Evening Star Newspaper, February 3, 1933, Page 1

Al WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight; minimum temperature sbout 33 degrees; cloudy; not much change in temperature. ‘Temperatures—Highest, 62, at 3 p.m. yesterday; lowest, 38, at 7 a.m. today. Full report on page B-5. Closing N. Y. Markets, Pages 14 and 15 tomorrow partly No. 32,420 post office, Entered as second class matter Washington, D. C @b WASHINGTON, HOOVER DECLARES TAXBURDEN RELIEF MOST VITAL NEED President Hopes Interstate Conference of Legislators Will Find Solution. “MAIZE OF OVERLAPPING” BY STATE AND U. S. EVIL Garner to Block Tariff-Increasing, Bills for Present Holds Subject Is Too Im. portant for Short Ses- sion to Study. By the Associated Press. Speaker Garner today disposed of Republican attempts to force through teriff raising legislation with the dec- laration that “there will be no foreign depreciated currency legislation enacted at this session of Congress.” Garner made his statement to news- paper men. “The question is too important for the consideration it would receive at the short session,” he saild. “It is un- Parley Opening Here First of Its,necessary, if not foolish, to undertake | Kind Ever/Held in This Country. Declaring that “the people must have some relief from their tax burden” in view of the present economic situation, Fresident Hoover tcday told a confer- ence of representatives from State gov- ernments throughout the country, called to discuss the problem of over- lapping taxation, that their delibera- tions furnish an opportunity for “a contribution of the first importance” to the general welfare. The conference, called by the Ameri- can Legislators' Association, composed of members of State Legislatures, brought together lawmakers and fiscal experts in what was designated as the first _interstate legislative assemblies ever held. The sessions are being held at the Shoreham Hotel. The President told the gathering that he had been long interested in seeing the convening of this conference, which is studying those forms of taxation ap- plied by both Federal and State Gov- ernments. He said there is no co- ordination in taxation and that the “haphazard development of sources of taxation” in Federal, State and local Governments has produced a ‘“perfect maze” of taxation. The President gaid he did not an- ticipate a solution of this old problem out of this meeting, but that he was hopeful a stari would be made, and he promised to give “any measure of co- cperaticn that Federal authority can afford.” Text of Address, President Hoover spoke in full as follows: “ 7SIt is a very great pleasure to wel. come this first Inter:tate Conference of Legislaters to Washington. The sub- ject cf your discussions is one of the mcst importsnt prcblems before the Naticn. The cepressi-n has naturally made the Nation urgently con:cious of the tax burden, but the problem is much older than that. The evolution of gov- crmmental functions cf municipalities, townships, ccunties and States has led to haphazard development of sources of taxation to support these functions. The result has bzen a perfect mazé of overlapping, conflicting tax sy:.iems, with irevitable invazions by cne au- a large problem like this with the Sen- ate in the condition it is. Wants Real Study. “There is quite a dispesition in the House to take care cf the situation | breught a2bout by the depreciated for- ieign currencies and their effect on im- | ports. The preblem is entitled to ade- |.quate consideration, which it would not raceive at this session.” Extended hearings have been held by the:Ways and Means Committee on legislation for automatic increases in tariffs to offset the effect of depreciated " (Continued on Page 2, Column 2.) _ SENATE T0 VOTE | ON FOREIGN G00DS | Government supplies are required. Action Due Today to Require Use of American Goods in All Federal Work. BY G. GOULD LINCOLN. The Senate today is expected to vote up or down the Johnson amendment to the Treasury and Post Office appro- priation bill which would compel the purchase of American-made goods for all Government works and wherever It the action in the Senate late yesterday is a criterion, when, by a vote of 54 to | 20, the Senate suspended its rules to| make the Johnson amendment in order, the amendment will be adopted. Senator Walsh, Democrat, of Mon- | tana urged adoption of the Johnson | amendment when debate was resumed | soon after the Senate met today. He | called attention to ths fact that the Prince of Wales has traveled about the British Empire strongly urging every- one to “buy British.” The Montana Senator said the Democratic party stood for reciprocal agreements among thority of tax areas properly belonging|tne nations to reduce the tariff and to ancther suthority. If your confer- ence can help to make a scientific divisicn of tax sources amcng the gov- ermmental authorities you will have made a distinct contribution to the efficiency as well 2s to the economy of our whole governmental system. Hopeful of Results. “I don't expect and I don't believe you expect that you will evolve a com- plete system at this first session, but the -very fact that you have entered upon the prob'em, that you bring it prominently before the Nation, that you secure that thought shall be di- rected to it, will be a contribution of the first importance. “I warmly hope that your deliberation will produce fruitful results in a most important field. Cur economic situa- ticn is such that the peoplp must have relief from tax burdens. A decrease in income, whether in an individual or in a government, requires a decrease in its expenditures “Likewise, it implies and necessitates a balancing of budgets, and in all of the maze of problems that we have to consider to attain those aims, there is none more impertant than to arrive at some basis of taxation that can be equitably divided among our govern- mental agencies, and in that I look forward to a real contribution from this assembly. “So I wish you all the success in the world. I would be glad to give you any measure of co-operation-that the Fed- eral authorities can afford. I know that on the administration side we will be glad to co-operate with you in every particular. Thank you for coming and undertaking the services which you are giving.” Mr. Hoover remained only Jlong enough to make his address. The audi- ence arcse and applauded as he entered other trade barrier~, favored such a course. -Sees Ultimate Victory. “I believe, however,” sald Senator ‘Walsh, “that we will win such agree- ments if we adopt the policy of these other nations which have raised trade barriers against us. I have no doubt there would be greater prosperity if in- ternational trade were freer. But the question is, how we shall attain that end? We are pretty much in the same situation in regerd to the reduction of armaments. We are willing to reduce our own armaments, and have been so | for a long time. We were unable to| bring other nations to agree to a re- duction of naval armamaits until we were in & position to surpass them all | in naval strength. Then we found | tnem ready enough to reduce. “It is simply a question how we shall reach reciprocal agreements to reduce trade barriers. I believe adoption of this amendment will promote such agreements.” / Senator Tydings, Democrat, of Mary- land, took exactly the opposite view, attacking the Johnson amendment. He | proposed to add a new section at the close of the Johnson amendment which would provide that hereafter any money appropriatéd by the Government to aid in crop production should be covered back into the Treasury if there was a surplus of the crops to be produced. Hits Crop Surplus. “It is silly,” he said, “to propose to keep out foreign trade and at the same time to continue stimulating production of crops where there is.a surplus which we can-only sell in foreign trade. If we are going into a policy of isolation, let’s stop oducing surplus crcps in ths country.” and he said he and again when he departed. Warning Issued. ‘The conference heard a warning from Franklin S. Edmonds of Pennsylvania, president of the National Tax Associa- tion and former chairman of the Penn- sylvania State Tax Commission, on the trend for double taxation, where one Jurisdiction sees, that another has de- veloped a productive tax and then ap- plies a like levy. “The joint pressure of the two juris- dictions may rcsult in injustice, inequity and eventually the elimination of the revenue desired,” he said. Mr. Edmonds pointed to tobacco and gasoline as two illustrations. There are now 14 States which have impesed their own taxes on tobacco products, e said. As for the double tax on gasoliné, he said that while “two independent juris- dictions taxing the same product on dif- ferent bases and by different principles may justify their actions as constitu- tional, they cannot obtain any support on an appeal to common sense.” Continuing, he said, “It is noteworthy that with both of these products over- taxation has resulted in diminished consumption. The gasoline consump- tion in the United States for the first six months of 1932, as compared with the first six months of 1931, indicated that in the States where the rate was % cents there was a 6.7 per cent in- crease. Where the rate was 3 cents that was a decrease of 1.3 per cent, and the decrease continued with a higher rate of tax until, in the States that had (Continued on Page 2, Column 7.) e MACHINE GUNS SEIZED 80,000 Rounds Ammunition Alsp Taken From Austrian Socialists. ‘WIENER NEUSTADT, Austria, Feb- yuary 3 () .—Police raided Socialist headquarters and a printing plant in this industrial city today and confis- cated seven machine guns, 30,000 of ammunition and a quantity of rifles and explosives. The w«.;); was ctrrlel\‘iooul under the ’l’mfl . troops w posted their ~;‘own machine guns at the entrances of 4 the buldings.” | | Senator Tydings said that with world commerce stagnated “we find the trade balance still in our favor.” He con- tinued: “If we are going to say to the big agricultural interests of the country, we are going to do everything in 6ur power to stop your world market, then let’s (Continued on Page 2, Column 3.) LA e SYKES REAPPOINTED Named With Jensen as Member of Federal Radio Board. President Hoover today reappointed Eugene C. Sykes of Mississippi as a member of the Federal Radio Commis- sion, and at the same time appointed John C. Jehsen of Nebraska to be a member of the commission. The appointment of Mr. Jensen was made to fill the vacancy caused by the resignation several months ago of Maj. Gen. Saltzman. The nominations were sent to the Senate today. NINE WOMEN DEAD IN HOSPITAL BLAZE: INCENDIARISM SEEN Psychopathic Patients Flee From Rescuing -Nurses and Perish in Beds. VENGEANCE BLAMED; SUSPECT IN CUSTODY Fifteen in Cleveland Sanitarium Saved by Attendants—Panic of Others Proves Fatal. By the Associated Press. CLEVELAND, Chio, February 3.—A | mysterious fire burned nine women pa- | tients, all psychopathic cases, to death ‘ln a suburban sanitarium dormitory early today, despite the heroic efforts of attendants to lead them to safety. ‘The women broke from their rescuers en route from upstairs sleeping quar- ters. By the time nearly a score of other patients had bzen taken out, the panic- stricken nine, who had fled back to their beds, were beyond ald. The dor- mitory was destroyed. Eight of the nine bodies which had been recovered by fire fighting crews were tentatively identified: Mrs. Lottie Roback, 32; Miss Helen Kovack, 49; Mrs. Agnes Dorrington, 78; Mrs. Loraine Dean, 76; Mrs. Fannie Laundon, 54; Miss Ethel R. Zipp, 24; Mrs. Mary Bennett, 73, all of Cleve- land, and Mrs. Isabel McBride, 60, of New Castie, Pa. Miss Gladys Fraser, 30, of Cleveland, was missing, and efforts were being made to identify the ninth body. Most of the bodies were charred beycend recognition. Incendiarism Charged. Charges of incendiarism were im- mediately made by the management. Dr. William Glendenning, staff physi- cian and husband of the superintendent of the sanitarium, asked the Geauga County sheriff to arrest a man he suspected of vengeful activity. The sanitarium is the Ridgecliff, a private institution consisting of three cottages on four acres of ground near the yillage of Wickliffe, Lake County, Cleveland suburb. State Fire Marshal Val Hafner and Lake County officials launched an in- vestigation this morning. They went into Dr. Glendenning’s charge against a vengeful neighbor, and found the man had been at his home throughout the evening. A check was started to determine whether there were any pyromaniacs among patients at the sanitarium. Damage to the cottage was estimated at $17,500 by Mrs. Glendenning, with insurance of $10,000. The fire was discovered shortly after midnight by Millard L. Smith, a attendant, who smelled smoke coming through cracks in the ground floor. Puts Out Furnace Fire. Smith ran to the basement and ex- tinguished the furnace with a garden hose, but the fire kept increasing from another part of the basement. This factor was ing investigators today. Meanwhile attendants were arousing patients. The more hysterical among them, however, began to yell shrilly, and it became almost impossible to round them all up. Some women were hand- ed out and taken down ladders. Others were herded down the stairs and driven into the yard, but those burned to death broke away and ran back to their rooms. The nine women, clad in nightdress, fled in panic before the flames. The shrieks of the terror-stricken women rent the chill night as the flames ate rapidly through the frame dwelling. The smoke and heat soon became so intense that entrance to the cottage in which 24 woman patients and three sanitarium employes slept became im- possible. CUBAN CONSUL QUITS; DECRIES BLOODSHED Resigns From Post Here, but Em- bassy Says His Job Was Abol- ished on December 1. By the Associated Press. Saying he desired to leave the service of a “government so covered with the blood of thousands of my co-nationals who have been assassinated and which is carrying the country to ruin,” Orestes Garcia, Cuban consul here, today re- signed his post. He made public a letter to the Cuban secretary of state setting forth his de- nunciation of the present Cuban gov- ernment. Embassy officials said Garcia’s post has been abolished since December 1 and he was given the privilege of con- tinuing in service at half pay, but de- clined to do so. CHILD SPIES USED IN RUSSIA Defense of System Voiced « AGAINST PASSPORT VIOLATORS by Young Pioneers’ Paper. Aim Is to Stem Tide From Farms 'to Cities. By the Associated Press. MOSCOW, February 3.—Children have been called upon to aid the gov- ernment in enforcing the new passport system by reporting grown-ups who seek to evade it. The Ploneer Pravda, official organ of the Young Pioneers, sald M_ny: “The Ploneers must help the party and the police by revealing kulaks and other parasitic elements who undoubtedly will resort to malicious acts in an-effart to conceal themselves during the tion of the proletarian cent ‘Th lained the new de- e expl 3 |six days in & small boat in Albemarle swept the sound [of </BRITISH PLANNING ¢ Foeni ‘WITH SUNDAY MORNING EDITION D. C, ' FRIDAY, FEBRUARY 3, E WE MEBB CAN -ABOLISH THE SENATE New Yorker Says Senate| Attache Reflected on Honor of Congress. {Official Quoted as Writing That Members “Will Sell Their Votes.” By the Associated Press. i Representative La Guardia, Republi- | |can, of New York, today told the | House that David S. Barry, the Senate | | sergeant-at-arms, should be forced to| apologize to the House for an article appearing under his signature in a magazine. Reading from the article, La Guardia ' quoted lines which said that there were 2 few members of Congress who “will sell their votes for money and it is pretty well known who they are.” | g in | Terming the art! tie New Outlook) ectlon upon | honor of Congress,” La Guardia said if Barry knew members who would { sell their votes for money he should be compelled to make known who they are. La Guardia told newspaper men that | he intended to take no further action | LA GUARDIA DEMANDS APOLOGY | TO HOUSE FROM DAVID BARRY | DAVID S. BARRY. —Harris-Ewing Photo. since Barry-was an officer of the Senate and he wes mformed that the House | could not question him. “It's up to the Senate,” said. “But I repeat if he some members who will sell their votes, he should be made to tell who they are. His article was a_blanket reflection on the integrity of Congress.” DEBT DRIVEINU. S, Will Seek to Convince Ameri- can Public Cancellation Is Advisable. By the Associated Press. LONDON, February 3.—Great Britain | hopes to convince merican public | opinion in the next few weeks that a| drastic scaling down, or even cancel- | lation, of the war debts will not cnly benefit the United States, but the whole world. It was stated in highest government quarters that Great Britain plans to inaugurate its campaigh as soon as Sir Ronald Lindsay, the British Ambassa- dor, returns to the United States. The main purpose will be to counteract any belief in the United States that the debt question merely involves the pay- ment of money owed by Great Britain, which, if not fully discharged, will fall upon the shoulders of the American taxpayer. Cabinet Backs Chamberlain. ‘The cabinet is united behind the views expressed by Neville Chamber- lain, chancellor of the exchequer. The News Letter, official organ of Premier MacDonald’s Labor party, said today that Mr. Chamberlain “admirably stated” the cabinet’s views in his ad- dress at Leeds. In that speech he de- clared & business revival would result from cancellation or drastic reduction of the debts. Five members of the cabinet formed a subcommittee today which will await a report Mondey by Sir Ronald. They are Premier Ramsay M 1d, Chamberlain, Walter Runciman, presi- dent of the Board of Trade; Sir John Simon and Stanley Baldwin, president of the council. - Lausanne Pact Held Anchér. ‘The provisional Lausanne agreement is regarded by the British as the anchor for world recovery. The cabinet also stood behind (Continued on Page 2, Column 5.) —_— MAN ADRIFT SIX DAYS IN BOAT IS RECOVERING Gale Victim’s Feet Frozen and Knees Bruised While Bailing ‘Water From Small Craft. By the Assoclated Press. \erry, BLIZABETH N. C., February .—Willie Parrisher of Columbia is in a hospital rewvenn; from effects of adrift without food or shelter for City, ROOSEVELT READY " FOR FISHING TRP Will Spend 10 Days Cruising in Florida Waters Aboard Astor’s Yacht. By the Assoeinfed Press. WARM SPRINGS, Ga., February 3— President-elect Rocsevelt has fixed his policies and found his men to execute them and tonight he heads for the open seas to enjoy a last vacation be- fore assuming the office of Chief Ex- ecutive of the United States. A solid month of study and review of men since giving up the duties of Gov- ernor of New Ycrk has brought Mr. Roosevelt well up to the threshold of his administration and the “new deal” he promised. A smashing attack on the tangled in- ternationa! situation will be the first move of the new Demccratic President. He will hear separately the pleas of the European debtors for relief and de- mand in return for aid a definite as- surance by them of efforts for tariff reform and currency stabilization. Cabinet Announcement in March. He is prepared to call an extra ses- sicn of the new Congress if the present “lame duck” meeting fails to finish its job. Farm relief, balancing of the budget, severe economies and Govern- ment reorganization will be the goal of the extra session. With his induction to office only a month away, Mr. Roosevelt is holding his shots for the most part. He is not going to make announcement of his cabinet until about March 2. He will announce on March 4 innumerable other appointments to fill existing Gov- ernment vacancies. - Other surprises are in store. Only driblets of the Roosevelt program have come out. One of these, perhaps the greatest, is the idea he disclosed yes- terday of using the Tennessee water- shed for a vast experiment in rectgan- izing the life of the Nation through a development of reforestation, reclama. tion, water power and agriculture in this far-reaching inland sector. Elated by Quick Response. Enthusiastic over the quick response to this idea, he is already pushing his dream from this area to encompass the entire United States and to bring with (Continued on Page 2, Column 1.) —_— MANILA AIR LINE OPENS by Mrs. Tloilo Roosevelt. . is about 250 miles by air south- west from Manila. Radio Programs on Page ‘C-3 Guardia | nows of | ng Shae. 1933—THIRTY-EIGHT .PAGES. [ERSLATIE B CTTO A ‘House Committee Reports ' Supply Measure $2,123,463 Short of This Year’s. | By the Assoctated Press. Congress learned today that the House | Appropriaticns Committee thinks the legislative establishment can be run for $2,123 463 less in the next fiscal year | than the current period. The committee slashed $4,760,030 off | the budget estimates for the legislative branch and reported a supply bill cut to $16,588,878, as compared with $18,- 712,341 for this year Continuing the 10 per cent cut in | salaries of House members and Senators | made effective in the economy act 1t year, the members were given but $9,000 each in the bill. That an effort will be made to reduce | this amount when the bill is taken up on the House floor is certain. Totals of Two Branches. In all, the Senate, with its member- bill, while the House, with 435 members, besides dclegates and commissioners from the territories and possessions, re- ceived a total of $7,415,399. ‘The appropriations subcommittee head- ed by Representative Sandlin, Demo- crat, of Louisiana, lopped $809,879 off | the budget estimates for the House and $372,295 from those for the Senate. | A" provision was included to limit | the official funeral committees to two Senators and two Representatives and excluding payment of relatives expenses, This is the first limitation ever placed ! on governmental expense for official | funerals. For many years the funeral commit- tees ran as high as 40 members, but Speaker Garner has reduced the House appointments to such committees to about 15. Kenneth Romney, House sergeant at arms, had recommended that the num- ber of Representatives delegated to at- tend the funerals of members be limited to three. Members of the subcommittee con- curred, Representative Sandlin express- irg the opinion that two members were sufficient. Traveling Expense Item. Romney reported the largest item of expense connected with the funeral was traveling expenses, adding that the custom was to pay not more than $400 (Continued on Page 5, Column 2.) PLANE WITH 5 ABOARD IS OVERDUE TWO DAYS Woman and Two Children Are Pas- sengers on Craft in Western Alaska, By the Associated Press. ANCHORAGE, Alaska, February 3.— A plane flown by Pilot Robert Reeve, with Ole Hay of Nome and his wife and two children as passengers, was overdue two days today on a flight from McGrath to Kaltag, in Western Alaska. Pilot Matt Nieminen cruised northward frlom McGrath, but saw no signs of the plane. They had emergency food supplies and snowshoes aboard. The tempera- ture was 10 below in that area. The Hay family, old residents of Nome, was returning from Seattle and had taken the plane at Seward last Sunday. “From Press to Home Within an Hour” The Star’s Carrier system coversevery city block and the regular edition is delivered to city and suburban homes as fast as the papers are printed. ship of 96, was given $2,826.439 in the | Yesterday’s Circulation, 121,538 TWO CENT FARNERS PLEAT PERLS SCAOOLS, COMMITTE 0L Former Gov. McLean and William H. Settle of Indiana Urge Senate Action. MORATORIUM AND LOAN SEEN AID TO RECOVERY Sponsor for Allotment Plan De- plores Apathy and Continued Exploitation. By the Associated Press. Conditions in the agricultural regions were pictured as serious in testimony before two Senate committees today by former Gov. Angus W. McLean of North Carolina and William H. Settle of Indianapolis, vice president of the Farmers’ National Grain Corporation. McLean advocated passage of the Hull bill for a two-year moratorium on farm mortgage foreclosures to be brought about by lending $1,000,000,000 to farmers through the Reconstruction Finance Corporation to enable them to pay tdxes and installments, “That will save the schools, put the tax money in circulation and go far to revive business,” he told a banking sub- committee. Schools Near Closing. McLean said “schools are on the verge of closing because they can't collect taxes. The Government is breaking down and has broken down in the country districts.” “We will not have any strikes or dis- regard of the law likc they have in the West, though the people are in great distress and are disheartened,” he said. “Something has got to be done, gentlemen.” Settle told the Agriculture Commit- tee that he was “alarmed at the apathy here toward conditions out in the coun- try.” Both he and C. C. Moser of the £ merican Cotton Co-cperative Associa- tion urged enactment of the domestic allotment farm price-raising bill. McLean opposed the “emergency farm credit” bill introduced by Senator Rob- | Inson of Arkansas, Democratic leader, | saying it would “do the farmers of the country more harm than good.” Fears “Unloading” on U. S. Apparently, he said, it would permit | “all the life insurance companies and | everybody else” to “unload” their farm | mortgages on the Government. McLean approved another Robinson | bill which would refinance the farm | mortgage debt at 4': per cent, but said | he would not propose enactment of any permanent measure without more study than would be possible this session. The Hull bill he referred to as an “emergency” measure to relieve condi- tiors in the meantime. Settle told the Agriculture Committee “there is npe hope for agriculture's escaping continued exploitation, with | its_cold, merciless program of survival of the fittest, unless and until the Congress of the United States rec- ognizes and deals adequately with the problem. “We have had enough of the ‘hit and miss, hope and be hanged,’ " he said. May End Tomorrow. Chairman McNary said it is hoped to conclude the hearing on the domes- tic allotment measure tomorrow and lflu:'.dMOngl‘y w‘godbe “absolutely the last day that anyi will be hear this bill.” 4 L= Talking particularly as to the effect of the bill on wheat, Settle took issue with statements made at previous hear- ings by the flour millers and contended it would not increase bread prices. He said a Senate investigation had shown the reduced price of wheat had not been reflected in a lower price of bread to the consumer. Under the bill as passed by the House three weeks ago, the miller and other processors of wheat, cotton, rice, pea- nuts, hogs, tobacco and dairy products would be taxed in order to pay the farmer the pre-war price. Settle advocated that the bill be writ- ten so the Secretary of Agriculture could apply its provisions to any other farm product at his discretion. “We have tried very hard to prevent radical movements in Indiana, but with all the things going on in the country it broke out in Indiana last week,” he said. He described a mortgage foreclosure sale in Rush County at which he said farmers forced the sale of horses, cattle " (Continued on Page 2, Column 6.) —_— GALSWORTHY CREMATED AFTER PRIVATE SERVICES By the Associated Press. WOKING, England, Fehruary 3.— With the same simple austerity which characterized his life, the body of John Galsworthy was brought today from his home for cremation here, ‘The hearse carried a plain oak casket on each side of which lay a large laurel wreath tied with red, green and white ribbons. The absence of flowers was by request of the family. ‘The widow, other members of the family, a few friends and the family s;l;val}ts attended a brief service in the chapel. By the Assoclated Press. Jechn J. Raskob, former chairman of the Democratic National Committee, and Plerre 8. du Pont, wealthy Wil- “ordinary tributions could not be deducted from “capital net d Raskob cont but, come - = “! RASKOB AND DU PONT REQUEST REVERSAL OF INCOME TAX RULING Seek to Escape Additional Levies of $15,977 and $164,477—Petition Board. capital net gains. Du Pont followed the same ure. The bureau added the amount of Raskob's contributions to his income, and did the same with that of du Pont's contributions above 15 per cent deduction allowed for gifts. income is taxed at t.‘t: |and backed by organized agriculture,| BINGHAM ASSAILS SENATE BAN ON PAY CUTS AS HARMEUL Asks Reconsideration on Cos- tigan Amendment to Pro- tect Workers’ Jobs. VOTE ON MAKING PLAN GENERAL CONSIDERED Five Per Cent Reduction Under Appropriations to Be Sought for All Supply Bills. Contending the Costigan amendment ‘prombiting further wage cuts or fur- loughs as a means of making the 5 per |cent saving in the Treasury and Post Office Departments would force those departments to dismiss some employes, Senator Bingham, Republican, of Con- necticut, today entered a motion to re- consider the vote on the Costigan proe posal, adopted late yesterday, 51 to 24. Bingham expialned he was entitled |to enter such a motion because he did not -vote yesterday. He said the ban again‘t wage cuts or furloughs in carry- ing out the 5 per cent saving would icause cevere hardship by making it | necessary to discharge employes, whereas without the amendment the slack could be taken up through administrative furloughs that wculd keep the em- ployes somewhat at work even at re- duced rates. The motion to reconsider will not be | voted on until later today or tomorrow. Costigan Sees Benefits. Senator Costigan. Democrat, Colorado, contended this afternoon his amend- ment would prove beneficial to the great majority of Government employes. He indicated he does not believe it would lead to a large number of dismissals from the service. Costigan said he would, therefore, oppose the Bingham motion to reconsider the amendment. Commenting on the argument ade vanced by several Senators that pro- hibition against pay cuts in connection with the new 5 per cent saving would result in reducing the number of em- ployes, Senator Costigan said this might be true to a minor extent in certain cases, but that to 95 per cent of the employes his amendment would be ad- vantageous. He intimated further amendments might be proposed to take care of the exceptional cases re- ferred to. The question as to whether there is any conflict between the Costigan amendment and the general authority contained in the economy law enabling department heads to apply administra= tive furloughs in order to keep within reduced appropriations is likely to be discussed later on when the economy section is taken up. While the amendment would save workers from further pay cuts, it would not prevent departments from dismiss- ing some employes in order to effect the contemplated saving. In this con- { hection, some Senators argued that if broader reorganization power is to be given the President in the general economy section of the bill, reductions in force would follow through con- solidations and eliminations. The Costigan amendment bans pay cuts or furloughs *“other than those heretofore in effect or in this act pro- vided.” The general economy section of this pending bill provides for con- tinuation for another vear of the pres- ent 813 per cent payless furlough and also recommends a new cut_of 123 per cent on top of that furlough. Action Due Shortly. ‘These proposals have not yet been reached, but may be taken up for ac- tion today or tomorrow. After the Senate had voted to ex- empt salaries from the application of the new 5 per cent saving in appropria- tion totals, Senator Tydings, Democrat, of Maryland argued that what the Sen- ate really had done was to force de= partment heads to dismiss employes outright, and thereby destroy their civil service status, instead of permitting the saving through furloughs that would enable the employes to retain their civil service status. This question of permitting depart- ment heads to place employes on “ad- ministrative furloughs,” in addition to the general 81-3 per cent legislative furlough, as a means of avoiding dis- missals when funds are inadequate, also will arise for debate when the general economy sections of the pend- ing bill are taken up. The committee OFFICES SUPPLY BILL . IS PASSED BY HOUSE Trade Commission Fund Returned to $510,000 After Action Boost- ing It Is Reversed. By the Associated Press. The House today reversed its previ= ous action in boosting the appropriation for the Federal Trade Commission from $510,000 to $820,416 for the next fiscal year. The vote was 165 to 181. The House then passed the $1,002,« 800,000 independent offices supply bill, including the Trade Commission appro- priation of $510,000 and $966,838,634 for the Veterans’ Administration, and sent it to the Senate. The increase in the Trade Commis= sion’s fund was fizst made by adop- tion of an amendment sponsored by Representative Bankhead, Democrat, of Alabama. Representative Patman, Democrat, of Texas, demanded a record vote on the amendment and was successful in his effort to strike out the $300,000 increase designed to permit the commission to complete certain utility and other ine vestigations into trade practices. CHILE CUTS IDLENESS Government Announces Reduction From 128,000 to 96,000. SANTIAGO, Chile, February 3 ().— An official government announcement that