Evening Star Newspaper, December 20, 1934, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair and colder tonight, minimum temperature about 31 degrees; tomorrow partly cloudy; moderate west winds. Temperatures—Highest, 51, at 2 p.m. yes- terday; lowest, 40, at 8 a. Full report on page A-T. ClomzN Y. Markets, Pag No. 33,105. post office, W RIOTERS QUELLED AFTER TWO DIE IN LYNCH ATTEMPT $150,000 Court House at Shelbyville Is Burned. Troops on Guard. MOB FAILS TO GET PRISONER ON TRIAL Launches Three Attacks Building—Reported Kin of Girl in Case Killed. (Copyright, 1934, by the Associated Press.) SHELBYVILLE, Tenn., December 20.—Death, fire and destruction, riding the fury of a mob, brought 600 Na- tional Guardsmen into this riot-torn town today to quell any further racial outbreaks. Militia guns killed two and wounded | seven yesterday as the mob ran wild | on the scent of a lynching, fighting to carry off a colored man who already had been led to safety under their very eyes. Four hours after Guard bullets had stopped the assault against the court house, the building was burned down, at a loss estimated at $150,000. There was quiet early morning. Policemen and fire- men chatted about the happenings in their headquarters opposite the court house, or strolled about the square inspecting the bleak brick skeleton which a few short hours be- fore had been Bedford County's crowded structure. The embers smol- dered during the night. Threaten to Burn Jail. Dr. James L. Morton, county health officer, said he was informed the mob intended to fire the Bedfard County Jail, after offering a respite to let him remove the 20-odd prisoners. Dr. Morton said he would take advan- tage of the offer. The mob first set the hour of 1 a.m. today for the firing of the jail, but the threat was not carried out. The crowd, partly dispersed, was still in & menacing mood, occasional shots be- ing heard. Four trucks of an original detach- ment of 111 National Guardsmen, who brought the mob’s quarry here for trial yesterday, were overturned and burned. E. K. Harris, the 22-year-old de- fendant, was to go on trial for as- sault of a 14-year-old white girl. Dis- guised as a Guardsman and wearing a gas mask, he was led through the mill- ing crowd from court to a waiting au- | tomobile. An escort of militia sped him to Nashville for safekeeping. Only after their car pulled away from the court | house did the mob sense the ruse. Cheated of their prey, the enraged men turned upon the Guardsmen as they filed from the court house and marched out of town. They hurled stones and yelled insults at the militia- men. Reported threats of vandalism on the city water plant caused a police guard to be thrown around it, and there were sporadic small blazes, all of them extinguished. The dead were Raleigh Edwards, | 30-year-old painter, who was shot and bayoneted, and an unidentified white man. His body was taken away from the hospital before his identity could be_established. Rough treatment was accorded any colored man who dared appear upon the streets and threats of an in- vasion of the Negro quarter were rife, but no damage or casualties were reported from that section. A small hotel for colored people was set afire, but the blaze was extinguished quickly. Early last evening fire broke out in the left wing of the courthouse. A policeman said a slight explosion pre- ceded the first blaze. This he be- lieved to have been from an igniting | can of gasoline. Handicap Firemen. Two hose lines were available, but for almost an hour only one of these could be brought into play. Members of the mob, firemen said, used every conceivable device to prevent the fire fighting. Those seriously wounded by the guardsmen included Pat Lawes, re- ported by friends to be a relative of the girl involved in the case. He was shot through the head, and is not (Continued on Page 3, Column 3.) HUNGER STRIKER BEGINS 23D DAY OF FASTING Insurance Man Protests His Con- viction for Selling Un- licensed Policies. By the Associated Press. WHITEVILLE, N. C., December 20. —B. E. Cox, 43-year-old man, entered the twenty-third day of » “hunger strike” today in his county jail cell. Cox, president of the Home Pro- tective Association of Jacksonville, Fla., is refusing food in protest against his conviction of violating State in- surance laws. He was fined $200 and costs for selling insurance for an unlicensed company. Upon default, he was sen- tenced to 12 months on the road. He appealed and is awaiting trial. Postmaster of Flooded by As usual, one of the busiest and hap- piest men in the country at this time of year is James F. Martin, the per- ennial postmaster at Santa Claus, Ind. Thousands upon thousands of let- ters, cards and packages are pouring in on the little crossroads store where he maintains the celebrated postal station, there to be reconsigned to their ultimate destination bearing the Eanta Claus postmark. ‘The Post Office Department has ar- ranged for extra clerk hire, and the staff is functioning with the facility of a metropolitan force. As high as 13,000 pieces of mail have been handled at Santa Claus in a single day, Martin told Ike Gregg of the Information Service of the Entered as second class matter on | throughout the | insurance | Post | became & m. today. es17,18&19 ashington, D. C. Roosevelt “Bluff” Accusatwn Creates Article in Rengo Engluh Service Disturbs Diplomats. By the Associated Press. TOKIO, December 20.—A tempo- rary sensation resulted in diplomatic circles today from the circulation in the English service of the Rengo (Jap- anese) News Agency of an article which said the policy of President Roosevelt’s administration was one of “bluff.” The article, controversial in char- acter, attempted to prove that the United States would not be able to outbuild Japan should a naval race follow termination of the Washington treaty. The Japanese naval personnel, the article continued, is superior to the American in moral courage. Officials of the Rengo Agency, how- ever, declined to accept responsibility for the views set forth in the article, explaining they came from an anony- mous and unidentified naval critic. Rengo denied there was any official inspiration behind the article. LONDON, December 20 (#).—A be- lief that Anglo-American relations were strengthened by a speech of Sir John Simon. British foreign secretary, reviewing the tri-power naval con- versations, was expressed today by the American delegation. The reaffirmation by Sir John of the thesis that existing naval treaties pro- | vide equality through security pleased | Norman H. Davis and Admiral William ington. | The Americans closed their official | engagement in connection with the | conversations with a conference with | King George. 350 FACING LSS OF TREASURY 106 Made Here Through Ap- portionment Law. Approximately 350 employes of the Treasury Department from the Dis- trict of Columbia and nearby States are being forced out of service—200 on December 31—by operation of the apportionment law which allocates Government employment by States. The first group to go are from the Division of Loans and Currency while the others are from the treasurer's office, where the removals are being made as fast as fit replacements can be obtained. Protest Made. The situation was made known to- day, after Representative Jennings Randolph, Democrat, of West Vir- ginia, and members of the Maryland House delegation had protested to the Civil Service Commission in behalf of their constituents who are being affected because their States have more than their quota of residents in Government employment. The commission which has invoked | the law, holds that it is legally im- possible to do otherwise. The employes were taken on sev- eral onths ago on a temporary basis, and consequently the quota law did not apply. Now the commission holds that the work is continuing on an indefinite basis, and that consequently the iaw must be invoked. In the Division of Loans and Cur- rency 73 District of Columbia employes are caught in the ouster movement; 35 from Virginia, 26 from Maryland and 10 from West Virginia, accord- ing to figures obtained by Representa- tive Randolph. .There is a scattering from other States. Virtually all of these positions will have to be filled from underquota States if possible, al- though some reduction of force is being made on account of diminution of _work. In the Treasurer's office it is in- tended to fill 150 places involved. Work Declared Handicapped. The Treasury has sought to hold the employes in service, conterding that the work would be handicapped by making widespread changes. Some employes from over-quota States are managing to hold on because civil service registers for the particular type of employment concerned do not have eligibles from other States. Those employes to be dropped, prin- cipally clerical in the lower grades, were in a large group obtained by the Treasury about a year ago, when haste was a prime requisite and consequently no attention could be paid to the re- striction on residence. Only the highest ranking eligibles on the civil service lists were taken. Ordinarily such appointments are lim- ited to six months, but they were re- tained over this period. Then the Civil Service Commission decided that the law must be invoked. o SHIP LOSES RUDDER NEW YORK, December 20 (A).— The Coast Guard and Radio Marine Corp. reported today they had picked up an § O S from the steamer Sev- erance, which stated the Severance had lost her rudder 18 miles south of Fire Island Santa Claus Christmas Mail | Office Department, three years ago, in recounting some of the highlights of the Christmas rush. And there was set down a_little- known side of this annual event. Thousands of children address their pleas to Santa Claus, and Martin goes over every one of these communica- tions and readily recognizes need where he sees it, turns them over to various charity organizations, where they do not go unheeded. Martin has been poctmum at the Indiana hamlet for something like 40 years. Formerly a fourth-class office, the Christmas receipts grew so high, that the office was elevated to the third class, and the postmastership presidential appointment. . ch WASHINGTON, D. C, NEW YORK POWER H. Standley, the delegates from Wash- | = | Numerous Changes Will Be| IN UTILITIES FIGHT More Municipal Enterprises in Other Parts of State Also Loom. LA GUARDIA REMAINS FOR FURTHER TALKS Compromise to Permit Private Firms to Continue Operation Is Hoped For. By the Assoclated Press. The fight which finds President Roosevelt and Mayor Fiorello H. La Guardia waving a ‘“yardstick” at ! power leaders took on broader signifi- | cance today when it was learned their threat implies greater possibilities than just a street lighting plant in Manhattan built with Federal funds. Though everything is tentative— :administration officials declare it hinges on proof that municipal plants can operate cheaper than private ones—the smiling New York mayor dropped two definite hints: 1. That New York City might go into the power business to sell elec- tricity direct to consumers More Enterprises Seen. 2. That “many, many more munici- pal enterprises” in other parts of New York State may be created if power interests “continue to demand uncon- scionable rates.” The short, vehement “fusionist” who beat Tammany remained here today to confer with Secretary Morgenthau, Relief Administrator Hopkins others. After talking yesterday with President Roosevelt and Secretary Ickes, he was exuberant over the out- look in his fight with the power con- cerns. lieved the door was not closed to a compromise in which private concerns might continue to supply the city. The question how much money would be loaned to New York—if the street lighting plant is approved—was still undecided. Secretary Ickes, the public works administrator, said $15,- 000,000 had been mentioned as the cost. “That,” said La Guardia cryptically, “is only the angostura in the cocktail.” Questioned on Cost. Questioned further as to how much the public power system would in« volve, La Guardia said: “If the utilities behave like law- abiding citizens, we will follow one plan. Otherwise—." Asked about that “otherwise,” he city, if it considered the step neces- sary, might aim at selling electricity direct to homes. Of the $15,000,000 mentioned, $3,- lights to Federal buildings in New York, the rest for city purposes. La Guardia said he had “reason- atle assurances” from Ickes that a loan to New York would be approved. Ickes said the application would have to be made in regular form, with proper security. Securities Sell Off. “That’s an awful lot of money just now,” he added. As the Roosevelt-La Guardia cam- paign for cheaper rates took the form of this threat to the very heart of the private power industry yesterday, utility securities sold off. La Guardia took the view that perhaps 40 per cent could be cut off the city's $14,000,000 annual bill for power and light by a municipal plant. There were also definite indica- tions that any such plant, if built, would be a steam plant. One official who preferred not to be quoted said the President’s Power Policy Commit- tee had decided that any hydro- electric development would be too far away from the city to be prac- ticable. President Roosevelt yesterday indi- cated his belief that the problem of municipal vs. private operation was one of arithmetic—e question which could be operated more cheaply. He said he would authorize Government funds for public plants in New York or other cities if given proof that they were cheaper. PEPCO RATE CUT SEEN BY ROBERTS Members of Utilities Body Also Forecast Reduction Next Month. ‘The rates of the Potomac Electric Power Co. will be reduced to some degree next month when the annual adjustment of rate schedules is made on the basis of the sliding scale ar- rangement, it was predicted today by members of the Public Utilities Com- mmlon and People’s Counsel William A. Roberts. "All declined to estimate how much the rates would be cut, stating that this would depend upon details of studies now being made by the com- mission as to profits and costs of the company during the present year. “I am definitely convinced there is not the slightest justification for an increase in rates for power, but on the contrary the rates should be de- creased by a substantial sum,” said Mr. Roberts. “Under existing rule, rates cannot be increased unless the rate of return falls below 6.75 per cent of the weighted average rate base for each of two consecutive years or unless it falls below 6.5 per cent of the rate base for any consecutive 12-month period.” Hl added that reports for the year to date have not shown a return be- | examine “on its merits” and ; Observers here, however, be-| explained for the first .ime that the! 500,000 would be to furnish power and ; ¢ Foenin WITH SUNDAY MORNING EDITION THURSDAY, DECEMBER 20, 1934—SIXTY-FOUR PAGES. PRESIDENT OPEN OF BIG BUSINESS Roosevelt Ready to Study Proposals of White Sul- phur Springs Conference. CONCILIATORY TONE IS SEEN IN PROGRAM Several New Dealers on Capitol Hill and Governors Hit Gen- eral Suggestions. (Copyright, 1934, by the Assoclated Press.) President Roosevelt was pictured by high authorities today as ready to the program for recovery which captains of in- dustry are bringing here after a three-day conference at White Sul- phur Springs, W. Va. The opinion expressed in official quarters was that the President would be glad to receive any “co-operative suggestions” from business, labor, farmers and other groups as he puts his ideas on paper for the Congress meeting January 3. Mayors to Put Up Fight. Another reaction to the platform of the “Business Conference for Re- covery” was the statement of the United States Conference of Mayors that it would “bitterly fight any at- tempt to hold up a work relief pro- gram at the coming session of Con- gress.” The business group has op- posed public works for relief purposes. At the same time, Chairman Ken- nedy of the Securities and Exchange Commission said it was too early yet to tell whether the 1933 securities act should be amended. That is for the future to disclose, he added. ‘The business leaders had advocated revision on the ground the act was retarding the flow of capital. The mayors' statement said “busi- ness now suggests we keep the unem- ployed in storage on a starvation basis | until such time as private business has the opportunity to exploit human re- sources again.” It was issued after a conference be- tween Harry L. Hopkins, relief admin- istrator, and a conference subcommit- tee including Mayor La Guardia of New York. Other commentators viewed the platform of the business group as con- ciliatory in tone, although clashing in certain respects with ideas of some high New Dealers and with some New Deal trends. ‘While the White House awaited a copy of the platform of the 90 busi- ness leaders, expected to be brought here today or tomorrow by C. B. Ames and George Mead, several New Dealers on Capitol Hill took shots at the pro- gram. Many, including high Repub- licans, withheld comment for the time. Many Governors, noting the busi- ness men'’s suggestion that the relief burden should be returned to the States, said the time for that has not yet arrived. Some assailed the proposal. For instance, Gov. Bryan of Nebraska called it “unfair and un- patriotic.” The Capital noted with interest that the White Sulphur Springs Con- ference decided on a continuing or- ganization, composed of such promi- nent men as John J. Raskob, Owen D. Young, heads of the Chamber of Commerce of the United States and the Manufacturers’ Association, to further its principles. Other Proposals. There also was wide discussion of the principles, which included: 1. N. R. A. should be continued on an emergency basis for a year, with the continuance of new codes condi- tioned on voluntary action by the in- dustries. Every code should contain hours and wages provisions, ban child labor and “safeguard both labor and employer by giving to labor the right to deal with employers either in- dividually or collectively directly or through representatives of -their free choice without intimidation or co- ercion of either party from any source.” 2. The Government should give evi- (Continued on Page 5, Column 1) Readers of Advertising A recent questionnaire sent by a Washington department store to its charge account customers shows that adver- tisements in The Evening Star are read as a shopping guide in 2,233 or 83% of the 2,682 homes from which re- plies to this question were received. Of these people 1827 said that they did not use either of the two other afternoon papers as a shop- ping guide. Yesterday’s Advertising (Local Display.) The Evening Star. Lines. 58,449 22,391 22,055 2nd Newspaper . 3rd Newspaper. 4th Newspaper. . .. 13,440 Sth Newspaper... 8,675 ) 66,561 By using The Star as their outstanding advertising me- dium, Washington merchants present to readers of The Star the best and most varied’ ifems of attractive merchan- dise to be found in the local stores. Total (xéwdupers o Star FHF BUT I'LL ALWAYS REGRET THAT | DIDN'T SEE THE BIG MAIS. IDENTIFIED IN'NEW HOLD-UP Robbers Get $40,000 Cash in Philadelphia and Escape. By the Associated Press. PHILADELPHIA, December 20.—A robber band of five, one of whom police said they believe may have been the fugitive killer, Robert Mais, in- vaded a branch office of the Phila-| delphia Electric Co. today, scooped | up between $40,000 and $48,000 ia| cash and fled in a waiting car. Two of the 60 employes held up by the bandits partially identified the { robber leader as Mais, who shot his | way to freedom while held for execu- tion for the slaying of a mail em- ploye in Virginia. The robbers timed their invasion to | take place just as 60 employes of tue company wgjted in front of the cash- have their pay checks As the robbers fled the cries of the employes held up attracted the atten- tion of Early Smith. He tried to stop them, but one of the hold-up men hit him over the head with the shotgun and another shoved him through a glass door. He was badly cut. FATHER COUGHLIN MADE | AUTO BOARD NOMINEE Priest Is Candidate for Collective Bargaining Group in Cadillac Motor Co. By the Associated Press. DETROIT, December 20.—Compila- tion of votes cast in yesterday's “primary” to select candidates for a collective bargaining board in the Cadillac Motor Car Co. plant revealed today that the Rev. Father Charles E. Coughlin was one of the 32 nomi- nees, Members of the Automobile Labor Board, which conducted the balloting as the first of a series of elections in auto plants, indicated the militant priest of the Shrine of the Little Flower would be asked whether he wished to enter the election, Decem- ber 28, when the bargaining board members will be chosen. Of the 1,593 ballots cast, 1,176 gave no preference for any specific union. . PARTY QUARTERS IN CUBA BOMBED Batista, Mendieta and Cabinet Confer on Methods to Check Terrorism. By the Assoclated Press. HAVANA, Cuba, December 20.—A bomb exploded early today at the entrance to headquarters of a political party headed by Miguel Mariano Gomez, mayor of Havana. Buildings were shaken. ‘While Havana's nerves were kept on edge by the bombings, Fulgencio Ba- tista, commander in chief of the Army, conferred with President Carlos Mendieta and other members of the cabinet at Mendieta’s country home, 20 miles from Havana. Matters concerning public order, in- cluding a proposed change in the con- stitution to permit immediate execu- tion of terrorists, were to be discussed, said Dr. Cosme de la Torriente, secre- tary of state. Military posts are searching all in- coming vehicles because of reports government opponents planned to en- ter the capital by highways and at- tack it. TWO P. W. A. EMPLOYES OUSTED FROM SERVICE By the Associated Press. Officials of the Public Works Admin- istration said today two employes had been dismissed after an inquiry by the Interior Department’s Investigating Division. One was discharged for inefficiency and misconduct, it was added, while the other was for allegedly falsifying an expense accouni in con- nection with & trip to California last Spring. in| ON CapPiToL HILL!' WELCOME /ff_‘:@ Holiday Closing Order for Federal Workers to Stand | Those Desiring Full Day | May Have to Use Part of Leave. If Federal employes want a full holiday the day before Christmas and before New Year they prob- ably will nave to arrange to take some of their annual leave, it appeared today It was considered unlikely at the White House that President Roose- velt would reconsider his executive | | order proclaiming a half holiday for Government employes on those two | | days. December 24 and December 31 a full | holiday, it was indicated he thought | that a matter for department and agency heads to pass on by arrang- | ing to allow a day of annual leave in each case for those who wish it. Those advancing the movement to have Mr. Roosevelt reconsider his executive order propose that a full- day holiday on the day before Christ- mas could be made possible without any loss to the Government by giving the employes the privilege of working a full day on the day before New Year, instead of taking the half holi- | day granted in the President’s order. ANTHGAMING BILL PRESSED BY KING | Chairman of Senate District Committee Confers With Garnett. (Note: Acceding to a recent request by United States Attorney Garnett, The Star, the Post, the Times, the Herald and the city’s four broadcasting stations are re- fusing to aid the numbers racket by dissemination of the race total numbers with which the game here is conducted. Publication or broad- casting of such totals is of no in- terest outside the numbers racket.) Anxious to make the District anti- gambling bill one of the first meas- ures considered at the coming ses- sion of Congress Chairman King of the Senate District Committee con- ferred today with District Attorney Garnett. “Gambling, particularly the num- bers zame, is becoming such a vicious habit that Congress should enact leg- islation to enable the authorities to cope with it,” Senator King said in reiterating his intention of giving the matter early attention in his com- mittee. On motion of Senator King, the Senate last March passed a similar bill, out 1t failed to pass the House. The Utah Senator asked Mr. Gar- nett if he knew of any changes that should be made in the former bill. It was indicated the measure to be introducad in January will be sub- stantially the same as the one the Senate pervicusly passed. Senator King said it will be studied in the meantime;” however, to make sure it is sufficiently broad to meet condi- tions. The district attorney, according to Senator King, has sent the anti- gambling pill to Corporation Counsel Prettyman to be included in the group of iocal measures to be transmitted to the Capitol by the District gov- ernment when the session gets un- der_way. The bill passed by the Senate last Bpflnz sought to accomplish two things: First, definitely include the numbers game in the list of gambling methods covered by the existing code; second, to assist authorities in break- ing up commercial gambling estab- lishments by making the possession of gambling equipment, slips or other devices prima facie evidence of in- tent o violate the law. Guide for Readers Only '4 Shopping Days Until Christmas | day that neither the Constitution nor Yesterday’s Circulation, 124,336 Some Returns Not Yet Received. () Means Associated Press. LONG LOSES FIGHT | INDISTRET COURT Finds Neither Constitution Nor Common Law Affords Him Immunity. Louisiana’s Senator Huey Long| learned in District Supreme Court to- the common law affords him any protection from a civil suit for libel. | When Gen. Samuel T. Ansell filed | & $500,000 libel action against him a | stitution protected a member of Con- | | gress from “arrest” while attending a session of the legislative body. De- | feated in the lower courts, the Senator \ carried this point to the United States | Supreme Court, which ruled that serv- ice of civil process did not constitute | an arrest and that the Senator en- joyed no constitutional immunity from the former. Benator Long. contending the high- est court had ruled only on the con- stitutional question, then filed a mo- | tion in the District Supreme Court to| quash the service on the ground that | the common law afforded him this protection, if the Constitution did not. | * This proposition was argued vigor- | ously on behalf of the Senator, but Justice Peyton Gordon ruled that the | Louisiana legislator has no refuge in | either the common law or the Con- | stitution. This means that the Senator, un- less he takes anothe: appeal, will go to trial on the merits of the case in | the pear future. —_— FRANCE ATTEMPTS TO PREVENT CRISIS | Major Business Debacle Seen in Threatened Crash of Citroen Works. By the Associated Press. PARIS, December 20.—The cabinet | attempted today to avert a major busi- ness crisis as a result of the threatened | crash of the Citroen Auto Works, one of France's biggest firms. Andre Citroen, head of the company and France’s “Henry Ford,” filed a petition for a receivership while one of his creditors asked a court to place the firm in bankruptcy. Several plans to rescue the company have failed because Citroen, who made | the 2,000,000,000 franc (approximately $130,000,000) company a “one-man” | concern, declined to confine himself to | manufacturing and allow banks and creditors to handle the finances. Receivership proceedings were di- rected only at the parent company, but | 13 subsidiaries and six affiliated corpo- rations are largely dependent upon it. Their widespread indebtedness, esti- | mated at more than half a billion | francs for the parent cmpany alone, | it was feared, would cause the collapse | of scores of other houses unless the | government arranges for refinancing. —_ Hirohito Sees Troyanovsky. TOKIO, December 20 (#).—Em- peror Hirohito granted an audience today to Alexander Troyanovsky, So- viet Amoassador to the United States, who is en route to Washington from Moscow. Fence Around “ | explained. TWO CENTS. OVERLAPPING TAX STUDY 15 ORDERED BY THE PRESIDENT Roosevelt Directs Probe of Federal, State and Municipal Systems. NATIONAL CONFERENCE EXPECTED TO BE HELD Morgenthau Will Take Charge, and Shortly Will Name Staff to Make Inquiry. By the Associated Press. In a move intended to prevent the overlapping of taxes, President Roosevelt today directed the Treas- ury to investigate the Federal, State and municipal tax systems. A national conference on taxation next Summer may result from the inquiry. Secretary Morgenthau disclosed the plan today and shortly will name a staff to make the inquiry. “The study will look forward to zones of taxation and eliminating overlapping,” Morgenthau said. “It will be a long-range study, with the possibility the President may call a conference next Summer of the va- rious agencies involved in taxation. “It will include the question of who collects taxes the most economically. | It might involve the question of the | Federal collection of all income taxes. Gasoline Tax Held Example. Morgenthau said the gasoline tax was an excellent example of a levy employed by both Federal and State and sometimes local governments. Investigators will look into the ques- tion of whether in such a case the | Federal Government should make all the collections and then distribute revenue back to the States and local governments. The questiont of tax-exempt securi- ties also will receive attention, along with duplication in the assessment of liquor taxes. The Treasury for some Although the President has not | year ago, Senator Long protested that | years has favored a constitutional been officially approached to make he could not Be sued because the Con- | 3mendment to eliminate the exemp- | tion from taxes of some Federal and State issues. Broadening Federal inquiries into |bank credit conditions, Morgenthau also announced the Treasury would make a special study in the Cleveland | Federal Reserve district to supplement ‘m recent inquiry in the Chicago re- gion. The Cleveland study will be made by Dr. Jacob Viner and Prof. Charles O. Hardy, the two men who made the Chicago inquiry. Study May Be Extended. Morgenthau said there was “some possibility” of embracing the whale cnuntry later. “The reception of the Viner-Hardy report was so good,” Morgenthau said, “that we have determined to do an- other after January 1. We have chosen the Cleveland Federal Reserve district. The inquiry will be into the avail- ability of bank credit, but we will add new emphasis on the real estate mort- gage situation as it affects banks.” Morgenthau said the new inquiry will give the Treasury an idea of bank | credit conditions in January and Feb- ruary as compared with those of last September when the Chicago study was made. Morgenthau said the study, as be- fore, will be jointly under the Treas- ury, fthe Federal Reserve Board. the Reconstruction Finance Corp. and the Deposit Insurance Corp. As a result of the inquiry into the Chicago district, Viner and Hardy among other things recommended con- tinuation of direct Federal lending to | industry until bank lending becomes | more liberal. | In reply to questions, Morgenthau said the sales tax, used by a number of States, probably will receive at- tention in the tax inqury. “Anything that has to do with Fed- eral, State and municipal taxes will be considered,” he added. The Treasury head referred to ref- erences to overlapping taxes made by President Roosevelt while Governor of New York. A special study was made in the State. The name of Mark Graves, New York State tax commissioner, was mentioned in connection with the sur- vey, but no definite selections have been made. Mayors Pledge Support. Spokesmen for the United States Conference of Mayors pledged support to Morgenthau in the tax study. Mayor La Guardia of New York, vice president; Mayor T. Semmes Walmsley of New Orleans and Paul Bettors, secretary, discussed the prob- lem with Morgenthau. “We took up the subject of multiple tax collecting agencies,” La Guardia “We feel the study should be made and all are going to help on it. Our conference adopted a reso- lution for study of Federal, State and municipal taxes to get each into their spheres.” Walmsley said problems of munici- pal financing could not be solved until “we get every one out of the local tax feld.” Jimmy’s Place” To Be Torn Down by District A good portion of the high fence | which for years has screened activ- | ities around “Jimmy's Place”—hiding from view the large parking lot pro- vided for patrons of the notorious Bladensburg road gambling establish- ment—was to be taken down today by the District government. The move, however, is not a part of the District’'s gambling drive, since the gaming place itself is across the line in Maryland. Instead, the work is in preparation for construction of & new viaduct over the Baltimore & ©Ohio tracks and the laying of a section of Eastern avenue from trict. Ninety feet of this fence along Bladensburg road is to be removed as well as a similar stretch along the railroad and a gateway from the Dis- trict into the grounds of the estab- lishment. The District condemned the right of way for the 90-foot roadway for Eastern avenue about two years ago, Bids for construction of the viaduct are to be received January 7 and work is to be underway in February. The clearance of the roadway site is in preparation for this construction pro- gram. Before then the District will take up the portion of the private roadway to “Jimmy’s place,” which crosses the line of Eastern avenue.