Evening Star Newspaper, March 29, 1932, Page 2

THE EVENING STAR. WASHINGTON, D. C. TUESDAY, MARCH GARNER: APPEALS FOR TAX MEASURE Proposes .Dropping of Poli- #es—Substitute for Sales Levy Is Drafted. (Continued Prom First Page) i the Buty of the Fedéral Governient 10 &ustAin its credit “I was ready,” said Mr. Garner. “to sacrifice my political career to balance the budget, if that sacrifice became nécessary. ‘That speech will never be de, for the Democrats organized the use.” Mr. Gatner said that in the first interview he gave in Washingion when he returfied for the openihg of Con giess he sfressed the need of maintain- ing the finanelal inte@rity of thé Re- ptibiic “I have maintained that it is the highest duty of the House,” said Mr. | Garner, “to levy sufficient taxes to sus- | tain the fAnaffial iftegrity of the country Mr, Garner told the House that a Democratic Poliey Commitiee, eom= posed of 10 Members of the Sénate and 10 members of the House, was organ- ized, and that the committee had held frequent meetings in his office. ©On January 26, he sald, that committee de- cided “it is of primary importance that the budget be balanced promptly " “I believed it then ahd T Believe it now,” said Speaker Garner amid cheers and applause Speaker Gariiér's appeal was made today in face of repeated declamations by the majority of the House Demo- crats to follow Acting Chairman Crisp of the Ways and Means Committee, and Representative Rainey, Demotratic floor leader, in their action on the revenue bill “In the hearts of these fen. and in their conversation. they thought it more patriotic to take into their confidence the entire membership of the House," Mr. Garner said “From then until last evening I did not feet again with the committee. 1t whs the agreement in the dellberations of this committee that the bill would be non-partisan and that it would yield #ufficient revenue fo balance the budget. “In view of that background, I think I have the right to ask that the mem- bership on the other side of the aisle fi‘“ with us in passing legislation to lanice the budget Always Opposed Sales Tax. “The committee found it impossible to find sufficient sources of revenue to balance the budget unless we went into & sales tax. My reply was that 1 had always opposed a sales tax, and I am against it now. but I think thore of my eountty than I do of any theoty of taxes. 1 would vote for the worst tax oséible, in order, in this emergency, to lance the budget.” aker Oarnet discussed the rigit of freedom of judgment to be exercised by members of the House, and don- oluded, “you said that we should rot hive 4 sales tax. Now 1 appeal not only t6 my party, but to the entire House and to the country. 1t is vour arafount duty to help the Ways and eans Committee to restore some of the taxes in order that the financial integrity of ouf countfy be presérved.” Bpeaker Oarner skelohed the result in finaneial circles that followed the res jection of the sales tax by the House, and various amendments which strick out impoftant févente-falsing pro- vikions. “We found ouf Pilhg’! goihg down more than it ever did ore in & Eiti- we found sharp tates securities. 1ar o, Yeflwm et Chited B Debacle Possible Consequenhce. teductions in "“That means that $1,800,000.000 of foreign money, the eapital of people Who haAd pub thelr“trust in the banks of our cotntty béekuse they felt it the #afest place in the world to put their wealth, was being withdrawn. When they heard throughout the wcrld that there was some @oubt as to whether this | Congress woilld balance the budget they withdrew their wealth.” Mr. Garher predicted that if Con- #tess does not pass the tax bill there will be a terrible bank debacle such as has never been known in the history of the world. ~ “This committee s going to bring | you in a program.” he said. “I hope | you will support it. You cannot get!| ust the taxes you want. These men fom 24 States are patriotic; they want to serve their country and they want | Hand Blown Off BOY IS VICTIM OF EXPLOD- ING BOMB. JAMES BCOTT APPLEBY, Ten, was reported resting eomfortably at Emergency Hospital this morning after an aceident in which he lost his right hand when an ahtique bomb ex- ploded at the home of his parents, Mr and Mrs. Scott Apflpleh\‘_ jr., 2501 Thir- tieth street, yestérday afternooh. Young Appleby was pla¥ing with the explosive, which was an old type detonator shell and belonged to His father's colleetion of firearms, wheit he dropped the mis- sile on the floor. Fragments from the bomb plerced the ceiling of the trophy | room, Knocked out two windows and the glass of the front room and set afire curtains in the room. One piece struck the boy's hand, tearing Away two fingers. His mother, who was in the next room. rushed him to the hospital, whefe his hand was amputated. right at this time. The Republican side is pledged fairly and justly in helping to give the country money enough to balance the budget.” Minority Leader Snell also reeeived extraordinary applause. Acting Chairinan Orisp of the Ways and Means Committee then took the floor and asked for order and close at- tention as he was prepared to present the aifernativé program that the Ways and Means Committee had decided to present for cohelderation of the House “Sofme months ago.” he said, “I was convinced that it was vital to the wel- tare of ihie country to balance the bud- gét, and 1 believe that 1 serve my dis- itict and my party best when 1 serve my country best. and my best efforts have been devoted to bringing out & tax measure which will yield sufficient rév- enue to preserve the financial integrity of our beloved country.” Attitude of Committee. Represeniative Cilsp said that the Ways and Means Committee would not attémpt to put the manufaeturers’ sales tax again in the bill He explalned | tHat the hew sehedule of taxes intended to substitute for the gales tax had béen prépared by a subcomimittee &hd ap- proved by the Ways and Means Com- mitte itself. The niew 1ist of taxés he said, had been cohtidéred by the com- mittee in a bi-partisah manner The House, Mt. Crisp 3“"' was at| Tiberty of course to voté down any of | these proposed taxes if it saw fit. But if they were voted down, substitutes weculd have to be found. The sub- committee would centifive in existence and give cohsideration to any substi- tutes that might b necessary. He gn- nounced that he would propose new texes mMeédiatély. The Acting chair- Man then made a statement to the House detailing all the proposed new Laxes. Stock Transfer Question, !that it is on the cards that a pure | LONDON-PARIS PACT] ANTICIPATED HERE {Conservatives Closing , Rift, MacDonald May Retire From Cabinet. (Continued From First Bage) Premier, but a premier without & party and more of a symbol than an actual Bower. The Conservatives are dictating in Great Britain today, the same Coh- servatives who believe that the welfare of the empite depends gieatly on Brit- ain's positioh in Butope, and the same Conservatives who had made the fa- thous naval agreeient with France in 1928: an agreement which had to be | dropped at the insistent defiand of the | United States. The precarious situation in Europe Has brought the British and the French overnments together again. Premier ardieu is preparing to go to Londoh to discuss with the British cabinet the terms upon which an _understafiding might be reached possibly before the Geneva Conference reconvenes on April 9. According to fellable reports from London it is not imipossible that in order to facilitate a closer co-opera- tion_between Brifain and France. re- shuffling in the British cabinet might be necessary. 1t is repotted that Mac- Donald very tited and that he is prepared to hand over the helm of state to either Stanley Baldwin or Neville Chamberlain. Dissatisfaction Seen. The same reports indicate a thorough dissatisfaction amofig the members of the House of Commons with the pres- ent heterogenous cabinet, composed of Liberals, former Laborites and Tories. The Conservative members of the House are urging their leaders to get rid of the non-conservative elements in | the emergency cabinet, which has out- lived its usefulness. These reports add Tory cabifiet should be fofmed in the course of the next few weeks, probably after the 1932 budget has passed through the House. 1t is believed that a closer co-opet- atioi between the French and the British is more likely if a purely Tory cabinet is in office ih London. An un- derstandihg between France and Great Britian i&8 more likely today than ever before, because the two nations have more things in common at present than any other two countries. If this hap- pens everybody expects the disarma- ment sHip At Genéva to sail on smooher waters. Nobody But a few idealistieally- minded delegatés believe that the Dis- armament Conference will give any positive results. The most that can be hoped is the agreement for a “status quo” of the présent forces. That is to say, that the nations of the world which afé gathéred at Geneva will emphati- cally state that they will not exceed their present arthaments. This in jt&elf, it is stated. would mark a certain prostesk. But all the same one must ar in Mind that the Germans, who are vitally interested in the conferénce, are claiming that either the other nations, and especially France and her dlliées, réduce their present armies or; Germany fust bé allowed to increase her present military effectives, Deep Gloom Prevails. France, her allies and associates are frtplr!fl to lmit their forces to what hey have Qodnf. but they are not willing to permit Germafy or any of the other former Centrhl powers to increase their milltary forces. Hence certain amount of gloom prevails among the members of the Disarma- ment Conférence regarding any prac- Representative Blanton of Texas| wanted to know if the committée had| given conslderation to raising the tax | on stock transfers from cne-fourth of | 1 per cent to three-fourths of 1 per| cent. He sugdested that if the tax| were so increased It would be possible | to do without the increase on first-class letter postage. Mr. Crisp was asked if he had consid- eted the advisability cf bringing ih a special rule making it necessary to con- si@er all the substitute taxes in a lump. | “No,” replied Mr. Crisp. "I want the House to show that it cah Act uhder liberal rules.” Representative La_ Guardia of New York, next took the floor to @eclare his o serve you. They would like to bring in an ideal tax bill, but it is imposeihle to bring in tax proposals that will suit éverybody, and the predominant de- | mand is that the revenue shall be suffi- clent to balance the budget. 1 appeai ! 16 vou again, when vou exercise yo freeom of judgment as members of the legislative body, and strike out any tax proposal that you have the man- | hood to put in in its place something | else.” | | Makes Dramatic Appeal. ‘Then Mr. Garner made his most dra. matic appeal, which resulted in an un- precedenied demonstration. ‘I'm_going to do an unusual thing," he said, “for which I will probably be severely crilicised. 1 want any man or ‘woman in this House who is willing to do all he or she ean to help balance this budget, to tise in his seat.” ‘The entire membership of the House arose and applauded vigorously Mr. Garner continued. “That ought to restore to the American people con- fidence in this House. We differ among ourselves, but in our hearts we are pa- triotic. ‘Those who charge otherwise are not just to us.” G. 0. P. Members “Decent.” “You've got to have organisation. | said Mr. Garner. emphasizing his own | Wwell known party loya 1 say to| the Republican side that although some rémarks have been made by some peo- | 6 high in authority. that the member- ip on the Republican side during this eonsideration of the fax bill have been quite decent Here he received “To the Democra turning to his colleagues on the ma- | Jotity side.” 1 say, “don't criticire; don t wiangle; don't throw brickbats, don't point your finger at some one and say ‘Ae's not a Democrat.’ Let's save the country and put through this legislation in the interests of our country The entire House stood and applaud- ed for many minutes. Minority Leader Snell theh teplaced Speaker Garner in the well of the House. and he also received extraotdi- bary applaute and chesrs “In view of the very extraordinary circumstances, 1 feel impelled (o tay a few works in spite of the fact that I'm suffering with a heavy cold.” sald M Snell. “I want to say to the Speaker, to the Democratic majority and to the people of the entire country that we on the Republican side are entirely in sympathy with everything the Speaker has said. He feels Lhat thete b a heavy obligation on us on both sides of the House to help balance the budget We're willing on the Republican side to do our part; to do what the country expects of Congress at this time I was one of those In cohference when An agreement was reached to bring out A bi-partisan bill. We supported the sales tax until that was withdrawn from the bill. If it is necessary to do something else, I'm willing to support that, too Duty at Present Time. 'he Republican minority is willing fo zo along apd give support to the Ways and Means In their efforts to Jevy taxes enough to pay the bills of fhe Government. We are not inter- o 0y r line of taxation, is mo- ‘H’ui "’t will be vigorously 5 e real duty upon us is to do what we believe is vigorous applaiise. | sald Mr. Garher intention of supporting the Ways and Means Committee’s prografn “Having defeated the sales tax." said Mr. La Guardia, “I am ready to go along with the Ways and Means Com- mittee’s proposal.” He eald he was particularly pleased that the committee bad included in its program an in- creased tax oh stock transfers which he himself had recotnstiehded “I shall support all of the items of taxation suggested by the Ways and Means Committee in its substitute pro- gram.” sald Mr. La Guardia. “Many of these items will be unpopular in my district. But if necessary I am willing to pay the price for having taken part in the defeat of the vicious sales tax.” Cosmetics Item Adopted. The first one of the new items of taxation offered by Mr. Crisp was the tax of 10 per cent on cosmetics. It was | adopted by the House on & viva voce | vote. and ‘without a divition While the cosmetics amendment was before the House, Representative Mor- ton 6f Oregon attacked the insurgent leaders who had defeated the manu- fattirers’ sales tax. Representative La Guardia obtained the floor, and replled in heated tones— untll the point was made that per- sonalities were out of order. This was sustained by the chair Representative McGugin of Kansas told the House the substitute tax plan was “just another sales tax.” “There's no need to be hypercritical about this matter” said MeGugin “The proposed increase of 1 eent on letter postage is just another sales tax and will go to ev home in the country 'The tax on cosmeties may be called a luxury tax, but cosmetics are tised by women in every class in the country, including the girl who wajts on vou in the restaurant.” ‘The Kansas member said the pro- posed taxes on Autormobiles were un- just, since the committeé had struck at the automobile industry. while ex- |cepting many other industries from tasation | In rapid succession thereafter the House agreed to a tax of 10 per cent on | furs, & tax of 10 per eent on jewelry, a | tax of 10 pet cent on sportihg goods and | cameras and a tax of 5 per cent on chewing gum The next amendments adopted by the House, praetically without debate, were taxes of 5 per cent on candy, 5 per cent on radios and phonographs, 4 cents per thousand on matches and a tax of 10 | per cent on yachts and motor boats Before Garner spoke there were sev- eral signs that the House was no lohger the “runaway” which its ctitics dubbed it a week ago, when the onsiaught of revolters swept beyond control. Repre- sentative La Guardia, conspleyotis in the anti-sales tax move. was defeated o rwfielmm.ly at the tlose of yester- day's sessioh oh an amendment seek ing publicity again for income tax re- turns. The 133-to-18 defeat was his | first major setback Leadeis aleo viewed as significant the 203:to-133 refusal to take up a $100- 000.000 drainape district relief bill, since the vote reflecied a shrinking in | support for that measure. In all 145 members had petitioned for it after the Rules Committee shelved the bill as too expensive for these times. -4 | | “un to taxes. oy S owners 6f Austria are t ificréasifg dmusement tical achievements at Geneva this year. But while fiobody expects positive re- sults as far as actual disarmament is concerned. it is hoped that the Danu- bian States, Austria, Rumania. Hungary, Jugoslavia ahd Czechoslovakia might K be induced to _agreée ameng themselves to form a Danubian nfederation. | Frante has been urding these countries to accept this idea; Britaln is expected flow o be in favor of the French thesls. This confedetation is planned to be merély an eéconomic unit, each cu}m"y fhaintalfing its complete politi- cal independence. But as the new confedération will have to be supported économically and especially financially by some o? the big powers (in this articular case Frahce & the only uropean country which can advance the necessary fun@s to these countries 6 save them ffom bankruptey) it is easily seen that the Danubian confed- etation will be strictly controlied by | the natio which 1§ th a position to lend them the necessary capital. It | is true that the suggestion is that | an intetnational concern of bankers should advance the necessaty credits to the new confederBtion. The amount requited is stated to be only $50,000,000. Imposing Figure Now, This was an insignificant amount a vear or so ago, but is quite imposing under tne . presefit eifcumstances, It is most unlikely that American bank- ers who have butheéd their fingers in Europe and other foreign countries will be willing to assoclate themselves with any new money-lending scheme, es- pecially when this money will have to | 20 to Central European states. Conse- | quently it is France and her friends who will have to edvance most of the | required loan if the confederation ever comes into being. | The Prench, supported by the Brit- lish, will do their utmost to bring the Danubian confederation into existence. It is unknown, however, whether all the Danubian states will be willing to join in_this scheme, which under the cover of an economic reorganization of Central Europe has in reality a much deeper political meaning 1t is known that the Italian govern- ment, which was conversant with this | scheme since last Fall, is greatly con- cerned about the possibilities of it succeeding. Count Bethlen, the leading Hungarian statesman, visited Mussolini | on Januaty 14 and reassurcd 11 Duce that Hungary would oppose with all its might any policy leading to & rap- prochement of his country toward the | Little Entente Austria, it is reported, feels equally disinclined to joiti her former enemies. Italy is doing its utmost to prevent| the forming of such a confederation, because she feels that she would be then completely surrounded by poten- tial enemies. But Italy herself is in a preearious financial situation and is not capable of affording any financial assistance to these countries which un- less immediately helped will have to go into receiver's hands Consequently, according to observers who have recently returned from Fu- rape, it is likely that, while the Dis- armament Conference may not give any positive results, formation of the Dan- ubian confederation may result. Ametiean diplomats view this pos- sible oecurrence with favor. There is fio doubt that, whatever political plans the promoters of this idea may have in their mind, the Government of this leountry would welcome anything that may fend toward the stabilization of Europe. And there is not the slightest doubt that a Danubian confederation, if it ¢an be brought into being, would becorne in a comparatively short time a celf-supporting and economically pro- gressive unit. PARLEY DATE DEBATED. MacDonald Awails Tadieu Visit Lotdon al Week End. ( LONDON, Mateh 29 (#—The date fot the proposed fourspower Danuebian L i it was announsed ffomi Tardieu of France probably would meet to toddy, But it was stated Dog Out of Race For May Queen as Students O. K. Girl By the Associated Press GRANVILLE, Ohio, March 29, —The fitst dog ever to be & can- didate for “May queen” At an Ohio college is no longer in the race. Woogs, a pet of Beta Theta Pi Praternify at Denison University, was withdrawn last night, when the names of three young women were added to the May queen b""ll?\tp' additions, Anna Rlubjbln« of Chattanoogs, Tenn . Matjorie S'PSNL! nfmgn,\'lm\; and Juliette encer of Columbus, Were con- fiflmé’ vsatisfactory” candidates by some 150 man students who ?}r\'lmxslx had threatened to vote or the dog 8even other voung women pre- viously nominated by a campus comithittee had been considered “unsatisfactory” by the insurgent students, Who held these candi- dates wefe chosen because of prominefice fathet than beauty. SEABURY WITNESS HELD IN CONTEMPT William J. Flynn Faoces Jail Sentence for Refusal to Answer Questions. By the Astociated Press. NEW YORR, March %5 —Supreme Coutt dJustice John Ford today held Wiiliam J. Flynin, Bronx commissioher of public works, in contempt for re- fusal to answer questions before the Hofstadter Legislative City Investigating Committee yesterday. Justiee Ford reserved decision on the sentence to be imposed. Samuel Sea- bury, counsel tc the committee, *had asked that Flynn be committed to jail for 30 @ays Abraham Wijlson, attorney for Flynn, atgued ihe Bronx commissioner “had ample cause for his refudal, in that the committee did not permit him to make a statement “to clear up” charges of Louis H. Willard, Bron property owner, that alleged persecution by Fiynn had caused Willard's wife to commit suicide and that Willard had lost his fortune. Flynn created a stir at the hearing by dethanding he be permitted to answer the Willard charges, Seabuty told Justice Ford Flynn had been assured he would bé permitted to make his statements after testimony affecting hith was put into the record, ahd the committee counsel charged Fiynfi's purpose was “plainly to deldy the proceedings and to avold Answering pertinént questiohs.” RESTAURANT PATRON SLASHED IN QUARREL Cottipanion Said to Mave Admitted Cutting Man With Pocket Knife. Slashed in the back and side with a potket knife, Péte Rockelli, 90. of the 100 Block of Third street, was taken to Emergency Hospital today after a brawl in a restaurant at Ninth and E streets. Police arrested Dennis Mahoney, 40. of the 300 block of K street northeast. who admitted having cut Rockelli with his pocket knife. Mahoney ran from the restaurant after the fight, but was caught by Traffic Officer Sine at Ninth and O strests. A search of his pockets disclosed the knife, police said. A large crowd collected outside the restaurant after the fight. Aecording to Witnesses, the two men were eating at theé same table when a dispute arose between them Rockelli's overcoat and inside coat and vest had been penetrated by the knife and he was sufféring from mul- tiple lacerations and loss of blood when admittéed to the hospital, locked up at No. 1 precinct pending the outcome of Rockelli's wounds INDUSTRIALIST DIES Samuel M. Curwen, Head of Street Car Building Firm, Sticcurnbs. PHILADELPHIA, March 20 () — Samuel M. Curwen ptesident of the J. G. Brill Co., street car building con- cern, died today at his home in Haver- ford. a suburb. M: Cnrwen became an employe of the Brill Co. in 1879 and was elected president in 1912, He was a director in many financial institutions and also Wwas a4 member of the boards of the Reading Ovo. and the Ametican Car & Foundry Motors Co. of New York. e Prime Minister MacDonald here this wesk end at Premier Tardieu's sugges- tion It also is unsettled whether the Dan- ublan conference it<elf will be held at Geneva or at London FLANDIN ALSO MAY GO. Finance Minister Probably Will Accom- pany Premier Tardieu to London, PARIS, March 29 (#) —Premier Andre Tardieu announced this morn- ing that he will go to London over the coming week end to confer with Prime Minister MacDonald and Sir John Bimon, the British foreign secretary. Plerte Flandin, the finance minister, probably will accompany him This announcement was made after the premier had talked with Lord Tyr- rell, the British Ambassador, concern- ing Mr. MacDonald's ihvitation to a London conference at which Germany and Italy also would be represented in a discussion of outstanding European problems, particulatly that of assistance 1o the Danubian states. Representatives of the two other na- tions concerned probably will be pre. vented by domestic considerations from attending such a conference for the next week of so at least. and conse- quently no definite arrangements for that meeting have been made. GERMANS FAVOR PLAN. British Suggestion Welcomed as Prely to Latger Conference. BERLIN, March 29 (#).—The Ger- man_ govethment accepted in prineiple today the invitation of Prime Minister Ramsay MacDonald of Great Btitain for a conference in London on Danubian affaifs. The invitation was extended by the prime ministet last week to the govern- ments of France, Germany and Italy. No date was set. A spokesman for the foreign office said the government welcomed heartily the suggestion for a four-power confer- ence, provided it is merely a preliminary to a larger conference in which the Danublan powets and others directly in- terested wouldflr-fltcivlu. The only difficiilty seems to be fixing a date. Chancellor Bruening is booked for a campaign tour on behalf of Presi- dent yon Hindenburg, and also is ex- pected at Geneva April 11. The chan- cellor is willing to waive his mfll éngagements, however, if it &l 'E v, And |t wAs sald he might proceed directly from London to Geneva, Mahoney was | BLASS BILL HELD SMALL BANK BLOW Eastern and Midwestern Financiers Fear Many Failures. By the Associated Press. A warning of danger to small country banks if the Glass banking revisfon bill is enactéd now and in its present form was glven a Senate committee to- dy by an Eastern and a Middle West- ern banker—W. Payne, Auburn, N. Y. and L. E. Wakefield, Minneapolis. Payneé said that to enact the bill un- der existing conditions would affect se- cutlty values and mean fallure of many small country institutions. Senator Biilkley, Deémocrat, of Ohio said he was speaking in “vague generalities.” Blilkley is a proponent of the bll framied by a sibcommittee headed by Senintof Glass, Démocrat, of Virginia. ‘THe measure i intended to ptevent use of PFederal Reserve facilities for stock market speculation. Hils Reserve Increase. A provision incréasinig natidnal bank réserve requiremes Wakefield sald, would “cruelfy the counfry banks in the Northwesierh States” For Mon- tana, North and South Dakota and Minnesota, he explained, reserves would be_increased by $17.842,000 Wakefield sald “The pufpose of the blll is consttuctive and contains great postibilities for good.” but he strongly Advocdted revision of the section in- cteasing restrietions on group banking This type of banking. he said, has been especially advantageous in farm- ing areas dufing ‘the extreme depres- sion in agrieullural values.” Would Affect Securities. “An attempt at this time to reform the banking structure” Pavie said, “‘wouild so inevitably and so severely af- fect seeurity values that many of our small country banks which so far have beeh able to weather the gale would not be_ablé to survive.” Payne said other bankers in his sec- tion felt the measure would “hamper recovery” if enacted now. . Earlier the bill had been described by | Thomas H. Preston, Chattanooga, Tenh., bankef. as containing “many cohstruc- tive features” although he criticized some of its provisions Objeets to Reserves. Preston objected to the provision in- creasing the amount of reserves which Federal Resérve member banks must maintain. This, he said, would cost His institution about $24,000 a year and is not needed. Preston also exoressed the view that too great a finaprial burden would be placed on mhémber banks under the provision for a liquidating corporation to aid depositors of closed banks, as it is now written. | The bill is designed primarily to | prevent use of Federal Reserve funds | for stock market speculation and to | strengthen the country's banks. CAPONE ‘AGREEMENT’ PROBED BY SENATORS | | | District Attorney George E. Q.| Johnson Examined by Borah Subcommittee. By the Associated Press. | Geotge E. Q. Johnson, district attor- | ney at Chicago. was questioned today | by a Senate judiclary subeSmmittée | about the facts leading up to the prose- | cution of Al Capone. Aftér motre than &n Hour in execu- tive session, Chalrman Borah refused | to discuss what happened further than | to say it dealt largely with the report- | ed agreement under which Capohe was | to have been sentenced to two and a | half years in return for pleading guilty | of income tax evasion. Judge James H. Wilkerson, whose nomination for Circuit Court’ is now | before the committee, overturned the purported agreement and sentenced Ca- pone to 11 years in the penitentiary. Borah said Johnson had been asked on whose instructions the agreement was mhade, but the Senator would not reveal the answer. The committee chairman said he ex- pected a decision on the nomifiation befcre the Chicago primary, April 12 Johnson was told to return this aft- ernoon for resumption of questioning “PRIZE FINANCIAL BOOB,” | HYDE CALLS AGRICULTURE DEPARTMENT FOR LOANS! tinued From First Page) $6,000,000 in the last three weecks ffom the $50,000,000 assigned it by the Re- construction Finance Corporation act. Applications for adcitional loans are grrl\‘in' at the rate of about 5000 a iy, “There isn't any way of getting out of it,” he said, “but face the fact that we have gone into business over at the Agriculture Department. 1 don't khow If‘llt we are going to do with all this theat and cotton. Nobody seems to want wheat and cotton any more and everybody seems to be ralsing it." | Hyde said the department has on | hand watehouse receipts for about | $16.000,000 In cotton and wheat {aken ! ift repayment of seed loanis over the last two or three years. 67,000,000 Approptiated. Last year Congress appropriated $67.- 000,000 for relieving farmers who suf- fered drought, storm and hail losses About $48,000,000 was loaned for crop roduction and millions more for feed- flm live stock in dry areas. Most of these loans were due last Fall. To @ate the department has | collected 55.4 per cent of the 1931 loahs, including the farm commodities taken | as collateral. The total is Approxi- mately $25.000.000. Meanwhile, the @epartment still is collecting loans made as long ago #8 1921 1t niow has avaiiable $50,000,000 from | Reconstruction Finance Corporation funds and $25,000,000 more will become available in June. 2! 10,000 Set Aside. l Dean H. Dobson-Peacock of Notfolk, Va. (at left), and Lieut. George 1. Richard, a Navy pilot, as they appeared at Hopewell, N. J. after flying through a dangerous storm from Norfolk to Ph by auto. estate and it Is believed he bore wor of the Lindbergh baby. Dean Dobson-Peacock conferréd with Col iladelphia and completing their journey Lindbergh at the latter’s d from the men belleved to be the kidnapers —A. & P. Photo. WITHIN 48 HOURS Norfolk Trio Ready to Take Yacht for 12-Mile Limit _(Continyed From First Page.) o the kidnapers' agent, would be able to bring back the Lindbergh baby. He was eonfidént the baby would Bé returned within 48 hours He sald the dean took no articles of identification of the Lindbergh baby to Col. Lindbergh yesterday and that Déan Peacock’s visit was purely the re- #ult of his (Curtie’) mysterious 38-hour alrplane trip over the week end when he contacted the man who claims to be the agent of the kidnapers. Curtis, the “contact man” of the trio, said he has not changed his attitude of confidenge over the outcome of any ne- goflaticns he may enter into for the return of the Lindbergh baby. Previously he had indicated that the information he obtained on his secret trip in a Navy plane was so impertant that he and his associates could not trust it even to the private teléphone line into the Lindbergh hotrie, access to which he and his associatés have. It was this distrust of the telephone serv- ice which, it is belleved, led Dean Dob- son-Peacoek to take a naval plane out of Norfolk yesterday, fly to Philadel- phia, in the face of bad weather, going thenice to the Sourland Mountain estate of Col. Lindbergh. The trio—Curtis, leader of the Nor- folk German Club, foremost society or- anieation; former president of the Nor- olk Country Club, and a social leader in this city; Rear Admiral Burrage, who brought Lindbergh triumphantly back from Paris, and Dean Peacock. who Was in Mexico City when the late Dwight Morrow, Lindbergh's father-in-law, was American Ambassador there—remains optimistic that it can effect a safe re- turn of the Lindbergh heir. This despite the fact that New Jersey State officials continue to “attach no significance” to the Norfolk negotiaticns, Story of Trio Checked. Norfolk points to the prominence and disinterestedness from any personal gain of these men, and to their sacri- fice of time and convenlence as war- ranting the fullest consideration of all agencies seeking the safe return of the Lindbergh baby. That their story has been checked and found sound so far as possible without hampering the negotiations was confirmed last night. All three, how- ever, maintain the utmost secrecy as to the nature of these negotiations. They have complained that premature pub- licity had the effect of putting the ne- | gotlations back to the stage where they | were when the first story broke, but ar= tonfident that the negotiations can be pursyed to an ultimate and successful conclusnon if they are left unhampered. HOPE EBBS AT HOPEWELL. Immediate Reiurn of Baby Is Not Now Expected. HOPEWELL, N. J., Match 29 (#).— Hope that the Lindbergh baby would be sent home before the month's end ebbed today. The Rev. H. Dobson-Peacock of Nor- folk, Va. who risked his life yesterday for an hour’s talk with Col. Charles A, Lindbergh, said afterwsrd he would probably confer again with the flying colonel in three or four daye. This statement was interpreted by newspapers a8 meaning that his imme- diate release was not expected Col. H. Norman Schwarzkopf, head of the State police, said again that “Col. Lindbergh does not believe the information obtained at Norfolk to be of specific significance in this case.” Conferenice Guarded. What the Norfolk dean told the air- A sum of $200,000,000 was set aside ifi the reconstructiori bill for agricul- | tural loahs. Senator Smith, Democrat, | of South Carolihd, is sponsoring a bill—now before the House Agricultute Committee—to make the remaining $125,000,000 avallable immediately Hyde believes $75,000,000 mote than ample for farmers’ credit loans &nd, acting for the administration, is seek- ing to have the $125,000,000 appro- priated for use in financing foreign sales of Patm Board wheat and cotton. The 1932 ctop production loan office expects that the greatest demand for loans this year will come from the Northwest, ‘where the drought stttick again last Summer. Southeastern Btates are believed to be next in point of credit need. JOB DRIVE BIG SUCCESS | 50,000-Hour Goal of Marion, Ohio, With 75,061 Hours Supplied. MARION, Ohio, March 29 (#)— Marion's city-wide employment n;m- igr. has gone over the with a ng, but ’hl 1 lieit jobs for s un:&‘}floy ¥ thousand work houfs the goal, today the total had reached 75,961. man was kept closely guarded, although he did say the conference resulted from |a “contact” with the kidnapers The clergyman, clad in windbreaker and heavy ovefcoat and cartylng a shiny riew brief case, flew with a Navy pllot from Norfolk to Philadelphia de- ite buffeting winds and rain and snow. om Philadelphia he motored to Hope- well, where State police kept him wait- ing before admitting him to the Lind- bergh home. Emerging. he sald in answer to re- rters’ questions that he had not ought portions of the baby's clothes | Wwith him, that he was taking back no ransom money. “Did Ool. Lindbergh receive your in- formation with optimism?” he was | asked “I cannot speak for Col. Lindbergh.” he said. “All that I can say is that we are optimistic.” “Purple Gangsiers” Sought. Col. Schwarzkopf continued to search for Harry Fleischer, reputed member of Detroit's “Purple Gang.,” and Abie Wagner. small-Hime New Vork Tacketeer. He u':u them to account for their tl‘l:: about Mareh 1, when the baby Was stolen. In his morning bulletin Col. Schwarz- mmd hg had received epeated fe that Wagner was killed some time #g0 in New York City, and although SEE BABY'S RETURN ANTIWRI BILL 15 INVOKED HERE Act Cited in Case Involving Withdrawal of U. S. Group From A. F. of L. (From the 5:30 Bdition of Yesterday's Star.) The anti-injunction bill, recently signed by President Hoover, divesting Federal courts of authority to grant injunctions in labor disputes, was in-| voked today for the first time before Justicé Jesse C. Adkins in District Su- ptéme Court. ‘The action was taken by Luther O. Steward and Gertrude M. MeNally, who had béen named as defendants with the National Pederation of Federal Emfi- | loyes in & motion to dismiss a sult or injunetion brought by David R. Glass and 17 other members of the as- sociation to prévent the withdrawal of the association from the American Fed- eration of Labor. Lack of jurisdiction of the court was argued and the claim was made that the American Federation of Labcr is an essential party to the suit, which should be dismissed because of the ab- | sence of an indispensable party. Failure | of the plaintiffs to exhaust their reme- | diés within their local unioh i§ also urged as a reason for dismissal rough Attorneys Willlam E. Leahy and William J. Hughes, jr. the defend- ants asserted the present case is a labor dispute between one or more em- ployes and an association of employes. | It involves, they claim, the personnel | classification bili, which is so important to defénidants that they feel it advisable to withdraw from the American Fed- eration of Labor in order to continue | their advocacy of the bill, which was opposed by the labor leaders. The court is without power to require the defend- ants to rejoin the labor erganization, it is claimed, since it would establish a relationship between two parties, only | one of which is before the court. | _Attorneys James S. Basby-Smith and | Frank Easby-Smith opposed the dis- missal of the bill and denied it falls within the scope of the anti-injunction act, since it involves no labor dispute as defined in that act. They urged the granting of their request for an injunc- | tion against the defendants. 0ld Rheem Home | Is Sold for 875,000 | On Judge’s Order | (From the 530 Edition of Yestérday's Star) The former home of Edmund D. | Rheem, executive vice president of the | defunct Swartzell, Rheem & Hensey Co., 2t 2343 S street, has been purchased by | Mrs. Anne C. Harrison for $75.000, it | was revealed today when George C. | Shinn, Rheem receiver in the individual | bankruptcy proceedings against him, filed an order of Justice Peyton Gordon | directing the sale. The receiver is ordered to pay Mrs. | Alice W. Rheem for her dower right the | sum of $15,000 and to pay Sandoz, ine., a broker's commission of $2,350 for se curing the purchaser. The claims of all creditors, including one of the United States f 12,080.99 for alleged income taxes in arrears, ars transterfed by the court's order to the fund, which will remain in the hands |of the receiver until the disposition of |an appeal by Rheem from the order | udg’ld(lnl him individually bankrupt. | | _Rheem is represented by Attorneys | Tobriner & Gragham, while the receiver | was represented by Attorney Willlam E. | Richardson. United States Attorney | Leo A. Rover and George Rogers, spe- cial attorney to the Bureau of Internal Revenue, eohsented. —_——— they have never been verified, the ru- mors persist. Fleischer has been reported in vari- ous sections of the country, but no au- thentie information has been obtained as yet regarding his whereabouts, | Schwarzkopf added The bulletin disclosed that a letter hed been received stating that a child resembling the Lindbergh baby was in | a foundling sanitarium, but an investi- gation proved it groundless. CONSOLYO LENDS YACHT. | tntermediaries to Make “Contact” at| 12-Mile Limit BALTIMORE. Md., March 20 (#).— Charles H. Consolvo, president of a Baltimore hotel corpofation, has been asked to take the three Norfolk inter- mediaries in the Lindbergh kidnap case cut to the 12-mile limit in the Atlantic ! Ocean to meet the kidnapers of Charles A. Lindbergh. jr., according to Mrs. Consolvo. Mrs. Consalvo said she talked by tele- phone with her husband in Norfolk, last night, and that he told her arrange- ments had been made to take his yacht, IPOSTAL CLERKS HIT SALARY CUT PLAN Charge “Economy Propa- ganda” Is Being Used by Business Interests. Charging that “economy propagan@a® by busifieds interésts amd ‘mafy publis cations” is responsible for the proposal to reduce Government salaries, the United National Association of Post Of- fice Clérks has submitted to Congress ;"mnluunn of protest against wage cut- ng, ‘The effeet of sich réduction i the salarles of the employes tHe breaking down of their morale, their diminished purchasing power and the rank injus- tice of such a proceeding does not seem to concern the propagandists,” the ress clution. a8 announced by Presidert T}mmlz P. Dolan of the association, sald. “To save & few dollars taxes, not to mention the 'ps; effect this reduetion would thereby encourage and ena ers of labor to further reduce the whges of their employes, has only whetted their feverish desire to strike down those in the public service Political Move Seen. “There is also the suspicion that the Federal service is being used for a political foot ball with the desire of political power. Many statesmen con- i celve new legislation merely for the ef~ fect it may have in placing the oppo= site_party in a political predicament.” The organization called attention to war costs and asserted the Federal em- ploves are to be made to suffet because of such debts. The employes also are to be “penalized” it was stated, for the stock market collapse, the wheat stabilization expenditires and the pub- lic works program of the Government. “Public employes conhstitute a class which ordinarily emanates from people in very modest eircumstances,” the résolution sald. “Théy, themselyes, have no easy time making 4 decent live ing. Many of them are helpihg to sup= port relatives without occupation. In most of these cases, Government ém- ployes até actually suffering on rediced ificomes, due to the necessity of assist- ing others. We wonder if the pros ponents of the salary-reducing move- ment have any conception of what $100 means t6 & workingman. The skimp- Ing and struggling of the average smalls salaried man to exist is pitiful. Life is not worth while if each generation i8 to be faced with this constant 8frufis gle for existence, and this in our great land of plenty. Must Prove Competency. “Qivil Service employes merited their positions through competitive exam- inations; they maintain these positions through dally proof of their competéncy; they rendér services which aré Absos lutély essential for the efficient conduch of the Government's business; they dcs cépt thesé positions knowing that they {are ‘blind alley' jobs, with no better | than faif pay, but with the expéctancy | that théy will be protected in théir posis tions and a4t least a fair salary paid which will not fluctuate with the outside or ‘labor’ market. | “Their salaries are barely a ‘living’ | wage. Thé most that the great majority can hope to réceive is in the néighbor- hood of $2.100 a year. This is barely | efiough to livé upon, but only if no eéx- traordifry expenses are encountéred. Every confimmn knows, and evéry business maf knows, that such salaries | aré mefély equitable. Howéver, they do | not séém to redlize this in a practical loyes haye an abid- | way. 2 “Goveramen it their. rep- and Are oon: Tesén! flfiul that their g‘:’ mmm; pathétic undefstan to devise means of rai teveriué And théréby balancing the Budget without resofting to the method embodiéd in thé proposed wage-reducing ' AGRICULTURE BILL CONFERENCE BEQINS . T, |Senate and House Conferees to Reach Pay Cut Section in Several Days. n indifect yehological® creaté and employ- Senate and House conferees on the agricultural appropriation bill bégan | their deliberations in executive session today, but it probably will be sever days before they reach the question whether salary promotions for Goverfi- ment employes and the filling of va- cancies the QGovernmeént sefvice should be prohibited as a méasuré of economy. The House proposed these two re- strictions on ealaries and pérsonnél ih several of the pending appropriation bills, and, since this is the first bill to g0 to conferénce, the decision on the agricultural bill is expected to deter- mine whether these limitations will be applied to all of the departments or dropped from consideration. The Benate eliminated them from the Agricultural, Interior and from the State, Justice, Commerce and Labur A propriations bills, explaining it did so ih order to thfow the whole question ifito conferenee for further consideration with managers from the House. When the Treasury-Post Office bill was considered in the House several weeks ago, that body partially reversed its former stand by leaving out the ban -flnlnn notmal salary promotions. This bill has not yet émerged from the Sen- | ate Appropriations Committee. LA GUARDIA CLAIMS. PAY CUT’S DEFEAT; DEFENDS FARMERS (Continuéd From First Page) either in its annual meetings or by l.ll; board of directors, and consequentl | I cannot state a pogjtion for the orgaf- ization. Ho' r, cén say that the organization I represent at Washington is not advocating salary reductions, &S to do so woiuld be proceeding without any definite organigation support.’ Have Taken No Action. “The Natiohal Co-operative Milk Producers’ Federation stated on March 28 that their organization has taken no | action. and the secretary is taking it up with his Executive Committee. ““The Farmers' Educational and C6- opefative Union of America, of which Johin A. Bimpson is president, said on March 24: ‘It is my position that farm- ers cannot pay their mortgages and high taxes by pulling other people down to their level. Our only hope is to rise to the level of the business, professional and laboring groups.’ “From the Grarge the chairman of the Nlunn% Executive Commm;z out in Seatfle, Wash, wired me on Mafch 35 as foliows: 'Neither natiofial for Washington State Granges have taken offic etion on wage cutting, IY my views are strictly personal, but am convinced that the enly way to avold genetal agricultural bankruptey is fo secure testoration of commodity ptices to the approximate level prevailitig when we conttacled nheafly billions in debts, and that reductions in general waga level would tend to reduce puf- chasing power and assure contirante of low commodity price levels. Some adjusttients of Inequalities are neces- l‘he Mareon, with Dean Harold Dobson- nmfi. Joie Hughes Curtis and Rear aboard to meet of agents, ctors sary, but no general reduction is Emn: unless means can be found to debt, taxes ai overhesd ¢l Srogortionte 15 telegram signed by A.