Evening Star Newspaper, July 2, 1933, Page 12

TREASURY DEFICIT 15 §1.786,000,000 Ppenditures Likewise Drop, | Reflecting Slashes in Fed- : eral Salaries. By the Associated Press. ‘The Treasury put the thought of a $1,786,000,000 deficit behind it yesterday and started on a new fiscal year with| firm intentions and fresh hope of mak- ing the governmental income bulk as large as its outgo. The intention had already been made | known through reductions in veterans’ expenditures, slashes in salaries and the most rigid economy program gen- erally that any administration has put into effect in the regular Government departments for years, A factor that strengthened hope was an increase in business which is expected to be re- flected in additional governmental revenue. The formal announcement that Treas- | ury spending had exceeded income by $1,786,000,000 came from Dean Acheson, | Acting Secretary of the Treasury. He| said receipts in the fiscal year, which ended yesterday, were $2,080,000,000, | with an outgo of $3,866,000,000. | The Acting Secretary went into de- tail on the reason for the deficit, the third in succession. He said that not- withstanding new taxes levied in the tax bill a year ago, the new beer taxes, the receipt of nearly $99,000,000 in war | debt payments from foreign countries, the receipts for the year were only | $74,000,000 more than in the preceding year. Fewer Expenditures. The expenditures, however, were $1,020,000,000 less than a yeer ago, when | the deficlt was $2,880,000.000. They reflected reductions in governmental | salaries, and lessened spending. Fewer | taxes were refunded and the postal | deficiency and payments on adjusted | service certificate funds were less. | “While there has been an improve- | ment in business conditions during re- New Medical Staff at Gallinger 1933 RESIDENTS REPRESENT DISTRICT AND MANY STATES. ALLINGER MUNICIPAL HOSPITAL changes most of its resident staff every year, giving a fresh set of pnysi- | gabo clans and surgeons one-year contracts, 8 few of them receiving two or three year terms. The picture shows a' group of 24 of the “freshmen,” who took up their duties there yesterday, the beginning of the fiscal year. They are: Left to right, stooping: Morris Silverman, George Hart, First row, standing: Dr. Edgar A. Bocock, superintendent of the hospital; Frank R. Klune, A. E. LeHew, William Schnauffer, J. A. Gillen, J. P. Kane, P. A. Stebbing, R. B. Warfield and H. Katzman. Rear: W. A. Rubien, K. M. Simonton, C. H. Avent, S. E. Kramer, V. V. Spinney, Willlam McCullagh, H. Insel, H. E. Newman, B. V. Antes, T. H. Quill, THE SUNDAY STA E. McNamara and E. F. Milan. M. Feldman and T. P. 1lins. —Star Staff Photo. FOUR-FIFTHS VOTE FOR BEER FORESEEN Tuck Holds Virginia Sales Will Be Possible by Mid- dle of August. By a Staff Correspondent of The Star. RICHMOND, Va, July 1.—A four- fifths vote in the forthcoming special Needle Beer Unfit To Drink, Says Judge, Freeing Defendant By the Associated Press. SAN FRANCISCO, July 1— “Needle beer,” described in court as brew “stepped up” by the in- fusion of spirits, was held by Federal Judge Frank H. Kerrigan to be unfit to drink and there- fore not a beverage. Judge Ker- rigan ruled no offense had been committed in its sale, so Jimmy George, the defendant, went free. ALEXANDRIA 0 GET HOME: LOAN OFFICE |Branches Will Also Be Es- tablished in Five Other Cities. Five Virginia cities beside Rich-| mond will have district Home Owners’ | Loan Corporation offices. They are Norfolk, Roanoke, Danville, D. C, JULY 2, 1933—PART ONE. ENGINEERS FREED UNDER TRADE PACT Great Britain and Soviet Patch Up Difficulties and Embargo Is Lifted. By the Associated Press. LONDON, July 1.—Great Britain and Soviet Russia patched up their immediate differences tonight with the result that both countries canceled their trade embargoes and the two British engineers held in prison at Moscow were released. The peace agreement came after consultations between Sir John Simen, British foreign secretary, and the So- viet diplomats, Jean Maisky, Ambassa- dor at London, and. Maxim Litvinoff, foreign commissar. The embargo on Russian goods com- ing into British ports was laid down April 19, the day after the group of British engineers were found guilty by a Moscow court of espionage and tage. Three of the British engineers were expelled from Russia, but L. C. Thorn- ton and W. L. MacDonald were sen- tenced to three and two years im- prisonment, respectively. The announcement of the Anglo- Soviet agreement was made by the British foreign office which declared a short time afterward that Thornton and MacDonald had been released to- day at Moscow. Sentences Commuted. ‘The London Gazette supplement pub- lished a proclamation by the King and council revoking the embargo, effective immediately. A foreign office communique said that g:ut\una of the British engineers came fore the presidium of the Executive Committee of the Soviets today and the sentences of the two men were com- muted so that they could be set at liberty at once. ‘The lifting of the embargo was offi- clally announced also by the Russian commissary for trade. The announce- ment said that arrangements would be made promptly to resume Anglo-Rus- sian trade negotiations where they were interrupted as a consequence of the arrest of the British engineera. Mrs. Thornton made immediate plans CLOSED ALL DAY FOURTH OF JULY Seven Days of Special Prices ‘on Lifetime Fumiture END TOMORROW AT 6 PM. With price advances staring us in the face, we go on offering these special reduc- tions on a vast portion of our present stock of Lifetime Furniture. If you have a need for good furniture, you will be able to really pick up a “bargain” here tomor- row. Open all day tomorrow. Closed July 4th. Come in tomorrow and save. cent months the Government revenues for the fiscal year 1933 were not mate- to leave for Berlin tomorrow to meet | o his was ‘announced todsy by John |her husband. ~She declared “the last | | few hours were the worst.” anced gayly about the room an RIre D strict office #%|son Edward telephoned concemning a | session for the legalization of beer is| rially affected,” Acheson said. assured, it was declared today by Sena- | “The 1933 expenditures ~included | 5 william M. Tuck of Halifax, and as about $461,000,000 of public debt Te-| 2 firements, mainly for the sinking fund, & Tesult it is probable the sale of the the deficit, exclusive of such retire-| beverage in what has been considered ments. amounting to_ $1,325000.000. |one of the driest States in the Union | Harrisonburg and Alexandria. 1 fhendqulnerun addition to the State | passport to fiy to Berlin. “This deficit of $1,325,000,000, to- gether with net payments on account of advances made to the Reconstruction Finance Corporation of $1,277,000,000, an excess of expenditures on trust | a canvass of the members of the Gen-" fund accounts of $5,000,000 and the| increase of $445,000,000 in the general fund balance, resulted in an increase of $3,052,000,000 in the gross public debt.” The increase ir brought the total on June 30 to $22- 539,000,000, as compared with $19,487,- | 000,000 on June 30, 1932. | will be possible by the middle of August. In explaining assurance of the four- fifths vote, Senator Tuck explained that eral Assembly shows that a number o the members of both the Senate and House of Delegates who were opposed to the calling of a specal session are in cial session 1n the passage of a measure that can become effective immediately. Without the four-fifths vote the act New Montgomery Commis- | sioner, Found Shot in Barn, | Is Declared Suicide. | favor of the legalization of beer and will | the public debt | join with those who did favor the spe- | Special Dispatch to The Star. | DAMASCUS, Md., July 1.—Archie | W. Souder, cashier of the Bank of Acheson said the average annual in- | could not become effective until 9) days | Damascus and recently appointed mem- terest rate on the outstanding public | debt on June 30 was 3.35 per cent, as compared with the average rate of 3.50 per cent on June 30 a year ago. Tncome Tax Receipts Drop. On the income side of his ledger the | Acting Secretary said income tax re- | ceipts totaled $746,000,000, which was $311,000,000 less than the year before, | notwithstanding heavier levies that were effective in 1933. | “This is striking evidence of the ef- fect which the depression has had on one of the main sources of the Govern- ment’s revenue,” Acheson said. “The| amount of income taxes received during the last six months of the fiscal year 1933 was about $39,000,000 less than the | corresponding period in the fiscal year 1932, although much higher rates were in effect in the 1933 period.” Miscellaneous internal revenue, he said, totaled $858,000,000 or $355,000,000 more than for 1932, the increase being due to the so-called billion dollar tax bill and the beer taxes. Customs duties amounted to $251,- 000,000, a decline of $77,000,000 from 1932, The customs receipts, Acheson said, was another source of Government revenue which had been materially af- fected by the slump in business. The decrease cf S1. ! penditures, Acheson for in part by $500,000,000 for Rezon- struction Finance Corporation capital . stock spent in 1932 which was not * duplicated during the last year. To this was added $125,000,000 for Federal Land Bank capital stock in the 1932 fiscal year, $21,000,000 decrease in Treasury expenditures, $31,000,000 dropped in ‘War Department expenditures due prin- cipally to reduction in construction work, $68,000,000 dropped from the Department of Agriculture, $30,000,000 for tax refunds, $86,000,000 for postal deficiency, and $119,000,000 for the veterans’ administration. He said there was a decrease in all general departmental expenditures on account of reduction in salaries of the Government employes. The pians for the new fiscal year call for virtually a 25 per cent reduction in the expenditures of every governmental department. Several thousand Government em- ployes are being either dismissed or furloughed in cutting the departmental budgets to fit the allowances that have been made for the new year. St SIGNING OF COTTON . AGREEMENTS URGED Wallace Asks Growers to Qualify for Tax Under Reduced Acre- age Plan. By ‘he Associated Press. Secretary Wallace yesterday urged that cotton producers “‘get under the‘ wire” next week in signing offers to reduce acreage under the cotton pro- gram which contemplates the distribu- tion of around $100,000,000 in cash| benefits during the next two months. Wallace issued a brief statement, but | in it avoided giving any indication of | Whether he is impressed with results | obtained during the past week in the| campaign being carried personally to| génry farmer in the 16 cotton-growing rtes. |WORLD’S FAIR after the close of the special session. Action to Be Restricted. An attempt to pledge the members joining in the petition for a special session, which has been set by Gov. Pol- lard for August 10, to the consideration only of the legalization of beer, repeal of the eighteenth amendment and “such other matters as may be placed before the General Assembly by the Governor in writing” appears to have been suc- cessful, Senator Tuck said today. While the members are not permitted | prior to the session to bind themselves. | it was said, only a majority vote is necessary to pass a resolution limiting the business of the session and this majority seems to be assured. In accordance with a request from Senator Tuck that they address tele- grams requesting the special session to the Governor, all of the first having been sent to Senator Tuck, 70 members of the House of Delegates and 27 mem- bers of the Senate, more than the two- thirds necessary to call the session over the Governor's head, had today trans- mitted their desire directly to the Chief Executive. Waits For Letters. The formal ceall, however, will not be issued until the Governor has had r: plies in the form of letters signed by th> members, these signatures being re- quired by the constitution to force the calling of the special session. This, however, was said to be only a matter of form, the Governor being satisfied that the session must be held. State Senator W. Worth Smith, a candidate for the Democratic nomina- tion for Governor, and Delegate Berk- eley C. Adams of Charlotte County are attempting to upset the limitation plans by insisting that the special session consider the reduction of automobila tags to $5, the reduction of the tax burden and the handling of delinquent tax legislation. Sepator Tuck declared that if the session got involved in these matters and in redistricting, as has been advo- cated by Senator John W. Rust of Fai fax, “we will be here until Christmas. RIOTERS CHECKED BY POLICEMEN Armenians Swing Chairs in Effort to Unfurl Flag of the Old Republic. By the Assoclated Press. CHICAGO, July 1. A disturbance | | ber of the Board of Montgomery Coun- ty Commissioners, committed suicide | by shooting himself in the head in a barn on his farm here late today. Found by members of his family shortly after 6 o'clock, Mr. Souder was pronounced dead by Dr. J. Stanley Grabill of Mount Airy, who issued a | certificate of suicide. A .38-caliber pistol was found beside the dead cashier. Chief of Police A. A. Mox- ley of Montgomery County, a friend of Mr. Souder, personally conducted an immediate investigation. Suffered From Nervous Ailment. Mr. Souder had suffered from a ner- vous allment for several months and recently went to Virginia for a few days to recuperate. He was believed to be on the road to recovery when he returned. Last week he was named by Gov. Ritchie to the Board of Montgomery County Commissioners to fill the va- cancy caused by the recent death of Commissioner Sherwood Duvall. He sat as a member of the board for the [nrst time Thursday, representing ‘Damascus and Clarksburg districts. A life-long resident of Damascus, Mr. | | Scuder was prominent in civic and church work in Upper Montgomeary County. He was president cf the County Government Club, a former president of the Damascus Citizens’ As- sociation and an active member of the Damascus Methodist Episcopal | Church. Was Bank Director. He was a director of the Damascus Bank as well as its cashier. Follow- ing the national banking holiday the bank was permitted to function only on a 2 per cent basis, but later re- sumed business on a normal basis. Mr. Souder is survived by his widow, formerly Miss Sarah Purdum of Damascus; five daughters, Mrs. Clark King and the Misses Ruth, Dorothy, Helen and Jane Souder; his mother, |Mrs. Emma Souder; three brothers |and two sisters. His father, the late Philip Souder, | was at one time a member of the Montgomery County Board of Com- missioners. . D. C. Woman Gets Divorce. RENO, Nev., July 1 (#)—Mrs. Na- obtained & divorce today from Staniy Carr of Washington, D. C., on grounds of cruelty. An agreement for the cus- tody of their 313-year-old son, Stewart, was not made public. The case was heard privately. talie Carr, the former Natalie Hanna, | ‘The selections were made by the | corporation’s board of directors after | several days’ deliberation. | | Consideration was given, Wicker said, | to location of mortgaged homes and | customs of communities, where persons {of a section habitually traded and banked in a certain city, so far as pos- | | sible the district office was located | | there. Six Believed Sufficient. Wicker said he recommended several other cities for offices, but the board decided that six including Richmond ‘ would be sufficient to handle the State’s needs. In addition to the full time em- | ployes at the district offices there will be fee appraisers in every county and | city of the State. | Wicker sald he hoped to open the | district offices within one week after | the_State office commences to -function .at Richmond on July 10. Each office will be in charge of a dis- | trict manager and in addition there will be a district appraiser and a ste- | nographer-clerk. The areas the offices | will serve will be announced later from Richmond he said. Wicker said any of |the district offices might be closed if | | business of the area was found to be | insufficient to justify continuance. The | cities where the offices will be located | will be required to furnish office space | free of cost to the corporation. Should Seek Delays. | In the week intervening between opening of the State and district of- fices Wicker said applications for loans should be sent to the Richmond office. | He announced earlier today that the | corporation board selected the banking rooms of the former Richmond Trust | Co. for State headquarters. | Prior to July 10, home owners who | believe their cases come within pro- | visions of the Federal law should ask ! mortgage holders to withhold action | until after the corporation office com- mences to function. { If the mortgage holder refuses, he | said, the home owner should seek a bill in equity in court. “I think the law ought to stop them and I believe it will” he said. He pointed to a recent decision of the Richmond City Circuit Court en- Joining a mortgage holder from pro- ceeding against a home owner until July 28, a date after the corporation will begin to refinance mortgage loans. FIRST LADY COMPLETES DRIVE TO SON’S HOME Arrives at Rye Beach, N. H., After 850-Mile Motor Trip From Eastport, Me. By the Associated Press. RYE BEACH, N. H, July 1.—Mrs. Franklin D. Roosevelt arrived at the home of her son James late today after & 35G-mile drive from Eastport, Me. The First Lady, accompanied by two women friends from Hyde Park, N. Y., left Eastport early today and tomor- ;owkwlll leave by automobile for Hyde ark. which required nearly a hundred World Fair police and guards to quell broke out today when attempt was made w0 unfurl the flag of the old Republic of | Armenia, now part of Soviet Russia, at the exposition Hall of Science. Fifteen men essayed to place the for- mer republic’s banner on the platform were Archbishop Leon Tourian, New York, primate of the Armenian Church in North and South America, was w speak. The prelate stopped on his way t the platform, declared he feared Soviet reprisals in his homeland if report of the banner’s presence was made w Soviet authorities, and policemen rushed to remove the flag. They were met by swinging chairs in the hands of the 15, and reserves were summoned. Two officers were slightly injured and five alleged rioters ar- rested. Insists on Ke If all retired Federal employes were as hard to separate from the service as Hatley Tanner, 72-year-old colored mes- senger formerly employed in the Bureau of Internal Revenue, the Government | would have a large problem on its | hands in this era of retrenchment. Tanner was re- tired just a year ago yesterday, but retirement orders don't mean a thing in the life of this Sizies In al 22000 workers are aid | TROPICAL STORM HEADED | ghasiea v eteran The program provides that growers have up to July 8 to sign contracts. After that time special permission must be obtained, unless Wallace finds it necessary to extend the campaign period further. The agriculture Secretary’s statement ‘was intended, in part, to push the cam- paign to a wind-up by next week end. Compilations of offer-contracts then could be made before the end of this month, determining definitely whether the program will be put into effect. WORKING ON HOLIDAY Steel Plant to Care for Increased | Business. LORAIN, Ohio, July 1 (#).—The Na- | tional Tube Co., which has increased its force within the last three weeks to more than 4,500 men, will operate its steel plant on the 4th of July for the first time in its history to care for increased business, . officials “nnounced FOR WESTERN JAMAICA By the Assoclated Press. MIAMI, Fla., July 1.—The tropical storm moving northwestward through the Caribbean is not expectea to touch Kingston, Jamaica, but it is feared the west side of the island is in the storm path, according to Tropical Radio Sta- tion here. The information was relayed from Kingston this morning via the United Fruit steamer Harboe Jensen, which communicated with tne island station at 9:30 a.m. Pan-American Airways announced at 11 am. it had sent a plane from| Port of Spain to survey storm damage on the southern coast of Trinidad. GRAF ON WAY SOUTH FRIEDRICHSHAFEN, Germany, July 1 UP)—The Graf Zeppelin, piloted by Capt: Ernest A. Lehmann, left here to- night with 14 passengers for its third flight to South America, = who served Uncle Sam faithfully for | 35 years. | Like an old fire | horse that can't stay away from the engine house, Tan- ner has continued to return almost daily to the scene of his labors and sympathetic of- ficials have permit- ted him to make his messenger rounds as of yore—al- | though he draws no salary except his retirement pay. ‘When he first began his visits to the bureau shortly after his retirement, of- ficials paid little attention to him. They thought he would tire of his cus- tom before long. But as the weeks went by and Tanner still turned up as usual, they began giving him odd jobs, | much’ to his delight. Now it looks as if Tanner, retirement or no retirement, is a permanent fix- ture of the Revenue Bureau. He seldom Hatley Tanner. Retired U. S. Worker, at 72, eping at His Job misses a day at the big new building on Constitution avenue, and when he goes to work he gets there at least half an hour before the usual reporting hour of 9 o'clock. “I just can’t stay away from here long,” Tanner told a reporter yesterday. *‘You see, I know all these people around here and I like to do little things for them. I'm just as active as ever. | Look at this. (He executed an im- {promptu tap dance on the floor). | | There's plenty of kick in the old frame | yet. Yes suh!” | Tanner started out as a Pullman |porter on the New York-Miami run, but after two years of railroading de- cided to take up barbering. He laid down the shears 35 years ago to be-| come a messenger in the office of the chief postal inspector at the Post Of- fice Department here. Officials learned of his experience as a barber and his services came into wide demand among the higher-ups. | “I used to shave Postmaster General Henry C. Payne every morning when he came to work,” Tanner said, “and I cut his hair whenever it needed it. I also shaved the Assistant Postmaster General and the chief inspector.” Tanner remained with the Post Office Department for 20 years before trans- ferring to the Treasury. There he found Elmer Irey, who had been with | the Postal Inspection Service, and Tan- ner has been working under or near Irey ever since. The latter paid high tribute to the old colored man yester- day. Tanner has five children, three of whom are school teachers here. He has sent all his children to college. He Tesides at 1228 Fairmont street. | L. C. Thornton and W. L. MacDonald, who were serving prison terms for | ordered to leave the Soviet Union. | the British subjects to leave the coun- ENGINEERS RELEASED. Soviet Foreign Office Announces Free- ing of Britishers. MOSCOW, July 1 (#).—The Soviet foreign office announced tonight that the two Metropolitan-Vickers engineers, espionage and sabotage, have been re- leased under a commutation of sen- tence granted by the Central Executive Committee. The two British engineers were The two men were released this eve- ning, and at the same time the com- missariat for foreign trade announced the lifting of economic reprisals against Great Britain which had been imposed after the British government placed an embargo on Soviet goods. An official announcement said that these actions were taken following revo- cation by the British government of the embargo which was declared immedi- ately after Thornton and MacDonald were sentenced. How long the banishment order gave try was not stated, but it was assumed to be 48 hours. ‘The announcement added that ne- gotiations for conclusion of a new trade agreement with England, broken off when the Metropolitan-Vickers work- men were arrested in March, would be renewed Monday. Released at 11:08 P.M. MacDonald and Thornton were re- | leased from Solkolniki Prison at 11:08 p.m., the exact minute the official an- nouncement was issued despite the fact that the word they had been freed was generally known throughout the day. Both seemingly were in much better phwsical condition than during their | trial. They were taken directly from| the prison to the British embassy, where they had a late dinner and where they spent the night. ‘They planned to leave for London by & night train Sunday by way of Berlin. “It is good to be out,” they said as newspaper men met them in the el Y. “We have no plans for the future beyond getting home as quickly as we can and seeing our directors,” said Thornton, who acted as spokesman for the two while sitting on a billiard table in the embassy card room. “We cannot discuss anything con- cerning the trial or arrest until after we have talked with our office at home,” added Thornton, halting - questions of the newspaper men concerning Mac- Donald’s action in pleadigg guilty and his later unsuccessful attempt to with- draw that plea. U. S. JUNE 1 COTTON WAS 10,739,999 BALES Mill Activity for May at Highest Level for Three Years and Exports Heavier. By the Associated Press. The Department of Agriculture said yesterday that the current supply of American cotton as of June 1 was 10,- 739,999 bales, which it described as two and one-half times normal. The amount compares with 11,296,000 bales on June 1 last year and 7,800,000 bales two years ago. It said mill activity in May reached the highest levels for three years and that exports of cotton in May, almost 60,000 bales, were the largest for the month since 1927. “Exports are usually smaller in May than in preceding months, but this year they were larger than in either February, March or April” the De- partment said. “Sales of cotton textiles in Eurcpe in recent weeks are reported to have equaled or slightly exceeded production.” VILLAREAL BELIEVED SEEKING PRESIDENCY Exile Reported Returned to Mexico as Choice of the Anti-Re-elec- tion Party. By the Assoclated Press. SAN ANTONIO, Tex., July 1.—Bellef that Gen. Anotonio Villareal, who has lived in San Antonio since he was ex- iled from Mexico several years 2go, would become a candidate for the presidency of the Southern republic was strengthened today by a report from his home that he had gone to Mexico, Gen. Villareal left San Antonio Thursday night for an unannounced destination. Yesterday he was named Rr:ldanml nominee ti-Re-election vention in of the -Nationa: . of Mexico ot its We Have Been Warned of Increasing Prices on the SERVEL Electric Refrigerators Buy Now Before Prices Advance Hermetically Sealed Servel models in- stalled as low as $135. Servel Crusader models installed as low as $98. PARKING SERVICE Drive directly to our rear entrance. Your car will be parked for you while you shop at Mayer & Co. COFFEE TABLES 88 JoW 88 ..cocoiiicnncecnaanen ,5.75 i R, o DINING SUITES ssilowaaes o OD]D SOFAS I $2975 $39.75 $9.75 mmuswmes 3495 HANGING BOOK SHELVES ss.zs aslowas ............ $42.50 MAHOGANY CORNER CUPBOARDS as low as ...... 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