Evening Star Newspaper, October 22, 1923, Page 1

WEATHER. Cloudy tonight and tomorrow; lit- tle change in temperatus Temperature for twenty-four hours ended at 2 p.m. ‘oday: at § p.m. yesterday. 7:30 a.m. today. Full report on page 7. Closing N. Y. Stocks and Bonds, Page 22 post office Wa No. 29,028, Lowest, 45, at re. Highest, 63, Entere0 as second-class marter shington. D C. RHINE SEPARATISTS SEIZE MO RE CITIES IN EXTENDING WAVE Bavarian Premier Adds to Chaos by Declaring Union With Ger- many Cannot Remain. REVOLTERS’ PLANS ARE AIDED BY FRANCO-BELGIAN ATTITUDE Mayence Beats Off Seceders After Aix- la-Chapelle Coup--General Strike’ Rumored By the Assoclated Press. Tomorrow. COBLENZ, October 22.—The separatist movement in the Rhineland is spreading. At Russelsheim, in Rhenish Prussia, the separatists have taken possession of the public services without incident, and the same is report ed from Mayen, in the district of Coblenz, and Berncastel, near Treves. The town of Duren, where Joseph Mathes, separatist leader, has installed himself, adhered to the movement this afternoon. The movement also seems to around Hoescht, in the district be extending to certain villages of Wiesbaden. BAVARIAN PREMIER ACTS. By the Associated Press. LONDON, October 22.—Ti he Bavarian premier, Dr. Von Knilling, has declared that Bavaria cannot remain united with Germany, according to an Exchange Telegraph dispatch from Ber- lin this afternoon. Reuter’s Berlin correspondent says telegrams from the Ger- man capital are subject to censor A Central News dispatch from Ber- lin this afternoon says: “The Bavarian troops have taken the oath of alleglance to Bavaria until the end of the present conflict.” Further separatist efforts in _the Rhineland today are reported to have failed, says an Exchange Telegraph dispatch from Berlin. There were big demonstrations in the streets of Cre- feld, Rheydt and Gladbach, but the authorities retained possession of all the public buildings. A Frankfort message says the separatists pro- claimed the Rhenish vepublic at Gross-Gerau, which Is a separatist stronghold in the Hesse area. Beat Off Separatistw, The authorities at Juelich, sixteen iles north of Aix-la-Chapelle, suc- sfully resisted the separatists. The putsch at Aix-la-Chapelle jt- gelf is considered to have been of doubtful success, adds the dispatch. Everything is quiet there today, but ie Is rumored the workers purpose declaring a general strike tomorrow. PUSH REVOLT FEVERISHLY. By the Ass DU Rhineland clated Press. DORF, October 22.—The separatiste, having suc- ship. cesstully proclaimed a republic in Alx la Chapelle, now are planning to | make their regime effective through- out virtually the entire zones occupied | by France and Belgium. | to_accomplish their purpose before night, if possible. | “Joseph Matthes, the separatist lender, set up general headguarters at Duer. en, from which to direct the occupa- | tion of public buildings by his fol- | lowers. |, The French and Belgians placed a { telephone system at Matthes' dis- posal, in order to keep in close touch | with movements throughout the Rhine- land. Get Detalls Slowly. | Few detalls of what actually hap- | pened overnight had reached French headquarters today and at the time it was unknown whether the towns of Crefeld and Muenchen-Gladbach Wwére occupled according to schedule. he separatists worked feverishly | to establish thelr republic before {counter plans could be set up. The | public telephone system at Alx la Chapelle was interrupted to prevent news of the coup reaching Berlin, Separatists here doubt whether the republican movement will succeed | elsewhere as easily as it did at Alx, because that part of the German po- lice which is loyal to Berlin is now |on its guard and may offer resistance, | particularly if Berlin instructs the force to oppose the separatists. Britain Sees Rhineland Republic Ending Unity of German Empire BY HAL O'FLAHERTY. By Cable to The Star and Chicago Dally News LONDON, October 22.—The declara- tion of a Rhineland republic is regarded by many persons in British officialdon as the first step toward impending so- cial and political dissolution of Ger- many. ment with the alternative of recogniz- ing the separatist move, which was fo tered by France against British ad- vice, or withdrawing British troops from the area of occupation. 1t is reliably reported that one Brit- ish member of the Rhineland commis- sion now in London favors recognition of the separatist movement and there- after full co-operation with France, while others are advising the withdraw- a) of troops to avoid the terribly com- plicated and dangerous policy of at- tempting to maintain order in territory which is disrupted by civil war, and ssolated from the remnants of authority Temaining in Berlin. Decislon Is Withheld. The British decision hangs upon the methods adopted by the separat: ists. If the Rhineland republic re- mains united by some means, forming a federal state within the reich, the British problem will be simplified. But complete separation would ralse the problem of divided authority. For the time being the British authorities intend to maintain their full powers swithin They want neither political nor ad- ministrative disorders ~within the British ~area, and if the leaders of the Rhenish separatist movement make any move toward extending their campajgn within the British zone, it Is likely that they will meet with' resistance. Doubt About Payments. British dlplomacy recognizes that collecting_reparations from an inde- endent Rhineland or a monarchist avaria would be next to impossible. Both movements are founded upon the desire of the Rhinelanders and the Bavarians to evade paying their share of reparations. Their separate existence would make the signature of the Versailles peacs treaty tarei- cal. Great Britain has more to lose than France, because to some extent France gains her desired security at the cost of her reparations, while Great Britain loses everything she might have gained from her war victory over Germany. ‘Whatever action may be taken by the British government will come only after full situation by the empire conference. The dominlon premiers view the European situation with gloomy fore- boding, and are anxious that Great Britain make herself felt in new pressure for a reparations settle- ment. RESISTED AT MAYENCE. Republican Troops Wounded in Exchange of Shots. By the Assoctated Press, Tt confronts the British govern- | the region assigned to them. | conslderation of the | 4:30 o'clock this morning, but met | with resistance when they attempted to occupy the clty hall. | tists were wounded in an exchange | of shots. The separatists then assembled in another building to await the instruc- | tions of their leaders, who are under- | 5tood to have decided to delay the proclamation of a republic here until Tuesday or Wednesday, meanwhile negotlating with the German police for the peaceable establishment of a Rhineland government. | ALLIES MEET SEPARATISTS. | e | Negotiations in Republic Reported in Aix-la-Chappelle. | By the Associated Press. AMSTERDAM. October 22 —Tele- phone messages from Aix-la-Chapelle | and Tologne to the Dutch press today state that negotiations between :the authorities of occupation and the leaders of the separatists in the Rhineland regarding the proclamation of the Rhineland republic began at 10 o'clock this morning at Alx-la- {Chapelle. The messages say a procla- mation issued reads: “The Rhineland must throw oft the Prussian yoke. The Prussian govern- ment has been removed from office. We have done with Berlin methods. ! PARIS SEES GOOD START. Rapid . Spread of Revolt Held Strong Probability. By the Lgsoclated Press. PARIS, October 22.—A Rhineland republic apparently has made a good start at Aix-la-Chapelle, and even the skeptics are beginning to accept the possibility, even the probability, that jthe movement will spread rapidly so as to embrace the entire territory. The Franco-Belglan authorities say ithat they do not intend to interfere in one way or another unles: | should be disorder. Belgian omciaty jin_Aix-la-Chapelle, where a repub- j lican proclamation was issued yester- |gay, took the position of interested I observers when separatists headed Leo Deckers and DF. Gutharde sood ! possession of the public buildings i Aix-la-Chapelle. | Slens are not lacking that the less extreme separatist factions will sink ! their differences in view of the suc- cess already attained by the move. iment and join forces with Deckers’ | bands. | WILL RECOGNIZE TREATY. at Separatist Leader Says Republic ‘Will Pay Reparations. BRUSSELS, October 22.—Leo Deckers, the sixty-year-old manufacturer, who 118 one of the leaders of the separatist {coup at Alx la Chapelle, said today that the separatists would recognize the treaty of Versailles and were ready to ¢h WASHINGTON, D. C, They hope | Two separa- | POINCARE DOUBTS SUGCESS ON RAINE Troubles of Allies to Multipty If Separatists Win, Offi- cial View. By the Assoclated Press, PARIS, October —It is under- stood that Premier Poincare doubts the success of the separatist move- ment in the Rhineland, and appre- hends increased difficuities for the al- lies if it succeeds. There seems to be | more worry in French official circles over the situation in Bavaria than in the Rhineland. The dismemberment of the reich would require the partition of Ger- many’s reparation obligations among the separate states, rate negotiations and multiplying the dificultles by as mupy times as Gor- | many was split into separate units, The French authorities will remain neutral in the Rhineland, it is de- clared at the forelgn office. The French troops will intervene in no way between the separatists and their adversaries unless violence breaks out. Then. in line with the policy followed by the occupation au- thorities since the allies went into the Rhineland, the troops will majn- tain order. Whether the separatist government will be recognized will be determined when the occasion for a decision arises, it is said, and this time has not yet come. In reparation circles it is felt that serious economic problems would be raised by German dismemberment, even if it were confined to the Rhine- land and the Ruhr. The separation of this area, it is feared. would amount to the complete econom! dissociation of unoccupied Germany with the seceding territories at least temporarily, and the latter would find it difficult to keep their great indus- tries golng without the old home market, making it impossible to keep the workers employed, and bringing on the greatest distress. CRONKHITE CASE INHIGHEST COURT, U. S. Granted Review in Al- leged Murder of Major at Camp Lewis. The federal government ~was granted a Supreme Court review to- day of its case against Roland R.| Pothier, charged with the murder of Maj. Alexander P. Cronkhite, at Camp Lewis, Wash., during the world war. Together with Pothier was indicted Robert Rosenbluth, in the federal district court for western Washing- | ton, but the first circuit court of ap- {peals directed that he be released on habeas corpus proceedings, ‘and a United States commissioner in New York refused to hold Resenbluth. Both took the position that the Camp Lewis reservation had not completely passed under the jurisdiction of the United States at the time of the shooting and that the state courts of Washington alone could try the case. The state courts denied that they had Jurisdiction, insisting that it was a matter for the federal courts. ARREST TREASURY EMPLOYE IN THEFT Colored Vault Clerk Charged With Stealing Liberty Bonds in 1919. - Enos B. Smith, colored, employed as vault clerk at the United States Treasury, was held today in $5.000 bail by United States Commissioner George H. MacDonald for a hearing November 5. Secret service operatives charged Smith with stealing from the vaults $41,000 worth of second liberty tem- MAYENCE, Germany, October 22.— |assume their_share of the reparations. | porary coupon bonds on August 20, Rhineland forces entered Mayence at (Continued on Page 2, Column 4) 1919, involving &epa- | i i ¢ Foening WITH SUNDAY MORNING EDITION. WAs N'T Ryt ~ NPl MONDAY, OCTOBER 29 R Poet Winner in Duel With Duke - By the Associated Press. PARIS, October 22.—In a duel fought this morning over a blow struck in a theater ticket. tax dis- pute, Duke Lanza de Camastra, Italian nobleman, was wounded by a thrust from the sword of Jacques Richepin, author and husband of Cora Laparcerie, actress-theater manager. The duke's forearm was penetrated about an inch and a half by his opponent's blade during the second phase of their passage at arms. The wound was not dan- gerous, and the noblemaa insisted on continuing, but after four min- utes’ further fighting his inferiority, in the clrcumstances, became so evident that the seconds called the fight and declared the poet the victor. The dispute arose at the Cora Laparcerie Theater when the door- man tried to collect a government tax on a free ticket presented by the duke. Richepin endenvored to explain matters, but the Auke be- VET BUREAU PROBE HEARINGS OPENED Gen. Hines First Witness Called Before Senate Committee. 2o The Senate committee appointed at the last session of Congress to in- vestigate the Veterans' Bureau began | open hearings today after having de voted more than six months to the collection of documentary evidence. Brig. Gen, Frank T. Hines, director of the bureau, was the first witness called. Bxamination of witnesses was con- ducted by Maj. Gen. John F. O'Ryan of New York, general counsel for the committee, and immediately after he had begun his opening statement he was interrupted by Charles R. Forbes, former director of the bureau, who said he desired to enter formal ob- jection to some of the statements. Chairman Reed told Mr. Forbes he would be given opportunity to explain, to object to and to contradict any state- ments that might go into the record, but for the sake of orderly procedure his comment should be furnished in writing so it could take its proper place in the record. Came From Sick Bed. “I have come 3,000 miles and out of a sick bed to be of such service to you as I can,” said Mr. Forbes, “and at the same time to protect my own interests and integrity, which is being attacked In these proceedings.” Chairman Reed interrupted to an- nounce that this “is not a trial of Col. Forbes or any other Individual.” “If any person is reflected upon in the course of these hearings,” he added, “that_person will be given full oppor- (Continued on Page 2, Column 2.) {STEAMER STRANDED, RESCUE SHIPS ARRIVE San Gil on Reef Near Canal—Nine Passengers and Part of Crew of 51 Are Taken Off. By the Associated Press. BOSTON, October 22.—“Passenger and crew well,” said a message re- ceived here this afternoon from the stranded steamer San Gil by way.of Colgn. The message added that there was danger from the gale If it con- tinued at its present strength. The nmessage was sent to the United Fruit Company from the ves- sel. It added that the San Gil struck a reef at 4656 a.m. today and pounded heavily until 9 am. when the wind moderated and the sea subsided somewhat. The message sald that the steamer San Blase and Calanares of the United Fruit Company had ar- rived at the scene and that the.nine assengers and some of the crew of Rity-ome would be transferred to these vessels. Over Tax on Theater Tickets came offended and is said to have applied the epithet “blackguard" to the poet, Richepin responding with a slap on the ducal cheek. The duel took place at clennes, near Versailles. precautions were taken the meeting place secret The seconds for the duke were Marcel Boulanger, the artist. and Commandant Droin, while Riche- pin's seconds were Jean Joseph Renaud, one of France's greatest authorities on dueling, and Max- ime Gerard of Figaro. The duke attacked furiously, but the poet’s sober style soon had the Italian on the defensive, panting from his own exertions afld brea ing ground, and finally receiving a wound just above the right wrist. The duke was loath to desist, but the seconds ruled that his in- feriority was so manlifest, owing to the wound and consequent loss of blood, that he would not have a falr chance, and they overruled the duke's proposal that he use his . left arm to defend himself to the finish. The adversaries shook hands, the voct congratulating the nobleman on his courage. Later the two were reconciied at a lunch- eon, where they drank one an- other's health GAS RATE HEARING - DELAYIS REFUSED |Utilities Commission Open Case Despite Plea of Company. to keep The Washington and Georgetown | Gas Light companies today falled in n effort to persuade the Public “tilities Commission to postpone con- | sideration of a reduction In the price | of gas. | As soon as the public hearing had opened in the District building ‘this morning the companies, through At- torneys Benjamin Minor and George | P. Hoover, moved that the entire | auestion of gas rates be deferred un- til the disputed valuation of the gas properties has been settled. Maj. J. Franklin Bell, chairman of the commission, overruled the motion and directed Walter C. Allen, secretary to the commission, to take the and and present the reasons which prompted the commission to institute the investigation. “Excessive” Rate of Return. Mr. Allen testified that for the first seven months of the calendar year 1923 the income available for return was $746,311.71. Applying this to the estimated valuation of the property for that period of $13,143,449.14, the rats of return was 9.73 per cent, accord- ing to the secretary's testimony. This is more than the commission has always regarded as a reasonable re- turn. Continuing his testimony, Mr. Allen made another complilation which showed that if the companies’ busi- ness is the same for the remain- der of this year as it was for the same months last year the rate of return at the end of the calendar year would be slightly more than 10 per cent. Mr. Allen then was direcied to put Into the record the present rates for gas, which follow: To users of less from_ 200,000 'to 500,000, 95 cents; from 500,000 to 800,000, 90 cents and all over that amount, 5 cents: Return for 1022 Mr. Allen’s testimony showed that for the year 1922 the return on fair value was 7 4-10 per cent. Attorneys Minor and Hoover cross- examined Mr. Allen at length to bring out the polnt that the Washington Gas Company has not been allowed a sufficient sum for general maintenance and amortization. The testimony showed that the practice of the company is to allot 9 cents per 1,000 feet of gas sold to this fund, but Robert O. Luqueer, expert witness for the company, testi- fled that in past hearings the com- pany has asked for an allowance of 11 or 12 cents per 1,000 feet of gas for that fund. The companies placed Mr. Luqueer, an accountant, on the stand to ana- lyze the record of operations for the commission. He inserted in the rec- ord a number of exhibits explaining his analysis, than 50,000 cubic feet a month, $1.05 ! er 1,000 feet; from 50,000 to 200,000 ! Star. 1923 —~THIRTY-TWO PAGES. ILET US HAVE PEACE IN FISCAL AFFAIRS No Radical Unsettlement of New Organic Act—No Change of 60-40 Ratio. DO NOT RENEW FIGHT TO RESTORE 50-50 RATIO Or Kill Definite Proportionate Con- tribution System With Lump- Sum Payment Plan. Editorial Correspondence of The Star. THEODORE W. NOYES. E The organic act of 1878, pronounced by the Supreme Court of the United States “the constitution of the Dis- trict,” has been amended in due form and with deliberation. The new or- ganic act of 1922 displaces the act of 1878 in fixing the fiscal relations of natlon and Capital. The wise and just law of 1878 benefited both Capital and nation for forty-four years. The nation, which had grossly and shamefully neglected its National Capital obligations for | more than three-fourths of a century, made self-imposed reparation by the act of 1878; and as the result of the operation of this equitable and benefi- cent law for nearly half a century the nation has regained its self-re- spect as Caplital builder, and the Capital, which had been a humiljation to its people and a reproach and a shame to the nation, has become an inspiration to national patriotic pride. It is not surprising that the change of conditions in half a century should make reasonable and fitting an over- hauling of the District “constitution.” No state constitution has, it is be- lieved, shown greater stability in strength of resistance to radical change for so long a period. A Guarantee of Peace and Justice. One of the great benefits to nation and Capital of the act of 1875, per- haps next in importance to its guar- antee of just taxation of the District by a taxing body in which the Dis- trict is not represented, was its function as a compromise peace- guaranteeing law which assured fiscal certainty in the relations of nation and Capltal and relieved the people of the District and the people of the United States, including the Ame ns of the District, of annual ir- ritating, friction-causing and prej- udice-breeding controversies over the District fiscal relations. The word- ing of the law of 1922, making spe- cific fiscal provisions covering a period ofsfive vears and thereafter, and the declarations the legislators who have been con- spicuously active in the enactment of the new { tention that the act of 1922 shall per- form the same friction-lessening, prejudice-removing and peace-pro- moting function as that of the law of 1878, and record the deliberate determination of the national legis- lature that the mew law shall have full opportunity to develop its merits and demerits without disturbance through the constant raising and dis- cussion of new propositions concern- ing the fiscal relations of nation and Capital. Lesvening Prejudice and Friction. of Our natlonal legislators and people of the District are alike weary of and disgusted with annual squab- bles, inflaming prejudices and breed- ing recriminations over the exact fis- cal relations of nation and Capital And minor injustices to the Washing. tonian, created or left uncorrected by the new law, become as nothing in view of the biessing for years to come of certainty in national relations and of assured fiscal peace. Fentures of New Organic Act. What then are the characteristic and dominating features of the new vering It ix determined that the wise and just principle of definite propo tlonate contributio by mnation an Capital ital upbullding t in determined bution toward be 40 per cent by the nation and 60 per cent by the Capital taxpayers. The reservation of power by Con- gress to make appropriations in_ex- ceptional cases on some other ratio than 60-40 does not detract from the stability, permanency and general application of the new ratio. The cu: tom is well established of appropriat- ing on the full cost basis for the Di trict_in exceptional cases whenever Congress pleases without any author- ity _to do so in the substantive law; and by putting on record authority to make exceptions. the way is opened for the District national expenditures, though made in the District, shall continue to be paid wholly from the Treasury. and that the half-and-half obligations shall be fally met that are con- tractual, as in the case of sinking fund payments on the 3.65 bonds, or that will otherwise make a change of ratio (from 50-50 to 60-40) inequi- tably retroactive, as in the case of final expenditure of the District's mil- ilons of tax surplus accumulated under the half-and-half law. The new ratic of 60-40 Is as the gen. epal rule definitely and permanently or for an undefined period substituted for the 50-50 ratio of 1878. Hold Fast to New Organic Act. The decision on this point should be permitted to stand without appeal for several Congresses at leaxt. The national legislators and District tax- payers are entitled to a wholesome and refreshing period of rest from al controversy. No proposition to restore the Aifty-fifty ratio, or to sub- itute an indefinite national co ution for one that ix definite, o provide a lump-sum national ce tribution instead of the nation's pro- portionate. contribution under the ew ratio should receive considera- tion. Revival of the ixsue in any wkape is comtrary 1o the upirit of the compromise enactment of 192 New Burdens Patlently Borne, Wholehearted assent by the Dis- trict to the law of 1922 involves sacri- fices and the bearing of new burdens, which should, however, be cheerfully or at_least philosophically endured. What are these additional The new organic act, while it retains the vitally essential principle of definite proportionate contribution, upon which the law of 1878 was based, changes the ratio of contribution from 50-50 to 60-40, the District becoming the majority con- tributor. Under the old law the Dis- trict_would nominally contribute $10, 000,000 out of & capital-upbuilding ap- propriation of $20,000,000; under the new law it would contribute $12,000,000. Other provisions of the new law, supplemen! this enlargement , of the - District’s proportion- -of contri- FOR A FEW YEARS indefinitely | law show the fixed in-| the | organic act? 1.After a pertod of wa- | to urge ‘that purely | burdens? | “From Press to Home Within the Hour” delivered every evenmng and ing to Washington homes at The Star is Sunday morni 60 cents Saturday’s * Sunday’s Circulation, per month Telephone Main 5000 and service will start immediately. Net Circulation, 91,069 97,795 TWO CENTS. Put on Probation 6 and 12 Years For Being Drunk Judge Mattingly in the Police Court today established a precedent by placing Walter Gaines, colored, pleading gullty to drunk, on six years’ probation and followed that up by placing Henry Stanard, col- ored, on twelve yearfs' probation. Gaines sald he had not been in court for being drunk for six vears. “All right,” said Judge Mat- ingly, “place him on six years probation.” The same formula was used in the case of Stanard, who claimed that he had not been drunk for twelve years. Usually such defendants are given six months or one vear probation. BOUICS FLEE FIRE; Basement Blaze Fills House With Smoke and Damages Furnishings. The serenity of Massachusetts ave- nue in the vicinity of Dupont Circle was disturbed about breakfast time today by a two-alarm fire, attended | by epectacular features, that broke at 2007 Massachusetts avenue. { Smoke filled the house so quickly !that Mrs. L. H. Hayward, a daughter |of Mr. and Mrs. Bouic, was trapped jin her bedroom and had to be res- | cued by firemen. Wearing oxygen gas masks, three firemen climbed in a | second-story window, picked up the | passed her down a ladder to safety. Mr. and Mrs. Boulc were at break- tast when a colored maid rushed in and announced that the basement was |on fire. Joseph Matthews, who had |stopped in to discuss some business imatters with Mr. Bouie, rushed out {and turned in the first alarm. Before he could return smoke was pouring from every window in the house. Mr.. and Mrs. Bouic were obliged to flee. Two hats were the only articles’ Mr. Bouic could snatch be- fore the choking smoke forced him to rush to the front pavement. In the meantime Mrs. Hayward was try- ing to find her way through the deadening fumes down the front stairs. First Company Raises Ladder. Hearing that the young woman was still in the house, firemen from the first engine company to arrive raised a ladder to the second floor front window and started up. The smoke had become so thick that before en- tering they were obliged to don their masks. A crowd watched the rescue from points of vantage. Mrs. Hayward was assisted to an apartment house across the street and soon revived. An hour later she was able to return to her home, and, it was atated, she suffered no serious effects. Scarcely had Mrs. Hayward been carrfed fo safety than the firemen were notified that a casket full of jewels worth several thousand d lars lay on a bureau in Mrs. Bouic's bedroom. Once more the masked fire fighters clambered up the ladder and returned a few minutes later with the gems, Mrs. Boulc sought sheiter next door in the home of Mrs. R. B. Roosevelt, 2009 Massachusetts avenue. Second Alarm Sounded. In the meantime the flames had progressed so far that Chief G. S. Watson ordered a second alarm sounded, and the bedlam of more | apparatus arriving attracted such a large crowd that Capt. Flather and a detall of reserves from the third precinct was called to preserve order. | The fire started in the basement and was confined there. Every fire- man who entered the bullding was obliged to wear his gas mask. Chlef Watson said the blaze offered the first opportunity the department had of trying out the masks, and he was !clated over the result i bution, provide the increase of taxa- | tion which is to enable the Capital to meet a 20 per cent bolstering of its proportionate contribution. Taxation Heavily Increased. For example its intangible tax rate is Increased 66 2-3 per cent. In the ar before the new law (the fiscal { year ending June 30, 1 nue from this source was $949,058. In | the year after the new law (the fiscal year 1923) the revenue from intan- gibles was $1,723,443.10, an increase over 1922 of $774,385.10, or nearly 82 I per cent. The District's tax on intangibles continues to be imposed on the whole- some classified tax system, and with an increase of rate (from 3 to 5 mills), which causes it to lead in rate, it is believed, among the classifled tax states. | The most conspicuous states in this class are: Minnesota (3 mills), Mary- {land (3 mills local, 1% state), Penn- sylvania (4 mills). Rk This larger rate is applied to a more extensive list of objects of taxation than in such states as Maryland, which does not tax mortages or bank deposits of non-residents, or of resi- idents unless they bear interest, or book-accounts, or in general non-pro- ductive securlties or credits; Minne- sota, which does not tax shares of stock, money and credits belonging to |incorporated banks, certain mortgages and municipal bonds; Pensylvania, which does not tax bonds except those of Pennsylvania corporations owned by residents of Pennsylvania, and Delaware, Washington state and Idaho, which do not tax any Intan- 5. f 8|1l_)‘||¢e District intangible tax seems, 1 on the other hand, to cover all credits whatsoever. The District's revenue from its per- sonalty tax, on tangibles and intan- {gibles was in the fiscal year 1923 ,503,045.20. e aRure is to be compared with the revenue from this source us shown by the 1920 figures in the following citles, complled by Statistician Grogan, in charge of the census bureau statistits | ot cities: Statisticlan Grogan's 1920 Figures. PERSONAL PROPERTY TAX LEVY. Per caplts, Chicago - 2,863 7.00 Philadelphia Clevelund . 8t Louls | Rasbmgton (i | Waanington (1923) . New Orleans. Minneapolls Jersey City Louisville - Loss of Certaln Rev The District’s tax burden is to be further increased to compensate for the loss from its proportionate con- tribution of a percentage of certain DAUGHTER RESCUED out in the home of Harry V. Bouic,| | partially overcome young woman and | 22) the reve- | TEAPOTDONE O FOURFIFTHS CONE EIPERTS DSELOSE Naval Reserve, Leased to Sinclair, Being Drained Away by Adjacent Operators. :“30,000,000-BARREL" LEVEL FOUND TO BE DRY Geologists Declare Bnt 26,000,000 i of Original 135,000,000 Barrels Remain in Wyoming Field. | By the Associated Press. Teapot . Dome, the Wyoming naval oil reserve leased last year to Harry F. Sinclair, Is being drained so heav- ily by adjacent private operators that it will produce far less oil than orig- inally predicted, in the opinion’ of two expert geologists who investigated the situation for the Senate public lands committee The reports of the two investi- sators, lald before the committee to- {day In its Inquiry into charges pre- iferred by Senate critics of the Sin- clair leases, supports in general the contention of administration officials | that the geological position of Teapot Dome made it no longer feasible to jcontinue the policy of leaving the oil in the ground as an undeveloped reserve, Although the bureau of mines esti- mated originally that the reserve con- tained from 135,000,000 to 200,000,000 {barrels of ofl, the committee geolo- | Bists predicted that the yield from the main-bearing sands would not exceed 24,000,000 to 26,00,000 barrels. This estimate is even smaller than that recently made as u resul: . f separate survey by the } terior departments. Belleved Lease Advisable. The danger of drainage of the re- serve by private operators in the ad- Jacent Salt Creek field was put for- ward by former Secretary Fall of the Interior Department as a compelling cause that the leasing policy be in- corporated. 1In agreement with that vlew, two geologists not only report- ed that it was impossible to hold the reserve for the Navy indefinitely without having it oil drained off by the Salt Creek private operators, but both of them indorsed the policy of developing Teapot Dome by leasing to one efficlent management. The two geologists, Frederick G. Clapp and James O. Lewis of New York, were selected last spring from a list of 100 submitted by the geo- logical survey There were indications today that their report would have an impor- tant effect on the trend of the com- mittee's inquiry, which was begun in respons to a resolution by Senator La Follette, republicam: of Wisconsin, after he and others had assailed thé Sinclair, lease s a colossal raid on valuable government property. About 60 per cent of the Teapot Dome reserve was found by the two geologists to be oil-bearing land. While the bureau of miries had esti- mated that its “first wall” level would yield 30,000,000 barrels of ofl, the Zeologists said that level had been found to be entirely dry. From the “second wall” level, Clapp esti- mated a yield of 26,000,000 barrels. Mr. Lewis' estimate was ‘not less than 12.000,000 barrels of ofl nor more than 24,000,000 barrels.” Sees High Costs. “The higher figure is but tion of the estimate of 1 ibarrels made prior to the develop- | ment by the bureau of mines,” said Mr, Lewis. “Attractive profits from drfiling and_ producing this oil will not be made unless future prices average considerably better than at present, and unless production proves to be nearest the maximum estimate. These estimates are only for the Wall creek (or second) sands, but the possibilities from deeper sands are, in my opinion. not attractive.” i~ In addition to the prospective oil production from Teapot Dome, Mr. Clapp estimated that its natural gas content_was 33,000,000,000 cubic feet. (Continued on Page 2, Column 6. frac- 00,000 —_—m | miscellaneous receipts which. hither- | to solely enjoved by it, must here- {after he divided with the nation. In | the year before the new law vear 1922) the District had $1 |of this revenue to apply upon its half- | contribution. In the fiscal year 1923 | the District had only $1,480.862 of | such revenue to apply upon its 60 per | cent contribution. ©Of this revenue | there was credited to the United States in 1922 $412,464, and in 1923 | $892,618. Thus the District's propor- tionate contribution fs increased. and a source of revenue for meeting this contribution is at the same time de- creased. s The change by the 1922 law standard of realty assessmen two-thirds to full value has practical (though not a_theo tendency to increase the D) real estate tax levy. The that the tax rate Is alone a fair meas- ure of tax-burden is so widespread and deep-rooted that reduction of the District’s tax rate, which follows the raising of its assessment standard, in- vites the criticism of all the American communities which have low assess- ment standards and practices and high tax rates, and which mistakenly believe that their higher tax rates necessarily mean that they are higher taxed. The District's reduction in tax rate in the year after the ment of the 1022 law, instend of mean- ing, as superficially construed, a re- duction of tax-burden, meant a dis- tinet increaxe in that tax-burden, since the anwen raised in gremter proportio centage than the tax-rate wi ered. Washington's tax-rate, which hefore the 1922 jaw was $18.50 per thousand, was reduced after law to $13. Wasx Washington's tax-burden cor- respondingly decreaxed or decreased at all? No, it wan Increased. Under the new wtandard of asxessment a $13-rate corresponded to $19.50 under the old standard. So that in efect the new tax-burden was te the oid as $19.50 to $18.50, and not as $13 to $18.50, as it would have been if the tax-rate alone were a reliable stand- ard of measurement. | RUMELY REVIEW DENIED. Supreme Court Refuses to Reopen New York Mail Case. Thé Supreme Court today denied a review in the case of Edward A Rumely and others sentenced to the penitentiary during the war for fail- ing to report to the allen property custodign their indebtedness to the Gernman government in cennection with the purchase of the New York Evening Malil.