Evening Star Newspaper, December 18, 1931, Page 1

WEATHER. (U. 8. Weather B ureau Forecast.) « Partly cloudy tonight and tomorrow; not much change in temperature; mod- erate southwest winds. Temperatures—Highest, 55, at 3 p.m. yesterday; lowest, 35, at 4:30 a.m. today. Full report on page 9. Closing N.Y. Markets, Pages13,14 & 15 . S2000. Drtomee Entered as second class matte Washington, v . 'C. he HOUSE WILL SPEED AGTION ON HOOVER MORATORIUM PLAN Democratic Leader Says Session Will Continue Until Resolution Is Passed. MEASURE IS ATTACKED IN REPORT OF MINORITY| Collier Supports Proposal in Fa- vorable Draft of Ways and Means Committee. BY G. GOULD LINCOLN. ‘The Hoover moratorium joint reso- lution was laid before the House today and plans made to speed its passage. ‘The resclution was taken up in the House for consideration soon after that body met at noon. Mid applause, Rep- presentative Rainey of Illinois, the Democratic floor leader, announced that the House would remain in ses- | sion until it passed the resolution, “if it has to stay all night.” Agreement was reached for eight hours of general debate on the reso- lution and Chairman Collier of the ‘Weays and Means Committee; who made the report of the resolution to the House, opened the debate. & “This is no partisan measure.” said Mr. Collier. “It was primarily de- signed to_aid in relief of the depres- sion in this country and other coun- tries, a depression which was the ou come of the greatest war in all creation.” The Mississippi Representative con-| tinued: “They talk about cancellation in con- nection with this resolution. This reso- lution prevides only for a postponement | of the payment of the debts by the for- eign nations to us. How many mem- bers of this House have had in the past to ask for an extension of time for the paymert of money borrowed from the bank? That is not cancellation, nor is this.” Mr. Collier said he had been in- formed thdt 279 members of the House had agreed to the meoratorium pro- Fosal when the President originated it ast Summer. Nations Accept Proposition. Mr. Collier was questioned by Repre- sentative Vinsoen of Kentucky regarding the willingness and ability of Amepica's largest debtors, Great Britain, France and Italy, to make the payments due this year in an effort to show that America might well have benefited by &ose payments instead of p:stponing em. ‘The chairman replied that while the moratorium had been initiated by Presi- dent Hoover in an effort to stem the tide of financial disaster, the three na- tions referred to had all accepted the proposition. He said the situation abroad in some of the Eurcpean nations had been tremendousiy nlh?ndnflxr to conditions in this couniry #f America were _confronted with a breakdown of the Federal Reserve system. “It was no time to exact a pound of flesh from any nation in Burope,” said Mr. Collier, while his colleagues applauded. “I believe that this mora- torium was an honest effort to get | this country and the world at the financial depression. It is that far exceeds partisanship. ever the President of the United States brings to this House a proposal which I believe to be in the best interest of the people of the United States I intend to support it. “There comes a time in every man's life when he must take the big side or the little side of an issue. Today I am going to take what I consider the big side of this issue.” Representative Sanders of Texas, Democrat, an apponent of the morato- rium resolution, followed Mr. Collier in the debate with a sharp attack on the moratorium, following, in the main, the line taken in the minority repert. Will Take Up Other Bills. The Democratic leader, Mr. Rainey, e intention of DEAD DRIVER HELD GUILTY IN CRASH Coroner Gives Verdict in Accident Killing Two Washingtonians in Prince William. Special Dispatch to The Star. MANASSAS, Va., December 18.—Opie Lindsay and G. E. McDonald of Wash- ington, members of the Metal Lathers Union. who were killed in e2n automo- bile crash on the Richmond .highway near Woodbridge Wednesday came to their death as the result of ngligence on the part of Lindsay, the driver of their car, Coroner E. H. Marsteller of Prince William County, found 2t an in- quest this morning. M. M. Carter of Charlottesville, Va., driver of the truck with which the sedan driven by Lindsay collided, testi- fied that he pulled his truck over on the dirt, and that the sedan hit it mid- w Carter was slightly injured in the crash F. G. Goldie and Arthur D. Mulloy, al > of the Metal Lathers’ Union, who were in the sedan, eppeared at the in- q with their heads swathed in band- ages Both appeared hazy as to the de- tails of the accident, Goldie stating that he was asleep and Mulloy that he was not paying attention to the road. Both denied having anything to drink. a matter | When- | By the Associated Press. President Hoover today sought, and to an extent obtained, from leaders of both parties in the House an assurance of fast action on his business recon- struction program. Gathered with him at breakfast, the | legislators told the sident his | moratcrium proposal and the $100,000,- bill are almost sure to pass the House before the Christmas holidays. Once back from the recess, the out- | look s for Congress to los2 no time | before getting onto the $500.000,000 | reccnstruction corporation asked in the presidential message. ~ Congressional committees started examination of that proposal today. McFadden Not Invited. Representative Snell, Republican floor leader, said the President did not make any specific plea for non-partisan action, but talked to the Democratic and Re- | publican leaders present as though they were a united group with a common purpose. Snell added he personally be- lieved the Democratic leaders were will- 000 Federal land bank capital increase | HOOVER PARLEY SPEEDS TRADE REVIVAL PROGRAM House Leaders Almost Sure of Mora- torium and Land Bank Action Before Recess—Democratic Aid Seen. | ing to co-operate in full on emergency economic legislation. Representative McFadden, who had recently attacked the President in the House, was not invited to the confer- ence, although he is ranking Republic- an_member of the Banking Committee. Those attending were Speaker Gar- ner, Representatives Rainey, Snell, Hawley, Treadway, Collier, Crisp, Stea- | gall, Brand, Strong and Luce. | _Ogden Mills, Undersecretary of the | Treasury; Walter E. Jope, former As- | sistant Secretary of the Treasury, and | Walter Newton, one of the President’s | secretaries, also were present. | President Hoover especially urged | expeditious action on the Reconstruc- tion Corporation, asking that it be placed on the top of the legislative cal- endar after the Farm Land Bank bill had been acted upon. Land Bank Bill Approved. The House Banking Committee yes- terday approved the Land Bank bill i and Snell and Rainey tentatively agreed | on the floor that it would be brought up in the House for action Monday. | On leaving the White House, Mills | said with the others that it had been (Continued on Page 2, Column 1.) 1. MORGAN LOANS T0 FRANCE ARED | Total $300,000,000 Since War on Bend Flotations, Lamont Testifies. By the Associated Press France has borrowed $300,000,000 from J. P. Morgan & Co. since the war Relating details of the various lcans of the company, of which he is a part- ner, Thomas W. Lamont told the Senate Finance Committee today all but $131,- 000,000 had been repaid. The loans were made on bonds which the tanking ecncern bought outright, paying France 94, 90 and 89, raspec- | tively, on ezch $100,000.000 issue and | selling for par, 95 and 94. He said the -difference in the amount received by France and that for which the bonds were sold was not profit, but was eaten up by distribution expenses. | Commission Declared Small. Ezrlier in the committee’s foreign se- curities inquiry, Lamont said he wi “a little mortified” to tell of the small commission the Morgan firm had re- ceived from floating foreign bonds in this ¥ . - pathy and pity of the committee too much,” he said after enumerating the bond issues the firm handled for Ar- gentina, Canada, Austria and Eelgium. The committee is making the inquiry at the requesi of Senator Hiram Johi | son, Republican, of California, an opj |nent of ratification of the Hoover ‘moratorium. Lamont started his testimony with Johnson sitting at one end of the long committee table and Chairman Smoot at the other. The financier was mid- way between them. Senator Reed, Repubican, of Penn- sylvania, opened the questioning by asking what foreign loans the Morgan firm had floated since the armistice. Says Company Made Profit. | Lamont said his firm had floated | $159,800,000 in long-term bonds for the Argentine government. The gross spread | cn”these boncs vary, he said, from 31> per cent to 4 per cent, including the | cost cf distributing them to bond houses. | The last Argentine bonds handled was an issue of $21,200,000 on April 28, 1927, | | Lamont said 2ging commission on the issue, it did make a profit, Lamont said. He did not give the amount, however. He enumerated also a flotation of $165,000,000 in long-term Austrian bonds | on which the firm made a commission of 1 per cent, and two loans of $25,- 000,000 each for Austria with no ihan- aging commission. | Lamont said loans totaling $260,000,- 000 were handled for Belgium trom June 1, 1920, to October 23, 1926. He said the Morgan RQouse was not the agent for these governments, and they were frce to deal with otner agencies. “We have no fixed agency cgrecment with any of these governments,” he caid, “nct even the British or French.” | The first Austrian loan of $25.060,- 1000 has now been reduced to $18,000,- | 000, he added. | The spread on the Belgium lcan, he said, ranged from 6 per cent in the | earlier days to 4 per cent. ‘The firm made no profit on the first two issues, but three twentieths, 225- 1,000ths and cne-fifth of 1 per cent on | the others, he testified. For Canada, Lamont said one issue | of $105,348,000 was’ floated April 25, 1922. The spread on this was 215 per | cent and there was no managing com- mission. Lamont sdid the issuing house or some designated trustee handled the sinking fund. Senator Couzens, Republican, Michi- gan, inquired if it were not a dangerous policy for the issuing house to be trus- tee of the sinking fund. Lamont said it was a “very wise policy.” Couzens said he had heard of in- stances of the trustees diverting the (Continued on Page 2, Column 2.) RADIO TO AID SANTA TOY MATINEE WHICH WILL BE HELD TOMORROW Old and Young Enter Into thing as Price of Each Tune in the “toy matinee” bro: cast, “on” the air tonight, but * the air unti Santa Claus has fulfilled the most forlon hope in Washington. No cold charity, tomorrow morning'’s benefit shows at Metropolitan and Tivoll Theaters—better still, a personal opportunity to select and buy a per- sonal Christmas gift. The shops and toy counters of this holiday city offer exciting possibilities for/old and young alike. They dis- pldy a myriad toys, any one of which would spell happiness to some poor child on Christmas morning. Join the holiday shopping throng, Spirit of Giving New Play- Admission to Theatérs. buy & bright, new toy, trade it in at- Lhe box office of either theater as your price of admission and see a film en- tertainment worthy of the occasion. Already the great Santa Claus ham- pers in the theater lobbies are begin- ning to fill with gifts from those who cannot sttend the performances ar- ranged by Warner Bros. and The Eve- ning Star. Already the telephones at either theater are resounding with inquiries as to time and age limit of the audi- ence. As to_time, the bill opens at the (Continued on Page 2, Column 6.) country. - ¥ “I am afraid it will make the sym- Although the company made no man- | KIDNAPED WOMAN - FREED BY CAPTORS Mrs. Donnelly and Chauffeur Are Released Unharmed Without Ransom. By the Associated Press. | KANSAS CITY, December 18 —Ner- | vous, but unharmed after almost 36 | hours in the “filthy” three kidnapers, Mrs. Nelly Donnelly, wealthy founder of a Kansas City gar- { ment company, and George Blair, her | | colored chauffeur, were freed by their | | captors early today. | They were released from a motor car | near the Kansas Avenue Bridge, on the | Kansas side of the city and soon were |back at the Donnelly home. Their | return marked the end of a period of | anxicus waiting by her husband, Paul | Donnelly, and his attorneys, who were |at a loss as to how to get in touch with the abductors for the delivery of | threat of death to Blair and blindness for the woman. Search for Tria Renewed. L. M. Stegfriedr chief of'pblice. said he was certain no money haa been paid the men. Police squad cars and dep- uty sheriffs set out at once in a re- newed search for the kidnapers. Former Senator James A. Reed, | neighbor and counsel for Donnelly, also said no ranscm had been paid. “It's wonderful,” sald Reed, who had | spent a sleepless night. “Now all we [need to crown this is a hanging.” | In a warning to the kidnapers yes- |terday, in which he guaranteed Mrs. | Donnelly’s husband would pay $75,000 for her safe release, Reed pointed out that kidnaping is punishable by death |in Missouri. The former Senator left the trial of an important cace at Jef- | ferson City, Mo., yesterday and rush- ed here at Donnelly’s -request. The most heavily insured woman in Kansas City Mrs. Donnelly carries life insurance of approximately $750,000. Mrs; Donnelly said she and Blair were taken from the rendezvous about | 30 minutes before they were put out of a motor car. She quoted one of the | men as.saying: “Another car will be along soon to pick you up in a little bit.” In the meantime Chief Siegfried had | received an anonymous telephone call | which instructed him where to find | the victims. Accompanied by other officers he drove down Kansas avenue to the designated place. Victims Wait for Second Car. r;x;hey I_S.iled to find the victims, but | after cruising around, a wom: out and asked: hscerel ;}g this the car that came for me?” e woman was Mrs. Donnelly. was with her. A Mrs. Donnelly was hysterical when che first entered the police car, but soon recovered her composure sufficiently to tell a connected story of the abduction. The kidnaping occurred at her homs late Wednesday as she was returning from her downtown office. As Blair drove into the driveway another ma- chine pulled in. Three men got out, Weman Fought Abductors, Blair was forced to move over from the wheel, and two of the men got into {the rear seat with Mrs. Donnelly. As the car moved away the men started to blindfold her. “That got my Irish up,” sh2 said, “and I fought. But they finally got the sack over my head.” Blair also was blindfolded and, after a 20-minute drive, they wer= transferred to another car. “We went out Brookside Boulevard to Huntington road,” she related. “I was kicking and screaming all the way, try- ing tosattract the attention from the stream of motorists. The chauffeur was on the floor between the driver of the kidnapers’ car and another of our cap- | (Continued on Page 2, Column 2) BANDITS SHOOT PRIEST WHO PROTESTS HOLD-UP Five Invading Steamship Agency in Gotham Flee When Curate of Convent Is Wounded. By the Associated Press. NEW YORK, December 18.—Father Raphael Ferrari, 48, curate of the Con- vent of St. Vincent of Ferrari, was shot end seriously wounded last night by one of five men who made an unsuccessful attempt to hold up a steamship agency. Father Ferrari was seated behind a desk with the proprietor discussing de- tails of a pi planned for July, 1932, when the five men entered, dis. playing weapons. Father Ferrari remonstrated and one of the robbers fired a shot which pierced the priest’s right arm and entered his abdomen. ‘When Father Ferrari clutched the Gesk and slumped to the floor, the men Y;g-flv their escape in a taxi- rendezvous of | 1 875,000 In ranscm, demanded under a | Beninn WITH SUNDAY MORNING BDITION DANOND S KILED AT ABAY AFTER ACQUTIAL PARTY Notorious “Legs” Shot to Death in Rooming House Following Celebration. WIFE AND THREE OTHERS Gang Leader, Thrice Target of Rivals, Slain in Few Hours After Winning Freedom. By the Associated Press. ALBANY, N. Y., December 18.—Jack “Legs” Diamond, 33-year-old gangster chief, was mysteriously shot to death in a rooming house here today a few min- utes after he had left a party celebrat- ing his acquittal of kidnaping. Three bullets were fired into his brain at close range, and apparently as he struggled with his assailants. The body was found sprawled across a bed in & room at 67 Dover street which he had occupied with his wife. Mrs. Diamond, hysterical, was held by the police. “I didn't do it. I don't know anything [about it,” she cried repeatedly. i Three Others Questioned. Two women. who operated the room- ing house, and a taxi driver, presumed [ to have driven Mrs. Diamond from the party, also were questioned by the of- ficers. Diamond was acquitted of kidnaping by a Troy jury last night. The cele- bration began around midnight. Dia- mond left the revelry between 4 and 5 am. and alone drove to the rooming house in a taxicab. Mrs. Merl Wood. the rooming house keeper, said she heard several shots ! soon after the taxicab left. and several | men rushed down the stairs from the upper floor where the Diamonds lived They paused at the foot of the siairs {and one said “O hell, that's enough.” It was, for when Dr. Thomas H. Holmes of Delmar arrived around 6] | o'clock Diamond was dead. It was | some time after that before the police | were summoned. and it was rumored Ithat their first information came from | gangste: ralls from Chicago and St. | Louis, asking if Diamond had been “rubbed out.” Many Motives for Crime. While no immediate motive for the murder came to light, Diamond's un- | {derworld activities supplied many ra- |sons why gangland wanted him re- moved. One of the bullets that ended the gangling gangster's life ripped thicugh | the base of the skull, and the cther| two were fired into the side of the ‘head neet ear. His face, twisted and distorted, indicated to the examining officers that he nad been seized as he entered his room, and as | h> struggled to free himself the assas- | isins shot him, afterward tossing the| | body onto th: bed. { Daniel H. Prior, Diamond's attorney, arrived at the police station soon after | District Attorney John L. Delaney be- gan questioning the four people held. He said he would represent Mrs. Dia- mond, but that no effort would be made to release her from custody until the authorities had been able to ques- tion her thoroughly. Police also questioned Patrick De- | laney, who lives in an adjoining house. | He substantiated Mrs. Woods’ story that the shots were fired about 5 o'clock. He jumped from his bed and saw a man about 5 fest 7 inches tall, dressed in dark clothes, enter an automobile, which drove rapidly away. Diamond was lying cn his back. He lhad removed all his clothing except | his underwear and shirt. The body was | removed to a morgue, where an autopsy was performed. In Old Section of City. Mrs. Diamond and her 5-year-old { nephew were at the Dove street address | when the police arrived. The child, son cf Diamond's dead brother, had been with the Diamonds and his mother in the Troy court room yesterday. The Diamonds had occupied the Dove street room for several weeks. The rooming house is in an old section of the city, not far from the State Capitol. It was only a few blocks from the State street address where New York detec- tives a few weeks ago found Diamond and Marion “Kiki” Roberts, former showgirl and companion of the gangster. When the New York officers broke into the State street place, looking for the gangster slayers of a metropolitan officer, they faced Diamond, but a dif- ferent one from the “Legs” the New York police had learned to know. He was wearing a mustache and glasses. He had discarded both mustache and glasses when the Troy kidnaping trial began. An effort was made today to locate Miss Roberts, but she had not been sega‘by her friends here in several days. e scene of today’s slaying also is within two blocks of a forther speakeasy in which Diamond had an interest. It was closed by police some time ago. At (Continued on Pag EX-CARDINAL BILLOT DIES IN ITALY AT 85 Man Who Crowned Present Pope and Resigned in 1927 Fight on " Action Issue Expires. , Column 3)) By the Assoclated Press. ARICCIA, Italy, December 18.—One of the most vivid careers in the Roman Catholic Church came to an end today with the death of former Cardinal Louis Billot, at the age of 85. . The man who several years ago was the center of a bitter fight between the Holy See and the Action Francaise movement died in a humble cell at the Jesuit monastery here. He had re- signed his cardinalate ‘in 1027, sup- posedly in remonstrance against the severity of the Pope’s campaign which ended with placing L'Action Francaise, French my‘tlxi:‘rt newspaper, on the In- dex us lus. Pogpflrg: X made him a cardinal in. 1911, and it was he who crowned the present Pope on December 2, 1922, He was the tflm cardinal to resign in man: eraticns. M:er.mhe put away the red hat he be- came a simple priest, but his name was stricken from the Pontifical Annual. Radio Programs on Page D-6. HELD FOR QUESTIONING | “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, 118,978 WASHINGTON, , D. C, FRIDAY, DECEMBER 18, 1931—SIXTY PAGES. () Means Associated Press. TWO CEN TO Publisher Cited f; Edward B. McLean, publisher of the { Washington Post, was cited for con- tempt of court today for sending a “Christmas present” to his children and estranged wife, Mrs. Evalyn Walsh McLean. A rule requiring McLean to Show cause why he should not be held .n contemot of court was signed by Chief Justice Alfred A. Wheat after it de- | veloped that the newspaper publisher had sent to his home a daintily wrap- ped Christmas box containing a sum- mens ordering his wife to appear be- for a Latvian court as a defendant in divorce proceedings. The rule is returnable next Tuesday. It is alleged that McLean's act in pressing the Latvian proceedings vio- by the local court restraining the pub- lisher from prosecuting his divorce ac- tion in the foreign country. Justice ‘Wheat's citation today required Mc- Lean to show cause why he “should not be held in eonwmgt; and imprisoned”™ for violating this injunction. ‘The summons, according to the pres- entation of Mrs. McLean's attorneys, wrapped up in the form of a Christmas package, with pictures of a white Santa Claus, red reindeer and black Charist- mas trees as adornments, was celivered at the McLean residence Wednesday by an unidentified driver of a Black and White taxicab. Efforts to locate this lates a preliminary injunction granted | McLEAN SENDS “YULE" PACKAGE. WITH RIGA SUMMONS FOR WIFE Contempt of Court After Gaily Wrapped Subpoena Is Delivered in Divorce Action. ) driver have been unsuccessful and the identity of the person who gave him tke package to deliver is likewise un- known. ‘The papers discovered when the Christmas box was opened consisted cf | a summons on Mrs. McLean to appear before the Fourth Civil Section of the District Court of Riga within two months. The petition, called a demand and petition, is sigifed by a Latvian attorney, Bernhard Berent. who claims | to be acting for McLean. The grounds alleged for the divorce are “sharp con- flicts and hostile relations.” Mr. Mc- | Lean also demands that the Latvian | court give him custody of his minor | children. No reference is made to any payment of alimony or maintenance money by him for the children. The injunction which McLean is al- leged to have violated forbade him from proceeding in any way with his Latvian divorce, either directly or through his | attorneys, agents or employes. The proceedings were initiated early in No- wember. ‘Tt is also alleged that McLean tempted to get his “local attorneys” to serve the summons on his wife. It is | said the attorneys refused to do so and | advised McLean such an act would be | in contempt of court. The facts in the case were called to Chief Justice Wheat's attention by At- torneys Albert W. Fox and Nelson T. Hartson, representing Mrs. McLean. RECH RALSHELD POVERLES 10 PA Experts Decide Roads Can’t Meet No Postponable Obligations in 1932. By the Associated Press. BASEL, Switzerland, December 18.— U, S, AGAIN VOICES CONCERN T0 AP iPact Obligations Empha- sized—Tokio Plans New Drive in Chinchow Area. By the Associated Press. A new expression of concern over SOVIETS IMPERILED BY L0SS OF CREDIT | Five-Year Plan Threatensd. World Fears Collapse May Result. BY CONSTANTINE BROWN. Reports from London and Berlin in- dicate that the Soviet credits in both these countries, which heretofore have been trading with Russia on a large scale, are now exhausted. This situation, which is the result of the world economic depression, is likely to deal a final blow to the famous “five-year plan” and may have serious political and economic consequences for Russia. Thus another cloud is being added to the already somber sky of international politics. Reports have been received recently from Europe indicating that the situa- |tion in Russia is becoming extremely serious. i Reports Believed Reliable. There have been many reports cir- culated in recent years that “the col- lapse of the Soviet regime is a matter of a few months.” They have com~ mostly from Russia's border states c. were founded more on sentimental con- siderations than on real facts. This time, however, the reports are substan- tiated and are coming from impartial and reliable sources. Russia’s great experiment, which had started in a promising manner, is likely to become a failure, not because the Russian authorities have proved un- equal to the task, but because they are being faced by the tremendous depres- sion which exists today in all capi- talistic countries and which has an in- evitable repercussion on the Soviets' economic plans. Great Britain and | Germany, pressed for money, no longer can give Rucsia liberal credits. On the |cther hand, both these countries are endeavoring to export as much as they can in order to estiblish a favorable | trade balance and are protecting their industries and agriculture by a high tariff wall. Unable to Find Credit. Under these circumstances the So- viets, unable to obtain further credits d unab’e to precure them by selling at NEW D. C. TAX BILL WOULD PLAGE LEVY ON WORKERS LIVING N NEARBY STATES ‘Virginians Face Third As- sessment on Incomes and Marylanders Second Charge on Intangibles. INTEREST ON HOME LOANS IS NOT TO BE EXEMPTED | Civic Organizations in Neighboring Communities and Congressional Delegations Representing Them Muster Forces to Defeat Measure in Senate. Discovery of a clause in the in- come tax bill for the District as Wpassed by the House, which would | attempt to impose the tax on | non-residents whose income is earned in Washington, today stirred civic organizations 1n nearby Maryland and Virginia |into action in preparation for a 1 vigorous fight against the measure | in the Senate. ‘ Hundreds of employes in the District in Federal as well as pri- | vate offices who live in surround- {ing Maryland and Virginia com- | munities would be affected by the | bill. Belief also was expressed \that the measure would serve as a ;boomerang to Congress, whose | members also would be subjected {to the tax like other non-resi- | dents. | _Another r feature of the bill, characy.e_nzed as “astounding,” 1s | a provision forbidding deductions from gross income on account of interest paid on home purchase loans. Such exemption, of course, is provided in the Federal income tax laws. | 3Virginians Hardest Hit. Residents of Virginia in private em- ployment in the District would be hard= | est hit under the non-resident tax pro- | yion, since they are now taxed on their incomes by both Virginia and the | Federal Government. Federal workers | living in Virginia are exempt from the | State income tax, but the District tax | bill treats Federal and private employes alike. In effect, the bill would result | in the impositioneef a triple tax on the | income of Virgintans working in private establishments in the District, as they are now paying a Federal and State income tax. Maryland has no State income tax, but its residents who work in the Dis- | trict would pay a double tax—as Mary- land taxes intangible personal properiy like the District. The residents of the District .are to be relieved of the in- tangible tax if the income tax law is ! enacted. Bills proposing an income tax and an cstate tax reacned the Senate today and will be sent to the Finance Com- inittee which handles Federal taxation problems. The other two bills, raising the gas tax from 2 to 4 cents and plac- Ing a tax on automobiles by weight, were referred today to the Senate Dis- trict Committee. Aside from the impending fight against the tex bill in the Senate by civic organizations in nearby Mary- land and Virginia, members of the State delegations from these two States also are planning to develop opposition to the measure, now that thoy have | discovered the far-reaching effect it | will have on their c:nstituents. | Swanson Against Bill. None of the members of the Senate | The Young Plan Committee of experts the Manchurian situation, in friendly, decided today by unanimous vote that|but positive terms, has been communi. the German raliways will be unable to|cated to Japan by the American Gov- meet, their non-postponable reparations ernment. X payments next year. | ,Ambassador Forbes in Tokio, on in- ‘The Experts Committee accepted a!structions of Secretary of State Stim- subcommittee’s report which contained | son, has again emphasized to the Japa- | the statement that it will be 1mpossl-inese foreign office American solicitude ble for the railways to balance their!that obligaticns under the nine-power budget in 1932, even though the un-/ and Kellogg-Briand treaties be | conditional payments, which the Young | spected. plan places upon them. should be| President Hoover, in his message to re- |2 low price the raw materials produced | and Hcuse from either Maryland or by Russia, can no longer obtain from | Virginia was familiar with the provi- abroad the manufactured products, and | SIONS of the tax bill at the time of its oreign lan o + S Vi “bitterly - order to make the flve»ygur plan ef+ | Fosed” to any provision that would pflt fective, | an additional tax burden on residents Even Amerlcan manufacturers are |Of Virginia, and announced he would | getting worried and no longer are pre- | Make a thorough study of the measure | pared to extend the credits they used to | before action is taken on it by the |8 few months ago. The reluctance of Selate. ; {the American manuiacturers is not | Representative Howard W. Smith, caused by any political or sentimental | WhO Tepresents the eighth Virginia dis- turned back to them now through the Hoover plan. This- disclosure was accepted as the first official indication that the ex- perts’ final report would contain a recommendation for a moratorium on conditional payments rather than for cancellation. “As soon as Germany gets back to norm}la" the subcommittee report said, “the railways may be expected to at- tain net earnings comparable to those of the railways in other countries.” An officlal communique said commission had reported. First, that from 1925 to 1929 the rail- " (Continued on Page 2. Column 3.) the Christmas Shopping from the Advertisements —will make your Christmas dol- lar, go further this year than it h23 for many years. Make your selections, plan your purchases in your own home from the mer- chandise displayed in the adver- tising columns of The Star. Yesterday’s Advertising (Local Display) Lines. The Evening Star . . . 76,135 2d Newspaper . . . ., . 25,501 3d Newspaper 9,393 4th Newspaper..... 8,523 5,123 (Four other Total newspapers) ... 48,540 The Star, ‘with its tremendous ch'culatlon':ol.s t!ll‘e n:aly medium necessary to reacl Prosperous market, as 97% of its readers are within a radius of 25 miles of the National Capital, Congress on foreign affairs, pointed out | tbat the United States as a party to the two pacts had a “responsibility in maintaining the integrity of China and a direct interest with gqther nations in maintaining peace.” No formal communication was de- livered to the foreign office by the Am- bassador, but the American attitude was re-expressed verbally to the Japanese. TOKIO PLANS DRIVE. Chinchow Area. TOKIO, December 18 (#).—Plans for a new and extensive military campaign against alleged bandits in Manchuria were announced by a spokesman for the war office today ‘as reports were re- ceived of fighting in which 1 Japanese (Continued on Page 2, Column 8.) TASKER WEDS ACTRESS Hollywood Cartoonist and Bride on Way to New York. ‘WINSLOW, Ariz., December 18 (#)— ‘The marriage of Robert Tasker, Holly- wood cartoonist, and Miss Lucille Mor- rison, actress, of New York City was revealed after they had boarded a train for New York here last night. The ceremony was performed by jus- tice of the Peace J. B. Drumm Wednes- day evening. WOMAN FLYER MISSING Fraulein Beinhorn Unheard From Since Leaving Bagdad. BASRA, Irak, December 18 (#).— Fraulein Elli Beinhorn, German woman flyer, was reported missing where in Irak or Persia. She left Bag- dad yesterday and has not been heard from since. Praulein Beinhorn took off on a flight to the Far East early this month in an attempt to win the Hindenburg Cup for the year, |Bandit _Situation reported Acute in | best amateur flight of the | legal the money to pay for their purchases tually closed their doors to them. It appears that the Moscow adminis- tration still has a certain amount of dealings with Italy, but even there the general wave of depression is likely to | create a situation which soon will make |1t impossible for the Soviets to obtain | 8oods either on the barter system or on_credit. Only a year ago this news would have been hailed with joy by most countries. Today, however, it is received with a good deal of apprehension. The possible consequences of a breakdown in Russia are too serious to be taken cated problem to be added to the long world. Comdr. Loomis Dies. PASADENA, Calif., December 18 (&). —Comdr. Frederick J. Loomis, U. S. N., retired, and prominent in civic work here for a score of years, died unex- pactedly yesterday at his home here. | when Britain and Germany have vir- | lightly; nobody wants another compli- | list which already is harassing the | motive, but merely by the fact that they | trict, which includes Arlington and | cannot see where the Russians can get | F2 irfax Counties, declared he was in the House af the time the vote was taken on the tax bill, but was un- aware that it contained a clause that would impose an added tax on his con- stituents. Mr. Smith said he voted against the bill, not because he is op- posed to an income tax law for the Dis- trict, but because he had not had an | opportunity to consider the measure. | The tax bill, Mr. Smith pointed out, | was rushed through the House and was | not_even accorded the usual procedure | " (Continued on Page 6. Column 1) \LAVAL DEFEATED, 292-281 | Confidence Question Not Involved in Vote by Deputies. |, PARIS, December 18 (#).—Premier | Laval's government was defeated by a | vote of 292 {0 281 in the Chamber of | Deputies today, but a question of con- | fidence was not involved. The vote |Was on the government’s motiocn to |set a date for closing of debate on unemployment. Chairman Mapes of the Special House during the past two days has put through four tax measures eg' ku; residents upward of $4,000,000, answered the following questions: to pay & tax under this (income tax) 2 A. The bill only applies to the resi- Jjurisdiction went no further. Q. Do you pay an income tax at your increase. the tax burden on today Q. Are you dents of the District of Columbia. Our residence? Michigan MAPES SAYS D. C. INCOME TAX WON'T APPLY TO CONGRESSMEN Committee on Fiscal Relations, which | Sponsor of New Measure Doesn’t Attempt to Square Levy on Smaller Salaries. although personally I fave e ly or one for the Q. How do you square your official action and word in the Mapes report as a duty to put through this legislatior to tax low-salaried Government em- ployes with your private situation ir not having to pay a tax on your salary, which is many times that of thesg Government employes? A. That needs no answer. . It was disclosed today that in only two of the States repicsented by mem- (Continued on Page 2, Column 2)