Evening Star Newspaper, December 29, 1934, Page 4

ROOSEVELT MAPS STATEPWA. LAWS Moves to Open Benefits of Next Fund to Pennsyl- vania Towns. By the Associated Press. PHILADELPHIA, December 29.— President Roosevelt in a letter to Gov.- elect George H. Earle yesterday set forth a tentative legislative program | whereby Pennsylvania municipalities can “take full advantage” of a pro- posed new Federal public works pro- gram. The President outlined a suggested seven-point legislative plan to expe- dite action on the program, should Congress authorize it, and informed the Governor-elect that local com- munities will be expected to share in the cost of work relief under the pro- posal. The letter also said the President had instructed Interior Secretary Ickes, public works administrator, to place at the disposal of Pennsylvania the legal division of the P. W. A. for the purpose of suggesting required legis- lation by the State Legislature. Earle to Co-operate. Gov.-elect Earle immediately pledged whole-hearted co-operation with the Federal Government, to the end that every unemployed person in the State may be put back to work. The President, in stating the seven legislative suggestions, wrote that he was submitting them “for your con- sideration in formulating your legis- lative program.” The text of President Roosevelt's letter follows “My Dear Gov. Earle: “In the event that an additional public works program is authorized at the coming session of the Congress, I should like to see the municipalities of your State legally able to take full advantage of such a program. With this in mind, I have instructed Ad- ministrator Ickes to place at your dis- posal the Legal Division of the Pub- lic Works Administration for the pur- pose of suggesting bills which, if en- acted into law, would enable munici- palities of your State to secure the benefits of this phase of the recovery program. “Our experience in the past 18 months has brought to light the dif- ficulty of gearing machinery which has, served municipalities of your State adequately for decades to the speed with which the Federal Govern- ment must extend credit to achieve desired results. It has been found that revision of the procedure relative to municipal financing is essential, at least for the duration of the existing emergency. I wish to submit for your consideration in formulating your legislative program, the following sug- gestions: “l. Enactment of a temporary bond law for bonds to be issued to finance public works projects, which would shorten the period of time re- quired for notices of election and of public sale and would relax the ex- isting limitations on the power to pay debts. Such a law would be of uni- form application to all municipalities | and would confer additional powers # construct public works projects, to finance such projects by the is- suance of general obligation bonds, and to make such contracts with the Federal Government as may be deemed to be in the best interests of | the municipalities. . Permanent Amendments. “2. As an alternative to the above, enactment of amendments of a per- manent nature to the act of 1874 (P. T. 65) and other laws concerning | the issuance of bonds by the various classes of municipalities for the pur- pose of simplifying and clarifying the statutes relative to municipal financ- ing. “3. Passage of an act to put into effect Section 15 of Article IX of the Pennsylvania constitution specifically outlining the procedure to be fol- lowed in authorizing revenue bonds, and amending in certain respects the act of 1915 (P. L. 846). “4. Creation of authorities for all counties similar to the Allegheny County Authority, and the creation of municipal improvement authorities without power to tax, but with power to issue bonds payable solely from the income of revenue-producing im- provements, such as water, sewer and electric light and power systems, “5. Authorizing municipalities to engage in slum clearance, including condemnation of necessary lands, and the construction, operation and main- tenance of low-cost, housing, to make contributions therefor, and to enter into contracts wih the Federal Gov- ernment in connection therewith. Non-Profit Agencies. “6. Providing for the creation of non-profit public benefit corporations or agencies to provide for the electri- fication of rural communities with the assistance of the Federal Government. . Validation of bonds and other ations heretofore issued by mu- nicipalities for public works projects and sold to the Federal Government. “If you will write me how you feel about these suggestions, I will request Administrator Ickes to have prepared such bills as may be deemed ad- visable. “Quite apart from the above sug- gestions, I think it would be helpful if arrangements could be made whereby the Public Works Adminis- tration is furnished with copies of all laws enaoted at the forthcoming legis- lative session. This will materially aid the administration in advancing funds on approved projects. “Very sincerely, (Signed) “FRANKLIN D. ROOSEVELT.” P. W. A. WILL AID STATES. Best Types of Laws Suggested by Agency Here, The Public Works Administration is preparing instructions for Governors of States soon to have legislative sessions setting forth the best types of laws which may be passed to facilitate the P. W. A. program. The first of this type to come to Sir Lyman Poore Duff (left) chief justice of the Canadian Supreme Court, and Willis Van Devanter, associate justice of the United States Supreme Court, shown as they called at the White House yesterday. They are sitting as joint commissioners to adjudicate the claim of Can for $386,000 against the United States Government for damages arising from the sinking of the I'm Alone by a United States Coast Guard cutter, . —A. P. Photo. CURTIS TESTIMONY [ ALONE LINKED AVOIDED BY STATE T0 RUM RUNNERS Lindberghs Will Relive Har- rowing Night of Kid- naping. By the Associated Press. FLEMINGTON, N. J, December 29.—Col. and Mrs. Charles A. Lind- bergh are destined to relive, as wit. nesses in Bruno Richard Hauptmann's trial, the ordeal of their first son's kidnaping and death, but John Hughes Curtis of Norfolk, Va., will probably be denied a part in the drama. Curtis, the shipbuilder, who once was convicted of obstructing justice for posing as a Lindbergh “inter- mediary,” offered to testify against Hauptmann. Prosecutors, apparently intent on other aspects of their case against the Lindbergh kidnap-slaying | suspect, were cool to his suggestion. Though Curtis said he would swear that he has talked to Hauptmann and that the suspect showed him some of the Lindbergh ransom money At- torney General David T. Wilentz merely vouchsafed that the matter was “under advisement.” From an official source came a definite pre- diction that Curtis’ offer would be “flatly rejected.” Lindbergh Revisits Sorrow House. Col. Lindbergh, for the first time in more than two years, went sor- rowfully back yesterday to the Hope- well mansion where Charles A. Lind- bergh, jr., was stolen With four prosecuting officials at his heels, he paced through the empty rooms, telling calmly of the things he said and did on the wintry night of March 1, 1932, when the baby was taken from his crib to death. Patiently answering questions, in order to provide the prosecutors with a clear picture of the crime, he led them to the room where the baby lay, to the window where the kid- naper left a ransom note and finally to the living room where the father sat reading, unaware of the ugly crime. Rushed Out With Rifle. The aviator told how Betty Gow, the child’s Scotch nursemaid, cried out the news of the tragedy and how, carrying a rifle, he rushed outdoors and peered vainly into the blackness of a Sourland Mountain night. After the finding of the child’s body, three months later, the Lindberghs left the house and went to live with Mrs. Lindbergh’s mother, Mrs. Dwight W. Morrow, in Englewood. The roles which the aviator and his wife will play in Hauptmann's trial appear to be definitely fixed by the developments. Official sources again made it clear that members of the household, including Miss Gow, will be questioned only to establish the time, place and circumstahces of the crime. It was thus disclosed that Mrs. Lindbergh will be a witness. One official said she would “testify will- ingly” and asserted it was “only. nat- ural, her child having been kidnaped,” that she would want to tell what she knows of the case. ROME DISCOUNTS RUMOR OF NEW ETHIOPIA CLASH May Be Belated Echo of Previ- ously Reported Bombard- ment, Since Denied. By the Associated Press. light was the letter received yester- day by the Governor-elect of Pennsyl- vania from President Roosevelt. More than 40 States will have legislative sessions in the near future. One P. W. A. official said the P. W. A. has for months offered the services of its legal staff in preparation of necessary legislation. Already legal advice has been for- ‘warded to Governors or other recog- nized officials in 38 States as to how they might speed up public works allotments. Three Couples Given Licenses. FAIRFAX, Va., December 29 (Spe- tial) —Marriage licenses hage been issued in the office of the clerk of the Circuit Court to the following: Charles W. Martin, 29, Hamstead, Md., and Dorothy M. Constantine, 26, Owings Mill, Md.; Ernest Naedele Lawson, 24, and Henrietta McLaurin, both of ‘Washington, and Alfred B. Safranek, 27, Baltimore, Md., and Rebecca Ann Goldman, 26, Younn‘wn, ©Ohio. ROME, December 29.—A report from Addis Ababa that Italian and Ethiopian forces again had clashed along the border dividing Italian Somaliland and the African empire could not be confirmed in official cir- cles here last night. A spokesman for the government expressed the opinion the report was merely belated echoes of statements made some time ago in reference to Guerlogubi, the town where the clash was said to have occurred. Recently Ethiopia informed the League of Nations that Italian air- planes had bombarded Guerlogubi, an assertion which Italy denied. House Member a Father. MEMPHIS, Tenn., December 29 (#). —Representative Jere Cooper, Demo- crat, of the eighth Tennessee congres- sional district, was making proud speeches yesterday morning. A son, weighing 6); pounds, was born at 1:35 a.um. yesterday g Mrs. Cooper, Murder Thrown Around Vessel by American Agent. Background of By the Associated Press. A lurid account of pre-repeal liquor smuggling practices that portrayed the ip I'm Alone as the instrument of & New York rum-running syndicate was presented yesterday to the American- Canadian Judicial Commission. A background of murder and in- trigue was thrown around the case by former Senator George Wharton Pep- per, American agent, who is arguing against Canada’s claim of $386,000 for the sinking of the vessel off the Louisiana coast by an American Coast Guard boat in 1929. The two commissioners—Willis Van- devanter, associate justice of the Su- preme Court, and Sir Lyman Poore Duff, chief justice of the Canadian Supreme Court—heard the reading of & mass of affidavits as Dan Hogan, a New York racketeer alleged to have been a paft owner of the ship, sat in jail here ready to be called to testify. Hogan, convicted of conspiring to violate the national prohibition act, was brough here from Northeastern Penitentiary, Lewisburg, Pa., Thursday night under heavy guard. Ignorant of Ownership. Capt. John Randell, skipper of the I'm Alone, sat with members of the crew also awaiting the call to tes- tify. “Who owned the I'm Alone?” he was asked, after Pepper had declared the ship to be of American ownership and John Read, Canadian agent, had said it had flown the British flag legitimately and was of bona fide Canadian registry. “I don’t know,” the thin-faced sailor replied. “It is not the part of a master to inquire who owns the ship over which he has charge.” Evidence of the ownership of the vessel came in an affidavit prepared by Marvin J. (Big Jim) Clark, who, Pepper said, was murdered after he made his deposition. ‘The price paid for the vessel was given as $18,000, plus a $500 commis- sion paid to George J. Hearn of Mont- real, agent for the original owners, whose names were not given, and $300 or $400 later paid to make up for dif- ferences in the exchange. The trans- actions were made in October of 1928. Later Clark, his statement said, was in contact with the vessel off the | Gulf Coast, and on several occasions had unloaded the schooner off Trinity Shoals, on the coast of Louisiana, Rather Let Her Be Sunk, He said he had advised Capt. Ran- dell that he should never let the Coast Guard put a line on the ship, but rather let the vessel be sunk. He said he had unloaded the I'm Alone through contact boats and had brought liquor at various points in the vicinity of Iberia and Vermilion Par- ishes, Louisiana. Another affidavit read was from John Magnus, who said that in April, 1928, he had sold the I'm Alone to one Christian Iverson for $10,000. Another ‘affidavit from one Alex Bryan said that he had bought a $5,- 000 interest in it from Clark in a transaction executed at the Monte- leone Hotel, New Orleans, in 1929, Deciphered Code Messages. Mrs Elizabeth Smith Freidman, Coast Guard cryptanalyst, testified she had deciphered & number of code messages alleged to give instructions for sailing of the I'm Alone and dis- position of the cargo. Evidence indicated the messages were exchanged between Belize, Brit- ish Honduras, and New York. The call letter at New York was Mocana and the cable address at Be- lize was Carmelha. Edson J. Shamhart, the customs of- ficer, said the messages addressed to Mocana went to a hotel and were sub- sequently relayed by telephone to Hogan at an apartment (100 West Fifty-eighth street). Before the start of the hearings, which may last several days, Justice Vandevanter and Sir Lyman paid a call of respect upon President Roose- velt. Viscount Adatchi Dies. THE HAGUE, Holland, December 29 (P).—Viscount Adatchi, 65, justice and former president of the Interna- tional Court of Justice, died ‘yester- day in s hospital here. He had been gravely {ll for somes time. Says 90 Per Cent of 1929 Qutput Needed to Bring About Recovery. By the Assoclated Press. CHICAGO, December 29.—The ex- tent of the Nation's 1935 economic improvement, Secretary Wallace sald last night, depends upon industry and its policies. Addressing the American Statistical Association, he asserted that agricul- ture is interested because maximum progress im price raising has been at- t:’lned through reducing supplies. He added: ‘Any further increase in agricul- tural income, we believe, depends pri- marily upon a substantial increase in industrial production, which in turn means higher consumer purchasing power and greater national income.” Asks 90 Per Cent Output. If industry would produce within 90 per cent of its 1929 level, as agricul- ture will do next year, Wallace said, “Then not only agricultural prices and income will improve, but industry it- ;elf and the whole people, will bene- t. Industry is far from the “satisfac- tory” goal in production, which he de- clared to be abott 325 per cent of the level of 1900. Recovery efforts of the past two years have brought it up to about 205 per cent and to regain the volume necessary a 50 per cent in- crease in industrial production is nec- essary. “Until such an expansion takes place, there will continue to be a dis- parity between agricultural and in- dustrial prices,” he said. Suggests Lower Prices. He suggested that industries stimu- late buying and productign by lowering prices. Possibly “the dnly way for many industries to make a profit in 1935 will be by lowering their prices in order to increase their sales, thus reducing their overhead costs per unit,” he said. “Some business leaders contend that this 1s the only sound prescription for agricultural recovery, though they seem loath to apply it to industry. The truth is that though agriculture took that medicine up to 1933 in heavy doses, the prescription is not | nearly so well adapted to agriculture | as it is to industry. For industrial products, unlike agricultural products, gross returns tend to be greater for larger volumes than for restricted volumes.” FREED IN SLAYING CASE Man Previously Found Guilty Re- leased in Chicago. CHICAGO, December 29 (#)—Like his former wife, Beulah, who was ac- quitted of slaying her sweetheart 10 years ago, Alber. Annan, 49, was freed | yesterday after a charge of man- slaughter Bgainst him was nolle prossed by the State. He had already been found guilty by a jury which heard evidence in the death of Mrs. Ottila Griffin, 45, who was found dead in the apartment they shared, but weaknesses in the State’s case caused Judge Walter P. Steffen to grant a new trial and the prosecutors moved it be dismissed. Gertrude Stein left Baltimore 32 years ago after four years of un- successful toil for a medical degree at the Johns Hopkins University. After the long absence the writer returned for a short visit famous and internationally known. *She is pictured above at a desk in the home of her cousin, Julian Stein, at Pikesville, Baltimore suburb. Seated_on the floor near her is her second cousin. STATES ENRICHED BY LIQUOR TAXES; U. S. GETS $400,000,000 | (Continued From First Page) than that of any other State using | the State-ownership method of liquor | distribution. On a gross business of $11,000,000 | the State of Washington made a net | profit of $2500,000 despite the fact | that its stores were not opened until | March 31. The Montana liquor sys- | tem showed net profits of $850.000, exclusive of Christmas sales; and in | | Oregon, only other Western State to have a similar set-up, the profits were approximately $900,000. Virginia Nets $1,175,000. Virginia opened her liquor stores in May and by the first of November had | reached an approximate net of $1.- 175,000. In Towa, where operations started even later, the profit amounted to about $500,000 for the half year. The profit in Vermont was approxi- mately $150,000; in New Hampshire, $82,000, and in Maine where the sys- tem was inaugurated just over a fort- night ago, $5,500. Approximately six million dollars ‘was Ohio’s liquor Christmas present to the State coffers. Of this only $1.- 500,000 came from profits in the State stores, while an equal amount was de- rived from a $1 per gallon tax and $2.650,000 in permit fees. New York headed the list of States getting their liquor revenue solely from taxation with an income of $23,000,- 000. New Yorkers drank 5,681,376 gal- lons, which was taxed at $1 per gal- lon, and there was an additional $18,000,000 license revenue. Indiana Collects $3,700,000. Indiana has collected $3,700,000 on beer and liquor since repeal, while in Louisiana the bill has been $1,500,000. Arizona gets her liquor revenue by sale of luxury tax stamps and licenses. ‘Together they brought in $600,000, most of which went for unemploy- ment relief. A three-way hold on liquor sales in Missouri has brought the State $3,- 500,000. Of this $1,500.000 was liquor tax, $350.000 a beer gallonage tax and the rest from sale permits. The sale of beer has been the only source of liquor revenue for other States where hard liquor prohibition is yet unrepealed. Beer tax receipts in Idaho brought in $227,984 and in Utah $179,206. Texas has received $1,400,000 in beer taxes and $900,000 on licenses, while Florida's liquor in- come of $900.000 has been mostly from beer, as State repeal went into effect only last November, WoobpwARD & LLoTHROP 0™ I™F aND G StrREETS The Coloring, Sheen, Texture, and Weight ‘of Oriental Rugs are Reproduced in Kara-Kirman Rugs By the Makers of Karastan Rugs 9x12 Size 6§00 The rugs reproduced in the ancient city of Kirman, in the southernmost province of Persia, are the models for these Kara-Kirman Rugs. Looking at these Kara- Kirman Rugs you will find that the designs, the rich inter-play of color, the heavy, deep-piled texture with the pattern woven through to the back, the mirror-like sheen and high-light effects, are typical copies of the best works of the Kirman weavers. Deep rose, blue, rust, and ivory grounds, with perfectly blended colorings. Sl |.50 6.6x9 size .. 4.626 size........... s2I‘50 34450 8.3+10.6 sise.... 36575 Rucs, Frre FLoor, GRAND JURY PROBE OF LOBBYING SEEN House Committee Charges Corruption and-Renews At- tack on Gen. Foulois. (Continued From First Page) as chief of the Air Corps should have known differently.” On lobbying, the report dealt mostly with generalities. Even though spe- cific cases were cited. Citing one case, the report said: “One of special agents, or lobbyists, for a motor vehicle con- cern, who, it is established by abun- dant evidence, frequently entertained and gave favors to Government offi- cials, has * * * obtained surreptitiously from Government files advance in- formation in reference to certain phases of this comittee’s investiga- pon obtaining such advance in- formation, said lobbyist and his sub- ordinate took contact witnesses having knowledge of the facts which your committee was known to have under investi- gation and made it very difficult for this committee thereafter to elicit accurate testimony from these wit- nesses.” Lobbying Done at Homes. Much of the lobbying, the commit- tee reported, was done at hotels or in the homes of Army officers. In the home of one, it said, a copy of specifications delivered to an auto- mobile dealer in advance of general submission to the industry was burned. ‘The officer involved in this inci- dent, it was added, gave a six-month | note for $2,500 to an “active lobby- ist,” but “said officer has at no time | offered to pay said note * * * but has endeavored to repossess himself of said note without paying the same.” Conferences, the committee found, were held between lobbyists “of one or more motor vehicle concerns,” with the intention “of entering into an agreement or conspiracy which would have deprived the Government of the WoobDwWARD O™U™F 00 G Smexrs immediate action to| ——— benefit of bona fide competition” in automobile purchases. In addition to other steps that are being taken, the committee recom- mended four changes in the law in an effort to decrease the effectiveness of lobbyists. They were: ‘To require Army officers to have active duty in the field with troops every four years; forbid officers to receive fees from outside sources; in- crease the statute of limitations for offenses involving violation of trust placed in both civilians and soldiers from the present 3 to 6 to 10 years: give the controller general jurisdiction over the trading of old property for new, BILL MAKES ESCAPES U. S. CRIMINAL OFFENSE Cummings’ Measure Would Be Operative From Time of Original Arrest. By the Associated Press. Designation as a criminal offense any attempt to escape from the cus- tody of Federal officers would be pro- vided for in a bill sent to Capitol Hill yesterday by Attorney General Cum- mings, The measure was the first of sev- eral proposed new anti-crime bills under consideration by the Justice Department. Under present law it is a Federal crime for a prisoner to escape after he has been convicted, and several States have “escape from custody™” penalties. Cummings believes inclu- | sion of this in' Federal statutes will give one more weapon to his agents in their campaign against national public enemies. AR MYERS APPOINTS TWO Maryland Man Named One of Land Bank Directors. Appointment of David G. Harry, Pylesville, Md., and Frederick P. Wea- ver, State College, Pa., as directors of the Federal Land Bank of Balti- more was announced yesterday by | Gov. W, I. Myers of the Farm Credit Administration. | They will serve for three-year terms beginning January 1. Both will serve also as directors of the Federal In- termediate Credit Bank of Baltimore, the Production Credit Corp. of Balti- more and the Baltimore Bank of Co- operative: & LoTtHROP Priowe Disvmict $300 Start 1935 Off Right by Having Your Porches Enclosed with Our Custom-made Porch Enclosures Let us convert your porches into livable rooms .« . a cozy den, a reading room, a recreation room, or a spare guest room. work to blend with the of your home. 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