Tlin Weather
oetton -Generally cloudy Hun
day and Monday; no change In
temperature and humidity; mod
erate north and northwest Winds
offshore.
BERLIN, July 12.-(Sunday)-UP)
Chancellor Bruenlng and
mcmbors of the German cabinet
adjourned this morning at 2 o'
clock. Tired and haggard after
an nil night meeting spent in dis
cussing what were called "spartan
moves" to avert a financial crash
in Germany. .
They decided to meet again at
11 a. m., and announced no defi
nite decisions as the result of tho
conferences tonight.
A semi-official communique' Is
sued after the adjournment stated
tho entire cabinet might bo, called
togethor Sunday afternoon.'
At 1 a. m., a number of lead
ing German bankers were called
to tho chancellory to participate
In tho conference. No official ex
planation for the calling of tho
bankers was givon,- but.it' wuO
understood that a messago from
Washington was being diacusBed.
Ambassador Sackott remained at .
the American embassy throughout '
tho night to await further uowa ,
from Washington.- , v.- ,, . .
Castle's statement, made after
conferences with the president at
the chief executive's- Kapidian
camp in Virginia where ha is a
guest, said; "The president has
had no request of any kind from
the Gorman government In con
nection with tha present financial
difficulties. " - ' .
"Thoy have not asked him to In
tercede with the federal resorVa
banks. ' ; k' 1
"In this connection It is well
known that in any caso the ex
ecutive has no authority over tho
federal servtt board and does
not attempt to.' influence It. Wo
know nothing of a mossage trom,
Washington. ; - j- .
, "The president , has not ex
changed any messago of any kind
with Germany today." ,
Castle's statoment was Issued,
from the president's camp aftor
tho Whlto House had been. In
formed that leading aorman bank
ers had been called to confer with
tho cabinet in Berlin ovor a mas
sage roportrd to have been ro-
colvod from' Washington. .
It was added that no communi
cation had been received today
from Ambassador Sackett, tho
American onvoy to Germany.
BERLIN, July Vt. (P) Soveral
leading German bankers wero
called to the chancellory oarly to
day to confer 'fc'Hh the cablnot and
President Luther of tho Keietis-
bank. While officially unexplain
ed, tho hasty gathering waa un
derstood to have been called to
discuss a message from Washing
ton. Sessions continued at, 1:S0
a. m. ' '
WASHINGTON, July 11. VP)
Secretary Castle said tonight in a
statement Issued through tho
White House, President Hoover
had received no request of any
kind from the Gorman government
In connection with tho presoiit
financial difficulties and hud not;
been asked to intercede. .,
WASHINGTON, July 11. () .
Mobilization of American finan
cial power to bulwark distressed
Germany has become the subject
of discussions In which high ad.
ministration officials are partici
pating. Disturbing reports of tho Ger
man financial status have reached
here but no comment was forth
coming. President Hoover and actlnff
Secretary Castle of the state de
partment, treasury departments
kept In closs touch with tha
acute situation reported confront-)
lug tho Bruenlng government.
Some officials expressed - tho '
prlvato opinion Mr. Hoovor would
undertake some action to prevent
a disastrous eventuality In Ger
many although tho Amorlcan gov
ernment ItBelf cannot act directly.
Three possible methods wero
outlined. These were;
Unlimited credits by the federal
reserve bank ot New York to tho
Koli-hsbunk, either by direct cred
its or tho honoring of drafts; o
massing ot credits to Gormany by
private bunkors; Indirect credits)
to Germany through the bank of,
England.
The federal reserve system Is an
organization Independent of tho
executive branch of the govern
ment, -
Acting Secretary Castle said
some days ago, the president
could,' If he desired, make sug
gestion to the fedoral reserve
board as to a course oC action in.
emergencies. .
So far, officials point out, tho)
powerful Influence ot American
bankers has played little or n
part in the efforts to alleviate tho
situation In Germany, State and
(Continued on Face Five)
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