Evening Star Newspaper, May 22, 1932, Page 2

SALESTAX URGED | Other Levies Called Inade- quate—Balancing of Bud- get Termed “Necessary.” OINCINNATI, May 21 (#).—A de- mand for a sales tax rather than any other method of producing emergency revenues was made today in a resolution at the annual convention of the Associ- ation of National Advertisers, an or- ganization of the leading buyers of ad- vertising. ther levies were considered inade- quate, unfair and discriminatory. At the same time, reduction’ of govern- mental expenditures and balancing of the Federal budget were termed “fun- damentally necessary” to end unem- ployment and restore business con- fidence. In industry itself, maintenance of balance between competition and co- operation’ was urged by Harry Tipper, former vice president of General Motors Export Corporation. Co-operalive planning by industry was termed by Charles R. Hook, presi- dent of the American Rolling Mill Co., as “the only sound, logical way out of our difficulty. “Our obsolete, trust-busting legisla- tion for the protection of the con- sumer against monopolies has been largely res) ible for the I stay of adverse business conditions,” he as- serted. “The problem can never be solved by Government inhibitions.” CANADA'S SALES TAX WORKS SUCCESSFULLY, STAR POLL INDICATES (Continued From First Page.) by the people than any other form of taxation. ‘The opinion of the newspaper pub- lishers was sought by The Star in view of the proposal now advanced to im- pose a manufacturers’ sales tax as part of the revenue-raising machinery of the United ‘States Government. Such a tax was included in the revenue bill re- ported to the House by the Ways and Means Committee of that body. Sen- ator David I. Walsh of Massachusetts, 4 member of the Senate Pinarice Com- mittee, has prepared an amendment to the revenue bill now before the Senate levying a manufacturers’ . sales tax which he will offer as a substitute for many of the special and “nuisance taxes” now carried in that measure. The manufacturers’ sales tax Canada, the replies of the publishers show, has ranged from 1 per cent to 6 per cent. It was enacted first in 1920 to meet war costs, and for several years Tan along on & 1 per cent basis. ‘was then increased to 6 cent on & Testricted list of commodities and scaled down year by year, until in 1930 it reached 1 per cent again. In 1931 ft ‘was increased to 4 per cent again. This year it hes been raised to 6 per cent and the list of commodities to which it applies has been somewhat extended. The manufacturers’ sales tax pro- | posed in thé House Ways and Means Committee bill was 3% per cent. Sen- ator Walsh of Massachusetts is pro- posing a tax-of 1 to 1}, per cent. J. H. Fortier, puu;fimoxnm ment, Quebec, writ his opinion of the manufacturers’ tax, said: Burden Felt Little. “Taking for granted that we cannot escape paying taxes, I believe that the sales tax is as equitable as any of the u:mwhuhnnbempondumm public. “The public does not see directly the cost of the fax, as it is paid and in oh as we goods . 0 thé amount of the pur- over every paid for by e body in proportion to purchases. THoney 0 spend ah pureases of goods loney on pay a larger share of those taxes than the less fortunate. “The sales carries less criticism at Jarge, as it is paid from the pul public without no- by the purc] ticing it very much. “An advantage of the sales tax is that it brings a proportionately large revenue to the government. “The sales tax does not apply to ex- ported goods and it is collected on a minimum of expense to the government; the manufacturers and wholesalers are acting as ’mement agents for the collection of those taxes, and remit di- restly to the tax department. “Food products, with few exceptions, :rv exempted from the levy of the sales ax. “As to the popularity of the sales tax, we hear very little criticism from the public, for the good reason that it is paid by the public almost without noticing it. The wholesalers and manufacturers do not like the sales tax, as they are used as government collectors for that tax, for which they have to remit to the Government every 30 days on the amount of sales made during the month and oftentimes forced to wait upon their customers for weeks, if not for months, before they can col- lect that tax back along with their :;An accounts from their own custo- ers.” Sales Tax Proves Effective. The eflectiveness of the manufac- turers’ sales tax in Canada is clearly | set forth in the following telegram Wwhich was received from George Farquhar, editor of the Halifax Chronicle: “The Canadian sales tax first was @dopted as a war tax and so accepted without complaint. The people are ac- customed to it. From 6 per cent it was gradually Teduced to 1. Last year it was raised to 4 per cent and this year to 6. The mass of psople give little heed to it, as it seldom comes be- fore the public eye, being buried in the price of the article. The sales tax is effective, catching everybody. the last fiscal year it was almost the only tax to show an increased revenue. With higher duties customs revenue fell 29 million. With a higher income tax the revenue fell 10 millions. Ex- Cise tax revenue fell nine million. When the sales tax was raised from 1 to 4 per cent it doubled the revenue, Tising from 21 to 41 million.” ‘ The Chief Objectors. W. J. McNair, managing director, the | Hamilton Herald, Hamilton, Clnld‘: #aid Of course, no tax can be called popular, but it can be truthfully said that there is perhaps less objection to the sales tax than almost any other | form of taxation “The reason is that it is largely ex- tracted inlessly, because a vast ma- Jority of those paying it do not realize that they are so doing. It is largely charged up against the retatler, who passes it on the the consumer in the selling price of the product, and the buyer made recently. “The chief .objectors are small manu- facturers, who have to absorb it be- cause of sharp competition, and cannot it on to the consumer. er, and therefore a large part of it collt from the people least able to pay addi- THE. SUNDAY STAR, WASH The Sales Tax in Canada’ " BY ADVERTISERS| | stecar 1 Provn i et o e Dislocating Effect of Increases Has Been Tempo- rary and Prices Have Not Increased Abnormaily. BY JAMES MONTAGNES. ARTICLE 5. TORONTO, May 22, 1932. HE Canadian sales tax has been a partial impetus to business during the past two years, Strange as it may seem, the tax has meant an lncreluAni: 1 sales just prior to budget time. the reason for this goes back to a fundamental difference in the legisla- tive powers of the finance ministers in Canada and the United States. When a minister of finance in the Canadian Parliament reads the national budget and the increases or decreases in taxation he also mentions that they g0 into effect at once, or at the latest | about a month after his speech. It is not necessary for Parliament to sp- prove the budget before it becomes law, as is the case in the United States Congress. ‘This year the budget speech read after the beginning of the fiscal year, which starts on April 1, included an increase in the income tax, and the returns for this had to be filed before the end of April under the new sched- ule but s few weeks be- fore that time. nounced to start on May 2, showing the discretionary powers of the finance minister. And though a lengthy de- bate on the budget is a usual procedure before Parlaiment approves it, the taxes it imposes become effective at once. Be- cause of this procedure the budget is never read till after the close of the stock exchanges, so that in reality it | dis does not go into effect till the following | day. The last two years have seen increases in the sales tax. Prior to the reading of the budget these increases were rumored. And to forestall paying the added taxes Canadian business has on each of the budget occasions seen an increase in sales to be effective under the lower rate of sales tax. Teeth Are Sharp. ‘There are teeth in the Canadian sales tax act which even dig into such sales increases to forego paying incressed taxation. The 6 per cent rate this year for example, went into effect immediately to preclude any possibility of large orders under the old rate to be delivered on the instaliment plan. The tax rate in force at time of deli‘very is the rate which must be pai Increases in the sales tax have had a dislocating effect on business for a short period, till the new rate could be worked into new prices. The alteration of prices overnight has resulted from some of the recent changes in the tariff. There has been a definite increase in some classes of due to the increase schedule, but only in such merchandise where the profit is small. It is too early, dv leading men, to say what effect the new 6 per cent rate will have on an increase in retail merchandise, since most retailers are still keeping stock bought before the recent rise in rates. Where the margin of profit is fairly large no great change prices is expected, the added 2 per cent being partially absorbed in the business. Also where articles have been sold in a small price range it is ex- ed that there may be some absorp- of the tax in the selling price if it remains unchanged. Other taxes were an- | this is There is some difference of opinion in Canadisn business circles as to how flfx}x‘ = "fififm = 'm the e‘;’ ess. are ~ fect that the consumer pays the whole tax, with perhaps some profit on the tax. But, as pointed out, there gre some cases where absorption un- doubtedly takes place. Where to in- sure sales as against a great falling off of sales if the tax is included the tax has been krown to have been absorbed. But only to defend sales does the manu- facturer, wholesaler or retailer making a small margin of profit absorb all or part of the recent sales tax increases. Retail Prices Drop. When the new rates were announced last April there was a certain amount of kicking by business against this new tariff, and threats of greatly increased prices were the order of the day. While there have been some increases in whole- sale prices, retail prices of some of the firms objecting to the raise have since dropped, new tax not withstanding. One line where u‘:‘m have been boosted because of the new tax is the liquor business. Since in most provinces a government-operated business, the new prices were prominently dis- played and announced in the press and the reason for the raise given. The liquor business being a big revenue pro- ducer for the provinces, it is natural that the provinces would not absorb the new tax, nor has the price of liquor gone down as has other staple merchan- e, Talking of liquor, distillers and brew- | ers doing a large export business have been unable to claim ‘exemption from the sales tax on this side of their busi- ness, since it is illegal to ship liquor to prohibition laws. One of the largest distillers in the Dominion omly a few years ago lost a case on the evasion of the sales tex on its exports, and was forced to pay nearly half a milllon dol- lars in tax arrears and . Exporters have to show a through bill of lading and foreign landing certificates satisfac- tory to the minister of finance to get the exemption on liquor exports, and this is not obtainable in the present method of “exporting” liquor to the United States. Tax Hits Luxuries. According to the imperters, the home industries are benefited by the sales tax. According to some, foreign indus- tries anxious to locate in Canada, are being kept out by the knowledge of the high sales tax and the special import tax of 8 per cent charged in addition. These taxes are payable on the value of the article plus the customs duty. Especially importers in luxury lines claim they have been hit hard by the tax. As imports have been greatly handicapped since the entrance of the present government late in 1930, these special import excise taxes are thought to be another feature in the “Canada First” program of the government. In general, the effect of the sales tax on Canadian business has not been detrimental, nor has it sent prices up to an abnormal height. While it is a tax that is encountered daily in the business world, it is the general opinion of Canadian business men that the effect of the tax on business is no greater than that of any other tax on business. deal more of the small nuisance taxes than do of the sales tam We be- lieve that your country would graciously accept the sales tax after it was once in operation. greal Ol mmflhmnnfim if a tax was enacted by your Gov- ernment at Washington. We would then | be on a par.” Causes ' Little Inconvenience. J. D. McKenna, president, the Tele- mzh:axrm 8t. Johns, New - wicl 2 “The sales tax has been enforced in Canada for a number of years and is now a well method of rais- ing mon lederal purposes. At the moment it is 6 per cent on all articles manufactured in Canada, with a few exceptions. “The tax was brought in as a war measure and has been lowered and raised from time to time. This year a number of articles which were exempt from the tax have been removed from | p, the expected list and are now taxable. “So far as I am aware, the tax causes very little inconvenience. The ordinary purchaser does not encounter the tax personally because it is paid by the manufacturer and is either absorbed by him or handed along to the business house to which he sells. The man on the street only becomes cognizant of the tax when he buys from a manufac- turer or wholesaler. . “A proposal to establish a turnover tax in Canada met with strong opposi- tion and was abandoned and the sales tax continued.” ‘What Tax Has Yielded. A telegram from W. F. Herman, pub- lisher, Border Cities Star, Windsor, Ontario, said: “The sales tax, like all other taxes, is considered & necessary levy in order to raise revenue. The sales tax appar- ently is preferred by the majority to & turnover tax. The revenue from the sales tax in Canada has been: “Fiscal year 1927-1928—$72,000,000. “1928-1929—863,000,000. +1929-1930—$44,000,000. +1930-1931—$20,000,000. “1931-1932—$41,000,000. “The sales tax was 6 per cent in 1923. It was reduced progressively to § per cent, then to 4 per cent and was 3 per cent in 1928. It was reduced to 1 per cent in 1930. In 1931 the sales tax was increased from 1 per cent to 4 per cent. This year the tax has been increased sgain and now stands at 6 per cent.” Tells Canada’s Experiences. M. W. Rossie, editor, London Adver- tiser, London, Canada, says: “The sales tax was introduced into Canada in the guise of & tax on & limited number of commodi but as the amount of the tax was plainly indicated to the consumer on every re- tall purchase he made, it became so unpopular that it was abandoned, after a short trial, in favor of the present manufactures sales tax. Under the ex- isting system, which has been in opera- tion over 10 years, the amount of the tax 1s absorbed in the price to the ulti- mate consumer, and is, therefore, invisi- ble so far as he is concerned. “The business interests, until the present depression, caused such grave disturbance of th:h kdbeorlfii flnol;lc:es, continually urged the al on = duction nly the.sueu tax. The rate had risen in 1923 to 6 per cent, but after 1924 it was reduced year by year until by 1930 1t was only i per cent. It was h that the tax would dis- 1931, but revenues were fall- , and in the new government’s first budget of that year the rate was raised from 1 to 4 per cent. This year it was of falling prices for ucts, le on the whole o Six hnu'}u'f effect, the cost ving. It 3 of course, but it is concealed from all consumers, being levied manufacturers. It has | canny ernments have always taken the posi- tion that the Canadian income tax rate cannot safely go much beyond the level of the United States rate without discouraging the investment of Ameri- can capital in Dominjon and_en- coumfig an f:lq !& this c ry.” of ecaj Accepled Philosoplipa Charles’ '\ Mundy, m,m,*u,e (xl:l"l Daily Times, wa, Canada, said: “The sales tax on manufaetured goods in Canada has been accepted philasophically by the Canadian people as & necessary means of raising reve- nue, particularly during. these trying times when many other cources of revenue are cut off or seriously cur- tailed. “There has always been strenuous opposition in Canada to any move to apply the sales tax to retail sales, but when collected by manufacturers and absorbed in the retail selling price it is not regarded as a very serious uisance. “Of course we cannot say. that the Canadian sales tax, or any other form of taxation for that matter, is popular with those who have to pay it, but it is accepted and I believe strictly ob- served. It is collected through the cus- toms department, which has a staff of inspectors and auditors who make periodic check-ups of manufacturers. If preferred, manufacturers have the privilege of absorbing the sales tax in their selling price, but of course they muust remit the amount due to the local cusoms office just the same. “As you doubless know, our Canadian sales tax was recently increased to 6 per cent in an effort to balance our budget. This is the highest figure it has reached, and one would have thought considerable criticism might arise, but such has not been the case, as the people generally feel that strin- gent measures are required at this par- ticular time.” Another article on Canad’s ez- . periences with the sales tar will ap- pear in The Evening Star tomorrow. DOCTOR TAKES STAND TO TELL OF ABDUCTION Chicagoan Faces Two Friends Ac- cused With Others in Plot to Get $50,000 From Him. By the Assoclated Press. CHICAGO, May 21.—Ransom nego- tiations of & gang of kidnapers were described from the witness stand today by Dr. Max Gecht, ane of the firs victims in the recent wave of kidnap- ings to face men charged with his abduction in court. The men who kidoaped Dr. Gecht and his attractive young wife first de- manded $50,000, he testified. Then they cut the ransom down to $20,000, to $5,000, and finally released both of theén after a little over $2,000 had been paid. “I1 guess we had you overrated,” the doctor quoted one of the kidnapers as saying. He said the gang had an un- knowledge of his financial affairs and asserted some of the de- | tails were known only to his friend, | Ward Swalwell. Swalwell, one of the defendants, claims to have been in- termediary, but the Sipte charges he was really the “brains™ of the g. Edward Finnen, also a friend of the Gechts, is the other defendant. CHILD WILBUR FOUND DIES OF MALNUTRITION Pure Cream Diet at Hospital Fails to Halt Starvation of Moun- tain Youngster. By the Assoclated Press. | LURAY, Va, May 21.—Paul Cobin, the = 4-year-eld u-g.und mountain é‘é‘c‘"‘w‘"” fay Lyman Wibir and a a toddy despite here all phy- sicians could do to restore his health, ‘They had fed him the United States or any country with | pass SENATE TO RENEW TAX BILL BATTLE Norris and Tydings Prepare New Moves to Block Im- port Levies. (Continued Prom First Page.) both Republican and Democratic lead- ers. The word has gone forth that Con- Fveut tevisation dasigned o ‘el roug] on ce the budget before the close of the fiscal year, June 30. This includes the econ- omy program as well as the reven bill. For the balancing of the budget by means of increased taxes provided in the revenue bill is contingent upon Congress making drastic economies Government operation. May Miss Conventions. ‘The Republican and Democratic Na- tional Conventions may be compelled to proceed next month with many prom- ‘m:‘ therings hnentm 3 ol such ga al 3 Senator Pat Harrison of Mississippl, ranking Democratic member of the Sen- ate Pinance Committee, and Senator David I. Walsh of Massachusetts, an- other member of that committee, both sald last night that it was the duty of to remain in session, with no recess for the national conventions, un- til the desired legislation had been put through. The Democratic leader, Rob- inson of Arkansas, sald he would oppose a recess until the tax bill has been passed. - Two Republican Senators, David A. Reed of Pennsylvania and George H. Moses of New Hampshire, issued a joint formal statement declaring that Con- gress must stay on the job in Washing- ton, conventions or no conventions, and the revenue bill and other neces- sary legislation to balance the budget. Senator Watson, Republican leader, re- iterated his assurance there would be no recess or adjournment until the program is_comp! 3 Senator Walsh is the leader of his party in Massachusetts today. He has been mentioned for a place on the Resolutions Committee of the Demo- cratic National Convention, which will draft the party platform. The Massa- chusetts Senator said, however, that it Congress remained in Washington because it had not completed the legis- lative program e would stay here. Senator Reed has been expected to represent Pennsylvania on the Platform Committee in the Republican National Convention and to become chairman of that committee. Only 19 Working Days Left. Only 19 working days, including Me- morial day, remain to Congress before the opening of the Republican National Convéntion in Chicago. Congressional leaders figure that it is practically im- possible for the Senate to put through the revenue and other major bills, iron out its differences with the House over these legislative matters and adjourn by the time the convention opens. Only by the most intensive drive and with the Senate in much better form than it has displayed jn recent days could this end be accomplished. The leaders are hoping that a desire on the part of the great majority of the members of Con- gress to wind up their work and get through before the national conven- tions may have its effect and bring quicker action. But they admit it is only a hope. The statement issued by Senators Moses and Reed, both of whom are delegates at large from their States to the Republican National Convention, said: “We are firmly of the opinion that no duty which can be laid upon us as representativé' ‘partisans and as dele- gates to the nominating convention of our party can transcend the duty to gogp]zu this legislation without further elay. “Accordingly, we are willing to fotego the political activities attendant upon our membership in the Republican Na- tional Convention if our work here is not finished by that time, and we hereby announce our purpose to remain in Washington in continuous session until we have done our part in the fulfillment of the program which the country not only requires but demands. “In our opinion, Congress should re- main in continuous session, so that the end of the fiscal year will see com- pleted a program of legislation which will assure the solvency of the Federal ‘Treasury, the maintenance of our mone- tary standard and the speedy re-estab- lishmert of the country's industrial activity,” Rainey Ready to Stay. Representative Rainey of Illinols, | Democratic leader of the House, also expressed a belief that it would be im- possible for Congress to complete its labors in time to adjourn for the na- tional conventions. He added that he would oppose strongly any adjournment or recess until after the program has been disposed of. ‘The economy program for the Gov- ernment, to be written into law, is still in the process of development by sub- committee of the Senate Appropriations ttee composed of three Republi- cans and three Democrats. Its pro- posals are likely to lead to controversy, despite the fact that it is being worked out along non-partisan lines. The Demacratic subcommittee ap- pointed to tackle a relief am has completed its work and e public the results. There are strong intimations that the program must be modified, however, before it is finally accepted. Opposition to the proposed $500,000,000 bond issue for public works is cropping sut in Republican TS, Speaker Garner has advanced a pro- of his own for relief which differs many essentials from that of the Senate Democrats as well as from the plan advanced by President Hoover. MILLS IS HOPEFUL. Secretary of Treasury Gives Objections to Democratic Relief Program. By the Associated Press. Administration objections to the new Isembe Democratic relief program were | voiced yesterday by Secretary Mills, but confidence prevailed at the Capitol of a harmonious solution of this prob- lem before adjournment. Mills refrained from detailing his ob- Jection to the $2,300,000,000 Democratic plan announced by the Senate's special committee, but it was made clear in ad- ministration quarters that the $500, 000,000 public construction bond issue was the stumbling point. Senator Robinson of Arkansas, the | Democratic leader and a member of the |special Relief Committee headed by | Senator Wagner of New York, expressed | confidence that the program would be the basis for action. Hope for Compromise. He emphasized to ner pers that the ik e e L S e ¥ Proj ons planned for next year ln.&a regular e works, and d. Apparently pointing to the $500,000,- 000 d issue Secre Mills, who stated he did not speak for the President, said: “I will say.that there is no great amount of enthusiasm for an unbal- gced budget and a pork-barrel plan at e Treasury Department.” ‘While Republican leaders have been slow to draw a issue on the reliel {program, hoping for a non- NGTON . C, 'Clemenceair’s Fufiifly Boycotts Unveiling Of Paris Monument By the Associated Press. PARIS, May 21.—The family of the late Georges Clemenceau to- day declined an invitation of the Paris Municipal Council to attend a private unveiling of a monu- ment to Prance's “Tiger,” criticiz- ing the ceremony, the statue and the site. The family termed the statue, which shows the former premier in overcoat, muffler and heavy shoes in full stride, “derisive.” They said his friends also would stay away. = SENATE ECONOMY PLAN T BE PUSHED Subcommittee Hopes to Re- new Meetings Not Later Than Tuesday. ‘The special Senate subcommittee handling the question of governmental economy will resume deliberations early this week and push ahead as rapidly as possible to work out a program of retrenchments to help balance the budget. Senator Jones, Republican, of Washington, chairman, hopes to begin meetings again not later than Tuesday. ‘The subcommittee is working in executive session, going over all phases of the problem, including various pro- posals that were originally considered by the House Economy Committee. It is not likely that decislons will be an- nounced until the subcommittee has completed its study of all angles of the question. Salary Cut Question. One of the principal points to be de- cided is whether there should be 4 salary cut in Government salaries above a certain exemption, or whether, in lieu of that, a system of furloughs should be adopted. The House, in passing the bill, approved an 11 per cent pay cut on that part of a Govern- ment salary above $2,500. The Presi- dent favors a furlough plan instead. Another important phase of the program is the Pmml to give the President general authority to bring about retrenchment by co-ordinating and consolidating governmen ‘There are many other methods of economy to be weighed in the balance before the bill comes out. The intention is to have the economy program ready for Senate considera- tion immediately following the tax bill, but how soon that will be is difficult to forecast. A fight has developed in the Senate over the inclusion of tarif items in the tax bill. Other Fiscal Bills Waiting. ‘The econcmy program came from the House as a-part of the legislative appropriation bill. There are a number of other annual appropriation bills awaiting consideration in the Senate Appropriations Committee, but, since the basic questions involved in the econcmy measure have a bearing on appropriations generally, the various supply bills are beirg held in abeyance to await outcome of the economy measure. Once the economy plan is completed, 1t is believed that the various unfinished appropriation bills will be reported out of committee and considered quickly. ‘The supply bills pending in the Senate Appropriations Committee the Treasury - Post Office, - independent offices, Navy, Army, legislative and Dis- trict of Columbia. WARNERS DEFEND $9,000,000 PROFIT (Continued Pre irst_Page.) Schneider, his counsel, to his side at the table. The witness said he and his brother, Albert and J. L. Warner, owned about 303,000 shares out of 2,500,000 out- standing at the beginning of 1930, and that when he bought and sold It was for the three of them. Schneider, testifying for Warner, said most of the trading was done under the names of “Moe Rosenberg” and “Harry Charness.” Accounts were maintained in half a dozen brokerage houses, he sald, but most trading was done through Schatzkin & Co. “Why did you deal under those names?” Gray asked. “We found when we traded in the name of Harry or Albert Warner it in- fluenced others,” Schneider replied, adding that the purpose was to prevent brokers and not the public from know- ing their operations. i Gray said that out of their 303,000 shares they sold about 180,000 in Jan- uary and February. ‘Warner explained that they wanted to “diversify” their holdings. More than $3,000,000 of the money was loaned to | the company in return for 10-year debentures, he added. Selling continued through June, Gray said, giving the details for each month. 1930 Dividends Passed. Dividends of $4 a share were in the latter part of 1930, Warner said. He denied, however, he knew that action was coming, insisting that he did not know it until late in the year. Gray then read to the committee a published statement in August, 1930, saying earnings of the corporation were not enough to cover dividends. Questioned by Gray, Schneider said the Warner brothers to buy the stock back in August, and this continued through November. Gray sald his figures showed that the Warner Brothers sold 305350 shares during the yes for $16,520,000 and beught back 326,500 for $7,544,000, mak - ing a profit of $8.976,504. Additional stock_brought the profit total to $9,251, 454, he said. The counsel said the average price at which the brothers sold their stock was 54 and the average price they bought it at was 23. After the hearing, the Steering Com- mittee, in charge of the inquiry, decided to continue it until June 10 and hold one public session a week. Chairman Norbeck announced the next session would be Priday or Satur- day of next week, depending on when Gray coult get material ready. Gray did not indicate what he would present at this time, but said he was investigating certain transactions in Fox Film, among other stocks. Norbeck indicated that if the investi- gation could not be concluded by June 10 it might be continued into the Sum- mer, particularly if Congress comnes back after the party conventions. Hermit Found Shot, Amid Savings, AYERSVILLE, N. C, May 21 (#). James R. Belieles, 73, who lived alone in apparent poverty in a cabin near here, was found shot to death yester- day, and officers discovered $746 in silver and small bills stuffed into cracks, crockery, sugar sacks and old socks his cabin. e propriations of $375,000,000 to aid the unemployed, withheld comment upon | the program. ‘They are expected to renew their con- test, but there were signs that rather mmn prevent any relief they would not in the way of the com providing $300,000,000 for loans to States the Corporat 1,500,000, S pevate el for c iting enterprises. MAY ' 22; ‘1932.~PART ON GOVERNOR MAY GET| | Forum speaker WALKER CASE SOON Roosevelt Is Advised He May Face Quster Plea Before Convention. By the Associated Press. WARM SPRINGS, Gs., May 21— Friénds have advised Gov. Franklin D. Roosevelt of New York that he likely will be called upon before the Demo- cratic national convention to - decide whether Samuel Seabury has estab- lished a case strong enough to justify the removal of Mayor James J. Walker of New York City. Coincidental with circulation of the news here that Walker would be called to testify before the Hofstadter Legis- lative Investigating Committee next Wednesday, it became known that Gov. Roosevelt has been told the ouster de- mand probably will go from Seabury’s office early in June, three weeks before the Democrats convene at to consider Roosevelt's bid- for the w;mt dential nomination. bury is ‘the Developments Impertant. Particular im nce is attached to the. Walker developments because of the | probable influence they may have on the Tammany Hall group of conven- tion delegates. A large block of New York's 94 votes will be cast by Tam- many Hall men or delegates friendly to Tammany Hall. Roosevelt ended his third week here today. He will be back in New York firb;w hx;extlweek. 'x‘umurmgfe hemgg ve to Atlanta where in the evi he will address the graduating class of The relief program, worked out by a Oglethorpe University and receive an | committee of Senators, will be discussed honorary doetor of laws degree. by Senator Key Pittman of Nevada in Divided on Speech. the National Radio Forum tomorrow at Ever since he arrived here Gov.|9 p.m., Eastern standard time. The Roosevelt’s advisers have been divided | National Radio Forum is arranged by on the kind of speech he should make | The Washington Star and broadcast in Atlanta. Some have urged that he |over a Nation-wide network system of deliver “a fighting speech” attacking |the National Broadcasting Co. elements in his own party which have | Republican and Democratic leaders called him a demagogue and outline | have announced that a relief program a specific program for economic relief. to meet the t emergency Others have counseled a_neutral | and to care for the unemployed must be course inasmuch as put through before Congress adjourns. campaign is progressing satisfactorily. | The Democratic leader of the Senate, Which advice he has accepted could | Senator Robinson of Arkanses, and not be learned today as the Governor | President Hoover have conferred on the put finishing touches to his speech. subject, and hope bas been Samuel I. Rosenman, former counsel | that the program may be dealt with to Roosevelt and now Supreme Court | along non-partisan lines. Justice in New York City, spent the| Senator Pittmen is a member of a RELIEF 15 FORUM Nevadan to Discuss Program Worked Out by Committee of Senators. TOPIC OF PITTMAN =22 IN OWN STOCKS| day with the Governor. WALKER OVERDRAFT REVEALED. Probe Discloses Coach Company Agent Paid Excess on Trip Cost. NEW YORK, May 21 (#)—An Ohio coach company's agent who bought Mayor James J. Walker a $10,000 letter of credit and paid a subsequent $3,000 overdraft on it loomed today as & cen- tral figure in future hearings of the Hofstadter ~Committee investigating New York City affairs. Counsel Samuel Seabury disclosed that J. Allan Smith, Eastern sales rep- resentative of the Twin Coach Co., of Ohio, had been brought back from abroad under the law which Russell T. Sherwood, missing friend of the mayor, defied when, subpoenaed to testify, he left the country. Smith was identified in yesterday's as in the employ of the com, ‘whese president, Frank R. Fag provided funds with which the Equitable Coach Co. w: 2 winning campaign for a bus franc! in New York. HOUSE CLEARS WAY - FOR VOTE ON BEER| Action Set for Tomorrow—Bing- ham Changes Bill to Gain Votes. By the Associated Press. ‘The House yesterday cleared the way {for a vote Monday on 2.75 heer, while 8 Senate sponsor of a similar measure | changed his bill so that it, too, called | for ‘an alcoholic content of 2.75 per cent by weight. The impending vote on the beer-for- revenue proposal was the only reason the House met. Parliamentary require- | ments made the session necessary if the O'Connor-Hull bill, which calls for a 3-cent-a-pint tax on the brew it would legalize. was to be taken up on the next legislative day. Senator Bingham, Republican, of Connecticut, in amending his bill to call for 2.75 beer instead of 4 per cent by volume. indicated he did so because he expected at least five additional votes by the change. He also amended his proposal to re- peal the eighteenth amendment to pro- vide that no State could prohibit the shipment in bond of intoxicants across its borders when they are in transit be- iween points not in the State. Bingham's beer proposal, pending measure in the House, calls for a tax. He intends to bring it up when the section in the tax bill levy- ing duties on automobile sales is eached. T 5 The Connecticut Senator said that if the beer proposal passed it would elim- inate or reduce many nuisance taxes now in the measure. He does not, however, expect it to be approved by the Senate, but said he looked for “about 30 favorable votes. The Senate last week defeated, 61 to 24, a beer amendment introduced by gend.w Tydings, Democrat, of Mary:- nd. Representative William E. Hull, Re- publican, of Illinois, one of the spon- sors of the House beer bill, today pre- dicted between 170 and 175 favorable votes for it. The proposition was defeated by a standing vote during consideration of the tax bill, but anti-prohibitionists in the House want to get the membership on record before the Fall elections. NEW POLAR EXPEDITION IS PLANNED BY WILKINS | Eritish Explorer Says He Will Use Submarine With “Unsus- pected Characteristics.” By the Associated Press. BARCELONA, Spain, May 21.—Sir Hubert Wilkins, British explorer, said Use of the submarine the only feasible method of practical study of the Pole. He told of the contemplated undersea expedi- tion to the North Pole, which would his second under Arctic ice, before departing for Italy to attend the con- ference' of transoceanic aviators. Two Die in Collision. CHICAGO, May 21 P).—Mrs. Cora D. Swihart, 56, and her daughter, Lor- raine, 11.mummm auto- ‘mobile collision. Mrs. B ‘was the wife of J. Lawrence Swihart, music the Evanston Townshi session of the investigation by Seabury | Correction. subcommittee of the Democratic Steer- ing Committee of the Senate which has drafted a bill to cover the relief pro- HUNT 1S STARTED FOR RUM RUNNER IN KIDNAP PROBE (Continued Prom First Page.) York bank. Direct confirmation of the report was lacking. ‘The two-day hun* for the man identi- fied by State police only as “a gangster repcrted in Maryland and thought to be connected with the case,” was given real significance by Arthur Mills, identifica- tion exvert at the Maryland House of At Baltimore Mills refused to identify the fugitive, but said he is a character long identified with the liquor traffic in New Jersey. Two days before the body of the baby was found by chance in the woods 5 miles frcm his parents’ estate, the rum- runner discussed the mystery with Mills. He teld the identification expert the child had been killed by blows on the head and hidden within 5 miles of where the kidnaping occurred. He said, Mills repeated, that three or four persons had been involved in the crime and that he knew some of them. He prefaced these disclosures with a complaint that police activities in the case were hampering his liquor busi- ness. “If somebody doesn't do something about the case soon, I will” Mills quoted the man as saying. “I didn’t pay any attention to it at the time” Mills sald, “but later when 1 read that the body had been found I ccmmunicated my information to Col. Jersey State police. “Two officers came here yesterday to Investigate it."” Identity Is Known. Although the rum-runner's name has not been made public, those hunting him know his identity. Mills said he first became acquainted with him when more than a score of men were arrested at Ocean City, Md., in December, 1929, while attempting to land a cargo of liquor on the beach. The only information eoncerning the rogress of the search came from Col. hwarzkopf in his morning bulletin, which said: “Investigators who are investigating the wheresbouts of the gangster re- ported in Maryland and thought to be connected with the case have been un- able to locate him as yet and are con- tinuing their investigations.” In a later bulletin the chief of the investigation said: 4 Ling is not the name of the man whom Wwe are in connec- tion with the report in Maryland.” How the Oriental's name had been dragged into the hunt for the rum- runner was not urlunedA ‘W. C. Pender, attorney from Curtis’ home town of Norfolk, Va., who had been engaged by relatives and friends of the shipbuilder, went directly to the Lindbergh estate upon his arrival from the South. ‘Then, accompanied by a State troop- er, he went to the county jail in Flem- ington, where his client is being held, in lieu of $10,000 bail, on a charge of obstructing justice and furnishing false information, after confessing the whole story of his “contacts with the kid- alpe ” was a figment of his imagina- lon He spent two hours in the little cell where the shipbuilder has been held since Wednesday. Then he conferred with District Attorney Anthony Hauck. Will Await Relatives. Later it was learned that Attorneys Daniel Vicello and Matthew Alercio, both of Flemington, had been retained in Curtis’ behalf. They sald they would make no effort to bail Curtis out prior to the arrival of friends or rela- tives of the shipbuilder. Dr. John F. Condon, who tossed $50,- 000 of Col. 's nn., he announced tha Pawtuckett, R I, but decline the purpose of the trip. | He returned to his home at 9:30 p.m., the two detectives. He panied by entered the house hurriedly, but about 10 minutes g Normin Schwarzkopf of the New | JAFSIE” LETTERS CALLED GENUINE U. S. Handwriting Experts Compared Missives With Original Ransom Note. BY REX COLLIER. Reports by two Federal experts em handwriting identification—Dr. William Souder of the Bureau of Standards and B. C. Farrar of the Treasury—helped to convince Col. Lindbergh he was deal- ing with the actual kidnapers of his baby through the intermediation of Dr. John' F. Condon, Lindbergh decided to meet the de- mand for $50,000 ransom after the Government authorities on forgery had announced their conviction that the hand responsible for the original ran- both rts agreed that the handwrit- ing in the Jafsie letters and the ransom found on the windowsill was the work of the same person. 3 Made Two Visits. ), Both of the Government officials re- |fused to discuss their findings in the case when questioned yesterday. Mr. Farrar admitted having examined the notes, but Dr. Souder would neither confirm nor deny his participation in | the investigation. attend the Governor's Conference at Trenton during the first week of im= vestigation, and the second jourmey was to the Lindbergh home to examine the letters. . The Treasury expert said he studied the notes not alone to identify the writ- ing, but to learn, if possible, the na- tionality and other characteristics of the auther. He said his report in this connection was confidential and was turned over to Col. Breckinridge, Lind- bergh’s adviser. Paid Own Expenses. ‘The scope of Dr. Souder's analysis of the writing could not be learned. Mr. Parrar said he aeted in an un~ capacity and paid his own ex- fi‘mduunxum-mzmylum services. mfle kdechr‘ea the much publicized 'War 3 to —_— card, purporting be E nd Mr. Farrar both reported that the author of the letters was a man. There have been reports from time to time that the writing was that of a woman, but State police in New Jersey have denied this. Purther proof that the Jafsie letters were written the person who scribs bled the fateful ransom nete was found in the fact that the incoherent corre- spondence bere the mystic symbol interlocking ecircles designated in ransom demand. bol say it differs somewhat from repro- ductions published in the newspaper. The two circles ap) tly were drawn with the aid of sflver half- lars. The circles just overlapped red ink was smeared over the ping pon&x: as though [CONTACT BY MEANS WITH DEAN DENIED Counsel Says He Was in Concord, N. C., at Time of Reported Meeting. | _ An ‘emphatic disclaimer that Gaston | B. Means had any contact with Rev. H. Dobson-Peacock in the Lindbergh case | was issued yesterday afternoon by J. | William Tomlinson, counsel for Means. | _“Means never saw Dobson-Peacock or | Curtis in his life,” Tomlinson asserted. The statement followed a report that Dean Dobson-Peacock, shown a &mm | of Means, had told Federal agents that he resembled one of the two men who he says met him in New York and of- fered to return the baby, While the Norfolk clergyman and his companion, John Hughes Curtis, were en d in the reputed effort to recover the aped child, Dean Dobson-Pea~ cock went East, being away from Nor- folk March 28-29, when the contact is supposed to have been established Accounting for Means’ movements st this time, Tomlinson said: “On_March 27 Means telephoned to New York asking R. M. Easley to come to Washington. (Easley is head of the National Civic Leagye.) Easley arrived | here that night, and with his wife, was {in conference with Means at the Wil- lard Hotel from 9:30 to 11:30 o'clask. “On the 28th they were again gether from 12:30 to 2730 p.m. and night at 11:35 o'clock. Means took a Southern train for COoncord, N. C. where he arrived March 29~ between 9:30 and 9:50 am.” The lawyer, who is conducting Means’ defense against the charge that he ob- tained $104,000 from Mrs. Evalyn Walsh McLean in a reputed plan to get the Lindbergh bsby back, said also that Means had not been in New York in March, April or May. WHO'S WHO In Olympics “(mminflmvfll uulmbu-tthalmoly':.- a comprehensive analysis of teams and contestants ting the