Evening Star Newspaper, April 14, 1933, Page 1

WEAT woaw iy Jowest, & Pull report on page 1 New York Stock Market Closed Today Iher Wureny Porseast HER, alightly tomor - intered as seco post office, W ‘V'.Mll nd class matter shington, D. C. RUSSIAN WORKERS TELL OF ALLEGED BRIBES PAID THEM Thornton, MacDonald and Nordwell Charged With Buying Information. TWO BRITISH ENGINEERS DENY ALL ALLEGATIONS Third Continues to Stick to Con- fession Given Ogpu at Time of Arrest. By the Associated Press. MOSCOW, April 14.—Russian testi- mony to support charges of bribery-and sabotage was presented today at the trial of six British engineers accused of these high crimes against the Soviet state. One witness told of taking a bribe of $1,500 from L. C. Thornton, one of the defendants. Another said he had been paid $500 by Willlam H. MacDonald, another of the accused, to deliver plans for a power plant in the Urals. A third Russian witness said Charles Nordwell had paid him $2,500 and given him a fur coat to damage a turbine at the Ivanovo power plant. This last charge was made by A. T. Lobanov, chief of the electrical depart- ment of the Ivanovo power station. Mystery Deepens As Boat Is Found Deserted at Sea By the Associated Press. SAN PEDRO, Calif., April 14— ‘The mystery of a deserted black schooner drifting far off the lower California Coast grew yesterday when Capt. Thomas Greb, who said he boarded the derelict. re- ported that its master appare:tly had been Chadwick C. Pendleton of Los Angeles and Alaska. Although the schooner bore no name, it was learned it cleared the San Pedro Light last March 12. Greb said he could not de- termine whether Pendleton was dead or stranded on the Lower California Coast. Greb said he sighted the 25- foot craft April 9 from his boat, 55 miles off Point San Lazara. Sails were furled, Greb said. There was not a soul aboard the craft, but everything was ship shape. He searched for traces of violence, but found none. The last entry in the ship’s log was dated March 30. WILL STRESS GOLD IN PARLEYS HERE U. S. Gives Subject Primary Importance in Trade Conversations. By the Associated Press. The early restoration of a free inter- netional gold standard will be em- phasized by the United States as of primary importance in the forthcoming Lobanov also is a defendant in this tri 1al. “md"u“lmn'_‘!:e ‘;‘u tb;?;zm hlgmc‘fnhis woceedings for rs e when &itn&l told of the $2,500 bribe. Loba- nov said he had entertained anti-Soviet jdeas and that he had complained to Nordwell about the low living standards in this country. Quotes Engineer. 8 ou t to improve your condi- uun,"};u m Nordwell told him, “you must act now. You must cause impor- tant damage so that Russia will have to spend more gold. Above all, you must be sure thlt".hh power plant is lyzed in case of war.” e gt o i detail, but Nord = of it. S Russian with a pronouncsd accent, the blond Eng] stood shoulder to shoulder with his accuser in-front the 3 L e e | e Ml“ml@ war,” Nordwell said; or El‘):'htmsteflmmlthlt!ur Lobanov in the eye as he another story, Nordwell Lobanov paid him 500 rubles, which he turned over to the owner of the coat. cealing a defect in machinery installed by Thornton's company. Advanced as Loan. Thornton then was called upon to stand in the ' box. He ad- mitted giving money to Dolgov, but declared it was given as a loan. He said Dolgov requested it in order to buy an apartment for himself and promised to return the money. Allan Monkhouse, chief of the Met- ropolitan-Vickers staff in Russia and one of the defendants, then was called to testify. He insisted Thornton gave the money as a loan. He added: “Dol- gov_never returned it and we wrote it off finally as a gift.” Both Thornton and MacDonald, the only one of the Englishmen who pleaded gulity to the charges, asserted yesterday that confessions were obtained from them against their will. Thornton said he had obtained information in Russia which was merely essential to his com- pany because of its investments. Dolgov, a 30-year-old Russian official, precipitated the investigation of the British company by immediately turn- ing over money he received from Thorn- ton to the Ogpu (secret police). He made a good impression as a witness with his direct, unhesitating answers. Didn’t Ask for Money. He was dressed in a shiny blue suit and white shirt. He was clean-shaved, sandy-haired, of medium height, broad- shouldered and with sharp blue eyes. The first witness, aside from the ac- cused, to testify in the trial, Golgov de- clared, feelingly: “Comrade Prosecutor, I am a Soviet engineer and do not ask foreigners for money.” Prosecutor Andrey Y. Vishinsky pressed him for en explanation. “The Metropolitan-Vickers equipment was not always in good condition and, 4n my opinion, the money was given me as a bribe,” he said. “I never asked for 1% because I do not need money.” He said his salary was 550 rubles (about $275) monthly and his wife’s, 196 rubles (about $95). ‘Thornton had signed was “useless to deny” when it was obtained from him by the Rus- sian police. During his testimony ye: terday the audience laughed when ~(Continued on Page 2, Column 2) INSULL REPORTED LIVING “LIKE A KING” IN GREECE Chicago Official, Returning From Abroad, Does Not Believe Utility Man Is ‘“Broke.” By the Associated Press. NEW YORK, April 14—Samuel In- sull, wanted in Chicago to answer in- dictments resulting from the collapse of his “utilities empire,” was said yes- terday by Andrew Vlachos, assisiant district attorney of Cook County, Il to be living in Greece “like a king.” The Illinois official, who returned from abroad on the liner Saturnia, went to Greece last Fall to aa in arguing the petition for Insull’s extradition. He sald he did not believe the Chi- cago utility mar was “broke.” He charged the decision of the Court of Appeals in Athens in refusing to extradite Insull was a violation of the extradition treaty between Greece and the United States. Vlac! xpressed the belief Insull fwill remain in Greece, use his m port has been revoked ‘and no er nation wants him.” spokes. had | men, accepted invitations to exchange sald the confession he| — ‘Washington conversations, to which virtually all of the 11 picked nations vited have agreed to send outstand- ing statesmen. Particularly will this aspect of world economic recovery be stressed in the first conversations—those between Presi- dent Roosevelt and Prime Minister Ramsay MacDonald of Great Britain. Britain's departure from the gold stand- ard in 1931 was felt keenly by the United States. Acceptances Received. New evidence of the importance which America’s fellow nations attach to the proposed discussions here was given yesterday as new acceptances were re- celyed at, the State Department, and the line of world-famous figures who "“Bfazi, Chile and Mexico have accepted, while Argentina, only nation not heard from, was expected to reply soon. In addition, Czechoslovakia and Ru- mania of Central Europe’s “little en- tente,” although not among the 11 powers invited to send special - views through regular diplomatic chan- nels on the subjects to be taken up at the World Economic Conference in London about June 15. Placed Above Tariff. One of the envoys visif the State Department' said the eyes many na- tions would be centered on the Mac- Donald-Roosevelt conversations because of the vital importance of monetary stabilization and the potentially con- structive part the United States and Great Britain, with their far-flung in- terests, can take toward restoring a free-gold standard. This monetary question was empha- | sized as of even more importance than | the question of tariffs. One official said that while exchanges fluctuate it (Continued on Page 2, Column 5.) PLANS TO STOP HOARDING OF GOLD BEING HELD UP| Definite Program Will Not Be Adopted Until Time Limit for Metal’s Return April 28. | | By the Associated Press. Plans for proceeding against gold hoarders will be difficult to prepare un- til after April 28 when the time limit | fixed by President Roosevelt for return of gold expires, according to Attorney General Cummings. “Until we know what the problem ; is, it is difficult to prepare detalled | plans,” the Attorney General said. “Maybe there will be no necessity for action.” The President has ordered gold and gold certificates in amounts above $100 returned to the Treasury before April 28. S~ D Italian Flyer in India. CALCUTTA, India, April 14 (#)— | L. Robiano, Italian pilot who is flying | from Lympne, England, to Australia, ar- rived here this afternoon after a non- stop flight from Karachi through a heavy rain. You Are the Boss. Local retailers are governed in their advertising and their selling by -what YOU want— YOU, the reader—YOU, the consumer. Merchants can make money only when they please their customers, and their advertis- ing in The Star consistently attempts to reflect this spirit | of service on their part. Yesterday’s Advertising. (Local Display) Lines. The Evening Star.. 60, 922 2d Newspaper 15,676 3d Newspaper..... 14,975 ;uhudmrw-;muwnmnmokm program ve | could not be used immediately to cope | Che Zn WASHINGTON, WITH SUNDAY MORNING EDITION ening “From Press to Home Within an Hour" The Star's Carrler system covers every city block and the regul delivered to city and subu as fast as the papers are printed, y's Circulation, 121,6 !S ® Yesterds urban homes D. €., FRIDAY, APRIL 14, 1933—FORTY-EIGHT PAGES. P (P Means Associated Press. TWO CENTS. ROOSEVELT T0 ACT 10 UPHOLD WAGES AND PROVIDE JOBS Huge Bond Issue for Public Works Urged by Leaders of Labor. MINIMUM SCALE OF PAY REGARDED AS FEASIBLE Conference at White House Extends Beyond Scope of Organized Workers. A d:uble-bladed attack on deflation will be made soon by President Roose- velt with moves to preserve wage scales and provide new jobs. The President listened sympathetically last night to proposals of American labcr for a huge public works construc- tion program, involving a bond issue of four to six billions, and including a minimum wage clause in the prospective sherter-work week legislation. Besides considering these propositions, Mr. Roosevelt is looking hopefully to his recommendations now before Congress to ease the debt burden on agriculture and small home owners as forward steps in the reconstruction program, now aimed more definitely at checking defla- ticn. Believes Law “Feasible.” The President has virtually compieted a plan for a bond issue of several bil- lions to finance new public construction. He was represented last night as ready to consider a Federal minimum wage scale in the impending legislation to spread wcrk by shorter hours. Miss Frances Perkins, Secretary of Labor, who accompanied the labor group to the White House, s2id later she be- lieved a Federal minimum wage law | “feasible.” Secretary Perkins, at her press con- ference today, said adoption either by the Federal or State governments of minimum wage scale laws would bz a forward step of “extreme importance” in pulling the country out of the eco- nomic depression. She also:announced that as the result of her work on drafting an employment for Mr. Roosevelt, it was pos- sible to start a two to three billion- dollar public works program within five months. The cabinet official said she had sub- Labor tted a suggestion to the House &m&. on the steps the Faderal Government should take in regulgti wages. She declined to discuss recommendat explaining that com- mittee members had requested it be submitted in a confidential form. Not “Monumental Type.” gratification of the New York and Utah minimum I Bhe expressed steps taken by the Legislatures in regulating wage scales for women. As to the huge public works program, Miss Per] outlines a wide range of Federal, State and municipal projects which she described as “not of the monumental type.” She emphasized that much Federal, State and local leg- islation and authorization would he necessary to put in under way. Miss Perkins listed water works, grade | at the head of the possibilities, but also stressed slum clearance and the build- ing of low-cost homes. She said the important thing “is to distribute the work to places where there are pools of unemployment.” “Pederal public works, many of them in sparsely settled places,” she ex- plained, “do not drain the unemploy- ment pools. Low-cost housing has al- ways proven not only a self-liquidating but a paying proposition.” ‘The woman cabinet officer said she had been deluged with plans from all sections of the country to aid her in formulating recommendations for pub- lic works and other economic programs Six Major Plans. The six major plans were outlined by her as follows: 1. A recommendation that the Fed- eral Government take over all indus- tries. 2. Granting of Federal subsidies to private industries for the purpose of obtaining realignment of employment and the limitations of profit, at least for the period of the emergency. 3. Setting up of industrial boards to take over temporarily and act as arbi- trators between industries. 4. Suggestions, based on the perma- nent future of the United States, of combmhing agriculture and labor. In commenting on these suggestions she sald they were “too far-reaching” and with the depression. 5. Variety of public works. 6. Barter plans. General Stimulant. Miss Perkins said the relief plans must be attacked along many fronts, closing in from a variety of different points. ‘The special value of a public works program, she said, lay in the fact that it utilized brick, concrete, steel and such materials known as “capital| goods” and prompted the purchase of food and clothing of the type known as ‘“consumers’ goods,” at the same time giving work to the contractors in (Continue Pag: Column 8.) FIVE DIE IN FLAMES IN_VIRGINIA VILLAGE Two Firemen Also Overcome by Smoke in Buchanan’s Gen- eral Store Fire. By the Associated Press. ROANOKE, Va, April 14.—A family of five lost their lives and two firemen were overcome by smoke when W. E. Garland's general store at Buchanan burned early today. ‘The dead are Mr. and Mrs. Roy Lay- man, their son, about 16 years old; a daughter, about 14, and a baby. 4th Newspaper..... 4,374 5th Newspaper 2,438 To‘al (Four other newspapers) 37,463 : Woman Flyer Forced Down. KARACHI, India, April 14 (#).—Miss Jean 23 The Star is being read this evening in more than one hun- dred thousand homes of people who are interested in Easter shopping. , —_— REYNOLDS HEARING WAITS | Guardians for 2-Year-0ld Daughter Seek Estate Share for Her. TROY, N. C., April 14 (#).—A hear- ing on efforts of gvardians to obtain for 2-year-old Anne Jannon olds a shate of the estate of her father, ioduy wia' posiponed. unti - the held . WAS un e week of J{me 24 and will be held in Concord, N. C. . 4 crossing elimination and road building P SENATE TEST DUE ON INFLATION PLAN Frazier to Offer Substitute Farm Mortgage Plan for Direct Vote. By the Associated Press. A direct test vote on inflation im- pended in the Senate today as mem- bers resumed consideration of the sweeping administration farm pro- gram, with its varied machinery for lifting prices to 1909-1914 levels and refinancing agricultural debts. As a substitute for the Roosevelt mortgage plan, Senator Frazier, Re- publican, of North Dakota planned to offer his bill to refinance farm debts at 11, per cent interest and yearly payment of 1}, per cent on the princi- pal, employing broad inflation to-sayer the financing. Frazier's proposal provides for issu- ing bonds sufficient to meet the esti- mated $8,500,000,000 in farm indebtedness, with the if these bonds are not be converted into currency. Currency inflation was recommended to the Senate by the unanimous vote of its Agriculture.Committee as the main hope for “permanent and substantial” rellef for agriculture. Proponents, however, feat of the plan. New Pitfalls Faced. A maze of amendments set new pit- falls for the once-beaten administra- tion forces as the Senate moved steadily toward a final vote on the farm relief rogram. With Republican sniping becoming more active and Western Democrats breaking ranks, party leaders faced tests in voting on the amendments which included a Republican substitute for the Roosevelt price-lifting plan and the inflationary proposals. The next section coming up in the Senate was the mortgage refinancing part of the program. This section, con- sidered separately, rode high and wide through the House yesterday on a 387- to-12 vote. The House now has voted separately on the Roosevelt farm price-lifting and mortgage refinancing pians and now Is aligning its forces to down the produc- tion cost plan when it returns to them expected de- jas a Senate change in the price-lifting bill. The Senate is considering both as one measure. The Simpson-Norris plan went in on a 47-to-41 vote—the admin- istration’s first setback. After the Senate has had a final vote on the entire program, it must go back to the House for concurrence in amepd- ;nenu t;ndmnhhldmtehn that efforts '&ll e made 0] e program to ad- ministration wishes. P - The Simpson-Norris plan would au- thorize the Secretary of Agriculture to (Continued on Page 5, Column 2.) SOCIALISTS A.ID DELADIER French Premier’s Strengthened by Favorable Vote. PARIS, April 14 (#)—Premier Dala- dier’s authority was strengthened today by Socialist approval of the 1933 bud- get. Except in 1925, the Socialists al- ways have abstained from voting favor- ably on budgets because of their oppo- sition to military credits. Authority Is| This is the sizth of a series of articles on the efiect of proposed ro- ductions in the pending District appropriation bill. An {ll-balanced highway program, the loss of jobs by men needed in highway work and the construction of highways not properly tested as to their fitness for strenuous modern-day traffic needs are some of the realities enacts the District appropriations bill as it left the House. Taking up the question of the loss of jobs first, the appropriation for sal- aries of the regular force of the de- partment has been arbitrarily reduced $9,000 below the amount used to carry it the present year, even though this year's figures are based on carrying on without filling a few vacancies which occurred last year. This amount is a cut over and above the cuts made by the 15 per cent salary reduction, which face the District if Congress | SUPPLY BILL PASSED BY HOUSIi SERIOUS SETBACK FOR HIGHWAYS ‘District to Have Ill-Balanced Program, More Idle Men and End of Tests If Congress passes Measure. item of salaries of officials of the highway testing laboratory. There are four men who give all of their time in the laboratory and two more who split their work approximately between | the laboratory and field or office work | elsewhere in the department. In addition to this, the reduction in items for curb and gutter work, | maintenance, replacement and repairs will mean that a now undetermined number of additional men, who are carried out of funds specifically appro- prltated under these heads, must be let out. ! The curb .and tter appropriation is sliced from $290,000 (the figure in the conference report, which almost became law at the last regular ses- sion of c«mxlr;.ldl) to $175,000. The T it resurfacing ' item is cut from $550,000 to $375,000 and the repairs ftem from $835,000 to $500,000. The Highway Department regards the last item as the most important. As now conducted, the department re- gards its primary duty to keep what it has in repair, and it is felt that this will be an imppssibility under the $£00,000 allotment. Rather than allow needed re) STATUS OF LONG CHARGES PROBED cide if Ouster Petition Is “Privileged.” By the Associated Press. The Senate today referred to its Judiclary Committee the question whether charges contained in a peti- | tion of Louisiana citizens seeking the ousting of Senator Long of that State were “privileged” for publication. | Senator Long, Louisiana Democrat, | who said the charges presented to the Senate yesterday were so much “clap- trap,” contended the petition, like all others sent the Senate and referred to committees, was privileged and news- papers publishing it could not be sued, but that the matter should be deter- mined by the Judiciary Committee. Sent Robinson of Arkansas, the Democratic ieader, suggested it was a proper question to be determined and (Continued on Page 2, Column 4.) Blind Man Gains Freedom. OAKLAND, Calif., April 14 (P).— After 24 hours' deliberation, the jury in the murder trial of Manuel Licon, blind ‘man, charged with slaying his sightless friend, Joseph Parker, was dismissed because of failure to agree. Licon allegedly stabbed Parker in a quarrel over the affections of a woman. PRESIDENT PLANS TRIP ON YACHT AS SOON AS CONGRESS ADJOURNS| Roosevelt to Be Accompanied by Three Sons on Cruise Along New England Coast. President Roosevelt plans to leav: Washington as soon as the special ses- sion of Congress ends for a week or 10 days of cruising aboard a sailing yacht off the New England coast. In announcing this at the White House today, it was said the President ally selected for the cruise by James Roosevelt, the eldest of the Roosevelt sons, who is living in Boston. The yacht was launched in 1931 and is a sturdy sea-going craft, having taken part in a yacht race to England on its first voyage, finishing fifth. The yacht has just been refitted at a shipyard in Salem, Mass., a few miles from Marble- has arranged to use a 45-foot sailing | head. yacht named Amberjack II, owned by Paul D. Rust, jr. The yacht is kept at Marblehead, Mass. The President expects most of his family will ac- company him. ‘The cruise will be from Marblehead up the coast to Campobello, the New Brunswick Summer home of the Presi- dent’s mother, Mrs. James Roosevelt. It was at this place that the President spent many happy Summers as a young man and there he learned to sail boats and acquired his great love for the water. From present indications, the Presi- dent_hopes to leave for the trip about the last week in June. According to the White House infor- mation, the Amberrx II was person- Mr. Roosevelt himself will act as the uklpger on this pleasure cruise, and for his crew he will have three of his four sons—James, Franklin D., jr., and John A. Roosevelt—and George K. Briggs, Marblehead yachtsman. This was the same crew the President had with him when he sailed up the New England coast last Summer following the Chicago convention in the yacht h. After the cruise, it is thought the President will make preparations to leave Washington within several weeks for his ancestral home at Hyde Park, N. Y., where he will set up a Summer White House and remain until Fall. In the interim the President contemplates a few breaks in his Summer’s work by taking brief excursions, principally on the water, |Judiciary Committee to De-| | them Mr. AGREE ON 2-CENT LOCAL MAIL RATE Post Office Officials and House Leaders Confer With Roosevelt. House leaders and Post Office officials | agreed at a conference with President | Roosevelt today on a reduction in local letter postage to 2 cents, with au- | thority for the President to raise or | lower the postal rates generally. Chairman Doughton of the Hcuse | Ways and Means Committee and Post- | master General Farley headed the delegation consulting with the President. Arrangements were made for immediate introduction of the new postal legisla- tion. The “drop” letters are those which are delivgred within a city in which they are mailed or within the post of- fice district in which they are posted. External Scale Same. ‘The present 3-cent rate would bej maintained for letters going out of a city of origin. Chairman Mead of the House Post Office Committee, Representative Ragon | of Arkansas, a member of the Ways and Means Committee: Joseph C. O'Maho- ney, First Assistant Postmaster General, and Director Douglas of the Budget | were the others attending the meeting. “It is our hope” explained O'Mahoney, “that the lower rates will increase busi- ness and stimulate revenues. Anyway we are going to try it for the period of a year with provision for the President to raise rates or lower them further if | necessary.” It is likely the postal Jegislation will | be combined with the proposed bill to continue the Federal gasoline tax for | another year. “Reduction for All U. S. Aim.” “All users of the mail will recognise | the fact that if this reduction should actually result in increased revenue for | the Post Office Department, the Presi- dent will then have ample ground upon which to direct the restoration of the | 2-cent postage rate for all first-class mail,” the Postmaster General said yes- terday in announcing the cut in the local rate we contemplated. The three-cent postage rate has been a bone of contention ever since it went into effect for a two-year period last July. Congressional opponents, among Mead, have insisted that it was driving away business. Post- master General Brown, Farley's prede- cessor, who did not' favor the rate except as an emergency measure, in- sisted, -however, that despite any loss ot volume it might be causing, it was producing approximately $100,000,000 more than the department would get under the two-cent rate, with business conditions as they are Six Killed by Lightning. CALCUTTA, India, April 14 (#).— Six persons were killed by lightning to- day and several others were injured during a storm which swept eastern and northern Bengal and Assam. Train and communication services were dis- orga; & de to go begging. and thus | Another $12,000 is.cut off in the (Continued on Page 5, Column 5.) CIVIC BODIES PLEAD OF BUDGET [TENS Last-Minute Appeals Vital Funds Made to Senate Group. for $5,700,000 LUMP SUM IS DECLARED UNFAIR Cottrell of Trade Board and Others Ask for Increase Federal Share. in Pleas for restoration of the more es- sential items cut from the revised 1934 District bill, and against holding the Federal share down to the Budget Bu- reau figure of $5,700,000, were made to the District Subcommittee of the Sen- ate Appropriations Committee today by spokesmen for local civic groups. As the executive hearings drew to a close more than a score of representa- tives of city-wide organizations and neighborhood associations were on hand to make last minute appeals to the sub- committee to put back in the bill funds the lack of which they believe would seriously impair important activities, particularly the school system, branch libraries and public health functions. Cettrell Makes Plea. Speaking for the Washington Board of Trade, Robert J. Cottrell, executive secretary of the board, urged the sub- committee to restore items that had been agreed to by House and Senate conferees on the original bill, which failed to go through in the closing hours of the old Congress. He also emphasized that the Federal contribution toward the National Capi- tal had already been sharply reduced to meet the general demand for Federal economy in the current appropriation act and that it would be taking more than its share of the retrenchment if it is cut down to the new low level carried in the House bill. Cottrell fur- ther requested that the Commissioners be allowed to adjust the District tax levy so as to ease the local tax burden to whatever extent is possible after the | appropriation bill has been enacted. In his plea against the $5,700,000 lump sum, Cottrell showed how the pruning knife has already been deeply applied to Uncle Sam's share of Na- tional Capital upkeep in recent years, first by departing from the substantive law establishing 40 per cent as the Federal share, and more recently by re- ducing the amount payable under the lump sum practice. He emphasized that last year this lump sum was cut from $9,500,000 to $7,775,000 and that now the Budget Bureau and the House want it further cut to $5,700,000. ‘Water Rate Cut Asked. George E. Sullivan, chzirman of the Law and Legislation Committee of the Federation of Citizens’ Assoclatios f | to “insist upon some appre | reasonabieness in the matter of the Pederal contribution.” Another ‘important recommendation he made was that water rates be res duced 20 per cent to give water con- sumers the benefit of the surplus which is expected to accrue from wster rents under the curtailed appropriation bill. The original District bill, which fail- ed on March 4, had been worked out in conference to a total of $36,291,647 of regular annual appropriations, with a compromise Federal contribution of $7,600,000. As submitted to the new Congress and passed by the House, the bill now cont2ins only $31,967442 of general appropriations and a Federal contribution of only $5,700,000. Discussing the probability of a surplus of approximately $6,000,000, not count- ing the beer tax, Mr. Sullivan pointed out to the Senate committee that the suggested reduction of the real estate tax rate from $1.70 to $1.50 would re- duce the general surplus by only about $2,600,000, according to and leave a remaining surplus of $3,- 500,000. Mr. Sullivan also reminded the committee that the District several years ago was required to spend a large | sum of money acquiring land for the | municipal center development, whici he argued wes primarily intended to | beautify the Nation's Capital and which is not expected to progress for many ! years |” Referring_to the Federal contribus | tion, Mr. Sullivan said the Federal Government apparently is “making no attemp to pay its fair share toward the (Continued on Page 5, Column 1.) HOLDS MANY PREFER WEAK GOVERNMENT { { | | SEIR S Municipal Research Bureau Direc- tor Addresses American Politi- cal Science Asscciation. By the Associated Press. NEW YORK, April 14—Willlam C. Beyer, director of the Bureau of Mu- nicipal Research of Philadelphia, told the Northeastern group of the American Political Science Association today that many business men prefer to have gov- ernment weak, inefficient and even dis- honest. He asserted it is a mistake to think any reforms other than mere cost slash- ing would come out of what he called the “virtual dictatorship” of bankers in New York, Chicago, Philadelphia and Detroit. “When one considers the extent to which business men have bought favors from politicians and men in public of- fice,” he said, “one may even doubt that all business men want honest govern- ment. ¢ ¢ ¢ “It is not to be assumed offhand that bankers, because they are business men, | will use their new power in city govern- ment to make it better.” Prof. Joseph McGoldrick of the de- partment of public law at Columbia University, said in another address that he considered New York City’s financial condition now to be “worse than ever.” He asserted that unless proper meas- ures are taken soon the deficit may be as high as $250,000,000 by the end of the year. LOANS MADE TO STATES R. F. C. Approves $3,625,000 for Relief in Illinois. ‘The Reconstruction Pinance Corpora- :lon today granted relief loans as fol- ows: Illinois, $3,625,000 for use in Cook County and 44 down-State countles from April 16 to April 30; Nevada, $54,065 for use in two counties during April and five counties during May; Louisiana, $597,621 for use during May, ;ad Arizona $196,135 for use during y. FOR RESTORATION | I7 MAJOR CHANGES LISTED IN PROGRAM OF REORGANIZATION Roosevelt Expected to Issue Order Early Next Week Effecting Transfers. |PLAN.WILL ROUND OUT . REDUCTICNS IN BUDGET Interior and Commerce Depart- ments to Bear Brunt of Trans- fers and Deletions. President Roosevelt is expected to issue early next week an executive order calling for a complete reorganization of all departments and many inde- pendent agencies of the Government. The President is known to be study- ing the reorganization plans submitted to him this week by his economy ad- visers, Secretary of Commerce Roper and Director of the Budget Douglas, and it was learned from sources close to Mr. Roosevelt it is his intention to make but few changes in his advisers draft. It was said today in Democratic circles that the report contains at least 17 major recommendations for trans- ferring and consolidating of important agencies. Roper and Douglas are known to be the administration’s ranking reorgani- zation authorities and wery the task prior to March 4.e e;l%::gefl!‘-h:g they have been assisted materially by members of the President’s cabinet and members of Congress. Roper informed newspaper men on Wednesday he ex- pected the President to take imme- diate action on the report. Changes Recommended. It was reported authoritatively toda; the advisors had reccmmended lyhe ffll{ lowing major changes in the present structure of the Government: 1. Creation of a transportation agency in the Commerce Department. 2. Reshaping the administrative plans of the Interior Department into two divisions of natural resources and. pub- lic construction, and publfio:eum. reorganiza of the sential aciivities. ang seviion bo"sta: Te l!l:le::l service. 5 . Consolidation of overla) ~ re;\u in the Agriculture s . W out of non-essential ac- tivities in the State, War, , Ju tice and Post Ofce D ferred to this a,eucy. 7. Transfer of the Interstate Come firfi Commission’s Bureaus of . Sta- 8. Transfer of the A De- partment’s Forest Service and Bureau of Public Roads to the Interior Depart- ment. The latter bureau is slated to have a liaison connection with the Commerce Department’s transportation agency. 9. Transfer of the Treas ment’s Public Health &%m Interior Department. 10. of Government wel- fare institutions, mm. Elizabeth’s, en’s and r Hospitals 3nd Columbia Institute for the Deaf into the Welfare Division of the In- the auditor, | terlor Interior Dej 3 12. Consolidation of _the Federal Board for Vocational Education and the Interior Department’s Office of Education and to place it in the Wel- farethvmon of the Interior Depart- ment. 13. Regrouping of the Bureaus of Geodetic Survey, Navigation-Steamboat macn&, Lighthouses ln({).:cmmuclcs erce £ e . nsfer of Naval Observa- tory, Shipping Board, Agriculture De- partment’s’ Weather Bureau, National Aflvwg Committee for Aeronautics, g’lr d tmednti“l‘ él’umd Waterways rpora an of Northe: and Northwestern l&k‘:‘,’elynd the 'I'Opo-m graphical Mapping and Map Reproduc- tion Section of the Interior Depart- g::ncts Oseolonnc;ll stu.—vey to the Com- e ent’s Tr: Ay 'pal ansportation 15. Abolition of the Commerce De- partment’s foreign trade promotion of- fices and the transfer of this activity to the consular service of the State De- partment. Restores Old Bureaus. 16 ‘Transfer of the Federal Radio Commission, the dutles of the Inter- state Commerce Commission relating to communications, the cable functions of the State Department and the Post- master General's telegram rate-making functions to the Commerce Depart- ment’s transportation agency. 17. Consolidation of the Treasury De- alrtme"h wx;t';rg}l:lr:mj of Blndultrhl Alcohal v ion Bureau of - uc';h Department. e e proposed reorganization of the Interior Department will probably take back into its fold two of its old bu- reaus—Mines and Forest Service. The latter was pulled away from this de- partment by Gifford Pinchot ef Penn- sylvania when he was chief forester in (Centinued on Page 2, Columy 1.) STATE-WIDE FARM SALES STRIKE VOTED BY MAY 13 National Holiday Association to Join in Wisconsin Co-operative Milk Pool Action. By the Assoclated Press. ), Wis., April 14.—Di- isconsin bran MARSHFIELD, rectors of the Wi National Radio gmm on Page 2(