Evening Star Newspaper, December 13, 1934, Page 6

WAR PROFITS RAN 10 %2 PER CENT Scores of Firms Shown to Have Made Big Gain With U. S. Contracts. ‘(Continued From First Page.) Curtis, 1915 to 1919; Henry P. Dav- ison, 1915 to 1917; Cleveland H. Dodge, 1915 to 1918; Mrs. Frances G. du Port, 1916 and 1917; Henry F. du Pont, 1915 and 1919; Pierre S. du Pont, 1915 to 1917; Thomas Coleman du Pont, 1915 to 1918; Willlam du Pont, 1916; Alfred I du Pont, 1916 and 1917; James B. Duke, 1916 fo 1918; Edsel Ford, 1920; Henry Ford, 1915 to 1920; Adaline H. Frelinghuy- sen, 1917 to 1920; Henry C. Frick of Pittsburgh, 1915 to 1918; Robert Wal- ton Goelet, 1915 to 1917; Joseph R. Grundy, 1920; Anna M. Harkness, New York, 1915 to 1920; Edward S. Harkness, New York, 1915 to 1920 Arthur Curtiss James of New York, 1915 to 1920; Mrs. Catharine Jamison, New York, 1915 to 1920; George F. Johnson, Endicott, N. Y. 1916 and 1918, and Thomas W. Lamont, 1915 to 1917, . President Roosevelt made his sug- gestion for co-operation during a talk with Senator Clark, Democrat, of Missouri, a member of the Muni- tions Committee. When the President named a group yesterday to investigate war profits several Senators were irritated be- cause that action was taken before they had finished their inquiry. . Roosevelt Opens Subject. The President brought up the sub- Ject, Clark said. “Mr. Roosevelt told me he ex- pected his War Profits Committee to co-operate with our Senate Com- mittee and vic: vsa,” Clark added. Bernard M. ich, former War Industries Board chairman who is heading the Roosevelt Committee to draft legislation, said the President and his group would consult freely with members of the Senate and House. “I see no basis for conflict between the two committees,” Clark said. “We are trying our best to get something done and welcome aid.” A warning that any attempt to sidetrack the Senate arms inquiry would lead to a bitter fight in Con- gress had come earlier from mem- bers of the Munitions Committee. Cardinal Points Stressed. At the same time, it became clear the program to be drawn by Baruch, Hugh S. Johnson and other promi- nent New Dealers named by the President probably will center around these cardinal points: 1. Should war break out, prices would be “frozen” immediately to prevent skyrocketing. 2. War profits would be seized by drastic taxation. A 1932 report of the War Policies Commission, on which the President’s new board will base its study, urged a 95 per cent tax on ail income above “the previous three-year average.” 3. Machinery would be created for the swift mobilization of the Nation's industrial resources in time cf con- flict. The Baruch board studied yester- day the recommendations of the War Policles Commission, composed of cabinet officers and members of Con- gress who reported in 1932 the war profits problem. The War De- partment, it was learned, will revise this report and submit it to a later session of the board. The War Policles Commission, whose membership included Senator Vandenberg and Secretary Swanson, urged that Congress authorize the President, if war comes: “To institute a program under which prices may be stabilized and thereafter adjusted at such levels as will minimize inflation and will se- cure to the Government the use of private property needed in the prose- cution of the war without affording the owner thereof profit due to war.” The commission in suggesting the 95 per cent tax also proposed a con- stitutional amendment that would make possible, beyond a shadow of a doubt, Congress’ authority to make the changes. Now the sentiment in high quarters appears to be that such an amendment is unnecessary. Chairman McSwain of the House Military Affairs Committee, who was on the War Policies Commission, dis- closed he is planning a bill to take the profits out of war. At first, he said, he thought an amendment would be needed, “but in view of the more liberal attitude of the Supreme Court recently, I now believe that if the legislation were made effective only in the emergency of a war the Su- preme Court would sustain it. There- fore, I have been drafting a bill to that end.” Baruch, head of the War Industries Board, which ruled the Nation’s in- dustrial mobilization in 19¥7 and 1918, is known to have decided views on the problem. Once he said: “We take an enormously long stride forward, and one that will be at- tacked bitterly by the conservatives, ‘when we advocate to clamp down on profit making and seek to skeletonize it and eliminate it in war.” He and Johnson, former Blue Eagle chief, who was obviously pleased at e e e e R Ty L e ————————————— CANADIAN DATAIFRIEND MURDERED, Dry Leaders in Conference Here Leaders of the dry movement photographed as they attend- ed the sessions of the National Temperance and Prohibition Council here yesterday. ———————=== No. 1, Mrs. Ida B. Wise Smith, president of the National W. C.T.U.; No.2, Mrs. Ella Boole, president of the World W. C. T. U.; No. 3, Bishop James Cannon, jr.; No. 4, Canon Wil- liam S. Chase of the Interna- tional Reform Federation; No. 5, F. Scott McBride, superin- tendent of the Anti-Saloon League. —A. P. Photo. getting back into the New Deal in an official post, were expected to take a leading part in the new program. There was some speculation today as to what bearing the presidential move would have on a proposal to nationalize all munitions business, al- ready favored informally by a ma- jority of the Nye Committee. Members of the Advisory Committee on Preventing War Profits are Baruch, Johnson, who was associated with Baruch on the War Industries Board; Secretaries Dern, Swanson and Mor- genthau, Gen. Douglas MacArthur, the temporarily reappointed chief of staff; Undersecrtary Tugwell of the Agri- culture Department; Assistant Secre- tary McGrady of the Labor Depart- ment and Assistant Secretary Roose- velt of the Navy. The American Legion yesterday con- gratulated President Roosevelt upon the step he has taken. “For 12 years the Legion has worked ceaselessly for the adoption of an effective universal service act,” said a statement by its national commander, Frank N. Belgrano, “providing for the conscription of capital, industry and man power in time of war and the use of each in the service of the Nation without special preference or profit. ¢ ¢ ¢ “When war ceases to be a profitable business, much of the incentive for war will end.” Patrick J. Hurley, who headed the last concerted Government effort to remove profit from war, also com- mended any further steps in that direction. ARMY PURCHASES STUDIED. By the Associated Press. The Senate Munitions Committee today investigated the purchase of military supplies by the Government after reaching an agreement with Secretary Dern to guard against ex- posing military secrets. Chairman Nye, after the confer- ence with Dern, said the committee would proceed with its inquiry with & representative of the War Depart- ment advising on what might be con- sidered secret information. He emphasized that the committee reserved final decision on placing evi- dence in the record. Dern said he was satisfled with this arrangement. On leaving the conference with As- sistant_Secretary Woodring, Chief of Staff Douglas MacArthur and other aides, Dern said he felt no important War Department secrets had thus far been divulged. The War Denartment assigned Col. C. T. Harris to advise the committee. “We are no* going to pull any punches,” Senator Clark, Democrat, of Missouri said after the conference. “Naturally we don’t want to expose anything that will embarrass our na- tional defense plans, but we remain the sole judge of what we do and don't do.” “There is a division of opinion as to what 1s a military secret.” Nye said, “but the War Department is going to keep Harris at our disposal to tell us when we reach controversial points.” - Trade Office Planned. Poland will establish an institute for foreign commerce. METEOR CROSSES SKY IN EASTERN NEBRASKA By the Associated Press. ALVO, Nebr., December 13.—A me- teor, said by railroad men to be as “big as a house” flashed across Eastern Nebraska early yesterday. A few sec- onds after the meteor was seen here a loud explosion was heard, but it was not established whether the meteor hit the earth in the vicinity. Railroad men at Lincoln and South Bend, Nebr,, heard the explosion. W. R. Holmes, telegraph operator, said he was sitting by the depot window when the sky lighted up “as clear as day” and he saw the meteor flashing across the sky. He described it as bluish white in color. Some homes in Lincoln were re- ported slightly shaken by the ex- plosion. -— RABBI OFFERS SERIES Rabbi Solomon H. Metz will begin a series of lectures on the future of religion in America with a talk on “This Age of Confusion” at serv- ices in the Adas Israel Synagogue, Sixth and I streets, tomorrow at 8 p.m. After the services Louis Ottenburg, attorney and student of biblical lit- erature, will lead the open forum discussions on “The Modern Applica- tion of Biblical Ideals.” ONLIQUOR STUDIED{KENNAMER INSISTS U. S. Agents Seek to Obtain|Youth Also Says He Killed Evidence of Wholesale Smuggling. By the Associated Press. Gorrell While Trying to Feil Extortion. By the Assoctated Press. In an effort to obtain legal evidence| TULSA,. Okla, December 13.—An of wholesale liquor smuggling opera- | effort to seal the lips of an important tions which are reported to have cost the United, States millions of dollars witness in the defense of Phil Ken- in customs’revenue during the days of | Pamer, charged witly the murder of prohibition, Federal agents are search- | John F. Gorrell, was blamed today by ing Canadian tax records. United States customs officials, under the direction of the Treasury’s the 19-year-old defendant for the death of Sidney Born, jr., found fatally office in Montreal, are studying offi-| wounded several days after Gorrell cial books in Ottawa simultaneously | was slain. with the Dominion’s own inquiry into| Disclosing in detail the story he liquor tax frauds. Estimate Not Made. plans to tell all at his trial, Kennamer, son of Federal Judge Franklin E. Ken- namer, said he killed Gorrell in self- Treasury officials declined to esti-|defense after Gorrell learned Ken- mate how many, millions may be re- | namer intended to thwart an extortion coverable as a result of the present|plot planned against the family of investigation. But the value of liquor | Homer Wilcox, sr., wealthy oil man. smuggled into this country during 13 years Of prohibition mounted into hundreds of millions. Says Born Murdered. “Born was murdered,” Kennamer Under Canadian law, Dominion dis- | declared in an interview. “I know of tillers received a rebate of the $7-a- gallon excise tax on liquor marked for export. Just now officials on both sides of the border are trying to dis- cover how much of the liquor on which Canada granted such draw- backs actually paid import levies to the United States. ‘Tax During Prohibition. During prohiibtion, the American tax was $1.10 a gallon and the tariff $5 a gallon. This would mean the United States has a claim of $6.10 against every gallon proved to have been smuggled in without payment of tariffs and taxes. To recover such amounts found due, it was expected the United States would bring actions against properties in this country owned by any Cana- dian distillers found invoived. A num- ber had large assets here. DOG GIVES LIFE FOR 3 Body Found in Basement After Family Escapes Fire. 3IOUX FALLS, 8. Dak., December 13 (#)—Scotty, a year-old terrier, was dead today, but he was credited with saving the lives of three persons. When fire broke out in the base- ment of the S. P. McKenna home shortly before midnight Scotty barked so furiously he awakened Mc- Kenna, his wife and daughte: 1f You Think YOU Have F1 PROGLEMS Qur hearts go out to you as you struggle with your Christmas gift problems. What to give and where to get it? We think we've done something about it . . . . but that's where OUR problem comes in . ... how, in just a few days, to tell you and 500,000 other Washingtonians that we now have two entirely new sales floors . . .. that we have the largest gift assortments in our history . . . . and that you will find unusually wide selection. three persons who would have reason to do it and who are capable of it. “Born could have helped my de- fense and he may have talked too much of what he knew of other things.” Police hold the theory that Bornm, 17, son of a college professor, com- mitted suicide, while Sheriff Charles Price believes the youth was murdered. Kennamer said he learned early in September of a plot to kidnap either the son or daughter of the Wilcoxs S 2N in a Catalin Cigarette Box. Both for . up Combination — Face Powder, Rouge, Lipstick. —the very spirit of Paris in the evening. . Talcum 'powder, toilet water, and bath oap. . tains every manicure need, in- cluding Oily Polish Remover. Powder, Single Compact, Talcum and Perfume. + « for HIM ing Cream, Talcum, Shav- ing Lotion, Razor Blades. strong, durable aluminum— for use in home or office. Plated Gillette Safety Razor and five Gillette Blue Blades parent pen with a gauge that tells when to refil. “face-happy” all year with aSegal DeLuxe Shaving Set . CARA NOME FACE POWDER 2.00 HUDNUT'S MARVELOUS Make- 2.00 EVENING IN PARIS PERFUME 1.10 COTY BATH LUXURIES SET— 2.75 } CUTEX MANICURE SET Con- 89¢ SHARI COMBINATION — Face 5.98 LAVENDER GENT'SSET—Shav- 1.49 COCKTAIL SHAKER—Made of 49¢ and later suggested that an extortion note would be better. Tells of Kansas City Trip. He told of a trip to Kansas City, where he said he planned to obtain evidence egainst Gorrell, a 23-year- old dental student. Gorrell, he re- Iated, wrote the extortion note and instructed him to mail it. This he did not do, he sald. Meeting Gorrell here Thanksgiving night, Kennamer said he entered the latter’s motor car and started driving. “Gorrell asked me how the ‘shake’ was coming along and I told Lim it wasn't coming along at all,” Ken- namer said. ““What do you mean?’ Gorrell ased. Says Pistol Failed to Fire. “‘I mean there isn't going to be any extortion,’” I replied. “‘Who's going to stop it?* he asked. “‘Tam,’ I said.” Then, Kennamer declared, Gorrell suddenly drew a pistol, pointed it at his head and “clicked” the trigger. “I don’t know who was more sur- prised,” Kennamer said, “me at his action or he at the gun's failing to explede.” They wrestled for the pistol, Ken- namer said, and it was discharged. The second shot was fired almost in- stantly as the car struck a curbing, he said. Outdoor Tree Lights $1.35 Indoor Tree Lights 55¢ k. NOW !! X MUDDIMAN & 911G St. Nat'l 0140-2622 Organized 1888, HALF POUND BOXES HEAVY COATED SIX KINDS TO CHOOSE FROM 10 CTRICAL LIANCES Fully Guaranteed ELECTRIC TOASTER —with cord and plug— m _plated. Flip- type. D.” C. Svecially cially prieed .. .. 98¢ ELECTRIC FLAT IRON ord and Half Pound Box & — —with 6-1b, Box of 25 Sandwich TOASTER practical gift that will vy sreat deal of o a great save of time. With this le Electric Sandwich Box of 50 You'll known ings o An ideal gift. bsorbs oils. A fiters, GILLETTE Offers: A fine Gold- 49¢ INK-D-CATOR PEN — A trans- 1.00 SEGAL GIFT SET—Make him 1.98 ESQUIRE MEN'S SET Consists of Bowl ender Shaving OCOLATES Princ‘e Albert, 1 Ib. tin. ... 79¢ Sir Walter Raleigh, 11b. tin. 89¢ Granger Rough Cut 1 Ib. tin. 75¢ Garcia Grande Cigars Queens Size TWO BOYS DIE IN FIRE GADSDEN, Tenn, December 13 (#).—Two small children were burned to death late yesterday in a fire that destroyed the farm home of Jimmy Davis, 3 miles south of Gadsden. Richard, 5, and Eugene, 2, sons of Mr. and Mrs. Davis, were in the house - alone when the fire broke out. They were burned fatally before their mother, at a neighbor’s home about 200 yards away, could reach them. ‘The father was cutting wood about a mile from the residence. Next American Sallings to Europe MANHATTAN Jan. 3 and Jan. 30 | | World's Fastest Cabin Liners WASHINGTON Jan. 16 and Feb. 14 | ToCobh,Plymouth, Havre and Hamburg. The popular Pres. Harding and Pres. Reosevels sail on alternate Wednesdaysto the same ports. 8.8. Pres. Roosevelt.. Dec. 27, Jan. 28 8.5. Pres. Harding . ... .Jan. 9, Feb. 6 NEW LOW EXCURSION FARES TO EUROPE and return '1 10 Third foraslittleas Class In TOURIST and THIRD CLASS the round trip fares permitting 13 days ia Europe will be 75 the oneway race on all sailings util April 30, 1935. Forparticulars consult your local agentor UNITED STATES LINE< Roosevelt 8. 8. Co. Inc, General Agent: Company’s Office, 71:3 11th St. N.W. 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