Evening Star Newspaper, October 24, 1923, Page 1

WEATHER. Cloudy to partly cloudy tonight; to- morrow fair; little change in tempera- ture. Temperature for twenty-four hours ended at 2 p.m. today: Highest, b1, at noon today; lowest, 44, at 8 p.m. yes- terday. Full report on page 7. Closing N. Y. Stocks and Bonds, Page 28 —— = N B Enterea na-clusr matte) _}\0' -97030:_90:1' oMcc_Washington, D G. ch WASHINGTON, * DESPERATE RIOTING TAKES HEAVY TOLL AS STARVING MOBS * FGHT IN GERMANY All Parts of Nation Torn by = 3 ¥ | crippled wire systems, but the situa- Fighting and Strikes.| "8 “ousitine Toox a few aaai- ! tional villages and towns yesterday Troops March on Commu- [LRGh nist Trenches. “CAPITAL” By the Associated Press. DUESSELDORF, October Rhineland republican movement has spent its first force, according to meager reports received over the and last night Coblenz, their “capital,” and Mayence, nd reaction is apparent in a number | of the towns they still hold. NINE KILLED IN COBLENZ. By the Associated Pross, ONDO! ober 24.—Reports re | ceived in Berlin indicate the Rhin FRENCH ACT TO PREVENT DISORDERS AT MAYENCE e 5 RENUATORY FIHT AFTERSUSPENSIN ness of General Revolt—Hunger| Basis of Wide Disorders. i Supporters Pass Resolution to Determine Who Paid Assembly’s Expenses. By the Associated Press PARIS. October 24.—A German note delivered to the reparation commission today asks the com- misslon to begin an examination into Germany's capacity for pay- ment and to allow representatives of the Berlin government persom- ally to explain the situation and the mensures taken by Germany for reforming her budget and stabilizing her currency. By the Associa‘ed Press. OKLAHOMA CITY, Okla, October B the Assocfated Pross. RLIN, October 24 —Heavy fight- fng is reported In advices from Ham- Tiurg this morning to be proceeding P lwhion seste eached a in the populous Barmbeck distr hion seaterdnyjinpeached | Sor ikl i suburb northeast of | Walton. broke on the floor of the the city. | house today when Representative J. Reports from Bremen said the|W- Callahan, démocrat, Latimer proletarian militia tried to force a|county, Introduced a resolution pro- general strike in that port. They | viding for an Investigation to deter- closed the dockyards and the Vul-|mine who paid the expenses of house can Company wor the reports | members when they attempted to #tate. Otherwise the response was |convene September 26, and were dis- half-hearted. persed by military authorities upon From numerous other parts of|orders from Gov. J. C. Walton. Cal- rmany came reports of strikes and lahan s a Walton supporter. rloting. At Erfurt, street fighting| The resolution was adopted after a followed demonstrations, one police- | brief but acrimonious debate, and man being killed and two policemen | wag referred to & committee investi :T}\urod in addition to other casual- |gating conduct of house memb"f; AL Grimma, Saxony, fighting oc- | 1naties to Astermine. whether the Ku irred this morning. At Annaburg, { Klux Klan or certain “interests” in ony, communists occupled the Tulsa had contributed funds for the since the convening of the special sessfon of the Oklahoma leglslature, by Sl { attempted session. Aoy Al | Representative J. B. Phillips, demo- Troops Engage Communists. grat, Cléveland tounty, assailed Cal- ahan for his reflection on the house A telephone message from Ham-|pembers who sought to answer the burg this afternoon said the main |call for the session that was blocked force of the communists was in-|by the Eoxsenon H‘e der?an:tdca{\ o otw tmmediate investigation of the Cal- ched thirty-two miles from the ||t charges, and declared that it ity between Wandsbek and Itzehoe. | it js proved untrue he would move and that soldiers were marching on | Callahan's suspension from the house. the barricades Callahan rejoined that he had the A rumor fn clreulation ‘that ma. |PFBOG Snd Gescl e hoose o lok i 3 had been landed from the war-| While the house fight was In prog- ps at Hamburg was contradicted |ress both Gov. Walton and Lieut. the authorities here. | Gov. M. E. Trapp arrived, and were - ol . killed ana|$Mcially served with the Senate reso- VeI (PO (ComON: wero ed and |{ytion, adopted late yesterday, sus uinetecen severely wounded, and at|pending the former temporarily an least fourteen other persons were |Na2ming the latter acting governor killed and thirteen wounded in yes- | Jurin€ the impeachment flled of Gor. terday s rioting in Hamburg, accord- | o 2 d-| "An effort towfile two executive ink to advices thus far received in ohdore ' with ilie Wecrotery. of stata erlin {was made today by a clerk from the In the suburbs of Barmbeck and | gmice of Gov, Walton. Miss Una Rob- Debsheide, fighting broke out afresh orts assistant secretary of state, re- | yesterday afternoon when the com- fugeq to accept the papers in view of | niunists began firing from the roofs | the resolution adopted by the state £ houses. A vigorous counter action as promptly begun, and the polic ast accounts were completely control of the situation. The separatists have enate suspending the governor from | office, Observers believed the incident in!may be made the basis for court ac- | tion to test the legality of the execu- tive's suspension. been driven om the government buildings in - Coblenz, according to late advices re- | SSVEIAE 16 Netifed. : ceived here, and altogether from| The suspension ‘resolution was in- Rheyat troduced by Senator W. M. Gulager lof Muskogee. A committee was Wceach iExevest ior: | named to inform the governor and ms from German sources In | ll€utenant governor of the action. ppclegrams from German sources in | 730" Grimittee delivered its message Mayence say that 2 mob attempted to | 1o the governor in his office. fnvade the railroad station, where a| The senate notified the house it large number of atints thud sas- | Wonld Sonyere ot any dme 4o ine: & 5 i : ceive any more impeachment articles sembled, but that French gendarmes | 2900 0", the lower body and then frustrated the attempt. The French|adjourned. The house adjourned at the eame time. The text of the resolution suspend- ing_the governor follows: “Whereas the house of represent- atives, @f the ninth legislature, pur- suant to the provisions of -the con- stitution, has flled with the senate articles of impeachment, and, “Whereas J. C. Walton, Governor of Oklahoma, is charged with of- fenses made grounds of impeachment | by the conctitution, and, cabi Whereas the filing of the articles munists, supported b | with the senate automatically sus- i have taken over the policing of the | town, and the French troops are ready for all emerg: As the reich sssembled toda an_situation, ncies, i at or federal council to consider the Ra- political observers d little to make them think thati n government was not is that probably The united resem: nfronted with a cr would mean ite dow isters in the coalitiol con fall. Tollowing, a¥e distured over the | pends J. C. Walton as governor and t that e ensturbed over the | e office with. its duties and com- W hurried to red Saxons. whereny | pensations devolves upon the lieuten- Javaria, ope obedier o - | ant governor; aiares T Bipisonedient Ko ihe | “UNGw, therefore, be it resolved by is mot subjected to similar discipline, | the senate, that the governor and 1t satistactory understandimg res | lieutenant governor be advised as to sarding Bavaria is not reached, the'their duties in this event, and that the social may withdraw their repre- | Secretary of the senate notify the Sentation in the caninet thes pramics | overnor and lieutenant governor of the procecdings thus had and to pre- e Gel ROV e . F vell | shen Cantemmpioyernment In.a well) (ht"to each of them a copy of this % 5 resolution. & HUNGER CAUSES FIGHTING. | The senate will resolve itself into & {court of impeachment, it was said. Chief Justice J. T. Johnson of the state supreme court will preside. Meanwhile, the house is to continue consideration of the remalning twen- ity counts in the impeachment indict- { ment. 4 Gov. Walton was among the last to eave the darkened state house last With a small group of friends ) German Rioting Not Sponsored by | Communists. BY HIRAM K. MODERWELL. bl to The Star and Chicago Daily News. Copyright, 1023, BERLIN, October 24.—The com- unist uprising 2t Hamburg does not have the approval of the Berlin fac- tion controlling the party, which secognizes the military inferfority of | the communists and the hopelessness | of a general revolt. | The Hamburg affair is led by the | Jocal party which has always been regarded as somewhat undisciplined, ally, it is not an uprising of 'mmunists, but an uprising led by communists, because of the desperate sood situation in Hamburg, where Jiving costs are 50 per cent greater than in Berlin, The writer i3 informed that the Hamburg communists do not hope to establish anything resembling a so- viet regime. Their greatest hope is to obtain the police power for a few vs and seize the opportunity to ra- tion the stocks in the Hamburg shops 10 the working class at reduced prices. Thereby, they hope to achieve “propaganda by the deed.” Results Spontaneous, It should be understood that the riots now going on in Germany are not the result of communist con- kpiracies, but are spontaneous hunger revolts. The communists, however, plways will be found leading them, " iCemtinued on Page 5, Column 2.), By | night. Continued on Page 13, Column By the Assoclated Press. DOORN, Holland, October 24.— The visit which former Crown Prince Friedrich Wilhelm of Prus- sia is now making at Doorn cas- tle is regarded as having consid- erable significance. According to information from several reliable sources and from persons close to the former kalser, the presence of the prince in i Doorn is connected with the re- turn of Princess Hermine from the reich, whence she brought very important news concerning the activities of the nationalist military party and the chances of the eventual return of William Hohenzollern to the throne, 24.—The 24— The bitterest fight precipitated! RHINE REVOLT FAILING; IS CAPTURED |Republicans Ejected From Coblenz With ' Nine Killed--Lose Duesseldorf and Mayence. 4 {land republicans are losing ground, says a dispatch to the Central News this afternoon. ! They have been ejected from Cob- lenz, the message states, nine persons i being_ killed there The republicans also have been driven from Duessel- dorf and Crefeld, the dispatch adds. HOLD THIRD OF ALLIED AREA. By the Associated Press. | coBLE October 24.—The _terri- | tory under control of the new Rhine- land republic appears to be limited | to about one-third of the area occu- | pied by _the allied troops. according (Contin ‘age 5, Column 2. PRESIDENT'S STAND ONAID TO EUROPE VOICED BY HARVEY London Speech Held Inspired i by White House Visit. Hughes Offer Unchanged. i BY DAVID LAWRENCE. Ambassador George Harvey's fare- speech, telling Great Britain in- formally that the United States is anxious to help Europe, but that the door has been closed by Europe her- {self, is exactly fn line with the feel- |InE of the Washington administra- tion, and may be regarded as an a swer to all the pleas for American aia which lately have been directed to- ward this country. i Former Prime Minister Lloyd George, ’l‘erI- r Smuts of South Africa, and | publicists galore have been continu- ally saying that the United States could help Europe and must help. But the revelation by Ambassador Harvey | that the door has been closed and no {invitation for American help issued is the truth of a situatlon no more enjoyed by the American government than by the Europeans who want the United States to help. Deor. Closed by France. The government which closed the idoor is Frante and the Individual responsible is Premfer Polncare. Practically all of Europe may ask for America to interfere in arranging the reparations problem or the eco- nomic situation generally, but uninvited by the principals the United States will not heed the request. For the fact 1s that the desire for American ald is today almost unanimous in Europe, but the single dissent is sufficlent to keep Americ AWAY. So while appeals may come from all quarters of the globe, the { States will wait for an invitation from France. Exeept for the publication of speeches like that of Ambassador Harvey, which in itself is a signifi cant event, the United States govern- ment will not renew its proffers of { heip. The speech made by Secretary of State Hughes at New Haven last year still stands as American policy, and whether the plan proposed therein now is out of date and needs modifi- |cation, or whether some other plan | which will be more effective is pro- i posed, nothing will be done by Amer- fea until an explicit request for in- tervention comes from all the princi- pal powers. Must Ifave Invitation. The position of the Coolidge admin- stration, as outiined by Ambassador Harvey, who, it will be remembered, =pent several days in intimate con- ference with the new President as his personal guest at the White House, Is that America respects the underlying principle of a Monroe doc- trine applied to Europe—namely, that while the United States would brook ino Intervention from Europe unless invited, so Europe can hardly expeot the United States to take the initia. tive in anything in the old world un- less invited. ‘The opposi’e viewpoint is itend that America doesn't’ have to be invited to engage actively in pians for the rehabilitation of Iurope bes cause American commerce is directly involved and because America bey came a partner in the allled and asso. ciated power group in April, 1917, and retains the privileges of a’ principa: The United States is still insisting upon the exercise of legal rights de rived from that partnership agree. ment and the co-operationists say this imposes on America the obligas tion of using her diplomatic influence (for the settlement of all problems | that may be located ‘in Burope. Ambassador Harvey's speech is an accurate reflection of the cautious policy of the present administration here, but it does not necessarily glve the Viewpoint of the opposition party in America. (Copyright, 1923, Doorn Sees Ex-Kaiser Grooming - For Return to German Throne It is stated that Hermine her- self is displaying great activity, and that all her keen intelligence is directed toward the object and hope of becoming empress. More- over, quite recently, an officer of high rank from Dresden and a political personage from Munich have been guests of the former emperor, who, since this visit, has shown great nervousness. A detail regarded as vurious is the fact that a Doorn furniture dealer has been commissioned to =ell a large quantity of the rich tapestries and curtains belonging to the exile, and also a large part of_his wardrobe. The Dutch government and au- thoritles are closely watching the movements of the ex-kaiser and his son, and the police force guarding them has been doubled. . United | ¢ Foem WITH SUNDAY MORNING EDITION D O, LUNP PAYMENTIS BAD SUBSTITUTE FOR 6040 SYSTEM ! i It Destroys Unrepresented Capital’s Safeguard Against Excessive and Unjust Taxation. i {KILLS 1922 PEACE PACT, RENEWS FISCAL CHAOS | It Limits Capital Contribution of | Nation and Leaves Unlimited That Exacted From Taxpayers. ! | | Editorial Correspondence of The Star. { THEODORE W. NOYES. IIL. The threatened bill to abolish defi- nite proportionate contribution under the 60-40 ratlo in Capital upbuilding and to substitute a lump eum con- tribution by the nation should be re-| Jected for several reasons. 1. It destroys the deflnite propor- tionate contribution system, under the beneficent operation of which the National Capital has wonderfully de- veloped, and which after seven years of exhaustive investigation and dis- cussion has been vindicated by re- [tention in the 1922 law. Destroys City’s Taxation Safeguard. The compromise law of 1922 cou- | pled with imposition of new tax| hurdens snd the Infllction of varfed | material injories upon the Capital | the vitally important oftsetting bene- fit of retention of the principle of | definite proportionate contributio he District's safeguard against ex- cesxlve and unjust taxation by a tax- ing body in which It is not repre- wented. The threatened bill deprives the District of this offsetting benefit, the only feature of the compromise legislation clearly advantageous to! the people of the Capital. 2. To raise now the issue of a lump sum substitute for definite pro- portionate contribution by the nation i copen the fiscal relations peace xettlement of June 29, 1922, and to “lunge the House nnd Senate {nto the | old wearisome wrangle, 8o hurtful to the District, over the issme of def- mite or indefinite proportionate co: s toward Capital upbnild. over the ratio (50-50 or: e proportionate co! Ferfbution: | Destroys Fiscal Peaee Settlement. | The avowed purpose and D 6 | iresult of .the new law was to. bring to Houge and Senate and people of { the District a period of wholesome |and refreshing rest from fiscal rela- | tions coutroversy. If the act of 1922 left for a few years to work out| ts vindication on its merits or itsl failure on its demerits, this needed | rest will be secured. If the old con- troversy over definite proportionate | contribution is to be renewed by compuleory discussion of the threat- ened bill, this rest will be denied and one of the avowed main purposes | of the act of 1922 will be defeated. | Fixcal Chaos Again. | The understanding when the act of | }June 20, 1922, was agreed upon by House and Senate viewed that act as | |a compromise measure dicposing for | many years of these troublesome fis- ation issues. The District's | ution toward Capital upbuild- | ing was increased from 50 to 60 per | cent; its tax rate on intangible per- sonalty was increased 66 2-3 per cent, jand the foundation was laid for in- j creasing its realty tax; it was deprived of _exclusive credit for |large sums of miscellaneous receipts hitherto solely enjoyed, this action inflicting a heavy loss, and it was { compelled to accumulate from fts tax | money of present years (every cent of which was needed to meet the urgent | municipal needs of today) a fund of millions to provide in advance for meeting the first half-year expenses | of 1927-S. In partial compensation for these drastic exactions the Dis- trict was to enjoy for five vears and indefinitely thereafter the benefit of approximate certainty as to its ratio of proportionate contribution; it was through increased respect to be shown to the Commissioners’ estimates to have in substance the privilege of in- fluential participation in shaping ap- propriations of which it should pay 60 per cent, and it was to be spared for a long perlod the hurtful dead- locks over ratios between House and Senate which annually endangered the District appropriations and un- deservedly prejudiced House senti- ment against the Capital community. But no sooner was the definite 60- 40 ratio fixed by compromise agree- ment, leaving only the surplus ques- tion to be decided equitably by Con- gress, and almost before the Capital community had adjusted itself to its new fiscal organic act and had begun to enjoy the promised bliss of fiscal peace, & proposition appeared to re- pudiate the agreement upon the 60- 40 ratio, to substitute a system of unrelated contribution by Capital and nation and to precipitate Washington taxpayers into the fiscal chaos from which they had recently- emerged. And today, when tho prospect of fiscal peace has grown brighter; when, by the certificate of the controller general, approved by the joint surplus | committee of Congress, the District's treasury surplus has' been demon- strated to exist, and the troublesome surplus question, except for minor equitable readjustments which Con- | gress can make at {its leisure, has: been removed from the class of preju dice-promoters and _friction-breeder: revival is threatened of the lump- payment proposition, and our vision of fiscal peace and rest vanishes, Vital Feature of 1822 Law. The vital feature of the act of 1922, carried over from the act of 1878, is| |that it fixes a definite equitable stand- | lard of national participation in Capi- tal making, related to the conmtrib: tion exacted in taxes from the Capi-! tal community, and does not leave this standard to the shiftings of ca- rice. Pilwo practical questions in respect to financing the Capital have been of | vital importance from the beginning: (1) Shall the national and local con- | tributions be definite or indefinite, re- ' lated or independent; (2) Who shall | determine the relation of the amount of these contributions, respectively? The history of the Capital has dem- | onstrated distinctly that these con- tributions should be definite and re-| lated; and that if indefinite and unre- ; related to insure justice each contrib- | utor should have a voice in determin- ing the amount of his contribution. Since the day of the creation of the Capital the nation’s obligation toward the nation’s city has been the same— primary, exclusive and dominating. Not the obligation mgu, but the de- gree in which it has Been rccognized \ i J;})H”I I . BRIGHTER BUSI} LLOYD GEORGE HERE EARLY TOMORROW Ex-Premier to Be Greeted by High Officials—Lunch With Coolidge. David Lloyd George, war-time pre- mier of Great Britain and one of the guiding powers at the Versallles peace conference, will become the guest of the nation tomorrow, when he arrives in Washington for a con- tinuous round of official visits and formal festivities that will continue through Saturday. Accompanying the famous British statesman will be Dame Margaret Lloyd George and their attractive young - daughter, Miss Megan Lloyd George. Arrangements for their own entertalnment while in the National Capital are scarcely less elaborate than those prepared for the prime minister himself. Car Arrives Early. D Lloyd George's car will arrive at| Tnion station = shortly before 7 o'clock tomorrow morning. The dis- tinguished visitors will be met at the station by Third Assistant Sec- retary of State J. Butler Wright, and Henry G. Chilton, counsellor of the British embassy. Special cars will conduct them to their hotel, via the Capitol, the Congressional Library. through the Mall to the Institution and the National Museum. | At 11 o'clock the former prime minister will go to the State Depart- ment to pay his respects to Secretary Hughes and at _11:30 will be escorted to the White House to be formally presented to the President. From that second every minute of his time will be crowded with formal festiv- ities and calls. He will have lunch with_the President and members of the President’s cabinet. Will Meet Wilson. Probably no other event will be more important to Lloyd George than his meeting at 3 o'clock tomorrow afternoon with former President Wil- son, one of the “big four” who reared the league of nations and draw up the treaty of Versailles. It will be the British statesman's first meeting with Mr. Wilson since their stirring days together in Europe and Lloyd George has planned to spend a full hour with the former Presi- dent. Immediately after leaving the Wil- sons, Lloyd George, accompanied by Dame Margaret and Miss Megan, will motor to Walter Reed Hospital to inspect the hundreds of men there who are still recuperating from wounds' received in France. Their first afternoon in Washing- ton will conclude with a tea at the British ombassy and the night will be occupled by a formal dinner in their honor tendered by Secretary of the Treasury Mellon. While Mr. Lloyd George is visiting former Fresident Wilson it is planned that Dame Margaret and Miss Megan will be_received by Mrs. Coolidge. Friday morning will be devoted to a_yisit by the three visitors to Ar- former | Smithsonian | helped | l | | | i i 1 | { | i lon slippery streets was Washingto ny 3 WEDNESDAY, OCTOBER 24, 1923 - FORTY PAGES. SS BOOM IN “From Press to Home d Within the Hour” The Star is Sunday mornit 60 cents L 4 delivered every evening and ng to Washington homes at per month Telephone Main 5000 and service will start immediately Yesterday’s Circulation, 91,507 SIGHT. Interior Department Salary Increases Wil l Average $105 Basic Pay Now Is $1,732, and Under Reclassification Law Will Be Raised to $1,837, Analysis Shouws. The 5,573 employves of the Depart- | ment of the Interior in Washington | are to receive Increases in salary averaging $106 above their present basic salary, plus the $240 bonus, or | an average increase of $322 over their present basic salary. The average base pay is now $1,515, and the aver- age base pay, plus the bonus, re- celved by me, but not by {hosei whose salary $2,600 or over, is| $1,732. The average pay under re- | classification is $1,837. How reclassification affects the em- | ployes of the Department of the In- | terior by bureaus and by service within the bureaus is shown in fig ures made public today by the sonnel classification board. The Interior Department was the first department to get its alloca tion sheets submitted to the person- nel classification board, and the board made fewer changes in the Interfor Department allocations to grades than in any other department. Professional’s Salaries Advanced. The 1,020 employes in the profes sional and scientific service of the de- partment get an average net increase of 8 per cent above base pay, plus the bonus, as against an average of 6 per cent for all the 5578 employes. The average salary for this service (Continued on Page 4, Column 4.) per GALE PLAYS HAVOG | ALONG SEABOARD 1 Much Damage to Shipping. One Killed, Many Hurt, on District Streets. Leaving in its wake a wide trail of property destruction, the severe north- easter tha® swept the entire At-} lantic seaboard yesterday was howling rapidly off toward the arctic seas to-{ day and, s a result, falr weather Is promised Tor tomorrow. One fatality in more than a score of traffic accidents | | toll in the storm. The storm was one of the worst recorded at the local weather bureau and the first in ten years that swept in- land from the sea instead of barely brushing the coast line and swerving sharply northeast. Gales are still blow- ing in the lower laAe regions and over northern New England, but their force was rapidly diminishing and Forecaster Mitcheli sald every vestige of the storm would disappear into the far north be- fore_nightfall. Abnormally heavy rains accom- | panled the northeaster north of Maryland, New Haven, Conn., having reported _a precipitation of 4.76 inches. Thls is far beyond the heaviest rain ever recorded here in one. day, except during the month of July and August, when electrical disturbances are common. Frosts are reported as far south as Mobile, Ala., but Mr. Mitchell said no drop in the temperature is expected im- mediately. Thirty__traffic acchients between PARTIES WATCHING FORD MOVEMENT Proposal as “Independent” for Presidency on Platform Rated Radical Discussed. BY N. 0. MESSENGER. Political circles in Washington are nterested in the announcement from Detroit of the action vesterday of a | group of Ford enthusiasts in that | reglon who have called a convention | to meet in Dearborn December 12, 13 and 14 to take order for a larger convention early next vear to nomi- nate Henry Ford for President of the United States on an independent ticket. To the December meeting will be invited representatives of the American Fedcration of Labor, the National Grange, the Farmer-Labor Party and other units. The significant statement was added that Mr. Ford has not au- thorized any one to start such a movement in his behalf. It is as- sumed by politicians, however, that by the time the convention meets the sponsors of the movement will have been either indorsed or repudi- ated by Mr. Ford, who, it is sug- gested would not find it to his ad- vantage to let a movement of such size progress without his guidance. Text of Platform Indicated. The most interesting thing to poli- ticlans here was the proclamation, | signed by all attending the confer-| ence, which might be considered as! (Continued on Page 4, Column 2.) and met has been the fluctuating fac- tor in the equation, From 1800 to 1874-8 the national and local Capital contributions were indefinite and unrelated. Each con- tributed what ‘it pleased toward Cap- ital upbuilding. The nation meas- {ured its own obligation in terms of dollars as next to nothing. The local community raised and disbursed its own taxes at its pleasure. It meas- ured its Capital obligation consider- ably beyond the limits of its meager taxable resources and twice became practically bankrupt in performing almost unaided the nation’s task of Capital building. In 1878 the nation confessed its vio- lation or gross neglect of its Capital obligation. It gave practical expres- sion to its revived sense of this obli- gation in its undertaking to pay one- half the accumulated funded indebt- edness of the District and one-half of future expenses. It took from the District the power of self-taxation and assumed completely exercise of the right to fix the local contribution as well as its own. In thus exercls- ing the power of taxation without representation, the mnation nafe- guarded the national community by the pledge that to every dollar collect- ed in taxes (rom the local taxpayers ' should be added a doliar from the national Treasury, and that the ag- gregate revenue should be expended for Capital upbuilding. This provision protected the District from excessive taxation by causing a taxgatherer, allen to the unrepresented District, to appropriate from his own treasury for the District’s benefit every time: all the assets and revenues of the| the nation wi | 1 he appropriated from the District's tax revenue. Every dollar he took under the tax power from the locallhands of the natlonal joint contrib- (Continued on Page 2, Column 4.) community increased correspondingly | his own Capital contribution. The law of 1922 retains the princi- ple of definite related Capital contri- butions, in which the law of 1878 was | rooted. That the ratio of this reja- tion wag changed from 50-50 to 60-40 | did not alter the basic principle in volved. The pending proposition destroys all relation between the natfonal and local “contributions, and, leaving taxing power in the hands of the Inited States, deprives the unrepre- nented Capital of its safeguard against excessive taxation by a taxing body tn which it ix not represented. Suggests False Relation to Nation. The proposed leglislation inflicts other practical injuries. It obtrudes annually upon the attention of Con- gress the suggestion of a large cash donation to the Capital, as if the pri- mary obligation of national city up- building were upon the local taxpay- ers, and the nation were only an in- cidental contributor, a voluntary and benevolent donor. 'Since the nation, in 1878 recognized and’ assumed its National Capital power 'and obliga- tion, its responsibility in respect to the Capital has been primary and dominating. As late as 1916 this re- lation of nation to Capital was fully recognized and clearly set forth in the report of the joint select committee of Congress, which made the most thorough, exhaustive and able study of the fiscal relations of nation and Capital that statesmen had given to the subject since 1874-8. As long as national anl local joint contributors toward Capital upbuilding are in the (Continued on F fumn 5. utor, and as long as all declsions | concerning the amounts to be paid hy the joint contributors, respectively, and ‘concerning the expenditure of the joint revenues are to be made by the “national contributor the latter must in equity, and will in fact, bear the primary responsibility of Capital upbuilding, and the local taxpayers will be recognized in their true rela- ion as merely incidental contributors of tax money, not fixed in amount by themselves, but acted at the pleas- ure of the other joint contributor. Threatens Harm to Surplus Equities. | Another practical effect of destroy- ing the 60-40 ratio will be to reduce to a minimum nny chance of equita- ble proportionate contribution by t United States when our accm lated comes to be expended. ropriations. Whenever it it would be equitable to spend it under the half-and-half law, the United States duplicating it. If when the surplus comes to be used the proportionate contributions are on the 60-40 ratio, the natioh through Congreas will either apply, as equity meems to demand, the 50-50 ratio, or will make the existing 60-40 ratlo retroactive and add to the District surplus only 40 per cent from t mational Treasury. But if both the 50-50 and the 60-40 ratios are de- atroyed, and when the surplus comes to be expended there is no definite proportionate contribution by d taxpaying Ci under any percenta, enlarge the surplus fu bullding of the Capital. TWO CENTS DECLARES FORBES AGCEPTED BIG LOAN FROM FIRM BIDDING ON U, 3. HOSPITAL Agent of Company Says $5,000 Given to Former Head of Veterans’ Bureau, Who Promised Contract. DRINKING PARTIES COST HEAVILY, WITNESS HOLDS Money Never Repaid, Nor Was Note Given for It, Senate Prob- ers Told—Director Accepted Fa- vors, Assuring Return in Form of Work. 1 i | Principals of the Thompson-Black Company loaned $5,000 to Charles R | Forbes, while he was directo of the Veterans' Bureau, at a time when the company was seeking a contract for the construction of a government hospital Ellas H. Mortimer of Philadelphia, o former agent of the compa testified today at the Senate investigglion of the Veterans' Bureau. Mr. Mortimer said it was near end of long ncgotiations for the con- tract that Mr. Forbes told him at a { hotel in this city that Mrs. had gone abroad and that he was very hard {up and desired a ioan. The witness said Forbes fixed the sum at $5,000, and he arranged with James W. Black and J. W. Thompson, who then were at the hotel, to advance the money. Mortimer also told the commi t the negotiations for the co with Forbes were marked by a ber of “drinking” parties in Was {ton, Atlantic City, Philadelphla and {New York. He declared the former | s Ve director was a frequent dinner gu at apartments here, and es of a four- ntic City, and also expenses of two parties at the z-Carlton in Philadelphia. Says Forbes Promised Ald. his hotel that he paid the expe: day party at Atla t During_this time—from Febrt 1922, to June, 1922—he continued, Mr. Forbes had ' conferences with Mr Black and Mr. Thompson concerning contracts, and had promised that their {firm would be taken care of in the {letting of contracts over wh he aimed he had absolute authori Officials of the company also were i given a confidential list of the sites { where it was proposed to erect hos- | pitals, Mortimer further testified, and ter an inspection they decided they | would want to build the proposed | plant at Northampton, Mass, and so i | | informed Mr. Forbes. The 'director then, according to the witness, sup- plied them with plans and specifica- tions in advance of the general d tribution of this information to con | tractors. Mortimer said this n; jurally gave his firm a tremend advantage. Says Loan Never Paid. Questioned by members of the comi~ mittee Mortimer said Forbes never had given him any record to show for the indebtedness, nor had he ever paid the loan. He added that’he had advanced money to Forbe oth es, but did not give the amoun Mortimer testified that he obtained an advance of $10,000 just before he paid the money over, with a view using the second $5,000 to pay to the penses of a trip he took with Mr Forbes to the Pacific coast. He serted that he did pay Forbes e which was paid by the gove Mortimer said he persc 3 ceived an advance from his company delivered the $5,000 to in Chicago, and thanked him for | of $10,000. note for the inued, “but "I asked him for a mount,” the witness con he just laughed.’ Charges Heavy Drinking. The cost of the Pacific coast tri made by Forbes for the purpose of |inspecting government hospital sites, was estimated by Mortimer at $5,400. He sald there were a number of “parties” on the coast, and that “the drinking” started within an hour after the Forbes party reached the Fairmont Hotel at San Francisco. Forbes, he testified, had “a couple of dozen bottles of wines sent up to the hotel from Livermore, but little of the wine was touched there and we took it in automobiles to Stoc Was ton.” He added that Scotch {plentiful, and that this was the drink {largely consumed At Stockton, he continued, a part was arraigned for “Rough and R Island” and it finally wound up at ady home of a woman friend of M Forbes at Stockton. whose name was withheld from the record. The wit- | ness safd the home referred to had s {bar in it “as long as this room.” John F. O'Ryan, general counsel for the committee, in response to in- quirtes from members, told the com- | mittee he was presenting this phase of the matter because it showed tha high officials of the bureau, at a ti when the need for hospital faciliti for caring for former ce me was_most pressing, pending much of their time on “parties.’ Gen. O'Ryan then introduced a copy of a letter which he said Mr. Forbe: had written to his woman friend Stockton wnder date of Jul saying: From Stockton to Washington, some 3,000 miles intervene, but I be lieve I could astonish you if I wer to record in this letter the vizualiza- tion of that never-to-be-forgotten room in your home, the name of which is 2 word obsolescent if not obsolete. I think I remember not onl: the detalls of construction and the beauty of the whole effect, but the heat of Washington conjurés up be- fore me as in a mirage ihe innumer- able things that greeted one's and excited the palate of the thirsty {1 I could but materialize these thing: 1 assure you that Washington, in its bravest of torrid days, would offer me no apprehension of discomfort.” Continuing his testimony, Mortimer sald that on the Pacific coast they ‘ met C. D. Hurley of the Hurley-Ma- son Company of Tacoma, of which company the witness said Forbes had told him he was a vice president & the time he became director of th bureau. Mortimer said the Hurley Mason Company was interested i obtaining contracts for the bureau hospitals and that Mr. Hurley told him he wanted to take the contract for the hospital at American Lak Wash., in his own name and to go with Mr. Black on’ the contract for the Livermore Hospital. The witness told of a_secret code (Continued on Page 2, Column 32.) a