Evening Star Newspaper, January 13, 1932, Page 2

A BLAZE THREATENS COLONIAL BEACH ReSidents Assist Firemen to Check Fire With $50,000 Damage. By a Staff Correspondent of The Star. COLONIAL BEACH, Va., Januery 13. —A $50,000 fire razed three buildings here early today and was prevented from sweeping the town only by the combined efforts of virtually every resi- dent, assisted by firemen from Fred- ericksburg and the naval proving ground at Dahlgren The blaze broke out shortly after midnight in one of several bath houses between the Holt Cottage and the | Washington House, both on the water front. It was discovered by Mrs. Adie P. Coakley, ill on the second floor of & building a few feet from the Wash- | ington House. Noticing sparks flying past her window, Mrs. Coakley awaken- ed her son-in-law, J. T. Coakley, part | owner of a drug store on the first floor Operator Spreads Alarm. Coskley notified Mrs. Anna E. John- | son, telephone operator, Who spread the | Im. S Tom the Wishington House. the fire. fanned by a stiff breeze, quickly spread to the Holt Cottage and the Holly View Hotels, also on the water front While every resident of the town, capable of carrying a bucket, was fight- ing the fire, Mrs. Johnson notified the Fredericksburg Fire Department and officers i charge of the Naval Proving Ground. Apparatus from Fredericks- burg was rushed to the scene, while a submarine chaser, equipped with fire- fighting apparatus, hastened to the laze by water. z Sparks, carried by the wind, ignited the roof of a building about & block away, formerly used as & post office This blaze was_extinguished before it had made any headway, however. Assists Family to Safety. While the fire was at its height Coakley assisted his mother-in-law, his wife and three children—Adélaide, 13; Prances, 10, and Maysel, 5—from the building. After taking them to th'e home of his business partner, Dr. V. O. Caruthers, he returned to his com- bination home and pharmacy, and, assisted by other residents of the town, began removing fixtures, stock and furnishings. Most of this was trans- ferred to the town hall Despite the untiring efforts of the townspeople and the fire fighters, the blaze was not brought under control for more than two hours, and it was not until about 4 am. that it was extin- guished. Meanwhile the walls of the ‘Washington House, with flames léaping high into the ‘air, had fallen against Coakley’s home. The building was only slightly scorched, however. The Washington House is owned by Mrs. M M. Do Atley of Washington, the Holt Cottage o¥Mrs. Charles Holt, 8 widow, and the Holly View Hotel by Wally Kimmel, also of Washington. Kimmel, who is attached to the Bo- tanical Gardens in the Capital, rented the property to Mrs. J. O. Murray, who estimated her personal loss at about $4,000 for furniture and equipment, some of which was covered by insur- ance. The contents of the other build- ings also was destroyed, and residents of the town estimated the loss at ap- proximately $50,000 in all. Only the Washington House was oc+ cupied at the um;. the other Tgxm;: v closed for the season. om: hl'l‘al’ll,nsl'n er of both the De Atley Hotel and the Washington House, both under the same ownership, Was asleep when the blaze broke out. Awakened by the smell of smoke and the cracking of the flames, he fled from the building while the fire was still confined to the bath houses. Two Persons Injured. Only two persons were injured. Ed- win oonkley.p:buut 25, & relative of the drug store proprietor. and Emory Smallwood, about the same age, were slightly hurt when an electric refrig- erator which they were removing from the Coakley store fell against them Mrs. H. N. Stone, owner of & nearby restaurant, was about to retire when the alarm was spread. She reopened her lunch room and, assisted by Miss Ethel McNeil, 21, and the Ilatter's sister, Mrs. Ara Sheaffer, fed the fire- fighters sandwiches and coffee free of charge. All together, she estimated, ghe and the two girls fed at least 100 persons. . Charles M. Carey, who is not a mem- ber of the town fire department, drag- ged hose lines into the blazing build- ing and stayed with the regular fire- fighters until the flames were extin- guished. Most of the townspeople were garbed only in nightclothes when they turned out for the fire. DOUMER MAY ASK PREMIER LAVAL TO FORM NEW CABINET (Continued From First Page.) Premier Laval himself or Senator Paul- Boncour to succeed M. Briand as for- eign minister. Most of this was frankly labeled speculatory, however, for President Doumer’s consideration of the situation Was expected to take practically all day. Foreign Minister Briand, whose ill- ness was one of the factors leading to the resignation of the cabinet, was reported by his friends to be much better today. He is going back to his farm at Cocherel in Normandy In the meantime, reliable sources | here reported that the French repara- tions plan new being considered by the British cabinet in London calls for a two-year moratorium on German con- ditional payments and an issue of Ger- | man raflroad bonds to be turned over to France for the unconditional an- nuities. | A part of these bonds, according to| the plan, could be turned over to the| United States in payment of war debts. The British, however, these sources said, want & five-year moratorium and | the suspension of unconditional as well as conditional annuities during | that period. | TERMS FLEET UNFIT FOR EMERGENCY USE| Admiral Bristol Approves Vinson's Ten-Year $616,250,000 Program. By the Assoclated Press Resr Admiral Mark L. Bristol told the House Naval Committee today the fleet at present is “unbalanced” and Tiot fitted for possible emergencies. The head of the Navy General Board made this statement while approving the Vinson $616,250,000 construction pro- gram. That 11, he asserted, does not con- fiict with the General Board's similar 10-year program to bring the Navy up to treaty limits. After advocating & progressive continuing program, Bristol called attention to the authorization for destroyers. “Our destroyers are not now fitted for any compaign which we are study- for any emergency that may arise,” 1 testified. He insisted the coun- should “keep our fleet built up at Police Captain Remembered THE EVENING STAR, WASHINGTON, D. C. WEDNESDAY DS GIVE FORMER SUPERIOR DESK SET. APT. SIDNEY MARKS Wi former fellow officers st as a lieutenant prior to No. 11 being as presented with a desk set yesterday by his the fifth precinct, where he served for years Left to right, front row: Capt. Marks, Capt. Jeremiah Sullivan, commander of No. 5. promoted to captain and transferred to Lieut. B. R. King and Back row: J. P. Sayer, —Star Staff Photo. william P. Als and Sergt. C. C. Gouldman. BIG MAJORITYWON BY MRS, CARAWAY First Woman to Be Elected to Senate Is Mother of Three Sons. By the Associated Press. LITTLE ROCK, Ark., January 13.— cerned with domestic affairs until two months ago, will serve as the first Senate. Mrs. Hattie W. Caraway, widow of Arkansas’ junior Senator, Thaddeus H. Caraway, yesterday defeated two “in- dependent” candidates in a special elec- tion to achieve the distinction. She will fill 4t her husband’s un- red term. exgetun'\s froo more than two-thirds of the countied gave her 14,121 votes, against 436 fo. Sam D. Carson. self- styled “dirt farher,” and 925 for Rex R. Floyd, son of a former Congressman. Remained in Washington. Mrs, Caraway made no campaign. She remained in Washington, serving in the Senate under a temporary ap- pointment from Gov. Harvey Parnell. while woman's clubs and Democratic leaders worked in her behalf. that fell over the State throughou election was regarded as certain. Her nomination, by the Democratic State Central Committee was equivalent to election. The election was largely a woman's affair. election officials in almost all counties because depleted finances threatened otherwise to prevent an election. They also probably turned in more votes than the men, election officials said. Expected to Retire in 1933. A few counties held no election, de- spite offers of women to volunteer their services, and in all the others only a few polling places were established in strategic locations. Mrs. Caraway will serve until March, 1933. Her friends expect she will then retire from politics, which she entered after the death of her husband. Mrs. Caraway was born on a Ten- nessee farm and is the mother of three boys. Her appointment by the Governor to serve pending the special election gave her the distinction of being the first woman to sit_as a regular member of the Senate. Before her, Mrs. Rebecca Latimer Felton of Cartersville, Ga., had served for a day under an honorary appointment. PATMAN CHARGES _ MELLON ALLOWED TO VIOLATE LAWS (Continued Prom First Page.) engagement in business, but contended such ownership was rare when the law was enacted. Patman quoted extensively deposition given by Mellon in 1028, in a New York case involving a business combination. between the Mellon-owned Aluminum Co. and the Canadian manu- facturing and development, an_ alumi- num concern controlled by the late James B. Duke. Numerous conversations were men- tioned between Mellon and A. V. Davis, president of the Aluminum Co. of America. One of these meetings took place in Pittsburgh, and Mellon was quoted as saying in “our bank” in which Davis is a director. Says Mellon Met Duke. Davis told Mellon, according to the deposition, that Duke would like to come to Washington and discuss with him the business negotiations “T said T would be glad to have Mr. Duke to come to dinner and discuss it,” Patman read from Mellon's deposition. The Texan said this meeting took place in 1925, while Mellon was Secretary “Is it your purpose to show miscon- duct or direct participation in busi- ness?” Patman was asked “It is my purpose to show he directly participated in carrying on the busi- ness of the aluminum company.” He said Davis in one instance tele- graphed the Duke interests that Mel- lon and his brother, R. B. Mellon, had expressed a preference for a particular type of agreement relative to power facilities. He also quoted Mellon as stating he had signed an agreement on a train in Canada. “The original merger agreement does not bear his signature,” Patman ex- plained, “but Mellon said later that he was present when it was signed and knew what was in it.” “The Aluminum Co. of America has been violating the anti-trust laws for the last 15 years, and no effort has been made to stop it,” Patman said. BAND CONCERT. By the United States Marine Band this evening at 8 o'clock in the audi- torium, Marine Barracks. Capt. ylor Branson, leader; Arthur 8. Witcomb, second leader. Overture, “Mignon” . “La Partida” ... “Valse Romantique” ....De Bussy Selections from “Fredericke”.....Lehar Characteristic, “Parade in the Fairy Wood"” . “Romance” Intermezzo, ..Thomas Alvarez ..Noack . Sibelius oonlight” . Frim) times and not wait for war.” "The, 10-year plan, he said, was able on. to year-to-year ...Saint Saens Marines’ hymn, “The Halls of Montexuma.* “The Star Spangled Banner.” A mother, whose life largely was con- | woman ever elected to the United States | The vote was small because of rain | the day and the fact Mrs. Caraway's | They served without pay as| from a| ! l Wins Big Lead MRS. CARAW STIMSON’S NOTE UPSET OVERTURES, JAPAN DECLARES (Continued From First Page.) "Chmese offered no resistance and Chi- | nese fire brigades made no attempt to save either of the buildings. City Is Quiet Today. Japanese marines landed about mid- | night and dispersed the rioters. The | city was quiet today, except for the | jostling of Chinese attempting to board | trains for Tsinanfu. The normally peaceful Japanese con- sulate was turned into a veritable fort- ress tonight, bristling with machine guns mounted on the flat roof of the | building |, There were unconfirmed reports that the Chinese were planning reprisals. | The Japanese consul said he was unable to control the Japanese civilian popu- | lation and that he was forced to ask that the marines be landed, after first ob- taining permission from the Chinese J‘ mayor, SITUATION MORE ACUTE. | Chinese Voluntcer Militia Plans New‘ Drive in Manchuria. TIENTSIN, China, January 13 (#).— Chinese newspapers here, commenting on a transfer of Japanese troops from Tientsin back to Shanhaikwan, said the situation about Chinchow is growing acute for the Japanese and that Chi-| nese volunteer militia bands “all over Manchuria” are renewing *warfare.” These village militia units, the reports | said, have declared they are deter- mined to fight the Japanese to the end, and on several occasions recently they have been spurred by successes in sur- rounding and practically wiping out small Japanese garrisons. One story said they had taken 60 Japanese pris- oners in’'an encounter. One battalion of the Japanese troops sent here when a crisis was threatened in this area after the occupation of Chinchow, was returned to the base at Shanhalkwan today. The Japanese ordered Chinese authorities to provide transportation for the battalion over the South Manchurian Railway. Fighting Is Reported. Japanese authorities said the troops | were' sent back because the situation here had become much quieter and large numbers of troops no longer are needed. Both Japanese and Chinese reports agreed that much fighting has been going on around Chinchow and west of it during the last few days. Chinese newspapers said the militia groups along the Peiping-Mukden Railroad were offering sharp resistance to Japa- nese occupation The new groups, these reports said, are demanding that the Nanking gov- ernment and Marshal Chang Hsiao- Liang give them assistance. New complications also have arisen, they said, out of the Japanese attempt to invade Jehol Province following the occupation of Chinchow. The Japanese consul general here issued a warning to Gen. Wang Shu-Chang, chief of the Hopel provincial government, against continuation of the anti-Japanese boy- cott, declaring if it is continued compli- cations are certain to develop. The Jopanese military information bureau issued a statement saying Chinese boy- cott groups in the Yangtze Valley are holding up Japanese goods valued at at least $35,000,000 in gold. Planes Bomb Town. Chinese dispatches from Harbin, Manchuria, said Japanese airplanes dropped six bombs on the town of Ping- | shien,” where the provisional govern- | ment of Hailungkiang Province is lo- | cated, killing 20 persons and damaging | government buildings. Chinese dispatches from Shan Haik- wan to Pelping today said Japanese forces advancing on Jehol from three directions had engaged Chinese de- tachments at several ponts. Despite & shortage of ammunition, 1t was said, the Chinese are putting up a stubborn resistance. The Japanese have modified their | tactics and are advancing on Jehol by | the Tahushan-Tungliao Railroad. In | the region through which they must pass there are still 10,000 Chinese mili- tiamen, including 3,000 at Tungliao, where serious fighting has been re- ported. | —_ Peruvian Newspaper Fined. LIMA, Peru, January 13 (#)—The government fined two opposition new: FRANCE TO RENEW GERMANY'S GREDI Paris Expected to Withdraw Reservations Against Short-Term Loans. By the Associated Press PARIS, January 13.—The best avail- able information today was that the Bank of France will renew its one- | fourth share of $100,000,000 interna- tional short-term credit to Germany when it expires next month. At the bank it was said today the Council of Regents may take action on the renewal question tomorrow. After the meeting of the world bank directors last week, Clement Moret, governor of the Bank of France, re- served the right of that institution to refuse a renewal of its share of the credit. The board had renewed the share taken by the world bank on the understanding that the three other participants also would renew. These are the Bank of France, the Bank of England and the Federal Reserve Bank of New York. Gold Standard Threatened. Hans Luther, head of the German Reichsbank, was reported to have told M. Moret at Basel that if the Bank |, of France refused an extension Ger- many might be forced to abandon the gold standard. Meanwhile Sir Frederick Leith-Ross, representing Great Britain, was con- ferring with French financiers in an effort to reach an understanding on reparations before the beginning of the projected debts conference at Lausanne. Those negotiations ended yesterday apparently without a definite agree- ment It was reported, however, that the French proposal which Sir Frederick took back to London, is for a two-year moratorium on the conditional pay- ments due from Germany and an issue of German railroad bonds to be turned over to France in lieu of unconditional annuities. Part of that bond issue would be turned over to the United States in payment of war debts. The British were said to have held out for a five-year moratorium on con- ditional payments and the suspension of uncondition! annuities as well dur- ing the same period. CRFDIT PARLEY ADVANCES. No Agreement Has Been Reached How- ever, by Bankers in Germany. B5SRLIN, January 13 (#).—Negotia- itons with a committee of foreign bank- ers concerning Germany's “stand still” credits have made considerable progress, it was said today, but any report an agreement has been reached or is im- minent, is premature. Last night the German representa- tive reported to a meeting of German bankers on the progress of the negotia- tions and there was considerable dis- cussion of a proposal to release a por- tion of the short-term credits in marks for investment in Germany. The impression here is that in any agreement reached on the basis of the present discussions, danger to the Reichsbank's foreign currency reserve will to a large extent be excluded. POLAND WANTS PAYMENTS. Warsaw to Oppose Moratorium or Cancellation. WARSAW. Poland, January 13 ().— It was semi-officially announced today that the Polish government will refuse to consider any projects relating to a moratorfum or annulment of its foreign | obligations. BRITISH WANT EXTENSION. —. | | Cabinet Meets to Consider Stand to Be Taken at Lausanne. LONDON, January 13 (#).—The cabinet met again today to prepare for the Lausanne veparations conference | which will start on January 25 if thei F;rench cabinet can be reorganized in time. There was no confirmation here for French reports of an agreement to pro- Dose & two-year extension of the debts | moratorium, gnd it was said unofficially | such an agreement could not be reached in the present political situ- | ation. It is well known, of course, that the | whole trend of European policy has | been to secure an extension of the | moratorium and speculation continues as to how long an extension may be | asked. | In London a five-year extension is | expected, but the official British view | has not been outlined. It was thought that the Lausanne conference might petition the United States for an ex- tension of from one to five years. REPORT IS SPIKED OF PARIS-LONDON DEBT AGREEMENT| (Continued From First Page.) that Germany will no longer 7 kind of reparations. S e whole thing, it was explai to the French in Baris was the remui of an unfortunate leakage. What happened is this: Conversa- tions were going on between the British, the French, the ltalians and the Ger- mans regarding the future of the rep- | arations problem. Each nation was asked to give its opinion on that ques- tion. The French suggested a two-year moratorium, the British suggested a five-year or possibly longer moratorium. When the British Ambassador at Ber- lin, Sir Horace Rumbold, discussed the | matter informally with the German | chancellor, ~Herr Bruening stated frankly that in his opinion, as well as in the opinion of most economic ex- perts, Germany will not be able to re- sume payments for a very long time— his expression was “an indefinite time." This was by no means a provocative statement. It was merely the expres- sion of opinion of the German govern- ment, but did not have the character of an ultimatum. y some queer occurrence people overheard thie telephonis. e versation between the British Am. bassador and his government and the news leaked out in a sensational form. which naturally angered the French When interviewed by a German press agency the German chancellor could not deny that this was his opinion about the ultimate fate of reparations. The German Ambassador at Paris was able to explain to the French, however, that this was not a “take it or leave it” statement. He told M. Laval that the whole matter will have to be dis- cussed by all the interested powers at Lausanne and the German government hoped that some agreement would be reached there, but that the French government must expect to hear that point of view expressed by the repre- sentatives of Germany. The French premier was satisfied with the explanations given him by the German Ambassador von Hoesch and considered the incident closed by an- nouncing today that France would con- tinue to extend her share of short-term loans to Germany for another three months. Kingsford-Smith in Calcutta. | dent Hindenburg. CALCUTTA, January 13 (#).—Air Commodore Charles Kingsford-Smith, papers yesterday under the new emer- gency law for publishing icles “in- jurious to the good repul of the who is flying & return trip from Eng- land to Australia, landed here this aft- ernoon. He plans to resume his flight Try for Choir in Bicentennial Masque JANUARY 13 125 ASPIRANTS REPORT AT THOMSON COMMUNITY CENTER. PPROXIMATELY 125 persons reported at the Thomson Community Center last night to try for places in the 120- In the photo are Dr. Albert W. Harned, director, with baton poised; seated, left to right, John Tasker Howard, composer and adapter for the music and also editor of the music division of the George Washington Bicentennial Commission, and Malton Boyce, accompanist.—Star Staff Photo. voice choir of the Bicentennial masque. Mellon Tax Plan Secretary Outlines Program to Provide $390,000,000 This Year and $920, 000,000 Next Year to House Committee. By the Associated Press. An outline of the administration’s tax-increase plan to provide $390,000,- 000 this year and $920,000,000 next fiscal year, as presented today to the House Ways and Means Committee by Secretary Mellon, follows: Corporation income taxes fo be in- creased from 12 to 12)5 per cent, to net $27,000,000 in current fiscal year and $60,000.000 in 1933. A super estate tax to be graduated from 1 per cent on estates of $50,000 to 25 per cent on those in excess of $10,000,000, from which $33,000,000 ls| expected within the coming 18 months. Individual income taxes to have normal rates at 2, 4 and 6 per cent, with surtaxes beginning with 1 per cent on incomes over $10,000, graduated up o 37 per cent on those between $100,000 and $200,000 and 40 per cent on those above $500,000, as compared with the present maximum of 20 per cent on in- comes in excess of $100,000. Personal exemptions to be lowered to | $1,000 for a single person and to $2,500 with one having dependents, with a credit of $400 for each dependent. This is expected to bring in 1,700,000 addi- tional individuals, making a total of | Federal taxpayers of 3,600,000, who are expected to pay an additional $83,000,- 000 for the last half of the current fiscal year and $185,000,000 in 1933. Three-fifths of the revenue is estimated to come from incomes in excess of $100,000. Revival of many of the miscellaneous taxes of 1924, including increase of one-sixth of present rates on tobacco manufactures and products except cigars; an increase of 1 cent on stock sales; extension of tax on admissions of 10 cents and above; a tax on manu- facturers’ sales of automobiles, trucks and accessories at 5, 3 and 2% per cent, respectively; a stamp tax on conveyance of realty of 50 cents for each $500 value in excess of $100; a tax of 5 per cent on manufacturers sales of radio and phonograph equipment; a stamp tax of 2 cents on each check and draft; tax on telephone, telegraph, radio and cable messages of 5 cents on charges between 14 and 50 cents, and 10 cents on those above. In the first six months in 1932, about $205,000,000 is expected to be netted from these miscellaneous taxes, while revenue amounting to $514,000,000 is ex- pected for the fiscal year 1933. Postal rates be increased to cover a deficit in revenues of about $150,000,000, although no specific rate is suggested. BRUENING TWICE | THREATENS TO QUIT Chancellor’s Plan for Nation- | al Unity for Parleys Fails | Dismally. BY A. R. DECKER. By Cable to The Star BERLIN, Germany, January 13— Chancellor Heinrich Bruening is re- ported to have threatened twice to re- sign yesterday, probably due to his fail- ure to line up the German Nationals (National People’s Party) and National Socialists (Fascists) in a United “Hin- denburg front,” and it appears that his national unity appeal to prepare Ger- many for the coming reparations and | disarmament conferences has failed dis- mally. Dr. Wilhelm Frick, deputy in the Reichstag for the National Socialists, or Nazis, speaking at Kempten, in Ba- | varia, said yesterday: “Even in a popular election the Na- tional Socialists will not lift a finger to support Herr Bruening. If Herr | Bruening’s cabinet does not vanish be- fore the elections, the National Social- ists will present a candidate from their owlm ranks, a man on whom you all can | rely.” | | | | Will Fight Bruening. ‘The Nationalists say that Herr Bruen- ing must go. This is their campaign | plank. When the Bruening cabinet | goes and the Nationalists come in, they will replace “cannot pay” by “will not | pay” which is at the worst more straightforward. Herr Bruening staked all on the re- | election of President Paul von Hin- denburg by the Reichstag. He staked not only his position as chancellor, but he also staked President Hindenburg's chances for re-election. Herr Bruening has lost, or so is the general belief in Berlin. It seems that Adolf Hitler, head of the Nazis, previously agreed to sup- port President Hindenburg, but when the German Nationals refused to sup- port Herr Bruening and President Hin- denburg together, Herr Hitler also had to_decline. Now it remains to be seen if Herr Hitler himself lost by this move, for his_supporters cannot understand Hit- ler's negotiating with his arch enemy, | Herr Bruening, even to support Pres.- | Four Results Possible. The results might be, first, President Hindenburg's refusing to run again, as & majority seems to be lacking; sec- ond, Bruening’s resigning because his plan failed; third, the Hitler party's splitting, and, fourth, a regrouping of all the Nationalist parties. Arthur Mahraun, head of the Jung- deutsch order,- has sent letters to all the German party leaders proposing a plebiscite to ask if the German people want President Hindenburg re-elected. Herr Mahraun is closely connected with the Democratic party. An official re- quest has been sent to the Reichstag | deans. (Copyright, 1932.) HELD IN CONSPIRACY 70 ROB POST OFFICE Neil J. Voorhees, Arrested at Newark, Faces Hearing in Brightwood Conspiracy. Neil J. Voorhees, 38, South River, N. J., was expected to have a hearing before United States Commissioner Needham C. Turnage today on charges of conspiracy to rob the Brightwood post office early in December. The prisoner was returned to Washington yesterday by Headquarters Detective Floyd Truscott after his arrest in | Newark, N. J. Police of No. 11 precinct arrested a man shortly after the robbery, who was sitting in a parked car containing bur- glars' tools and a number of stamps, they reported. It is believed informa- tion furnished by th an led to the | foreign loans. | was one in which the department urged JOHNSON DELAYS SECURITIES PROBE State Department Officials Testify Tomorrow on Inter- vention in Colombia. By the Associated Press. State Department representatives went to Capitol Hill today to answer testimony that they had intervened to influence New York bankers to lend money to Colombia, but the hearing| was postponed. | Senator ~ Johnson, Republican, of | California, asked the Senate Finance| Committee to delay the hearing until| tomorrow to permit him to study corre- spondence between the National City | Co. and the South American govern- | ment atout the loans. | Frencis White, Assistant Secretary of | State, and other department officials | were on hand to testity. | Department Explains Acts. | White, a specialist in Latin American | affairs, was to be called as a result of | yesterday’s testimony by an official of | the National City Co. that the depart- | ment intervened to encourage a loan to,Colombia. The department declared | last night it acted in the Colombian | case solely “in the usual exercise of | appropriate good offices” and ‘“the fostering of friendly relations between the two peoples.” The statement brcught a new out- burst of criticism from Senator Glass | of Virginia, former Secrelary of the Treasury, who is a long-standing foe of the State Department’s policy on The Colombian case, he ccntended.[ bankers to make a loan which they themselves did not approve. Oil Charge Denied. He construed it as an_attempt to present a “measure of truth” regarding its custom of looking over projected loans to other governments after “not telling the truth the other day” when a statement of policy was submitted. White had been in the committee room throughout the testimony yester- day and had a hand in preparing the department comment. It specifically denied that restoration of an oil con: cessicn to American interests had en. tered into the Colombian loan talks. This was a point Senator Johnson, instigator of the investigation, particu- larly sought to throw light on in his questioning of the bank witnesses. DISHONESTY IS CHARGED. LIMA, Peru, January 13 (#).—The newspaper El Comercio, in a bitter edi- torial, today said the disclosures on Latin American loans made before the Senate Finance Committee in Wash- ington revealed that relatives of former President Leguia had received huge commissions for promoting loans. While the revelations are painful to Peru, the paper said, they also are painful to the United States because they “reveal a lack of honesty in the American business men who handled the dark loans affair and a lack of honesty in American officials, who, be- ing aware that these were dangerous operations, favored the loan’s floating, inducing their fellow citizens to trust in bad business.” El Comercio added that the Senate's investigation will have the healthy ef- fect of finding out who was responsible for the tranzaction and that American bondholders will realize they were tricked by their own fellow citizens, who, it was said, induced them to par- ticipate in credit operations doomed to failure. “From a moral and legal viewpoint,” the paper concluded, “Peru is evidently entitled to revision of these fraudulent contracts since the existence of graft has been perfectly proved.” Germany’s Floating Debt Rises. BERLIN, January 13 (#).—Germany's floating debt has risen from 1,746,700, 000 marks at the end of November to 1,012,600,000 marks at the end of De- ‘official e;fi:r. i;l. to e | of taxpayers will be different from that | must scrutinize every appropriation.” MELLON SUBMITS TAX INCREASE PLAN AT HOUSE HEARING (Continued From First Page.) | receipts and expenditures of the Gov- ernment should be brought into bal- ance for the next fiscal year beginning with the coming July, so as to put an end at that time to any further in- creases in the public debt,” Mellon told the committee as he read from a prepared statement. “This is essential not merely for maintaining unimpaired | the credit of the Government, but also for reinvigorating the entire credit structure of the country. “The greater part of the present fiscal year has already elapsed and it is | impossible to avoid a large deficit for | this year. To cover, for the balance | of this fiscal year, all expenditures al- ready authorized and appropriated for as well as those called for by the ad- | ministration’s special emergency reliet | program, will probably require increase | in the public debt by $1,500,000,000 less | any amounts to be derived in the cur- ‘rent year through additional taxa- JMond siites Stresses Retrenchment. “I cannot overemphasize the im- portance of retrenchment. Without real | economy there can be no balanced | budget.” We are fully justified in calling |on the people to make further sacrifice |in order to supply their Government | with adequate revenue, but we are only Jjustified in making this call if at the |same time we eliminate every unneces- sary expenditure and see to it that just as ‘enforced rigid economy prevails in | every home in the land, so must it be | observed in every operation of the Federal Government.” After a discussion of the increase in expenditures in this and the last fiscal | years due to veterans activities, em- ergency construction, and the postal deficit, and the decline in revenue from taxation, Mellon said: “The truth of the matter is that our revenue system rests on a comparatively ncrrow base and that our tax receipts are susceptible to the widest variations in accordance with variations in busi- ness conditions. This is particularly true of current individual income tax collecticns, the instablity of which is further accentuated by the wide varia- tions in gains and losses derived from the sale of so-called capital assets.” Mellon reviewed the decline in big in- comes during the past two years, and turned to a defense of his plan to bring in 1,700,000 additional taxpayers by lowering the income tax exemptions. “It is sometimes suggested that our additional revenue requirements can be covered for the most part by in- creasing the income tax rates applicable to the larger incomes,” the Secretary continued. “The justification for such a proposal is that in periods of emer- gency the doctrine of ability to pay should be pushed to the limit, Would Boost Surtaxes. | “Leaving aside the economic ques- | tior® involved in drying up, even tem- porarily, those liquid resources which should be available for restoring the working capital of industry and com- merce and reinforcing our credit ma- chinery, a study of the figures leads to the conclusions that the necessary revenue cannot be derived from this source.” An increase by 100 per cent in sur- taxes on the big incomes would net only $200,000,000 Mellon said, although he recommended a 40 per cent surtax on incomes in excess to $500,000 and 37 per cent between $100,000 and $200.000, as compared to the present maximum of 20 per cent on incomes in excess of $100,000 “Many not now taxed are very defi- nitely in a position to make some con- tribution to the support of Govern- ment.” Mellon continued. “They should be asked to do so, taking into consider- ation ability to pay. This basic con- cept underlies the entire program which the Treasury Department is submitting for your consideration. It must form a part of any program, for without it a solution is impossible, and it is justi fied not only by necessity, but by equity and sound public policy. “I realize, of course, that arguments can be advanced against every increase in rate or additional tax proposed. This is true df all measures looking to an in- crease in the public revenue. But I trust that on tris occasion the attitude | nature, we circum- which, would stances As the proceedings got under way Mellon took his place in front of the large desk behind which the committee- men sat, and started to read his pre- pared statement. But he changed his mind and requested permission for Undersecretary Mills to do the reading. It required 40 minutes. Crisp Opens Inquiry. Representative Crisp of Georgia, ranking Democrat on the committee, opened the examination by asking Mills what specific increases the Treasury recommended in the postal rates The Undersecretary suggested that thé committee call Postmaster General Brown to explain how the revenues could be increased to meet the prospec- tive $150,000,000 deficit in that depart- ment. During the past 24 months, Mills said, the public debt has been increased by $4,100,000,000, and added: “The Treasury considers it essential to bring this borrowing process to a halt by June 30. We must do this by attacking Government expenditures as well as by increasing taxes.” He said “Congress must exercise self restraint in adopting new projects and knowing human pect under normal Asked by Crisp whether the admin- istration’s proposed stamp tax on bank checks and drafts would not increase hoarding Mills said it probably would have some effect, but this would not be great. No Money in Gift }l Asked why the Treasury did not pro- pose a gift tax, Mills sald “we won't get _any real money from it.” VERDICT OF SUICIDE RETURNED IN DEATH Charities Group to Provide Funeral for Jobless Man and Care for Aunt. A certificate of suicide was issued to- day by Coroner Joseph D. Rogers in the case of William Earl Rice, 25, who was found shot through the heart in his room on the second floor, at 1008 Seventh street, yesterday afternoon. Rice’s body was found by his aunt, Miss Kate Rice. She was grief-stricken over the suicide, explaining she had raised him since he was a baby. His mother and father are dead, she said body was stretched across a small bed, fully clothed, including an overcoat. A small-caliber revolver was lying on the floor near the side of the bed. Rice had been unemployed for many months, with the exception of a job at a fruit stand around Christmas time. Aunt Sewed for Living. Miss Rice, the aunt, said she had been mending clothes for a living. She had been given aid a number of times by the Catholic Charities, it was learned today at the headquarters of the Washington Community Chest. The Catholic Charities will pay the funeral expenses. The latter orgar- zation is a member agency of the Community Chest Attention is called to the prompte ness and efficiency with which the Community Chest organizations handle emergency calls for ald in a statement from Community Chest headquarters in reference to the Rice case. Statement Is Issued. The statement follows: “Within 30 minutes of the time when the Community Chest was told a news- paper reported that the man had shob himself and that his aunt, Miss Kate Rice, appeared to be in need of help. two workers, one from the Associated Charities and one from the Cathoiic Charities, were at the home, ready to do anything needed. “Because Miss Rice had been a client of the Catholic Charities about a year ago, Miss Marty T. McCracscn, worker for that organization, took charge, communicating with relatives at Mount Rainier and Boyd, Md., and srranging for one of them to stay with Miss Rice until the funeral is over, making funeral arrangements and underwriting the funeral cxpense and visiting the two insurance companies in which Rice had policies. She found that two poli- cles, of quite recent date, would prob- abiy be invalidated because of the manner of death of the deceased, but that something would be realized from an older policy. Asked Aid Year Ago. “The Rice family first came to the attention of the Catholic Charities more than a year ago, when Miss Rice asked for aid from the St. Vincent de Paul Society. One of the officials took an interest in the case at the time and | provided the woman and her nephew with food from time to time. “Their last request for help was made in February, 1931, and neither Miss Rice nor her neplew has asked help from the Community Chest or any of its member organizations since that time, this being shown by the records of the Social Service Exchange as well as by those of all welfare organiza- tions connected with the Chest. “Miss Rice is a dressmaker and has been able to make enough, by part- time work for neighborhood tallors: to pay for rent, clothes, food and fuel for elf and nep! . The nephew, she he could, but had not been employed since Christmas. She attributed his act to despondency over his inability to find wori. “Miss McCracken reported conditions to the Catholic Charities and that or- ganization is standing by to see that Miss Rice receives every care and that the dead man receives proper burial.” GREEN ASKS HOUSE PROBE OF PEONAGE Labor Head Wants Inquiry Into Conditions Among Workers on Mississippi Levees. By the Associated Press. Congressional investigation of charges that there is near peonage and slavery. in Mississippi flood-control work was asked of the House Labor Commttee today by Willlam Green, president of the American Federation of Labor He has received reports of “inhuman” conditions in lower Mississippi River work. Green recalled that Maj. Gen. Lytle Brown, chief of Army Engineers, had held there were no evidences that prie vate contractors were holding their la- borers in near peonage. Then he read a resolution adopted by the Mississippi Federation of Labor, ac- cusing Brown of “prejudice” and asking a congressional study of the charges. “I wish to supplement that resolution by the formal request,” he testified. “We are not satisfied with the inves- tigation that has been made. We know no labor representative was called in by the War Department to support the charges with additional facts. why the Treasury did not recommend luxury taxes on furs and cosmetics, “Minor luxury taxes have always been unsatisfactory, because they are diffi- cult to collect and are difficult (o make uniform,” Mills replied. “An honest merchant will pay his taxes and a dis- honest one will not.” Mills estimated that $20,000,000 could be obtained through a tax on cosmetics. Bacharach suggested that a stamp tax be levied on them. Representative McCormack, Demo- crat, Massachusetts, asked Mills if the gasoline taxes would hurt the automo- bile industry. “We considered the gasoline tax, and the only reason we did not suggest it was because of the feeling that the States had looked on it as their own, on which they largely rely,” Mills ans- wered. ‘““However, if the States con- tinue to tresp: on Fede! taxes, like imposing taxes on tobacco, I feel we can trespass on their field through the gas tax. I've always believed in c: between the States and the Feder: Government on taxes.” Liquor Tax Suggested. Mills said a Federal tax of one cent a gallon would bring in annually $150,- 000,000 of revenue. % Representative McCormack suggested a liquor tax would be the easiest to collect and would produce the most money. Mills smiled and said: “Yes, only the Constitution and Congress stand e a1 e iquor taxi - 000,000 in 1918, e Mills disclosed that the Tresury sent experts to Canada w0 study the gen: sales tax there, but declared it would be difficult to put such a general tax into effect in this country. The Undersscretary said making the tax increase apply on last year's in- come would be of no consequence to the individual income taxpayer or the small corporations because they usually paid Ly al He said he did not consider it a legitimate method of taxation, and that it would “discourage g, which, ad- mitting the factr, I still think is a thing.”) 'O?I:WM Bichase h also asked the previous year's taxes out of pres- ent i}::come “There is no fundamental injustice in making it retroactive,” Mills said. “The most disturbimg element to busi- neuwiuhnuu(ulnno!fiheoonrg- ment to put its own house in order.