Evening Star Newspaper, December 9, 1931, Page 1

WEATHER. (U. 8. Westher Bureau orecast.) Rain tonight and probably tomorzow morning; slowly rising temperature; fresh east shifting to southwesi winds Temperatures—Highest, today; lowest, 28, at 4 37, at noon m. today. Full report on page 9. Closing N.Y. Markets, Pages13,14 & 15 o. 31,998, Entered as second class matter post office, Washington, - D. C he Foening Star. WASHINGTON, D. C, WEDNESDAY, DECEMBER 9, 1931—FORTY-EIGHT PAGES. ss# e BROAD, 2-YEAR TAX RAISE IS URGED BY MELLON AS HOOVER SEES BIG DEFICIT Asks New Levies ' Be Effective at Once. LUXURIES WOULD BE PUT ON LIST Lower Exemptions to Hit Incomes of 1,700.000. l By the Associated Press. ‘The administration tax-increase plan hits almost everybody and seeks to apply on this year's in- | comes. | Secretary Mellon forwarded it to Congress today, calling for in-| creased rates on personal and cor- | poration incomes, inheritances, to- bacco and capital stock sales. House First Ti_me In Years Subjects Message to Debate Huddleston Calls Presi- dent’s Survey “Confus- | ing and Muddled.” | By the Associated Press For the first time in many a presidential message was put before the House today to withstand the | buffeting of full and free debate upon its Tecommendations. The first speaker, one of the Demo- cratic majority, called it “both con- fusing and muddled.” He was Representative Huddleston of Alabama, who started the debate after the budget message was read. He put relief uppermost in his remarks and said the President would loan to | bullding and loan associations and to | banks with frozen credit and ‘“has| ranted Germany & moratorium,” but to our own starving women and chil- dren he would not give a red cent. Huddleston's remarks were heard by a large number of Democrats and & small- er group of Republicans. | The Alabaman charged the President years | New levies would be imposed on | was more “interested in the pocketbooks automobiles, ‘radios, telephorre, | of the rich than in caring for the poor” | |and said “the state of the Union is telegraph and cable messages,| darned bad.” amusement tickets, checks and drafts and realty sales. Postal charges would be boosted. Exemptions from income taxes would be lowered to include 1,700,000 new individuals within Q(:'edera.l levy. the scope of th The &!fiu’y the President Hoover—recom- With $1,310,000,000 to be raised by it in the coming 18 months he termed the emergency.” Credit Depends on Taxes. “It must not be forgotten,” Mellon wrote, “that the very ability of the to borrow Now 1% per cent on net income up to $4,000, up to 2 per cent. Now paying 3 per cent on the second .¥84.000, up to 4 per cent. Paying 5 per cent on net income above $8,000, up to 6 per cent. Surtexes would start at 1 per cent "~ (Continued on Page 5, Colimn 1.) JOHNSON STARTS MORATORIUM FIGHT California Senator Requests In- quiry on Sgle of Foreign Secu- rities to U. 8. Investors. By fhe Associated Press DISTRITS BUDGET CUTTO THE BONETO AVOID RAISE IN TAX legislation necessary to meet “a real| $47,331,919 Total Includes $2,000,000 to Start Mu- nicipal Center. Since the money was to have come di- rect from the Federal , how- ever, leaving it out of the 1933 budget will have no effect on District taxation. | It will invclve merely a temporary | | change in the-financing of the con- struction of the Municipal Center. Work to Begin in 1933, ‘The appropriations recommended by the Budget Bureau for the Center fore- shadow actual construction of the foun- dations of the first, building of the mu- nicipal group during the 1933 fiscal year. . Of the 31,500,000 appropriated for Center construction during the current fiscal year it is expected that about $1,300,000 will be forward for use during 1933, and of the 1933 estimate of $1,600,000, not to ex- ceed $900,000 is made available for the acquisition of land and not to exceed $600,000 for grading and p.'h"lg of utilities The | streets and relocation of public | within or adjacent to the Center. A fight against the Hoover mora- | 8PPropriation recommended carries au. torium was begun in the Scnate today | jn by Senator Johnson, thority for the Commissioners to enter to a separate contract for the con- Republican, of | struction of the foundations of the first California, with introduction of a reso- | building during 1933 lution directiong an investigation into the sale of foreign securities in this country The Californian asked the Senate for | immediate adoption of the resolution, | but Senator Watson, the Republican leader, insisted that it go over a day in accordance with Senate rules. ‘The resolution then was sent to the Audit Committee and Johnson demaned that & report on it be submitted to- morTow. . President Hoover will send to Con- gress tomorrow the one-year morato- rium proposal for ratification. More | Confessed Killer than enough votes for its ratification have been pledged The Johnson resolution would direct the Senate Finance Committee to make | :ate Inqury inw the reiaiton of an benks and bankers to the b{ ign securities ket He told the Senate in the brief dis- cussfon that “this is essential in the consideration of legislation soon to be before us.” WILL VOTE ON DRY LAW | Finland to Act on Prohibition as Year Wanes. HELSINGPORS, Pinland, Dcc?mb'r‘ (A ~—On December 29 and 30 the The Diet passed on second reading todsy a measure calling for the refer- enfum. In its approved form the bill retains all three alternatives over the The $900,000 made available for pur- chase of land will bring the total to be spent for this purpose up to $6,900,000 Most of the land, including all of it Decessary for the first unit, has now been bought, and the remaining parcels (Continued on Page 11, Column 1.) MRS. LOWTHER GETS LIFE TERM IN SLAYING Escapes Gallows When Judge Orders Mercy for Her. By the Assoclated Press. WOOSTER, Ohio, December 9.—Mrs Julia Maude Lowiher, 24, confessad killer of Mrs. Clara Smith of Ashtabula, escaped death in the electric chair to- day when the jury returned a verdict of first-degree murder, with mercy. Judge Starn promptly sentenced Mrs. Lowther to life imprisonment in Marys- ville Reformatory. specific authority for the sppropriation. |1 $3.996,672,000 Is Set for U. S. 1933 Costs. SHORTAGE SEEN OVER $1,416,000,000 $365,000,000 Is Cut From Last Year Budget Total. BY WILL P. KENNEDY. President Hoover transmitted to Congress today his budget mes- sage, placing the total expendi- tures for the fiscal year ending June 30, 1933, at $3,996,672,450, as compared with $4,361,839,800 for the current fiscal year. Based on estimated receipts of $2,576,630,202, compared with re- ceipts of $2,238,878,800 for the cur- rent year, this budget anticipates an excess of expenditures over re- ceipts of $1,416,949,448, in spite of an estimated increase of more than $337,000,000 in receipts for next year, an estimated reduction in expenditures of more than $365,000,000 and an excess of trust fund receipts over trust fund ex- penditures of $3,192,800. How this estimated deficiency weuld be met by the two-year emergency tax program referred to in his message to Congress yesterday was explained in detail by the President, who recom- mended “an increase in taxes for definite limited period upon the gener: plan of taxation which existed under the revenue act of 1924, with such changes 2s may be appropriate in the light of altered conditions.” He ad- vises that “this increase shall be defi- nitely terminated in two years from next July.” Relief View Held. Such a program, he emphasized, has Cippe by cxperiente Witk simins equi e r legislation !or its systematic- and eco- nomic * . d:lall nite 3 mmfigflum Con- oct of e meomsales of e £ e | shows consid- erable decreases for practically all branches of the Government service. Conspicuous amorng the increases are approximately $125,000,000 for the Vet- erans’ Administration, but the President peints out that it is now known that additional mromtmm will be re- quired for current fiscal year of about $260,000,000, of which $200,000,- 000 is to meet obligations due to in- by | creased loan value of adfusted service certificates, so that the $125,000,000 in- crease in the budget becomes a net de- crease of approximately $135,000,000, Increase for Treasury, Another important increase is ap- proximately $25,000,000 for the Treas- butldings program, offset by a decrease of some $26,000,000 in the refund of ‘imf:xm revenue taxes erroneously col- ected. Secretary Mellon has prepared recom- mendations which he s ready to lay \MOVIE FIRM HITS RECEIVERSHIP PLEA Warner Bros. Officials Declare Com- plainant Not Stockholder, Deny Finance Trouble, By the Associated Press NEW YORK, December 9 Warner Bros. Pictures in a statement today salq it had received word th: for a receiver had been filed in the chancery court of Delaware by a per- |son claiming to be a stockholder of e Peomplal |, “The complainant is not - | holder of record of the c():’)npl:ly..fo::h statement said, “and from the informa- tion at hand it is apparent that there is nomerit to the claim and the allega- tons made in the petition are not true in fact. ‘“The basis of the petition 1s that the ition cannot otpocaiice ot Mmeet ita maturing untrue, as the - pany is paying all bills promptly, tak. Ing advantage of cash discounts. e company has no ba has large cash balances.” s ed ugh M. Morris, form Judge of Wilmington, has peen dee iy to represent the corporation. | s Tt 78-Year-0ld Sentenced. HAMMOND, Ind., December 9 () — At the age of 78, Tiil Bt ol le Kella of Indiana Prison for h | years, both liquor law. | today. Her year ago. t a petition er second term in two sentences for violating the She started a year's term husband died” in jall a |COLLEGE HEAD WON’ BUT STUDENT S osbjection of the Fundamental Law Com- | mittee, which recommended that the | By the Associated Press. Yote be restricted to retention or repeal. action on the meas- Final periiz: ure will be taken Saturday. Alreac dy there is an active campsign general | will be only a throughout the country and the there the proposal to beer, the bulk legalize | of the vided be- | aoon LARAMIE, Wyo. December 9 —An end teo a strike of University of Wycm- ing students is in prospect. Laramie business men have taken a hand in the controversy arising over Dr. A. G. ‘(?-:ne’l alleged T APOLOGIZE, TRIKE NEARS END { University of Wyoming President Stands by “Petting and Drinking” Remarks—Business Men Intervene. dance. Dr. Crane ordered expulsion of Lh; "{‘k“’\x body usiness men of the callege a conference, and early today ‘;«1;: m leaders decided to &coept the president's offers permitting the students to return to classes without punishment and withe remarks about ' out Joss of sche . > "tollowing the o oradi. ting drinking, Nine hundred of the 1 Teflections struck yesterday the refusal of Dr, The president, in refy sing to retract students e ert co-eds and escarts, 'ulmnubhhm 1o the board of trustess. The board before Congress at the proper time, un- | to the Indiana Woman's | A\ l l UNITED FARMERS SEE VICTORY FOR FEE IN CONGRESS “Big Three” Organizations Banish Discord for First Time. By the Associated Press CHICAGO, December 9.—Organized agriculture has mobilized for the first concentrated fight in Congress for the oldest of the farm relief measures, crop surplus control. The offensive was outlined today by leaders of the “big three” of farm groups—the American Farm Bureau, the National Farmers' Union and the e. ‘The demands, these leaders said, will be those of old—the export debenture and the equalization fee. But they will be made in harmony, free from the dis- cord of times past. Predict Victory. And the “big three,” united for the first time, claimed sufficient strength in the Senate and House for victory. Boon after the holiday recess, the farm leaders said, amendments w the agricultural marketing act will be of- fered in the Stnate and House to au- thorize the Federal Farm Board's use of both the fee and debenture principles. Under present plans, the amendments will be sponsored by Senator Charles McNary, Oregon, long an advocate of the fee, and Representative Marvin Jones, Texas, who has introduced de- benture legisiation in previous sessions Washington r;?rmnlulvu of the farm groups sald joint adoption and optional use of the fee and debenture m‘d be urged in the committee hear- Back Farm Board. The fee has always been the protege of the Farm Bureau snd the Farmers’ Unlon; the debenture, that of the | Grange. Mone of these groups support- ed the agricultural marketing nct of 1928 and all are opposed to the met's stablilization clause, Invoked by the Parm Board to peg the price of the last May crop of wheat Porces outside the “big three” elimi- nated the fee and debenturs prinoiples from the marxeting act to eliminate controversy and sssured speedy pase ;'f)l & three” it was disclosed, will offer no objections to the Farm Board's program, other than the stabilization operations, United by Conference, The Parm Bureau, at its annual meet- ing here, has contended the equalisation fee directly places the cost of surplis | control onto the producer by aesese i ment of the fee. ‘The Grange has maintatned that the debenbute, one half of the tariff rate, only makes the | tariff effective on farm commodities and in no way s A subsidy fof the growers The “harmony” program has resilted from frequent conferences in recent weeks beiween Edward A O'Neal, head of the Farm Bureau; 1, J Taher, mase- ter of the Grange, and John Blmpeon, who recently was re-elseted preaident of the Parmers’ Union It is their contention that the nature of the surplus will sulve the problem of which to use—the fée of the Heben ture, NAVAL FLYER HONORED Ensign Mnk',; ]fl,;wnr;u Birreseful | Landing on U. 8 8 Saratoga | sAN DIEGO, Calif | —Ensign willis Wells fiyer, was honored Monday abpard the | Deeember 8 (F) Naye] Reserce U made the 12,000th successful landing on the aireraft carrier’s deck. His pictute was hung in the pilot's room beside those of 11 other flyers who have eon- tributed to the total But yesterday Wells made a landing of a different sort. As he brought his ship down at the North Island Naval Air Station he crashed into a torpedo plane being taxied out to the runway by Lieut. H. E. Ballman. Neither Wells, whose home 1s in St. Louis, nor Ballman was injured, but their planes were put out of commission. 5.DAY WEEK ADOPTED Seaboard Alr Line Recelvers and Shopmen Accept Plan. RICHMOND, Va, December 5 (#) A new contract between the shoperafts and the recelvers of the Seaboard Alr Line Railway, providing “"1 Amnevn't.d(.ui week full-time employ: X ] “vmrlou Instead of 1,800, M‘“ mchmhz't"n!n BB e iics satd there woilld b 1o et hfi.“‘:fltu(,fldfl'fillfi' = chanics and mh“'w p ng scale 8. 8 Sarstoga as the pllot who | |Lenz Sees Theory Proven by Play In Bridge Match Believes System Is Dis- counted as He and Part- ner Inerease Lead. By the Associated Press. NEW YORK, December 9.—Sidney 8. Lenz, who is universally asknowl- edged to have no superior as a player of contract bridge, has sald that all bidding systems are fundamentally alike and that victory is 75 per cent ’plly and 25 per cent system. He and | his partner, Oswald Jacoby, believe the statement has been proved by the first 10 rubbers of their 150-rubber chal- lenge match with Mr. and Mrs. Ely Culbertson. (Continued on Page 4, Column 1.) CANNON BROKER'S |New York Newspaper Re- ports Goldhurst’s Release Canceled After Inquiry. By the Assoclated Press. NEW YORK, December 9.—The New York Evening Post states today it had learned that a parole granted on July 16 to Harry L. Goldhurst, bucket shop aperator and former financial advisor | of Bishop James Cannon, jr. has been | revoked. | Goldhurst was sentenced on October | 16, 1920, to five years in Federal prison |on charges of mail fraud and con- | spiracy. When his parole was an- nounced, Senator Carter Glass of Vir- ginia demanded that the Department of Justice review 'the case to deter- mine whether “a blameworthy agree- ment" had been entered into by offi- olala whereby Goldhurst would receive an early parole in exchange for plead- ing gullty, Attorney General Mitchell in Wash- ington announced on October .12 that the department ‘would review the case. According to the Post, Goldhurst was potified yesterday that his parole had been revoked Roon after Qoldhurst's parole was granted. the Post says, it became known | fhat 1t was recommended by Charles H. Tutlle, who was United States at- torney in this district when Goldhurst waa sentenced SANDINO PREPARES T0 STORM BIG CITY Muncada Leaves Managua and Prepares to Defend Leon Against Attack. By the Assoelated Press. MBEXICO OITY, December 8—-Dr Fedrn does Zepeda, forelgn representas | Hve of Gen. A. C. Sandino, Nicaraguan ineurgent leader, sald today President Moneada of Nicaragua has moved up from Managua, the capital, with his general staff and Marine officers to es- tablish field headquarters at Leon, which Gen, S8andino is preparing to at- tack A similar statement was made in a Leon dispatch in the Nicaraguan news- paper La Noticla, which arrived from Managua today. Leon is Nicaragua's largest city, The newspaper said President Mon- cada and his aides narrowly missed falling into Sandino’s hands on Novems ber 30, when a Sandino general, Juan Gregorlo Colindres, attacked and cap- tured the town of Rota, State of Leon, only two hours after Moncads had snmld through it on the way to Leon, 2 miles distant. Gen. Bandino in a report to Zepeda sald his attack was procceding slowly beeause of lack of ammunition and bat- | tle nugplm, which must be captured from the Marine and federal troops. 'We are not recelving foreign aid of ey kihd, as has been charged,” the in- gurgent general wrote. . but we have refused them. are short of munitions, but the men more than makes up mrm.lbu , but nmmm"m& When the second session of the | Farmer- PARDLE REVOKED!ZS: SENATE CONTINUES IN DEADLOCK OVER PRO TEMPORE POST Opponents of Moses Refuse to Back G. 0. P. Nominee in Seven Ballots. After failing again this afternoon to break the deadlock which has developed over the selection of its President pro tempore, the Senate adjourned shortly after 2 o'clock, to resume the battle of ballots tomorrow. of Western Senators, con- 3 Republicans and the 1 -Labor member, who are to the re-election of the Rej nominee, Senatar ‘The group slsting of 1 Four Votes Taken Today. noon, with only slight from the line-up on the thrwum cf Seventis ince. the Gt segan. Eiiiman seven| e it had 43 votes; Moses, 32. The last vote showed the 14 votes which are being withheld from Senator Moses ity t deliberations before the ques- tion comes up again tomorrow. ‘When the fourth ballot of this aft- ernoon failed to show any breaks in the impasse, Senator Watson of In- diana, Republican floor leader, moved | that the Senate adjourn. | When a temporary armistice was caused Piesterdny evening by adjourn- | ment, Pittman had 42 voues, Senator | Moses 33, with 13 votes scattered. Democrats United. On the first ballot today there were 13 Western votes withheld from Moses. They were cast as follows: Senator Nor- ris, Republican, of Nebraska, 6; Senator Jones, ican, of Washington, §; Senator cnpgr. Republican, of Kansas, 1, and for Senator LaFollette, = 1can, of Wisconsin, 1. On the second ballot today there were 14 scattered votes, as follows: Senator Norris, 7; Senator Jones, 6; Senator Capper, 1. he Democrats have continued throughout the balloting to vote solidly | for Senator Pittman. On the third ballot today Pittman dropped 1 vote, going down to 42, with did not affect the deadlock and the clerk monotonously began calling the roll again. 24 NATIONS IN PACT RIO DE JANEIRO, Brazil, December 9 (#)—Twenty-four countries soon will commercial treaties ng s nation clause and viding for & 35 per cent reduction n customs duties, the foreign office an- nounced yesterday. Brazil already has minimum tariff agreements with the United States, France, Spain, Poland, China and Japan. An accord with Mexico was algned Monday. all the others remaining the same. This | “From Press to Home Within the Hour” The Star's carrier system covers every city block and the regular edi- tion is delivered to Washington homes as fast as the papers are printed. Yesterday’s Circulation, 118,909 1#) Means Associated Pre A'WO CENTS. UPHAM SAYS NAVALIGERMAN DECREES POLICY SERIOUSLY) PUT END T0 FREE IMPAIRS DEFENSE Chief of Navigation Declares More Men and Officers Are Needed. FALSE ECONOMY SEEN IN DECREASED STRENGTH Rear Admiral Recommends More Annapolis Appointments and Building to Treaty Quota. In a two-fisted annual report, made Four ballots were taken this after- |D public today, Rear Admiral Prank B. Upham, chief of the Bureau of Naviga- tion, Navy Department, bluntly tells the administration that its reduction policy of ships and men “is serious impair- ment of the strength of the Navy as an arm of the national defense.” Referring to the new operating plan for the Navy, proposed by Admiral Wil- liam V. Pratt, chief of naval opera- tions, Admiral Upham insists that “such reductions must inevitably result in ma- terially lowered training and efficiency, and in the event of war would be of the gravest consequence.” “To maintain and operate a Navy second to none will require increase rather than decrease of enlisted and of- ficer personnel,” Admiral Upham as- serts, referring to the approved naval policy, sanctioned by the Secretary of the Navy and the General Board, in which the words “a Navy second to none” are used. Personnel Reduced. Navy in ships or in personnel must re- sult in expenditures of funds many- fold greater than savings temporarily effected,” said the chief of the Bureau of Navigation. “This is the lesson of history.’ Admiral Upham recalls that during the fiscal year for which the report is made, the strength of the enlisted per- sonnel was cut !rommsl:fi‘)w. "?:p:::t:‘d ber the Congress a ly app! for, to 79,991, the number actually in officers to man the treaty Navy was clearly shown and that additional offi- cer strength could be attained only very gradually, and that by the year 1940 sufficient officers could not be obtained even if five appointments to Annapolis were allowed each Senator and Repre- sentative, the Congress reduced the number of appointments to three. (Continued on Page 5, Column 1., CUBAN SUGAR GROWERS PROTEST WORLD CURB Send Plea to Amsterdam Confer- ence and Plan Fight to Finish in Chadbourne Plan. By the Associated Press. HAVANA, December 9.—The Na- tional Association of Sugar Producers PRIVATE BUSINESS Hand of Government Felt Everywhere and by Every Class of Society. MIDDLE AGES PRECEDENT IS CITED FOR PROVISIONS All Domestic Obligations, Bonds, Loans and Mortgages Are Ordered Reduced. By the Associated Press. BERLIN, December 9.—Germany's business men realized with something of 8 jolt today that by the emergency de- cree issued last night the independence of private business had ceased to exist. Everywhere the strong hand of the government made itself felt and every class of society was obliged to pull its weight in lifting the country out of a desperate situation. Recalls Middle Ages. One prominent German financler re- marked that not since the days of the Gracchi in Rome had a state decreed flatly that interest rates on domestic obligations of every kind, be they mort- gages, bonds on loans, must be reduced. It was asserted also that not since the Middle Ages had any government adopted such sweeping measures to compel its rich citizens to remain in the country on pain of confiscation of a fourth of their fortunes, Outcome Still Remote. To make matters more complicated, the government found itself decres cuikisa. 1 “Any decrease in the strength of the | Reutralize sary, all w (Continued on Page 5, Column 3) RECORD VOTE DEFEATS MAYOR “BOSSY” GILLIS Newburyport, Mass., Turns Against Man Seeking Third Term. G. W. Morrill Wins. By the Associated Press. sent a cablegram yesterday to Francis | AR Powell, chairman of the International Sugar Council, protesting against pro- posed restriction of the Cuban sugar crop. Mr. Powell, together with Thomas L. Chfimbwrne. a}tdthor of the plan Iz rest world sugar production, in Amsterdam to attend a of delegates from the various contracting countries at which measures to be taken the next sugar year will be lucers’ association also ap- President Machado to mod- the censorship in Cuba which it sald prevented newspa fr Morrill received 3932 votes “Bossy's” 2,818, after a campaign was as heated “rmmy the Mayor ipers from pub-| lishing anything about the association's | “Pretty glum, Chadbourne fight on the plan. ‘Without police escorts or the bene- fit of publicity, two groups of unem- ployed World War veterans have come to Washington to plead for full pay- ment of the soldiers’ bonus. ‘The veterans—22 from Seattle and 35 from Portland, Oreg., brought with them & petition bearing 45,000 signa- -service men who also want the balance of their adjusted compen- sation, Mistaken for Communists in Alex: ax;:rh yn::{d-y,mthe mwm was taken custody comg_l;lnt of Southern Rallway olciais, tho Alexandria freight yards af a “blind baggage” trip from Charl ville, Va. '!"hzy huf come all the way “Offers have | being 8 e m:n were picked up in Brookfleld, each was givi i, but mmm VETERANS, MISTAKEN FOR REDS, ARRIVE TO ASK BONUS PAYMENT 57 From Northwest Reach Capital by Freight—Will Call on Legislators Today. Leaving court, the former marched into Wi n, where they were put up for the night by the Salva- tion in the abandoned warehouse vacated only & few hours before by the so-called hunger marchers, who left town yesterday, footsore and resentful. CAR STOLEN FROM BLIND Sightless Couple Lose Automobile ‘While Visiting Friend= The Taylors were driven to St. Joseph by a young couple who answered an advertisement in Cleveland. WON'T CLEAR RECORD Court Refuses to Expunge Innocent Man’s Conviction of Murder.