Evening Star Newspaper, February 5, 1933, Page 2

- competition with Great Britain and “higher cost of building ships. higher 3paid on ocean mail contracts this year | * upon those men who are to be delegates N A-2 =» GREEN REPORTED CABINET PROSPECT New York Paper Says A. F. L. Head Is Mentioned for La- bor Secretaryship. Bpecial Dispatch to The Star. NEW YORK, February 4—The Her- Rl1d-Tribune prinis the following dis- patch from Washington: | William _Green, president of the American Federation of Labor, today became the outstanding candidate for Sccretary of Labor in Washington speculation over the Roosevelt cabinet. In usually well informed quarters it w: asserted confidently that he would re- ceive that appointment and, almost as confidently, that Jesse I. Straus of New | York would be Sccretary of Commerce. Tobin Green’s Chofce. ! Selection of Mr. Green would mean that he had bcen chosen over his own candicate for the Labor secretaryshi Daniel J. Tobin, head of the Interni-| tionkl Brothernood of Teamsters, Chauf- | feurs, Stablemen and Helpers, on whose behalf he made a special trip last month to confer with President-elect Roose- welt. It would confirm also the view | which Washington has held for some time that Miss Frances Perkins, New York State industrial commissioner, whom Mr. Roosevelt was understood at time to have perferred, would not| get the appointment. Oppesition to Doak. of Mr. Green's name in n ‘today served to recall is vehement cbjections to the present Secretar f Labor, Willlaxa N. Doak, when President Hoover went outside the American Federation of Labor in ap- pointing him successor to James J. Davis, now Senator from Pennsylvania. Mr. Doak had been the legislative rep- sentative here of the Brotherhood of ga‘.lrm\d Trainmen. ‘The Federation officials, it was under- Btood. had the same objection to Miss Perkins and, in addition, were said to be ready to resist the appointment of a scciologist instead of a veteran of the organized labor movement, SENATOR COPELAND ACCUSES BRITAIN OF TRADE INTRIGUE (Continued From First Page) ‘The s he wift 1 cu the most outrageous and selfish na- tlonal policy I ever heard of.” are already being made interviewing the various nations which are concerned, for what is to be done at the economic confer- ence?” asked Senator Johnson, Repub- | Hean, of California. . y.” Copeland re- “That is exactly the plan.” “It is a species of lobbying?" John- son asked. “Yes, a species of lobbying against | Uncle Sam and the interests of the American Merchant Marine,” Copeland &nswered. Completion Held Tmpossible. Copeland contended the American fnerchant marine could not survive | zother foreign nations if shipping sub- sidies were eliminated. pointing to a wages and shorter hours for American | geamen and better living standards for men on ship board. An effort by Senator McKellar, Demo- rat, of Tennessee, to cut from $35,- 00.000 to $28.000,000 the amount to be | ‘was defeated, 36 to 32, shorty after Copeland spoke. During the debate, Senator Bingham, Republican, of Connecticut, said any cuts in the amount provided would “please the British" greatly. i Copeland said the British Chamber of Shipping has “gone so far as to call | to the forthcoming economic conference to get in touch with the delegates of | other nations in order that there may be some plan worked out to end the support America is giving to its Ameri- can_merchant marine.” “We have developed a merchant ma- gine which is of some consequence,” said Copeland. ¢ “It was not long ago, it was only at the beginning of the war, when very lttle of our products, agricultural and manufactured, were carried by our ships. “Even now we are carrying only one- third of cur fcreign trade in American flag ships. On the other hand, Great Britain carries 60 per cent of her own | foreign trade in British Empire flag | ships, and is carrying 45 per cent of the total foreign trade of the entire world. “The British are greatly agitated over the situation.” Senztor Copeland's remarks evcked no ment tate Department offi- | ci ho have long been conscious of a British drive against shipping sub- sidies. Discussed at Geneva. At the Geneva committee meeting of | international econcmists, which ar- ranged the conference program, there was much discution of ship subsidies as a burden on budgets and a bar to lon of normal conditions in the shipping werld. It was finally agreed that the subject should be dis: d at the conference along with many other problems of dis- organized tranportation. Dr. Edward | E. Day and Dr. John H. Williams, the American delegates, indicated the sub- ject was so controversial that probably | little could be accomplished by its dis- cussion. It is the opinion of the American delegates that criticism of subsidies will not be confined to American ship- ping, but will extend to the shipping of Italy, France and many other pow- ers, especially those which operate on the North Atlantic, Government aid in one form or an- other has been supplied to most of the lines in the North Atiantic, particular- 1y those operating large liners. But of the countries have been less . according to shipping experts, than the United States and have not directly financed the bullding of ships. It is belicved by many American shipping experts that nothing can be don> at the economic conference which will alter existing contracts and. agree- ments, and that discussion can not do more than force the agreement upon some principies .which may be adhered to subsequently inethe formulating of international shipping policy. LIFE TERM GIVEN MAN WHO RAN DOWN FATHER Second-Degree Murder Conviction Result of Produce Mer- chant's Trial. By the Assoclated Press. BRIDGEPORT, Conn., February 4.— Harry Goldberger, 36-year-old produce merchant, charged with killing his father with a truck, was sentenced to me imprisonment today after he had en convicted by a Superior Court jury of second-degree murder. The jury de- liberated more ‘than three hours. During the four-day trial, the State charged Goldberger ran down and fatally injured his 64-year-old father, Kalman, on November 20. Witnesses testifled that father and son had quar- reled frequently over business airs. The day after the killing, police ordered Goldberger's funeral halted as the cortege was about to enter a Brook- Iyn, N. Y, cemetery. The body was brought back to Bridgeport for an ldberger . sutopsy and the younger GCol was arrested, ' | tentialities of the RO THE SUNDAY RTAR, WASHINGTO OSEVELT PROJECTS A “TEST” IN VAST RESERVOIR OF POWER Monroe’s Dream of Tennessee Basin's De~ velopment Appears Destined to Be Pushed in Next Administration. BY REX COLLIER. A dream for development of one of America’s greatest natural - resources, the Tennessee River Basin, first en- visioned more than a century ago by President James Monroe, appears des- tined to step from the realm of fan- tasy to the world of hard facts during the forthcoming administration. Monroe caught the vision from the| limited aspect of navigation in 1827. Other Presidents and legislators and engineers have viewed the mighty po- valley and its water courses and have given reign to their imagination. Invention of the dynamo and the electric light opened an even wider vista of psssibilities for development of the valley, culminating in construction of th: Government's war-time power and nitrate plant at Muscle Shoals. Varying opinions as. to economic soundness of & comprehensive power program in this generation, opposition of many national leaders to entry of the Federal Government into the power bueiness, the great cost involved in car- rying out a [iénnuc, co-ordinated power-navigation-flood control project and other factors have combined in the past to confine the ambitious enter- prise to the blueprint stage. The most important advance made toward the long-sought goal of Ten- nessce Valley enthusiasts was the ex- tensive survey of the basin conducted by Army engineers under authority of an act of Congress approved Januaryl! 21, 1927, with amendatory provisions, Roosevelt Outlines Plans. It was the voluminous report sub- mitted to Congress by these engineers which inspired President-elect e- velt to call in the newspapermen at Warm Springs, Ga., the other day and outline to them his plans for making the pleasant Tennessee Valley dream come true. Apparently Mr. Roosevelt’s program represents a combination of power, navigation and flood control ~plans worked out by the Army engineers and certain reforestation and reclamation ideas nurtured by Mr. Roosevelt, him- sell. His recent tour of the valley, includ- ing a visit to Muscle Shoals, impressed him with the magnitude of this vast Teservoir of power. Here was & natural resource capable, according to Army engineers, of producing ultimately some 3.000.000 kilowatts of firm power. The nucleus of a network of power systems already existed at Muscle Shoals. It weuld, of course, take many years to develop these power resources to thelr maximum capacities, and develop & market with sufficient demand for so great a supply of electrical energy. Unemployment Relief. In the meantime, Mr. Roosevelt be- unemployment relief in the undeveloped marginal lands of the basin. in the forests and in the lowlands. Thousands of men can be put to work on reforesta- tion, drainage and reclamation under- tokings, he claims. These improve- ments automatically will increase the valley’s population and industry and will facilitate building up of a market for increased power output. In New York State Mr. Roosevelt evi- denced an intense interest in forest con- servation. He has seen the employment benefit® to be derived from planting trees and he is confident that similar undertakings on larger scales will be just as productive of good. According to officials at the United States Forest Service, no survey of employment pos- sibilities bound up in the Tennessee forest preserves has been made, but| they are prepared to make such a sur- vey if the new President or Congress directs. The latent power resources that | await harnessing in the big basin under plans of Army engineers were outlined to Congress in 1930 by Maj. Gen. Lytle Brown, chief of Engineers. An outlay of $1.200,000,000, he said, would produce ultimately about 3,000,- 000 kilowatts at an average cost of 4!5 n}ills per kilowatt -hour at the power plant. ‘While this price,” Gen. Brown said, is not remarkably low for a large hydroelectric ’gower development, it is considered sufficiently low to constitute an economically feisible and desirable Erojsct whenever the demand for power as grown sufficlently to produce a market which could absorb such large quantities.” Minor Cost to Government. The $1,200,000,000 cost of the project, Gen. Brown pointed out, should not be confused with the cost of any project to be carried out at the expense of the Federal Government, 8 “It is & vast plan possible to & proper combination of private enterprise and public works,” he reported. ‘‘The total cost is of no special interest in this report since only a minor part of it enters into prospective operations by the general Government.” The power development would be co- ordinated with navigation so that ship- ping would have a 9-foot waterway from the mouth of the fiver to Knoxville, with depths of from 6 to 9 feet for some distance up the tributaries. The contemplated power system, when completed, would consist of 146 hydro- electric power projects and & number of auxiliary steam plants, all inter- connected so that the entire system could function as & unit. Unless thus connected, some of the plants would suffer from a deficlency of waterpower in dry weather. Compensating reser- voirs would be constructed to regulate the flow of water for the turbines. The reservoirs also would be of value in preventing floods on the lower river, such as caused damage of $2,600,000 in the vicinity of Chattanooga in 1926. Once every 500 years a flood seven times as disastrous may be expected, engineers declare. “It is obvious that s project of this magnitude must be constructed step by step over a long period of tim Gen. Brown informed Congress. “To meet the immediate needs of this re- gion for improved navigation and in- creased power development, the district engineer recommends & more limited development, consisting only of seven dnf"s on the main river below Knox- ville.” These seven dams, it was stated, ‘would produce a large amount of electric power and, in combination with existing dams at Muscle Shoals and Hales Bar and with dam No. 52 on the Ohio River would provide 9-foot navigation as far as Knoxville. The total cost of the limited development would be nearly $250,000,000. Development of Market. The Tennessee watershed's 40,600 square miles already have 23 hydoelec- tric power plants with a total capacity of 413470 kilowatts. Wilson Dam at Muscle Shoals eventu: may be step- ped up to produce 260,000 kilowatts ad- ditional. Several other plants are un- der construction, with a total output of nearly 200,000 kilowatts. Construce tion of the 149 plants provided in the “ultimate development” would furnish approximately 4,000, horsepower. Future possibilities with respect developing & market for this tremen- dcus power were discussed by the Board of River n:d Harbor H‘l eers in & report to the Secretary of War. “The total power output in the Ten- nessee River Basin in 1827, the’board said, “was approximately 1,182,600,000 kilowatt hours. The demand for 1950 is estimated as 5,900,000,000 kilowatt hours. The projects investigated will develop 25,000,000.000 kilowatt hours per annum, of which half can be de- vels on the main stream. “It is apparent that if the potential ;v):lwer of the main stream be 0] is t0 be de- within & reasonable time, & Borary market 10 s power must | | | " | offs. me; cry Senate wlllltl be secured outside of the basin. ‘The States of North Carolina, South Caro- lina, Georgia and Alabama are well supplied with hydropower and the pos- sibilities of a market there are not good. In Arkansas, Ohio, Indiana, Ilinois, Missourl, Loulsiana, Mississippi, Ken- tucky and Tennessee the total power output, within 350 miles of the Tennes- see River, was about 7,000,000,000 kilo~ watt hours. It is estimated that the demand for 1940 in this ares will be about 18,800,000,000 kilowatt hours, and for 1950 about 25,800,000,000 kilowatt hours. This may be developed from the Cumberland and Tennessee River Basins. The total amount of firm pow- er which may be developed on the main stream of these rivers, with suitable storage development, is about 19,000,- 00,06 kilowatt hours. The district engineer estimates that the output of these developments may be absorbed by 1940 and that this power can be flel}vem: n‘:}: m";: areas ot“ & cost which ess cost, thelr exis! steam plants.” = Plant a Loss Since War, The Government-owned plant at Mus- cle Shoals has been & tremendous eco- nomic loss since the World War, at which time it was erected chiefly for production of nitrates used in manufac- ture of explosives. Due to uncertainty over final disposition of the plant, the Government was unable to negotiate a profitable lease of the properties. The gl;esenz contract with the Alabama wer Co. calls for a minimum annual paymen. to the Government of $560,- 000 During the past seven years the Qovernment has received less than $5.000,000 for power rights at Muaclc | ing Shoals. Engineers declare the plant is developing only one-fifth of its avall- able power capacity with existing facili- ties—the other four-fifths being wasted as “water over the dam.” CGovernment tion of Muscle Shoals for power luction was vigor- ously opposed by President Hoover in his veto of the Norris bill in 1931. He attacked it not only on the ground that the Government should not compete with private industry, but because he was advised that Government operation would be unprofitable. In & special report to the Muscle Shoals Commission, Col. M. C. Tyler of the Army Engineers, also reconimended against Government operation of the power plant for economic reasons. He estimated that while savings to con- sumers would amount to nearly $18.000.- 000 by 1948, the deficit accruing to the QGovernment over that period would amount to nearly $40,000,000. He concluded: “The Government's power plants at Muscle Shoals and the proposeu Cove Creek development are not suitably located to serve as the main generating’ stations of an extensive in- dependent power system; the conatruc- licves, there are prospects of immediate | [0 of an independent system would involve large expenditures of public funds; the cost of firlnsmlmnf power in such a system would be high and the realiability of service 4t long dis- tances from the generating center would be poor; the construction of an inde- pendent system would be an economic waste, in that it would duplicate transmission facilities now ample to serve the region: and it may ex- pected that the deficit from the constructign and operation of such & system, which will have to be met by the Federal Treasury and by the gen- eral taxpayers, will largely exceed any savings from lower rates which may ac- crue to the limited local public served.” President-elect Roouvzrt undoubtedly is familiar with these adverse opinions, but evidently does not intend to allow them to deter him in his plan for push- ing forward what he concedes is an “ex- periment.” The flood of congratulatory messages which he recelved after his announce- ment of the program is an indication that he will receive wide support for his “laboratory test” from a depressed, but hopeful, people. SAVINGS PROPOSAL POSTPONES SENATE ACTION ON PAY CUT (Continued From First Page.) — ued From First Page) employes would then be faced with the continuation of the present legislative furlough, amounting to an 84 per cent cut; the additional 12; per cent recom- mended in the pending economy bill, and a possible 71 per cent cut through the ofemtlnn of the Bratton plan, or & total of 17'5 per cent in some cases. May Embrace All Departments. ‘The Bratton 5 per cent amendment thus far has been voted only for the Treasury and Post Office, but he will offer it again early this week in terms that would apply to all departments. And when it i3 offered in that form, Senator Costigan will sgain move to add the following restriction: “In mak ing any such reductions in expenditures, nuo wage cuts or furloughs shall be or- dered other than those heretofore ef- fected, or in any other section of this ugo D'“E:d':w h me Senators argue that the Costi- gan amendment, while preventing fur- ther pay cuts to accomplish the 6 per cent -vlgf‘ would lead to dismissal of some employes who could be retained with furloughs except for the Costigan amendment. Senator Costigan, how- ever, still belleves his amendment will be beneficial to the great majority of employes, 5 omas F. Flaherty, ~trens- urer of the National ‘edantlon of Post Office Clerks, announced yesterday that his organization is s\ ting the Cos- tigan amendment. e insisted it is workable as applied- to the postal serv- ice, contending there is ample leeway to save 5 per cent without reducing wages directly or mrwgn enforced Iay- He opposed the Bratton amend- The 5 per cent saving proposal carried with a substantia] margin on the Treasury-Post Office bill, but there are indications that it will not com- mand the same strength on the vote to apply it to all departments. Whether there will be a sufficient difference in the vote to change the result, how is problematical. gt e final outcome of the 5 per cent saving on expenditures generally may have some effect on the decision of the Senate regarding the direct new pay cut of 135 per cent. Doubt of Passage. In some quarters, the belief last. night that f e s Per cast i‘fil‘f Posal is sustained for all departments,’ the 1% per cent pay cut amendment ‘was FACTS ONBULLITT |HITLER EXPECTED | ASKED OF EUROPE| TO DEMAND ISLES ..., prc. Cancellation of Passport Only Curb, i Activities Are Objectionable. —_(Continued From First Page) and perhaps other capitals in opposi- tion to the stand Congress has taken against cancellation or reduction. Both the State Department and President-elect Roosevelt have denied that Bullitt has any governmental sanction to enter into negotiations. Undersecretary of Btate Castle wrote & letter to the fe- n of Indiana, department “has no information as to his (Bullitt's) ac- tivities n':mfl 'mf: ‘:.auld tend to corroborate reports , but is asking American missions M!nm- tion concerning Bullitt's activities.” Castle's letter said he will communi- cate again with the Senator as soon as :; hes replies from Ambassadors in | rope. ‘The Logan act, through which Senator Robinson seeks to check the slleged negotiations of Bullitt, makes it & crime punishable by afine of $5,000 and three years in for an unauthorized American to engage in negotiations with & foreign power on & subject in con- troversy between that power and the United States. For several weeks there have been Teports in the press of negotiations Bui- litt held with Premler Ramsay Mac- Donald in London and with members of the governments in Paris, Berlin and Vienna. He was in Vienna a few days 880, but is now believed to have left there for a visit in the country. It was also reported that he was negotiat- o lease & home in Vienna. In Wilson'’s Service. Bullitt was connected with the State Department in the Wilson administra- tion and accompanied the American delegation to Paris for the Peace Con- ference. He was sent to Russia by Col. E. M. House to make an investigation during the Paris conference and a re- g{t of his favoring recognition of the viet government created considerable comment, He severed his. connection with the State Department shortly aft- erward. Castle’s letter said Bullitt is traveling on an ordinary passport which expires in September of next year. He gave his profession as an author when he obtained the passport. Prosecution under the Logan act must be initiated by the Justice Department. The only step the State Department could take if it decided Bullitt's activi- ties should be stopped would be the cancellation of his passport. This would make it difficult for him to cross cer- tain European borders. BULLITT LEAVES VIENNA. Probably in Country Visiting Friends. Dined with Lewis, VIENNA, February 4 (4).—Both Wil- liam C. Bullitt, who has denied that he is the secret emissary in Europe of President-elect Roosevelt, and Sincjair Lewis, who dined with him Thursday, have left Vienna. Since the row in the United States Senate over Mr. Bullitt, he has been “somewhere in the country with friends.” Lewis and his wife, the former Doro- thy Thompson, were greatly importuned by seekers for Mr. Bullitt, for with a certain foreign diplomat here they were among his guests at a hotel party the night before he departed. The Nobel Prize-winning novelist finally threw up his hands and fled toward London, say- ing something about the necessity of seeing his publisher. Mrs. Lewis, who has remained in Vienna, said the entire affair had been igiven a too dramatic aspect. “The question of his reported mission in Europe came up at dinner,” she ex- plained, “and Mr. Bullitt seemed peeved that such reports had got around, but otherwise it was just a jolly evening. ‘We danced until late. Mr. Bullitt said friends in the country and that's where he apparently is now.” TAX!I DRIVER ARRESTED AFTER CAPITAL CRASH Drunken Charges Filed in Collision ‘With Street Car and Other Cab. @irl Passenger Hurt. A taxicab driver, Ernest Perry, 23, of the 1300 block of Childress street northeast, was arrested early today on & charge of driving while drunk, after ninth precinet police said, he had crashed into a street car and another taxicab on H street northeast, between Nthh and Tenth streets, injuring a rl passenger. mThe pm'e'nger, Miss Elizabeth Hall, 19, was treated at Casualty Hospital for lacerations of the lower lip and other injuries. ‘The second taxicab, driven by M. Melton, 44, of the 700 block of Tuckerman street, was damaged when Perry's cab careened off the street car into his machine. Neither of the driv- ers was hurt. Broken glass was scattered over the street and the front portion of the street car was smashed in the impact. Perry’s demolished. . preventing furloughs, it would lead to dismissals. Following the joint session of Con- gress at noon tomorrow for services in memory of former President Coolidge, the Senate will resume work on economy program, taking up the nu- ‘merous other provisions relating to sus- n of annual leave for another year; application of pay cuts to enlisted personnel of the Army, Navy, Marine Corps and Coast Guard; & proposed 10 per cent reduction in pensions of the Veterans’ Administration and compen- sation paid under the war risk insur- ance act and World War veterans' act, whgor; the annual payment is more than $1,000. ‘There are various other clauses to be considered, such as the continuation of the existing authority to place Govern- :ent workers on ndml.ned flnun {'\‘x.r- ugh to keep within reduced appropria- tions; the transfer of per- sonnel records from the jurisdiction of the Civil Service to the va-! tous departments; t}iemprsmlu to abol- ish the Bureau of iciency, and the sections broadening the power of the President to reorganise the Government service by abolishing or consolida buresus. This is expected to lead to probably would not go through. In any | jagt. event, the Senate will fight out the 5 per cent saving proposition, and the amendment to, prevent wage beflre. voting on e 13 per et ses: lore vot on e T o tlon of the bil, e Senator La Follette told the Senate Tor sconoimy” has siampeded tae y o "to [ it wh'gc it 5{- regardless of human beings.” Me on suggested the m:i priation down that toms Democrat, deeper cut. The ureau fund was cut from $19,900,000 to $17,500,000. ‘The Internal Menu’:. Bureau was cut m.uf,m. of Senator the motion entered by Senator Bingham | g Friday to reconsider the amendment Senator Bingham indicated he would not object to that procedure. Benator Bratton then st post~ poning the 12-3 per cent reduction question until after his general 5 per cent saving clause is acted on, and Sen- ator Barkley, Democrat, of Kentucky Bingam then ob s oome sent to follow that course. s Costigan be disposed of immediately. | fgoql year Sy i e s | e he was leaving in the morning to visit | D. C, FEBRUARY 5, Japanese Mandate Row Would Stir Problem With Deep U. S. Concern. By the Associated Press, Adolph Hitler's government is ex- pected by international observers to start & camj in Geneva for return of the former German colonies—a step which may stir up the ‘The question in the QGerman Fascist leader and officials of other powers is what disposition might be made of the islands should Japsn carry out her threal of seceding from the League because of the Lytton com- mission's condemnation of her aggres- siveness in Manchuria. The American Government is particu- larly interested in the future of the | islands because of their nearness to Guam, the Philippines and Hawali. Allotted by League. The German islands, consisting of three groups known as the Mariannas, the Corolines and the Marshalls, we allotted to Japan by the League of Na- tions, which is charged with the control and execution of the terms of the mandates. ‘Toklo’s apparent intention of retain- ing the islands as spolls of war regard- less of her position at Geneva has cerr. in the varlous world capitals. Observers generally have been seeking light on the League’s attitude in the m.D":l’lrl ls that Ji ] Q Whs secretl, building s naval h:n e islands have been made by the Jaj delegates in Geneva and ‘17 cials in Tokio, including Vice Muneo Osumi, minister of In answer to various islands were being fortified, Osumi{ pointed out that the ysical outlines of the islands made their use impracticable as milif bases. Re- ports of Japanese expenditures in deep- ening Saipan Harbor, one of the larger Islands, 132 miles from Guam, were ac- counted for by the Japanese department of communications as being purely for commercial purposes. Bugar is the chief output of the island. . U. S. Treaties Separate. Under the League of Nations cove- nant, supervision of mandated territo- ries and their relations with the pow- ers is placed in the hands of & nent Mandate Commission at Geneva. Since the United States is not a mem- ber of the League, Washington has been forced to protect its relations with the mandated districts by separate trea- ties which guarantee the United States equal l‘mfl to those enjoyed by mem- bers of League. By terms of the Washington naval | treaty, the United States agreed not to build any new fortifications or naval bases on Guam or to increase its de- | fenses there. In a treaty dealing with the rights of Japan and the United Btates in the former German possessions, ratified in 1922 by both governments, provision is made that there shall be no military or naval bases established or any fortifi- ions erected anywhere in the terri- tory J question. ‘The American Government, it is un- derstood here. has no intentions for the fi“rmnt of raising the question of what been happening in the far-away islands off the beaten track of ocean travel, but it is paying close attention to developments, offi- o iral e navy. that the Admiral EMERGENCY DECREE FOR PRUSSIAN DIET DISSOLUTION SEEN (Continueg From First Page) to bring about the dissolution of the Diet, in which the opposition parties now are in the majority. First Major Hurdle, ‘The Diet impasse was the first major hurdle faced by Chancellor Hitler's vernment in the first week of its ex- tence. Von Hindenburg's insistence that the constitution must in nowise be strained, the cabinet adopted the long and com- plicated method of communal elections rather than follow the clamor of some newspapers for dissolution of the Diet by decree. Before this action was taken the gov- ernment drafted a decree withdraw- ing the freedom of the press in 5o far as articles likely to ridicule the administra- tion, or to ‘cause unrest among the populace, are concerned. The measure &lso restricts the right of assembly. Although the decree is expected to be promulgated tomofrow, the government has not walted for that formality and has banned at least eight Socialist and two Communist papers in scattered ITY | towns, and the entire Communist press in the Ruhr Valley. tant Socialist Betlin Vorwae: Hanover, Breslau, Mecklenburg and Bchwerin papers also were officially prohibited. Tssues Three Denials. The Government issued three denials: 1. That it contemplated a general moratorium for agriculture. 2. That & cabinet rift had occurred. 3. That it planned to appoint Federal commissars for states other than Prus- sla, where such officlals already are serving. The dissolution of city and village councils means that all boards of aldermen, from Berlin down to the smallest village in the state, must hold elections one week after the scheduled Reichstag election. The government expects these elections to produce com- mural majorities for the Nationalists and for Hitler's National Socialists and to result in the election of a rightist president of the Prussian State Coun- cil. This president, voting with Nazi Diet President Hans Kerrl, would bring about the dissolution of the diet under the provision which permits dissolu- tion by a two-to-one vote of the diet triumvirate. This diet triumvirate in- cludes the premier of Prussia, the presi- dent of the diet and the head of the The most impor- rzpcr under ban is the . Cologne, Jena, Gera, to dis- trict parliaments, which, turn, elect Tepresentatives for the 18 provinces into which Prussia 18 divided. These repre- Ung | sentatives constitute the Prussian State 1, from the mémbers of which a President is chosen by majority vote. “Monstrous Insulis Published.” A government communique sald ree strictions on the pi had become necessary because ‘“‘monstrous have been published ment determined to assert its auf even | ity cannot stand for.” From & hational Boclalist source it Was learned that the restriction oritain all R gz, 25§ ofs 8?255&5 g29385 aroused much interest and some con- | Tma- | In accordance with President | insults | A1 which & govern- 1933—PART ‘ONE. Appropriations for (This is the first of & series of three articles on the tazicad situa- tion in Washington. The second article will appear tomorrow.) The disclosure yesterday that Repre- sentative Blanton of Texas intends to revive his amendmient to the District ¢ | appropriation bill preventing the Public ds | Utilities Commission from using any of the funds to enforce its taxicab meter order threatens to eliminate any hope of settling at this time the muddle over the relative merits of the meter and z0one systems of taxi operation. If Mr. Blanton carries out his inten- tion, Washington will be left for an- other year in the confused position of having a Public Utilities Commission order, which has been upheld by the court, rendered invalid for all practical pu by an act of Congress. e commission will be on record s uiring meters, but the taxicabs will still operate under the zone system. One Faces Failure, One large cab company has said it will be forced out of business if the zone system is continued. Two other com- panies favor it. The individual drivers cannot agree, and both sides have many arguments in support of their positions. The public generally seems to favor the cheap rates of the zome system, but officials who have investigated the situation say the drivers cannot make 8 decent living under existing condi- tions, The net return is hopeless confusion m’ u‘l""cm.m.’ b 'byn ;ud inating t 3 elimi Mr. Blanton's restrictive clause from the appropristion bill, W help clear up the middle, but apparently no relief can be expected from that source. During recent hearings before the subcommittee drafting the appropria- tion bill, Mr, Blanton asked M. Patrick, chairman of the Public Utili- ties Commission, if he intended to un- dertake enforcement of the meter regu- laticn this year. “We would like to know,” Mr. Blan- ton sald, “because we would like to | find out whether it is going to be | Decessary for us again to put a pro- vision in this bill to stop it.” After pointing out that the meter order had been upheld in the District Supreme Court, Gen. Patrick said the commission would be guided by the ac- tion of the District Court of Appeals. “If the Court of Appeals holds it to be a valid order.” he said, “we would have to state tha® any one who violated that order would be liable to punish- ment.” Cites Texan City. Mr. Blanton pointed out that in one city in Texas cheap taxicabs had nut street car companies out of business. | Declaring that he was thinking of the | people here, he said “if the street rail- | | way companies cannot furnish what the | taxicabs furish, let them get off the | streets.” . | _Gen. Patrick said the service given | by taxicabs in Washington had been | very unsatisfactory, pointing out that | traffic conditions have been adversely affected by the number of cabs and that the earnings of the drivers have | been low. “Has the service been umsatisfactory {to _the taxicab companies or the con- sumers?” he was asked. “The consumer,” he replied, “ |ably is always willing to get something | for nothing, or to get service for less than he ought to pay. So I should say the consumers are highly satisfied.” Proponents of the meter system charge that the subcommittee which approved the -amendment last year heard only the advocates of the zone | system. They say the question of the | amendment was scheduled to come up | for considefation at an executive ses- | sion. When the meet: was called to | order, they claim, Mr. Blanton moved that the session be thrown open to sev- eral delegations waiting outside. When | this had been done it developed that the waiting delegations were representas tives of groups opposed to the meter system. The proponents say they had no no- tice and for that reason were not there. ‘Promise Many to Testify. 1f an open hearing is held this year, | however, they promise to have s large | number of cab drivers and owners on | hand who will speak for the meters as the best means of enabling them to earn an adeguate livelihood for them- selves and their families. LANTON AMENDMENT REVIVAL THREATENS TAXI SETTLEMENT posal Is to Ban Use of Any D. C. Enforcing lts Cab Meter Order—Muddle Would Remain. After the commission hed order first 2 ple’s Counsel Richmond B. Keech and George Sullivan, representing the Fed- eration of Citizens' Associations, in op- the some system were ‘mud.m‘ on four general arguments in its ‘under 2o0ne system of an overcharge to strang- ers in the eity. 4. The installation of the meter sys- tem would throw a considerable number of men out of work. Meter System Advocates. In addition to Justice Adki Public Utilities (kflm’:fnbn. n!‘h:n:mtx system is favored by the Yellow Cab Co., many of the Diamond vise - i u‘: non-discriminatory zone 2. The zone rates are unreasonably low and in many instances are below ::iut" The -~ of the entire in- ustry are lequate if fair es are to:‘ht R:i to the drivers. iy . zone rate is possible onl [through the exploitation of - rente; | drivers. The rental is paid first and the driver compelled to work unrea- | ings. | 4. The owner-drivers are compelled | by competition to adopt the same sys- | tem and to work the same long hours. In many cases they are losing money. 5. The long hours will seriously im- peir the efficlency of the drivers and endanger the public. Serious accidents | are likely to occur as a resuit. 6. The system increases cruising in congested areas, causes drivers to re- fuse unprofitable hauls and causes frauds and dispytes. 7. The additional income from the meter system would make it possible for drivers and owners to pay for lia- bility insurance, thereby affording | greater protection to the public. | " 8. The installation of the meters, if | the 12-hour working day is enforced, | Wil not materially reduce the number | of drivers employed. Those eliminated | will be ngan-nrm drivers, reckless | drivers and others not considered de- | sirable by the operating companies. Regardless of whether these argu- | ments make out a good case for the meter, it is agreed virtually all of the parties that the present zone rates cannot continue long in existence. Leses 2 Cents a Mile. One of the leading companies estimated it loses 2 cents for each mile its cabs operate. In one month it lost $20,000. Unless there is some improve- ment in conditions, either an increase of zone rates or the compulsory instal- lation of meters, this concern expects to go out of business after the Inaugu- ration. All of its cabs will be junked | and some 400 drivers thrown out of work. ‘The Public Utilities Commission has been asked informally, although it has no authority now to grant the request, to consider increasing the zone rates to 25, 50 and 75 cents, respectively, for the three sones now generally used. If such a schedule could be put into effect, it probably would enable the drivers to earn enough to live on with- out working excessively long hours. The other objections to the zone system, however, would not be removed. And, what may be of greater impor- tance, the cloud cast over the authority of the commission and the courts to re‘fuhte public utilities in the District will not have been dispelled. COMMITTEE VOTES TO INCREASE D. C. GAS TAX 1 CENT ___ (Continued From First Page) relieves the car companies from pay- the two systems consolidate. ‘The estimates submitted by the Com- missioners to the Budget Bureau would have left a balance of but $183,170. The bureau, however, sliced $1,200,000 from the various items in the budget and lopped off ahother $2,365,145, rep- resenting the 8!3 per cent salary re- ductions, besides scaling the proposed Federal contribution down from $9.500,- 000 to the $7,775,000 which was appro- priated for the current year. Cash Surplus Reguired. ‘The cash. lus to the credit of the | general fund is required by the terms of the act of June 29, 1922, which was the act fixing the 60-40 basis of ap- prnpfl:tun‘ funds n:r the dx“?m of : District government. ( y per cent to be contributed by the District and 40 per cent by the Federal Govern- ment.) Since 1924 Congress has not followed the 60-40 provision of sub- stantive law, but the surplus section remains. ‘The District’s experience in bullding up surpluses has not been harpg. The last one went for purchase of the land for the future construction of the Mu- nicipal Center. The land was bought, but when the depression struck, the project was temporarily shelved, and funds that might have been a) - ated for continuing its planni and construction were diverted to unem- loyment relief. The land cost the mact, according to the testimony, $6,- 500,000. It was removed from taxation, the' District has spent the money and cannot proceed with the buildings. The figures quoted above on the sur- plus in the general fund take into con- ;ldennan 3'375,00(: nlrueudyt ‘:dmn%d for IIMII-B yment rel an = tional $625,000 to be ated in the decree (18 ing the salaries of crossing policemen if |is that any increase because of the con- struction of new buildings was approxi- mately offset b{n depreciation in the older ones. Continuing, he said: ““The sale of small properties is dead. ‘Where properties were put"up‘ lar’nlc urposes, dwellings, to sell for fogr- Eecn or fifteen thousand dollars, I have known s number of them to sell for 10 or 11 thousand. There is a decrease in construction costs, and that decrease bound to be felt in a great many directions. During the last year we have property in which they ssk for about s 20 ;’r cent reduction because of the decrease of bullding costs. We have al- lowed from 9 to 10 per cent reduction, and in con“ec“?h“mm: chnnge‘sy, they affected 1. of properf assessed &t uu.ooo.goo. and the total mmmt‘ o(a o«.;g oo" ction allowed was about $12,000,000." Other figures submitted by the Dis- trict auditor to the committee showed that at the close of business in the 1933 flscal year (the cufrent year) the Dis- Ll S e ‘Treasury on ,195.42. with $4,271,000 in 1931 and mg,'ooo filed late yesterda: Chairman am in A M:z{ the 3-cent gas tax 5 med'u addif tw;h: Dumc‘o{“l"."mue’ a1 sources , = ofn f'!lpovl_hlg officials of the i 8 authorities as The Bl & B necessity for broadening taxation in the District.” Quote Richards Letter. Declaring real estate taxes furnish the largest single item of revenue to the city, the Senators included in their re- port & letter from District Assessor Richards, in reply to a request for data the probable future income the fiscal year 1933 probably fmgow a further falling off. He also cited a decline in receipts from delinquent tax sales, and concluded as follows: “It appears, thevefore, that not only will our base value for assessment pur- decrease t present to the real estate tax rate mx,n per dred of assessed value), if more for District Named Paramount Receivers. CHICAGO, February 4 (P).—Adolph Zukor and Charles D, named Tecelvers for had been named receivers in New sonably long houts for insufficient earn- od had appeals on & great many pieces of N = | Persof Hillis today were | viding HIGH TARIFF BILLS . 4 GET NEW SETBACK Rejected by Ways and Means Subcommittee After 2 Weeks’ Hearings. By the Associated Press, House Demoerats drove another nail mmt&mm:m:&-y plan to smother Republiean efforts for 2 | tATIT boosts this session. After two weeks of hearings on bills to ralse import duties against depreci- ated cwrrency ‘countries, s Ways and Means Subcommittee rejected them. Confirmation of this unfavorable ac- tion by the full committee, which has Democrats for every two Republi- cans, was considered a foregone con- elusion. The attention of Democratic leaders next was directed toward the vote on February 13 on the Republican motion to discharge the Ways and Means Com- ::ttfi: and brmlbul:p b;or consideration e floor a Representative Crowther, l‘(zpnbncalnd: of New York, forelgn money has dropped below the nht;mlmlpndty with the American dol- G. O. P. Ferced Vote. Republicans forced the scheduled vote after a party conference. Speaker Gar- ner has said that “if necessary” the Democrats will caucus to defeat it. Since the discharge petition was filed, the Crowther bill has been assailed by the Republican chairman of the Tariff Commission, Robert L. O'Brien, and op- Posed by a Treasury spokesman. The subcommittee vote on a motion to approve the Hill bill—a measure sim- lar to the Crowther plan—was 4 to 4. Hill, the bill's author and & Washing- ton Democrat, joined with the subcom- three blicans—' Mittee’s Treadway ‘atson of Pennsylva- of Massachusetts, nis and Crowther of New York—in be- his measure. half of Feour in Opposition. ‘They were opposed ton of North Carolina, m"! mnma ¥xckmwn of Missouri and Sanders ‘exas. Then & motion was made to report out the bill by Representative Hawley, Republican, of Oregon, which was draft- by Treasury, Commerce and Tariff Commission experts and would have | broadened the commission’s flexible adjustment powers. This motion was lost. 5 to 3, on a strictly party division. The full committee will be advised of the subcommittee’s action at a meetinf some time next week. Democrats 'lfi | determine then whether a party caucus jsl-u:euld be called to block the discharge vote. | the A tie vote defeats a motion. BARRY’S DISMISSAL FOR BRIBE CHARGE IS DEEMED CERTAIN (Continued From First Page.) | the_evidenee s in.” he sald, referring , . refel to Barry's testimony of Friday. Barry, who in his 14 years as ser- geant-at-arms has enjoyed a universal Trespect and popularity among the Sen- ators, did not appear today at the Cap- itol. Over the telephone from his home the 73-year-old employe said his plans were uncertain. Several Senators privately expresscd has | regret at the manner in which the Sen- | ate dealt with the situation Friday, but one said: “Everybody hates us and every one else in authority. That statement, if unchallenged, would go from one end of the land to the other.” The Judiciary Committee may be asked tomorrow by Senator Blaine (Rea | publican) of Wisconsin to make its own investigation of the statement that members of Congress accept bribes. Blaine asked the Senate Friday to extend the committee's time so that such an inquiry could be made, but the Senate turned him down. He indi- cated yesterday he may propose ubmfil:dn b:; the m and otherp cal ore the committee to give what information they may have, ® LEAGUE TO REJECT JAPANESE DEMAND FOR CONCILIATION —_(Conttnued From First Page) large measure of autonomy, a dec tion that internal order lhyuuld bempr.- served by local police and that foreign armed forces should be withdrawn: and a recommendation for 'gmporlr; International co-operation in the ine ternal reconstruction of China, Article 16 Discussed. A brief discussion of article 1 League covenant, which provlde.‘tgz g:: use of sanctions, was understood to have taken piace in the committee. Details were lacking, but it appeared that some members thought the article might be employed as a means of aled‘un m members not to assist definite Sino-Japanese break came. In Japanese quarters it was said that Mr. Matsuoka received from the com- mittee president, who assisted the sec- retary general in making the notifica= tion, a suggestion that some Toom for conciliation still remained in respect to changing the “f.hrueoloc{ of the com- ;létt:;: formula, but not changing its Mr. Matsuoka, on the other han suggested that if conciliation mfi‘l tions were broken off he might ask Deputy Secretary General Sugimura to serve a8 intermediary between the League and the Japanese delegation. This was taken in some quarters as an intimation that Japan would withdraw from the Assembly if the door to con- ciliation were closed. Your Income Tax Neo. 7 Returns of Husband and Wife — If husband and wife should each have & net income in excess of $4, but neither a net income in excess $6,500, 1t is to their interest, in flling separate income tax returns for the year 1932, to divide the personal exe emption' of $2,500 between them, as shown by the following illustration, in which the husband claims $2,000 and the wife 3500 Net income, husband Personal exemption. .. at 4 per cent. X Ta Husban et 1 e, wife exemption. ‘Total tax. husband and wite. . ‘The normal tax rate being 4 per cent on the first $4,000 of net income in excess of the personal exemption and other credits and 8 part of the to the 8 per rate. A huh-mnd and wife, aside from @i~ s personal g Tl e S Thele Joint et e 4 am clently t0 be subject to the sure : in excess of $6,000, tax—that