WEATHER. <tJ. 8. Weather Bureau Forecast.)

Partly cloudy and slightly colder to* night; minimum temperature tonight about 42 degrees; tomorrow fair, slowly rising temperature. Temperatures today— Highest, 52, at 2 p.m.; lowest, 48, at noon.

Pull report on page A-2.

Closing New York Markets, Page 22

“When the Day is Over in Europe — It’s Press Time on The Star.”

04*) Mean* Associated Press.

86th YTCAT? \Tn 91 ejlQ Entered as aecond eliu matter oulu x.Li-a.XV. -L>Q. 01,010. post offlee Waahlnaton, D. C. WASHINGTON, D. C., FRIDAY, OCTOBER 28, 1938—FIFTY-SIX PAGES. THREE CENTS.

NAZIS SHIP POLISH JEWS HOME AFTER ROUND-UP OF THOUSANDS IN REICH Seek to Beat New

Citizenship Law of Poland.

BULLETIN. WARSAW, Oct. 28 (/Pi.—An au-

thoritative source said tonight that “in all probability” German meas-

ures against Polish Jews would be

withdrawn.

By the Associated Press. BERLIN. Oct. 28.—Authoritative

Informants said today that the Nazi authorities already had sent several

thousand Polish Jews living in Ger-

many back into Poland following a

nation-wide round-up. In Berlin alone several hundred

Polish Jews were routed from their beds in early morning raids semi-

officially explained as intended to fore-

stall application of a new Polish law

that might deprive thousands of Jews

In Germany of Polish citizenship. The German government estimated

that 150,000 residents of Germany are

Polish citizens. According to a Polish law coming into effect October 30 all these by that date must have their passports revalidated by Polish con-

sulates.

4,000 to 6,000 Affected. Jewish circles estimated that the

law applied to between 4.000 and 6,000 Jews in Germany.

Failure to obtain such revalidation Will mean that the passport holder never again can enter Poland.

Semi-official German sources said it was feared that those who did not receive revalidation might become pub- lic charges. After midnight tomorrow

they could not be sent back to Poland.

Failure to reach an agreement with Poland until now. these sources said, "compelled German authorities to take measures for reducing the number of those who, in all likelihood, will not re-

ceive the revalidation stamp." Germany gave Jews first attention

In keeping with her anti-Semitic policies.

Jews Believed Law’s Target. The new Polish regulations were said

In Warsaw to have been planned to make possible cancellation ofjtba pfpfi ports of Polish citizens who have lived away from Poland for more than five years. Polish Jews Interpreted the measure as directed primarily against them.

The Polish government issued regu- lations this month requiring all Poles living permanently abroad to submit their passports to Polish consular offices.

Since then Polish citizens have been refused re-entry without a note on

their passports that they have been certified by Polish consular authorities In the country of their residence.

Citizens who do not present their passports automatically will lose their rights to re-enter Poland.

The Polish Embassy in Berlin im- mediately consulted police authorities regarding the raids.

Berlin Officials Silent.

Berlin authorities were silent re-

garding them, but it was indicated similar sorties were carried out in many German cities. No estimate of the number of Jews involved was given.

Only men were held. Hundreds of Jewish women lined up outside two Berlin police barracks, hoping to see

their relatives. The women were permitted to leave

battered suitcases, blankets, food and cigarettes for the prisoners, but were

rot allowed to see them. Large transport trucks used in the

round-up were visible inside the gates of the barracks. Crowds gathered out- side, but were ordered by police to

keep moving. Some women waiting at the gates

said they understood the men would be

transported tonight to the German- Polish border for deportation to Po-

land. The women, they said, would be 6ent to Poland later.

Jews Striving to Flee.

Today's raids brought intensified at- tempts on the part of Jews to flee Ger- many.

From Cologne came news that Po- lish Jews there had been ordered to

report to their respective police pre- cinct stations at 1 p.m. (7 a.m., E. S. T ).

They were told they would be shipped out of the country tonight and would be allowed to take only food and cloth- ing with them.

All Jewish meetings, except at the Jewish Theater, were forbidden for a

four-week period. The order included all classes in

schools where Jews are learning trades before emigrating to Palestine and else- where. Also included were foreign language courses, for which Jews come

from all parts of Germany. Those students must now pay living expenses while remaining idle until the courses

*re resumed.

FIREMAN ON ROPE HOLDS VICTIM FOR 20 MJNUTES

Swings Precariously While Others

Cut Through Window to

Save Woman. B? the Associated Press.

NEW YORK, Oct. 28.—A fireman swinging precariously at the end of a

rope today held Marie Clamens, 35- year-old patient at the Regent Nurs- ing Home by the legs for 20 minutes while other firemen cut through a fourth-floor casement window to pull her to safety.

The woman had become wedged in the window, and the fireman, Charles Pessoni, who was lowered from the roof, swung into position near her as she slowly slipped out of the narrow aperture. 1

Father Goes to Jail Rather Than Give Child to Mother

ZELNER ALBRITTON, JR.

MRS. NORELLA ALBRITTON. •*-Star Staff Photo.

I' A young father preferred to remain

in jail today in contempt of court rather than surrender his only son to his estranged wife while, in his opin- ion, the child is too ill to be moved.

Zelner Albritton, 28, sculptor and de- signer. said in District Jail today he would serve a life sentence if need be before he would consent to having the child brought from nearby Maryland while sick.

Mr. Albritton was committed to Dis- trict Jail Wednesday by Justice Oscar

delivers his 4'i-year-old son to the custody of th4 child’s mother, Mrs. Norella Albritton, 1038 Hudson street, Arlington, Va.

*‘I was told,” said the husband, who has been in jail here since October 3. when he was unable to furnish $500 bond not to leave the District’s juris- diction, "that my son has a contagious illness, either chicken-pox or measles —they weren’t sure which.”

The husband, who claims he is a legal resident of Maryland and not bound by a custody order from District Court, refuses to say where his son

j now is living. It was thought, how-* ever the child was with his paternal

: grandmother in nearby Maryland. The couple separated more than a

year ago. Last November the wife filed suit in District Court for maintenance and custody of the child. The court, in view of the boy’s tender years, turned him over to his mother, with a provision his father be allowed to see

I him. Mr. Albritton, who was living in

Marlboro and working at his studio in the District, took the child to Mary- land and refused to return him to his mother.

"He had been ill with bronchial pneumonia several times,” Mr. Albrit- ton said, “and I felt that I could give him better care.”

The wife then obtained a writ for- bidding Mr. Albritton to wave the Dis- trict. It was served on him October 3. and the husband, according to his attorney, Charles H. Quimby, could not raise the $500 bond. He accord- ingly was sent to jail.

At the hearing Wednesday, Justice Luhring said he W'as not ruling on the custody question, but rather on the previous court order.

The husband chose to return to jail rather than surrender his son. "It looks as if I’m being held for

ransom, the father said, "the only difference being I must pay for freedom with my son instead of my money.”

DALADIER AND AIDES MENACED BY BLAZE

Big Fire Sweeps 10 Buildings of Maresille During Party

Conference. B} the Associated Press.

MARSEILLE, Oct. 28.—A huge fire which swept 10 buildings in the heart of Marseille today and was believed to have caused three deaths led Premier Edouard Deladier to suspend until to- morrow the Radical-Socialist confer- ence here.

The Are destroyed the big Nouvelles Galleries des Paris department store, the Noailles Hotel—where M. Daladier and Foreign Minister Georges Bonnet were staying—and spread to two other hotels, a bank and several other build- ings. There were 20 known dead.

Marseille's whole fire department battled the flames, reinforced by mili- tary firefighters from the Toulon arsenal, but the conflagration con- tinued to spread.

Before the roof of the Noailles Hotel caved in a police officer broke into the apartments of M. Daladier and M. Bonnet, who were at the party con- gress, and rescued their papers. Be- sides the roof, three floors of the hotel later collapsed.

The Nouvelles Galleries de Paris store was a mass of ruins. The whole block of buildings in the square bounded by the Boulevards Canebiere and Garibalda, the Rue Paperes and the Rue Marche des Capucins were imperiled.

U. S. CHILD IS SLAIN BY JAPANESE BOMB

Mother and Sister Also Hurt in

Attack—American Flag on

Mission Ignored. By the Associated Press.

HANKOW. Oct. 28—An American child was killed and her mother and sister wounded in a Japanese air at-

tack October 24 on a Lutheran Breth- ren mission, belated reports here dis-

closed today. Phoebe Olive Nyhus, 3, was killed

and her sister Ruth, 8, and her mother were wounded, the report said, when Japanese planes destroyed the mission at Tungpei, in Southern Honan Prov- ince, despite American flags marking the buildings.

The report came from the father, Arthur Nyhus of Fertile, Iowa, the only member of the family unscathed in the bombardment.

He moved the injured survivors of his family to Tangho, also in Honan, where he telegraphed United States Ambassador Nelson T. Johnson at Chungking, China's new provisional capital.

GO G TO COM. FRANCE

May 'Be Compelled to Take Measures/ IJpemier

Declares.

OFFICIALS ARE SILENT ON AMERICAN PROTEST

American Insistence Upon Trade

Equality Is ‘Unsuitable,’ Says Newspaper Asahi.

BACKGROUND—

United States Government has made frequent protestations to Japan since Chinese war began in July, 1937. Latest was delivered by American Ambassador Joseph C. Grew October 6, demanding "open door” in China be preserved. France also has come into occa- sional conflict with extent of Japan's conquests. French Indo- china has been important source of supply of arms for China.

By the Associated Press.

TOKIO. Oct. 28.—A foreign office statement today said Premier Prince Konoye had warned France that Japan "might be compelled to take measures” if the French continue to supply China with arms.

It was believed this means passible Japanese occupation of Hainan Island, just off the South China coast, one of the points of the French sphere of in- fluence and a strategic dagger aimed at the heart of the vast French Orien- tal possessions.

Yotaro Sugimura, Japanese Ambas- sador to Paris, protested in Paris, and. the statement today said. Premier Ko- noye told French Ambassador Charles Arsene Henry that Japan was “gravely concerned with a possible development in the situation.”

Silent on U. S. Note. Officials remained silent on the

United States note, disclosed yesterday, : demanding maintenance of the "open S door” in occupied parts of China, but [ the influential newspaper Asahi said I the Tokio government considered such insistence "unsuitable.”

The large independent-liberal news- paper asserted a new situation existed in the Far East because of Japan's ad- vances in China and predicted that Japan would attempt to induce the

■ ^ tteais.

kl^5^-f»5S!^1lft^ssaid Pre- ftfler Konoye had ‘reminded Ambas- sador Henry that France some months ago had proposed voluntarily to halt the flow of munitions through Indo- china. But, the premier said, France failed to do this and twice thereafter Japan asked her "to reconsider.”

"Reliable information shows,” the statement continued, “that the most important route left for transportation of arms to Chiang (China’s general-

i issimo Chiang Kai-shek) is through ! French Indo-China. and China now

j is reported active there. “Our government are therefore

I gravely concerned with the possible development of the situation.”

I Measures May Be Taken.

The statement said Ambassador Sugimura had requested that France immediately prohibit transportation of war supplies through Indo-China and gave warning that “in case the French government fail to take such measures Japan might be compelled in self- defense to take such measures as she deems necessary.’’

Japanese spokesmen in the past have declared repeatedly that Jap- anese occupation of Hainan—Chinese territory—would not violate the Franco-Japanese treaty of 1907, in which each nation promised to re- spect the other's sphere of influence in China. Neither, Japanese have said, would it contravene the Franco- Chinese treaty of 1907, in which China recognized French special interests in Hainan.

Narrow-gauge railways join Hanoi, French Indo-China. with China’s southwestern provinces of Yunnan and Kwangsi. Since the Japanese cap- tured Canton a week ago, these con- stitute China's only rail connection with the outside world. With all her major ports held by Japan and her entire coast blockaded, her only other possible channels for war supplies are highways joining Yunnan and British Burma an(i the long overland caravan

(See JAPAN, Page A-V) 1

Summary of Today's Star Page. Page.

Amusements D-8 Obituary ...A-14 Auto Puzzle..A-1S Radio .D-4 Comics _C-6-7 Short Story..B-12 Editorials —A-12 Society _B-3 Finance_A-81 Sports _D-l-3 Lost it Found D-4 Women’s Pg. B-14 FOREIGN. Nazis round up hundreds of Polish

Jews. Page A-l Daladier completes break with Com-

munists. Page A-l Czechoslovak-Hungarian peace settle-

ment near. Page A-4 Mussolini finds political horizon clear-

ing. Page A-4 Mexico inaugurates drive to regain oil

markets. Page A-4 France turns energy to seek recovery

in empire. Page A-6 League “purge” believed begun for

Fascists’ return. Page A-t national. Two members of Dies group to question

witnesses in California. Page A-l Pennsylvania political parties locked in

desperate struggle. Page A-l National income rises as TJ. S. ready

cash reaches new high. Page A-7 Union rift may cost Menuhin $3,000

concert role. Page A-7 Both sides claim victory in Jersey City

ruling. Page A-ll Mrs. Bush resumes story of spy "villa”

plot. Page A-ll Science finds proper diet builds resist-

ance. Page A-17 WASHINGTON AND VICINITY. Father goes to jail rather than give up

child. Page A-l

O’Conor chides Gov. Nice for tax pro- gram silence. Page A-2

Nice defends financial policy of “re- habilitating" Maryland. Page A-2

One dead, several injured in local and nearby traffic. Page B-l

Community Chest campaign goal is $2,127,000. Page B-I

EDITORIAL AND COMMENT. Editorials. Page A-12 This and That. Page A-12 Answer to Questions. Page A-12 Letters to The Star. Page A-12 David Lawrence. Page A-13 The Capital Parade. Page A-13 Frederic William Wile. Page A-13 Jay Franklin. Page a^s Lemuel Parton. Page A-13

SPORTS. Pitt, Notre Dame, Tennessee, Duke and

Harvard grid choices. Page D-l G. W. is confident for battle tonight

with Mississippi. Page D-l Poise main factor in passing, Baugh,

other stars agree. Page D-2 Cards banking on Sant’ Ambrogio in

tilt with St. Louis U. Page D-3

MISCELLANY. Service Orders. s PageA-22 Vital Statistics. Page C-i City News in Brief. Page C-2 Cross-Word Puzzle. Page C-6 Bedtime Story. Page C-6 Letter-Out. Page C-6 Winning Contract. Page C-7 Unele Ray’s Corner. Page C-7 Nature’s Children. Page D-g

/ WE’VE ^ i Got to have 1 PEDESTRIAN ^CONTROL!/

Warns Parliament of Call for Election if Reforms

Are Refused. Ej the Associated Press.

MARSEILLE, Oct. 28.—Premier Ed-

ouard Daladier completed his break with the Communist party today and warned Parliament that if it failed j to approve reforms the government; contemplates he would carry the issue direct to the voters.

At his request the committee on gen- 1

eral policy of his radical Socialist party approved a resolution, to be submitted to the party congress here Saturday, saying the Communist par- ty "has excluded itself” from the People's Front of Radical Socialists, Socialists and Communists.

The resolution approved by the party General Policy Committee pro- posed eventual recourse to an election if financial and economic reforms the government has In mind are not ap- proved by Parliament.

In its reference to Communists, :

i the resolution said the Communist j party had deserted the People's Front by voting against the government's demand for full powers and through "the hostile attitude of its leaders.”

Party Leadership Split. Political observers said the leader-

ship of M. Daladier's party had split over his violent attack on Communists i in his keynote address.

These observers declared that al- j though the convention shouted and cheered for the Premier, a strong group of party leaders—including members of his cabinet—not only were sur-

prised but disturbed at the bitterness with which M. Daladier changed the direction of the party's political front.

Among this group were mentioned such cabinet ministers as Naval Min- ister Cesar Camptnchi, Minister of Education Jean Zay and Minister of Interior Albert Sarraut, besides Edouard Herriot, president of the Chamber of Deputies.

Reported Chided by Herriot. One observer said that M. Herriot,'

meeting M. Daladler after the speech yesterday, demanded, in effect, “Have you any idea of what you have done?”

Two reasons were cited for the fears aroused by M. Daladier’s attack. One was political. While the 8.000 con- vention delegates undoubtedly gave M. Daladler a warm welcome, Radical Socialist deputies were faced with the cold political fact that 66 per cent of them owe their seats in the chamber to hundreds of thousands of Com- munist and Socialist votes under the People's Front single-candidate agree- ment.

There was little in the Premier’s speech to cause rejoicing among So- cialists because his attack was direct- ed at Marxism as a whole as well as Communism. And while M. Daladier studiously avoided a reference to So- cialists, they, too, are Marxist.

The second reason was diplomatic. Many observers interpreted the attack on Communism as an attack on Rus- sia, which might foreshadow a definite

(See FRANCE, Page A-3.)

BOYCOTT U. S. CHURCHES Arabs Ban Christian Colleagues

From American Services.

LONDON, Oct. 28 (fP).—A Reuters .(British News Agency) dispatch from Jerusalem said today that Arab lead- ers had forbidden Arab Christians to attend American-controlled Protest- ant churches in the Holy Land.

The dispatch said the Arab leaders charged that the American attitude in Palestine's racial strife was pro-Jewish.

G. W.-Ole Miss Till Is Postponed Until •2 P.M. Tomorrow

Tonight's football game between George Washington University and Ole Miss at Griffith Stadium has been postponed because of the rain and condition of the field, and will be played tomorrow after- noon, starting at 2 o’clock.

Max Farrington, director of athletics for G. W., made the an-

nouncement after conferring this afternoon with Mississippi offi- cials and players.

Board's Report On Rail Pay Cut

Due Tomorrow By the Associated Press.

President Roosevelt told his press conference today his special fact-find- ing board seeking to avert a Nation- wide railroad strike against a 15 per cent wage cut would file its report with him at 12:30 p.m. tomorrow.

Under the National Mediation Act, neither the wage cut nor the strike already voted by almost 1.000,000 rail- road workers can become effective for 30 days after the board's report is filed.

The three-man board, which recently completed an extensive public inquiry into the economic condition of the car- riers and other factors behind the pro- posed wage cut. had been given until midnight tomorrow to file its report— an extension of two days from !»e orig- inal October 27 deadline fixed by the President.

■ • ... —

PAT CROWE IS NEAR DEATH IN HOSPITAL

Clippings Are Only Remnant of

Days When He Survived

‘Dead-or-Alive‘ Hunt. By the Associated Press.

NEW YORK, Oct. 28—Pat Crowe, who survived a $50,000 "dead-or-alive" hunt to turn to a career of preaching ;

that crime does not pay, was reported near death today.

Attendants at the Harlem Hospital, where he was taken after a heart at- tack in a cheap Harlem rooming house yesterday, said his condition was serious.

Crowe is 79 now. Until yesterday he still was erect and proud, and still remembered the days when he eluded months of Nation-wide searching for him as the kidnaper of Edward J. Cudahy, Jr., son of the millionaire meat packer, in Nebraska late in the 90s.

He finally surrendered voluntarily in Butte, Mont., and although he ad- mitted he and a confederate received ransom for the kidnaping, he was ac-

quitted. Prom 1890 to 1906 Crowe was ac-

cused of many crimes under many aliases through the Midwest; then, after acquittal of a robbery charge, he turned a new leaf and took up lecturing on the evils of law-breaking.

Yellowed clippings found in his room

were the only tangible remnant of his former life in Crowe's present humble existence.

CLEAN LIVING PAYS

And Cat That Didn’t Carouse at

Night Dies at 29.

NEW YORK. Oct. 28 (£>).—Other cats in the neighborhood might spend their nights in song and carousal— but not Tabitha, the large gray mal- tese belonging to Mrs. Gilbert T. Sut- ton of Staten Island.

That’s why Tabitha lived 29 years and 7 months, P. M. Kittner. veteri- narian. said today as the feline was

being buried in the garden of her home. She died of cancer.

WHITNEY REPORT STIRS ROOSEVELT

S. E. C. Finding ‘Horrifying/ He Says, Citing Efforts

to End Practices. By the Asso- 'nted Press.

President Roosevelt said today a Se- curities and Exchange Commission report on the activities of Richard Whitney was very horrifying because it revealed practices which every' one was trying to prevent.

In response to press conference ques- tions. the President said that all con- cerned. including the stock exchange, were interested in preventing the re- currence of any of the practices in the Whitney case.

Mr. Roosevelt said he understood that the S. E. C. would make its report on the Whitney case in three sections, the first of which was made public today.

Falie Rumor Led to Exposure. His discussion followed an S. E. C.

description of how a false rumor on the floor of the exchange finally led to exposure of the methods by which the now-imprisoned Wall Street leader misappropriated customers’ securities.

In its official report on the failure of the Whitney firm, the commission also disclosed for the first time that the former exchange president had negoti- ated in five months no less than 111 loans amounting to more than $27,- 000.000 in a desperate attempt to stave off failure. Whitney is serving a 5-to- 10-year prison term.

The commissioner’s report said in- formation which led an exchange com- mittee to investigate Richard Whitney <fc Co., originated with John B. Shethar, a specialist in the stock of Greyhound Corp.

“Distress Selling” Noticed. Mr. Shethar had noticed "distress

selling” in Greyhound which he be- lieved to have come from the Whitney firm.

“It Is perhaps ironical.” the report said, "that this clue which eventually led to Richard Whitney's expulsion from the exchange was without sub- stantial foundation in fact.”

The report added that Mr. Shethar himself recognized his information about Whitney’s connection with the distress selling was vague and based on his own "impression.”

The S. E. C. analysis of the Whitney failure will be followed within a few

days by recommendations on the

findings. Stating that "no great trickery" was

necessary on the part of Whitney to induce his friends and business col- leagues to part with their funds, the report traced in detail the story of the

rapid-fire rotation of loans by the harassed broker.

Most of Funds Repaid. A total of $25,222,500 was borrowed

from eight commercial banks and by March 8, 1938, the date of the failure, all of this had been repaid with the exception of $1,632,500.

The remaining $2,139,000 was bor- rowed from firms, or individuals, asso-

ciated with the New York Stock Ex- change, and of this amount $1,647,000

(See WHITNEY, Page A-37)

Navy’s New Bomber Flies Here From West Coast in 13 Hours

The Navy’s new $1,000,000 experi- mental long-range bomber landed at the Naval Air Station, in Anacostia, at 2:05 a.m. today, completing a non-stop flight from San Diego, Calif., in an

elapsed time of 13 hours and 55 minutes.

Carrying a crew of seven, the huge craft actually made the approximately 2,300-mile flight in about 13 hours. The ship arrived here about 1 a.m., but, because of a number of unlighted buoys in the Anacostia River, the com-

mander circled the area for about three-quarters of an hour to make sure of his bearings, naval officials said.

Meanwhile, a 6-mile-a-minute war

plane was viewed as the Army’s imme- diate answer to European rivalry for speed supremacy in the air following a

360-mile flight in 61 minutes from Dayton, Ohio, to Buffalo, N. Y„ yes- terday by Lt. Benjamin S. Kelsey. This flight lifted the wraps from a pursuit ship about which the Air Corps previ- ously had little to say.

The Navy’s huge air boat had slipped off secretly at San Diego at 12:10 p.m. (■astern standard time) yesterday. At the controls of the 25-ton craft was

Lt. Comdr. Andrew Crinkley, pioneer naval aviator, who has been conduct- ing final acceptance tests since the ship was turned over to the Navy Trial Board by Consolidated Aircraft Corp.

With a crew of 15, the craft is said to be capable of flying 4,000 miles without refueling. It was the first big flying boat to make a transcontinental flight without landing gear equipment.

The ship is equipped with four 14- cylinder Pratt-Whitney motors, each of which has a Navy Department rat- ing of 900 horsepower. Its wing span is 115 feet and it measures 23 feet 3 inches in height.

Naval officials would not disclose any details of the craft’s armament, speed or altitude.

The Army’s new pursuit plane, the Curtis P-37, already had passed the experimental stage before yesterday’s 360-mile flight. An initial squadron of 13 ordered last December soon will be delivered, officials said.

Without halting to gloat over the P-37, the Army intends to announce in a few days another and presumably even faster plane. Designated the P-40, it is an experimental job, and most de-

(8ee NEW NAVY, Page A-4 )

EXPAND OUTPUT Dozen Firms Join Hands

With U. S. Government in Defense Plans.

NEW ORDERS TO ADD 1,000,000 KILOWATTS

Strategic War Material Center! to Be Strengthened by

Heavy Investment*.

BACKGROUND— Realization that future wars will

require fullest mobilization of in- dustry and. all instrumentalities for protecting civilian population and keeping them at productive occupa- tions led to Government survey of Nation’s power facilities and the degree to which they are integrated.

Among findings was fact that actual shortage exists and that many sections, including Washing- ton, have been vulnerable through lack of connection between local and adjoining power systems.

By the Associated Press. A dozen big utility companies, Join-

ing hands with the Federal Govern- ment in its national defense program, disclosed today they would spend $2,000,000,000 in the next two years to expand the output of electric power.

This amount, said Floyd L. Carlisle" of the Consolidated Edison Co. of New York, would virtually dcCible pres- ent such expenditures.

As the first step, the utilities an- nounced ‘definite commitments” for enough factory orders to supply gen- erating equipment capable of pro- ducing 1,000.000 kilowatts.

The commitments were given as a part of the administration's efforts to strengthen power facilities of the Na- tion's strategic war material manufac- turing centers.

Power Survey Made. Announcement of the prce-am came

from a session of the National De- fense Power Committee, headed by Louis Johnson, Assistant Secretary of War, which has been making a survey of power needs since early this year.

Mr. Carlisle, acting as spokesman for the group of utilities executive* which met with the Power Committee, said ''substantial'’ Government financ- ing was involved, but would not be in the form of grants.

The Government, he said, would ‘‘do nothing more than lend money or buy securities, in the same manner as a bank.”

The utilities executives said the new equipment for 1.000,000 kilowatts of generating capacity represented about one and one-third million horsepower, equivalent to the total power produced by any two or three Middle Western or Southeastern cities. New York City's generating capacity, they es- timated, is about 2,900,000 horsepower.

“Not Final Step.” Stressing that the commitments

were “not the final step,” Secretary Johnson indicated the administra- tion hoped other utilities would agree shortly to enter the expansion pro- gram.

The areas directly affected by the projected construction are in part those in which the production of mu- nitions and other war materials would be in great demand in event of hos- tilities, a War Department announce- ment said.

Some of them were listed as Balti- more-Washington, Birmingham, Bos- ton, Bridgeport, Buffalo-Niagara Falls, Chicago, Cincinnati, Cleveland, De- troit. New York. Philadelphia. Pitts- burgh, Rochester, St. Louis and Scne- nectady.

U. S. to Have First Call. “It is understood that for war. or

other emergency purposes, the Govern- ment shall have first call upon the facilities of the industry, both public and private and that in peace time they will be co-ordinated for the pur- pose of making them quickly avail- able,” the War Department said.

“New private plants, when con- structed, will be operated as a part of the companies' systems, replacing older and less efficient plants, which will be held for reserves and emer- gencies.” _Offlcials indicated their studies

(See UTILITIES, Page A^jT)

HANES IS CHOSEN UNDERSECRETARY

Treasury Aide Promoted to Place Left Vacant by Magill

Resignation. President Roosevelt announced to-

day the promotion of Assistant Secre- tary of the Treasury John, W. Hanes to Undersecretary of the Treasury,

i filling the vacancy caused by the i resignation some time ago of Roswell Magill.

Mr. Hanes, before being appointed Assistant Secretary, was a member of the dbcurities and Exchange Com- mission and prior to that was an in- vestment broker in New York.

Mr. Magill, who is looked upon as one of the Nation’s tax experts, re- signed to return to Columbia Univer- sity to resume the teaching of law.

The President is not ready to an- nounce the successor to Mr. Hanes aa Assistant Secretary.

Mr. Hanes is 46 years old, and hla family home is at Winston-Salem, N. C. The promotion will mise hla salary from $9,000 to $10,000 a year.

The new Undersecretary became a securities commission last December, when President Roosevelt drafted him from a New York Stock Exchange firm to help conciliate differences between the exchange and the commission. He became Assistant Secretary of the Treasury on July 1, after the com- mission and the exchange completed a program for reorganisation ef the exchange.