Evening Star Newspaper, May 9, 1924, Page 2

MORGAN: REFUSES TO DiSCUSS LOAN Declares, on Return From Europe, He Is Rot Ready to Talk About $100,000,000. MUST CONFER WITH OTHERS finucier and Wife Narrowly i Escape Injury on Boat. By the Amociated Press. {NEW YORK, May 9.—If J. P. Mor- ®an has entered into, definite nego- tlations concerning a loan of $100,- 0,000 by American bankers to Ger- any to heip rehabilitate that coun- try he is not ready to talk about it or give the outline of the deal to the Dublic. . The banker arrived vesterday on the Homeric after an absence of sev- efal months in Europe. Speaking of the proposed German 6an, Mr. Morgan sald: “Much as T would like to go-into this matter it is obvious that my usefulness hinges on silence at this time He was told Owen D. Young, one of the reparations commissioners, had said the loan might floated here. “That was very nice of Mr. Young. he said, “but 50 many issues are i volved, 50 many governmental phases would have to be discussed with bankers before such a loan was tal en_up, that 1 cannot discuss it now. He pointed out that the American government was neither officially nor if any way connected with the Ger- man loan proposal, but he indicated there were others besides associates of J. P. Morgan & Co. who would have to be consulted ‘“We are bankers, vou know, and as such reserve the right to consider a proposilion among ourselves before making its terms public,” Mr. Mor- zan continued. I must be fair to my business associates. 1 haven't discussed this loan with them. I must be discreet.” He admitted that, since the govern- ment was not to participate in float- ing the $100,000,000 bonds, J. P. Mor- gan & Co. was the one private firm in America most likely to dispose of such a huge issue. Asked how much iime might elapse before his firm would consider the terms of the loan plans and publicly announce whether it would undertake to float the $100.- 060,000 issue in America, he said bluntly, “I den't know.” Mr. Morgan corroborated reports from Paris that firm easily be advanced that country recently 10 halt the plunge of the franc on the | cxehange was loaned on condition that the French would undertake to float no mere government bond issues | than were already outstanding. Thought Matters Known. "1 thought that was a well known fact” he said. “It was quite under- stood at the time. He declared also that his arrival in Paris just as the Dawes report bécame publke and his ensuing con- ferences with Bradbury, the British, und Barthou, the French expert on the reparations commission was “purely circumstantial”; that ‘‘thev learned I was in Paris and asked that I confer with them, in a pro- fessional and individual capacity, about the financial provisions of the report.” The Morgans narrowly _escaped injury this morning as the Homeric hove to at quarantine to take aboard a pilot They were standing pear the rall, when a gangway bridge, weigh- ing several hundred pounds, was loosened from its moorings by the sudden tossing of the vessel and crashed at their feet. Mr, Morgan leaped clear, pulling his ‘wife to safety with him. LANGLEY DEFENSE IS BEGUN IN TRIAL Prosecution Ends Case—Represent- ative May Take Stand, Counsel Indicates. By the Associated Press. COVINGTON, Ky, May & —Ths United States government today closed its case against Representa- tive John W. Langley of Kentucky, on trial in federal court here with two codefendants on charges of con- spiracy to defraud the government of tax on whisky illegally removed frem a distillery. United States District Attorney Sawyer Smith announced the gov- ernment had concluded its evidence shortly after court convened today. Langley, with Milton Lipschutz and Albert F. Slater, both of Philadel- phia, are charged with illegal whisky transactions in 1921, and have been on trial since Tuesday. Two other men, indicted with them, yesterday |emtered pleas of guilty. CounselSIeaNS, Opens Cane. u; or Langley 1 ety dgmue‘s Y immediately hile it has not definitely been decided, Langley’s counsel say it is ,Pfobable that the representative will be placed on the stand. orney W. K. Gray, Philadelphi representing Lipschuts and Slates, filed a motion to take Slater's case from the jury on-the ground that only one witness had testified against the defendant and that the estimony offered was not s Ill:;l& 5 %‘:‘Q uch as to ‘ounsel Henry Davis, Washi D, C., filed a like motion on Benaté of Tangley, alleging Langley was indicted only for conspiracy and the charge had not been sustained. he jury was withdrawn while mo- Y udge AR Coeh udge . Cochran overrul both motions and also one fled io behalf of Lipschutz. /Judge Cochran announced, however, that he would permit only the gec. ond and third counts to be passed on by the jury. The second count charges conspiracy to sell and the third charges conspiracy to trans- pert. The first count charged con- spiracy to defraud the government. SENATE RENT PROBE DATA TURNED OVER TO U. S. PROSECUTOR (Continued from First Page.) the passing of the emergemcy which prompted the enactment of the Ball rent act. Attention of the court was ®lso directed to the statement con- tained In the recent decision of the United States Supreme Court in the «hastelton case, in which the court strongly intimated that if it were «eciding the question cf the present existence of an emergency it would be inclined to hold that the law had Yecome imoperative. Chapin Brown, counsel for the Rent Commission, declared the statement of the United States Supreme Court Sustice in his opinion, on which coun- &¢l relied, was “mere dictum,” as the «question of a present emergency was not involved in that case. He sub- anitted sworn answers by the mem- bers of the Rent Commission in which ihey assert that the housing short- sge still exists and in which they re- 16r to the recent action of the House ©of Representatives after an exhaus- tive investigation in passing an ex- tension of the act for an additional two years. The House vote is given &s 194 to 64 Mr. Brown also di- Tected the sttention of the court to afdavit of Atlee Pomerene, then = semater from Ohio, as to the in- by the Senate concerning a X emergency when the act was nL in 1922, the $100,000,000 his | Wants to Be Senator SPEAKER FREDERICK H. GILLETT. SPEAKER GILLETT TO RUN FOR SENATE st_Page.) cure additional they retain a substantial voting strength after this yvears election. In point of seniority the Hepublican ranking next to Mr. Gillett is Repre- sentative Cooper of Wisconsin, a member of the La Follette group, but it is doubtful whether a serious effort will bo made, because of his in- surgency, to place him in the Speak- er's chair. Ranking next to Mr. Cooper are Representative Greene of Massachu- setts, chairman of the merchant ma- rine committee, and Representative Butler of Pennsylvania, chairman of the naval committee, each of whom has served in_ fourteen consecutive Congresses. Speakership booms, in the event of a Republican majority |in the next Houss, already are de- veloping also for Representative Longworth of Ohio, the present Re- publican floor leader, and others. | Mr. Gillett announced his candidacy in the following statement: | “I have been urged for soms time |to permit the use of my name as & candidate for the senatorship. I felt, however, that Gov. Cox should re- | ceive the support of the party if he | desired the nomination, and refused | to become a candidate. While deeply | conscious of the high hemor which | has been accorded to me by the mem- | hership of the House, I believe that | there is a broad field for service in the Senate in sustaining the poll- |cies “of President Coolidge, and I | therefore announce my candidacy for the Senate.’ At the office of Representative Dal- | linger it was said that the decision of | Mr. Gillett to be a senatorial candi- date would in no way affect Mr. Dal- | linger in his announced intention of | contesting for the nomination. | COX NOT CANDIDATE. recognition should Definitely Announces He Will Not | Seek G.0. P. Nomination. BOSTON, Mass, May 9.—Gov. Chan- ning H. Cox in a statement yesterday definitely announced that he would not he a candidate for the Republican nomination for United States senator in place of William M. Butler, who withdrew from the contest after his selection by President Coolidge as Republican national chairman. 4 Louis C. Coolidge of Boston at present is the only candidate actually in the field for the Republican nomi- nation for United States senator. Rep- resentative Frederick W. Dallinger has announced that he will be & candidate if Gov. Cox does not seek the nomination. ~Other members of the Massachusetts delegation in Con- gress whose names have been men- tioned are Speaker Frederick H. Gil- lett and Representative John Jacob Rogers, Samuel E. Winslow and Louls A. Frothingham. ASK OIL SUIT DISMISSAL. LOS ANGELES, May 9.—Dismissal of the government’'s suit to cancel naval oil reserve leases granted to the Doheny interests in Kern County, Calif., was asked in an answer filed in federal court yesterday by attorneys for the Pan-American Petroleum Com- pany and the Pan-American Petroleum and Transport Company. Denying categorically all _allegations of - legality and conspiracy in connection with the leases, the anawer states that expenditures of approximately $10,000,- 600 have been made or provided for by the defendant companies in the con- Struction of refinery, storage and other facilities in_order to carry out their contract with the government, and points out that if these are annulled great depreciation would result. PIMLICO ENTRIES POR SATURDAY. [RST RACE—The Glenmore steeplechass; ras. $3,000; four-yoar-olds and up: claiming; Dintioap; two miles and a quarter. Parlays - Yotaare Foai Yox Fopull 24 *Eate 0'Day. Lollipop ... eni . E. Widener 1. ntry. urel Park StudJ. McE. Bowman eatry. . 5. Cosden entry. SECOND EACE—Two-year-sld maiden fillies; purse, $1,300; four and one-half furlongs. Dorotby Gilpin. . +Edward F. Whitne; iBamuel Ross and THIRD RACE—The Pikesville; $1,500; two-yoar-olds; four furlongs. Gedd 3 Earla Baby. Roivills Badusx Urbasna Ball Goe. Bother . T eivp atry. Orample . Jobn F. +W. T. Seipp and Samuel Ross entry. FOURTH RACE—Three-year-old: nd. purse, §1,300; claiming; six farloogs. THE _EVENING TAX ON CORPORATION EARNINGS IS SCORED Business Men Say Forced Dividends Will Uadermine Prosverity of Country. FOUGHT BY ADMINISTRATION Proponents Hold Measure Combats Tax Evasion. Disposing rapldly of pending amendments, the Semate ftoday brought the revemue bill up for final passage. Before the final vote, however, separate action was asked for on & mmmber of important amend- ment, which had been adopted in committee of the whole. BY DAVID CAWRENCE, The biggest fssue that has vet been raised in the taxation contro- versy in Congress—and one that may bring & veto from the President fast- er than anything else in the pending bill—is that provision adopted by the Senate which would force corpora- tions to distribute virtually all their earnings Business men who have studicd the provision are almost a unit in de- claring that not only would the pros- perity of the country be undermined if such a thing became law, but that | interest rates would be forced up- ward, and the business expansion of | the United States would be seriously impaired. A coalition of Democrats and in- surgent Republicans has forced the proposal into the Senate bill, and the administration will make a determin- ed fight in conference to have it eliminated. Bars Accumulating Funda. Reduced to its essence, the provi- sion means that big ocorporations, which have always retained a large portion of theeir earnings as & mar- gin of safety against fluctuating con-| ditions in the world of industry, would be compelled to pay out their ac- cumulated fuads in the form of divi- dends. Then, if they need money for expansion or for emergencies, they | would have to borrow. Undoubtedly they would be com- pelled to ask bankers to float large bond issues from time to time. This | means a commiesion to the lenders, together with interest rates that would compete with other investment offerings, and it is acknowledged that | some private businesses must pay more for their money in the open | market frequently than others, de- pending upon’ the character of the business and its appeal to the public | as @ safe investment. The cheapest | way to borrow money has been for corporations to accumulate a surplus and use their own funds for ex- pansion when needed. The proposed tax law would deprive them of that opportunity. Sees Taxables Escaping. The theory of the proponents of the measure is that a large sum of money annually escapes taxation becauss it is not distributed in the form of dividends. Senator Jones of New Mexico contends that for seven years, from 1916 to 1922, inclusive, the total incomes of corpora- tions upon which no surtax was paid amounted to $27,000,000,000. Only $18,- 000,000,000 out of & total of $45,000,- 000,000 earncd in that period was dis- tributed in dividends. Senator Smoot, however, does not think that is necessarily abnormal or done with an idea of escaping taxation, for | he cites figures from 1910 to 1816, be- fore the high surtaxes were in effect, the corporations averaged 53!z per cent of their profits in distributed ~dividends, while from 1917 to 1922 about 140 of the largest industrial corporations of the country averaged 65 per cent of their profits in dividends distributed Helds Innocent Suffer. He points out that a Treasury docu- ment shows that for all corporations during the year 1922 the distribution | of profits amoufited to an average of 85 per cent of earnings. On that ac- count, he declares, the industrial com- panies which would be penalized by the new law are the very ones who are innocent of the wrongs which the Senats is trying to correct. The provision already incorporated in the bill is a graduated tax. Thus, if 30 per cent of the earnings of a corporation are not disturbed there will be imposed & 5 per cent taX on the undistributed 30 per cent. This is entirely aside from the 9 per cent on all net income which is distrib- uted. The tax runs upward to & maximum of 40 per cent if the un- distributed income of a corporation is more than 58 per cent of what is known as “the surtax net income.” Fought by Tressury. The Treasury Department is vig- orously opposed to all this on the ground that the present revenuo law contains a sufficient safeguard against this form of tax evasion. The Seore- tary of the Treasury is impowered to impose a penalty whenever he dis- covers that corporations are holding in their possession more funds than they actually need for their business. This means that the burden of proof is always on the corporation, and the power of imposing a penalty is not mandatory but discretionary. BLOCEED BY BLOC. Tax Bill Threatened With Farm Relief Rider. Pressing toward a final vote on the revenue bill, the Senate today faced a_stumbling block in the plan of advocates of farm relief legislation to tack the McNary-Haugen bill to the measure as an amendment. Two attempts made during a ten- hour session yesterday to restrict de- bate on the bill today and agree to vote on it for passage at 5 o'clock were blocked by objections from both sides of the chamber. All of the committee amendments were disposed of vesterday with adoption of a gift tax. one of the two new taxes in the bill. That im- posed_on mah-jong sets, of 10 per cent, is the other. Amendment after amendment also was accepted yesterday as members of both parties put forward proposals, mostly aimed to clarify the language relating to exemptions and to liberal- ize the rules affecting’ collections of taxes and claims for refunds. In ad- dition, the Democrats, again sided by Republican insurgents, voted to open further the Treasury records to publicity of tax questions, putting in an amendment to make public all hearings of the proposed board of tax appeals. Coalition Kffects Changes. The three outstanding changes made in the bill by the Senate, aill with the vote of the Democratic-Re- publican insurgent coalition and all against the wishes of the organiza- tion Republicans and the expressed desire of President Coolidge, are: Substitution of an income tax | “there schedule calling for less of a reduc- 39 | tion on surtaxes and a greater cut in nermal rates than proposed in either the House bill or by Secretary Mellon. . Opening of tax returns and the hearings of the board of tax appeals to the public. rdlsteibutes” proits of Carporations undistributed pro! ons for_the present flat. c% Around “these provisions, 1f: STAR, WASHINGTON, D. 9, 1924, CO-OPERATION IS VOTED. | MACKENZIE MEETS . |Birds and Women B. & 0. Shopmen Indorse Collab- oration With Management. PHILADELPHIA, May 9.— Unani- mous indorsement’of the “policy of co-operation” between the “bona fide” shopcrafts unions and the manage- ment of the company was voted yes- terday by Baltimore and Ohio rail- shopmen in annual convention. Representatives of 25,000 unton shop- men of the system attended the meet- ng. Steps also were taken to intensify the campaign of the shopmen to ob- tain business for the railroad. Wil- liam McGee, president of the Balti- more and Ohio Shopmen's Federation, said that within a fow days he ex- pected to enlist the services of the entire “American labor movement and Its friends” in the business-getting program. Mr. McGee declared that more than a year's trial of the poliey of co- operation had demonstrated its bene- fits both to the cmployes and the com- pany. VETERANS SEEK FUND TO DECORATE GRAVES €. A. R. and Allied Associations Start Drive Tomorrow for Tributes. HONOR 75,000 DEAD HERE Many Lending Aid for Memorial Day Obseryance. The Grand Army of the Republic and allied veterans' associations tomorrow will begin their annual drive for memo- rial funds to decorate the 75,000 graves of veterans of all wars in the Arlington Cemetery and other cemeteries in the District of Columbia on Memorial day, May 30. ¢ Arrangements have been made to place boxes—in the shape of tombstones—for contributions in stores and at various localities throughout the city. Decorates 75,000 Graves. On the boxes will be printed: “In emory of the nation's defenders of the Grand Army of the Republic, United Spanish Wdr Veterans, Veterans of For- eign Wars, the American Legion and the brave nurses who served in the wars with them.” Inscribed also on the box is: “Thers are seventy-five thousand of these graves to be decorated on Memorial day, and a_small donation from you will do it. Will you please help?" Henry A. Johnson of the G. A. R. i | chairman of the memorial day finance committee, in_charge of raising the funds, and which also is authorized to arrange for decorating the graves. | Other members of the committee i clude Andrew J. Kimmel of the United Spanish War Veterans, vice chai man; Col. O. H. Oldroyd and E. J. Nolan. _ Many of the chain stores and others in the city have promised to co- operate with the committee. All are urged to give. S PHONE RATE PROBE ASKED New York Group Urges Congress Investigate Companies. V_YORK, May 9.—A congres- sional investigation of telephone rates throughout the country and into the relationship between the American Telephone and Telegraph Company, local companies and the Western Electric Company was requested by the community councils of this city today. Resolutions asking such an investigation were forwarded to Pres- ident Coolidge, Senator Cummins and ker Gillett. 'he request for an inquiry was based on complaints against the 10 per cent increase in telephone rates recently allowed in New York and the instailation of the Dial system, which, the resolutions said, had made “tele- phoning onerous and difficult for the general public.” The resolutions also stated that is a national dissatisfaction with rates and service that is receiv- ing the attention of the American people.” — Contest Coolidge Defeat. JUNEAU, Alaska, May 9.—Election results by which it was announced adherents of President Coolidge had lost generally in Alaska primary and municipal elections April 28 will be contested, according to indications. The ground of the fight will be that several hundred Indians, or native Alaskans, voted illegally. accepted, will center the fight in con- ference with the House and the question of party supremacy. Each was made a party issue. Veto Is Rumeored. In connection with the announced opposition of President Coolidge to these provisions, Senator Reed, Dem- ocrat, Missouri, during debate last night, declared “it has been whis- pered about that President Coollidge is going to veto this revenue biiL” His remark brought no response from the Republican side. Republican organization leaders have been preparing since their in- corporation in the bill, for a final attack on the Democratic income schedules, with the hope of inserting the House rates in their place as a compromise substitute. Efforts to change the publicity and corporati tax provisions, however, has been left for the conference. The House de- cisively rejected a proposal to open tax returns to public inspection, ‘while no change was proposed in that chamber affecting the corporation The provision for a 25 per cent re- duction in income taxes payable this year has stocd in the Senate without opposition. presidential veto recall that Mr., Coolidge and the Treasury Depart- ment sought removal of this section from the measure for enactrmient in a separate resolution before the first instaliments fell due, March 15. See Difficulty for Coolidge. Others argue that & veto of the bill would be difficult, because it would nullify the repeal or reduction of many of the excise rates, as approved both by the House and Senate. Thess reductflms ‘would go into effect thirty days after enactment of the bill into law. Exemption from taxation of amounts paid as a_state pension was voted on motion of Senator Trammell, Demo- crat, Florida. He pointed out that many southern states paid pensions to Confederate soldiers, and argued these sums should be allowed the same exemptions given federal pensious. DUNPHY IN FINALS Former Goes Nineteen Holes With McAleer in Placing Round. VOIGT DEFEATED, 1 DOWN Closest Matches Ever Witnessed on Local Courses. Roland R MacKenzie and Chris J. Dunphy are playing this afternoon in the final round of the Indian Spring Club's annual golf tournament. In two of the tightest semi-final matches ever witnessed on local golf courses Dunphy defeated George J. Voigt of Kast Potomac 1 up, and MacKenzie, who won the Washington tournament last week, defeated Earl McAleer of East Potomac on the ninetcenth hole. All square going to the seventeenth, Dunphy placed a fine iron shot 12 feet from the pin and won the hole when Voigt missed a six-foot putt for a half. Voigt again missed a four-foot putt to win the hole and carry the match to extra holes on the eighteenth, where Dunphy hooked bis second shot into a bunker. MacKenzie lost the sixteenth to become one down by taking threc points. A fine iron shot which gave him a putt for a two won the seven- teenth when McAleer missed a four- foot putt. The eighteenth was halved in five, although Roland took three to get down from the ge of the green. The youthful Collimbia player won the nineteenth hole and the match when he laid a high mashie shot 10 feet from the cup, while McAleer half topped the second shot. Tom Moore and John F. Brawner are playing in the final of the first flight consolation. They reached the final round by victories over Albert R. MacKenzie and W. A. McGuire. Stars Eliminated. The two public links players, who {learned their game on tlhe course at East Potomac Park, played against the two men who have shown them selves 80 far this year to be the cream of local golfing circles. George J. Voigt of East Potomac Park, who met Chris J. Dunphy_of Columbia this morning, while Earl McAleer, southpaw golfer from the park, who crossed clubs with Roland R. Mac- Kenzie, Columbia’s young star, won their way into the semi-final by out- slugging their opponents through mud and water yesterday in one of the soggiest golfing days years. The first round of match play yes- terday witnessed the defeat of two golfing stalwarts in the persons of | Waiter R. Tuckerman, the District hampion, who lost to Roland Mac Kenzie, and Albert R. MacKenzie, the Middle Atlantic champion, who lost to Votgt The finest mateh of vestsrday and one of the best in many day was the afternoon cngagement between Roland and Miller B. Stevinson, who won the medal round. Although tevinson won the first Tole, the youngster caught him at the fourth, and they played through the turn all square. Stevinson put an iron shot [into a’trap at the tenth and lost the hole. Every hole thereafter was balved until they reached the six- teenth, where Roland laid an ap- proach stony. The lad lost the seven- teenth, however, by misjudging the shot, but won the eightsenth to win from_Stevinson, 2 up. MacKenzie was 75 and Stevinson 76. Frist Flight Scores. Yesterday's summaries follows: First flight; frst round—C. J. Dunphy CoL, deteated Tom Moore. 1. 8., 3 and 1: s Ag" P., 2 and 1; Earl McAleer, ¥.Rrawner, Col., 2 up; R. Col. defeated 'W. R. Tucker- 4 and 3: M. B. Stevinson, Col.. ms, deteated Kenxie, o, Aleer defeated Krauss, 6 and J; Gefeated Stevinwon. 2 tip. Corsolation—Moore defeated Downey. 8 and 7: MacKensie won by default; Brawner de- ;a.igd Williams, 7 and 5; McGuire won by de- a Second flight—J. M. A M. Porter, Col.. by defs man, Wash., defeated J. 2 up; C. B."Asher, Col. defeated A- oty 1 up: d. W, Col., P Y. Anderson. I. Col., defeated J C. Olark . 8. Wash., 2 and 1; C. A. Fuller, C. C. . od W. M. Kenmedy, Col., 8 and 1: C. B. Hatch, Ool, defeated G. P. Orme, Col. 1 uj Second round—Freeman defeated Cutts, up: Asher defeated Brawner, 5 and 2 defeated Clark, 3 and 1; Foller defeated Hatch, 6 and 4. Conmlation—Browzer won from Perter by default: Prescott defested Anderson. 6 and 5; Davidson defeated Murphy, 1 up; Orme de- feated Kennedy, 3 and 2. Third Flight Results. Third flight—H. K. Cornwell, Col.. wen from J. Gray, uoattached, by defamit; P, J. rimell, 1. 8., won from B. V. Beyer, I S.. up; W. B.'Vogel, E, P.. defeated Thomas opkins, 1. 8., J and 2; D. C. Patterson, I. » won from Page Hufty, E. P., by defanlt; 5, 1. 8., won from'C. H. Baker, a0 2; G. 'C Minnegerode, C. O, . W. R. Crampton, Col.' 3 and 1i L S defeated T W, Richards. . C. Grifith, Ool., by default. Second round—Frimell defeated Cormwell, 1 up: Vogel defeated Patterson, 6 and - iy man defeated Minnegerode, '3 and 1; defeatod Obristman, 3 and 2. e P oetins ea fraks Hey by addacit: salt: s won from fait; Baker won from Crampton by default; deohie olt. Fourth flight—J. A. White, feated E. L. Bono, Damn., 2 up; J. T. Harris, Bann., defeated M. D. Gieseking, I §., 1 up: V. W. Van Fleet. L 8., and L. W. Perce, R e S eated 3. Shannon, Col., defeated 8. Markham, I 6., Geteated C. A. 5 Becond round—White defasted Harris. 4 and 3; Rose wen by defsuity Tlley defeated Shannon, 4 and 3; Truett defeated Collins, 1. Ganestation—Bano_defeated Dieseking, by de- i, ouble defani; Batm ‘defeated De Brawner, S g BAme Those who talk of a|fan won_trom H. West, Gol., 3 ] . B. Baker, Col., defeated'J. HeCormac! 3 agd 2; T. V. Scott, I 5., defeated M. Fenedfct, umatt., 4 and 2. Becond_round—Ma and 2; Foley defeated Pope defeated Hough, 6 feated Scott, 4 and 2. Sixth flight—E. E._Harrison, deteat- ea W. L 1S, 2 and 1; ¥. B. Lewts, LS dercated W, damptell, 1S, by de fanlt; A. B, Campbell, L 8., 'defeated J. M Porter, 1. 8, by default; T. J. Rowe, Taibot, defeated” W. J. Finiey, Col.. 3 2 F. P. Waggaman, C. C Taylor, I. &, 4 and 3; ¥. feated H. M. Bemis. Ce in recent| Unite in Fight on Caterpillar Army By the Associated Press. LOS ANGELES, May 9—Black- birds and housewives today we e fighting against an army of bil- lions of caterpillars moving against the southwestern out- skirts of Los Angeles and devour- ing plants and flowers. The housewives, complaining that their children cannot come home from school without walk- ing on worms, were osweeping caterpillars off thelr sidewalks and spraying them off their lawns and flower beds with insecticides. The blackbirds were gulping with bappy appetites and arriv- :nz iln new swarms hourly for the east, CHARGE REALTOR GOT LOW RENT BY FRAUD Jefferson Apartment Owners Al- legé G. B. Pitts Pays $200 Rental for 17 Rooms. ‘SECRET AGm’l“ IS SEEN Court Asked to Declare Lease Null and Void. The Jefferson Corporation, which describes itself as owner of the Jef- ferson apartment, 16th and M streets northwest, today filed with the Rent Commission a petition charging G. Bryan Pitts, vice president of the F. H. Smith Company, with a “secret agreement,” by which he received special consideration and special rental of his seventeen-room apart- ment in the Jefferson Apartment, “defrauding” stockholders of the Jefferson Corporation and resulting |in “an unfair and unequal distribu- tion of rents among the other tem- ants” The alleged “secret agreement.” the petition avers, was between “W. A. Mills, then president of the Jefferson Corporation; C. Elbert Anadale, sec- retary of the Jefferwon Corporation; the F. H. Smith Investment Company, the F. H. Smith Company and G. | Bryan Pitts. it is also set forth that the F. H. | Smith Investment Company ~handled | $500,000 first mortgage bonds of the Jef- | ferson Corporation, that the F. H. | Smith Company fixed the rents among | the other tenants occupying space | cquivalent to Pitts’ apartment at “and for a sum in excess of $750,” and that | the “reasonable value of the apartments | oocupied by the defendant is not less | than $1,000 per month.” Pitt’s lease, is stiown, is at rental of 3200 a | month. | _Trke petition, signed by L. M. Am- | sted, president of the Jefferson Cor- | poration, asks that the lease between Pitts and the corporation ‘“be de- clared null and void as contrary to |law and in fraud of the rights of your petitioner and in fraud of the rights of the other tenants in the apartments, and that the said leass be rewritten in accordance with law.” Question Commission Deal. Pitts and “his associates in the F. H. Smith Company” are also charged with having received $10.000 which was to have been paid to W. A. Mills, agent. The contract for sale of the $500,- 000 first mortgage bonds. at par, it is set forth, provided “that of this amount there was to be deducted the sum of $55,000 to be paid to the F. H. Smith Company and the sum of $10,- 00 to be paid to W. A. Mills, agent.” In this connection the petitioner |charses “that the $10,000 aforesaid, |provided to be paid to W. A Mills. |as agent, was in reality to be paid |and was thereafter actually paid to |G. Bryan Pitts and his amsociates in the F. H. Smith Company.” Pitts’ apartment in the Jeflerson is described as cousisting of “seven- teen rooms and five baths.” were formerly supposed to have been apartments No. 704, 706, 708, 710, 712 and 714 == | PHIPPS’ SECRETARY REPLIES TO BLANTON Questions Texan’s Criticism of Realty Taxes Paid by D. C. £ Residents. Answering Representative Blanton's personal criticism of real estate taxes paid by certain residents of the Dis- trict, the secretary to Senator Phipps today pointed out that “any reason- able man, who does not desire to give false impressions or becloud the issue, must admit that there is nothing to the charge” Senator Phipps, how- over, said that he did not care to com- ment on Mr. Blanton's statement. Senator Phipps’ secretary said that the only real estate taxes paid by the senator in the District are on his home here, which amounted last year to $1,227. “If Mr. Blanton wishes to think that on account of a possible increase in taxation which would cost, at most, a few hundred dollars, Mr. Phipps would view District matters from a selfish standpoint, the repre- sentative is welcome to that opinion. No Commercial Interests. ‘“Does Mr. Blanton mean to inti- mate that a member of Congress should not own his own home in the District, and that if he does, he is preciuded from expressing ? Please note also, that Senator Phipps has no money invested here for ~commercial purposes or from which he receives a return. It ap- pears that, instead of being criticized, 9 |he should be commended for becoming a property owner in the District and for doing his share in paying taxes toward the upkeep of the District government.” Senator Phipps’ interest in District atfairs, it was sald went still further, as last vear his contributions to char Organ jons here totaled $22,800. figure includes an item of '$4,200 to Garfiield Memarial Hos- pital,"and one of $5,000 for a grand- stand for the athletic fleld of Walter orely " thes tributi " y these con: ons,” said the secretary, “prove that the sen- are entirely unselfish.” ICEBOUND STEAMER, 56 ABOARD, REACHES PORT Northwest Gale Abates and Six- Mile Blockade at Dulath Gets ReHef. By the Ameciated Press. DULUTH, Minn., May $.—Breaking the second serious ice blockade at the head of the lakes this Spring, ten shi {ncluding the Canadian passenger liners Hamonic and Huronic had reached the Duluth-Superior harbor at 10.45 am. today. With the: northwest gale abated, the Huronio, Jcobound. for ‘aree. daye. with fifty-six persons aboard, was the first 10 break through with the aid of a tug. She was followed closely by a freighter. A score of freighters were cattered along the six-mile front of the block- ade early today, with a fleet of tugs Struggling to break up the fce. ST. PAUL, Minn, May 9.—Chilly spring weather, with a mixture of snow and rain, greeted the northwest today. In the vieinity of the Twin cities snow fell early, melting at once. rts from other sections of the and North and South Dakota of smow, with temperatures around freezing. ator’s motives which | BOARD OF TRADE PLANS GALA DAY FOR SHAD BAKE Entertainment Committee for An- nual Outing at Quan- tico Named. Plenty of entertainment for the Washington Board of Trade on Its annual shad bake, which will be giv- en this year at the Marine base at Quantico, Va., is Py e e entertainment committee, headed by Dr. Frank E. Gibson. As the members arc §o- ing down by steamer, the en- tertainment com- mittee has the ex- tra job this year of providing six additional hours of entertainment, three cach way on tha boat. cThy Washington Dr. Frusk Z. Gtbesn. Canoe Club Jaiz Orchestra will furnish the music during the outing. Dinner will be served by the marin a8 so0on as the vessel arrives, and then there will be an asrial cireus. foliowed by an athletic program, and more entertainment on the return trip. During the voyage down the river the steamer will be escorted by mre seaplanes from the marine air e. The entertainment committee's per: sonnel was announced today as fo! lows: Dr. Frank E. Glbson, chalrman T. Prooke Amiss, vice chairman Warren Cochren, vice chalrman; Fred Allen, vice chairman; C. B. Asher, Walter B. Avery, M. M. Barnard, Frank F. Bell, jr., P. H. Birch, Harry M. Bralove, Thomas Raymond Burr, Willlam L. Clarke, Roy W. Crampton, Y. B. Deyber, Fred Drew, William John Eynor iltam G. Galliher, W. W. Georges, Chris J. Gockeler, J. C. Hard- ing, Lee L. Herrel, George W. Huguely, Richard W. Hynson, Robert J. Mnes, James T. Kenyon, Harry A. Kite, B. K. McClosky, Earl M. Mackin- tosh. Avon M. Nevius, Hubert Newsom, R. K. Otterback, Cleveland Kinker, William C. Wedding, Roger J. White- ford, John R. Wri, GRAND JURY SEEKS TO FORCE SON OF DOHENY TO TESTIFY (Continued from First Page.) in the method aforesaid, one Edward L. Doheny, jr., having been duly sum- moned to appear and testify on be- half of the United States before the grand jury aforesaid, and having been_summoney by process duly and personally served by the United States marshal of the Southern District of California in the city of Los Angeles. on or about the second day of April, 1924, appeared before the grand jury aforesaid. “And thereupon in substance the following proceedings were had: “Present: The grand jury, Hen Peyton Gordon, United States At- torney for the District of Columbia, Hon. Atlee Pomerene and Hon. Owen J. Roberts, special assistants to the Attorney General of the United States. Proceedings Are Cited. “Edward L. Doheny, jr., was called and was sworn by the foreman of the grand jury, whereupon the following took place “Special assistant to the Attorney General, Mr. Roberts: ‘What is your name? “‘A. Edward L. Doheny, jr.’ Q. Where do you reside? “ A Los, Angeles, Calif.’ “‘Q. How old are you? ““A. Thirty years and six months. “'Q. Will you tell us about the transaction you had with Albert B. Fall on or about November 30, 19217 “A. 1 am sorry, sir, but I came before this committee in answer to & subpoena in a proceeding in which it is or may be alleged that my father, or myself, or a company in which we are interested, may be made defend- ants. Neither my father nor myself, nor the company in which we are interested have been guilty of any wrongdoing or_transgressions against the law. My father has made certain statements which have been made the basis of certain charges against him. While 1 assert that nothing which I might say would be evidence of any wrongdoing on my part, 1 realize that any evidence that I might give or any testimony I might give might be used against me. 1 mast, therefore, decline to answer that question on the advice of my attorney, on the ground that what 1 would Say might tend to in- criminate me. With all due respect to ths jury and to the counsel for the government, I claim my privilege against seif-crimination. Prosecution Not Intended. “'Q. While you are thus refusing to testify on the ground that anything you would say might temd to in- criminate you, and are, therefore, claiming your oonstitutienal privi- lege, do you not have in mind that before you came in to the grand jury you and your counsel were both as- sured that counsel representing the government had no thought that you had been guilty of any criminal mis- conduct, and that there was no pur- pose or intention on their part to at- tempt any criminal proceedings against you personally? “‘A. Yes, I have in mind that the counsel for the government gave to me and my counsel, Frank J. Hogan, those assurances. I am sorry, sir, but I must adhere to my original position and refuse to testity for the reasons and on the grounds stated.’ “And the grand jurors aforesaid, though mindful of the obligations of secrecy imposed upon them by law in the discharge of their duty, are nevertheless compelled to ask that this honorable court forthwith issue a rule agwinst the said Edward L. Doheny, jr. that it may be by the court determined whether or not the said Edward L. Doheny, jr., shall answer the questions propounded to him as above set forth, and for such other action as the court may deem legal and proper in tne premises.” e LANDSLIDE BURIES 14. Mexican Village Near Jalapa De- serted by Residents. VERA CRUZ, May 9% —Fourteen persons were buried under a huge landslide in the village of Misantla, near Jalapa, yesterday, according to reports received here. The slide oc- curred on a steep hill, known as El Pilon, and is believed to have been due to the effects of the earthquake which occured a few days ago. Many persons are leaving Misantla, fearful that other slides will occu HOUSE MEMBER DEFEATED Representative Moores, Indiana, Fails in Primary by 3,000. INDIANAPOLIS, Ind.,, May 9.—Mer- rill Moores,« Republican representa- tive from the seventh Indiana dis- trict, which comprises® Indianapoils and. Marion County, apparently is defeated for renomination by Ralph Ralph E. Updike. Returns from 19§ of the 206 precinets in the district to- day gave Updike 27,642 and Moores, 24,122, Moores is the second Republican Representative to fall of renomina- tion, W. Fairfield being Gefeat- ;1‘ in the twelfth district by David 088, A From Yesterday's 5:30 Bdition of The Star HOUSE VOTES TO END CLASSIFYING BOARD Lehlbach Bill Transferring Duties to Civil Service Passed, 172 to 28. MEETS STIFF OPPOSITION Proposal to Create New Govern- ment Agency Is Defeated. By & vote of 172 to 26 the Hou yesterday afterncon passed the Le bach bill abolishing the personnel cla- sification board and transferring it duties to the Civil Service Comm sion. The measure now goes to th Senate. This action was taken after tw attempts had been made by Represer tative Tom D. McKeown, Democra Oklahoma, and Representative Mart: B. Madden, Republican, Illinois, chair man of the House appropriations com mittee, to amend the bill by substi- tuting for the personnel classifies tion board a board of three members not now In the vernment &ery and not now residents of the Dicir| - of Columbia, to be appointed Ly th President. The MeKeown amendmer would authorize the President 1o fix the salary and the Madden ame. ment would have fixed the salar: the three board members at 37 Both were defeated. Up Under Special Rule. The legislation was brough: under a special rule, which adopted by a vete of 327 to 11. Representative Blanton had vioualy protested that Congress oug not to eatertain legislation to abolis the board, which was already fun tioning. Chairman Lehlbach of the o service committee explained that pr vious to the passage of the reclas: ification act there was no co-or naton or co-operation and no elemer: of justice in the fixing of salarie: He pointed out that Congress fo some time was cogmizant of the fuct that the salary and wage rate fo positions involving like duties ar responsibilities and calling for th- same qualifications showed = wid wariations and marked inequalities He told the House that the salary and wage rate for positions of t same class were different for diffe ent departments and in independent establishments, and that for mar classes the salaries were inadequa- It was to remedy that situation tha! the classification act was passed a thorizing and directing the orga: zation of a personnel classificat. board. - In spite of provisions of the law Representative Lehlbach saii, th board refused to classify and .arr out the provisions of the law. Cttes Beard Testimeny. He insisted that the board did subdivide the grades into classes an furnished no titles and definitions published no statements as required by the act for the guidance of de- partmental heads, and, in fact, made no classification at all. “As a result wethave employes do- ing like work receiving different sai- aries,” Representative Lehlbach said. “The purposes of the act are being defeated by the refusal of the board to perform its work. The question is whether the expressed mandates of Congress are to be carried out or disregarded. The board willfully and deliberately set aside the pro- vision of the law. “Each member of the personnel clas- sification board testified at the h ing held by your committee that the board is mot functioning properly and urged that it shouid be abolished, said Representative Lehlbach, in con- clusioin. Others, in addition to Mr. Blanton who spoke in opposition were Repre sentative Colton, Republican, TUtah Representative_ McKeown, Democrat Oklahoma; Representative Josep Byrns, Democrat, Tennessee, rankin majority member on the House appro priations committee, and Representative Martin B. Madden, Republican, Iflinois chairman of the ‘appropriations com mittee; Representative Black, Demo- crat, Texas; Representative Wood, Re- publican, Indiana, and Representative Chindblom, Republican, Mlinois. Others who spoke in favor of the Lehlbach bill were Representative Lamar Jeffers, Democrat, Alabama. and Representative Sellers, Democrat, New York. From YesterSay's 5:30 Bdfitien of The St ARNSTEIN AND COHN SURRENDER IN COURT End Long Fight Here Today. Face Two-Year Bond Rob- bery Sentence. Jules, alias Nicky, Arnstein and Isa- dore, alias Nick, Cohn, both of New York, late yesterday afternoon ended their three-year fight to evade a scn- tence of two years in the penitentiar which was imposed on them in the spring of 1921 by Justice Frederick ! Siddons of the District Supreme Court The men, with Norman S. Bo Washington lawyer, and David W. Sul van and Wilen W. Fasterday, =i brokers of New York and Washing ton, were convicted of conspirac. ! bring into the District of Columbia fo- hypothecation with local banks a nor tion of the $5,000,000 Wall street sec ties stolen from messengers of brokers in the metropolis. All five are now in the District jail awaiting transport tion to a federal penitentiary. Arnstc: and Cohn also have a fino of $10,00 to pay, and Bowles has a fine of §5.000 Surrendery to Hits. Neatly dressed, Arnstein and Cohn entered Criminal Court 1 and sur rendered to Justice William Hitz, w was presiding. William E. Leahy who prosecuted the case with United States Attorney Gordon, called the attention of the court of the refusa of the United States Supreme Court to review the action of the Cour of Appeals afirming the conviction of the men, ana asked that they be 7 mitted to serve their sentences. Arnstein recognized some of !h¢ court officials and newspaper men who covered his trial, and greeied them with & smile. Mr. Leahy told the court that Arnstein is in poor Ziealth, and asked the justice to co- operate in having him sent to prison at once, preferably to Atlanta, Ga The court remarked that the place of confinement is optional with the D¢ partment of Justice. Justice Hitz last Monday forfeited the bond of $10,060 each when Arnstein and Cohn failed to appear for commitment It is expected the court will be asked tomorrow to relieve George W, Rav the bondsman, from the penalty of the forfeitures. Neither Cohn nor Armstein was will ing to offer any explanation of where they had” been when newspaper men questioned them. Jordan to Be Harnessed. NEW YORK, May 9.—The Jordal River, in Palestine, is to be harnesscd for the creation of electric power and light. Work will start this year according to an annouscement by the Palestine development council-