Evening Star Newspaper, December 2, 1932, Page 2

REPEAL DISCUSSION WITHOUT RESULTS House Committee to Continue Unofficial Meeting on Garner Propo_sal. (Continued From First Page.) over whether conventions or State Leg- islatures should be designated to pass on & repeal resolution. It also was di- vided on the wet and dry issue. Indi- cations were, however, that a majority is for some form of repeal. ‘While wet and dry forces squared away for the first big test, a promise of quick action in the Senate on both re- 1 and beer came from Senator Rob- m of Arkansas, the Democratic lead.:, who conferred this week with President-elect Roosevelt at Warm Springs, Ga. ‘With this promise Robinson made the remark that he believed some ques- tion would be raised in the Senate on the Garner proposal because it fails to provide protection to dry States as promised by the Democratic platform. Palmer Backs Submission. Meanwhile, as prohibition organiza- tions sant letters to congressional com- mittees nsking to be heard on repeal and beer measures, A. Mitchell Palm Attorney General under President W son, in a brief to all members adve cated submission of repeal to conven- tions. He said it would insure an early decision and minimize what + may amount to nullification pending final action. “With both parties committed by their platforms, as well as by the dec- larations of their Fsrsesldentul candi- dates to the submission of a repeal amendment in one form or another to conventions in the States” the Palmer brief said, “it is obvious that no mat- ter how the election may have resulted, the submission of an amendment would have necessarily followed. “The enormous majority with which the people elected the Democratic ticket THE EVENING SENATORS TO HEAR COMPLAINTS ON ECONOMY (Continued From First Page.) that has come to the attention of the Budget Bureau as to the operation of the economy law and what should be done for the next fiscal year. Another Session Called. Senator Bingham, Republican, of Connecticut, acting chairman, announced he committee would hoid another executive session this afternoon with Col. Roop, Postmaster General Brown, Contrcller McCarl and Brig. Gen. Frank T. Hines, director of the Vet- erans’ Administration. It was empha- sized that Gen. Hines is being called in only on administrative problems and not to discuss the broad question of veterans’ allowances, which is to be gone into by a separate joint commit- tee of Congress. ‘The most comprehensive set of rec- ommendations were those sent by the Civil Service Commission, covering many phases of the economy law. First, came the commission's plea that the legislative furlough plan be dropped at the end of this fiscal year and that “there should be a return to the deliberately studied pay schedules in the last amendment to the classifi- cation act without the use of automatic furloughs.” This recommendation re- fers to the general 24-day furlough re- quired of all employes receiving more than $1,000 a year, and which is equiv- alent to an 8% per cent pay cut. ‘While recommending abolition of the | general legislative furlough, the com- mission suggested that it might be ad- | visable to retain in permanent law the | principle of the so-called “adminis- trative furlough” authority which was given department heads this year to enable them to stay within reduced ap- propriations without dismissing outright large numbers of employes. Discussing the administrative furlough question, the commission said: “This provision is limited to the fiscal vear 1933. It has undoubtedly de- creased the number of employes drop- ped from the rolls involuntarily, while permitting offices to remain within ap- propriation limits. It may be advisable, depending on appropriations for future years, to include in permanent legisla- tion the principle of administrative furloughing. Particularly will this be true if appropriations are to be dras- must be construed as a mandate from the people to put into effect ‘by appro- priate action’ the principles Whlc'h that party advocated in its platform.” Wet Bloc Meeting Called. Shortly afterward, however, Senator Robinson, Republican, of Indiana, took. an unaltered stand t changing the Federal liquor laws, but predicted that beer would be legalized at the short sesion. He said he was anxious to delay action on repeal and beer legis- lation until the Democrats come into ecntrol of Congress. A call to the House Republican wet bloc to meet Monday morning to con- sider the Garner resolution was issued by its chairman, Representative Beck, Republican, of Pennsylvania, who sald he was “confident” the group will sup- port it “unless some better resolution e said, however, the Garner reso- lution “will make the process of ratifi- cation. more difficult and hazardous” through a _“further reservation in Con- gress or the power to protect the dry “While I am prepared to vote for the Garner resolution,” Beck said, “I be- lieve it may prove to have been a mis- take to the dry sentiment of the country with a naked repeal amend- ment.” The “great objective” of the tically reduced in any one year for any one office. Protection Threatened. “There is one point which has not been given public attention in connec- tion with section 216. (the administra- tion furlough), which should be given careful study if this type of legislation is to be made permanent policy. It will be noticed that in the language of sec- tion 216 the heads of the various estab- lishments are given absolute discretion to decide which employes shall be fur- loughed and what amount of time each tions thrown around employes in the matter of abuses of discretion by ad- ministrative officers. An employe whose record is good and whose efficiency rat- ing is good may not be dropped under present provisions of law if other less efficient employes are retained. An em- ploye mn{{l not be dropped because of alleged efficlency or under other charges without compliance with certain procedure which tends to prevent hasty and biased action. Under the present ianguage of section 216, however, the same employe may be furloughed for any period, no matter how long, with- out any opportunity to know what is the matter or in what respects he is alleged to be deficient. wets should be to secure ratification, he he favored - said, adding that tion by conventions. GRAPE MEN COMING HERE. FRANCISCO, December 2 (). — tives SAN ‘Three urge | prejudice in the minds tatives are E. M. Shee- fornia Grape Growers' Exchange; und A. Rossl, vice president of the league, and W. L. St. Amant, vice president and eral manager of the Beauller Vine; Co. of Napa County. e BREWERS PRONOUNCE SITUATION “G00D” Beer Industry Could Be Thrown Into High Gear in Few Months. By the Associated Press. Trustees of the United States Brewers' Association have looked over “the situa- tion of the industry” and pronounced 1t good. In session here to prepare a report at the request of the House Ways and Means Committee, trustees will make a recommendation on alcoholic contents of beer if it should be legalized and indications are they will suggest & beverage containing 3.2 per cent. A general survey convinced the ‘brewers they could throw their industry into high gear production in a matter of months. So many details were found necessary in considering the status of the trade that it was decided to confine the forth- coming report mainly to beer, and omit such studies as coal consumption, power demands, freight haulage and others. DENIES RETIREMENT LAW SAVES MONEY Statistician for U. S. Employes Sees $75,000,000 Boost in An- nuity Cost in 10 Years. ‘The compulsory retirement feature of the economy law will boost the cost of annuities between $75,000,000 and $90.- 000,000 in the next 10 years and result in a loss of approximately $7,000,000 in employes’ contributions in the same period, Ulrey J. Biller, retirement. sta- tistician for the National Federation of Federal Employes, last night told the Veterans' Administration Branch of Local No. 2. He said compulsory retirement is in- defensible as a savings measure. Robert E. Lowe, president of the branch, urged increased efforts to build up the membership, in view of the fight on the economy law. The Execu- tive Council was authorized to increase the size of the Membership Commit- tee. which is working under Miss Ma- tilda Redeker, chairman, and Harry Taylor, vice chairman. John D. Cloud, national organizer, and Henry G. Nolda, secretary treasur- er, of Local No. 2, spoke. MECHANISM OF REPEAL SUBJECT AT LAW SCHOOL Judge Finis J. Garrett of the United States Court of Patent and Customs Apeals will lecture at the Catholic versity Law School tomorrow morn- ing on the mechanism of repeal of & “The present laws with respect to re- movals and reductions of force do not at all prevent the removal or dropping of ineffieient or unwol employes, They do prevent hasty, ill-considered actions, particularly if such actions are based on political or religious prejudice, One of the most necessary elements of the merit system is the protection of es against political or religious of superiors. Section 216 carries the seed of the de= struction of all of this needed protec- tion. an indefinite or lengthy furlough is tantamout to removal, it is recommended that if the theory of sec- tion 216 is to be perpetuated in the law, it be provided that a furlough in excess of a limited time, say 90 days, may not be imposed on an employe without com- pliance with those provisions of the law governing the reduction of force.” Having recommended a return te classification act salaries without com- pulsory furloughs, the commission also suggested elimination of the section of the economy law requiring the im- pol in the Treasury of the funds elavzd [3 h the general furlough plan, In recommending repeal of the ban on promotions, the _col on reported that a majority of its members feel this feature should be discontinued at the end of this fiscal year “in order to re~ turn to a standard and equitable per- sonxnel policy with respect to compen= sation.” The commission told the committee the section requiring presidential ap- proval for the filling of vacancies “is regarded as being very onerous and as having resulted in questionable saving. It has been necessary to set up & new activity for the purpose of passing on the necessity of filling vacancies. It is recommended that the President be re- lieved of personnel responsibility in this matter, and that if it is deemed advis- able to continue the checking of the necessity of filling vacancies a majority of the commission believes that this function should be imposed on the Civil Service Commission, which is currently informed concerning the functions and duties of the various positions in the Federal service.” Retirement Section. Regarding the compulsory retirement- for-age section of the law, the commis- sion _reported: “The majority of the commission recommends with respect to retirement the adoption of the following policies: “1. Optional retirement after 30 years’ service. “2. Mandatory retirement without ex- ception for those employes, the filling of whose positions does not require Senate confirmation, on reaching the retire- ment age prescribed for automatic sepa- ration from the service. “In effect these recommendations will retain the compulsory retirement for age for all employes not subject to Sen- ate confirmation, for whom there would be no compuisory retirement, and will permit voluntary retirement after 30 years' service, These recommendataions do not provide for any exceptions to the compulrory retirement by act of the President or the commission or by any other agency. " “The majority of the commission recommends that no person receiving retired pay because of service, either in the military establishments or in the civil establishments, be eligible to appointment in the civil establishment while recelving such retired pay. The majority of the commission believes that no person should receive retirement from one position and be actively em- ployed by the Government in another.” Regarding the much discussed mar- ried persons clause in the existing law, the commission had this to say: “The commission is unalterably op- posed to the theory that marital status should be a factor in Federal employ- ment. There are cases which have arisen in which it has become ap- ent that the marital union has been roken in order for the marital partners to remain in the pull)'licl :'e::xce. The provision placing mar! us as one of the qualifications for public service is regarded as being bad public policy.” Sick Leave Recommendation. Section 215 of the economy law made a permanent reduction in annual leave f th wp\i‘l:' interest in Because of e r the subject, Dean John McDill Fox of Gazrett formerly was a Rep- from Tennessee and was leader of the House for 3 from 30 to 15 days, but another sec- tion of the act suspended all leave with y for the current fiscal year. The E' made no change in sick leave, ex- in section 215 directing administered under BILL TOMORROW ice. The Civil Service Commission does not discuss the annual leave question, but made the following recommendation regarding sick leave: “The com! lon recommends that the last proviso of section 215 with Tespect to so-called sick leave of absence be changed as follows: “That seven days of sick leave of absence be permitted per annum in lieu of the present 30-day provision but that sick leave of absence not taken be permitted to accumulate for use in connection with serious and extended illnesses. “The present 30-day sick leave pro- vision results in abuses by a small per- centage of the Federal rsonnel, it being impracticable to make investiga- tions of alleged sicknesses, while at the same time it does not afford a proper protection to employes who throughout the years take no sick leave of absence and are suddenly confronted with an extensive necessary period of absence due to severe illness. “Statistics have been compiled which show that the average sick leave is approximately six days a year per em- ploye. This sick leave is taken, how- ever, by approximately 25 per cent of the personnel so that a small propor- tion of the personnel take almost the entire permitted sick leave whereas many employes take none, and in a period of severs illness they are handi- capped. It is believed that the recom- mended change will result in a very appreciable reduction of the average | sick leave taken, since all employes will be conservative in the matter of ab- sence due to slight illness in order to conserve leave {o provide for future serious illnesses, “The commission is of the opinion that this charge will adversely affect only those who abuse the present pro- vision: will be helpful to those who do not indulge in such abuses; and will result in an average of three or pos- sibly four additional days' service for all Federal civil servants. This last will result in an appreciable saving.” Elastic Policy Urged. The commission also recommended that the President be given authority to make interdepartmental as well as interappropriation transfer of funds in order to permit elasticity in the assign- ment of personnel. Under such author- ity overworked bureaus could be relieved without additional expenditure, by the use of employes from other offices where work is slack. If Congress is unwilling to go this far, the commission suggests continuation of the clause in the econo- my law allowing the transfer of 12 gel‘ cent of any appropriation to other activities in the same department. The report pointed out that the econ- omy act resulted in the merging of the Personnel Cldssification Board with the Civil Service Commission on October 1, but that there remain other agencies dealing with matters which should be brought together, namely: The Civil Service Commission, the retirement sub- division of the Veterans Administration, the United States Employes' Compen- sation Commission, and the personnel functions of the Bureau of Efficiency. The commission urged that all person- nel activities be brought together as early as possible. Duplications Taken Up. ‘The commission also urged the elimi- nation of cuplication in keeping per- sonnel records in the departmental service, pointing out that the personnel administration in the departmental service costs approximately $1,500.000 a year. In this connection, it said: “The large forces engaged on per- sonnel work are needed chiefly because each department and _establishment maintains complete service records of its employes. These records are dupli- cated in the office of the United States Civil Service Commission. The elimina- tion of duplications in personnel rec- ords would make for a substantial sav- ing in personnel administration.” Lieut. Col. U. 8. Grant, 3rd, in re- porting for the Office of Public Build- ings and Public Parks, concurred, in a general way, in the recommendations of the Civil Service Commission far doing away with the legislative fur- lough, retention of the administrative furlough to cope with reduced appro- priations, removal of the ban on pro- motions and filling of vacancies, and Tepeal of the married persons clause. Chairman Winslow of the United States Board of Mediation told the committee the whole subject of fur~ loughs and impounding should be clari- fied and made definite. ‘The United States Board of Tax Ap- peals pointed out that nearly double the number of cases ordinarly set for hearing are being placed on the trial calendar this year and that notwith- standing necessity for disposing of cases, the board has been compelled to increase the legislative furlough of its employes from two and one-half to five days per month in order to stay within its appropriation. Regarding further economies the board reported that the estimates submitted for the next fiscal year are $25,000 less than was requested for the current year. With the present volume of work, any substantial’ reduc- tion in personel would be unwise, the board says. Numerous Decisions Cited. The Bureau of Efficlency in urging that changes in the economy law be not made except to correct great hardships, argued: “It has been necessary for the Con- troller General to render several hun- | dred decisions interpreting the act as it applied to these problems. These de- cisions have given the various ad- ministrative icers an understanding of how the law shall be applied. I be- lieve that Congress should follow a very definite Eoucy that no amendment to the act shall be made unless it is neces- sary to remove a very great hardship or to correct a substantial discrimina- tion. I submit this suggestion in the aclief that if numerous amendments are made, uncertainty as to the meaning and application of the law as amended will exist until decisions can be ren- dered by the Controller General. Such general uncertainty is a decided hard- ship to the efficient discharge of the administrative work of the Govern- ment, and should be avoided as far as possible.” The bureau chief suggested one amendment to correct an inequality in the retirement allowances of a group of 2,000 postal employes. This group was deprived of retirement pay for approxi- mately three weeks in July. One definite new economy Trecom- mended is the discontinuance for one year of Summer training camps for the National Guard and Reserve Corps, which would save $18,000,000. The United States Employes’ Com- pensation Commission, handling _the welfare of injured empioyes, and which is one of the personnel agencies the Civil Service Commission said should be consolidated, had this comment to make on the proposal: “In view of the suggestions which, according to the public press, will emanate from another source for the reorganization of the work of this com- mission and its merger with the func- tions of another governmental body, the commission feels that it should state that in its opinion any_ reorganization of its work which would increase its efficiency will necessarily increase its cost, while any reorganization for the purpose of further reduction of cost would inevitably impair its efficiency. The proposed consolidation (notwith- standing any claim of a temporary re- duction of cost) would necessarily tend to destroy morale and would inevitably increase the cost to the Government, while at the same time impairing the efficiency of the work.” ‘The Federal Farm Board, throughacting Chairman C. B. Denman, said the board does not feel that any further economy can be wisely effected in administrative expenses, but, on the contrary, the best interest of agriculture would be served if the board is given funds to recall about one-third of the 146 employes either indefinitely furloughed or dropped from the rolls last July, and to devote more men and time to fleld service km:m%evelopment of co-operative mar- e 3 Other letters were recelved by the l., STAR, WASHINGTO GREEN REELEETED L F.L PRESDEN Cheered in Answering Criti- cism of Threat to Use Economic Force. Washington has been seclected as the site of the 1933 convention of the American Federation of ILabor, the Greater National Capital Com- mittee was advised today in a tele- gram from Cincinnati. Clyde M. Mills, president of ‘the Washington local of the International Typo- graphical Union, presented the Cap- ital's invitation. The convention decision was influenced by plans to dedicate a memorial to Samuel Gompers here. By the Associated Press. CINCINNATI, Ohio, December 2.— William Green today unanimously was chosen president of the American Fed- eration cf Labor for the ninth consecu- tive year. Mr. Green in his acknowledging speech again reiterated his intention to use vigorous methods to gain accept- ance of the federation’s program of unemployment insurance and the 30- hour week. “We must translate the militant spirit of this convention into action,” he said. “We will plead for co-operation, but where we cannot get it we will use every legitimate power at our command.” Green took office in 1924 after the death of Samuel Gompers. Other officers re-elected were: Frank Morrison, Washington, secre- tary; Martin F. Rryan, Kansas City, treasurer; Frank Duffy, Indianapolis, first vice president; T. A. Rickert, Chi- cago, second vice president; Matthew ‘Woll, Washington, third vice president; James Wilson, Cincinnati, fourth vice president; John Corfield, Washington, fifth vice president; Arthur O. Whar- ton, Washington, sixth vice president; Joseph N. Weber, New York, seventh vice president; G. M. Bugniazet, Wash- ington, eighth vice president. “We will draw up the line of battle and carry the struggle to the doors of industry until the jobless are given jobs,” Green shouted yesterday, and the delegates burst into a wild demonstra- tion of assent. Green wes answering what he termed criticism (in the New York Times) of his threatened use of economic force— strikes and boycotts—should other methods fail to establish unemploy- ment insurance and the 30-hour week. Labor, Green declared, has pleaded to no avail with industry and Gov'- ernment for aid to the jobless. “Now,” he demanded, “what do they us to do. Sit still?” The convention defeated a proposal to enlarge the Federation’s Executive Council by increasing the vice presi- dents from 8 to 25. The suggestion jwas made by John L. Lewis, president of the United Mine Workers. 7,000 DELEGATES EXPECTED. Labor Leaders From Every State to Attend A. F. L. Scssion. The decision of the American Fed- eration of Labor today to hold its next convention in this city will bring to the Capital approximately 7,000 delegates from every State in the Union for a fortnight's sojourn, said Curtis Hodges, director of the Greater National Capital Committee of the Washington Board of Trade, which organization was re- sponsible for labor’s decision. A. Gumpert of the convention staff of the local organization was in Cin- cinnati during the present convention and aided in extending the invitation for the 1933 conclave to meet here. Mr. Hodges sald a feature cf next October’s session would be the unveil- ing of the monument of Samuel Gom- pers. Robert Aitken, New York sculptor, is now at work on the monument. It will be unveiled by federation officials on the Eleventh street side of the tri- angle on Massachusetts avenue. WAY PAVED TO CUT PAY IN NEW YORK IN ALBANY PARLEY (Continued From First Page.) McKee, who has been urging the neces- sity of pay cuts for some time, was told yesterday by the emergency work relief and administration that unless funds are made available at once all city re- llef work in New York City must halt in 10 days. MUST BORROW $144,600,000. City May Be Unable to Meet December Obligations, Berry Says. NEW YORK, December 2 (#).—Con- troller Charles W. Berry today issued a statement in which he said that his figures show that unless $151,000,000 in revenue bills due between December 5 and December 13 can be renewed or extended the city cannot meet all its obligations. His statement listed the present cash belance of the city as $100,500,000 and estimated receipts for December as $25,500,000, & total of $126,000,000. The city must pay in December, he said, $270,600,000, including salaries, making the amount needed by borrowing to meet December payments $144,600,000. Berry said that of the cash on hand, $52,000,000 lies in the sinking fund for redemption of four-year subway bonds, which mature December 15. The re- mainder, he said, plus cash receivable in the next 10 days, less estimated ex- penditures to December 10 on con- tracts, weekly pay rolls, unemployment relief ‘and interest falling due, will be $50,000,000. “If the $50,000,000 be applied to pay- ment of the maturing revenue bills,” Berry said, “no money will be in hand for ‘the pay rolls of December 15. Moreover, past due revenue bills will represent a temporary debt aggregating $101,000,000.” FARLEY TO BE HONORED MONTGOMERY, Ala., December 2 (#)—Alabama Democracy will gather at the banquet board here tonight to honor James A. Farley, chairman of the Democratic National Committee. Mr. Farley was to motor here during the day from Warm Springs, Ga., where he has been visiting President-elect Roosevelt, and will be the guest of Judge Leon McCord, Democratic national committeeman for Alabama. Trotsky Starts Back:Home. COPENHAGEN, December 2 (P).— Leon Trotsky, the exiled Russlan Bol- shevik who came here to lecture on the Russian revolution, left today on the way back to his exile home on the Island of Prinkipo in Turkey. Economy Committee from the Federal Power Commission, Tariff Commission, Shippin, , Smithsonian Institu- tion and the State Department Division of Foreign Service Administration. These agencles told the committee of the steps they have taken to stay within appropriations and to comply with the provisions of the economy law. They also outlined, in most cases, how par- ticular ‘ghua of the economy huval ected their respective of worl D. C, PAYNE DEFENDS “BUSINESS” INU.3. Certain War Department tivities Necessary, Says Assistant Secretary. A protest against the movement which resulted last Spring in a con- gressional inquiry into Government competition with private business is contained in the annual report of Col. Frederick H. Payne, Assistant Secre- tary of War, which was released today. “With a sense of values warped by disheartening financial conditions,” he said, “this group has launched an un- discriminating attack upon all Gov- ernment activities of a business nature, including certain War Department ac- tivities essential to national defense, in the hope that some alleviation of the prlevnlung economic distress might re- sult.” Certain Requirements. Col. Payne said he gave his “whole- hearted support” to the doctrine that i the Federal Government should never encroach upon those fields of business which can be capably cared for by pri- vate enterprise. In conducting the ‘War Department policy with respect to the production of supplies or equiment at Government arsenals and factories, he said he had never interpreted the authority as a warrant to expand ex< isting Government facilities in order to manufacture articles of commercial de- sign. “But there are certain War De- partment requirements that cannot be filled from commercial sources,” he added. “To meet needs of this char- acter it is essential that existing Gov- ernment arsenals and Government- owned factories with their specialized equipment and labor be held intact.” Realty Sales Decline. Due to the depression, there has been a sharp decline in the sale of surplus real estate held by the War Department during the past year. Extremely low appralsals, also, contributed to the loss in revenues. At the same time, reve- nues from properties held under lease by private interests approached only $432,000 for the year, or a decline from last year of 34 per cent. Due to the transition through which railroad systems are now passing, Col. Payne declared it would be “extremely unwise” at this time to promulgate any definite plan for utilization of trans- portation in time of war. Plans in- volving industrial mobilization must be fitted to meet conditions obtaining at the outbreak of war, Col. Payne said in directing attention to the fact that the great transportation systems of the country are now undergoing major changes in organization and operation. Rather than draw up a definite scheme for their use in connection with the plans of the War Policies Commission, the Assistant Secretary said he had di- rected that a tentative plan be drawn up and subjected to constant scrutiny with a view to bringing it into harmony with conditions in the field of trans- portation. MRS. NORTON URGES THREE-CENT FARE Praises Bride, Patrick and Keech for Efforts in Behalf of Students. (Prom the 5:30 Edition of Yesterday's . Chairman Norton of the House Dis- trict Committee today sent a letter to Corporation Counsel Bride, Gen. Mason M. Patrick, chairman of the Public Utilities Commission, and Richmond B. Keech, people’s counsel, expressing her continued and active interest in thé 3- cent fare for District school children. |in Wi Mrs. Norton has not yet returned to the Capital, but dictated the letter over long-distance telephone to her secre- =% deire to fuia- “I desire express my congra tions on the vigorous fight both and your assistants have been to sustain the will of Congress in connec- tion with the 3-cent fare rate for schoo! children of the District of Columbia. “At the time this law was enaéted, I believe I can safely state, there was not a member of Congress who was not im- presszd by the sad plight of many poor childre in the District who lived at great distances from their respective schools. I wish you to know that this is a matter in which I take a most vital interest and I shall continue to be in- terested in the future of this legisla- tion.” SCHLEICHER NAMED REICH CHANCELLOR BY VON HINDENBURG (Continued From First Page.) Papen, who reported to the President this morning on his soundings of the political situation during the last few weeks, ‘The Junker leader told the President he believed if his own person as chan- cellor were eliminat the expected conflict with the Reichstag, assembling December 6, could be avoided. To that end he suggested the defense minister. All the political groups of the Reich, whether favoring or opposing_ Von Schleicher, agree he is a man of un- usual ability and political suppleness. According to business leaders, he won the race over Von Papen because the German industrialists through Dr. Gus- tav Krupp von Bohlen und Halbach, head of the Krupp works, announced their preference to the President. As Dr. Krupp is also an intimate friend of the former Kaiser, it was inti- mated Nationalist politicians, as well as monarchist circles, were satisfied with Von Schleicher, who is himself a per- sonal friend of the former crown prince. ‘There were also intimations that Von Schleicher would not oppose the res- toration of the throne to the former crown prince if popular sentiment should approve such a move. Defense Ministry Problem. Gen. von Schleicher is expected to present a list of cabinet members to the President soon because the business world has been demanding the earliest possible end to the present uncertainty, especially in view the coming Winter. It is taken for granted that Baron Konstantin von Neurath and Count Lutz Schwerin von Kfosigk would con- tinue as foreign and finance ministers, respectively. The hardest nut defense ministry. connection it was recalled Von Schleicher and other high army men complained that a former defense minister had dragged the army into politics by functioning also as the minister of interior. As chancellor, the general would be even more politically exposed than was the man of whom he complained. Nevertheless, . von Schleicher, according to a semi-official commu- nique, is determined to remain as de- ;T’u minister while serving as chan- lor. Exchange Club to Banquet. COLLEGE PARK, Md., December 2 (Special) —The Exchange Club of Prince Gevm:l Co\mty!ol'u}vhlch B. W. Anspon president hold a banquet and entertainment at the Lord Calvert Inn, here next Tuesday even- In‘,e::r members and their friends. Rol W. McCullough heads the com- mittee on arrangements. 1!: crack will be the | tended DECEMBER 2, 1932 CHARGES OF RENT "BLACKLIST" DENIED BY REAL ESTATE MEN Senate Committee C hairman Capper De- clares, However, There Appears to Be an “Agreement.“ Charges that tenants who break leases here are “blacklisted” by mem- bers of the Washington Real Estate Board were both made and denied by witnesses appearing before the special Rent Investigating Committee of the Senate when it resumed hearings today. Reviewing briefly testimony given by several apartment tenants, and refer- ring to a letter written by an employe of the B. F. Saul Co., placed in evi- dence yesterday, Senator Capper of Kansas, chairman of the Investigating Committee, declared it appeared therc Wwas an agreement among realtors not to rent to tenants who broke former leases unless they obtained a release from them. Charles J. Rush, executive secretary of the realty board, when called to the stand this morning, made vigorous de- nial that there was any attempt made to “blacklist,” but said that as a mat- ter of business practice members of the board ascertained the standing of prospective tenants as to former leases. Denied by Board. ‘The realty board, in a prepared state- ment filed with the Senate Committee, also denied charges that exorbitant rents, based on inflated values, had been maintained by the reaity firms. ‘The formal answer of the board companied the results of a survey made for the realtors by Rufus 8. Lusk, which was compiled independently of the data gathered by the Senate subcommittee. vigorous demand for reduction of taxation was contained in the realtors’ statement, which contended that “taxes are destroying Emperty values and breaking the back of the rent payer.” Findings Summarized. Outstanding findings of the Real Estate Board survey, on data gathered from 41 firms here en in rental management, included the following points: ‘That apartment rents were reduced 45 per cent in the past four years ending with last January; that there has been a 5.6 per cent further reduc- tion since January 1 of this year, mak- ing a total reduction of 10.1 per cent in the past five years; that the present abnormal per cent of vacancies in Washington apartments is caused by the “doubling up” of families rather than “exorbitant” rentals; that owners of apartment houses are receiving a low rate of return on their investment, 8s_figured on the basis of assessed values; and that this year 18.9 per cent of the maintenance cost of apartment houses is going for taxes. 272 Buildings Studied. ‘The findings of the Real Estate Board were based on an analysis of data on 272 buil containing 10,- 008 residential . In addition, other data on 180 buildings containt 4,336 units now are being prepared an will be submitted later. ‘The data already submitted, the com- mittee was told, cover about 25 per cent of all apartment units in the city and, in the opinion of the realty board, are ‘sufficient to present “an accurate picture.” The buildings were chosen at random and “there been no at- tempt to pick the buildings about which we wanted information,” the report de- clared. “Rents are not exorbitant,” the real- tors asserted, “unless it be contended that a landlord who receives enough | rent from h&a&l}:flmx ul?fl ne: gum. :‘;r: , only 4.5 per Zom g Bersly, ol S B orbitant rates.” “Best Authority” Cited. In computing the rate of return re- ceived on the average by the owners of | W: " assessed apartment houses, the valua- tions, rather than the actual capital in- vestment, was Used, the committee was infc . This was done because the District assessor is the “best authority” the report declared. Had the actual capitalization of mortgaged p! les been employed, the profit of e apartment owners would have beefi found to be much less than the average of 4.5 per cent, it was e was informed that of the buildings ipcluded in the survey there were 219, contain! 8,213 units, having a total assessed Value of $38,- 153,000 on which it was possible to ob- tain comparative data for 1931 and 1932 as to maintenance costs, together with actual rent collections. “These buildings at the end of 1931,” the report stated, “had a gross rental schedule of $6,247,000, but the actual collections during that year were $5,- 471,000. The operating cost of these buildings during 1931 was $3,638,000. That leaves a net return of $1,832,000, which is 4.8 per cent on the assessed valuation. Net Return of 4.5 Per Cent. “These same buildings, if we figure the first eight months' return on a yearly basis, will have during 1932 a gross income of $5,208,000. The ex- nses of operating these buildings dur- this year will be $3,477,000. That | fi‘fis a net return of 4.5 per cent for| “The meager net income of 4.5 per cent made by apartments during the first eight months of 1932 is based upon the ideal situation—which, incidentally, seldom exists—of an apartment that has no_mortgage.” The statement then presented a computation to show that a building assessed at $100,000 and earning the average of 4.5 per cent return on that basis, would give the owner an actual return of only 2.7 per cent, if it had a mortgage of $55,000 at 6 per cent interest. ‘This return of 2.7 per cent, the state- ment pointed out, would be less than savings bank interest which the apart- ment owner could receive for his investment. “The detailed earnings for 229 build- ings, for which we have maintenance figures for, 1932, show that 18 buildings operated at a loss,” the sfatement added. “Eleven earned less than 1 per cent, 17 between 1 and 2 per cent, 25 between 2 and 3 per cent, 34 be- tween 3 and 4 per cent, 43 between 4 and 5 per cent, 39 between 5 and 6 per cent, 22 between 6 and 7 per cent, 19 between 7 and 8 per cent and 19 more than 8 per cent. Bulk Earn Low Interest. “More than 64 per cent of the build- ings earned less than 5 per cent in- terest on the assessed value; more than 32 per cent earned less than 3 cent. peélxty-slx and five-tenths per cent of the total rents collected in 1931 went for operating cost, the Senators were told. Though operating costs were re- duced in 1932, rents were cut 50 much the operating cost was 66.7 per cent of the total collections, the board con- nded. Another section of the realtor survey stated: “Between January 1 and October 1 (this year) rent. schedules have been reduced 5.6 per cent. It is true this is less than the Government pay cut of 8.3 per cent, but rents were reduced at least 4.5 per cent prior to the Govern- ment pay cut. Indeed, rents were de- clining a long time before tlnher Rc;;; moditles began to fall in price. started to in Washington rents here are tion its above the 1914 level as other items and | personal than in 1914, the item of rent was only 27.1 per cent higher than in 1914, The most that rents here ever rose above the pre-war level of 1914, the committee was told, was 32.7 per cent, whereas clothing increased 84 per cent, food 108 per cent and house furnish- ings 100 per cent. “At the present time rents are lower, in comparison with 1914 costs, than clothing, house ngs and all miscellaneous items,” the statement ey th ckling the matter from another angle. the board declared that, while the salaries of Government employes was not cut until five months ago, they have enjoyed the benefit of de- creased commodity prices, including rents, which began to go down four years ago.” Figures presented by the realtors show that, as of October 1 last, apart- ment vacancies here amounted to 17.4 per cent, whedeas in November, 1929, the vacancy was computed to be 9.9 per cent; in 1930, 7.1 per cent; and in 1931, 7.8 per cent. “The scale of rents is not the cause of the present large vacancy,” the re- port declares. “In hard times families always double up. That is what is happening today. Children are going home to live with their parents; par- ents are living with their children. Single persons who formerly had in- dividual apartments now have dou- bled up.” The contention was made also that even heavy reductions in apartment rents would not help the unemployed, who “can pay no rent at all.” Tax Burden Stressed. Particular stress was placed by the realtors on the size of the tax burden on Washington property holders. They found that last year 11.9 per cent of all apartment rents collected went for taxes. This year 125 per cent of total rents collected is going for the same purpose. Describing the tax burden another way, the realtors declared: “In 1931 the taxes equaled 35.7 per cent of the net income (of apartment properties) and in 1932 they rose to 37.8 per cent. As the income from apartment build- ings has gone down, and the tax rate and assessment remained the same, the taxes have gone up. “Property owners, particularly apart- ment owners, have to give up an un- fair proportion of their income in taxes. ver $1 of every $4 that an owner now makes on his property must be shared with the District Govern- ment. There are buildings cited in this report, even those that have net incomes, that are paying 50, 60 and even more than 100 per cent of the amount of net income in taxes. “High taxes are caused by out- rageous and unnecessary Government expenses. The expenses of the District Government must be cut drastically. Now is the time to start. This commit- tee wili do well to address itself to this pressing problem, for taxes are destroy- ing property values and breakin, back of the rentpayer.” te Alley Dwellings Hit. Employment of public funds in the rebuilding of alley dwellings and other “blighted” areas of Washington was urged by John Ihlder, housing consult- ant of the National Capital Park and Planning Commission, during the afternoon session yesterday of the Sen- ate committee investigating rental con- s uj ustement, representing the ‘ashington Chapter of the American e A e of org: tion for rebuilding of older sections of the city by limited dividend corporations, with funds from the Reconstruction Pinance Corporation. - In favoring employment of a portion of relief funds for construction of new housing for the poorest classes here to replace outworn dwellings, Mr. Ihlder quoted ",?"m that the District of Columbia now is spending about $3,000,- 000 & year for relief of the needy families. Beyond the temporary care of the destitute families there is nothing to show for the expenditure of this money, Mr. Thider said, urging that a portion of relief funds be used for construction of sanitary housing, whjch would bring & more permanent return and a more permanent improvement of conditions of the classes. Capper Is Sympathetic, Senator Capper, while expressing sympathy for proposals for the elimin: tion of the alley dwellings of Washing- ton, raised the question of the advis- abillty of postponing plans for rebuild- ing of blighted areas until the needs of present relief had been met. Mr. Justement described briefly the plan proposed by the Washington Chap- ter of the American Institute of Archi- tects for legislation for use of Recon- struction PFinance Corporation funds for the rebuilding of the blighted areas of Washington. It would be impossible for such sec- tions of Washington to be rebuilt by private initiative, he declared. John Nolan, jr., city planner of the Natlonal Capital ' Park and Planning Commission, presented maps showing that the population of the more central portions of the District had been de- creasing, while the more suburban sec- tions were being developed. Leroy Halbert, director of emergency relief work for the District government, told the committee conditions here would be much worse but for aid given by the Washington Community Chest. He sald, however, that conditions were becoming worse as the depression con- tinued, and that he viewed the coming Winter months with apprehension. He submitted statements regarding _the families which have been evicted from their housing for non-payment of rent. Reduction Facts Desired. Senators Copeland and Capper an- nounced at the hearing this afternoon that they want to get as much infor- mation as possible on the question of Whether rent reductions that have been made in_apartment houses this year are benefitting all of the occupants of the bulldings that have been reduced or whether the reduc o= whether i ons apply only Senator Copeland said he wanted to find out how many cases there are where reductions have been made in | apartment rentals which were not ap- | plied to tenants under lease. He sald Congress has forced a pay reduction on | Government employes, “and if a lot of | Senators and Representatives have their | way there will be further reductions.” | For that reason, he said, the commit- | tee is anxious to afford relief through | lower rentals to Government employes | and other wage earners. Senator Cap- per said he concurred in these views. ESTATE WORTH $488,497 Executors Place Value on Property of Mrs. Martina Carr. Mrs. Martina Carr, who died No- vember 2, left an estate valued at , Dr. W. L. Robins and the National Metropolitan Bank, for the probate of her will. She owned real estate assessed at $302,397 and had valued at $186,100. that rents tent that pre-war days. The realters quoted the June, 1932, Government figures to show that, while the a cost of all items of living In the .5 per cent greater did not increase to the ex- other commodities did since ficlaries are her . Mrs. Lambert White and Mrs. Mildred Lam- bert Gannon, and a nephew, Wilton J. Lambert. - Attorney R. P. Hollings- worth appears for the executors. [N WATERWAY URGED BY CHRISTIANSON Minnesotan Tells Senators Economic Benefit in Ratifying Treaty. By the Assoclated Press. Former Gov. Christianson of Minne- sota, told a Senate Foreign Relations Subcommittee today that lower trans- portation costs resulting from a St. Lawrence waterway would “help restore the economic balance within the United States.” Chrigtianson, Representative-elect at large from Minnesota, appeared before the committee to urge ratification of the treaty with Canada for consumma- tion of the St. Lawrence project for & deep waterway from the lakes to the sea. Asserting that he did not want to base his petition for the development on sectional grr;m, Christianson tes- tified that incry purchasing power for the West through réduced trans- portation costs would help to restore the Nation's economic balance. Handicap in Marketing. “I believe that among the handfcaps under which the Midwestern farmer labors ome of the most serious is that of remoteness from markets. “The cold fact that stares us in the face is that as certain conditions caused settlement of the Middle West, so a re- versal of those conditions must by in- exorable economic law force its gradual but _certain depopulation.” Christianson referred to increased freight rates, saying some railroads now opposing the treaty are seeking an in- crease in grain rates, although it already costs 25 cents to get a bushel of Mon- tana's wheat to Duluth, where it brings 35 sl;e_ms. n " vings the cost of transporting grain were estimated by Christianson at $6,000,0000 a year and from shipments of dairy products at almost half & million. Shortly before testimony that the waterway project is “thoroughly feasi- ble” was presented by James E. David- son, Bay -City, Mich.,, shipbuilder and transportation expert. Urged by Ship Official. Davidson, a director in 10 steamship companies which are members of the Lake Carriers Association, urged ratifi- cation of The St. Lawrence treaty with Canada, which was opposed by that org;r‘;‘lzaggm “The benefit of cheaper transporta- tion,” he said, “will greatly aid the Great Lakes section of the Midwest Which consists of approximately 50,000,~ 000 people.” CULBERTSON SPONSORS NEW BID TO GAIN GRAND SLAM’S HIGH SCORES (Continued From Pirst Page.) All the aces can be accounted f their absence deduced by x:el’lt.lv‘:t l.l:laE ’"xggcet;t if atter a f T instance, if after a four no bid partner should bid five or :m‘m‘ the inference would be that he lacked M doaventions are primadly dor convent are deals, in which great strength is divided between partners. Here is a hand fn which Culbertson and Oswald Jacoby bid a successful little slam in the cur- rent tourney of the American Bridge League by means of the new eonven- " JACOBY, Dealr. S AK9754 083 D—4 2 C—AS CULBERTSON. 5-Q62 H—A D-AK107583 c—Q 10 4 The bidding—Jacoby, 1 s ; Cul- bertson, 3 diamonds; leby?.sd‘ln-du; Culbertson, 4 spades; Jacoby, 4 .no flg:-pu; Culbertson, 5 no trump; Jacoby, les. Here was a successful grand slam in & recent Bermuda tournament: LOUIS WATSON, Dealer. 8—5 H-AKQJ942 D83 C—AJ3 JACOBY. S-AK3 H—6 D-AKT754 C-K642 Watson, one heart; Jacoby, three dia- monds; Watson, three hearts: Jacoby, four diamonds; Watson, four no trump; Ja.cggly, five no trump; Watson, seven hearts. [ I T BUILDING TRADES OPPOSE NEW SCHOOL CONTRACT The Building Trades Employers’ Asso- ciation has protested the award of the contract for construction of an eight- room addition to the Bancroft School on the ground that the bid for the work exceeded by several thousand dollars the sum appropriated for erection of the building. The District Commissioners awarded the contract to the Maas Construction Co. of Baltimore on Wednesday, who agreed to construct the building, at Eighteenth and Euclid streets, for $93,000. In making the award it was neces- sary to ellot $6,000 of the unobligated balance of an appropriation for the Keene School. DEATH PENALTY ENDED MADRID, December 2 ().—Spain's new penal code, eradicating the death penalty and greatly increasing sen- tences for usury, went into effect yes- terday. The code establishes imprisonment “from 20 years and one day to 30 years” in place of the death penalty, and stipulatec sentences of 1 to 10 years, with large fines, for usury. Shopping Days ‘til Christmas 19