Evening Star Newspaper, October 31, 1927, Page 1

" WEATHER. (U. 8. Weather Fair tonight: not so cool tonight. ‘Tomorrow partly Temperature—Highest, 63, at noon today; lowest, 48, Full report on page 3. Closing N. Y. Markets, Pages 14 and 15 No. 30,498 post _office, TRACTION MERGER < WK $aL. 70000 CAPITAL PROPOSED Wilson Outlines Consolidation Plan Before Public Utilities Board. PRESENT FAPE WOUI:P CONTINUE FOR ONE YEAR Rate Making to Be Based on Earnings Rather Than Valu- ation of Property. Salient features of the. widely her- alded plan of Harley P. Wilson, owner of the Washington Rapid Trausit C for bringing about a unification of the transportation systems of the District wera officially submitted to the Public Utilities Commission today by its au- thor and were immediately made pub- lic for the first time. The plan provides for a consolida- tion of the transit properties of the Capital Traction, Washington Rail- way & Electric and the Washington Rapid Transit Cos.,, and the creation of a new company, chartered by act of Congress. The merger company would have a capitalization of $52,700,000, of which £2,700,000 would be new capital, $1, 200,000 of which would be used for making track adjustments and rear- rangement of facilities, etc.; $500,000 for working capital and $1,000,000 for + a fare adjustment fund. Based on Earnings. The capitalization would be based, as previously hinted, not on the re- spective valuation of the Atranuporlr tion companies, but on their earnings r a typical year. ‘o.\nn Wilson pointed out that he had succecded in inducing the owners of the street railway properties to accept the earnings of the company rather than the valuation as the basis for rate-making purposes. The merged company, under Mr. Wilson's phan, would be privately ; owned, but he proposes the appoint- ment by the District Commissioners of a board of three trustees to man- age the utilities, regulate and fix the rates of fare and to direct the re- arrangement of the tracks. The sal- aries of thesc trustees he proposes to charge against the operating ex- penses of the consolidated company. Present Fares to Stand. The plan also contemplates the tinuance of the present rates of for one .year after the date of idatior T e e Wilson emphasized tHat the plan he submitted to the commission still Jacked certain details as to the features outlined in the document submitted to the commission. and ‘he reserved the right to make any changes necessary before a_public hearing is held by the commission to consider his proposal. The Potomac Electric Power Co. would not be a party to the merger. M., Wilson, pointing out that it is a separate corporation engaged in a dif- ferent line of business. The consolidated company. under Mr. Wilson's plan would assume a funded debt of the existing companies not in excess of $20.556,000. Inciden- tal t¢f the consolidation there would be provided in cash new capital amount- ing to $2,700,000, which would be used to furnish the superior and more eco- nomical service. Earnings Rate-Making Basis. Mr. Wilson said that he proposes to use the earnings of the railway com- panies for a typical yvear instead of the valuation as a basis for rate-mak- ing purposes, because he feels that the valuation of these companies, which ranges between $62,500,000 and $65. 000,000, would impose a higher charge upon the street car and bus riders than present conditions justify. Under this plan the earnings of the companies before interest and depre- | clation, together with the saving in| operating costs. which he claims will | result under a unified and readjusted | operation and more_efficient service, estimated at about $1.000,000 a year, and also immunity of the merged com- pany from the expense of paying the | salaries of the crossing policemen and the cost of street paving between the tracks, would give the consolidated company an earning of more than $3,- %.500,000 3 con tare | con- Capitalized at the return of 7 per | cent which the courts have held to be fair a rate base of 000,000 would be established to which would be added $2,700.000 of new capital makimg an aggregated rate base o $52,700,000 at the beginning of the operation of the consolidated- com- pany. Annual Return Estimated. On this basis Mr. Wilson has fig- ured the owners would be entitled to 2n annual return of $£3689.000 year. This rate base is from £l 500,000 to £15,000.000 under that ai- ready established by the District Court of Appeals in the Capital Trac- tion Co. case and the prohable results of the Washington Railway and Electric Co. case. Mr. Wilton's plan aleo having the Potor Electric Power Co._enter into a longterm contract with the consolidated railways com. pany to furnish it power on such terms that the net cost would be sul and the Washington Railwa tric Cos. The board of trustees y Mr. Wilkon to manage the olidat ed company would have red upon it ample powers of supervision . regulation and direction to assure a gervice and provide extensions, bette ments and improvements as may be required in the public intercst. “The trustees acting for the Dis. trict, having as indicated supervision over costs of operation, although leay- ing the actual operation in the hands of the corporation,” he said. “would be empowered to periodically adjust fares so0 as 1o pay actual operath costs plus the return to the ownel f the properties, the return to th o wners to be utilized hy them in pay- @ interest on funded debt and divi "Werds. Adjustment of Rates. “For use in such periodical ments of rates of fare as may occur. @ fare adjustment fund $1.000 (Continued on Page 5, Column 3, jnst af ates | Bureau Forecast.) cloudy. at 7 a.m. today. Entered as second class matter Washington, D. C. ch WASHINGTON, SEEN IN WILSO Improved Track Co The plan of Harley P. Wilson for the voluntary merger of Washington's major transportation lines, as deliv- ered to the chairman of the Public Utilities Commission today, follows: ¢ dear Mr. Chairman: “As you are aware, I have been actively engaged for some months in an effort to work out a plan for the unification of the street railway lines and bus lines in the District of Columbia. It is a complex problem, involving consideration of many fac- tors and conflicting interests. I am gratified, however, to be able to say that the major problems have found | lution, and that the plan is in suf- | ficiently definite shape to enable me | to submit its principal features to the commission, “I Would have preferred not to write vou about this matter until certain minor questions have been definitely solved, but, in view of the widespread | public interest in the matter and the | misunderstanding that may arise out of reports about the plan, which are not always accurate, I have decidea to submit to you now the general outlines of what I propose. SOVIET ASKS SEAT AT ARMS PARLEY Moscow’s Decision Declared to Improve Chances of Conference Success. By the Associated Press. GENEVA, October 31.—Russia has notified the League of Nations that the S)viet government will participate in the work of the preparatory com- mission on a disarmament conference, it -was announced at League head- quarters today. The absence of Russia has been con- sidered one of the biggest obstacles to the convocation of a conference which would stand a chance of suc- cess in the reduction of land arma- ments. The commission meets here November 30, Swiss Incident Closed. The Soviet government hitherto has refused collaboration in the disarma- ment conferences of the League, its last refusal being accompanied by the declaration that the t government was disinclined to “delegates to Switzerland because 9f the then un- settled controversy that grew out of the assassination of Vaslav Vorovsky, Soviet representative at the Lausanne conference of 1923. Sir Eric Drummond, League secre- tary, today received a telegram from Foreign Commissar Tchitcherin say- ing that now that the Vorovsky inci- dent had been settled by the protocol of April 14, signed in Berlin betwee.s Switzerland and Soviet Russia, Mos- cow was willing to participate in the labors of the disarmament commis- sion. A request for information as to the place, date and agenda of the next meeting was included. League circles regard Russia’s de- cision to co-operate in the disarma- ment commission’s work as of ths greatest importance to the future of disarmament. 1In principle it s re- garded as removing the chief obje tion of the nations borderfhg Russia to serious discussions of the disarma- ment problem. Several of these na- tions have made their acceptance of any treaty conditional upon the ad- herence of Russia to the same. Army Strength a Mystery. The exact strength of the Soviet army is said to remain a mystery to the Western world and Soviet partici- pation in the conferences, it is be- lieved, will permit all the powers to lay their cards on the table. Furthermore, coming after Soviet collaboration in the international eco- nomic conference, Moscow’s latest de- cision is regarded as additional proof that Russia seeks to return to the European concert of nations. Several conferences hitherto have sought to bring Russia back into this concert, but failed. The United States is represented on the preparatory commission, which next meets on November 30. The agenda of the conference in Assembly and Council concerning dis- armament, especially the question of {appointing a special committee to | study the question of security raised by the French delegates at the |GERMAN FLYER LEAVES PERSIA ON WAY TO U. S. By th BE, 31.—Lieut. Otto Koennecke hoppe 30 a.m, miles Associated Press. NDER AB! . Pe October off today for Karachi, Indin, in the plane Ger. is flying to the vy of the Orient. 00 | mania, which “he United States by w Lieut. Koennecke set out without al partner, Count George Solms-Laubach, financial back- | ma cludes an examination into the resolu- | tion recently adopted hy the League | Rumanian Legatio | tormal BETTER AND CHEAPER SERVICE N MERGER PLAN nditions and Better Routing of Cars Among Features in Proposed Consolidation. The plan contemplates: 1. Tho condolidation of the transit properties of the Capital Traction Co., the Washington Railway & Electric Co. and its subsidiarics and the Wash- i ’ ansit Co. The Poto- mae Electric Power Co. is ot in cluded, since it is a separate corpora- tion engaged in a different line of business. "2, Effective public direction of service, rates of fare, rearrangements of trac and facilities, construction of extensions, betterments and im- provements, cte., of the consolidated properiies. To effect these fundamental ob- < it is proposed that a new com- iy he chartered by act of Congre to take over all of the aforesaid transit facilities and properties, the consolidated compauy to assume fund- ed debt of the existing companies, not to exceed in the aggre 3 000, Incidental to the there will he providad in cash the total sum of $2,700,000, of which $1,2 il be used for the purpe nece: v track adjustments and re. arrangement of facilities, ete., to en- able the consolidated company to fur- ni 1 RUMANIAN REVOLT REPORTED FLARING Revolution Directed Against Premier Bratiano, Hun- garian Papers Say. By the Associated Press, BUDAPEST, Hungary, October 31. —Reports from the Rumanian frontier to the effect that a revolution broke out last night throughout Rumania directed against Premier Bratiano are published by the local newspapers to- day. 2 The renorts, however, could not be confirmed. Dispatches from Bucharest vester- day stated that the situation in Ru- a had returned to normal and that it appeared as though Premier Bratiano had extinguished the hopes among Prince Carol's followers that Carol would be restored to the Ru- manian throne. ~ The only visible signs of the flare- up over Carol, the dispatches said, were a few soldiers in evidence on guard outside the royal palace. GARRISONS ON WAR BASIS. Soldiers in Rumania Prepare for Any Eventualities. BELGRADE Jugoslavia, 31 (®.—Buchares Politika say that all Rumanian gar. risons have Leen placed on a war basis with a view to any eventualities that may result at the meeting of the National Peasants’ party at Alba Julia, (The National Peasants’ party has shown itselt-as somewhat favorable toward a possible restoration of Prince Carol to the Rumanian throne.) TENSION REPORTED FEASED 3 October dispatches to Allowance for Carol Declared Likely To be Increased. LONDON, October 31 (#).—A Bu- *harest dispatch received by the West- minister Gazette hy indirect route to avoid the censorship, says the ten- sion in Rumania has been decreased by the intervention of the Patriarch Miron Cristea, one of the regents, The patriarch advised Premier Bra- tiano to modify his iron methods, which he declared could only lead to trouhle, and to act more like @ eontsituiional premier and less like a dictator, Jt is believed that, due to this, fthe situation has eased, and it is thouzht that Former Crown Prince rol may have his financial allow- Ance increased as a reward for his failure to achieve a coup d'etat. Reuter's Budapest correspondent 8avs rumors emanating from Tran- svivania are that Bratiano is pre- paring to leave Rumania. Little cre- dence is attached to the rumors. DISORDER REPORTS DENIED. in Paris Terms Rumors False, PARIS, Octcher 31 () manian legation here (o statement denying “false re- ports ansing in Berlin, Vienna and Budapest” of disorders in Kumania, especlally with regard to alleged con fMiets in Transylvania and Bessarabia. The stateme e that no ex- | traordinary m ¢ been taken or are necessary to maintain order and denies reports that disagreement has arisen Letween the regerncy and the Bratinno government. s Airplane Mest Day Set. SANTA MONICA, Calif., Octoher 31 P).—An plane "meet, in which | Army. Navy and commercial craft will participate, commemorating the completion of the Army's around-the- Ru. v issued a ler of the flight, who suffered slight in juries recently when ihe Germania made a forced landing. Count Solms ibach has since reached Ragdad, ak. by an air liner and left for Cairo d flight, will he held at Clover Field, near here November 13, The meet will he the third annual affair staged under the auspices of the hern Californ il Aeronant | Nati ion, By the Associated Press, A rule of conduct for nd rs who eross was laid down to |Court in a more & Ohio | 2d. In setting aside a judzgment in favor |of the estate of Nathun Goodman Killed at Whitfield. Ohio, the court, through Justice Holmes, declared that “when a man upon a railroad track, he knows that he goes to a | place where he will be killed if a |train comes upon him before he is clar of the track. He knows that - road tracls v by the Supreme d by the Baiti goes {Man Killed on Train ’I-'racl(s Has‘Only Self to Blame, Supreme Court Rules automobilists | |he must stop for the train, not the | train stop for him. ‘ “In such circumstances, it scems [ 1o us, that if a driver cannot be sure | otherwise whether a train is danger- [ousiy near, he must stop and get out of hix vehic Ithough obviously he ten be required to do more op and look. " Tt seems to us that it he relies upon not hearing the tain or anv slznal, and takes no further precaution, he does so at his own risk The court announced that it had ] 121d down this rule of conduct for the cobtagl of all courts “once for all” ¢ Foeni ‘WITH SUNDAY MORNING EDITION of the| D. C, MONDAY, OCTOBER 4 o 31, 1927 —FORT Star, Y-EIGHT PAGES. * OIL DEAL LEADING 10 ALLEGED BRIBE DESCRIBED 10 JURY Government Prosecutor Suc- ceeds in Introducing Evidence Over Objections of Defense. DOCUMENTS SHOW TRADE WITH HUMPHREYS FIRM Roberts Contends Proceeds Were Invested in Bonds Which Fall Later Received. Biocked temporarily by the defense but substained by the court after hearing lensthy arguments, Owen J. Roberts, special Government oil prose- succeeded today in placing be- fore the jury in the Fall-Sinclair con- spiracy case evidence intended to show that Harry ¥, Sinclair had a major interest in the Continental Trading Co. of Canada, “which by an oil deal” made millions of dollars in profit and invested them in Liberty bonds, some of which found their way into the hands of Albert B. Fall a month after the Teapot Dome lease was given to Sinclair by the former Secretary of the Interior. Roberts read to the jury three legal documents which in effect showed that on November 17, 1421, A. E. Hum- phreys, now dead, a_wealthy oil op- erator of Texas, soid 33,333,333 bar- rels of oil at §1.50 per barrel to the Continental company, which Roberts told the court was a “mere shell” and was organized on that same dny; that the Continental company on the sa day resold the oil to the Sinclair Oil Purchasing Co. ‘and the Prairie Oil & Gas Co. at $1.75 a harrel and that Sinclaiv and James E. O'Neil, president of the Prairie company, who cannot be found to testify in this trial zuaranteed in writing the performance of the Continental's contract with Humphre: Seeks to Prove Agreement, Then as Roberts sought to show that an agreement had been entered into between the Sinclair Crude Oil Purchasing Co. and the Continental Co. on May 26, 1923, twhereby the Continental Co. assigned its contract with the Humphreys companies to the Sinclair interests for §400,000, Martin W. Littleton, counsel for Sinclair. vigorously abjected on the ground primarily that the date of the agree- ment ~was beyond the boundaries established in the indictment during which the allegzed conspiracy began and was consummated. Roberts had called H. L. Phillips of Tulsa, Okla., president of the Sinclair Crude Oil Producing Co., to the stand and requested him to produce the agreement. 1t was upon this request that Littleton sought” to block the Government's procedure, With the jury excluded, Roberts made a lengthy statement o the court, in which he emphasized the importance of this agreement. By the admission of the agreement, he told Justice Frederick L. Siddo in which the Continental company “sold its contract for the paltry sum of $400,- 000" at a time when it would have made “millions of profit” under it, the Government oil prosecutor declared hat evidence and more to follow ‘would show what the Continental company was, where it made its profit, who was interested and would bring home Sinclair’'s ownership and distri- bution of the Liberty bond: Littleton tock the stand that the Government to date had not produced any evidence whatever which would tend to show that Sinclair was inter- ested in the Continental company that he ever received a bond for any profits made by the company or that he was in any other way identified with it, Evidence Is Admitted. In permitting the admission of the agreement as cvidence, the case pro. eded, only tobe interrupted a moment ater for the luncheon recess. Justice Siddons, in overruling the ohjection of the defense, stated that while no evidence had been offered to show that Sinclair owned stock or secur- ities in the Continental Co. at the time of the development in the present case, the evidence thus far tends to show that the Continental Co. was “‘a mere instrument, a shadow and an illusion,” by which was secure an exceedingly profitable contract. *1 am not prepared to characterize it as a mere #peculation or conjectur the court added with some heat. “In view of the evidence which Govern- ment counsel ha in view of the Government's conten- tion and what it purports to show later on I am mnot prepared to say that this is irrelevant.” Immediately after the luncheon recess, Roberts read to the jury the agreement of May 26, 1923, which set forth that the Sinclair Crude Oil and Prairie companies agreed to the con- tract made between the Continental Co. and the Humphr companies for $400,000, half to be paid b Sinclair nd the other half by the Prairie ch company | theretore ad one-half interest in the cont ich was taken over as of June 1, . The agreement also set forth that the repurchase or re- i greement would be canceled. Tells of Meeting Osler. In answer to Roberts’ questions, Phillips said he met H. S. Osles president of the Continental Co. the Sinclair Building in New York on an appointment made by the witness. Asked by Roberts from whom he re- ceived his instructions to make the appointment, Phillips could not answer, explaining, “I had heard (ne | assignment of the contract could e purchased.” He denied that Sinclair ave him the information, and dis missed the question finally by decli ingg, "I don't know where 1 first heard ahout it."” PR | the agreemen appeared, a s 1o the signed on behalf of the Sin: clair Crude Ol Co. He said, in inswer to further questions, .lat he previousiy had heard the fizures in- d, but was unable to give the d a draft « mmered aw in an endeavor to learn from the wit- ness his original information ahout the assignment, but without av; ‘The agreement alrve ecuted by the r it was executed by the Py from which concern he received a ¢ showing that action. Phillips executed the conty uthorit et with | economic reason: | report to the commission, already put in and | RADIO ALLOCATIONS SEEN AT DEADLOCK Assignment of Wave Lengths a Failure, Observers Say. New Plan Urged. Coincident with the first break in the Federal Radio Commission, which comes today with the effective date of the resignation of Commissioner Henry H. Bellows of Minneapolis, it is increasingly evident both to the commissioners and to observers of na- tional radio aff: that an impasse has been reached in the allocation of wave lengths. Two courses of action are open to settle a problem that has hecome even more vexing, in the face of the herald- ed improvements over the Summer months, than it was before the reallo- cations in June. The plin facts in the case, accord- ing to those who have watched the trend of affairs in the broadcasting world, are that the national realloca- tions, which have been progressing ever since last May, have failed to materially remed e congested ether situation, and that some new align- ment of broadcasters in an entirely different direction from that set up last June must be made. The first and probably the foremost of the twe pos- sibilities is elimination of nearly half the present broadcasters by some pain- less or painful method that will solve the physical problem of placing some- thing more than 640 stations on the air without interference. New Plan Outlined. The other present scheme of national, regional and loc: allocations, which will curb power, divide time andg keep the big broad- casters so far away from each other, in so far as receivers' sets are con- cerned, that the melancholy plaint of interference no longer will be heard. Commissioner Bellows' re: according to a statement issued under the letterhead of the commis few days ago, came because Although the radio law of February last authoriz»d crea- tion of the commission and the five members were appointed by President Ceolidge, effective March there was no provision made for their laries of $10,000 a year. In the meantime, and in the hope that Con- gress will pass a deficien appropria- tion to care for their salaries, wem- bers of the air control body have functioned without salary since March 15. > The American Engineering Council last April presented a voluminous declaring that the only satisfactory w=y to re- duce congestion and interference on the air was to cut down the number of broadcasters. Substantially the same message was given the commis- sion by experts of the Dinveau of Standards and by radio engineers as- sociated with private .orporations. JPublic Is Considered. At its early policy meetings, in which the commission set up the na ture of its guiding policics, membe: decided that the air control body h: no authority, expressly given by C gress, or inferred, to arbitrarily take broadcasting licenses away from ex isting broadcasters without some rea sonable standard of measurement which they must meet. The biggest plank in the platform of measurement was public convenience and necessity If a_broadeaster was_wanted by the (Continued on Page 2, Column 6) PAIR MUST FACE TRIAL IN MURDER CONSPIRACY Mrs. Anna Apolonio, 601 Eleventh street northeast, and Dr. Dee Ham- mer, chiropractor, 309 Maryland ave- nue northeast, must stand trial on the indictment returned against them last June, charging a conspiracy to murder Joseph Apolonio, hushand of the wom- an. Chief Justice McCol of the Dis- ict Supreme Court today overruled the demurrer of counsel for the de- ants, attacking the validity of the tment. The Government's contention is t tho pair agreed to get rid of the hu; band so that they might be married and that Hammer entered into nego- tions with Robert ¥. Langdon, otherwise known as Robert . Law- rence, helieving him to be a gunman. The indictment is in two counts, one alleging conspiracy to commit murder and the other charging the crime of soliciting another to_commit murder Assistant United States Attorne Fihelly represented the Government at the arguments on the demurrer. Radio Programs—Page 36 is Gideons Now Put Bibles on Stage Dressing Tables inted Press. AGO, October 31.—The Gideons, who have placed Bibles | in most every hotel room in the country, today extended their ef- forts to the theater. Chorus girls and principals ap- pearing in Chicago productions will be the first to find Bibles on their dressing room tables. The Bibles were to be placed on the make-up tables by tonight. Later the books are to be placed in theaters throughout the country. 1INDBERGH JOINS UGGENHEI FUND Arrangement Leaves Him Freeto Continue Activities in Interest of Aviation. By the Associated Press. NEW YORK, October 31.—Col. Charles A. Lindbergh has been re- tained in a consulting capacity by the Daniel Guggenheim Fund for the Pro- motion of Aeronautics and will not identify himself, at least for the pres- ent, with any commercial undertaking. His arrangement with the Guggen- heim Fund will leave him free to en- gage in any activities to promote the cause of flying. Harry F. Guggenheim, president of the Guggenheim Fund, issued the fol- lowing statement today: “Col.. Charles A. Lindbergh has de- termined that for the present, at least, he will not identify himself with any commercial undertaking. “The Daniel Guggenheim Fund for the Promotion of Aeronautics has therefore retained Col. Lindbergh in a consulting capacity. Under the ar- rangement with him e will be free to engage in any activities which will in his judgment promote the cause of aviation. “At his request he will be at liberty to make such flights or other experi- mental efforts in behalf of aviation as he may choose apon his initiative and responsibility. “He will become a member and trustee of the fund and his official headquarters will be at the office of the fund.” It was under auspices of the Gug- genheim Fund that Col. Lindbergh made his air tour of the country after making the first flight across the At- antic from the United States to France. SENATE EL€CT|0N HELD RACE FOR MILLIONAIRES Washington State Representative Refuses Candidacy in “Battle of Cash.” By the Associated Press, WALLA WALLA, Wash., October 31.—Charging that next year's Sena- al election in Washington will be a mere battle of hard cash versus hard cash,” John W. Summers, Re- publican Representative from the fourth congressional district, in a statement today refused to become a candidate, “I shall make no attempt to pur- chase a seat in the United States Senate, and it now looks like a million- aires’ race in this State for the Senate next year,” his statement said. Summers, who was first elected as Representative to Congress in 1918, was nominated and re.elected to the Seventieth Congress without opposi- | tion. Considerable doses of cod liver oil are being administered to the pair of | young giraffes at the Zoo, in an effort | to make up for some of the sunshine they ve lost in their close quar- ters during the Summer. It has heens impossible to construet a yard this Summer in which the two animals could romp out-of-doors and store up sunshine in their bodies for | the Winter confinement. The male giraffe, Hi-boy, has be- eun to droop quite badly, and while there is little evidence of rickets, there is some fear of an organic disorder, " L service. nday's Circd (#) Means Associated Press. 414 TEACHERS SUE 10 GET BACK PAY Separate Actions Filed for Salary They Claim Is Due Under New Bill. Four hundred and fourteen public school teachers today filed suits against the District of Columbia for balances of salary claimed for serv- ices during the three vears which have passed since the new teachers’ salary bill went into effect. Fach of the teachers filed his or her sepa- rate suit in the Municipal Court, claiming amounts carrying from $300 to $900 plus interest. Last month Attorney Paul E. Lesh filed five test cases, in which it is expected the law applicable to all the suits filed today will be settled. When the salary bill went into effect three years ago, about 100 graded school teachers, who believed the sal- aries alloted them by the &chool authorities were not what Congress had directed, organized themselves as a committee and sought a re their salary placement by th ler. When they got no action they employed counsel in an effort first to get a ruling by the Controller. Effort Comes to Naught. The Controller: office, however, took the view that it was concerned only with overpayments and not with underpayments, and that it would not pass on the matter unless requested by the District authorities. The Board of Education declined last Spring to request a ruling, and the | committee of the beard to which the | matter referred, the view that the teacher: they were dissatisfied, against the District. As the teachers’ efforts to get the matter adjusted without suit met ob- structions, the number of teachers who united in the effort grew, until nearly 500 are now insisting upon a ruling on the readjustments they con- sider due them. The statute of limitations of three vears began this Fal! to operate to bar the claims for the first months of service under the new salary act, and the teachers sought to have the Com- missioners agree to adjust all claims as might be decided in the test cases filed last month, and thus avoid the expense of so many separate suits, Decline to Waive Statute. The Commissioners, by letter sent in September to the teachers’ attorney, declined to agree to waive the statute of limitations or any other defense which might he interposed to the iime. The teachers were then ad- vised that the only way to save their rights s to file separate suits, with- out waiting for the decisions in the test c: The cost of filing the suits entered today by the teachers was 33,739.50 to the clerk of the Municipal Court and $207 to the United States marskal of that coure. The marshal's fee is at the usual rate of 50 cents in each suit for the formal delivery of the papers to the Commissioners. In the matter of the number of separate suits filed simultaneously a new local rec- ord was made. . xpressed remedy, STORE BURGLAR SLAIN. Pcliceman Wounds Fellow Officer in Fight With Thieves. CHICAGO, October 31 (P).—Police slew one negro burglar, captured another and themselves suffercd one casualty when they closed in on the two men who were robbing a grocery store. The dead man was iden William MeDermott; his as Jess Hickman. O'Day was shot in the leg by a fellow officer when the two opened fire on McDermott from opposite sides of the el as companion | store. Zoo Giraffes Fed “Bottlled Sunshine” To Store Energy for Winter Indoors evidenced by swelling about the knees, an unsteady gait and certain psycho- logical reactions. He is being given special treatment in the hope that he ecan be pulled through the Winter sueccessfully. ‘The effect of iliness, according to Dr. William M. Mann, director of the Zoo, is evidenced in the animal's sus- picion of the keepers who come to feed him. Once he would trot up to them and allow his neck to be stroked. Now he retreats suspiciously. ‘The female giraffe, Dot, has shown no bad effects as yet. The only evening paper in Washington with the Associated Pres news Saturday's (‘Irflhllon, 98,059 110,319 TWO CENTS. MELLON PROPOSES S2000000 LIMT FOR TAX REDUCTION Recommendation Made at Hearing of Hc>e Ways and Mears Committee. tion, FIGURE IS LOWER THAN PREVIOUSLY ESTIMATED Would Cut Corporatien Levy and Revise Surtax on $16,000 to $90,000 Incomes. By the Associated Pres Limitation of the prospective tax reduction to approximately $225,000,- 000—a Jower fizure even than previ- ously estimated—was recommended today by Seeretary Mellon at the opening of the tax hearings by the House 8 and means committee. The t. eduction program he sub- mitted follows: 1. Reduction of the corporation tax from 133 per cent to 12 per cent. 2. Extending permission to corpora- ions with net income of $25,000 or less. and with not more than 10 stock- holders, to file returns and pay the tax as partnership or corporations at of the surtax rates individual incomes be- tween §16,000 and $90,000, 4. Repeal of the estate tax. Exemption from taxation of the income derived from American bank- ers' acceptances held by foreign cen- tral banks of issue. Would Keep Auto Tax. Contr; to expectations, the Secre- tary opposed any change whatever in the remaining war-time excite and miscellaneous taxes. He argued at length for the retention of the present 3 per cent levy on automobiles and the 10 per cent tax on admissions apply- ing to tickets selling for more than i5 cents, on the ground that these duties and the excise tax on tobaceo should be kept “in the interest of a well balanced tax system. “Unless we are to rely clu he said, “on direct taxes pa a few and are prepared to see our National Government supported, not by the entire body of our citizens, hut by a limited class, these are the kinds of taxes which should be re- tained.” The administration program con- templated no further reductions in the normal income rates applying to in- dividuals, nor any further increase in the exemptions allowed individuals, which propositions have been the bat- tle grounds of past revenue legisla- tive fights. Nor is any reduction along these ines mow planned by congres- sional leaders. 255 Explains Previous Estimates. uing for the limitation of the cut to $225,000,000 In the face of a surplus of $635,000,000 for the last fiscal year and a prospective mare gin of §455,000,000 for this year, Mr. Mellon insisted that the basis for the reduction must be the surplus avail- able in the fiscal year 192 said, is estimated at $274,000,000. The Secretary frankly admitted that “for a number of years past the | Treasury estimates have under- estimated revenue that was later realized” and recognized that the ar- gument may he made again that the estimated surplus for 1929 is too low in view of the big margins of last | year and this year. " “The answer surpluses wel almost ex. * he said, “that the in 1927 and this fiscal year in the main due to certain re- sources which cannot be awvailable in 1929, since by that time they will have been exhausted. No Evidence of Increase. “In so far as current revenue is con- cerned, it should be noted that the Tre Y estimate that the same re- will be available in 1929 as 28, and as were actually col- lected in 1927. “There is no evidence available to justify the assumption that they will be larger. There are certain definite indications that they may be smaller, but the department hopes that these unfavorable factors will be offset by the normal growth of the country.” Anticipating the demands which will be made for larger reductions on the grounds that the estimates of the surplus for 9 are too low in view of the fact that past estimates have always been low, the Secretary denied that the underestimates in the past were the result of “deliberate intention or poli “Every effort to avoid a repetition of this result,” he said, “has been made in preparation of the estimates here presented. It would be unwar. ranted and unwise to assume that in the present estimates there is any concealed surplus. In these figures the Treasury has not consclously, nor as a matter of policy, played safe. Figures Called Reliable. f tax reductions are made or ap- propriations voted on the assuiaption the present fizu undersiste probe ible future receipts, responsibility for such reductions or _appropriations must be assumed by those who adve- cate them. The Treasury has placed the probable receipt figures comj pendable forecas careful and di tion could secure, “As far as expenditures are con- cerned, the estimates have bYeen fur- nished by the Bureau of the Rudget. It should he remembered that esti- mates do not include an exp=nditures that n be incurred by reason of new legislation. The ‘I'reasury be- lieves that tax reduction should rot cess of appruxi- 000,000, receipts and expendi- leulated to be approxi- mately the same for this year anJ next, the differences between the estimated surplus of $445,000,009 for this year and $274,000,000 for next year was uc- counted for largely by an estimated reduction of 000,000 next year in Spes receipts, including those back tax collections, over those received this year. The loss in revenue which would be ccasioned by each of the proposals r ll’on\mem,lc(l was estimated as follows: Reduction While no tures were ¢ of corporation tax— New classification for corporations with income of 000 and less, $30,~ 000,000 to $35,000,000. Revision of surtax rates, $50,000,000. Repeael of the estate tax, $7,000,000,