Evening Star Newspaper, June 4, 1933, Page 4

A4 ROOSEVELT NAMES Two College Presidents on Board to Direct Tennes- see Project. By the Associated Press. President Roosevelt has named two college presidents on his three-man board to be known as the Tennessee alley Authority, charged with bring- ntc reality his dream of the de- ent of that valley and the huge Muscle Shoals properties. In addition to Arthur E. Morgan, wnt of Antioch College, who will the board, the President yester- day rounded it out by naming Harcourt E. Morgan, president of the University of Tennessee, and David E. Lilienthal of Wisconsin. ‘The three men named will have wide powers in directing the development | work, including reforestation and soil erosion prevention, as well as the re- habilitai of the Muscle Shoals power and fertilizer possibilities. Noted Civil Engineer. ‘The Morgan who will head the Ten- nessee Valley Authority has had wide practice as a civil engineer. He has THE SUNDAY MORGAN TAX FURORE RECALLS PAST APPEALS FOR REFORMS VA“-EY A”IHURIIY Hoover, Mellon and Many Other Leaders Wanted to Change Income Law, but Congress Failed to Act. BY JAMES WALDO FAWCETT. ‘The furore created by disclosi that the Morgan tners no M- come taxes in 1931 and 1932, charging off their losses of capita: ussets, re- {calls past efforts of former President Hoover, former Secretary of the Treas- ury Mellon and other leaders to secure escapes from income tax payments. The fault in the income tax law |now being indicted with such indi i |tion, has long been obvious, but Con- gress has failed to remedy it until the I significance of testimony offered in the |M1t€h¢ll case in New York, and the Morgan hearings in Washington really awakened public opinion. It is difficult stand why there should be such a vio- {lent storm as that currently raging about a matter in which the public frevlously has refused to be interested. t réquired dramatization by J. P. Mor- gan Co. to_awaken any interest. Under the Civil War income tax law of 1861-1872 there appears to have Ibeen no consideration of capital gains | ed and superintended construction of 75 different water control projects. Before taking over his dutles 88 yjth the enactment of the Sixteenth | ness.” president of Antioch Oollege he was! once in charge of the designing and | reclamation works In Southern States, planned the $8,000,000 reclamation | project for the St. Francis Valley, Ar and did extensive work to prevent a recurrence of the Dayton flood and in | protecting Pueblo, Colo., against floods. | The second Morgan named to board, president of the University of | ‘Tennessee, has been listed as a pioneer | in aiding agriculture and spreading in- | dustrial knowledge through Tennessee. | Dr. Morgan, now 66 years old, is an | advocate of part-time industrial em- ployment, with workers supplementing their incomes by living or working on mearby farms. He has furnished ad- ministration officials here with data on his experiments along this line at Kingsport, Tenn., an industrial city in the eastern part of the tSate. Other Appointments. ‘The President alSo sent to the Sen- ate yene?ty the following other ap- poini : Clyde O. Eastus to succeed C. W. Johnstan, jr.. as United States attor- ney for the Northern District of Texas. William Stanley of Maryland to suc- ceed John Lord O'Brian as Assistant Attorney General in charge of anti- trust law enforcement. Louis Fitz- Fitzhenry of Illinois to succeed George IT. Page, retired, as judge of the Sev- enth Circuit Court. Carl L. Sackett to succeed A. D. Walton, resigned, as United States attorney for the Wyo- miln‘; district. leanwhile, the Senate confirmed George F. Zook of Ohio as commis- sloner of education, after confirming earlier Thomas Hewes of Connecticut 88 Assistant Secretary of the Treasury. FLAG DAY RITES ARRANGED JUNE 14 lvan Theater Program Sponsored by @ A R and Woman's g and losses. Income of all kinds was | taxed. The law of 1894 was declared unconstitutional. Therefore, it was Amendment, ratified by the States andi declared in effect on February 25, 1913, that serious consideration of the prob- lem may be sald to have begun. ‘The new law read in part as follow. “Net income shall include gains, pro its and incomes derived from salaries, wages or compensation for personal services of whatever kind, and in whatever form paid, or from profe: sions, vocations, businesses, trade, col merce or sales or dealings in property, | whether real or personal, growing out | of the ownership or use of or interest in real or personal property; also from interest, rents, dividends, securities or the transaction of any lawful busi- ness carried on for gain or profit, or ,ltnl or profits and income derived | rom any source whatever, including the income from, but not the value of, property acquired by gift, bequest, de- vise or descent.” Policy Remains Unchanged. Dr. Edward E. Pratt, writing in the | Encyclopedia Americana says: “The | term income in this connection is con- | fined to actual money income. The general view is that income is regular | and periodic and that irregular returns in the shape of inheritance should be reached by the inheritance tax. Profits | from transactions in stocks and real | estate are included only when realized. | A clear distinction seems to be made between gross and net income.” According to this interpretation, in- come from successful speculation in the stock market was taxed. It was a form of earnings, and therefore was amen- able to the provisions of the law. But tacitly, if not formally, losses in specu- lation were admitted to the account. The law, then, was defective in that regard. It was entirely legal to charge off capital losses. During the two decades since the en- actment of the first regulations nu- merous and various amendments to the law have been made and unmade. But the philosophy of the Government did not change in any remarkable degree. Congress continued to think of taxable income as net income. In other words, it took notice of the fact that an indi- vidual may lose in trading in stocks or bonds a sum equal to or in excess of all that he may earn by the exercise of his regular vocation. The term “net in- come” meant “gross income less speci- fled deductions,” and the term “gross income” meant “gains, profits, and in- come derived from salaries, wages, or compensation for personal service, of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales or dealings in property, whether real or personal, growing out of the ownership or use of interest in such property; also e |from ihterest, rent, dividends, securi- ties, or the transaction of any business carried on for gain or profit, or gains or profits and incomes derived from any "= | source whatever.” CAR HITS STAR WRITER Fames Waldo Fawcett Treated for Cuts and Bruises. James Waldo Fawcett, of the edi- al staff of The Star, was treated at ergency Hospital yesterday for lacer- ations of the head and other cuts and bruises, sustained when he was struck by a taxicab in front of the Post Office Department at Twelfth street and Penn- sylvania avenue. He was on his way to interview a Government officlal when injured. The cab was driven by James B. ‘Walker, jr., colored, 29, of 1215 Harvard street, according to police. Walker was not held. Rendered unconscious by the impact, Fawcett was taken to the hos- pital in the automobile of Alfred G. Massey, 1220 Pleasant street southeast. Last night hospital attendants said the writer’s condition was favorable. Fawcett is widely known among philatelists for his feature column on stamp collecting in The Sunday Star. OPERA TO BE GIVEN @irls’ Friendly Society of Epiph- any to Perform. The Girly' Friendly Society of the Ehurch of the Epiphany will present an ppera, “The Sleeping Beauty,” tomorrow @t 8 pm. in the parish hall of the thurch, 1317 G street. | The opera was wriiten and will be oduced under the direction of Mrs. . Umbholts, 313 East Capitol street. SENATE MAY ACT TO CHECK POWER OF BIG BUSINESS (Continued From First Page.) connection with thelr returns, as was roposed by Pecors. The only important evidence which the committee has so far voted to ex- clude was a portion of the firm’s part- tership agreement showing the division of profits. Members of the committee said yes- terday this showed a graduated di- ¥ision based upon seniority invest- ents and importance of the members, Pegioning with about 24 per cent for §. P. Morgan, the senior partner, and ning down to as low as 1 per cent ‘:nche newer members. ‘When the partnership was reformed | 1916, Morgan put up half the capital ::d ‘was given 25 per cent of the profits and losses. His interest has varied plightly since, as the membership list shanged. Pecora announced vesterday that with the completion of the Morgan inguiry early this week, he would be ready to | the investigation of Kuhn, Loeb . the following week, or defer it ‘The revenue act of 1924 was sup- posed to ‘“constitute & complete re- statement of the income tax law.” Two years before its enactment Secretary Mellon had urged upon the Senate Finance Committee and the House Ways and Means Committee for “a new deal” with regard to investments of all kinds, He was concerned with the vast quantities of money “hidden” in tax-exempt securities and urged cur- tailing the number of these. Transactions Beyond Reach. He was no less perturbed by the un- written understanding whereby Stock Exchange transactions, plus and minus, remained beyond the eflective reach of | the revenue machinery of the Govern- ment. In his annual report for the year ended June 30, 1922, he said: “A most serious gap in the existing revenue laws arises from the treatment of capital transactions. The law taxes capital gains and recognizes capital losses, but the taxpayer retains the initiative and refrains from realizing taxable gains while taking deductible losses. “The situation is particularly serious under the revenue act of 1921, which limits the tax on capital gains to 12': | per cent, but puts no limit on the de- duction of capital losses. This means that capital losses may entirely cancel real income, while capital geins will not be realized at all, or, if realized, are taxed at only 121, per cent. “Under the present system the Gov- ernment is being whipsawed, and the Treasury, therefore, strongly urges that the existing provision as to clp“al‘ gains be made to apply conversely mi capital losses and that the amount by which the tax may be reduced on &c- count of losses from the sale of capital assets should not exceed 12'; per cent of the amount of the loss. 1 “This would, to a large extent, check‘ one of the methods widely used by tax- | payers at the present time for decreas- | ing_their yearly income. | “The mlternative is to refuse to recog- | nize either capital gains or losses for | income tax purposes, and if the pres- | ent situation were allowed to chllnuF, there is no doubt that it would save revenue to adopt this course. This is, in fact, the practice which has been followed in England for many years. Mills’ Bill- Shelved. Normally, it might be thought, such a plea might have brought corrective sction. In point of fact, there was a| move in that direction. Ogden Mills, | then a member of the House of Repre- sentatives, introduced H. R. 13413 in an attempt to secure amending legislation. There was a hearing before the Ways and Means Commitiee on January 8, 1923. But nothing came of it. Secretary Mellon returned to the subject in_his annual report for 1924. | He ‘said, “It has been the belief of the Treasury, and it is borne out by experi- ence, that, if taxes are too high. the source of Tevenue diminishes and the tax becomes less and less productive. If taxes are reduced, the source of tax- ation expands and the lower rate may be even more productive than the high- er rate and tge source of revenue as- sured for the future. * * * In 1922 + + + the maximum rate was reduced from 73 to 58 per cent, and the higher brackets recovered somewhat, the $100,- 000 class increasing its percentage from 287 to 4.18 per cent, and the $300,000 class from .78 to 171 per cent. This illustrates clearly the advisability of re- ducing the rates on the higher incomes so that more income proportionately until Fall, depending upon the desire of the committee. During the Summer, he said, he and his staff will make as thorough an in- Quiry as ble into investment trusts and exchange practices to be geady for hearings in the Fall may be available for taxation and the burden not have to be borne by the smaller incomes. “An even more striking example is the case of capital gains. Prior to 1922 these were taxed at the regular surtax 2 change in the law to prevent such | for some political observers to under- | | vantage to the Government that the | | the 1215 rates. In 1922 for the first time a flat rate of 12!, per cent was levied. Be- tween these two years the number of taxpavers with incomes in excess of $300,000 increased from 246 to 537, and of this number 165 would not have been | in that class except for the realization of capital gains “Prior to the insertion of the capital | gains section in the law, investments | did not chenee hands, property was tied | up, and the Government collected little | revenue from this source. | "“When the rate of tax was reduced to 12!, per cent, however, the Govern- ment opened up a vein of revenue which in that one year yielded over $31,000,000 in taxes. “It 1s quite obviously of as much ad- tax on capital gains be reduced as to | the taxpayer and to business. Most of all is the moderate taxpayer benefited by removing some of the load from him. The rate was such as permitted the trafic to move, and it did move, to everybody's advantage.” Views Given in Book. | Mr. Mellon's views were given further in a book, “Taxation, the People’s Busi- published in 1924 and containing some of his addresses and papers. In that volume he wrote: “I believe that it would be sounder taxation policy generally not to recognize either capital gain or capital loss for purposes of in- come tax. This is the policy adopted in practically all cther countries having income tax laws, but itshas not been the policy in the United States. In all prebability more revenue has been lost to the Government by permitting the deduction of capital losses than has been realized by including capital gains as income.” Specifically, the Becretary advocated limiting capital losses to 12% per cent, thus putting capital losses on all fours witn capital gains in income tax returns. But he favored this compromise only as a partial substitute for the more com- plete reform implied by his insistence theoretical income. He wanted the revenue philosophy of the Government to be simple enough for a child to un- derstand. Instead, he saw that “in order not to put all business and dealing in property in a straitjacket, page after page of exceptions must be written into the law. With so many doors to the house, the effort to close them all has given us the most intricate tax law in history.” But the agitation which he had sponsored did accomplish one gain— T cent limitation on de- ductions of capital losses was imposed, “thus establishing a symetrical system for the treatment of gains and losses.” Under this arrangement the Govern- ment was proportionately protected so long as the country remained prosper- ous, but, as Mr. Mellon very well under- stood, it was left unguarded when that prosperity was dissipated. The Morgan ners paid taxes in amount of $11,000,000 on their incomes for 1929. That was & boom year. When the slump occur they were legally entitled to charge their capital losses against their earned income, and they tock advantage of the privilege. What was sauce for the Government goose be- came sauce for the Morgan gander. Hoover Made Appeal. In an address on October 2, 1930, President Hoover told the American Bankers' Association Convention that “it is urged by many thoughtful citizens that the peculiar economic effect of the income tax on so-called capital gains at the present rate is to enhance specu- lative inflation and likewise impede b recovery. I believe this to be the case.” He returned to the subject in his next message to Congress, urging & special study of the problem. Coincidentally, as it happened, John J. Raskob, chairman of the Democratic National Committee, urged abolition of capital net gains taxation in % radio address. Others who suj d the same proposition included ators Couzens, who as early ‘as 1929 intro- duced an amendment to reduce the rate from 12 to 11 per cent; Blaine, Borah, Brookhart, Cutting, Frazier, Johnson, La Follette, McMaster, McNary, Nor- beck, Norris, Nye, Barkley, Black, Blease, Caraway, Harris, McKellar, Steck, Ste- phens and Thomas. But some’of these men voted against the tax-reduction resolution on final passage. The gen- eral plan for abolition of the whole cap- ital gains and losses provision was advo- cated by Senator Reed of Pennsylvania on numerous occasions. A gesture at the necessary reform was made in the revenue act of 1932, Prior to that date the loss from seciri- ties sold “might be deducted from net income even though the sale was for that purpose.” The law required only that the transaction be a bona-fide one, and that the same or practically identi- cal securities be not repurchased within 30 days, if the loss were to be deducted from income. ‘This 30-day provision still holds, but of securities to be deducted from net income “only to the extent of offsetting gains from other such sales, unless the securities have been held more than two years. In the latter case they are con- sidered capital assets, ducted.” HEADS JUNIOR CLASS Berwyn Girl Is Named at Fred- ericksburg College. Special Dispatch to The Star. Miss Betty Griffith, daughter of Dr. and Mrs. W. Allen Griffith of Berwyn, Md., has been named president of the junior class at State Teachers’ College, Fredericksburg, Va, for the session 1933-1934. Miss Griffith came to PFredericksburg last year, having completed her pre- paratory work at Hannah Moore Acad- emy, Reisterstown, Md. She is special- izing in physical education and in line with that work has taken an active part in interclass athletics. Bank offers the INDIVIDUAL the facilities of & SAVINGS BANK with the added feature of offering a plan to make loans on a practical basis, | which enables | the borrower to liquidate his ob- ligation by means of weekly, semi- monthly or monthlydeposits. It is not neces- sary to have had an account at this Bank in order to borrow. = upon ‘taxation of real as opposed to| the 1932 act allows loss from the sale | and loss from | | sale of them may be unconditionally de- FREDERICKSBURG, Va, June 3.— | $1,200 $100 46,000 STAR, WASHINGTON, Publisher Calls Projected Re- ductions in Pensions “Cruel Injustice.” Prospective Government regulations, under which pensions given widows and orphans of service men are to be cut sharply as part of the economy pro- gram, were characterized yesterday by Johm Callan O'Leughlin, president and publisher of the Army and Navy Jour- nal, as “cruel and inhuman injustice.” He asserted that Senator Robert D. Carey, Republican, of Wyoming is in- terested in having the conferees on the independent offices appropriation bill write in legislation to prevent the im- pending hardship. Mr. O'Laughlin pointed out that many of these widows are 80 and 90 years of age, and to cut their pension allowance in half now would be a real zr’sedy to them. In lesser degree, he sajd, women who are much younger will likewise suffer if the proposed slash in pensions materializes. As it is, the publisher asserted, the widows and or- phans get a mere pittance, and to re- duce this further is unworthy of a great Government and will be appalling to the helpless. Face a Perilous Time. ‘The widows and children of Amer- ica's eminent sailors, soldiers and ma- rines are facing a perilous time, in the | opinion of Mr. O’Laughlin. The Gov- ernment is now apparently forgetting | the yeoman service rendered to the | Nation by the loved ones of these now helpless dependents, he said. Great injustice will be done if the | threatened economies are carried for- | war1, particularly to those of advanced age, in the publisher’s opinion. “There was little chance for such families to save money, and in many cases where savings were made and carefully invested all has been lost dur- ing the past three or four years said Mr. O'Laughlin, referring to those who roamed over the world in the service. | “For some years past widows were en- titled to pensions of $30 per month on | account of their husbands’ services dur- ing the Spanish War, Philippine Insur- \rection or Boxer Rebellion and in most cases service was had in at least two of | the aforementioned emergencies. Where | the husband bought life insurance or | made investments which have stood the depression, these widows are to receive | no pension if their private incomes are | over $1,000 per year and if their in- comes are under $1.000 per year the | pension is to be cut to $15 per month. | One thousand dollars: per year is mnot | sufficlent income for an elderly woman |to support herself adequately in any city and besides, it may be questioned | why the Federal Government should penalize those people who by careful \llv:-ntge have *een able to build up some estate. J.ffect of New Laws. “It has been difficult to get an exact general statement which would show the effect of the new pension laws and | regulations which are to become effec- |BOY HELD IN § tive July 1, 1933, Several brief state- ments that have appeared In the press had errors which have caused unnec- essary anxiety or left pensioners with | an erroneous sense of security. The of- fice of the Army Mutual Aid Associa- tion has given information as a result of the studies made in that office, but even there it is reported that new facts are developing from time to time on | account of changing constructions which | are being given to the recently enacted | provisions. “In general, it may be stated that the widows of veterans of the Civil | War and Indian wars are not to be dis- | turbed in their present pension allow- ances. “In the cases of those who are widows of veterans who served 90 days or more in the Spanish-American War or World War or who participated in active operations during the Philippine Insurrection or Boxer Rebellion and died as a result of causes incident to such service, pensions are to continue as heretofore at the rate of $30 per | month. Where widows are drawing | pension on account of service by their | husbands during the Spanish War,! ' Philippine Insurrection or Boxer Re- | bellion, but where the veterans' death | | was not due to causes which originated | In or were aggravated by service dur- ing those wars, the widows' pensions are to be reduced to $15 per month, provided they have income of less than $1,000 & year. If the widow has pri- vate income of more than $1,000 a | year, she will not be entitled to such pension. The children of deceased vet- | erans of the Spanish War, Philippine | Insurrection or Boxer Rebellion will be | paid through their widowed mothers, $5 per month for one child, with $3 monthly for each additionsl child. If there are children and no widow, one child may receive $12 per month, two children $15 per month, three chil- dren $20 per month with additional allowances for additional children. “To widows of deceased officers or soldiers of the Regular Establishment in cases where the officer or soldier dled from causes incident to the service, the | rate of pension is to be $22 per month with $8 additional if thers is one child and $4 additional for each additional child. Where there is no widow, one child may receive $15; no widow but two children, $22, three children $30 and additional amounts for additional children. The dependent mother or father of an officer or soldier who dies as a result of service in the Regular Establishment may be paid $15 for one parent or where there are two parents, $11 each,” said Mr. O'Laughlin. “Widows who are employed by the Federal Government cannot draw pen- sion unless the pension is paid on ac- count of service by the veteran prior to 1898." . Firemen Plan Festival, TAKOMA PARK, Md,, June 8 (Spe. cial) —A strawberry and ice cream fes- tival has been planned by the Takoma Park Volunteer Pire Department for next Monday evening at the fire house. The Review and Herald Band will fur- nish its first concert this season. The | proceeds are to go to the benefit of | the firefighters. D. C, ECONOMY IMPERILS TWO SUPPLY BILLS ETERANS WIDOWS| ARE MAJOR TASKS D. cL and Independent Offices Measures Remain in Final Rush. With congressional leaders hoping to wind up the present session in a week, or as soon thereafter as possible, & list- ing of the major tasks awaiting com- pletion includes two annual appropria- tion bills, the District of Columbis sup- ply measure and the independent offices bill. The District bill, which provides for the expenses of the municipal govern- ment for the fiscal year beginning July 1, has been tied up in conference for several weeks. The independent offices bill, which also i1s of wide local interest because of the provisions it contains affecting per- sonnel problems of Government em- ployes, passed the Senate Priday and will go to conference early this week. Lump Sum Proves Snag. Conferences on the District bill were haited more than two weeks ago, when the Senate conferees found the House members unwilling to agree to a com- promise on the amount of the Federal share. The House bill contained a lump suf of $5,700,000. The Senate changed this figure to $6,250,000. Even the Senate figure would be a substantial cut below the Federal con- tribution for the current year of $7,- 775,000. When the conferees held their last meeting, it is understood, the Sen- | ate group suggested a compromise $6,000,000, but without obcpnnmz :xi agreement. The differences between the two branches also relate to the question of whether the District should be required to make another reimbursement of $1,- 000,000 to the Federal Treasury next year for expenditures on the park de- velopment program. Other Issues Minor. The House bill required another in- stallment, while the Senate voted to eliminate a payment in 1934, om the theory that no further advances are being made toward the park program for the time being and that the Dis- :;lec;t l:hplytin: back what has been us far more rapidl; intended. Pt There are a number of other amend- ments in conference, but the ifficulty confronting the conferees hinges on these two questions. Senator Thomas, Democrat, of Oklahoma, chairman of the Senate group, has not announced when the conferees will have another meeting. LAYING MAY BE PLACED ON FARM Sioux Falls Board of Insanity Rules It Has No Jurisdiction After Quizzing Lad. BY the Associated Press. SIOUX FALLS, S. Dak., June 3.— An 8-year-old Sioux Fall§ boy, who confessed to beating an aged janitor Wwith a hammer two months ago and then repudiated his confession, prob- ably will be placed on a farm. This developed today after the county of Insanity, Wwhich considered his case, ruled that it had no juris- diction, inasmuch as the lad’s intelli- gence quotient was found to range from 85 to 92, Judge Lewis Larson of the Juvenile Court said the Child Guidance Clinic would be the proper place for the boy. Judge Larson described the lad as hav- ing a “mental twist,” but said this was not sufficient to commit -him to the 8chool for the Feeble-Minded. PASTEL PORTRAIT DISPLAY Mt. Pleasant Library Will Exhibit‘ Miss McCartney's Work. Pastel portraits of children by Miss Edith McCartney will be shown from tomorrow to Jume 17 in the boys’ and girls’ room on the second floor of the Mount Pleasant Branch of the Public Library, Dr. George F. Bowerman, li- brarian, announced yesterday. Miss McCartney has just completed studies of the grandchildren of Presi- dent Roosevelt, Sistie and Buzzie Dall, which will be among those shown in the exhibit. Her work in the difficult medium of pastel is well known. THREE PLAYS PLANNED ‘Three one-act plays will be presented by the Eldbrooke Dramatic Club next Friday evening at 8 o'clock in the social hall of the Eldbrooke Methodist Episcopal Church, River road and Wis- consin avenue. Directing the plays are Mrs. Alden | | Hoage, PFranklin Derrick and Raleigh a card party in St. Barnabas’' Parish Earnest. The BANK for the INDIVIDUAL ed within a day or two after filing application— with few excep- tions. MORRIS PLAN notes are usually made for 1 year; though they may be given for any period of from 3 to 12 months. $500 MORRIS PLAN BANK Under Supeivision U. S. Treasury 1408 H Street N. W.; Washington, D. C. #Character and Earning Power Are the Basis of Credit” $19 FLGIN Sport Watch $ A real Elgin, a —and still that 84th Anniversary Salel JUNE 4, 1933—PART ONE. By the Associated Press. RESIDENT ROOSEVELT and administration leaders hope that Col will finish the work of the special session by next Saturday, or shortly thereafter. | There is much to be done, nowever, this | being the status of major legislation favored by the administration. Laws Enacted. New Federal employment system (to | be_signed soon). | Emergency bank and gold control. Legalization of beer. Economy and veterans’ Reforestation Corps. Muscle Shoals and Tennessee Valley | development. Half billion for direct relief. Farm rellef and inflation act. Nearing Disposal. cuts. | | | | conference. Independent offices appropriation and economy bill, to be sent to conference. Extension of gasoline tax measure, with postage reduction and transfer of Glass-Steagall bank reform bill, in | Busy $chedule for Congress President and Am; Hope Work of | | TU STARI BU“_mNG Special Session Can Be Completed by Saturday. electric tax off householder, in corfer- ence. Insurance company Reconstruction Finance Corporation aid plan, in con- ference also. To Be Passed. Cancellation of gold clause, passed by House. Senate nearing . Rallroad r ization, passed by Senate. House vote due tomorrow. Publie works-mdnmtry control-tax ouse. measure, passed by . Due for Senate Action Soon. Home mrrigage refinancing bill. Passed by House. | _ Federui control ¢ ofl industry bill. In comrittees. Pending Legislation. Arms embargo authority. Passed by | House. | 78t. Lawrence power allocation. Passed by House, awaiting Senate action which | may not come this session. Still to Come. Legislation authorizing President ! Roosevelt to make tariff changes. Morgan Hotel Bill Estimated to Cost About $2,000 a Day By the Associated Press. The hotel bill of J. P. Morgan and his retinue of partners, aides and retainers averages ~about $2,000 a day, according to esti- mates in hotel circles. The party has most of five floors in the Carlton Hotel. They also have their meals there and keep a number of their own automobiles ready for instant use. Half a dozen Morgan partners have been here under subpoena this week for which they may collect from the Government $3 a day for living expenses. They also may collect their railroad ;are. but not the extra Pullman are. HOUSETO TAKE U " BANKRUPTY BL Congress Action on Relief Legislation This Session Is Assured. By the Associated Press. Congressional action -on bankruptcy relief legislation this session was as- sured yesterday when House Demo- | cratic leaders decided to take up to- mor{ow tflu NBK&O'D I:,ll to permit insolvent corporations b nize with court sanction. - The measure will be considered un- der suspension of the rules. It is de- signed to enable a corporate body to avold bankruptcy proceedings by work- ing out with its creditors plans of re- adjustment. Only two-thirds of the creditors and & majority of the stock- holders are required to agree to a plan ‘which the " court has approved, and under the bill a minority of the cred- itors would be prevented from blocking reorganization attempts and forcing the corporation into glnkmpu:y As the corporate bankruptcy measure progressed, however, the chances of actlon this session on legislation to ex- tend similar refinancing rellef to mu- nicipalities remained uncertain. The House Judiclary Committee has ap- proved a rewritten bill, introduced by Chairman Sumners, Democrat, Texas, but because of the tie vote which he broke for a 9-to-8 approval the measure has been held back from the House pending o}msnble reconsideration. A meeting the committee called | for yesterday was postponed until to- | morrow, however, and Sumners has not announced definitely that the mu- nicipal relief measure would be taken Ly .g'nm'uy introduced by Representa inally introduct esenta- tive Wilcox, Democrat, of Florida, the measure as reshaped would permit mu- nicipalities with the consent of 30 per cent of the bondholders to petition the court for approval of a refinancing plan, which must have the agreement oll two-thirds of the creditors of each class. Plans Oxon Hill Party. OXON HILL, Md., June 3 (Special). —The Alpha Community Club will give | Hall, Oxon Hill, next Saturday. 95 50c'a Week! jeweled Elg'n movement s all it eosts you in Castel s Good-looking, new e, with a smart leather band. Get one now! America’s Oldest Credit Jewelers 1004 F St ik 40 AMBASSADOR OF ITALY TO ATTEND SPECIAL RITE Anniversary of Granting of Con- stitutional Guarantees to Be Celebrated. Ambassador Augusto Rosso of Italy and his staff are scheduled to attend special services of thanksgiving at Holy | Rosary Church this morning on the oc- casion of the eighty-fifth anniversary of the granting of constitutional guaran- tees by the King of Sardinia to the peo- ple of Italy. ‘The services will begin at 10:30 with 8 solemn high mass to be celebrated Right Rev. . L. Mangetti of Balti- more, and will close with the chanting of the “Te Deum.” Very Rev. M. Nar- done, rector of Trinity College, will take part ‘The Committee on Arrangements for the observance includes Sylvester J. Aquino, chairman, assisted by Joseph Balducci; Dr. rio Scandiffio, John M. DiJoseph, N. Carosi, Frank P. Lozupone, Baldo Balducel, Glovanni Sanmassimo, M. Bello, J. Ofano, §. Ofano, P. | Brignole, D. Brizzolari, J. La Scola, L. | Gagliardi and B. Landi. | LEAVE FOR CONVENTION Club Workers to Attend Chicago Gathering. Charles M. Fyfe, director of the Club of Washington, A. Hinds, rector of the Northeast Boys’ Club, and Bert Shelden, secretary of the North- east ’ Club, left yesterday for Chi- cago, where they will attend the annual convention of the Boys' Clubs of Amer- ifi. Inc., .mlcg' will be held tomorrow, esday ‘ednesday, Mr. Fyfe will receive his “15-year medal,” indicative of the fact that he has been engaged in boys' club work for 15 years. The Boys' Club of Washington will have an exhibit of printing and art at the convention. This will make their fifteenth annual exhibit. Last year they were awarded second prize for general printing and first prize for the most ar- tistic individual piece of work. | Boys’' " *I’ Nature produces three basic , in that eity. | NAVY S PREPARED |Construction on 30 New | Ships Can Be Begun 90 Days After Law Enacted. . | By the Associated Press | . The Navy is ready to start building | 30 new ships—as part of a three-year | $230,000,000 construction program— within 90 days after the industrial public works bill becomes Iaw. Word was passed yesterday to Chalr- man Vinson of the House Naval Com- mittee that $46,000,000 would be made available for the first year’s work. The | remainder, it was said, later will be | allocated by the President to ship con- :nmcnon under the blanket authority i:fil'm be given under the industrial | The ships, Vinson said, for which | contracts can be let within 60 to 90 |day are: Twenty destroyers, four sub- | marines, two aircraft carriers of 13,500 |md four 6-inch gun, 10,000-ton le Cruiser-Airplane Carriers. One or more of the 6-inch cruisers will be of a type hitherto unknown on the seas—cruiser-airplane carriers, armed with 6-inch ng, but also ca- pable of carrying a or more air- | planes. These have been contemplated for | several years, but up to now the Navy | has not had funds with which to build | them. Naval officers expect them to be | serviceable as scouting weapons. | In addition to the 30 ships on which | work can begin within three months, the approved program also provides for | tWo new gunboats, to be used in Chi- | nese waters, where heavier vessels can- not_go. “If an agreement is reached- at the Geneva Arms Conference before the wi ve any work. s “It is not our intention to threaten anybody. But we are far, far below present treaty limits, which other na- tions have about reached. Even with said, halt By | 32 new ships, we will still be consid- The decision to this building program, Vinson ldw ‘will not imme. diately affect the officer or enlisted strength of the Navy, since there are no present plans for economies in that direction. ““Thaehubeenmmk,"hnnfl, ‘o:‘ wnu' -'wm,n but “mqmmum a ha c e finished their work—or much G ?E_ 3 8 H EE% ¥z g £ $ % i ) 4 . £ i B i h | H gegn i 2 g 8 13 £ g g2 % : ¥ H L Class to Name Officers. GAITHERSBURG, June 3 (Spe- | cial) —Election of officers for the year | will bel’lpedluulffimn at the June | of ‘Walker, Tuesdsy évening &t 8 o'clock. . Ba_ pecial sizing ~HATS head shapes . .. Long Oval, Wide Oval and Oval . . . and this is to announce that 1 have gone into business with Nature . . . the tradition in hats is Three Heads per Hat . . . the new Spécial-size method is Three Hats per Head . .. your head is siz-d for contour as well as for fi head instead of the head to t size system you are absolut you ought to have ... No p sure! TEENTHS, so essential to t ... it conforms the hat to he hat...under the Special- ely sure of getting the size adding, no pulling, no pres- In fact, this new system of Special-size SIX- style and to fit is also vital to head comfort and, therefore, to health . .. Come in and see what it's all about. % SPECIAL-SIZE- SIXTEENTHS STRAW HATS, $3 LIGHTWEIGHT FELTS, $5 GROSNER of 1325 o o e o3 e o e K s o Street No Compromise with -Quality