Evening Star Newspaper, June 2, 1931, Page 1

WEATHER. (U. 8. Weather Bureau Forecast). Fair tonight and tomorrow; warmer tomorrow. ‘Temperatures—Highest, 68, at noon today; lowest, 58, at 3 Full report on page Closing N. Y. Markets, am. today. 9. Pages 10, 11, 12 No. 31,808, Entered as second class matter Washington, C. D. post office, GASPARRI TAKES | ROLE OF MEDIATOR, IN TALIA GRS Cardinal Laying Groundwork for Negotiations to Avert New Rift. POPE HAS HAD NO WORD IN REPLY TO PROTEST TU. S. Interests Still Involved as Duce Has Failed as Yet to Act on K. of C. Playgrounds. Bv the Associated Pre ROME. June 2.—Cardinal Pietro Gas- | parri, who as papal secretary of state | signed the Lateran treaty in 1929, is believed to have taken a hand in the new crisis in relations between the Vat- ican and the Italian government, which has resulted in dissoluiion by Premier Mussolini of yall the Catholic youth clubs in Italy. It is understood that the cardinal is laving the groundwork for official nego- tiations to prevent what appears to be & new parting of the ways between the church and the state. He is one of those, it is said, who regard this situa- tion as one of the gravest in recent times and threatening both the Lateran treaty and the concordat between Rome and the Holy See. American interests are ctill involved, for permission ¢xtended unofficially yes- terday for reopening of playgrounds op- erated by the American Knights of Co- lumbus has not been approved by the premier. Papal Count Edward Hearn, in charge of the playgrounds already nas filed a protcst at the American em- bassy and now he will urge the Am- | ‘bassador to file his own with the Italian | government. | Pont Still Awaits Reply. At noon today the Pontiff had re- eeived no word from the Italian govern- ment in reply to his note of protest regarding the dissolution of the Catholic societies. Officially he is still in the cark, and actually, it is said, he is ignorant of Mussolini’s real intentions. The decrez of dissolution, signed by t:2 premier on Sunday night, which vas the Pope's seventy-fourth birthday, ¥id not mention Catholic organizations ifically, but directed dissolution of @'l socicties not actually connected with ths Fascist party. The Vatican insists that the dissolu- | violated the concordat between the governments, but it _is expected “at until there is an official Italian t~tament the Vaticen state department v refra‘n from action. ‘*h's is the forty-ninth anniversary of the death of Garibaldi, whose troops | f5ught the papal army and were instru mental in making the Pope a “prisoner” | in the Vatican for 59 years. i Fascist Contention Denied. The unofficial conversations in which | Cardinal Gasparri is said to be par-| ticipating were undertaken, it is be-| lieved, because the statesman is able to talk to Mussolini with some frankncss, partly as a result of their negotiations concerning the Lateran treaty. Also, there is a sort of deadlock in the diplo- matic channels, for neither the Pope ror Mussolini has received the ac- . credited representatives of the other's government for a month or more. The Vatican holds that the concordat was clearly violated by Il Duce’s action, inasmuch = as Article 43 expressly recognizes all organizations affiliated witn the Catholic Action Society. It is further stipulated, however, that they must be purely religious in purpose and free from political operations. The Fascist contention is that the Catholic clubs have become political. but the Vatican strongly denies this and has emphasized their religious charac- ter by putting them in dirct charge of bishops. The real seriousness of the situation arises from the fact that the Pope regards the Latern treaty and the concordat as inseparable, while Mussolini contends one may stand with- out the other. May Recall Papal Nuncio. The Lateran treaty. signed on Febru- | ary 11, 1929, re-establisned the papal | state under the sovereignty of the Pope. | "The accompanying concordat, signed at the same time, defincd the relationship -between the church and the Italian government. : Whatever action the church may take will be carried out slowly, begin- ning, possibly, with the recail of the | papal nuncio to Rome. Vatican au-| thorities believe that when Mussolini | realizes that the Pope is prepared m; g0 to any limits he will think twice be= fore allowing the concordat to, fall. Much of Fascism's strength is founded on its success in harmonizing the church and state and in satisfying the people’s desire to remain within the ! church and to have freedom for all ns; ceremonies. One of the Pope's first moves today was to withdraw his delegate from the ‘BLUEBEARD’ WIDOW’S SIXTH MATE MISSING Another Husband Added to List| of Woman Suspected of Poisoning 19. i By the Associated Press. CHICAGO, June 2.—A sixth husband had been added today to the matri- monial Jist of Mrs. Margaret Summers, the middle-aged widow held in th2 county jail on charges of poisoning four persons. He; police said, was Warren J. Mer- ret, former taxi driver and night watch- man. He was married to Mrs. Summers six years ago, following the death of her “fourth husband, Stanley Korzen. He left her to marry a 16-year-old girl, Mrs. Summers’ foster daughter, Mrs. Victor Ritti, told police. Police began to investigate reports that Merret had died, but gathered lit- tle information from Mrs. Ritti. “I haven't the slightest idea how he died,” Mrs Ritti said. “I know he went away with the girl, and a couple of years afterward, when I asked moth- er about him, she said he was dead.” Mrs. Summers is suspected of poison- ing 19 persons, including several cf her . husbands, for their insurance. State's Attorney John A. Swanson said the investigation would not reach the 'rlnt Jury until late this week. l Al Th WASHINGTON, D. C., TUESDAY, JUNE RCRAFT GUN PLANS FOUND: | WERE IN HANDS OF ATTORNEY Ag ents Reveal That Company Officials Forgot About Sending Drawings to, Patent Lawyer’s Office. Coples of the secret .50-caliber anti- aircraft machine gun plans recently purchased by the Ordnance Bureau, Navy Dcpartment, and reported stolen yesterday from a safe of the Auts- matic Arms Corporation, the designers, have been returned to the company, the Department of Justice and the Naval Intelligence Bureau announced today. Company officials at their office, 302 Albee Buiiding, refused to discuss how the plans were returned, but investi- gating agents let it be known that the plans were never stolen, but had been in the hands cf the company's patent attorney all the time. Agents said the officials informed them that they “had forgotten about having sent the plans | to_the attorney’s office.’ District police yesterday were sum- moned to the Albee Building after Robert F. Hudson, former Government arms expert and an officlal of the Automatic Arms Corporation, had re- ported to ‘them that the safe in his office had been opened Sunday night and the plans removed. He informed police -that the documents were of the “greatest value to the Government’ and the Department of Justice had been requested to broadcast an alarm to prevent the drawings from being removed from the country. Police examined the safe and came to the conclusion that if the strong box had really been opened, it was the vork of a combination dial expert. ey said they noticed the safe walls and door had been wiped clean. Inasmuch as the plans were the prop- erty of the Government, District police withdrew from the case and four agents of the Department of Justice and the | Naval Intelligence took charge. During the afterroon various employes were (Continued on Page 2, Cclumn 3.) BROCKLYN DOCTOR MURDERED I HOVE Former Employe Questioned and Another Sought in [_Jeath Mystery. By the Associated Press. NEW YORK. June 2.—Dr. Edward Deely, prominent Brooklyn spe- cialist, was found stabbed and battered to death today in a bed room of his home. Declaring the killing to be a murder for revenge, Police Commissioner Ed- ward P. Mulrooney broadcast a general alarm for the apprehension of two Fili- pino servants, one of whom was picked up for questioning a short time later. Mulrooney made it plain that the man, Scnika Simplicio, a chauffeur and chef, was not charged with the crime, but was merely taken into custody for questioning. Simplicio and the other domestic, known to the police only as George, were dismissed about a week ago for “joyriding” in the doctor’s au- tomobile, detectives said. Denied His Dismissal. Simplicio, who was found at the home of a broker with whom he had obtained a.new job, denied he had been dismissed by his former employer. The doctor, Who was an eye, car, nose and throat specialist, apparently Tosc from bed to meet the intruder and was killed. One side of . his head was smashed in, there were eight stab wounds In his body and a length of picture wire about his head. A large mahogany ball had been bro- ken from the foot of the old-fashioned four-poster bed. Police at first thought | it was used to club the physician, but later decided. it was merely broken from the bed in the struggle. A medi- cal examiner said the killer apparently had smashed his victim's skull by pounding his head against the floor. Servants Undisturbed. Arthur Lindars and his wife, Norma, servants, slept on the floor above the doctor. They said they slept through the night undisturbed. The Lindars had been in Dr. Deely’s employ less than a week. They retired carly last night to their room on the top floor, leaving the dcctor, they thought, in his living room on the sec- ond floor. His room was in disorder, with the chair overturned, a t-lephone beside the bed knocked over and curtains at cne window torn down. Police sald the room was so heavily c2rpeted, however, that persons sleeping directly overhead might have heard nothing. The murder was discovered when Mrs Lindars went to the doctor’s room to call him for breakfast. The door was locked and there was no answer when she and her husband pounded on it. Finally Lindars called a policeman. An ambulance surzeon said the doctor had been dead for some time. Dr. Deely was about 54 vears old and had been practicing in the Columbia Hcights section of Brooklyn, overlooking lower Manhattan and New York Har- bor, for 20 years. The district has for many years been the home of conserv- 2tiva and wealthy Brooklyn families. He was a bachelor. 2 NET FINALS CALLED OFF Mangan-Mitchell Local Match De- layed by Wet Court. Because of a wet court. the final | match in the men's singles for the City of Washington tennis championskip, scheduled this afiernoon on the Rock Creck courts b2tween Tom Mangan and Dooley Mitchell, was called off. EARHART HOP DELAYED NORTH PLATTE, Nebr., June 2 (#), —Amellia Earhirt Putnam today was delayed cn her trip from New York to Los Angeles, while machanics overhaul- ed- the motor on her autogyro. She planned to take off for Denver via Sid- ney, Nebr., and Cheyenne. She expects to stop at Reno and cther Western citles. George | PLAN CLEAN SWEP " OF OLD BULDINGS South Side of Pennsylvania Avenue to Be Razed in U. S. Program. Plans for a clean sweep of the south | | side of Pennsylvania avenue from the | Capitol to the Treasury, with destruc- |tion of all old commercial structures along this hisioric parade route before the Washington Bicentennial celebra- | tion next year, were disclosed today by | the Treasury Department. | This campaign of demolition will obliterate from the famous strect not | only the old structures located in the so-called Fedcral triangle, between Fif- teenth and Sixth streets, but will wipe | out two more blocks known as reserva- tions A and B, located between Sixth |and Third strects. These reservations | | are to be turned into public park and | included in the Mall. Purchase Is Obstacle. | Success of such a sweeping program of demolition depends somewhat upon the progress made in obtaining prop- jerty either by process of purchase or | condemnation. But the Government | has found that condemnation under the |new law is much speedier. Land can | be acquired, through the process of | filing a “declaration of taking,” leaving much detail of negotiations as to the cxact price of land to be carried on |after the Government has taken title. Virtually all of the Federal triangle | front on Pennsylvania avenue has been | acquired, with "the exception of some | 1and between Sixth and Seventh streets, where the new Coast Guard Building is to be located. Large portions of res- | ervations A and B, between Sixth street and the Botanic Gardens at Third strect have already been purchased. | This work will be pushed forward as | rapidly as possible in order to gtt the |new Washington ready for the enor- mous crowds expected to pour into the National Capital for the Bicentennial next year. Plan Wide Area. As a_matter of fact, it is the hope of the Treasury to have everything be- tween Pennsylvania avenue and the Mall, between the Capitol and Fifteenth street cleared away, so that Constitu- tion avenue also may give some promise of what it will be in the future—the great new ceremonial avenue of the future. One of the striking changes to be wrought in the new Constitutior av nhue is a new entrance into Pennsyl- vania avenue through reservation B, between Fourth street and Sixth street. At the present time Constitution avenue runs into a dead end at Sixth street, . but buildings there are to be torn out and the avenue cut through, wi | straight into Pennsylvania avenuc. | _Spezding _the building program for | (Continued on Page 2, Column 4.) |AUTO TAX LEVIES RISE | 586 PCT. IN 10 YEARS Gotham Club Official Points Out Increase in Burden Faster Than Road Spending. | By the Associated Press. NEW YORK, June 2—The annual tax levy on the car owners of the country increased 586 per cent in the 10-year period between 1921 and 1931, T. M. Hentges, vice president of the New York Automobile Club, said today. Mr. Hentges pointed out that in the same period car registration in the United States increased 153.5 per cent and expenditures on highways of all kinds 50.9 per cent. “In other words,” he said, “the tax burden on car owners, exclusive of personal property taxes, has increased nearly 12 times as fast as highway ex- penditures and almost four times as fast as the gain in cér registration.” Mr Hentges suggested an overhauling lof the whole tax structure affecting car owners. KISSING BARRED TO MIDDIES DURING GRADUATION WEEK Old Bussing Custom Dropped From Exercise—Caress Excluded From Annufl Ring Dance. By the Associated Press. ANNAPOLIS, Md.,, June 2—A Kiss- less June week was announced today at the Navay Academy, where 441 grad- uates will be given diplomas Thursday, issioned 5 and most of them comm] signs in the Navy. When Miss Eloise Hanford of Syra- cuse, N. Y., presents the colors to Mid- Shipman Lieut. Norman Hall, also of Syracuse, tomorrow atfernoon there will be no kiss exchanged as in former years, it was announced by Comdr. D. B. Beary, aide to the superintendent. And tonight, for the first time, there will be no kissing as the couples at the annual ring dance of the new first class pass through the gigantic ring in the middle of the Luce Hall ball room floor. The orders were promulgated last year under the administration of Rear Admiral S. S. Robison, now retired, but most of them went into effect this year for the first time. % Another traditional ceremon: ing this year is that of *no more rivers,” formerly held about the base of the statue of Tecumseh. The - utun‘ midshipmen from time imme- morial have sung about the statue in celebration of no more examinations to pass and tossed their hats into the air. Social events occupied today's pro- gram and tomorrow a series of con- certs and A»ndu is scheduled. Thurs day the diplomas are to be awarded and the following day the two lower classes will sail for a European trip aboard the batleships Arkansas and - ‘Wyoming, now &b anchor. ¢ Foeni WITH SUNDAY MORNING EDITION FEDERAL UTILTY CONTROL IS URGED BY GV, PINGHD Governors” Parley Told Power Intrigues Menace Popular Government. ROOSEVELT ADVOCATES PLANNING SLUMP CURE New York Executive Sees Relief From Depression Federal Responsibility, By the Associated Press. FRENCH LICK, Ind, June 2.— Federal control of public utilities and governmental planning to prevent periods of economic depression were policies advocated today at the second session of the Annual Governors' Con- ference. Gov. Gifford Pinchot of Pennsylvania proposed that the public utilities be placed under Federal supervision. Gov. Franklin D. Roosevelt of New York made the suggestion that the Govern- ment, both State and National, take steps to alleviate economic distress. Avoided Reforestation. The Pennsylvania executive had been assigned a subject on reforestation, but instead he discussed utilities and their relation to politics. “The domination of public utilities in political affairs,” he said, “is a grave and imminent danger to government by the people.” Gov, Roosevelt did not depart so far from his assigned subject as did G: Pinchot, but at the outset of his ad-| dress on “Land Utilization and State Planning,” he said: “At a time when our country, in common with most of the rest of the world, is suffering from a severe dis- Iccation of economic progress, people naturally are asking properly questions about the future. Starving Amid Food. “It seems strange to them that with the capacities for production developed to the highest degree the world has ever seen there should come this severe de- pression, when many eager to work cannot find food for their families, while at the same time there is such a surplus of food supplies and otner necessities that those who are growing crops or manufacturing can find no markets.” The New York Governor expressed the belief that both State and National governments must accept the responsi- bility of remedying the situation “along definitely constructive, not passive lines.” The power of public utilities in politi- cal affairs is a grave and imminent dan- | ger to government by the people, Gov. Pinctot continued in his address. The power of the public utilities, he sald, is manifest in every political as- sembly from Congress to town meeting. Gov. Pinchot’s address was accepted in political circles as his bid for the Republican presidential nomination in 1932 Utility Power Strongest. “The strongest political pcwer in my own commonwealth is the power of the organized public utilities,” he continued. “And I venture there is hardly a single State where the pressure of public util- ity lobbyists upon the Legislature and the government is not known. “In Pennsylvania the Republican party is in power. do not dominate the Republican party, or rather the men and women of whom it is composed, but they own and oper- ate the party machinery. They control the State chairman, the national com- mitteeman, and other officlals are busily occupied in doing the will of the pub- lic utilities in defeating the will of the voters.” Not Party Question. ‘The speaker said this was not a mat- ter of good parties or bad parties, but of interests which use parties in their business. “If the Democratic party were in power in Pennsylvania I have no doubt its party machinery also would be controlled by the organized public utilities of the State,” he added. Gov. Pinchot traced the growth ‘of the electric industry, which started less than two generations ago, and now has a total investment of approximately $12,000,000,000. “Today, according to the Bureau of Applicd Economics, about 90 per cent of the total electric power generated in the United States is under the domina- tion and control of four major interests. And_these inter:sts working together harmoniously under a common policy and toward a common end—which is the milking ot the public. “Twenty-five years ago when I pre- dicted the coming of a unified electric pow<r trust, I was laughed six (Continued on Page 2, Column 5) PSYCHIATRIST LEADER URGES STERILIZATION Dr. Walter M. Engiiuh Advocates Policy tg Deal With 1,800,000 Feeble-Minded in U. S. By the Associated Press. NORONTO, Ontario, June 2.—Dr. Walter M. English today called upon the American Psychiatric Association, of which h: is president, to approve sterilization to decrease the percentage (1!t feeble-minded persons in the popu- lation. Citing statistics to show that 1,800,- 000 persons in the United States have the mentality of children below the age of 9, he declared feeble-mindedness was increasing alarmingly in all civ- ilized countries. Of the 1,800,000 in the United States, he said, 600,000 are of a-mental age below 7 and “these should have con- stant, supervision throughout their ves.” He said “the great majority of cases of mental disease have one thing mon—! are the result of at the eighty-seventh an- his association. Four Flyers Killed. METZ, France, June 2 (#).—Four| Fyench army flyers were killed when & bombing plane crashed to earth last night about 25 kilometers southeast of he ‘The public utilities ! in com- heredity.” who resides in Brockville, o “y, \ My IN THE DEMOCRATIC PROPAGATING GARDE g Sfar. 1931—THIRTY-SIX: PAGES. ##%#% “THRILLING! g7l R Associated service. ) Means Associated The only evening paper in Washington with the Press news Yesterday’s Circulation, 115,945 Press. TWO CENTS. e ¥ HARTMAN DENIES " IMPROPER SERVICE 'Says Work for Railroad: While With 1. C. C. Was Known and Aboveboard. Harleigh H. Hartman. vice chairman | of the Public Utilities Commission, to- day branded a published account of his | relationship with the raflroad inter- | ests while serving on the legal staff of the Interstate Commerce Commission as an effort “to discover a past trans- | action in an attempt to defeat” Senate | confirmation of his recent reappoint- { ment as a member of the commissicn. | According to the published data. | Hartman accepted a fee and retainer {in 1925 from railroad nterests while still employed by the Iu: e Cim- { merce Commission In & c2se in which the commission was opposing the rail- road group retaining him. It was said Hartman in 1925 was paid $10,000 by a railroad valuation engineer for the experience and data in track valuation he acquired as a lawyer for the commission. While thus retained, | he continued to work for the commis- sion in a valuation case involving the | Great Northern Railroad. Alleged correspondence between Hart- | man and Charles Hansel, the man who ' retained him for# the railroads. gave | some details of the business relation- ship between them. Explains His Position. In his statement today Mr. Hartman | admitted that he accepted a fee from Hansel, head of a utilities engineering firm, while with the Interstate merce Commission, but said the com- mission knew of the arrangement. He also declared that his dual employment did not cause him to slight either client and pointed out that the Great Northern case was probably more stren- uously prosecuted than any other valu- ation case tried before the Interstate Commerce Commission. Mr. Hatrman's statement follows: “The newspaper article seems merely | ! t0 be an effort to discover a past trans- action in an attempt to defeat confir-| fon. | “It is a fact that I accepted the fee | laying and surfacing data which neces- | sarily involved the projects used by both | the commission and the railroads. The work was merely a cost analysis of those projects to iron out differences in the way in which they were con- strued by the two parties. “On learning of the possibility of this outside employment, I at once notified the commission of its nature and of my intent to resign and accept it. My resignation was accepted on one month’s notice. It is a fact that I was at that time asked by the commission to con- tinue in its service as special counsel to brief and argue the Great Northern case | for the commission. At the time, I was so retained it was known to the com- mission that I was to be employed by Mr. Hansel, and the salary I was to re- ceive from Mr. Hansel also was known ito the commission. Likewise, {k to Mr. Hansel that I | Summer Shopping There are many offerings in today's advertisements that have a special appeal to people seeking real bar- gains. I " Among the attractive of- ferings are: Summer Furniture New Summer Handbags Gay New Frock: Crepe and Chiffon Dresses 5“& amuL ‘acation Luggage Lawn Mowers and Mixed Paints ‘Wedding Gifts Oriental Rugs Hot Weather Suits for Men Summer Electric tors Yesterday’s Advertising (Local Dispiay) - The Evening Star. . .34,06.3 2d Newspaper. .. ...14,646 3d Newspaper...... 6,807 4th Newspaper..... 6,135 5th Newspaper. . 3,432 from Charles Hansel to work up track | y Husband AtBridge, Wife Wins Divorce and Ukulele By the Associated Press. DETROIT, June 2.—There may be something in the hypothesis that connubial harmony is bet- ter preserved by women who se- lect bridge partners other than their husbands. | When Mrs. Evelyn Hefley Fahy | | overbid her husband in a bridge game he struck her, she charged | in court. She also said he de- ducted the costs of their enter- | | tainment from the table allow- ance. | With a decree, a little cash | | and some promises, Judge Theo- dore J. Richter awarded her a much-strummed ukulele. IMACARTHUR SAYS CLERGY BALK LAWS General Sees Anti-Arms Stand as Repudiation of Citizen Duty. By the Associated Press Gen. Douglas MacArthur, staff of the Army, said in a letter to- day that the open opposition by clergy- | men to bearing arms in war “appar- ently stamps the clergyman as a lead- ing ‘exponent of law violation at indi- | vidual pleasure.” | Replying to a request by Kirby Page,| editor of the magazine, the World To- | morrow, for his opinion Tegarding the cx- pressions of clergymen on whether they would bear arms in war, the gen- cral pointed out that the questions of | war and peace rested with Congress and | any declaration of war voiced the will | of the people. “That men who wear the cloth of th> | church should openly defend repudia- | tion of the laws of the land with the | necessary implications and ramifications arising from such a genaral attitude to- | ard our statutes seems almcst unbe- lievable,” he said. “Anomalous as seems, it apparently stamps the cle man as a leading exponent of law Vi lation at individual pleasure.” Expresses Surprise. “My predominant feeling with refer- to the majority of the replies re- ved by your paper from 19,372 clergy- men is that of surprise,” the gencral said. “Surprise at the knowlcdge that 50 many of the clergymen of our coun chief of | | try have placed themsalves on record as | repudiatng in advance the constitu- | tional obligations that will fall upon | them equally with all other eleme: of our citizenship in supporting this country in case of need. “To exercise privilege without assum- ing attendant responsibility and obliga tion is to occupy a position of license. | a_position apparently sought by men who do not hesitate to avail themselves | of the privileges conferred by our democracy upon its citizens, but who in effect proclaim their willingness to | see this Nation perish rather than par- | ticipate in its defense.” | The gencral added that the clergy. men’s sentiments were injecting th church into the affairs of state and| “endangering the very principle that they claim to uphold.” Pastors Free of Arms. The terms of the Geneva convention | provided, he added. that chaplains were non-ccmbatants and he expressed “sur- | prise” that some had lost sight of the | fact that in none of America’s past | mrs had clergymen been required to r arms. “The fact that our Citizens’ Military Training Camps,” the general said in conclusion, ‘“are over-subscribed long before the opening of the camps, com- forts me that patriotism is still a domi- nant power in our land. * * * “I confidently believe that a red-| blooded and virile humanity which loves peace devotedly, but is willing to die in the defense of the right, is Christian from center to circumference and will continue to be dominant in the future as in the past.” INGOME TAX BILL | sonal property would result in the peo- | | be STUDED BY GROLP Proposal Is for Substitute Levy to Raise Revenue 25 Per Cent. BY J. A. O'LEARY. Substitution of a local income tax for the present tax on intangible per- ple of the District paying several hun-| dred thousand dollars more than they | now pay on intangibles under one plan of income tax which has been pre- pared by request for the consideration of the congressional committee inquir- ing into fiscal relations and local tax- ation. Nothing definite has been determined t as to revisions in the local tax tem, but this has been men:'~ned | with other possible changes likely to be debated, and local officials, at the request of the committee, have been gathering data and considering the effects of the various possibilities. Tentative Schedule Set Up. | It is understood that if Congress | should consider an income tax as a substitute for the intangible tax, local experts consulted would prefer come tax rates graduated substantially as follows: On net income up to $10.- 000, a rate of 1 per cent; above $10,000, but not over $50,000, 2 per cent; in ex- cess of $50.000. 3 per cent. | For the fiscal year 1930 the District collected from the existing tax on in- | tangible personal property a total of $2,725.941. Local officials estimate that | an income tax in place of the intangible levy would take from District taxpayers | somewhere between 10 and 25 per cent | more revenue. On a conservative esti- mate, therefore, it would bring in more than_ $3,000,000. The present intangible tax law places | a tax of five-tenths of 1 per cent, or §5 per $1,000, on moneys and credits, including stocks and bonds, with cer-! tain exceptions and exemptions. One provision of the present law is that! savings deposits of individuals not in| excess of $500 deposited in banks, trust | companies or building associations, sub- ject to notice of withdrawal and not subject to check, are exempt. Exemptions Are Problem. | An important phase of a local in. | come tax law, aside from the rate of | tax, Is the question of what exemptions | should be made and where deductions | should be allowed from gross income in_determining the net income to be | taxed. It is understood that if an_ income tax is proposed in Congress the local authorities would suggest the same personal _exemptions carried in the Federal income tax law, namely: For 'married persons, $3.500. with $400 allowance for each child; for single persons, or married persons not living together, $1.500. 1 They wouid also recommend the usual | deduction for contributions made during the year for religious, charitable, edu- cational or benevolent purposes. Another deduction which would be suggested would be the amount of taxes paid to the United States or the Dis- trict, except taxes for betterments as- | essed and those against local benefits hat increase the value of the property. Would Free Property Repairs. Money spent for repairs to real estate, in reasonable amount, is another item of deductiom to be considered in work- ing out a local income tax. 2 Local officials also would favor de= duction of interest on unsecured in- debtedness. On secured indebtedgess, one proposal being considered is to al- low deduction of interest to the extent that the security was taxed as real or personal property. With regard to interest on money de- posited in building associations, trust companies or savings banks, not subject to check, the suggestion has been ad- vanced that where the amount on de- posit is not more than $1,000, it should exempt, but the income from amounts above $1,000 would be taxable under an income tax. i ion_suggested for consid- " (Continued on Page 2, Column 1) DAWES TERMS U. S. DIPLOMACY EASY ON BRAIN, HELL ON FEET| Envoy to London Spikes Resignation Talk and Confers Here With Stimson. By the Assoclated Press. The American Ambassador to the Court of St. James summarized today his opinion of American diplomacy as “casy on the brain, but hell on the his hat back on his head, Dawes sat down on a con- Total iNiweas 31,020 Am! venient State Department table and an end to Tumors he g;nhllm wmm!lfll After a brief conference with Secre- tary Stimson the Ambassador declined to comment publicly on international uestions, but. entertained a group of riends with his latest after-dinner stories from England. The Ambassador arrived today and is a guest at the White House. He_will remain until Thursday. return- ing then to Chicago in connection with the World's Fair. He will sail for Eug- land on the Ile de France June 34, CANADIAN TARIF AROUSES DIVIDED OPINION IN"0.S. Democrats See Retaliation Against Duties Imposed by Congress. G. 0. P. THINKS BUDGET NEEDS FORCED CHANGES Republicans Discount Contention That U. S. Rates Brought Canadian Hikes. BY G. GOULD LINCOLN, Increases in the Canadian tariff duties, announced by Premier Bennett in his annual budget message to the House of Commons in Ottawa yester day were interpreted here by Demo- cratic spokesmen as a measure of re- taliation against the United States be- cause of the Smoot-Hawley tariff act. Republicans, on the other hand, viewed the Canadian increases in tariff duties as an effort on the part of Canada to protect its own labor and to give work to the unemployed, and Also as a measure to raise revenue in view of the $75.000,000 deficit which confronts the government of Canada because of a shrinkage of receipts. At the State Department no state- ment was forthcoming in regard to the new Canadian tariff duti es. Tk department is awaiting an official r;s rp;:(v)r;‘ I.XA‘ regard to the changed tariffs T merican Minister Ha - Nider at Ottawa. TG More Time Needed. The department will study changes, it is said, with a vxcu“d'm ;?’ termining the course the United States will follow. if any, in the way of diplo- matic representations. Usually when rates are considered discriminatory |against American products. representa- tions are made against such duties. This is the second increase in the customs made by the Capadian govern- ment since the Smoot-Hawley act be- came a law. The Conservatives in Canada have favored the protective system and the present Conservative government came into power after the passage of the Smoot-Hawley tariff law here, largely. it is said. on the tariff is- sue. The first increase in the tariff rates made by 'Canada came after the election of the present government and covered something like 200 items. Harrison Blames U. S. Senator Paf Harrison of Mississij the ranking Democratic member of Ty Senate Finance Committee, Which Niei- dles tariff legislation, made the tariff increases announced by Canada the vehicle of a scathing agack upon the Republicans. who put through the Smoot-Hawley tariff act. . Hp said: The action’ of Canada yesterday in again raising tariff duties was no sur- prise. Throughout the long tariff con- troversy we insisted that the greedy action of those who directed_the con- struction of the rates would ‘inevitably lead to tariff retaliatign and reprisals. Day by day we pleadeg with the ad- inistration to exert its leadership and restrain the avaricious hand of certain special interests which were demanding and receiving at the hapds of Congress consciousless and unjustified tariff ine creases. -Our appeals went unanswered. The spineless inaction of those who di- rected the Government's affairs is the most important factor among other causes for the present economic collapse. Predicts Disaster. “Canada’s action yesterday wi further affect legitimate American u’alf dustry. The President and the Repub- lican leadership in Congress in blindly pursuing such a tariff policy, Y evitable effects of which w e bound to result in disaster to our trade and com- merce, are guilty of culpable negligence. The damage already wrought is so great that it wil take time to work a cure. But one thing is sure, that if any per- manent improvement comes it must come through a prudent lowering of unjustified tariff dutics in some effort exert2d upon our part to rehabilitate ourselyes in the feeling and respeet of foreign governments. Every effort was made upon the part of the Democratic delegations in Congress to prevent the tatiff wrongs and every effort will be made to right them. It will be done in an orderly way with the assistance of uninfiuenced and per fact-finding body." Hperrve e presentative Ramseyer of v Republican, who has bech put foroerd in some quarters as a candidate for the | Republican nomination for Speaker in the coming Congress. took a very dif- ferent view of the Canadian tarié. Ramseyer States View. “Obviously,” said Mr. Ramseyer, “the purpose of the Canadian government in raising the tariff rates is first to take care of. unemployment in Canada and second to help the Canadian gov- ernment meet its expenses and wipe (Continued on Page 2, Column 1) WRECK OF SHIP LAID TO CREW DRINKING 497 Passengers Saved From S. §. Harvard, Aground Off Point Arguello. By the Associated Press. LOS ANGELES, June 3.—As tugs jockeyed with tides today to save the steamship Harvard, wrecked Saturday off Point Arguello, investigations into the cause of the mishap centered about the condition of the weather and the crew. Capt. S. A. Kennedy, in charge of an inquiry here, said he would investi- gate reports of the use of liquor by the crew and that the weather was clear at the time. Official reports said it went aground in a blinding fog. Capt. A. M. Wennerlund of the freighter San Anselmo, which aided in the transfer of the 497 passengers, testified at a Federal hearing in San Francisco that reports ai vard’s crew were “drunk’ founded. He said, however, thi stewards, who had no part in naviga- tion of the vessel, were “as drunk as any man could get.” A survey showed damage above the Harvard’s waterline which salvage oper- ators cstimated at £200,000 A strong rip tide ing = gavenu:‘ d&en from inspect-