Evening Star Newspaper, January 24, 1932, Page 2

§125,000,000 READY FOR BUSINESS AID Hoover Signs Bank Measure as House Passes $500,000,- | 000 Reconstruction Bill. Nation's effort to check de- and political leaders ent Hoover yesterday ction Finance within a In the flation, business Pres new Reconst Corporation into operation week or 10 days. With 1 patch to approf for the c ‘The Pr panding 1 eced House voted without debate ate the initial $500,000,000 llosal credit exp ident signed the capital of Federal Farm Land banks by $125,000,000, the third step in his business relief program, and came to an understanding with Demo- aders on two of the three mem- , remain to be appointed direc- tors of the Reconstruction Corporation Since the Sen not in session refore confirm the concur in the Hoover de- ntil tomorrow of support from all parts of the cov y u the legislation _ex- bs, both in person and also many volunteers fr ces in the business world. Siouid Reassure Investors. The Presid upon signing Federal Farm Land Bank bill, said T am glad to sign the third of our reconstruction measures—that provid- ing additional capital to the Federal land Banks. It should (a) reinforce the credit of the Federal Farm Land the Bank system and reassure investors in | Land Bank bonds banks to obtain rates lief and m the honest bast cumstances beyond been unable tempora grade. The (b) thus enable the capital for farmers at and (c) above all hope to many bor- banks who have done but because of cir- | ol, have | ke the | President lists tie mental debt moratorium ratification | and the Reconstruction Corporation | act as the first two steps in his relief | program No time was lost in recruiting the large organization that will be required | for the business of directing new credit into trade channels. Subject to the approval of the full board, Gen. Charles G. Dawes, president, and Eugene Meye) chairman of the board of the corpora tion, proceeded tentativeiy with a view to taking so much as possible of) the organ n from the old War Finance Corporation, The two officlals were in conierence muck yesterday with each other and with Andrew W. Mellon, Secretary of the Treasuiy. and Ogden L. Miils, Undersecretary or th» Treasury. Confers with Democrats. In line with his statement that he | would consult Democratic leaders on the selection of the three Democratic | members of the Reconstruction Board | of seven, the President considered a list | of 15 possibilities, with Senator Joseph T. Robinson of Arkansas, Democratic leader of the Senate: Speaker John N. Garner of Texas, and Senator Carter Glass, Democrat, of Virginia, one-time | Becretary of the Treasury While the conferees would divulge few details of the meeting at the White intergovern- | House and the President’s tentatve se-{ lections were unannounced, Jesse H Jones of Houston, Tex., one-time finan- cial secretary of the Democratic Na- tional Committee, was belleved to head the list Bernard M. Baruch of New York one-time head of the War Industries | Eoard, who had been prominently men- tioned to head the new corporation eliminated himself. At the same time he pledged whole-hearted support for the project and was quoted as having | said yesterday that “the opportunities for good are absolutely unlimited if the plan is wisely administered and cou- pled with a balancing of the budget.” Baruch Supports Hoover. Mr. Baruch, an outstanding leader of and contributor to the Democratic party, | was represented to be ctanding with | President Hoover in resisting all inter- | pretations -of the Reconstruction Cor- | poration plart as inflationary. Leaders | took the stand that there was a vast difference between the European infla- | tion through currency expansion and shrinking of the gold standard and the resent American plan to‘expand credit ing funds to established in- e to get adequate credit r present conditions. as maintained that credit wisely ted should be capable of recan- \e present oversupply of crops fuction with the fact that many e hungry and homeless. ed by law to making loans y and adequately secured” to inter- ads, banks, trust companies d loan associations, insur- panies, mortgage loan compa- credit unions, Federal Jand banks joint stock land banks, Federal inter- mediate credit banks, agricultural credit ns and live stock credit cor- 15, the corporation, if responsive ministration’s plans, will help ich as are able to help them- 1t will nies not waste its resou on projects pled. thoug t longer ch undoubtedly nces than do the average Expansion Hoped For. will operations It is a away the and to inspire necessary to of credit which itions be en- 1t with co and gigantic fear of the 15 hoped more aged to expan ir the Finance Cor- y to inspect any ormation in possession such as income tax g applicants must also produce information and records about business which the corporation Offi ion confidential of the Gov returns Joans an their the ave the eciding whether There is no scretion in d with the tion. A empowered to t by issuing bon guaranteed by the vernment, the corporation is expected e the additional money. by sale ich securities to the public, only nd as needed. House Acts Quickly. In the pressure for speedy action the House took precisely 59 seconds to put through the bill for a $500,000,000 in- itial appropriations as asked by the Presicent. It was regarded as the swiftest action on an appropriation so large Following the quick completion of legislation creating the Reconstruction Corporation, with President Hoover's signature at 6 o'clock Friday evening. the House took up the appropriation bill by unanimous consent immediately upon convening at noon yesterday. It quadruple this am ds and other securities if a was presented, with a favorable report | of the Appropriations Committee, by its Democratic _chairman, Representative Joseph W. Byrns of Tennessee. Plans to pass the bill on Mondsy had been cials, with requests for salaries running abagjoned overnight and the wmmn- » % JANUARY 24, ted dis- | fon agency. | hat seem hopelessly crip- | prepared to | for | James M. Beck of Pennsylvaria, a w ie, in_the National Radio RAL ONOIS DEN WAGECTSNEEDE Urge Executives to Study “Humane” Factors as Parley Continues. By the Associated Press CHICAGO, January 23.—Organized railway labor today declared itself un- convinced of the justice of a 10 per cent wage reduction and asked the managements to consider the “humane” as well as “practical” elements of the problem “The managements.” said David B. Roberson in a formal presentation of union views, “should be At least as zealous in providing additional employ- ment, in reducing part-time employ- ment and in relieving unemployment distress, as in solving their financial problems.” The reply arguments to the rallway presidents’ in favor of the voluntary sideration of the proposal, but instead invited new dicussion on another plane Managements Scored. said Robertson, did not be- reduction in earnings was re- “py any standard of exact jus- but was willing to negotiate “to determine whether the needs of the siluation com- Labor lieve & quired tice,” further pressing pel us to t volunteer a con common interest of management and labor in improving the health of the industry.” The managements as & whole were taken to task severely for the “unsound financial structure” which labor said they had bullt up in years of prosperity The unhealthy condition of many rai properties was laid to excessive obliga- tions The employes, Robertson said, had taken their share of the losses of the last two years and had “contributed more to the reduction of operating ex- | penses than any other factor.” | Questions Debt Totals. “A balanced consideration of the in- terests of investors, the public and the employes must resuit,” the labor spokes- man declared, “in the conclusion that as a matter of pure right and justice the railway employes could mnot be called upon and should not be called upon to contribute 10 per cent of their meager earnings for the benefit of other interests tn the railroad industry.” Robertson added, however, that labor was deeply concerned over the welfare of the industry. Although he disclaimed desire to minimize the financial difficulties of the roads, Robertson said “we are un- able to agree with the gloomy picture [+ * as presented by the Presidents’ | Committee.” Labor, he said, was unable to under- stand the statement that principal of $405,000,000 of railroad bonds, equip- ment trust obligations and other loans would becomé due this year. The Interstate Commerce Commission in the recent 15 per cent rate case listed a total of approximately $181,000,000, he said. Consideration _of “fixed charges,’ Robertson said, should include the obli- gations of those who had “invested their lives in the industry.” CANADIANS TO ABRITRATE. | MONTREAL, Quebec, January 23 (&) —The board of conciliation chosen to arbitrate in the dispute between the Canadian Pacific Raflway and the yail- | vay clerks on a proposed 10 per cent cut in wages will hold its frst busi- ness session here January 28, it was | announced today. Members of the board were sworn in today before Justice R. A. E. Green- shields, chatrman. Judge Greenshields was appointed by the Department of Labor at Ottawa, Errol McDougall was appointed by the railways and Prof. J P. Culliton represents the brotherhood ; Quake Felt in Mexico | | MEXICO CITY, January 23 (#)—A strong earthquake, accompanied by underground rumbling, shook Acatlan, in the state of Puebla, at 4:42 p.m. to- day | tee was called in extraordinary session yesterday morning to take action The Démocratic leadership, apparent- | 1y with an eye to benefiting by contrast | with the nominally Republican-con- | trolled Senate, shot the legislation [ through without debate. With a pound of his gavel, Speaker Garner declared “without objection the bill will be con- idered as read the third time, en- ed and passed Four of the seven members of the corporation’s board already are select- ed. Gen. Dawes, a Republican appointed by the President in advance cf the others to account for his f: ure to saill for the Geneva Disarma- | ment Conference as chairman of the American delcgation. Secretary Mel- lon, Eugene Meyer, governor of the Federal Reserve Board, and Paul Bestor, Federal farm loan commission- | er, all Republicans, are members ex- | officio. Among those prominently mentioned | in" connection with the three Demo- cratic vacancies on the board are An- gus W. McLean, former Governor of North Carolina;’ M. B. Wellborn of | eral Reserve Bank in that city; R. 8 Heck and P. H. Saunders of New Or- leans, Oscar Newton of Atlanta, Na- than Adams cf Dallas and J. K. Pres- ton of Chattanocga, Corridors of the Treasury Depart- ment were crowded yesterday with per- sons seeking jobs with the corporation { Finally guards had to be stationed at ! except those on Government bus A hundred applicants were waiti; Mr the jam. By noon 400 had applied and ‘applications by letter and ' tele aph brought the total to 1,100, rluxg from stenographers to bank from nothing to $25.000 & year. Senator Robert B. Howell of Nebraska whether the amendment to the Constitution now before the House, known as | the Beck resolution, shall be adopted for the purpose of settling the prohibition um_tomorrow night at 10 o’clock. wage cut did not exclude further con- | he conclusion that we should | tribution to advance the | was | | Atlanta, former governor of the Fed- | the dcors of the building to exclude all Meyer's office at 9 am., and he had to slip in by a rear door to avold | | | | (left), a dry, and Representative et, who will debate the gquestion as to ORY LAW 1S ISSUE FORFORUM DEBATE Senator Howell Will Argue| With Beck on Plan Over Radio. The prohibition question in this coun- fry will be the subject of a debate in | the National Radio Forum tomorrow night. Senator Robert B. Howell of Nebraska and Representative James M. Beck of Pennsylvania will discuss the | question a5 to whether the amendment to the Constitution now before the | House, known as the Beck resolution, shall be adopted for the purpose of set- tling the prohibition issue The National Radio Forum is ar- ranged by The Washington Star and broadcast over the coast-to-coast net- work of the National Broadcasting Co. Beck to Give Wet Plea. Mr. Beck, wet leader of the House Republicans, will take the afrmative in the debate. Senator Howell, author { of the bill presented in the last Con- gress to strengthen the prohibition en- forcement laws for the National Capi- tal, will oppose the resolution Mr. Beck was at one time Solicitor | Geferal of the United States and has | been prominently mentioned as.a po- | tential candidate for the Republican | | senatorial nomination in Pennsylvania this year Suggestions that a_ referendum plank on prohibition be placed in both Re- | publican and Democratic national plat- | forms this year have been widely made | The only effective and binding way of | holding & national referendum on_the | prohibition question, it is declared, is through the submission of a new | amendment to the Constitution, either {modifying or repealing the elghteenth | amendment. Raskob Stand Known. | Chairman John J. Raskob of the | Democratic National Committee has ;pl‘oposrd to the Democrats that they | insert “a home rule” referendum plank in their platform. Senator Hiram | Bingham of Connecticut, Republican, | oftered a resolution in the Senate pro- | posing a referendum on the wet and | dry issue, but this was defeated. Rep- | resentative A. Piatt Andrew of Massa- | chusetts, Republicati, also has opposed a referendum plan. REFUSAL TO INDICT IN HAWAII CHARGED TO GRAND JURORS ___(Continued Prom First Page) attorneys last Wednesday on the ground that the prosecution was un- | duly delaying the case and damaging the constitutional rights of the four for a prompt trial. Gillland was seek- | ing a special prosecutor in the murder | case, but his assistant, Griffith Wight, | took the case to the grand jury the next day after the dismissal motion | was filed. IncMciency Charged. Territorial Senator W. H. Heen, de fense attorney in the case of five men | accused of having attacked Mrs. Massic | Jast September, in a speech on the | Senate floor charged the city and! county attorney's office with gross in- efficlency in prosecuting that case, which resulted in a jury disagreement. Heen was discussing a bill which would provide an appointive public prosecutor for Honolulu under the jurisdiction_of the territorial attorney | general. The incumbent city and | county attorney is an elected official. Heen asserted the department of the city and country attorney was “too in- competent to do anything to help any- body. It embarrasees me to talk of this, since I was an attorney for some of the defendants. but the prosecution | fell down completely because of the in: | efficiency of the first deputy city and county attorney and becaus of the in- competence of the Detective Bureau.” | The House passed and sent to the | Senate the administration bill striking | from the present law the requirement for corroborative testimony in cases of | assault upon women. The House bill prescribing the death penalty in all such cases is also before the upper house. RHEEM INVESTORS MAY GET $250,000, RECEIVER INDICATES __(Centinued From First Page.) private desk at_the Swartzell, Rheem & Hensey Co. office on Fifteenth strect These securitics were taken over by the trustees of the bankrupt corpora- tion and Mr. Shinn has started pro- ceedings which he hopes may lead to their recovery. According to the report, Rheem also had & $100,000 insurance policy, with a cash surrender value of $21,000, which was transferred to his wife while the bankruptcy proceedings were pending. It is expected steps will be taken to recover this palicy Other items mentfoned in the report as subject to recovery are an expensive automobile owned by Rheem and stocks and bonds placed in various banks as collateral for loens. It is belleved thing may be salvaged from securi- in the banks after the loans are Another sult secking to restore an original trust on the Shoreham Office Building was filed yesterday. One such suit_already has been tried and now is | in the hands of Justice Letts awaiting his desicion. 1t is understood, however, the second suit embraces various matters not cov- ered in the original litigation, and which, scéording to the petitioners, strengthens their complaifit, [4 | cussing with my attorneys. TATE POLICE BACK LONGAIDEINFIGHT Governor - Senator Leaves: State for Washington. King in Charge. By the Associated Press. NEW -ORLEANS, January 23 —State | police tonight backed up one of two rival claims for the governorship Louisiana, which were sel up s Huey P. Long rode to Washington for the be- lated ceremony of taking his seat in the United States Senate. of | As soon as Long's departure was es- tablished, Alvin O. King, who was left in charge as acting governor by Long. called out highway policemen in Baton Rouge to thwart any attempt by Paul N. Cyr, the elected lieutenant governor, | to selze the State government and take over the executive chair. The policemen were stationed fn the rotunda of the State Capitol and around the Governor'’s Mansion, where Long's three children are staying in the care of Mrs. Long's sister, Miss Prentice Connell. Meantime Cyr had left New Orleans | for his home in the small South Louisi- ana town of Jeanerette, 100 miles from Baton Rouge. Before going he said privately that he would confine his fight to legal channels and_would make no play to take over the office by force, although he considered himself Gover- nor by right of his election as lleuten- ant governor. King took the situation calmly, re- tiring early in the Governor's sulte of a Baton Rouge hotel, where he sald he would live for the time being as acting chfef executive. Speaks to Crowd. Just before stepping aboard his pri- vate car attached to the Crescent Lim- ited that left at 8:45 tonight, Long said to & crowd of several hundred persons gathered at the station to see him off that King would be their acting Gov- crnor as soon as he had crossed the State line 40 minutes away The Governor-Senator, who has been the central figure in one of the strang- est politicel mixups in American bis- tory, tried to steal aboard the train through a rear entrance, but the crowd made him come out for speech. “I just want to say goodbye” he said. ~“It's a fond goodbye for the time being only. I will soon be on my way to Washington and Alvin O. King will be your acting Governcr. He has been Lieutenant-Governor for the past | four months.” He then fought his way through the hand-shakers back to the train, where he joined his wife and a group of State officials who are accompanying him to Washington King was brought into the forefront of the Louisiana_political arena when Cyr took the Governor’s oath four months ago in his unsuccessful effort to oust Long as Chief Executive through the courts on the claim he was attempting to serve as both Gov- ernor and Senatof. At that time Long declared Cyr has “juggled himeelf out of office com- pletely” and recognized King, president pro tempore of the State Senate and next in line of succession. as Lieu- tenant-Governor. Since then King has been drawing the Lieutenant-Goy- ernor's salary and exercising that of- fice’s functions. Will Arrive Monday. Gov. Long will arrive in Washington Monday to take his delayed oath as junjor Senator from Louisiana. The ceremony of turniog from governor to Senator will be witnessed by the dozen Louisisna officials who are accompanying him to the Capital Long Jhelieves that, he, hes set, his politicel” house in” order th' Loulsiana, but will keep his eye on the State If Cyr attempts to recleim his title, Long might postpone his Senate oath and fly back to Louisiana to fend Cyr out of the way. Before going to Washington, Long perfected a law firm to be known as Long and Wilkinson. He plans to prac- tice law in New Orleans in partnership with Hugh M. Wilkinson while serving in the Senate He expects to take the Senate oath next week and then return to the State with his official delegation, including Mrs. Long, O. K. Allen and John B Fornet, Governor and lieutenant gover- nor designates, respectively; Mayor T Semmes Walmsley of New Orleans, T H. Harris, superintendent of State edu- cation, and Seymour Weiss, his political alde. Has New Wardrobe. The Long wardrobe was completely outfitted for the trip to Washington and is stored in 10 new handbags along with elaborate golf equipment, Long being a golf duffer of a few months experience. He holds a strange silence over his| Senate plans. Usually he is a free talker, but when asked today by report- rs for his views on national legislation e grinned and said “Boys, I'm sorry, but I haven't a thing to say. 1 haven't a thing but to wish you boys all the good luck in the world.” Late today Cyr issued a statement in which he said he had not quit the fight Interrupted in conference with his attorneys, Cyr sald “You can say 1 am not through. I contend that the moment Long takes the oath of office as United States Sen- ator in Washington, at that same in- stant I become Governor of Louisiana.” Asked whether he rther legal action, Cyr said “That is the matter I have been dis- It is quite likely T will, but in just what form I am not in a position to say now. I am keeping a close watch on Long and his movements and will be guided accordingly.’ SEAT AND OFFICE READY. fu Capitol Officials Prepared Louisiana Senator. By the Associated Press Senate <officials have heard nothing about Gov. Huey Long's plans, but everything is in readiness for him if he to Greet Colds . Are Catching : To prevent the spread of infection— Turn Your Face or Cover It [ When You Cough or Sneeze If you have a cold. avoid unnecessary contact with other persons. Breathe fresh air. Sunshine and good ventilation are essential. This is true of your place of wark as well as your sleeping room. Association for the Preventisn Telephone, Distriet 8311 a farewell | HOOVER APPLAUDS PRESS 0LUB FETE | {Heads Group of Dignitariesl at Institution of New 1 President. President Hoover headed & large | | group of dignitaries last night in as- | sisting the National Press Club induct | | into office its newly elected president | Bascom N. Timmons of Amarillo, Tex., | Washington correspondent for & num- | | ber of leading dailies { Speaker Garner of the House pre- | | sented to Timmons the gavel he will | | wield as the twenty-fourth president of | | the club. The handle i8 made of the | leg of a deer and the head of the horn | of & Texas bull, Congratulated by Bulkley. Senator Bulkley of Ohio, in a brief speech, congratulated Timmons on his election as head of the club. Arthur (Bugs) Baer, newspaper columnist and | humorist, was master of ceremonies. | A gnln entertainment program was | provided by prominent radio artists. | These included Irene Beasley, blues | singer, and Tito Guizar, tenor, both | | Columbia Bmadcnsnng System artists, | and Richard Crooks, famous American | tenor. There also were selections by | the United States Marine Band and a | motion picture called “Tiny Tim,” in | which members of the Press Club took the leading parts. President Hoover remained through- out the entertainment program, a por- | tion of which was broadcast over | WMAL and a coast-to-coast Columbia network. Mr. Hoover frequently ap- | | plauded the artists. | His First Visit. | | It was his first visit to the club and he was given an ovation as he entered | | the auditorium. Mr. Hoover was fc- companied to the club by Theodore Joslin, one of his secretaries. Theodore Tiller of the Washington Times read, at the close of the exer- ‘('!M'S. tributes to Richard V. Oulahan and Graham Nichols, two members of | | the club who died recently. | | 'The exercises were witnessed by | | 1,000 persons, including members of |the eclub and their invited guests. Dancing followed the formal inaugural | ceremonies. | . (CONGRESS PROBE | OF HAZING SOUGHT | / | Tennessee Student of Gulf Coast Academy in Hospital and Father Blames Blow, By the Associated Press. MEMPHIS, Tenn., January 23.—A re- | quest that Senator K. D. McKellar seek & Federal investigation of student haz- | ing at the Gulf Coast Military Academy at Gulfport, Miss., is contemplated by Erich B. Wiesner, Memphis department store executive, who says his son was beaten there by an upper class man. | Erich B. Wiesener, jr., is in a Memphis | bospital recoving from a mastoid opera- tion which his father believes resulted from a blow on the head with a broom { handle. | The merchant says he has learned a senior struck young Wiesener and in- | | flicted a severe scalp wound because he | | objected to the manner in which the | Memphis boy shined his shoes i Wiesener sald he would leave for | | Washington tonight to present his re- quest for an investigation to Senator McKellar. contemplated &ny | wants to take his seat as Senator. Since the beginning of the session, a desk with Long’s name on it has been waiting for him in the Senate chamber It is in the rear row on the Democratic cide, next to Mrs. Hattie Caraway, Sen- ator from Arkansas. An office in the Senate Office Build- | ing also is all ready for Long’s occu- pancy. It is on the first floor on the far side from the Capitol, where most new Senators are assigned. | Long’s office will be next to the quar- ters of Senator Borah, Republican, Idaho, who has retained a suite among ! the new Senators for many years. | | of Teberculesis 1082 11th St. N. | cently 1932—PART ONE. Above, left to right: Bpeaker Garner, Bascom N. Timmons and Senator Below: President Hoover with Theodore Joslin, one of his secretaries, Bulkley. spectators at the ceremony. —S8tar Staft Photos. MUNICH THRONG ROUSED BY HITLER Parties in Power Must Go, He Says, Blaming Versailles Treaty for llls. By the Associated Press. MUNICH, Germany, January 23.—A large meéting thundered applause to- night as Adolf Hitler, leader of Ger- many's Fascists, declared the political | parties now in power mush be swept away. His speech was in answer to a state- | ment earlier in the day by Chancellor Heinrich Bruening that a Hitler gov- ermnment could do no more than the present government, for the ills of Ger- many are caused principally by the Versailles treaty. “To Bruening's assertion that we couldn't have done differently, the an- swer is his government is only slowly beginning to do what we have been de- manding for years,” Herr Hitler sald. ‘The Nazi chieftian declared the Ger- man revolution was the origin of all the nation’s ills and the parties now in power must be brushed aside because they aided and abetted that revolution. “Bruening expects the Lausanne con- ference—if it happens at all—to bring alleviation from reparations,” Herr Hit- ler continued. “If that's the idea, Lausanne never will happen.” His hearers cheered mightily when he advised the chancellor to consult the country, saying, “If the government says we won't go, we reply we will throw you out as sure as I stand here.” HITLER STAND ASSAILED. Bruening Scores Rejection of Hinden- burg For Another Year. BERLIN, January 23 (#).—Partisan politics caused Adolf Hitler to reject the government's suggestion that the term of President Paul von Hindenburg be extended a year by the Reichstag, Chancellor Heinrich Breuning declared today. The declaration was included in the chancellor’s reply to the National Soclalist leader, who informed him re- that, although a supporter ol the President, he would not throw his strength behind the Breuninz govern- ment_to keep Marshal von Hindenburg in office. “From a patriotic standpoint, I find it surprising that you make partisan rnlitlchl conditions chiefly responsible for Germany's ills,” the chancellor said. He added that n a government to Hitler's liking would have to continue along the lines of the present adminis- tration. The chancellor received aid and com- fort from Dr. Hugo Eckner, dirigible designer, who urged in a radio speech tonight that the nation stand solidly behind him in the difficult task meeting his opponents in the coming reparations negotiations. Attacks on the chancellor at this tim injure his authority in the eyes of the world, Dr. Eckner said. He described President von Hindenbury the fatherland’s strongest mora as asset, | cause he possesses the confidence of the world. A = Slang Enriches Language. NEW YORK.—Blang ‘“enriches the Janguage and may be the literary prod- uct of tomorrow” was the answer of two English professors and a lexicographer to alism Prof. Dr. Allan Binclair's contention that “we are returning decadent jargon of the jungle.” be- | |POWER TAX PLEA STIRS HOUSE BODY SET TO DRAFT BILL _(Continued From First Page.) | lowering the income tax exemptions to | take in about 1,700,000 additional poten- | tial tax payers, bringing the exemption for martied men from $3,500 and heads of families to $2.500, and for single persons from $1,500 to $1,000. This recommendation has been resisted strongly by many of the Democrats and sisted that tre increase in income taxes shall fall only on those better able to pay. Exemptions Cut Likely. | But it s now reported that some re- duction In exemptions may yet be made | in the bill; that some of the Demo- | crats as well as the Republicans are | considering the proposal more favor- ably. Certainly there will be a strong | effort in the committee to bring about | such legislation, even though it fails. | The administration’s tax plan con- templates additional levies on tobacco manufactures and products, except on | | cigars; stamp taxes on transfers or| | eales of capital stock: extension of the present tax on admissions; a manufac- furers' tax on sales of automobiles, | | trucks and accessories; a stamp tax on conveyances of realty; & manufactures | sales tax on radio and phonograph equipment; a stamp tax on checks, and |a tax on telephone, telegraph, radio | and cable messages. |~ Bpeaker Garner indicated yesterday to representatives of the automobile | industry that the Democrats preferred, | if possible, to raise the revenue needed, | aside from the increased income taxes, lon & few industries, perhaps two or three, rather than to spread them over | a large number. He pointed out that in this way the revenues could be more | | easily collected and at less expense to | the Government. The automobile rep- resentatives protested at the committee hearings strongly against the proposed sales tax on automobiles and trucks. Elcctricity Tax Urged. The Demoerats, in addition to a tax on electricily, alto are considering & gasoline tax and increased taxes on sales of stock. It was admitted yester- day that the proposed tax on electricity would have to be worked out carefully so as not to interfere with the rate | schedules set up by public utility com- | missions throughout the country. Un- doubtedly, it was said, it would be | passed_on to the consumer in some way. Representative Crisp has estimat- ed that revenue amounting to $350,000,- 000 a year could be raised from a tax on electricity and that another $160,- 000000 could be raised by a one-cent- a-gailon tax on gasoline. The Democratic leaders of the House are intent upon Keeping down govern- mental expenditures to a minimum as one means of meeting the Government deficit. Already, in round figures, $10,- | 000,000 has been lopped off of the two apprepriation bills that have been pre- sented to the House, as compared to | | the budgetary estimates submitted to Congress. An effort is to be made to | scale down all the appropriations on | all the bills that come before the House. | 'The witnesses appearing before the IWays and Means Committee have pro- | tested vigorously against increased | levies on the industries they represent. | Tomorrow the hearings will deal with the administrative features of the law proposed, taxes on tobacco, motor busses and telegrams. Loudoun Democrats to Meet. | LEESBURG, Va. January 23 (#).— The Loudoun County Democratic Com-' | mittee will meet here Tuesday to plan | |a campaign to preserve the political | | integrity of the eighth congresstonal | district. Committees probably will be | named” to_Jjoin legislative represent- some of the Republicans, who have in- | INDUSTRES FIGHT PROPOSED TAKLIT Automotive, Radie and Real Estate Men Protest Treas- ury Program. The most vigorous protest that has yet been presented against the Treas- ury Department’s proposed tax increase program was made yesterday before the House Ways and Means Committee by representatives of the autorhotive and radio industries and the Natlonal As- sociation of Real Estate Boards Spokesmen for the automobile and radio industries opposed ths proposed 5-cent manufacturers' sales tax on the products of those industries, while the Real Estate Assoclation argued againat the recommendation for a Federal levy on real estate transfers. “These taxes will defer, and possibly defeat, the vitally important program of getting the people back to work,” said George H. Graham, vice president of Rockne Motors and spokesman for the National Automobile Chamber of Commerce, referring to the automobile excise tax. “They are a direct as- sessment on the depleted incomes of the American home.” Consumer Would Pay. Frank D. Scott of Washington, gen- eral counsel for the Radio Manufac- turers' Association, picturing serious conditions in the industry, said the radio sales tax “‘as a depression tonic would Fave the effect.of carbolic acid,” He sald employment in the industry ai- ready had dwindled from 500,000 in 1928 to not more than 150,000 this year, The spokesmen for both the automo= bile and radio industries told the com- mittee frankly the proposed tax, if levied by Congress, would be passed on to the consumer through increased prices. ‘They declare with equal em- phasis this would mean & shrinkage in sales and thus lead to further unem- ployment and retrenchment in both industries. . Nathan W. MacChesney of Chicago, counsel for the National Association of Real Estate Boards, termed the pro- posed restoration of the real estate con- veyance stamp tax “a nuisance tax." He sald it never produced more than $8,000,000 before and would yield less than $4,000,000 now. Real estate, he declared, represents 15 per cent of the wealth of the country and already bears 85 per cent of it taxation. Already Overtaxed. Thomas P. Henry of Detroft, presi- dent of the American Automobile As- sociation, appeared in behalf of the “owners of automobiles.” He said the auto tax should not be approved be- cause it was Pederal invasion of a field that already was overtaxed by State, county and mMmunicipal governments. High gasoline taxes, he asserted, had led to racketeering and evasioh on & high scale, “We concede,” sald Mr. Graham, “that hobody wants to pay taxes and that most people will regard the ideal tax as oné impoted on some one else. We are sure the members of this com- mittee and of the House generally are against this tax. Nobody wants it but the Treasury Department. Only two excuses are made in favor of it—that m\; need money and it is easy to col- lect. “You would not levy a capital tax, confiscate a dead man's entire estate, tax railroad passenger fares, make the farmers pay the Government for mov- ing their wheat or increase corporation income taxes to a point where it would destroy businbss incentive. Neither should wrong be done to ourselves 4pd our customers and-a reviving business bé: strangled. ¥ “Ten per cent of the gainfully em- ployed people of the country take their Jivelihood directly or indirectly ffom the automobile business. It séems to us & calamity that just when we are gathering momentum we are threat- ened with & tax that will take from motorists & greater sum fhan the total earnings of all the automobile manu- facturers in the calendar year 1931. Pald 10 Per Cent of Total “There are 26,000,000 owners of motor vehicles in the United States, more than the number of telepho) subscribers. In 1931 they paid $1,022,« 000,000 in taxes, 10 per cent of All taxes collected by all Government divi- sions. The Treasury says this added tax would bring in $121,000,000. We figure it would yield not more than $75.000,000. “Loose thinkers still believe that & tax on automobiles is paid by manu- facturers or wealthy buyers. The sale of automobiles costing above $2,000 is less than 1 per cent of the total Eighty-five per cent of all automobiles sold are priced at less than $750. Two- thirds of all motor car buyeérs haveé in- comes of $3,000 or less.” B. J. Grigsby, a Chicago manufac- turer of radio recelving sets, cited the experience of his company 45 an ex- emple of the condition of the whole radio industry. He said his company employed 14,000 persons in 1820, 4,000 in 1930 and about 2,500 now. Business has slumped from $60,000,000 a year to $14,000,000 last year. Representatives of both the auto- mobile and radio industries said high tariff barriers had seriously affected their export trade. Mr. Graham pointed out that automobile manufac- turers had established factories in Can- ada to put out export cars because the Dominion had tariff rates which had not encouraged prohibitive foreign rates in retaliation. SEED LOAN FRAUD CASE IS PREPARED Alabama Grand Jury to Get Evidence in Opening Tomorrow. By the Associated Préss. DOTHAN, Ala, January 23.—Evi- dence of widespread fraud in obtaining loans under the act of Congress making funds available in 1930 for farmers to purchase seed, feed and fertilizer, Mon- day will be submitted to a Federal grand jury here. A few arrests, involving the county farm demonst-ation agent and his sec- retary, have been made over a period of s2veral months, but Arthur B. Chil- ton, U. S. district attorney, intimated the grand jury would investigate several score other cases. Charges against the first persons arrested last Fall that they attempted to intimidate witnesses also will be pre- sented before the grand jury. Six col- ored men, witnesses in this case, sought sanctuary in the Montgomery County Jail after they alleged threats had been made against them because of their testimony. Agents of the Department of Justice working under the direction of Louis Denette, special agent in charge, and Harry S. Barger of Washington, spscial Assistant Attorney General, have been here several months, gathering and as- sembling evidence of alleged frauds. J. O. Middleton of Montgomery, as- sistant United States district attorney, has been here three weeks aiding in the work of preparing evidence For the atives in Richmond. | SRS S5 k Many attempts have been made to establith a universal language. Vol puk. inventsd in 1877 by a German t0 » | priest, was the first scientific artificial to Geneva, Dale, Counties. !language to gain any support. grand jury. Summons for 150 witnesses have been issued. While the grand jury will confine its investigation to Houston County, De- rtment of Justice agents in the 'ruc ew weeks have ded::rr activities ee Covington