Evening Star Newspaper, March 21, 1924, Page 1

WEATHER. Snow this afternoon and probably tonight; tomorrow partly change in temperature. ‘Temperatuge for 24 hours ended at 2 p.m. today: Highest, 46, yesterda; night. 1l report on page Late N. Y. Stocks and Bonds, Page 28 Entered as secol 29,179, owest, 32, at 11:30 p.m. last post office Washington, cloudy: mno at 2:30 p.m. 7. nd-class matter D. .C. . No. - §200000 WAS PAI FOR WITHDRAWALS OF LIQUOR, ASSERTS HEAD OF DRUG FIRM Daugherty Committee Is Told Money Was Split Six Ways. Says Smith Got Part of New York Fund. . $15 CASE WAS PAYMENT FOR FEDERAL PERMITS Assistant U. S. Attorney Also Ac- cused as Sharing in Fungp—Tele- grams to Miss Stinson Read 1nto Record—More $I,000 Bills Men- tioned at Hearing. Unfolding a new maze of startling charges having to do with illicit withdrawals of whisky in 1921, and which involved payments aggregat- ing $200,000, John Goroni, president of the Alps Drug Company of New York, today told the Daugherty in- vestigating committee that the money was “split” six ways. In brief, this was Goroni's story< Way Money Was Split. Fifteen dollars a case was paid for permits to withdraw the whisky. The fifteen dollars, Goroni said, was “split” this way: Four dollars a case to the pro- hibition director. (In 1921.) Two dollars a case to Howard H. Mannington, one of Attorney Gen- eral Daugherty’s friends, who had an office in the “little green house on K street.- One dollar to the druggist in whose name the whisky was withdrawn. One dollar to himself (Gorini). Fifty cents to Assistant United States Attorney L'Esperance at New York. § Says Smith Got Part. Six dollars and a half to Will A. Orr and Owen Murphy. Manningtopn had to split his $2 three ways, Gorini said Orr told him, and that some of it went to the late Jess W. Smith, Attorney General Daugherty's “bumper and friend.” The detailed part of Goroni's story did not come until after he had left the witness chair, after a three-hour examination, and had stop- ped to talk with. Gaston B. Means, one 6f the former star wittieses of-the investigation. Returping to the withess chair, Goroni said Means Had reminded him he had not told how the money was split. He hadn't told it before, Go- roni told the committee, because he hadn’t been asked, Broker Is Witness. Previous to Goroni's appearance on the stand Willlam R. A, Hays, man- ager of the Columbus branch of Sam- uel Ungerleider & Company, was called and examined regarding Miss Stinson's previous testimony of “blind” “accounts of William Hays, Nos. 2 and 3. He' testified that on Jess Smith's death the money was turned over to Mal Daugherty as executor of Smith’s estate, thereby lasing its character as Miss Stinson’s money. Goront, who identified himself as pres- ident of the Alps Drug Company of New York, was called after Hays had com- pleted his testimony. b ver had dealings with W. A. es—a liquor transaction along in ow 'did_you happen to have this transaction?” Wheeler asked. “Orr knew I had a permit to do business in liquor and he sent Paul Lundy to me.” Tells of Theatrical Man. “Who is Lundy?” “A theatrical agent—he told me if | J wanted to do business I should see ! Bill Orr” The date was May, 1921, the witness | said, the place was New York city. | “Did Orr tell you you would have to do business with him?” “Yes, the prohibition director turn- ed down my application for 500 cases. Orr said he could fix it for me with his_partner, Owen B. Murphy.” “Did Crr ‘tell you anything?”’ “He said he had influence in Wash- | ington with Mannington and Jess| Smith, and I would be protected.” | “He did not meet Daugherty,” Goroni | put in. “I met Jess Smith at the Astor Hotel with Bill Orr,” Goroni went on. “He was just introduced to me.” He was told, Goroni went on, by Orr, that' “Smith was a friend of the Attorney General."” “Did they tell you Smith was the man who could fix them?"” ““They said he could help a lot. How- ard Mannington, Orr said, was getting . 32 a case for every case that went through.” In “Columbus Crowd.” “Who did they say Howard Manning- ton was?' asked Senator Wheeler. “They said he belonged to the crowd from Columbus." L “Well, you were willing to work | with them?”_Senator Jones, repub- | lican, Washington, put in. | “I 'wish I had broken my arm be- { fore 1 signed up with them,” Goreal | responded. Well, you were denfed liguor the day before?” asked Senator Wheeler. “Yes, by Hart, the prohibition di- recto “You were indicted, wvicted > “Yes.". Goroni said he came to Washing- ton when 7,000 cases of Scotch were seized. “Who did_you see?” “Thomas Felder.” “Where did he go?” but ‘not con- R.A.| i unit headquarters. 'ASKS TWO-YEAR TERM | FOR GEN. LUDENDORFF| Prosecutor Proposes Eight-Year Sentence for Hitler, as Tri"1 Nears Conclusion. i By the Associated Press. MUNICH, March 21.—The trial of Gen. Ludendorff, Adolph Hitler and their codefendants, charged with treason for their part in the “putsch® of last November, neared a conclus sion toda; Prosecutor Stenglein, addressing the court, demanded eight years' im- prisonment for Hitler, two vears for en. Ludendorff and from one year to six years for the other defendants. The prosecutor recommended that | th prisoners serve their terms in| what is known as “fortress confine- | oot as usual for political offend- r, under which prisoners have a considerable degree of freedom. PLOT TO BILK U. S, OF §1.000000NIPPED internal Revenue Auditor and | Friend Trapped—Sentenced to 21 Months. Details of a plot to bilk the United | States of $1,000,000 in taxes and glimpses of the strategy used in frus- trating the plot came to light today following sentence of twenty-one months each imposed on Earl G. Richmeler of Madison, Wis., and Garnett Underwood, @ local insurance agent, by Justice Hitz in Criminal Court 1 today. 1 Ving conspiracy to defraua the govern- | ment. Secrecy surrounding the case hereto- fore was lifted today at the headquarters of the special intelligence unit of the bureau of internal revenue, where the details were obtained. The case dates back to August,| 1921, when Rickmeler was an au-| ditor in the income tax unit of the jinternal revenue bureau. In going jover returns of four taxpayers he found they had purchased undevel- oped oil lands, which had later been developed at vast profits. $1,000,000 Due United Staten. , He discovered that the taxpayers owed the government approximately | $1,000,000 more than they had paid. | He got into communication with his friend Underwood. Underwood, in {turn, got in touch with the taxpayers. He told them he had a friend In the income tax unit with whom he could fix things up so that they'd' never have to pay that extra million. At this juncture the taxpayers threw a monkey wrench into the works by informing the.jnternal-rev- enue bureau ot the proposition. Kl mer Irey's special intelligence unit was placed on the case. In September, 1921, all traps had ‘been set. A special agent, posing as an attorney for the taxpayers, had conferences with Underwood. At the {final conference in a local hotel, he i agreed topay $160,000 for all records in possession of the government { showing the money owed in taxes by his “clients.” Caught in Trap. This proposition was agreed to and Underwood undertook to deliver all evidence in possession of the gov- ernment in the shape of papers and records to this “attorney” for the tax- payers. With the papers on his per- son at the hotel, he was arrested by special agent, just as the deal was about to be consummated. The “attor- ney” also was arrested as a blind. Later Rickmeier was taken into custody. Indictment followed the arrests. Congestion in the courts resulted in delays before the arraignment on the indictment. Finally, on last January 18, the two men appeared and pleaded guilty. The case was referred to the probation officer for investigation and report. This morning the two men were called up and sentenced to twenty-one months' imprisonment each. Names of the taxpayers were not made public at the special intelligence German to Lecture Here. KOENIGSBERG, Prussia, March 21. —Dr. Herberr Kraus, teacher of pub- lic_law in Koenigsberg University, will lecture next summer at the Uni- versity of Chicago. l Long,” Mutters Wande: Special Dispatch to The Star. DANVILLE, IIl, March 21— The residence of “Uncle Joe” Cannon to- day bears those cabalistic chalked hieroglyphics of the road that spell out to the great brotherhood of the unwashed—"Regular folks here; don't pass it u It was put there by one of the famous ex-congressman's latest guests. “Uncle Joe" Wwas pottering around the house with the inevitable cigar in his mouth when there came a ring at the bell. Being the nearest person to the door, “Uncle Joe” opened it. The man on the threshold, haggard, unkempt and shivering, started the usual “line” about a_handout for a poor, hungry man. “Uncle Joe" took one look at the'figure with its torn clothes, at the coat collar turned up “He told me to.go home—it would be all right—he would get the liquor sooner or later.” Goroni made several more trips after the seizure. “Did you pay money to Orr?" “Once—$50,000.” “How did’you pay it?" Collected for Others. “I collected for him from another party—it was in fifty one-thousand-dol- lar bills.” A4 “Where did you get {t?” “From John Lynn.” +#Who was he?” “He was In liquor—he hanged him- ® i hat a1d yo get the $50.000 fort™ (Continued on Page 4, Column 1.) out & hairy neck, and swung wide ::0 door. “Come in,” he urged. Hospitality Amases Hobo. ‘The hobo's ;lyal 'ld:gne ‘with u; hment. e - seem 0 suspeéc :‘;fi: trick, but ‘“Uncle Joes" smile reassured him and he shuffled slowly into the big house. “Uncle Joe” ushered him into the 1ibrary—the same room'where he has recelved hundreds of notables .come to pay their respects—and seated him in a big chalr. . He pressed one of the Cannon cigars on the visitor, cocked his own feet on the library table and be; o chat easily, amiaply. xflflf by-little the visitor recovered 2 % e Fyening WASHINGTON, D. C, FRIDAY, MARCH 21, 1924 —-FORTY-FOUR PAGES. SINCLAIR COUNSEL WAGES HOT BATTLE 10 BLOCK PROBERS Challenges Committee’s Right to Grill Holder of Teapot Lease. COMMITTEE ADJOURNS; TO RESUME TOMORROW | Matter Expected to Be Settled Soon—Inquiry Move Called “Monstrous.” ~ Counsel for Harry F. Sinclair waged an inconclusive two-hour legal bat- tle with the oil committee today N an effort to have their client ex- cused from further questioning. Challenging the committee’s au- thority to proceed with the inquiry after the validity of the leases al- | ready had been passed upon in a \resolution of Congress, and contend- ing that in “falrness and justice” ! Sinclair should not be compelled to | testify while charges fraud are pending against him the courts, Martin W. Littleton of the Sinclair counsel told committee members that their course was a “monstrous prop- osition” and an “outrage.’ ‘Walskh Disagrees. Walsh, the committee did not agree with the Senator prosecutor, it over and adjournment was taken | without a decision. The argument will be resumed tomorrow, probably in open session. While today's discussion was Teapot point of the oil inquiry committee tablé, apparently confi- dent that in the end he would be excused from testifying. His counsel did not predivi what other legal privileg®s might be invoked later in his behalf, but iittleton repeatedly accused the committee of attempting to drive him into a position whers he would have to-assume the *‘odium’ of refusing to answer, like Albert B. Fall, off the ground that it might in- criminate him. Sees Influences at Work. Soon after the committee adjourned one of its members, Senator Dill, democrat, Washington, started a de- bate on the Senate floor, in which he declared Littleton’s appearance in the Dome was the starting case demonstrated that powerful in- | fluences were at work to stop further investigation. Recalling that Littleton had que: tioned the authority of congreasional committees to summon witnesses be- fore them, Senator Dill sald “that the Ereat eastern Dewspapers all - to find thls inquiry nauseating on the very day we exposed the tele- grams from the White House to McLeari—the man who confessed he lied to the committee. -~ “It was extremely significant” Sen- ator Dill said, “that this move should be made just when we were about to question Mr. Sinclair and Mr. Hays (Will H. Hays) regarding the report- ed fund of 75,000 shares of oil si to pay campaign debts.” Sfiys Change Sudden. “They & “untll we began to get close to big republican ofticials. Until then, with comparitively small culprits involved, they were content; now we find_the most brilliant member of the New York bar retained to head off the committee.” Senator Reed, democrat, Missouri, suggested that “the sickening effect” was heightened by “the fact that the Department of Justice 1 alyzd and actually is used to to pro- par- tect some of the culprits; that the | Chief Executive has failed to put some one at the head of the bureau | who would put its machinery 'in mo- | tion.” Heflin Scores Preas. Declaring an effort was being made by certain “portions of the press” to discredit the Senate, Senator Hedin, democrat, Alabama, said he felt “com- plimented when one of these pusil- lanimous sheets attacks me. They do not attack anybody unless he is on the firing line, fighting in the inter- est of his country.” He added, “Thess interests are not going to intimidate the Senate. ‘They may have the Speaker of the House go up to Massachusetts and talk about how the Senate has low- ered its standards and remind them of the old days when the Senate used to discuss constitutional questions. (Continued on Page 5, Column “Uncle Joe’s” Hospitality Inspires . Hobo to Ejaculate “He’s a Regular” “Taint No Wonder That Guy Was in Congress So rer, Who Was Royally Entertained by Noted Political Sage. & part of his composure, but it was a long time before he even approached that state of being “at home” which his host urged upon him. Even after “Uncle Joe” had turned on his radio set after ordering a spe- cial luncheon prepared, the visitor couldn’t seem to get the idea that all this was being done for him—for a ragged, dirty knight of the road. This big library seemed to get the better of him. "And surrounded as he was by mementoes of “Uncle Joe's” long career in Congress, .with - por. traits of Henry t e, Wil liam Howard Taft, Warre Hard- ing, Willlam McKTnley, and other notables, the “bo” ‘could hardly be blamed for his embarrassment. He turned out to be & poor con- versationalist, but he was a Jood | listener, and “Uncle Joe” entertained him for an hour or more with femi- niscences and comment on - topies | which he thought most likely to in- terest his caller. Inspired Hobo Departs. Finally, replete with food, and with evident Teluctance to leave such a swell joint, the “bo” ' stepped forth again to the road. But it was a dif- forent looking tramp who headed for the outskirts of Danville and the open highway. He stepped down the broad stairs with a firm, steady tread. Hi; head was a little higher and he didn't shuffle so dejectedly. ' 1n Gbln’t any wonder that guy was in_Congress so long” he muttere “He's & regular if there ever was one: They don't make ‘em that way any more.” IS S in | | progress the ofl operator whose lease of | sat at the . dn’t think 50,” he continued, [ {Reduces Massachusetts Ave- | nue Structures From 90 ‘to 60 Feet in Ruling.” The Zoning Commission today or- | dered the height limit for butldings | Peduced from ninety to sixty feet on | Massachusetts avenue, between Du- ! pont and Sheridan circles, in response to the plea of residents of that ave- nue made at the public hearing yes- terday. The commission also granted, in part, the petition of a dozen citizens' i associations to have so-called “com- | munity houses” prohibited in subur- | ban neighborhoods, where detached | homes are built ! A “community house” is described | as three houses built to give the ap- | pearance of one. The citizens asso- ciations wanted them barred from all detached-home areas, but the com- mission applied the ban only to those ! detached areas known as A restric- | ed” where apartment houses are pro- H ‘The I"! Herbert hibited. of the_citizens, son of Manor mi‘"‘-:‘- that community houses mar the appear- ! apce of detached neighborhoods and re- duce values. e commission changed the buildi at'the southeast corner of 16th and U streets nortawest from first commercial | to residential, making that thoroughfare | completely residential. The property is | now used for commercial purposes, and ! the action of.the commission will not interfere with such use. It will, how- ever, prevent any structural alterations in the building. | "An amendment to the zoning regula- tions was adopted requiring the consent of 75 per cent of the property owners within a radius of 200 feet ‘before a | fraternity house can be established in a | residential section. The following properties were changed from residential to first | commercial: The southwest corner of South Cap- itol and N streets, property from 1111 to 4121 V street northwest and a corner at Bates and Rock Creek Church roa Discuss Sherrill Plan. The members of the Zoning Com- mission discussed informally the suggestion made yesterday by Col. C. O. Sherrill that the zoning law be amended by Congress to give the commission power to pass on the de- sign and appearance of buildings as well as to regulate their height, area and use. The commiswion, however, did not decide on taking any defi- nite action at this time. Maj. Raymond Wheeler, executive officer to the commission, pointed out today that the system advocated by Col. Sherrill is already in effect in an unofficial way. The architects of the city, Maj. Wheeler said, some time ago formed an advisory council, to which are sub- mitted the plans for all large struc- tures, just as the Fine Arts Commis- ion passes on federal building de- signs. Maj. Wheeler estimated that in 90 per cent of the cases the builders have complied with the suggestion made by this council for improving the appearance of the structures. In most of the other cases, the major said, the operations had gone forward to sych a point that changes could not k made without heavy expense. Col. Sherrill's contention at the hearing yesterday was that the beauty of Washington is being-narred {because the zoning commission has no suthority to pass upon the attrac- tiveness of buildings. LETTERS OF DEAD WOMAN BRING ARREST Man Arrested for Manslanghter in Death Last Month—May Exhume Body. Special Dispatch to The Star. CUMBERLAND, Md., March 21— Charlés B. Wiegand is being held in 3ail here on a charge of manslaughter in connection with the death of Miss Elizabeth> Bennett,” daushter of Mrs. Margaret Bennett, February 3. The ‘woman, who was twenty-elght years old, wals a student at & local business A letter found in her clothing, which had not been mailed, was addressed to “Sweetle,” and from its contents and that of another letter found in the pocket of a_coat she had sold a girl friend, led to taking action against Wiegand, who was arrested at Martini ., W. Va., his home. He had been working for the Baltimore and Ohio here. P |SOVIET SENTENCES !ZflNINGB[]I]YGUTS ook gy B Patriarch and Six Priests to Be Im- prisoned on Counter-Revolu- . tion Charges. By the Associated Press, TIFLIS, March 21.—Convicted on charges of courter revelatien against |- the sovies government, Patriarch Ambrosia, head of the Orthedox Church of Georgia and Armenia, was today sentenced to nine years' im- prisonment. Six members of his council were given terms varying from one to five years. The priests were accused of appeal- ing to the Genoa conference for Georgian independence, demanding the evacuation of the red army. They were also charged with intertering with the soviet requisition of church treasures. SPRING MAKES BOW INWINTER ATTIRE Most Severe March Storm Since 1914—No Harbinger of Late Season. Donning her finest winter furs, gentle spring made her presence known to Washington and most of the east today with all the tempestuous bravado of a twentieth century flapper. A brief golden smile upon her formal introduction late yesterday afternoon, a fleeting hour of temperate zephyrs— and little Miss Springtme began to get acqua:nted with all the modern gusto of a bob-haired sub-deb. Casting aside precedent, she" envel oped Washington and most of the east- ern states as far west as Iowa and Missouri in the most severe late March snowstorm since 1914, and one of the worst in the history of the weather bureau. Up to moon the precipitation in water was equivalent to fifteen inches of dry snow, official observations showed, More Spectacular Than Harmful. Spring’s inaugural caprices, how- ever, were more spectacular than harmful. Washington's streets were turned into veritable small rivers and lakes, traffic moved slowly and hun- dreds’ of workers were late reaching their offices. But comparatively little damage was done to lines of communication of the telephone and telegraph companies. Reports from suburban and rural sections related a severe snow fall, out it was said no damage had been done. The snow was 50 soft and rain. soaked, motorists and commuters de- clared,” that the roads probably will be virtually cleared before night un- less a further fall sets in. Similar conditions prevailed in Washington. No Harbinger of Late Spring. Continued snow and rain through today and tonight is the prediction for “Washington and its vicinity. There will be no change in the tem perature, however, and serious inter- ruption to traffic is not expected from clogged streets. The thermometer remained well above freezing last night, and the official forecaster said the present storm is no harbinger of a delayed spring. The storm originated over Tennes- see, and, like the gevere blizzard of ten days ago, began sweeping over the country in a north by northeast direction. ' It fell upon all states south of Richmond in the form of a heavy rain, but, meeting colder lay- ers of air as it moved northward, turned to sodden snow in passing over Virginia. Central Over Virginia Capes. At noon today it was central over the Virginia capes and continuing northward with undiminished inten- sity. Ohlo, Indiana, Illinols, eastern Towa and Missouri were the border tates of the storm. Although only ven or eight inches of snow were actually measured, observers at the weather bureau said much of it melt- ed immediately upon touching the ground and that the actual fall was (Continued on Page 2, Column 4.) BEGIN LIBRARY -BRANCH. Ground will be broken at 10 o'clock Monday. rhorning preparatory to the construction of the Mount Pleasant branch of the Public Library at 16th and. Lamont streets. Plans are being made for the pres- ence of Commissioners Rudolph and Oyster at the ceremony, which will be in charge of Dr. George F. Bower- man, librarian of the Public Library. It is expected that short addresses will be made by Theodore W. Noy: and others. Members of the Columbi Heights ind Mount Pleasant Citizens’ Associal tions will attend. D.C. TOASK MORE RECIPROGITY TIME Expiration of Auto Agreement -in Ten Days, With Bill Still Pending. With only ten more days of March remaining, the Commissioners today decided to ask Gov. Ritchie of Mary- land for another extension of tem- porary automobile reciprocity. Daniel E. Garges, secretary to the board, was directed to communicate | immediately with pointing out that the measure on the governor, gasoline tax in Congress. The original temporary agreement expired March 1, at which time the city heads appealed to the governor | for an extension in order to give gfi?srell further time to act on the Need More Time for Bill. made on Capitol Hill the Commis- sioners felt that they should not al- low the temporary agreement to ex- pire March 31 without asking Mary- land to continue the understanding until it is definitely known what the Senate and House will do. It was pointed out that if the agreement is allowed to die on April 1 and Congress should later enact a bill for permanent reciprocity many persons living in both jurisdictions might be put to the expense of buy- ing tags only to have permanent reciprocity later adopted. SEEK SLAINMAN'S WIFE AND BROTHER Bpecial Dispatch to The Star. HAGERSTOWN, Md., March 21.—A Pposse of mountaineers, led by state constabulary, today is searching the mountains near Beartown in a blind- ing snowstorm for Mrs. Jacob Shockey, thirty, and Samuel Shockey, twenty-six, who are wanted as sus- Dpects In the murder of Jacob Shockey, thirty-two, world war veteran, hus- band of the woman and brother bf Samuel. e The body of Jacob was found last night concealed under leaves near the Shockey home, - with = bullet wound through the back.. Earlier in the afternoon he had told friends of tamily trouble and had made the re- mark that he believed that his wife loved some one other than himself. Immediately upon the discovery of the body it was learned that Mrs. Shockey and Samuel Shockey had fled into the mountains, whetre they now face death from exposure and priva- tion if the present storm continues. Beartown is near Bucna Vista, the well known summer resort. VOLUNTEER TO CARRY ON HOSPITAL DRIVE Ending the final day of the Emergency Hospital campaign for $500,000 with only $281,644 subscribed, a committee on ways and means of 100 was appointed to unofficially continue the drive until the full total is reached. This announce- ment was made at the final rally lunch- eon of the 600 workers .n the New ‘Willard today. The team workers and executive com- mittee voted to create a memorial of an infirmary in the new nurses’ home. Announcement was also made of the donation of a surgical room. A small office will be kept open by the mem. bers of the ways and means commit- tee, who will continue to solicit pros- pects in an effort to raise the full amount, it was announced. Team 24 Best Today. The winning team of the day was team 24 of the men's section, under the captaincy of Thomas E. Jarrell, who reported a total of $3,200. the women's division Mrs. Albert Baggs, captain of team 31, led the day with a total of $2,252. The total return for the day reported was $24,877. Public tribute to ‘the press for its support of the campaign was voiced by Col Clifford, former assistant sec- retary of the Treasury and chairman of the campalign. which permanent recl- | procity is to be based is still pending | $6me_headway has been | “From P ress to Home Within the Hour” _The Star's carricr system covers every city, block and the regular edition is delivered to as the papers Washington homes as fast are printed. Yesterday’s Circulation, 102,571 * BELIEVE DEMENTED DOCTOR HOLDS MAN Police Told Letter and Phone Mes- sage Referred to Contractor Missing Week. By the Associated Press. MIAMI, Fla.,, March 21.—Belief that Arthur Burdell, Brooklyn contractor, who disappeared from here a week ago, is being detained by a demented physiclan is expressed by the police. An anonymous letter was received yes y by Mrs. B. J./Gardiner, a friend, telling her that Burdell would be returned “if sne appealed to the grand cyclops in Atlanta.” Monday Mrs. Burdell was tele- phoned by a man who gave his name as “Dr. Van Hausen, who told her that he had just given Burdell “a shot of dope” and that he was taking him to Atlanta.” No further word of Burdell has been received. MCARL “GUNNING | FOR 24420 OWING SO ATOLS, Systematic _Effort Being! Made to Recover: Overpay- ments or Short Collections. BY FREDERIC WILLIAM WILE. J. R. McCarl, controller general of the United States, has gone gunning for | 24,420 persons reported to owe the | United States a total of $140,547,479. His activities in that direction repre- sent an entirely new departure in gov- ernment financial operations. A special | { collection unit has been established in | the general accounting office in the| Treasury Department, and is now sys- tematically engaged in an effort to make | { each and all of these alleged delinquents | | pay up. Except in isolated cases, such as| formal legal proceedings to recover | overpayments, practically no attempt | bas ever been made to bring in the vast sums to which Uncle Sam is entitled. Authorities assert that if all the money due the United States on account of overpayments jcould be retrieved and deposited in | {the Treasury there would be no ques- tion of deficiency on account of pending proposals for reduction in {income taxes. There would even be |enough, it is declared, to finance the soldiers’ bonus without a dollar of new revenue. Names of All Debtors. Controller General McCarl's impos- lllt index contains the names of all debtors of recorc in the general ac- counting office. The record includes overpayments by disbursing officers and “shert collections” by collecting officers, as well as occasional over- payments through settlements by the controller general himself. Although the 24,420 names of ap- parent debtors now card indexed are ticketed as owing $140,847,479.29, that does not mean that the full amount will be recovered, or even that the reported indebtedness repre- sents a just demand of the United States. There will be many instances of bankruptcy and other grounds of non-recovery. In other cases there may arise questions of law or fact, which, when finally determined, will be Gecided against the government. McCail's collection unit is not dig- ging into the dim and distant past. In fact, its operations only go back to the war period. The unit is pro- ceeding on the well settled law of set-off and counterclaim, a form of | adjusting accounts with which the public is familiar as between indi- viduals in common business practice. Insists on Settlements. ‘The McCarl theory is that the gov- ernment, no less than an individual, may insist upon the satisfaction of its claims against a person or a corpora- tion before it will satisfy the claim of a .person or a corporation against it Thus, if, for instance, the Bethle- hem Steel Company or the American ‘Woolen Company has a bill against the United States the and investigates whether there may not be some old transaction in. which {a particular claimant was overpaid. If anything like that is discovered, McCarl insists upon deducting #ay sum due the government before nay- ing a new account. It cannot be.expected that the ex- penditure of immense sums of ap- propriated and other momeys can be made without error. - While not con- clusive, the extent of error in dis- bursing accounts may be illustrated by the fact that one of the divisions of the general accounting office de- nied credit to the disbursing officers for expenditures made by them in the total sum of $10,582,859. _ Recoveries Last Year. In the same accounts, items ag- gregating a like amount were ques- tioned. During December, 1923, one division secured refunds amounting to $650,000, disallowed $515,000 and suspended other items aggregating $468,000. During the last fscal year the general accounting office’ recov- ered $7,977,888. Since July 1, 1923, $963,295 has been collected, of which about $300,000 represents’ overpay- ments to railroads. These collectiosn fairly illustrate what is being done by the controller | general's collection unit. Because of limited personnel and the scattered condition of the office, it has been im- possible to obtain accurate figures : 10 tothl recoveries. It appears to be safe to multiply amounts already re- covered by two and to estimate that possible recoveries eventually will in- crease the amount a hundredfold. One of the lucrative fields of. recov- ery is that of overpayment of rental allewance to naval officers. During the flve months ended March 1, 1924, 638 items were stopped, covering al- lowances amounting to $4,405,614, to offset reported Indebtedness amount- ing to $15,914,390. Officers are en- titled to allowances for rental of living premises for dependents, and the controller general's office has in- stituted-a pretty rigorous system of checking up on the legitimacy of such allowances. It is in connection with McCarl's procedure on this score among_other reasons, that he ha: | that TWO CENTS. COOLIDGE RENAMES 2 GOMMISSIONERS FOLLOWING PROBE Rudolph and .Oyster Nom- inated After Inquiry Into Activities in Office. MANY CUTS IN RATES OF UTILITIES ARE CITED Holland's Report Tells of Efforts to Reduce Charges and Work on Zoning Commission. Cuno H. Rudolph and James P Oyster, the two civilian Commission- ers of the District of Columbia, whose terms exvired more than a week ago, were reappointed by President Cool- idge today. Thei? nominations were sent to the Senate by the President following a study of “the report made to him by {Rush L. Hoiland, assistant attorney general, who was designated by Pre ident Coolidge to conduct a friendly inquiry into the activities of the Commissioners, with a special ref- erence to certain acts while serving as members of the Zoning and Pub- lic_Utilities Commissions. The report of Mr. Holland com- pletely vindicated the two Commis- sioners and assured the President that the charges made against the commis- sioners by protesting ment were trivial and not sufficien: substantiated by the evidence obtaine by Mr. Holland. Reappointment Delayed. The opposition to the reappoint ment of these two local officials foi- |lowed immediately the announcement on March 8 that President Coolidge had made up his mind to reappoint the incumbents and, because of the nature of the charges, the latter thought it best in the interests of the citizens of this city and for the general good of the local government . the nominations be held up pending an inquiry into the charges. The expiring terms of Commission- ers Rudoiph and Oyster covered threc busy years in the history of the Dis- tiict government. The increased bur- dens that have come to the office with the rapld growth and expansion of the city have been reflected in their activity Although the zoning law was en- acted prior to their appointments on March 14, 1921, that new task was still in its infancy and has called for constant and laborious work since. . Com: oners Brownlow and Kutz made the original zoning maps, but the job had to be done in the short space of three months after the law was passed. and naturally as time went on many necessary changes cropped up. Hold Many Hearings. The present zoning commission has had to hold public hearings every month in order to consider the appli- cations of property owners for changes {n the original zoning of their hold- The past three years also has been @ busy period for the Commissioners In their role as members of the Pub- tic Utilities Commission. During their term of office the rates of all the pubs lic service corporations have been re- duced. Col. Charles Keller was chair- man of the Utilities Commission for part of the time before Maj. Bell was appointed. They -had been in office but a few days in_the spring of 1921 when a series of public hearings on rates be- gan. Street car fare has been reduced twice, from 4 tokens for 30 cents or 8 cents cash to 6 tokens for 40 cents with § cents as the cash fare. This was a reduction in the token rate from 71 cents to 6 2-3 cents The price of gas has been reduced from $1.32 to $1. This cut was made gradually in four different inquiries. Other Rates Redueed. The rates of the Potomac Electric Power Company have been reduced several times in that period, but the public has not received immediate benefit, due to the litigation pending in the District Supreme Court over the disputed value of the power plant. At the suggestion of the telephone company, the rate for unlimited serv- ice was reduced more than a year ago from $5.50 to $5 a month. At the present time the Commis- sioners have before them one of the most difficult of all utility questions namely, to fix rules for the prope; handling of the depreciation accounts of the several companies. Commissioner Rudolph has directed the financial end of the local govern- ment, taking in the assessment of controller gen- (PToperty, collection of taxes, auditing eral's collection unit clears for action {Qf all municipal accounts, and, in ad- dition, has supervised the charitable and penal institutions. All existing laws relating to chari- tiés and public welfare work are now being gone over by a commission of citizens &ppointed by the Commis- sioners, assisted by William Hodson. gxpert ‘of the Russell Sage Founda- tion. Oyster Faces Trafic Problem. Commissioner Oyster has directed the activities of the police, fire, health and playground departments, a task that has kept him busy. In addition to supervising the rou- tine operations of these important services the Commissioner has had to pass upon many changes in the traffic_regulations to cope with the rapid increase in the number of vehi- cles, bringing with it the danger of {accident on the streets. Proparation for and tho successful handling of the Shriners convention last summer was probably the big- gost task the present Commissioners faced during their expiring terms. Commissioner Oyster _established one-way streets for the Shrine con- clave, and was so jmpressed with the experience then that he retained many of them. He also has endeavor- ed to improve parking conditions in the downtown section. Many Betterment Bills. A long list of legislative bills for the betterment of the city and its | physical improvement have been ad- vocated and supported by the present board. Notable in this respect has been the endeavor to carry out the long-standing plan for completing the park eystem of the National Capital. Although Commissioner Rudolph came to the District bullding in 1921 ! with the experience gained by his | previous term, which ended in’ 1813, | he found that during the elght years | intervening the municipal machinery of the city had grown by leaps and bounds. { Commissioner Oyster was a mem: {ber of the Rent Commission -when | appointed by the late President { Harding. And, while he had not { previously served ‘as Commissioner, he had always been active in civic affairs_through the Board of Trade and Chamber of Commerce, which gave him a elear insight into Wash- found himself at war with the Navy Department in recent times. ACopyright, 1924) il 's needs. He also has served as m“fr‘:l';u: and president of the board of education.