Evening Star Newspaper, April 6, 1932, Page 2

A—2 OSEVELT CANP ELATED BY VOTE Campaign Unmarred by De- feat Remarkable Showing, Says Senator Dill. F¥P (Continued From First Page.) cratic National Convention, and the Roosevelt candidacy is expected to get a boost in both these States. Nebraska holds a primary April 12 and Michigan selects its delegates in State convention The Nebraska primary, unless the un- expected happens, will select Roosevelt delegates, and Michigan is regarded by the Roosevelt people as pretty well sewed up for the New York Governor. Furthermore, Roosevelt appears to have taken over the South Dakota delega- tion without a contest. The last day for filing for candidate for delegate has gone by there and only Roosevelt dele- gates have filed. The Democrats of Massachusetts are likely to have these added victories dinned_into their ears also. At present the Roosevelt peopls are saying they may tax 16 of the Bay State delegates, leaving only 20 to Smith. They admit that this may be too great an estimate of their strength in Massachusetts, but add that every delegate they can win in Massachusetts is a distinct victory for Roosevelt, since it has been held that Massachusetts is Smith territory. Defeats Grow Slimmer. What is to be the picture of the anti- Roosevelt and Smith strength in the Democratic national convention? It is conceivable that Roosevelt may get his bumps in coming primaries and State conventions. But the chances of his defeat in a great majority of the States are growing slimmer and slimmer. The anti-Roosevelt forces have been hit harder and harder as the weeks have progressed. With the two-thirds rule in operation at the Democratic national convention Roosevelt is not out of the woods yvet. But he seems to be getting constantly stronger. And if in the end the Democrats succeed in defeating Roosevelt after a knockdown, dragout fAght, just what is the Democratic presi- dential nomination going to be worth? That is a question which many Demo- crats are pondering as the time draws nearer. LA FOLLETTE GAINS GROW. 1,337 Precincts Canvassed in MWisconsin Election. MILWAUKEE, April 6 (#)—La Fol- lette Progressive Republicans and Roosevelt Democrats continued to forge ahead as returns came in today from yesterday's election to choose delegates to the national conventions. One thousand three hundred and thirty-seven precincts of the State's 2,845 gave for delegates at large: Roose- Jelt Democrats, 370,510; uninstructed Democrats, 248,826; Progressive Repub- Ticans, 413722, conservative Repub- Ycans, 377,304 The Progressives were favoring the nomination of Senator George W. Nor- ris of Nebraska as President, and the Conservatives, unpledged, had given “tacit approval” to the Hoover admin- istration, but had not indorsed Presi- dent Hoover as a candidate for re-elec- tion. Senators Robert M. La Follette and John Blaine led the Progressive vote. The conservatives were led by Harry Dahl, one-time candidate for Lieutenant Governor, and George W. Mead, well known Wisconsin manufacturer. The presidential aspects of the dele- gate elections, however, were pushed into the background when both con- servatives and Democrats attacked the La Follette theory of redistribution of wealth. He recommended increased in- come taxes for the State to raise money to be used in public works for the pur- pose of spreading employment. tives accused the Progres- sives socialism. Gov. La Follette, while not a candidate for delegate, campaigned for the Progressive slate, declaring he had “no apology” to make for his program. In turn, the Progres- sives criticized the national Republican administration, charging it followed a *“do nothing” policy during the national crisis. The clean sweep of the Roosevelt Democrats climaxed a struggle for State control of the party between a faction led by John M. Callahan, national com- mitteeman, and one headed by Oftto Labudde, chairman of the State Com- mittee. The Callahan slate was un- pledged, but was reported favorable to former Gov. Alfred Smith of New York. SOCIALISTS MAKE GAINS. Milwaukee Mayor Re-elected by Large Majority. MILWAUKEE, Wis., Socialists made impressive gains in Milwaukee's city _election vesterday, Te-electing Mayor Daniel W. Hoan by a large majority, capturing the city treasurer's office and increasing their hold in the City Council. Hoan, who has been mayor since 1916, apparently scored the greatest triumph of his political career. He walked to victory. Returns from 89 of the city's 388 precincts gave him 20,879 votes, against 12,655 for his Non- partisan opponent, Joseph P. Carney A Socialist member of the School Board, John W. Mudroch, was pro- moted to the city treasurer’s office. He replaced the veteran Non-partisan treasurer, Jobn 1. Drew. In 89 pre- cincts Mudroch had 20,320, compared to 12,533 for Drew. GEORGIA DEMOCRATS MEET. April 6 () — Delegates to Be Named for Roosevelt at Atlanta Today. ATLANTA. Ga. April 6 (#).—Geor- gia Democrais assembled for their State meeting here today to name delegates to cast Georgla's 28 votes in the Na- tional Convention at Chicago for Gov. Franklin D. Roosevelt of New York as the Democratic party’s presidential candidate. Every county in the State voted an emphatic majority for Roosevelt in the Georgia primary March 23, swamping his opponent, Judge G. H. Howard, who said he ran for Speaker John M. Gar- ner, and the party representatives met today to carry out the mandate of the Democratic rank and file. Nomination of eight Jarge, with half a vote each or sixteen with a quarter of a vote each, was left up to Gov. Roosevelt ction of 24 delegates and 24 alternates, 2 from the 12 congressional @i placed in the hands of dis cuses for report to the State Conven- tion District delegates and alternates may be given half a vote each in the Na- tional Convention and Georgia's dele- gation to cast its 28 votes might run &s high as 64 persons. FARLEY CLAIMS SWEEPING. Roosevelt Manager Says He Has 25 of the Wisconsin Delegates. NEW YORK. April 6 (#).—James A. Farley, manager of Pranklin D. Roose- velt's Democratic presidential cam- paign, today claimed 25 of Wisconsin's 26 convention delegates on the basis of telephone advices from Wisconsin “The Governor has almost certainly captured 25 of the 26 delegates, and the remaining delegate, while running in the early returns very close to the Roosevelt candidate, is losing ground and will probably be defeated,” Farley said. “The returns so far indicate the Roosevelt ticket won in Milwaukee by approximately 2 to 1. the one close district lying outside of the city.” Far- ley added. “It is probable the final vote will show the Statewide majority of Gov. Roosevelt's friends to be con- siderably over 2 to 1" ¢ ¢ delegates at| THE EVENING STAR. WASHINGTON, D. C., WEDNESDAY, APRIL 6, 19 New Aviation Museum Opens WHGHTT NAVAL AIR COLLECTION SHOWN HERE. A i activities are shown by photographs, shows part of the engine collection The museum is open to the public from 9 am. to 4 pm on hand at 10 am. and 2 p.m. to explain the various exhibits undergoing Warren G. Child (right), commandant of the station, and Chief Aviation Pilot S its contribution to the Bicentennial celebration, the Anacostia Naval | Air Station has opened an aeronautical museum. The collections, housed in a building at the statfon, include a series of aviation engines, from one of the earliest of the Wright brothers to the new Diesel type of models show various types of Navy planes A series Various naval aviation daily. The A guide is hotograph by Comdr. final inspection Star Staff Photo. J. D. Hamlett DANUBIAN PARLEY OPENS WITH LOAN Joint Anglo-French Action Taken to Prevent Collapse of Austria and Hungary. (Continued From First Page.)_ trade with the Danubian region is negligible, this hits Germany and Italy principal customers of the Danubian | countries, and would further isolate them and create a real barrier to a possible Austra-German “Anschluss Short-Term Loans. 5. Immediate short-term loans should be granted to Austria and Hun- gary. Such loans are to be guaranteed by the governments in the lending cen- ters, 6. Further stabilization is necessary to bring about the consolidation of all foreign loans to the Danubian countries, governmental, private and public This is to be achieved by listing all the loans made to these countries, com- paring them with commodity price levels in force on the dates the loans were made—and adjusting actual loan values to the price levels ruling for the same commodities today. This lessens the burden of the real debt, which must eventually be paid in real commodities. In effect it means that the Danubian countries should go off the present gold standard and then come back on it at a lower basis. On this point the British wanted the Danubian countries to suspend the gold | standard altogether as the best means of escaping their present embarrass- ments and lowering costs of production. The Prench, anxiously guarding the principle of gold, agreed to revision, but only provided a new gold standard operating on a lower gold basis was enforced at once. Resent ance Control. ‘To achieve such inflation, it was pro- | posed to establish strict international | control over both finances and budgets of the Danubian countries. ‘This budgetary control seems to form super- vision which certainly Czechoslovakia | and probably Jugoslavia as well as the | other Danubian countries strongly re- sent, and yet it remains to be scen whether the Danubian states are willing to submit to such stringent financial control. British bankers are unwilling to risk any more money in the Danubian and other European countries without gov- ernment guarantles. This brings up the seventh point, upon which the Br ish and the French have not yet reached agreement. The undecided problem i the actual percentage which Gr Britain should either contribute guarantee. French Premier Andre Tardieu scheme, which envisages a loan of som $38,000,000, is very coldly received in London banking circles, where it is contended that a 10 per cent preferen- tial tarff is totally inadequate to strengthen the position of the Danubian countries, and any greater reduction would inevitably harm third part such as Germany and Italy. with a d astrous outcome. Also, while financial London realizes that most of what are now politely called “frozen credits” in Central Eu rope are nothing more than ile able debts, there is the United States still to be heard from. or | | Involves U. S. Attitudes. Tardieu’s scheme for revising the financial charges of the Danubian states is nothing more nor less than one of scaling down their debts. As the United States is by far the largest creditor in Central Europe, it is already teing asked how far Amerlca is willing to go except under the most rigorous conditions. One of these conditions, it is asserted here, should be stringent international control over the Danubian countries’ armament and bucgets, as well as agreement by France to drastic reduc- tions in reparations payments by Ger- many “If Prance cared to loan money to the Danubian state on_ner own,” sayvs the powerful London Financial News, | “no ome would object. Bul it is quite | certain that no support for Central Eu- rope can be forthcoming from London so long as Germany's reparations lia- bility remains as it is." | DELEGATES MEET INFORMALLY. Spokesmen for Three Nations Guests of | MacDonald Before Giving Views. LONDON., April § (#)—French, Ger- | man and Italian delegates to the con- ference considering economic problems of the Danubian Valley had luncheon today with Prime Minister MacDonald and then crossed the street to the for- elgn office to begin the informal dis- | cussions by which they hope to evolve a plan to put Middle Europe back on its_feet. Premier Tardieu of France, Wwho |talked with the prime minister over | the week end, had gone back home to begin his campaign in the French elections. His place was taken by | Pierre Flandin, his finance minister | Dino_Grandi spoke for Italy and Dr Von Buelow, the German secretary of state, represented his country. This is to be an entirely informal meeting for an exchange of views When a plan is evolved it will be sub- mitted to another conference some time in the near future, at which the Dan- ubian states directly concerned will be represented. “The British and Prench experts are still studying the fiduciary aspects of the problem, but they announced that no apecaswn had been reached regard- ing a proposed Danubian loan. i | bill which | today | first { Distr | undue violence was not resorted to by police and that ¢ HOOVER ECONONY PLAN ASKED AGAIN Senator Harrison Accuses President of Partisanship on Program. A new demand for President Hoover to present a specific economy plan ¥ made in the Senate today while Ho! members were debating the extent which they could trim the expe of Government bureaus, Senator Harrison, Democrat, of Mis ssippi, accused the President o nship” on the economy program an said “he’s talking now, as the campaig: approaches. of ecconomy in general hout specifying what he_has to nses said the President is “waiting the eleventh hour” before pro- posing specific cuts in expenditures. Protest Made Public. The debate in-the House arose over the independent offices appropriation carries a billion dollars to defray the expenses of a varicty of governmental bureaus. which are not under the jurisdiction of the regular Government departments Chairman Rayburn of the Interstate Commerce Committee made public a protest by the Interstate Com- merce Commission inst the $1.483.- 231 slash by the Appropriations Com- mittee in its allotment in the independ- ent offices supply bill President Hoover made it apparent that he still intent upon find- ing additional means of further reduc- ing governmental expenses, when he sent for Secretary of Commerce Lamont and conferred with him at length on this subject. Lamont said after the that further possible economies in his department were the sole subject dis- cussed. He would not discuss the de- tails, but made it evident that he, like other departmental heads. is earnestly endeavoring to find a means for reduc- ing expenses. The Secretary said he expects to go before the several committees of Con- gress engaged in expense trimming and offer suggestions Confers With Doak. President Hoover conferred also with Secretary of Labor Doak. but the latter stated afterward their talk had nothing to do with reducing departmental ex- penses Democratic leaders are seriously con- sidering a counter economy offer to President Hoover, proposing to give him blanket authority to administer a flat 10 or 20 per cent cut in departmental appropriations for next year Behind the smoke of House-congressional economy Senate Finance Committee for the first time to co conference the White war, the down ider tr revenue bill to present the administration’s views on the legislation as it passed the House. Pending receipt of his recom- mendations, Senate leaders were with- holding a program Chairman Smoot of handling the bill sought method whereby the ma seeking to be heard on the measure could be limited to one or two of “the best men in each industry,” so to save time. A long list of wit- ses is in sight and Smoot has hoping to_g¢ bill to the Senate in & couple of we EMBASSY RIOTING TRIAL OPENS TODAY: DELAY IS REFUSED the committee to devise a spokesmen (Continued From First Page) rounded up and in court by 1:30 p.m.,, the hour set for the trial of Suskin. Each of the defend- ants will be tried separately. Mr, Ford said he had planned to use Mr. Gellhorn as a surprise witness in all four cases. Gellhorn is witnessed the alleged attack made by Miss Hardy, who is reported to weigh approximately 100 pounds, on John T. Langley, a 200-pound police sergeant Police charge that Miss Hardy used viclous measures to prevent her arrest for leading the parade. The defense, through Gellhorn and other witnesses, is expected to show that Miss Hardy was clubbed to the ground by police Declared Posed. According to District Buildir the Commissioners have s nt from Brig. Gen. ord, superintendent of Metropoli- tan Police, that the Hardy girl fell to the ground and lay there for the bene- fit of newspaper photographers. police witnesses A letter purported to have been writ- | ten at the direction of the Commis- sioners and answering a by the American Civil Liberties Union of New York and made public at the t Building last week, stated that photographs of the riol had been exag- gerated. Later Dr. Luther H. Reichel- derfer, president of the Board of Com- missioners, stated that the letter had been written by Daniel E. Garges, sec- retary of the board, and had not been authorized by any member of the board So far the union’s protest has not been dealt with officially by the Commis- sioners. The purpose of the demonstration, ¢ cording to Communists who partici- pated, was to protest against war and Japanese and American imperialism. In sentencing the 19 defendants last week, after trials had been held on charges of parading without a permit and disorderly conduct, Judge Ralph Given upheld the methods used by lice in breaking up the demonstration. 4 House | Secretary Mills was called | been | id to have | protest_filed ! AXFOES | T0 APPEARTODAY. Hearing Yesterday Touched Upon Fiscal Relations and Utilities Levies. (Continued From First Page.) when the estimated tax on the Federal | property actually used by the United States in Washington was added it in- creased this city's per capita tax from $57 to $73. Needs Pass Revenues. He told the committee that whenever per capita comparisons are made be- tween Washington and other cities, one of two things must be done to arrive at a fair result, either to de- duct something from the other cities for the large tax paying industries that exist elsewhere, or add something to Washington to allow for that factor. In response to questions, Murphy said it was his understanding that in the past two years the District budget has used up a $5,000,000 surplus and, in addition, has gone into the reserve cash-operating fund to the extent of $1,200,000, indicating, he said, that budget needs are rupning ahead of revenues, including the Federal con- tribution. of $9,500,000. Mr. Murphy contended the Federal contribution should“be determined as one item rather than attempt to ascer- tain the Federal Government's labil- ity separately toward certain functions, such as the schools, the water service and the streets. He said there are two questions for Congress to determine, One is what is a reasonable tax burden for the people of the District. and the other is what the Federal Government should pay. He said the pending Mapes bills, seeking to levy new or additional texes on estates, incomes, gasoline and motor vehicles by weight, have a bearing on how the tax burden of the local community should be dis- tributed. Chairman Capper pointed out that this basic problem of the financial rela- tionship between the Federal and Dis- trict Governments is to be gone into more fully at a later hearing, and the discussion turned back to tae details of the weight tax proposal. Explains Changes in Bill. Murphy expfhined the changes which the bureau made in the Mapes weight tax bill, the principal one being to con- fine weight taxes to pneumatic tired vehicles, starting at 6,000 pounds and solid tired vekicles, starting at 4,000 pounds, which would leave private pas- senger cars with a nominal $1 registra- tion fee. He said the bureau plan would | produce weight tax revenue of only $467.000 as compared with $2.900.000 of stimated revenue under the Mapes bill. The bureau, however, also recommended that the personal property tax on ve- hicles, which the House voted to abol- ish, be retained Murphy explained that the bureau| ent on the theory that the gasoline ax and the weight tax were special levies imposed to meet the special cost of street and highway work, that the| bureau found out what the Distrl(‘l'si requirements would be for such work in the next few years and tried to avoid { levying a greater sum in motor vehicle | taxes than would be needed for this purpose. Senator Carey told Murphy he had | been informed by a member of the city government the general laws here can- not be adequately enforced because the police are required to devote so much of their time to traffic cases. The Sen- ator said this official expressed the| opinion more policemen was the only solution to this problem. Murphy said it was true the police are obliged to waste considerable time in enforcing the traffic regulations. He said his suggestion would be to impound the cars parked overtime, and indicated his belief this practice would soon do a with violations of this character. Favors License Tax. The question of paying the salaries of these proposed additional policemen was brought up, and Senator Kean. Republican, of New Jersey, indicated that he favored substituting a heavy license tax for the present property tax for automobiles, in order to raise the necessary money. When Traffic Director William A Van Duzer took the stand he was ac- cused by Senator Kean of “not making a reasonable effort” to control parking on the streets Mr. Van Duzer replied that he has been making a special study of the | parking problem and expects to offer i some recommendations in the near fu- ture. He indicated he favored abolish- ing parking on the streets entirely dur- ing the next 5 or 10 years The traffic director also told the com- mittee he was doing away with the amber light with the red signal and hooding the green lights to reduce danger at street intersections as a con- sequence of a tendency on the part of motorists to start across streets while the amber light is on during the change for red to green. When Murphy said the bureau esti- mated the proposed 4-cent gas tax would produce $3,300,000, Senator Kean observed that the bureau “assumed the people of the District will be as pros- perous next year as now.” Murphy re- plied that the experience elsewhere in raising the gasoline tax rate indicates the bureau's estimate of probable re- sults here is conservative. Based on Actual Needs. While the witness was giving {llustra- tions of what the bureau’s proposed weight tax would amount to far trucks of various capacities, a suggestion was made that some of these rates be made higher in order to produce some ad- ditional money for the city's general revenue fund. Murphy replied that the weight taxes were worked out to meet the actual money requirements for the highway program, and indicated he was opposed to using this special form of taxation to add to the general revenues. The request of the railway compa- nies that their busses be exempted from payment of a weight tax because they pay a 4 per cent gross receipts tax. was presented by S. R, Bowen for the Washington Railway & Electric Co., and by G. Thomas Dunlop for the | Capital Traction Co. | Chairman Capper brought out by questioning that the gross receipts tax |is in lieu of a personal property tax. | Senator Capper said he was interested in a discussion in one of the newspa- pers recently of the possibility of in- creasing the taxes on utilities. The hairman also quoted what the Mapes Committee said on this subject in its ireport to the House. The railway | spokesmen argued that their compa- nies are bearing a fair share in taxa- tion. | | PLANE CATCHES FIRE Austria’s Largest Craft Is Safely Landed. VIENNA, Austria, April 6 (#).—As Austria’s largest airplane, the A-100, approached Aspern, Vienna's airport, yesterday afternoon, one of her motors caught fire, but the pilot succeeded in bringing her down with the two pa gers and the members of the crew un- injured. A ground crew waited with 35 fire | extinguishers when the ship landed and it took them almost two hours to put out the flames. Seven members of the field staff required first-aid treatment. ‘The plane came from Berlin via Prague. . Indian Convention Banned NEW DELHI, April ‘6 (4#).—The gov- ernment has banned a convention of the Nationalist Congress planned for April 24, because the civil disobedience movement is stll in progress. Radio’s Funny Men Entertain Veterans COL. STOOPNAGLE AND BUDD TAKE TIME OUT FROM THEATER TO VISIT WATER REE! OL. LEMUEL Q. STOOPNAGLE and his i}nrlner. Budd; radio entertainers. gave the wounded veterans at Walter Reed Hosp! a few laughs yesterday. In the photo above are shown, left to right: Mrs. M. D. Shackelford, social worker; Samuel Rose (kneeling), American Legion radio officer; “Radio Joe" Kaufman, and, center. at the micro- alias Cg “Budd. phone, F. C. Taylor know to radio listeners as :l. Stoopnagle; Mrs, Wilbur Budd Hulick and her husband, Wilbur Budd Hulick, MILLS OPENS FlGHT OR TAX CHANGES Objects to High Corporation, Stock and Estate Levies in House Bill. _ (Continued From First Page.) tax as a foundation for the Nation's revenue structure. “What I wish to br very definitely is t income tax as a means in large measure the additional enue required, we cannot thin problem in terms of simply r: rates on those who already pay taxes,” He said. “To raise greatly in- creased revenue through income taxa- tion we must be ared to lower the exemptions to as a point probably as England does, and to impose a sub stantial normal tax on all taxpayers, even in the lower brackets “While recommending some broaden- ing of the base, the Tri y Depart- ment has not advocated such a course. In spite of its theoretical ad- vantages, there are very cogent argu- ments against it “For a long period of years we have ed on a limited, rather than a income tax. We have become accustomed to high exemptions and very low rates on the sm taxable incomes. That is our fixed conception of an income tax, and it Is very difficult, as a practical matter, to change fixed canceptions of this character. More- over, it must not be forgotten that the real burden of taxation in this country is due for the most part to local and State taxes, and they are borne, gen- erally speaking, by people of small and moderate means. Can’t Reach Lower Bracket, “There 1s a very real justification, therefore, for hesitation when it comes to the adoption of a Federal income tax which would really reach the lower incomes. But, having reached that conclusion, the next conclusion becomes inevitable, and that is that we must look to other forms of taxation in order | to fill the greater portion of the gap in our reventes. “To impose the full weight of the additional taxes on the present incor taxpaying class would make their bur- den almost unbearable and would penalize the capital actually ip business general econom$® of the Nation In seeking a substitute, the Treasu ef said his department had can- sed the entire field of taxation “We- recommended, broadening of the income tax base by a reduction of the exemp and an increase in the surtax es to the el of the 1924 act. which meant a doubling of the rates in the upper as a means not only of ob- ning such revenue asures would yleld, moderate the unts are,” he said. “but we recognized that if ever th when the doctrine of ability should apply, it is now.’ home to you e turn to the of fu W income ¢ to Objects to Sales Tax. Mills said the Treasury had rejected a general sales or turnover tax because of administrative difficulties and be- cause it was considered unsound in principle He called the manufacture rales tax one which presented administrative difficulties that might be hard to over- come in this country. Turning then to his objections to the bill, he discussed at length the posals for taxing industry and it ings “With the heavy taxes proposed on future possible railroad earr and on railroad divitlends,” Mills said, “coupled with the inhibition on carrving over losses from one year to another, the restoration of equity values essential to the restoration of the high standing of the underlying securities and of the | ability of the railroads to obtain neces- sary capital, becomes more difficult.” Mills said his criticism was not di- rected at the bill as a whole, but he hoped the committee would eliminate or modify the features to which the Treasury objectéd. He analyzed each of the sections of the House bill which did not meet with the Treasury’s pro- posals, and set forth his reason for ob- jecting to them. Would Saerifice Assets. Discussing the high estate tax in the House bill, he said it was obvious that in many cases executors or administra- tors would find great difficulty in mak- ing payment because they would not | have sufficient sets which could be readily turned into cash of paying such high taxes. he continued, would in many in- stances operate so as to bring about the sacrificz of capital values and the dis- ruption of business. “There is an immediate adverse effect upon business recovery through the imposition of drastic estate tax ** the Secretary said Unquestionably there will be strong pressure on constructive business men whose activities normally result in the upbuilding of new or enlarged business enterprises to refrain from employing their gapital in such enterprises and to put it instead in forms in which it can be readily liquidated. “When account is taken of this effeet it is not clear that the imposition of very high estate tax rates will not tend to increase the revenue from various sources and to check business develop- ments which might help in the field of employment and in other Ways. “Prom a broad economic standpoint I think you should consider the danger of impairing the working capital of the | Nation by this form of capital levy imposed at very high rates.” ‘ Doubts Wisdom of Tax. In discussing the provisions of tax transfers of stocks and bonds, the Secretary said the Treaswry had no information on whith to base an opin- jon whether they would interfere with ' |2 of such transactions in normal times. “In view, however, of the present existing in the security ," he said, “it is a doubtful wisdom to attempt an experiment of this kind. Indeed, those men compe- tent to know advise us that such a tax will serfously curtail legitimate and necessary activity on the security markets. “The provision intended to effect the application of the stock transfer tax to transfers occurring outside the United States calls for close study. Obviousiy there is doubt as to the legal power to give the tax extraterritorial effect and doubt as to whether the provisions of this section are capable of administra- tion or of just application. “From the administrative standpoint, there is some objection to basing a stamp tax lability upon a consideration of sciling price of value instead of the simpler consideration of number or par value of shares, which permit the tax to be most readily and definitely de- termined.” marke Suggests Excise Taxes. To supply the revenue which the changes he suggested would cut out of the bill, he suggested the Finance Com- mittee Tesort to some of the selective excise taxes embodied in the Treasury program he resubmitted. Departing _once from his prepared statement, Miss estimated that incomes of more than $100.000 amounted to $4.- 500,000,000 in 1928 and to $550,000,000 in 1931 Mills took with him a staff of Treas- ury experts and gave %is testimony to the committee in exe: ive session. Outside the Finance Committee room a swarm of representatives of various businesses awaited an opportunity to get in a word on the measure The calendar for hearings issued by the committee contained more than 50 names of witnesses and the schedule ran until April 22. Sharp criticism of the proposed tax on stock transfers was put before Chair- man Smort by two New York real estate men in an informal conference just before the committee began its session. They were Richard G. Babbage, chair- man of the board of the United States Realty & Improvement Co.. and Ed- ward P. Doyle, director of the Bureau of Public Affairs cf the New York Real Estate Board They said the tax was too large and if put into effect it would drive many brokerage houses out of business and would throw more than 700,000 em- ployes out of work. Detailed Plan Asked. Senator Harrison of Mississipp! ranking Democrat on the committee, asked Mills for his specific_program. The Secretary said he felt the com- mittee could take the Treasury’s orig- inal recommendations to supplement revenue lost by elimination of pro- visions against which he complained Harrison proposed that Mills submit a new and specific program. “Frankly,” replied Mills, “I much prefer wsury’s original program. I th I proposed by the Ways and Means Committee was all right, but I prefer our first program.” Chairman Smoot and Harrison asked Mills to submit in detailed form just to Senator Connally, Demo- the Secretary opposed attempt now to impose a retroac- Te! in the income tax on last income paj this year. Won't Urge Sales Tax. casury believes the time is levying a retroactive tax in- replied Mills. “The s were paid on March the question in our mind. acticable and you do the taxpayer an injustice. We favored such a move prior to the first tax payments on March 15. The discussion turned to the general of Tt an; tive year “The st crea sales tax which was stricken from the | bill by the Hou “Let us get it straight,” said Senator Gore, Democrat. Oklahoma. “In view of the decisive House vote against the sales tax, we aren’t going to waste time and try and revive it.” “The Treasury,” replied Mills firmly, “will make no recommendation for the manufacturers’ sales tax now.” Mills declined to express an nummn‘ on the policy of putting tariff rates in the revenue bill, as was done by the House in levying import dutles on coal and oil Democrats pressed him closely for a commitment on these rates, but he declined to go on record. THIRD FACES TRIAL IN MAGAZINE DRIVE Frank Amato, Keeper of Store, Charged With Offering Lewd TSsue for Sale. The last of the three magazines which were the objects of a city-wide police drive three months ago, after they had been termed “indecent” by the United States attorney’s office, went on trial today before a jury and Judge { Isaac R. Hitt in Police Court | The defendant is Frank Amato. 59. operator of a small magazine store at 467 G street | proximately 130 persons arrested in | the drive.” He is accused of offering | for sale copies of a “magazine of A lewd and indecent nature.” The Feb- f ruary issue is the one in question. | Previously, two persons who were | accused of offering the other two mag- | azines for sale were convicted. In each | instance, Judge Ralph Given allowed the defendants to go without a fine as he placed blame for the sale of the allegedly indecent publications on the publishers and local distributors. Rep i Lo Floods Cripple Rumania. BUCHAREST, Rumania, April 6 (% International ‘raflway traffic through Rumania was paralyzed by floods today. Passengers who departed from here for Vienna last night were compelled to | detrain at Cluj and awalt better con- ' | ditions. Amato was one of ap- | CAPITAL OBSERVES 15TH ANNIVERSARY OF WAR’S OPENING (Continued From First Page.) sporsorship of the District and United States Bicentennial Commissions and the Military Order of the World War, followed an escort of metropolitan police. Following immediately _be- hind was the grand marshal, Maj Gen. Paul B. Malone, 3rd Corps Area commander, and members of his stail With_him were representatives of the two Bicentennial commissions. No Holiday Granted. No order granting leave of absence to Government employes—Federal or District—was forthcoming, although all participating in the parade were ex- cused. Only the school children taking part in the event were excused from classes, although it was said at the Franklin Building that no objection would be raised to parents keeping their children away from school to view the parade. Crack troops from the service posts surrounding Washington were in the van of the long parade, while Navy, Coast Guard and Marine Corps units will add to the display. With this di- vision were three service bands—Army, Navy and Marine Corps—rarely seen together in any public demonstration cther than presidential inaugurations. Examples of modern armaments of greater effectiveness than those in use during the war, on rubber-tired chassis, were in the line of march. The ex. hibited weapons included trim ma- chine guns mounted on donkey-drawn carts and various examples of artillery. National Guard Units, Behind the representatives of Amer- ica’s standing military forces came the National Guard, uncGer command of Maj. Gen. Anton Stephan, head of the District National Guard. Col. Leroy W. Herron, commanding the 313th Field Artillery, led the Organized Reserve Corps. comprising part of the 2d Divi- sion of the parade. The Peserve Offi- cers’ Association, with Col. J. Miller Kenyon at its head, also was with this group. More youthful, but none the less colorful “marched the 3d Division, uncer command of Maj. W. H. Hobson, including the cadet units from the high schools and colleges, as well as R. O. T. C._groups. The 4th and last division included the veterans of the conflicts of the past, mothers of soldiers and sons of veterans and battalions from the many patriotic and fraternal societies. Reminiscent of “the spirit of '76,” a marching unit in the 4th Division was attired in Colonial costume. Department Comdr. Ferdinand G. Praser led his staff of the Ameri- can Legion. Many Legion groups from outside of Washington came to town to participate in the parade, as did ccn- tingents of other veteran organizations. Will Carry Service Flag. Veterans of the celebrated Rainbow Division formed an outstanding fea- ture of the 4th Division, and for the first time in any parade, the American War Mothers carried the American service flag which is regularly flown from the dome of the Capitol each Armistice dey The ceremonial avenues of the Capi- tal were cleared early in the day for the huge parade, and 500 policemer were on hand to enforce parking bans along the route of march and to handle the crowds milling beside the roped-off highways to watch the event. noon the participating units assemble on the streets be- tween Delaware and New Jersey avenues and B and K streets southeast. Each group taking part in the march was assigned an “assembly position” on some street in this area, and carefully organized plans for the formation of the column were carried out in detail Ambulances and first-aid stations were located at four points along the route of .the parade: Sixth street and ania avenue, Ninth street and ylvania avenue, Fourteenth street and Pennsylvania avenue and Fifteenth street and Constitution avenue. A num- ber of police patrol wagons also were s!all\nned at strategic points on the route. In Reviewing Stand. Police supervision of the parade was directed by Asst. Supt. E. W. Brown, aided by Inspectors O. T. Davis, A. J. | Headley and T. R. Bean. Besides the President, Secretary of War Hurley, Gen John J. Pershing, | Brig. Gen. John Ross Delafield, com-~ mander of the Military Order of the World War. and Maj. Edwin S. Bette! heim, in charge of arrangements for the parade, will be among the re- viewers. The distinguished guests on the in- vitation list included: Admirals Wil- liam S, Sims and William S. Benson; Gen. Douglas MacArthur, chief of staff of the Army; Lieut. Gen. Hunter Lig- gett, Lieut. Gen Robert L. Bullard Maj. Gen. Hugh L. Scott, Maj John A. Lejeune, Maj. Gen. James G. Harbord, Brig. Gen. Charles G. Dawes, Maj. Gen. Mark L. Hersey. Maj. Gen. Joseph E. Kuhn, Maj. Gen. Hanson Ely, Capt. John Parker Hill. Maj. Gen. | Clarence C. Williams and Maj. | Johnson Hagood. The parade will disband at Seven- teenth street and Constitution avenue | shortly after passing the presidential | reviewing stand. Gen. DOCTOR FLIES ANDES BOGOTA, Colombia, April 6 (#)—Dr. Antonio Munoz left by airplane yester- day for Quito, Ecuador, to perform an emergency operation on his son-in-law, | Col. Mariano Maldonado. The danger- ous flight across the Andes requires | five or six hours and there are no | landing fields on the way. The surgeon was flown by Maj. Benjamin Mendez and John Todhunter, |of Galesburg, 1Ill, went along as mechanic. Wine, ointments and perfumes, “offer- ings of the gods’ on behall of dead citizens of ancient Rome, have been found in a grave at Termoli. Gen! | 'SIX MEN STRICKEN FROM MASSIE JURY Each Side Uses Three Per- emptory Challeges as Selec- tion of Panel Advances. ___ (Continued Prom Pirst Page) gineers, bank clerks—white, part white, Hawalian, Chinese and Japanese. Then the weeding process began and the prosecution immediately challenged a Chinese whose place tentatively was taken by a white man, while Clarence Darfow challenged Henry P. Beckley ranchman and brother-in-law of the politically powerful Princess Abby Kawanakoa, widow of the late Prince Devid Kawanakoa. This picturesque and keen-minded woman is the head of a native Hawailan group, and in the present situation she is being continually con- sulted by her people. But aside from Mr. Beckley's relationship through his wife, he also was a former military aide to the governor and a deputy sheriff with police affiliations. Until recently he has been manager of a ranch on the Island of Hawali. Humor Breaks Weariness. The prosecution then challenged a white man who formerly had been in the British army and iS now overseer of a plantation. The defense next eliminated a Japanese and a white banker was barred by the prosecution. The final challenge was of a Hawailan musician by the defense. Aside from the interest in these challenges the day passed in a weary procession of men through the jury box, enlivened now and then by humor, There was a man who said he had formed no opinion, but who, under Mr, Darrow’s skillful questioning, finally ad- mitted he had once saild they ought to be shot. He finally was permitted to drop out by mutual agreement There was the Hawalian beach boy who said he was training for the navy in the local armory and caused chuckles by the way in which he answered ques- tions. One Hawalian, who the day be~ fore said he wanted to be excused be- cause he didn't know anything about the case, got himself into a predicament by showing he could not understand English at all. He meant well, but underwent a difficult few minutes while Judge Charles S. Davis questioned him and obtained nothing but blank looks or looks of bewilderment. Prosecutor Makes Mistake. Barry Ulrich, associated with the prosecution, made a mistake early in the day by sarcastically asking a jury= man if he had not heard of Mr. Darrow just as he had heard of President Hoover and Abraham Lincoln and other famous men. A short time later Mr. Darrow calmly defeated him in the line of examination and made Mr. Ulrich, who seemed somewhat put out, reframe the question. Again Mr. Ulrich pressed his examina~ tion to the point where it became em- barrassing to the prosecution while Mr. Darrow mildly beamed at him. Aftef this John C. Kelley took up the ex- amination. Mr. Kelley has shown un- expected suaveness and an indication he is a worthy opponent of Mr. Darrow. | His brother, Cornelius Kelley, is presi- dent of the Anaconda Copper Co. All during the trying day Mrs. For- tescue and Lieut. Massie and the two Navy enlisted men, the codefendants, sat silently and almost rigidly in their chairs behind the counsel table. Their backs are to the rail on the other side of which are the tables used by the newspaper men. None of them, except Lieut. Massie, ever looked around the court room. To avoid the crowds which gathered at the rear of the court house, they were taken to the front entrance and got into cars under police escort just as people came running around the building in the hope of sezing them. Nobody is allowed By the building without a pass. Two in eech car under Navy guard, with motor cycle police- men in front and behind, the four de- | fendants come in each morning from Pearl Harbor and return there at night. The battle of peremptory challenges will be resumed today with the pos- sibility that it will be a long and dreary affair, Each side has 21 challenges left and they are using them so carefully that the examination of each talesman is bound to take more time than during the first two days. It is evident that the desire of each side is to obtain a certain type of jury and the fact that ordinary requirements for jury duty do not hold in this case makes necessary much deliberate searching of each new man in the box before he becomes acceptable. (Copyright, 1932. by the North American Newspaper Alliance. Inc.) NAVY PRAISES ARMY ‘The Navy, through Secretary Adams, today wished its sister service success for Army day. In a statement sald “The celebration of Army day this vear has a particular significance to the American people because of their celebration of the Bicentennial of the first general and President, George ‘Washington. “The Army, inspired from its infancy by such great example cf patriotism, leadership and unselfish devotion, has continued to serve the Nation truly and well in both peace and war. The Navy wishes its sister service continued suc- cess in every field of endeavor.” PAUL-BONCOUR CHOSEN PARIS, April 6 (#).—Joseph Paul- Boncour, acting president of the League of Nations' Council, was named perma- nent French delegate to the League to- cay, replacing the late Aristide Briand. Secretary Adams March Circulation Daily .. 122,391 Sunday, 128,528 District of Columbia. s: FLEMING NEWBOLD, Business Manager of THE EVENING AND SUNDAY STAR, does olemnly swear that. the actual number of les of the paper named sold und dis- uted during the month of March, AD. was as follows 3.301.549 net_daily circulati 121307 net_paid c tion number of copies for Daily average net circulation SUNDAY. Coptes. Days 131145 20 Days. 131,398 27 | Jo Less adjustments Total Sunday net circulation. . S14.118 Average net paid Sunday circulation 127.880 Average number of copies for serv- ice, etc.. cenen . . B4R Average Sunday net eu:uhug.n L. 128,53 FLEMING NEWBOLD. Business Manager. Subscribed and sworn (o before me this sm':alr of April. A.D. l)fll ». YOUNT, (seal)y ELMER P. Notary Public. 4