Chicago Tribune from Chicago, Illinois • 1

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COPYRIGHT 19S5 -XLJLV. JNU. loo by the Chicago tbibuke.i MONDAY. JULY 15. 1935 26 PAGES THIS PAPER CONSISTS OP TWO SECTIONS SECTION ONE fPWn r'XTVTT'C IN CHTCAGO ELSEWHERE -T- J.

IIU VJUiXH JL iJ AfiD SUBURBS XHB.EE CEiiTS UVJ r- r-i -j i Mm I 31 Jzi Jll uu a-E, MAYOR JUST TRY TO INVESTIGATE HIM NEWS SUMMARY U. S. JOINS HUNT RFC GETS BACK A BILLION; NEW 10,000 Drown in Chinese City as Dikes Cave flf DEAL SPENDS BRAZIL'S PIED PIPER HALTED IN ATTEMPT TO LEAD GOLD. HUNT of The Tribune And Historical Scrap Book. Monday, July 15, 1935.

LOCAL. Mayor faces task of choosing board of permanent fair commissioners and an attorney to draw up a unified transportation ordinance. Pagel. Moon's total eclipse will start at 10:11 o'clock tonight. Pagel.

Miss Mary West dies of burns; last of three baseball sewing sisters In NRA case. Page Jack McGurn, once star machine gunner for Al Capone, is in the small money now as a "four bit" book maker. Page 4. Girl from Ohio is killed ijere in automobile collision with car of Chicago surgeon. Page 5.

Judge Epstein to enforce Injunction prices on cleaning by jailing violators for contempt. Page 9. County officials will weigh legality of newly passed tax relief measures today. Page 18. U.

S. joins hunt for woman and Chi nese in torso murder case. Page 1. News of society. Page 11.

Motion picture review. Page 12. Death notices, obituaries. Page 18. Radio programs.

Page 18. WASHINGTON. Borrowers pay billion back to RFC; it's diverted to Hopkins and Irretrievably poured out for relief, making RFC technically Insolvent. Pagel. Stairway for Columbia river salmon, costing about 4 million dollars, is newest public works scheme.

Page 2. Business relies on voters of 1936 to put an end to New Deal's attack on wealth. Page 6. FOREIGN. Ten thousand Chinese perish in Han yang, opposite Hankow, as Han river dike collapses.

Page 1. Italian press indicates Premier Mussolini la rjwwjy 4a ack dow in demand for complete sovereignty over Ethiopia. Page 2. Fifth victim dies, four buildings set afire as clashes of Orangemen and Catholics continue in Belfast. Page 10.

Chancellor Schuschnigg declares he is determined to continue active leadership of Austrian government Page 10. French Fascists and radicals parads in Bastille day demonstrations. Page 14. DOMESTIC. Woman speaker stirs Republicans at third Grass Roots parley with demand for lot of repeal laws, first amons tVw3m ii them one ending 5 billion dollar spend- jns- Pae 3 I Black Hills; Tribune writer revels in scenery.

Paire 4. American Bar association committee report assails Hauptmann trial as "pub- lie show." PageS. Influential Democrats reported pre- paring to profit on $1.29 silver. Page 7. National Federation of Business and Professional Women's Clubs opens convention in Seattle.

Page 11. SPORTS. Cubs defeat Braves, 8 to 7, for seventh straight. White Sox beat Yankees, 2 to then lose, 5 to 4. Page 15.

Dizzy Dean refuses to pitch; blames ragew. Omaha may miss band when he gets in this morning. Page 15. 1 Germany beats Czechoslovakia In finals of European zone Davis cup Play- Pace 1G. Elwell qualifies for Tribune swim in fast time.

PasrelG. O'Mahoney defends mat title against Savoldi tonight. Page 16. Two tourneys for parks golfers open today. Pasre 1G.

Blanton checks Giants; Pirates tri umph, 4 to 2. Pace 17. Athletics defeat Tigers, 4 to 3. in ten innings. Pase 17 EDITORIALS.

Four Billion Dollars Talks to Con gress; Government Influence Over Banks; On the Way; An Old Story Retold; Good-by Tennessee. Page 8. FINANCE, COMMERCE. Ayres warns "soak the rich" tax program is futile. Pace 19.

Steel industry expands output to 38 per cent after holiday. Page 19. Russia may vie with Canada to sell to sell 'age 19. I wheat to world. Roosevelt's former budget director assails New Deal policies.

Page 19. U. S. treasury seeks $100,000,000 loan. India's new loan sells readily despite press "scare." Pace 20.

Industrial production all over world gains in May. Page 20. Feeling in Wall street is more optl- mistic; stocks higher. Page 21. Want Ad Index.

Pase 22 Average net paid circulation JUNE, 1935 THE CHICAGO TRIBUNE DAILY.775,000 3 4 5 6 7 8 9 10 11 Mean FOR WOMAN IN SWAMP MURDER Mother-in-Law Aids Search for Killer. (Picture on Page 4.) Assistant State's Attorney Francis T. McCurrie announced last night that federal authorities would assist in a search for Evelyn Smith, alleged slayer of Ervin Lang, and her Chinese husband, Harry Jung. Jung, accord ing to Mrs. Blanche Dunkel, who hired the Smith woman to carry out the murder, assisted in the disposal of the body.

Immigration authorities have dis closed that a laundryman, en tered the United States without au thorization and is subject to deportation. Mrs. Smith also has had dealings with the immigration office. Mr. McCurrie said that she came here from Germany under the name of Schmidt, and that he had been informed she lived at one time in China.

In Chicago, Says Chief. Chief of Detectives John L. Sullivan and most of the other Investigators still favor the theory that the two are hiding in Chicago, probably in Chinatown. The reasoning is that, traveling together, they would be too conspicu ous to escape capture long, while Jung undoubtedly would have shelter among his friends in the city. Mrs.

Smith, who has associated with Chinese for also would be welcome with Jung's acquaintances. However, the police are not over looking clews from the outside. They were much, interested in two reports from Wisconsin, one that a Chinese and a white woman had been seen together Friday near Madison and another that the same, or a similar couple, had passed through the vil lage of Fifield, near Spooner. Flee in Conspicuous Car. In the first Instance the car of the pair was described as a 1934 Chevro let and in the second as a 1935 Dodge.

The police here have learned that Jung disappeared Wednesday after borrowing an entirely different and much more conspicuous automobile, a 1928 Durant. There has been no trace of this machine since. Thirteen Chinese, seized Friday and Saturday in connection with the kill Ing, were still in custody last night, Five of them are relatives of Jung and the other eight were taken In raids on a Chinese store at 231 West Cermak road. In this building the po lice found a trunk containing personal belongings of Mrs. Smith, which had been taken there by Jung.

Mother-in-Law Adds Details. Little was learned yesterday to change the known facts in the case. Lang. 28 years old. a grocery clerk who had earned the enmity of his mother-in-law, Mrs.

Dunkel, by an announcement that he Intended to remarry, was strangled to death by Mrs. Smith all this to the Dunkel story In a flat at 731 Barry avenue early on July 6. Mrs. Smith, to whom Mrs. Dunkel paid $100 of an agreed $500 for the job, then cut the off at the hips and, with the aid of Jung, carried the torso to Hammond and dumped it In a swamp, where it as discovered last Tuesday.

The legs have never been found. On one point of minor Interest Mrs. Dunkel yesterday added to her confes sion. She had previoi'-Iy told of call- Ing Lang to the house In which he was slain, and had maintained that sha left before the killing and went to her home at 1212 Waveland avenue. Tells of Summoning Jung.

Yesterday she admitted that she had gone to a Chinese laundry at 3251 Armitage avenue in a cab and had there awakened Jung with a message that his wife was ill and wanted to see him. Attaches of the state's attorney's of fice said that Mrs. Dunkel, who had hitherto kept a hard boiled attitude toward the crime, was apparently undergoing an emotional change. She is at a period of life when such changes are likely to be rapid. Yes," she said in response to a question, I'm sorry I had Erv killed.

Evelyn Smith kept bothering me about giving her $500 for the job and I finally gave in." To Assistant State's Attorney Charles S. Dougherty she declared her intention to repeat fcsr confession to a grand jury or before a court. She added that she was perfectly willing to stay in custody of the state's attorney. However, a writ of habeas corpus is to be sought in her behalf before Chief Justice Denis E. Sullivan of the Criminal court today.

The application will be made by Attorney Paul Pomeroy, representing Mrs. Jessie Langdoo, sister, of Mrs, Dunkel. (Pictures on Back Page.) HANKOW, China, July 15 Monday. (JP) Ten thousand lives were lost today when the Han river poured a seething torrent through a breach In the dikes on the Hanyang side of the stream, according Chinese advices reaching here through crippled commu nication facilities. Hankow remained menaced, too.

A further rise in the Yangtze was feared and the dikes, already weakened by the pounding waters, may not be able to hold. Hankow has an estimated population of 1,600,000. It Is the most important river port and industrial city of central China. The American Passionist fathers here were concerned for the safety of their mission at Shenchow, in flood stricken Hunan province. No word has come from there in several days.

Hankow Wall Weakens. The roaring Yangtze river moved nearer toward engulfing Hankow last night when it ripped a section ten feet deep and one-third of a mile long from the Changkung dike, principal bulwark protecting the city. Alarms were sounded that the dike was disintegrating. The city took on mad activity to forestall the prospective disaster. The entire military garrison was called out for dike repairs while civilian authorities ordered thousands of coolies and refugees from other cities to help handle ballast.

Army and civilian trucks thundered across the city carrying relays of men, materials, food, and kerosene flares. While repairs went forward on the Changkung dike, other thousands of workers began building a secondary defense behind the weakened dike section. Pile drivers drove great timbers into the earth. Ballast Scarce. As Hankow fought to live, advices arrived from Chanking saying addi tional rains had caused the river to rise three feet there, which means additional torrents iiere.

So scarce had ballast become that earth was being stripped from any available space, Including private gardens and grave mounds, leaving coffins exposed. Five thousand bags of beans went into one minor breach when earth filled bags were unavailable. The rushing waters were laden with many bodies. Although no particular effort was made to rake them in to- nignt, zuo were recovered, including a group of seven with arms interlocked. presumably a family that perished to gether.

Terrific heat which engulfed the city took a heavy toll. Many workers fell because of it and Boy Scouts and Red Cross workers dragged them from the emergency lines. "We are making a last stand," an official told the Associated Press. If we fail Hankow is lost." Great Dike Cracks. NANKING, China, July 15 (Mon- day).

(JP) The collapse of 600 feet of the great Mahwa dike today ex posed an immense new area of central China to inundation. The 65 mile Ion; dike stood as the main bulwark of Anhwei, Kiangsi, and Hupeh provinces against the Yangtze. Chinese advices said six densely pop ulated counties were blanketed with the Yangtze's overflow, ousting several millions of people from their homes and lands. Government officials here minimized the reports. Government officials reported that the Yellow river, which has devastated surrounding territory, had subsided slightly.

Get the TRIBUNE By Mail During Your VACATION DON'T miss a single issue. The daily Tribune will be mailed to you anywhere in Illinois, Indiana, Iowa, Michigan and Wisconsin, six days a week for 50 cents a month. Write the TribnrA or call Superior 0100, or notify your regular carrier. Remittance must accompany order. CHINA zSBA Must Pick Attorney to Draft Car Bill.

BY STANLEY ARMSTRONG. Mayor Ielly will begin today a busy week In which two matters of city business will be paramount, the organization of an exposition author! ty to build a permanent fair on Northerly Island, and the selection of an attorney to draft a new transit ordinance. One of the first permanent fair problems, the mayor said yesterday, is the choice of ten men to be the commissioners of the exposition authority created by the general assr.mbly. The mayor said he hopes within a short time to appoint a majority of the board and a chairman so that work on the fair can be started this year. Stagger Appointment System.

The personnel of the fair board, It 13 understood, is to constitute an answer to charges that the exposition might be a cheap carnival. On it the mayor plans to have a representative business man, a representative of labor, and a person versed in the theater business. Members of the first board are to serve as follows: One for one year, one for two years, and so on, the tenth one serving ten years. Their successors are to be appointed for ten year terms. By this staggering of the expirations of the various terms, it was said that no mayor in his four year term would be able to appoint a majority of the board.

The members" are to serve without compensation, uairs, carnivals, and shows are banned from the exposition grounds under the exposition's enabling legis- lation. Provisions of the Law. Ths act creating the exposition au thority reads that it may bj organized to conduct expositions, theatricals. cinema expositions, concerts, recitals lectures and Industrial, trade, scien tine, cultural, and educational exhibits. amusement devices, convention halls, public restaurants, stadia, athletic fields, athletic contests and games.

and other forms and places of public entertainment." The commissioners are authorized in the act3, which Gov. Horner allowed early yesterday to go on the statute books without his signature, to lease 180 acres of Burnham park for a term not exceeding twenty-five years. They are to choose from their members president and a vice president to serve for one year, and appoint a secretary and treasurer. The commissioners. who are to be named by the mayor with the approval of the city council, and these other officers must be res! dents of Chicago.

Financing a Basic Consideration. Another major detail of the fair en- terprise with which the mayor must deal is financing. He said yesterday he would renew his request to the Public "Works administration for con struction money. Early plans called for a loan of $20,000,000, to be liqui dated from the exposition's revenues. Later the mayor dropped the idea of a $7,000,000 convention hall and worked for an outright federal grant of 000,000.

One task confronting the commis sioners is that of naming the exposl- tion. Because of the proposed location of the exposition on Northerly Island the following names have been suggested: Pleasure Island, Pleasant Isle, Treas ure island, and Sunshine Island. It was said to be likely, however, that the name will imply the cultural as well as the recreational objects of the ex position. Transportation Appointments. Park, beach, and play attractions would be offered in the summer, with facilities for winter sports during the cold months.

There would be an ex hibition hall in which would be placed agricultural and Industrial exhibits and where conventions could gather. It is understood that the mayor will talk today to Corporation Counsel William H. Sexton relative to the appointment of the city's chief legal officer as attorney for the council committee on local transportation to draft a new comprehensive transit ordinance. Mr. Sexton had no comment to make yesterday on the report that he has been chosen for this position.

It was understood, however, that he would be agreeable to the appointment after a vacation from arduous labors In behalf of the city at Springfield and in Chicago. The mayor is expected also to confer with Barnet Hodes, member of the state tax commission, to offer him the place in his cabinet that would be vacated if Mr. Sexton becomes the transportation committee's attorney Repaid Borrowings Diverted to Relief. Chicaso Tribune Press Service. Washington, D.

July 14. Special. Approximately a billion dollars repaid to the government by private borrowers is being spent outright by the New Dealers on enterprises from which it can never be recovered, inquiry disclosed today. This spending of government assets apparently is driving the giant Re. construction Finance corporation, from which the billion dollars has been taken, into insolvency in the sense that its remaining assets will not cover its liabilities.

The RFC has borrowed 3 billion. 975 million dollars from the treasury in order to carry on its operations. Its remaining assets, since it has been, stripped of the billion dollars, amount to 3 billion 493 millon dollars, or 482 million dollars less than would be necessary to pay off its liabilities. Taxpayers to Foot Bill. Taxpayers will have to foot the bill for this loss If it is not made up.

The theory of the RFC was that it would pay out 100 per cent, costing the government nothing in the end. If its assets are dissipated the taxpayers will have to make up the difference. The billion dollars is money which, was repaid to the RFC by banks, railroads, insurance companies, and other private borrowers. Roosevelt has switched the money to Relief Administrator Harry L. Hopkins, who is spending it outright.

Altogether 2 billion 853 million dollars has been repaid to the RFC by banks and other borrowers. but the RFC in turn has repaid only 436 million dollars of its own borrowings. The remaining 2 billion 357 million: dollars is split. One billion is being-spent on relief, the other 1 billion; 357 millions dollars has been reloaned. But It's Listed as "Assets." Until recently the treasury department continued to include these RFC funds which were being Irretrievably spent in a list of "assets' or loans on which the government would eventually realize some return.

This New Deal tabulation of "assets" also includes loans of a highly doubtful character which in the past have paid out only 64 cents on the dollar. The New Dealers claim that liquidation of these "assets" eventually will help pay off the staggering public debt. President Roosevelt, in diverting a billion dollars from the RFC to relief, acted under authority granted to him in the relief appropriation acts of 1934 and 1935. Both of these laws allowed him to mulct the RFC of money originally intended for self-liquidating-loans. He took half a billion from the RFC under each act.

Under the same authority he took 262 million dollars from the publio works fund for relief. This money, however, had never been loaned out but was lying idle in PWA reserves. FWA Gets 100 Millions In. PWA. however, has realized about 100 million dollars by selling state and municipal bonds which were pledged with it as collateral for loans.

But this money has not been returned to the treasury. The New Dealers have arranged for a nublio works "revolving fund. which permits them to lend the money out again. The history of revolving funds indi cates that the money gradually will be dissipated in unsound loans, never coming back to lighten the tax load. For instance, the federal land bank commissioner, an officer In the Farm Credit administration, has loaned 71S million dollars on farm mortgages and this fund is to revolve that is, the money repaid will be loaned out 17 Per Cent Delinquent Now.

Repayments on principal are not due for ten years, but already the in terest payments are 17 per cent de linquent. In other words, at least IT cents out of every dollar due is already in default. This fact casts serious doubt on the government's ability ever to make it revolve" or to collect anything like the full amount. Yet the treasury is listing the full 716 million dollars worth of these loans as "assets" on which the government may eventu ally cash in. The emergency seed and feed loans which the Farm Credit administration is now making are another dubious asset to which the New Dealers assign full face value.

The government has been making seed loans since 1921. lending a total of 230 million dollars up to the end of 1934, of which only 15S millions has been rs- SIX KILLED AS GIANT PLANE CRASHES AND BURSTS INTO FLAMES AMSTERDAM, July 14. (JP) Six persons died amid flames when a giant Dutch commercial airplane carrying 14 passengers and a crew of six to Sweden crashed toflav snrm nftfr tfc takeoff. The heroism of the ground staf, a sieward and a Norwegian passenger was credited with saving 12 lives. They rJskeJ thelr own safety to free tne other trapped occupants.

The plane was American built Fokker. Shortly after the plane had taken off something went wrong with the engine and the pilot headed back for the airport. In an effort to avoid a crash he turned the machine from a dike in course of construction, but hit the ground 80 yards from the airport building and the machine burst into flames. Three of the 12 passengers who were rescued were badly injured. The six who died were two British uas- sengers.

Newman and Hodson, and iour members or tne crew the pilot. Silverstein; the wireless operator, Nie- bor, and Mechanics Brom and "Van- dyk. No Americans were aboard the plane. THE WEATHER MONDAY. JULY 15.

1035. Daylieht Saving: Time. Sunrise, sunset, 8:24. Moon seta at 5:50 a. m.

tomorrow. Mercury is a morn' ing- star. Venus is an evening: star. Mars and Jupiter are luminaries of the night. Chicago and vicinity TRIBUNE Partly cloudy BAROMETER.

Monday and Tuesday; some probability of local thun-dershowera Monday; not much, chance in temperature; grentle to moderate shifting- winds. Illinois Partly cloudy Monday and Tues day; local thundershowers in central and north portions Monday; not much, change in temperature. TEMPERATURES IN CHICAGO MAXIMUM, 7 P. M. 83 MINIMUM, 6 A.

67 a. a. a. m. a.

,.69 ,.68 ,.68 ..67 Noon 77 1 p. m. ...75 Unofficial 8 p. 9 p. 10 p.

11 p. Midnig-ht ..78 1 a. 2 a. a p. 3 p.

4 p. 5 p. 6 p. 7 p. m.

..76 ..75 ..78 ..77 ..83 a. m. .69 a. a. 78 a.

80 a. For 24 hours ended p. in. July 14 1 temperature, 74; normal, 73; excess for July, 46 degrees; excess since Jan. 1, 64 degrees.

Precipitation, trace; deficiency for July, .18 of an inch; total since Jan. 1, 22.72 inches; excess since Jan. 1, 4.90 inches. Highest wind velocity, 12 miles an hour from the southwest at 6:28 p. m.

Barometer, 8 a. 29.99; 8 p. 29.86. July 15, 1934: Maximum temperature, 80: minimum. 69; mean, 74; clear; precipitation, none.

Official weather table on page 21. Earth Shadow Will Blot Out Moon Tonight (Diagrams on Page 5.) Unless cloud3 overhang the city tonight, Chicagoans may see a total eclipse of the moon, the first visible here since 1928 and the last that will occur until 1938. The moon will first touch the shadow of the earth at 10:11 p. daylight saving time, and the total phase will be reachd at 11:09 and will last until 12:50 a. m.

It will be almost two hours later when the orb escapes the shadow and the penumbra and resumes its full brilliance. In a cloudless sky the moon will not be invisible at any time. When its edge first passes -into the deep shadow that edge will appear black, but as totality is reached the moon will appear as a coppery ball. Weather on Edges of Earth. Scientists explain that the degree of illumination during the total eclipse will depend on weather conditions in Russia, South Africa, and Hawaii, sections which at the time of the lunar eclipse will be having either sunrise or sunset.

In these regions the rays of the sun particularly the red ones will be bent by passage through the i earth's atmosphere sufficiently to strike the otherwise fully shadowed moon. If these regions are clouded the rays will, in large part, be shut off. A clear Hawaiian sunset, a fine Russian dawn, will increase the light on the dead surface of the moon. Astronomers pay slight attention to lunar eclipses, which have been sub jected to intensive study in the past. It is known that when the phenomenon occurs the surface of the moon, lacking atmosphere, becomes terrifically cold, nearly as cold as Interstellar space, and warms up again when the sun shines again upon its surface.

Hope to Analyze Light. At the Lowell observatory at Flagstaff, observers will make tests designed to analyze the little light reflected from the coppery moon face as it is bathed by the refracted red rays. The eclipse will be visible all over the United States and in South America, eastern Africa, and part of eastern Kurope. All that the eclipse amounts to, visually, Is that the moon gets into the earth's shadow for a little while. To a man on the moon the event would be an eclipse of the sun.

At the Adler planetarium Prof. Philip Fox will give an extra lecture at 8 p. m. explaining for the layman what will happen. Those who attend may view the real eclipse from the planetarium terrace.

Regular pre views will be given at 11 a. m. and 3 p. m. Severe Earth Shock Is Felt In Quetta, India QUETTA, India, July 15 Monday, An earth shock of great intensity, lasting 15 seconds, felt here at 11 a.

m. today. It was accompanied by. strange gurgling sounds. RIO DE JANEIRO, July 14.

CP) The police arrested an English pied piper today as he prepared to lead a children's crusade for gold and dia monds into the wilds of Brazil's Matto Grosso. Ten boys, ranging in age from 13 to 17, were identified as among his followers. Frantic parents were call ing on police to ask regarding their lost offsprings. Harold Boddy was the name the sal low, sullen man gave the authorities, They said he had been figuratively piping his fabulous dream of gold and diamonds to youths in Rio de Janeiro the last two years. He was released after close questioning.

one or tnree boys who formed a vanguard for the crusade has returned disillusioned after a trek to Sao Paulo, 275 weary and dusty miles away. When the mother of Altair Mar tins, 17. grew apprehensive over the youth's persistent long absences at night and communicated her fears to authorities, a raid In the loft where Boddy lived put an end to the "cru sade apparently In the nick of time. On chairs and squatting on the floor, raptly listening to the man's talk, sat seven boys "all set to go. One of the youngsters was In tears, impatient at not having gone already.

Others were believed preparing for the march. AIR TRAVELERS WATCH WHALES FIGHT OR FROLIC Boston, July 14. UP) Passengers on two planes of the Boston and Maine airways, arriving tonight from Maine points, reported at least a dozen whales engaged in either a frolic or a fight off Hampton Beach, N. H. Two of them appeared like submarines," Pilot Stephen Hazen said, "and the water was churned up terribly.

It seemed to be a wholesale fight, but maybe they were only playing." Both planes circled low to allow, the passengers a good view of the whales. SEEK PERMIT TO PUT TELEVISION TO CHAIN TEST Washington, D. July 14. (JP) Television, newest marvel In the evolution of communication, will be put on a long distance hookup early In 1936 if the federal communications commission is willing. Dr.

Frank B. Jewett, president of the Bell Telephone laboratories, will request the commission tomorrow to approve the installation of a new coaxial" cable between New York and Philadelphia for television transmission. Permission Is expected to be granted. 4 i.