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WEATHER. (U. 8. Weather Bureau Forecast.) Cloudy, probably occasional light rain tonight and tomorrow; little change in tentperature; lowest tonight about 42 de- grees. Temperatures—Highest, 50, at 4 p.m. yesterday; lowest, 41, at 7:15 am. today. Full report on page Closing N. Y. Markets, Pages 33,123. post office, Wa B-10, 14,15&16 Entered as second class matter shington, D. C. [0 WASHINGTON, D. C, MISS GOW COLLAPSES AFTER 3 HOURS’ QUIZ AT KIDNAPING TRIAL| __ Betty Gow’s Testimony and Cross-Examination “She’s Not on Trial,” State Tells Defense. SCENE ON NIGHT OF CRIME TOLD “They Have Stolen Our Baby,” Cried Father. BULLETIN. FLEMINGTON, N. J, January 1 (#).—The nursemaid Betty Gow collapsed today as she left the court room following three hours of testimony in the Bruno Richard Hauptmann murder trial. (Copyright, 1633, by the Associated Press.) FLEMINGTON, N. J, January 7.— Betty Gow, nursemaid to the slain baby Charles Augustus Lindbergh, jr., today identified the garments worn by the baby on its last night in the Lind- bergh home, and admitted, under cross-examination, that she “probably” told others of the Lnidbergh's move- ments. The little Scotch nurse took the stand as a star State witness when court opened for the second week of the trial of Bruno Richard Haupt- mann, Brenx carpenter, accused of the murder, and was still undergoing cross-examination when the luncheon recess was taken from 12:30 until 1:45 pm. Her direct questioning brought out the finding by her a hundred yards from the Lindbergh home of a thumb | guard worn by the baby, a point through which the State hopes to prove the baby was killed in Hunter- don County. “Did You Drop Guard?” Edward J. Reilly, chief of Haupt- mann'’s defense counsel, added signifi- cance to the thumb guard when he held it up and boomed at the nurse: “Are you sure you didn't drop this yourself?” Miss Gow froze into defiance as she shot back the words: “I did not.” She acknowledged to Reilly a prob- ability that she had told “Red” John- son the Lindberghs planned not to return from Hopewell to Englewood on Monday, February 29, 1932, as they would have done if the baby had been well. She also acknowledged to the de- fense a telephone call between herself and Johnson the fateful night of | March 1. Johnson called her while | the Lindberghs dined, she said. in | response to a message she had left at | his home. She wanted to tell him she could not keep a date. i She told as well of the telephone call to her from Mrs. Lindbergh by which she learned the family was not returning to Englewood because of the baby’s cold. Mother Was Nurse. She explained that Mrs. Lindbergh preferred to act as nurse to her own baby during the usual week end trips to Hopewell. Miss Gow remained at the home of Mrs. Dwight W. Morrow, Mrs. Lindbergh's mother, in Engle- wood The night of the kidnaping, how- ever, she was in Hopewell, having been summoned by Mrs. Lindbergh. During her testimony for the State the nurse related that when Lind- | bergh was apprised of the fact his baby was missing, he procured a ‘ rifle, ran into the nursery, and cried: | “Anne, they've stolen our baby!” | The cross-examination was pointed | to the line announced previously by | the defense, which is an attempt to | show that the kidnaping was plotted in the Lindbergh home by others than the family members and carried out by two men and two women. ‘Was Sailor. “Red” Johnson was a sailor on a yacht owned by one of the Morgan partners. He was acquainted with Betty Gow and she acknowledged on the stand that she went to movies with him. He was questioned during the in- vestigation of the kidnaping, but was released and deported for illegal en- try into the country. Investigation of him at the time centered about the fact that a milk bottle had been found in a car which he drove to Bridge- port, Conn. The trim little nurse, the last per- son other than the Kidnaper to see (Continued on Page 5, Column 1) ROOSEVELT IS ILL WITH HEAD COLD Stays in His Rooms to Aid Cure. Will Continue to Receive Callers. President Roosevelt today remained‘ in his rooms on the second floor of | the White House because of a head cold which has persisted far several days. \Swhfle he has no fever and the cold 1s not considered serious, the Presi- dent will not leave his rooms until he is improved, on advice of Dr. Ross T. Mclntire, White House physician. Mr. Roosevelt has no intention of remaining idle, however. Although his engagement list has been curtailed he will receive two or three important callers today, among these being Sec- retary of Labor Perkins and Speaker of the House Byrns. The President will confer with Miss Perkins regarding the message he will draft shortly dealing with proposed legislation for social welfare. He was expected to begin preparing this mes- sage late today. [ § By the Associated Press. FLEMINGTON, N. J., January 7.— Betty Gow, former nursemaid in the Lindbergh home, began her testimony as a State witness as the Hauptmann trial was resumed at 10:28 this morn- ing. She said, under direct questioning by Attorney General Wilentz, that her name is Bessie Mowat Gow and lived in Scotland. “Where were you employed on March 1, 1932 (the day of the kjd- naping) ?” Wilentz asked. “At the Lindbergh home in Hope- well.” Wilentz quickly brought the ques- tioning to the day of the kidnaping, March 1, 1932. The nursemaid related how she ar- rived at the Sourland estate at 1:20 p.m. that day. She recounted the events of the afternoon. She spoke of the baby. “His cold seemed to be much better,” she recalled. “We played upstairs in the nursery. The baby and I, yes.” She said that at 4 o'clock on the baby’s last day, she was playing with the baby in the nursery. “Then Mrs. Lindbergh came home.” “Then what?” “Well, I served her tea.” British Accent Noticed. Her words had a slight, very slight, British accent. She pronounced her words carefully and slowly, frequently moistening her lips. She described how she had sewn a little shirt for the baby, with flannel material from the nursery and thread obtained from Mrs. Ollie Whately, wife of the butler. “I stitched it up hurriedly,” she said apologetically. “That is the piece of the cloth you put next to the baby’s skin,” Wilentz asked, showing her a piece of the ma- terial from which the shirt was cut. Then out came the discolored little shirt which was found on the muti- lated body. As Wilentz showed it to her she stif- fened in her chair. He asked her to identify it. FRANCO-TALIAN ACCORD IS SIGNED Rapprochement Expected to Result in Germany Re- joining League. By the Associated Press. ROME, January 7.—French Foreign Minister Pierre Laval and Premier Mussolini placed their signatures last night at 7 p.m. upon accords linking France and Italy, in a policy of collaboration which may form the foundation of a new European peace structure. Hundreds of people gathered in the Venezia Square while the histroic signing occurred, but an imposing dis- play of police kept them at a careful distance. Observers expressed the opinion that & return to Geneva by Germany may be a possible result of the far- reaching Franco-Italian agreement reached by the two statesmen. They believed Germany and France might make an understanding where- by Berlin would sign a non-inter- vention accord and re-enter the League, in return for France's legaliz- ing the rearmament she asserts Ger- many already has achieved. High officials said they felt the Franco-Italian accord constituted a great stride toward insurance of peace in Europe. Free Austria Pledged. A full agreement was reached by Il Duce and his French guest last night after a lengthy conversation. Its principal features are a joint declara- tion to preserve the independence of Austria, a five or six power pact of non-interference and, finally, provi- sions for colonial concessions between the two nations in Africa. One report was that Czechoslovakia, Yugoslavia, Austria and Hungary will be invited to sign a pact with Italy agreeing to non-interference with each other’s internal affairs. Later, this source said, England, France and Rumania may be asked to adhere. Both Italy and France are jealously guarding Austria’s independence, fear- ing a union of that country with Ger- many. Relief Shown by Officials. ‘There was a general feeling of re- lief among French and Italian offi- cials. The two encountered many difficulties, principally on Colonial questions, before coming to an ac- cord yesterday. RESTORATION FIGH MOVES TO SENAT McCarran Will Introduce Meas- ure to Return U. S. Salaries as of Jan. 1. The fight for full restoration of Government salaries as of January 1, already launched in the House, got under way in the Senate today, when Senator Pat McCarran, Democrat, of Nevada, put forward a bill on the sub- Ject. The Nevada Senator, who led the fight last year to wipe out the pay cut entirely, introduced his new meas- ure this afternoon. It was referred to the Civil Service Committee. The McCarran bill is substantially the same as the bill in the House by Representative Griswold. “This is the exact little shirt,” she began, and then stopped to swallow, “I made for the baby.” Q. Yes? A. And then, sometime later, Elsie Whately and I had tea. “What did you do then?” Wilentz asked. “At 5:45, while Elsie and I were having tea, he ran into the tea room. Got Thread From Mrs. Whately. “We left him in the tea room one minute before he had his supper. “We undressed him and gave him some physic.” “He didn't like that?” “No. It spilled on his lap.” “Yes?” Wilentz encouraged. “I wanted to sew his little sleeping suit, so I got some thread from Mrs. ‘Whately. Blue thread.” “And do you know what this is?” Wilentz asked, handing her a piece of cloth, almost brown with dirt. “Yes, it's his shirt.” She said. He showed her another piece of cloth, fleecy, woolen, white and warm. “Do you recognize this?"” | “Yes, it is a piece of the shirt. I meant to sew that in.” She said there was another woolen over-shirt worn by the baby. Wilentz showed her a faded piece of cloth. “That's it.” She said. “Did you affix the thumbguard?” “Yes.” Wilentz showed her the thumb- guard and she described how she put it on the baby that night. “Is this the knot that was tied that night,” inquired Wilentz indicating the tape fastening. “That is the identical knot.” Closed Shutters. Her story next concerned how she | and Mrs. Lindbergh closed the win- | dows and shutters in the nursery. All{ windows and shutters were secured except the shutters of the kidnap (Continued on Page 5, Column 2.) TROOPS ROUND UP - S3INMILL STRIKE Rossville, Ga., Group to Be Taken to Detention Camp in Atlanta. By the Assoclated Press. ROSSVILLE, Ga. January 7.—In two rushes National Guardsmen pa- | trolling the Richmond Hosiery Mill | where a strike is in progress, today | rounded up 33 persons, including five | women, and placed them under mili- | tary arrest. The guardsmen flanked a crowd es- { timated to number 1,000 and took the 33 into custody before they had time to beat a hasty retreat across the State line into Tennessee, 100 feet away. Col. L. C. Pope in command of the troops said the prisoners would be ! transported by truck to Atlanta this afternoon and placed in a detention camp. Bombarded With Vegetables. The taunting, jeering crowd hurled | uncomplimentary = remarks at the | Guardsmen, once they were safely { across the State line and the troops were bombarded with a barrage of | vegetables, oranges and sticks as they rushed the group on the Georgia side. The detention camp to which they will be carried in Atlanta was con- structed by National Guardsmen and used during the general textile strike last Fall. Here members of strikers’ “flying squadrons” were kept by mil- itary authorities until the end of the strike., The Guardsmen planned to leave for Atlanta shortly after lunch with their prisoners. For the time being they were held in a section of a ware- house in which the troops are quar- tered. While the new workers entered the mill this morning a crowd of jeering and hooting men and women congre- gated about the entrance. Guard officers estimated that 300 workers entered the plant, which nor- mally employs 1,000. 100 Officers Patrol Line. Meanwhile, approximately 100 Ten- nessee special officers patrolled the Tennessee side, keeping a close watch on the mill property and in the vil- lage, where employes of the plant live. Approximately 30 employes of the spinning room left their jobs in the mill today, saying they objected to working while troopers were on the scene. The walkout came when the mill management posted a notice of a 10 per cent reduction in pay. The mill asserted it was necessary for economic reasons and that stockholders and trustees had ordered the reduction rather than close and put all employes out of a job. The mill contended the reduction still left employes above the usual scale and higher paid than pro- vided by the code. e CRASH KILLS FIVE Two Also Injured as Car Hits River Abutment. RALEIGH, N. C, January 7 (#).— Five persons were killed outright and two others were critically injured shortly before midnight when a speed- ing automobile crashed into a river abutment near Wake Forest. The dead, Coroner L. M. Waring of ‘Wake County said, zelle of Windsor, Leon White and James both of Windsor; of Durham and Pauline ¢ Foenin WITH SUNDAY MORNING EDITION PROMOTIONS BAN END SEEN IN JULY President Ignores Continu- ance of Bar in Message. Furlough Knell Near. ‘The ban on promotions in Govern- ment service which has existed in one form or another since July 1, 1932, will be lifted at the beqnning of the next fiscal year unless Con- gress decrees otherwise. ‘This became evident today when | the President in his budget message made no recommendation that this prohibition, which expires at the end of the present fiscal year, be con- tinued. Under the circumstances realloca- tions, which entail higher gradings for positions themselves, will be in full effect, and administrative pro- motions will have their last restric- tion removed. These latter, which constitute promotions within grade, may now be made only where an agency is able to save enough money on its personnel appropriations to finance them. Furlough Plan May Go. The provision for rotative fur- loughs also is due to expire, and the President’s message mekes no recom- mendation for its continuance beyond July 1. This furlough plan, which has been employed principally in the Post Office Department, has been the object of bitter attack. but it was | pointed out today that any adminis- trative officer may apply furloughs, without legislation, if necessary to spread his appropriations. The end of the promotion ban has been sought by organized employes ever since it was instituted, as it has been contended that it in effect junks the classification act. Other groups which promise to benefit under the revised economy leg- islation proposed by the President are those in Army, Navy, Marine Corps, Coast and Geodetic Survey, Public Health and Coast Guard, who now would get credit for service for pay ad- vancement for the two years during which promotions in these services were halted. At the time when their right to promotion was restored last July. they were not given credit for the period from July 1, 1932, as a pay base. Travel Allowances Up. Officers of the Army, Navy and Marine Corps also get increased travel allowance, for the budget provides that this go back to the former 8-cent-a-mile rate instead of the flat $5 a day which they have been receiv- ing since the first economy act. Members of Congress also would be treated well on the question of travel allowances, as the President proposes that the 25 per cent cut be eliminated. Their base is 20 cents a mile. ‘Travel pay for postal workers, how- ever, would be maintained at a $2-a- day base. ‘The President proposes to retain the law under which employes with 30 years' service may be separated as @ retrenchment measure. Noth- ing is said about the provision under which approval for filling vacancies must come from the White House, | and this power would revert to admin- istrative officers. ‘The President proposes to hold the salaries of the International Joint Commission at $5,000 and to hold at $10,000 the salaries of members of the Shipping Board, Farm Board, Board of Mediation, Interstate Commerce Commission, Tariff Commission, the American member of the United States and Mexico General Claims Commis- sion and the American member of the United States and Germany Mixed Claims Commission. It is proposed, however, that the $10,000 limit be taken off of retired pay for judges. NAZIS DENY HITLER ASSASSIN'S TARGET Reports Say Storm Troopers Hit Chauffeur in Plot to Kill Reichsfuehrer. By the Assoclated Press. BERLIN, January 7.—Responsible circles denied today unconfirmed re- ports that two Nazi storm troopers attempted to assassinate Adolf Hitler in the chancellory the night of De- cember 31. Hitler, said the reports, which came from unrelated quarters in Munich and Berlin, was not harmed, but his chauffeur was wounded. Another ver- sion, also unconfirmed, said the chauf- feur was killed. MONDAY, JANUARY 7, 1935—THIRTY-TWO PAGES. .Yau FolKS SAY ‘\INE HANE N'T ANYTHING g Star Rk To OFFER-TRY THIS ONYourR 7 School Board Revolts on Bill For Subjection to City Heads Members; l Five Five members of the Board of Edu- cation, including its president, said | today they will not continue to serve if the proposed bill to give the Dis- | trict Commissioners veto and direc- becomes law. All nine members pre- sented a united front against its pas- sage. The fear they expressed that the measure might throw the school sys- tem open to political patronage was partially confirmed by an admission by Commissioners Hazen and Allen | that the Commissioners, who are po- litical appointees, would control the appointment of the superintendent of schools if the bill is passed. A letter from Dr. Hayden Johnson, president of the School Board, outlin- ing arguments against the bill, was received by the District Commission- ers this morning without comment. Dr. Johnson, whose term on the board expires this June, said he would not accept reappointment if the bill is passed. Four members said they would resign the minute it becomes law. They were Henry I. Quinn, Including Refuse to Continue Serving if Measure Becomes Law. tional power over the board's acts PIANO! President, George M. Whitwell, Dr. J. Hayden Johnson and Charles H. Houston. President Johnson, Quinn and Hous- ton are prominent attorneys and their interpretation of the proposed bill has been accepted by the non-legal board members. The four other board members were equally as vehement in | their opposition to the measure, but were reluctant to say definitely they would resign. | Commissioners Hazen and Allen in- | dicated they are somewhat doubtful whether the proposal, so far as the Board of Education is concerned, will meet with public approval or whether they can succeed in pushing the bill through Congress with this clause in it. Both said they have not yet com- mitted themselves to all details of the measure, but Hazen added: “T believe the Commissioners should have the power to veto direct actions of the Board of Education as well as | some of the other agencies which are | supported out of District revenues.” The Board of Education will act " (Contifued on Page 4, Column 1. PRESIDENT GRANTS HARRIS REPRIEVE 60-Day Stay Ordered for Condemned Man Pending Study of Case. Charles Harris, condemned to die in the District Jail Friday morning for the murder of Milton W. “Milsie” Henry, Washington gambler, was granted a 60-day reprieve today by President Roosevelt. | In announcing the stay of execu- tion, the White House said the Presi- dent had acted on the recommenda- tion of Attorney General Cummings, who explained that the remaining time was insufficient to study all the papers in the case. The cabinet offi- cer suggested the 60-day delay. Meanwhile, friends and attorneys for Harris continued their fight to obtain a commutation of the sentence to life imprisonment. A group of Harris’ friends filed an- other sheaf of papers today with James A. Finch, the United States pardon attorney, who eventually will make a recommendation to the At- torney General. In case of an un- favorable finding by the pardon at- torney, the same group plans to call upon the President directly in their effort to save Harris. Neil Burkinshaw and Nugent Dodds, both former assistant attorney gen- erals who have interested themselves in Harris' case, planned to call at the Department of Justice today for a conference with Finch. Harris was convicted October 7, 1932, and the death penalty was con- firmed by the District Court of Ap- peals last May, SOVIET TRAIN CRASH TAKES MANY LIVES I.eningrad-lfoscow Express Hits Leningrad-Tiflis Express. Authorities Probing. By the Associated Press. LENINGRAD, U. S. 8. R,, January 7.—An official bulletin announced to- day that “many passengers were vic- tims” of a rear-end collision yesterday between express trains bound from Leningrad to Moscow. Four relief trains were rushed to the scene of the wreck, near Torbine, 130 miles south of Leningrad. ‘When the Leningrad-Moscow ex- press crashed into the Leningrad- Tiflis express three cars of the first train burned and several others were demolished. It required 13 hours to clear the tracks and relief work was handi- capped by a temperature of 25 degrees below zero Fahrenheit. Soviet authorities began an investl- gation of the cause of the wreck. 1 FEARS EXPRESSED FOR PUBLIC DEBT Senator McNary, Republic- an Leader, Admits Relief Need, However. | By the Assoctated Press. Concern over the prospective in- crease in the public debt was expressed today in early comment by members | of both parties on President Roose- | velt's budget message. | Senator McNary. the Republican| leader: “I regret the nability of the| President to balance the budget, but I recognize the necessity of taking care of those who are unemployed and in distress.” Taber Fearing Abuse. Representative Taber of New York, ranking Republican on the Appro- priations Committee: “These lump- sum appropriations always have re- sulted in abuse. I think the Execu- tive should have learned his lesson, but apparently he hasn’t—he asked another lump sum of $4,000,000,000. If we keep on spending this way, we're going to prevent recovery.” Representative Snell of New York, House Republican leader: “It looks like we'll all have a lot of money by and by.” Senator George, Democrat, of Geor- gia: “I'm willing to vote for what- ever is necessary for a work pro- gram, but I think it should be al- located and the general control of expenditures kept in the hands of Congress. This is not essentially re- lief to meet immediate needs and in the long run it will be wise for Con- gress to exercise some control over the expenditures of such a vast fund.” Senator Dickinson (Republican, of Towa): “It is definite assurance from the administrative authority that the financial and business interests will be more in doubt and that the taxpayers | will have heavier debts in the future.” Senator Smith (Democrat, of South Carolina): “Unless and until we ex- pand our currency to increase our do- mestic bargaining power and find means of restoring our foreign trade, ‘we can never bring about recovery.” May Favor Lump Sum. “Senator Capper (Republican, of Kansas): “We've got to get nearer a balancing of the budget. I'll probably favor a lump sum if he thinks that's the best way to handle it.” Representative Taylor (Democrat, of Colorado), acting Democratic floor leader: “The basic idea of taking people off relief and putting them on jobs is dead right. I think we can i handle the job of raising the necessary money without the slightest difficulty.” Representative Samuel B. Hill (Democrat, of Washington), mc‘mbu ordinary expendi met by the revenues, with enough left over to finance service charges on what we borrow. The outlook at present, for which we are all glad, is that no new taxes will be neccessary.” The only evening paper in Washington with the Associated Press News and Wirephoto services. SATURDAY'S SUNDAY'S Cireulation, 123,52 Circulation, 132,789 Some Returns Not Yet Recelived. (UP) Means Associated Press. TWO CENTS. FOUR BILLION ASKED FOR U. S. JOB RELIEF; CITY BUDGET PARED Cut of $2,204,534 Made in D. C. Bid for $44.,039,356. LUMP SUM AWARD KEPT AT $5,700,000 Relief Cut $1,000,000. Report in House Due Late This Week. BY JAMES E. CHINN. A closely balanced budget for 1936— balanced at the sacrifice of emergency relief and a recommended increase in the Federal obligation to the ex- penses of the District—was officially transmitted to Congress today by President Roosevelt. Unofficially, the budget has been| before the House Subcommittee on | Appropriations for nearly a month; the customary hearings have been | completed and the 1936 District ap-| propriation bill, based on its recom- mendation, will be in shape to report to the House the latter part of the week. Chairman Cannon end other members of the subcommittee have indicated that only a few major| changes were made in the budget proposals, and that the supply bill | will carry about the same amount as the budget recommended. Altogether, the budget carried ap- proved requests for appropriations totaling $41,834,822, a slash of §$2,204,- | 534 under the amount sought by the | Commissioners. The cut was accomplished chiefly through a reduction from $3,000,000 to $2,000,000 in the emergency reuefl item of the Commissioners and the flat denial of their plea for a Federal | contribution of $8,317,500. The budget | again fixes the amount of the Federal obligation at $5,700,000, the | same as appropriated for the current year, which was brought below $5.- | 000,000 for the first time by the com- pulsory repayment of 70 per cent of P. W. A. allotments. Compared with the appropriations for the current fiscal year, however, the total budget recommended for | 1936 is nearly $2,500,000 greater. On | paper that increase appears generous. But a careful analysis of the budget estimates reveals a different story. Bare Necessities Provided. There are provisions for a few new capital improvements—school build- ings, grade crossing viaducts and a new fire engine house—but on the whole the budget will do little more than keep the District on a sub- sistence basis in the coming fiscal year, after caring for the bare neces- sities. The apparent increase is absorbed in several different ways. For in- stance, baout one-half of the $2,500,- 000—$1215,546 to be exact—is for the restoration of District salaries to a full pay basis by adding the last third portion of the 15 per cent reduction. Rising commodity prices reflected in operating expenses of District institutions are taking a share of the balance. Some of the redeeming features of the budget are these: It provides for six new school build- ings or additions costing a total of $775,000. It allocates to the Public Utilities (Continued on Page 11, Column 1.) OFFICE IS SEIZED BY BILOXI MAYOR 0'Keefe, Held Unqualified, Takes Over Post Despite Prede- cessor's Fight. By the Assoclated Press. BILOXI, Miss., January 7.—By exe- cuting an early morning coup with armed deputies and citizens, Mayor- Elect John A. O'Keefe early today took office and ousted his political foe, Mayor R. Hart Chinn. Chinn had declared he would not give up the office because he considered the new mayor unqualified. No shots were fired and Mayor O'Keefe said the citizens, at least 150 of them, were unarmed. O'Keefe was elected to succeed Chinn with the change in the city administration today, but his quali- fications had been challenged by Chinn on the claim that O'Keefe had not paid his taxes within the limit prescribed by law. O’Keefe from the mayor'’s office gave his account of what took place today before dawn. He said that he and Finance Commissioner-elect Ed Tucei were sworn into office “in the eastern section of the city,” before a number of citizens and seven or eight armed deputies sent to the scene by O. L. Meadow, Harrison County sheriff, to preserve order. Up to a late hour this morning the leaders of the Chinn faction had put in no appearance at the office. —_— OPPER PRODUCTION Expenditures Hit Eight Billion in Next Year. PUBLIC DEBT DUE TO BE 34 BILLION Budget Remains Within Credit Structure, Says President. Text of Budget Message Page A-10. BY G. GOULD LINCOLN. President Roosevelt in his budget message to Congress today asked for a one-sum appropriation of $4,000,- 000,000, to be allocated by the Execu- tive principally for giving work to the unemployed and those on relief rolls. This budget recommendation is in line with his annual message. He declared in that message in favor of taking 3,500,000 workers off the dole and putting them to work. The President’s estimate of total expenditures for the fiscal year 1936, which begins July 1, next, is $8,520,- 413,609. The estimated receipts by the Government for the same year total $3,991,904,639. The deficit, therefore, for the fiscal year 1936, would total $4,528,508,970. $34,239,000,000 Debt Seen. Such a deficit, superimposed upon the expected deficit for the fiscal year 1935 on June 30, next, would bring the public debt to the unprece- dented total of $34,239,000,00. “But this increase, as I have pointed out,” said the President in his mes- sage, “will be due solely to continued relief of unemployment.” ‘The public debt at the close of the present fiscal year, the President said, was estimated to be about $31,000,- 000,000, or $800,000,000 lower than he estimated in his budget message of last year. The deficit for this year will be $4,869,418,338, growing out of the fact that total expenditures will have been $8581,069,026, while the receipts are estimated at $3,711,650,- The President contemplates the bor- rowing of approximately $4,000,000,- 000 by the Government to carry on. The budget, in his opinion, will re- main well within the credit structure of the Government. Nor will it call for any measures of inflation. Jobless Relief. The total in the budget for 1936 under the title of “recovery and re- lief” is put down by the President at $4,582,011,475. Of this $3,900,000,000 is designated “relief of unemploy- ment” and is to cover the employment of the vast army of workers which the President intends to place on the pay roll. The character of work which will be given ranges from slum | clearance to reforestation and the | prevention of erosion of the soil. This, in effect, is the $4,000.000,630 | lump sum appropriation which the | President requests of Congress, to be allocated by the agency which is set | up to carry on this huge public works program, under his direction. Under the title of “emergency re- | lief.” which is carried in the sub- | division of the budget entitled “execu- tive office and independent establish- ments,” the following language is found: “To provide relief from the hard- ships attributable to unemployment, or resulting conditions, to alleviate distress, etc.; to be made in one fund for better control and co-ordination of such relief work by the executive. as conditions may require (the text of the appropriating provisions to be worked out with the Congress —esti- mate, 1936, $4,000,000,000.” Other Items Listed. Other items listed under recovery and relief in the budget include: Agri- cultural Adjustment Administration, $412,000,000; refunds of processing tax. $60,000,000; other public works (national defense, public buildings etc.), $186,273,900; home ldan system, $39,500.000. The total sum for recovery and re- lief for the fiscal year 1936 is con- siderably less than the total for these purposes appropriated for the present fiscal year, which was $5,259,802,852 The reduction is due to the fact that many items are not this year included, among them $500,000,000 for drought relief. No Tax Increase Sought. There is no present intention on the part of the President to ask for increased taxation. He does ask, however, in his message, for the con- tinuance of those special taxes which would otherwise automatically expire next June and July. At the same time, it is understood that the present plan not to seek in- creased taxes will depend upon whether the Congress keeps within the budget submitted today. Should there be l'arge additional appropria- tions, then, in all probability, Con- gress would be asked to provide for meeting them through taxes. No estimate is submitted looking to the payment of the soldiers’ bonus. None was expected. With regard to the 5 per cent pay CURB IS DISCUSSED North and South American Groups Seek to Stabilize Price at Profit Level. By the Associated Press. TORONTO, January 7.—The Tor- onto Globe says today a series of con- ferences is in progress between repre- sentatives of leading North and South American and South Africa copper- producing countries “with a view to arranging a curtailment of world cop- per production.” The negotiations, the newspaper says, plan on “stopping the growth of deduction still imposed on Govern- ment employes, the President has in- cluded in the budget $40,000,000 to make the pay restoration beginning July 1 for the regular departments and establishments. The postal serv- ice requires an additional $25,000,~ 000 for this purpose. The President had this to say re- garding the proposed pay restora- tion, however: “Among the economy provisions which now obtain and which it is not proposed to continue is the 5 per cent reduction in compensation (Continued on Page 10, Column 1.) surplus stocks and securing a stabilized price at a level which will enable present producers to stay in opera- tion.” Kang Teh Plans Trip. ‘TOKIO, January 7 (#)—Emperor Kang Teh of Manchoukuo will pay his first state visit to Emperor Hirohito of Japan early in April, the imperial household ministry announced today. Amusements Comics . Features Finance Lost and Foun Radio .. Serial Story . Service Orders . The visit will repay one made to Kang Teh last Summer by Prince Chichibu, | brother of Hirohito. R Short Story . Society . Sports