Evening Star Newspaper, January 7, 1935, Page 2

A—2 sx¥ BROAD REFORMS HINTED N ATTACK Democrats, Too, Would Be Affected by Clean-Up They Are Urging. — BY DAVID LAWRENCE. There's an old saying that people in glass houses ought not to throw stones, which might be particularized somewhat today to read that the New Deal ought to make sure it is not re- peating some of the iniquities of the old deal. For, presumably, these are days of virtue and righteousness in govern- ment, and yet there were, in the last few days, two items in the Nation's press, widely published, which, taken together, raise questions that will re- quire considerable explaining. The first was a sentence in President Koosevelt's message to Congress which read as follows: “We have, however, & clear mandate from the people that Americans must forswear that con- ception of the acquisition of wealth which, through excessive profits, cre- ates undue private power over private affairs and, to our misfortune, over public affairs as well.” The second item told that the Democratic National Committee had collected during the year $367,000, and a list of contributors is given in the formal report to the clerk of the House | of Representatives. Questions Aroused. ‘Why did these people contribute money to the Democratic National Committee and who were they? Were they just average citizens earning just a “decent livelihood” or were they per- sons with “excessive profits” able to give away 5 or 10 thousand dollar checks? And, what was their motive in giving? Mr. Roosevelt says that unfortu- nately “excessive profits” create un- due private power over public affairs. How else is that power exerted except through campaign contributions from individuals who use some of their profits for the purpose? Look over the list and you will see that not a few of them have business with the Government, directly or in- directly, or are interested in keeping the Government off their backs. Sev- eral probably would say they did not ‘want to contribute, but when Jim Far- ley, Postmaster General and right- hand man of President Roosevelt, comes to your office and asks for a con- tribution or telephones you to make an engagement for some one else who is| collecting funds or introduces you quite casually to the man who is to solicit your contribution, would you turn a cold shoulder, especially if you were in a business which needs all the good will it can possibly have at the Na- tional Capital? And if some day one of the all-to- numerous bureaus in the Government issues a regulation which goes hard on your business and seems to give your competitor a break, would it be wrong for you to get on the telephone and ask Jim Farley or one of his lieu- tenants, “How come?” All Is Simple Routine. All of this is just every-day routine in the game of politics. And everybody in Washington has known it for gene- rations, for the wicked Republicans started it and kept themselves in poweér for a long while by these tactics. Incidentally, the same day's news furnished the fact that the Republic- ans took in $416,000 in 1934. Why does anybody contribute to a party out of power? For the sake of old times? Or is it perhaps a faint hope that maybe the worm will turn some day and there'll be a Republican Postmas- ter General sitting at the right hand of a Republican President and inter- ceding when some bureaucrat who owes his job to the self-same Postmas- ter General doesn’'t know the differ- ence between a regulation which ad- versely affects a campaign contrib- utor and one that helps a non-con- tributor? Are the Republican contributors of 1934 grateful for favors received and are the Democratic contributors grate- ful for favors yet to be received? Look over the list of officeholders, especially in high executive positions and in the embassies and legations of the United States, and compare it with the campaign contributors to the Democratic party in the last two years. You will see then how political debts are paid. These are things that you have to investigate for yourself. For Con- gress thinks about taking the profits out of foreign war, but never seems to inquire into the profits of our po- litical wars. Baruch Among Exceptions. ' ‘There are certain contributors, of ! course, like Bernard M. Baruch, for instance, ,who never made a nickel out of his close friendship with the Government and who never asked for an official position and would not take any if offered, though he has served on temporary boards as a matter of patriotic service and always without salary. This type is all too rare and yet only men of wealth seem to be able to donate funds for political campaigns, especially between elec- tions, when a national headquarters has to be maintained. The problem has given much con- cern to reform-minded people, like Senator Norris of Nebraska, who says his own case has proved a candidate doesn’t need large contributions. What is the way out? Doubtless the passage of a law prohibiting all campaign contributions whatsoever in presidential and congressional elec- tions to the parties which usually elect candidates for Congress or for the presidency. Then the Federal Government should appropriate a specific sum, possibly $500,000 an- nually, for the use of each of the parties and require them to give an accounting of how they spent it. As for the minority parties or new parties, they should be permitted to continue to solicit funds from private sources, but, when they have suc- ceeded in electing any of their candi- dates, they, too, should be awarded by Congress a specific sum for party use so that it could not be said the system permits no new party to enter the fleld and merely insures the political status quo. Sum Might Be Scorned. Cynical-minded persons might op- pose such appropriations as $500,000 as being too trivial, relatively speak- ing, and they might argue that the real campaign chest is the billions spent nowadays for various projects that make votes and cause Democratic officials, for example, to boast, as they did in the last campaign, of what they do for particular localities in the awarding of Federal money. But some restriction upon cam- paign contributions probably is nec- essary as is some check-up on the political use of public funds ap- propriated originally for other ob- Jects. All this reform probably would be unheard of and the subject would not even 'be ‘discussed were it not | wildered. for the attack which the New Dealers, and particularly the President, ar making on the iniquities of the profit system. ¢Copyright. 19360 What’s What Behind News In Capital President’s “Shush” Man Dashes Hope of Turn to Right. BY PAUL MALLON. NE of President Roosevelt's best shushmen has shushed piivately the impression that the President’s big idea now is to taper off the New Deal. Even before the President delivered his congressional message, this phan- tom but unquestionable authority passed the advice around that any one who Interprets the message as the be- ginning of the end of the spending era will soon find himself wrong. What Mr. Roosevelt really had in mind was security, not retrenchment. What he intends to do is to drive for secure national resources, lives, homes and incomes. The limitation of ex- penditures will be secondary, a sort of if-and-when purpose, which may or may not get mislaid for a while in the reshuffie. New Budget Holds Key. This interpretation may be some- thing of a snowball down the back of the neck for those who rose up to cheer the President’s assertion that the Federal Government must and shall quit this business of relief. However, you will receive con= firmation of it when you get a squint at the new budget. You will see there that the Government is reorganizing relief on a sounder basis, but that “curtailment” is hardly the word for it. You can curtail an idea with words, but you cannot curtail a hungry {stomach with anything except food. Until they start giving food away, it will still cost money, Federal or private. Speech Called Vague. The inner criticism of Mr. Roose- velt's speech was that it was vague. Even Democratic Congressmen, who lauded it publicly as a great state pa- per, observed sotto voce that they could not figure out what Mr. Roose- velt was going to do. What they wanted to know was how much he is going to spend on his program. If he administers it conservatively and spends little, that will be one thing. But if pri- vate business fails to absorb the unemployed and he tries to spend 21 or 26 billions (suggested by the Natural Resources Board) the pro- gram will have a directly opposite meaning. There is something in what the murmurers say, but they do not un- derstand or appreciate the Roosevelt technique. They made exactly the same criticism of his initial message to Congress, but if you go back and read it today, it does not sound as vague as it did then. The truth is the President does riot tell all he knows in his message to Congress. ‘Walker Hinted for Job. ‘There are good reasons for believ- ing that Mr. Roosevelt now has in mind a very specific and virtually completed plan. Interior Secretary Ickes and Re- liefer Hopkins have in their pockets right now a definite list of projects which might be undertaken. This list is specific enough to dispel the doubts of the congressional murmur- ers, but they will not get a chance to see it for a long while yet. It involves less money and fewer projects than the published report of the Natural Resources Board. But the report of the board has been the guide in selections tentatively made and is worth reading. The plan actually has advanced %0 far in Mr. Roosevelt's mind that he has been angling for a man to take the job. The man is Frank Walker, who formerly was co- ordinator. Whether Walker can spare the time from his private business has mot yet been deter- mined, but there would be little surprise among the insiders if his appointment was announced, say. about February 1. Can Shift if Necessary. ‘The hidden purpose of Mr. Roose- velt’s vagueness is now the same as when he delivered his orgiinal mes- sage. He has laid down a broad pro- gram and is sitting back to see the reaction. He later can shift 50 de- grees to the right or left within the boundary of his broad prgram, de- pending on the necessities of the re- lief situation, the amount of money available, the public reaction or any other considerations. His political opponents are be- They cannot attack some- o0 Py thing they cannot now see. Later, when they begin to see Mr. Roosevelt move, they will probably find it diffi- cult to hit a target which can shift 50 degrees in either direction. Practical politicians and statesmen are already marveling among them- selves at the cleverness of it. They }n’onder that no one thought of it be- ore. Board Does Some Figuring. ‘You will not find it among the pub- lished figures of the ' ational Re- sources Board, but the board has a definite breakdown on its 10-year pro- gram expenditures as follows: Federal public works, 3.5 billions; State pub- lic works, 9.7 billions; city public works, 7.6 billions; county public works, 300 millions, and low-cost housing, 500 millions. It makes 21.5 billion dollars in all. Of course, the Federal Government would have to lend most if not all of the money, be- cause the States, counties and cities are in extremely bad financial condi- tion generally. Some people grumbled because the President did not mention the 18 or 19 millions on relief, but grouped them as five million heads of families. The five-million figures fis .correct, and from the New Deal standpoint, it sounds better. The accepted method is to figure one head of & family for every four persons on reliei. The only big point which failed to draw applause as Mr. Roosevelt nuhuum,mwurm THE ASKEDFORT.V.A. Roosevelt Budget Message Reveals $27,526,354 Spent to October 31. By the Assoclated Press. Congress was ssked for $40,000,000 by President Roosevelt today to carry on his economic and social experi- ment in the Tennessee Valley during the fiscal year ending June 30, 1936. In his budget message, Mr. Roose- velt showed the Authority already had received $75,000,000, of which to | October 31, 1934, only $27,526,354¢ had been expended. ‘The Valley program, covering the “yardstick” power operations, ferti- lizer experimentation, dam building and general economic and social plan- ning, was put down as needing the $40,000,000 in addition to the $47,~ 473,645 still unused in October. $13,227,763 First Year. Actual obligations incurred by T. V. A. during the fiscal year of 1934, the first year of operation, amounted to $13.227,763, and it was estimated these will total another $70,571,336 by next June 30. In the year beginning then the probable obligations were set at $63.379,954. After adjustment to cash basis and deductio'. of operating revenues the 1936 total cash expendi- tures are estimated at $40,000,000. T. V. A. obligations were listed in the budget as follows: Estimated Estimated Fiscal Year Fiscal Year 1935, $41,266,325 1936. Water control. $32,718,948 Electricity Program .. Fertilizer Program e Regional development Administrative and general, 2,040,000 1,900,583 Service activities .. 2,600,000 2,068,742 Probable returns to T. V. A. from sale of electricity and related rev- enues were given at $4,600,000 in the fiscal year of 1936, against $2,208,- 000 for 1935. The budget estimated 1936 revenues from the fertilizer oper- ations at $1,340,000, compared with $570.000 the current year. Other re- turns were expected from rentals, electric home and farm authority, operations and sale of timber, That T. V. A. contemplates early construction of other dams than the three now under way was indicated in the allowance for the water-control program, listing estimated expendi- tures, fiscal years 1936 and 1935, re- spectively, as follows: Norris Dam, $7.520.058 and $16,124,- 219; Wheeler, $7,488,890 and $17,091.- 123; Pickwick Landing, $10,210,000 and $5.,638,000; tributary dam or dams, $6.000.000 and $2262983, and main river dam. $1.500,000 and $150.000. The budget for the electricity pro- gram carried an‘item “construction and ‘or acquisition.” $15,635,497 for 1935 and $13,211,400 in 1936. Under the regional development ibudget an outlay of $792.675 for 1935 and $1,500.000 in 1936 was carried for industrial development. ‘Work Accomplished Listed. ‘The $40,000,000 asked for T. V. A., Mr. Roosevelt said, would be included in a $200,000,000 appropriation *“in- tended to take care of the normal pub- lic works requirements of the Govern- ment usually included in the annual supply bills.”” He added that the re- quested appropriation “may be re- garded, therefore, as regular instead of emergency.” The budget did not designate where the additional dams will” be con- structed. When T. V. A. was created Congress gave it $50,000,000 and last year ap- proved an appropriation for public works carrying $48,000,000 earmarked for the Authority. but later the ad- ministration decided only $25.000,000 16,106,006 17,260,260 3,099,424 4,976,002 4,010,000 5,905,000 would be needed during the year, SAAR PLEBISCITE VOTING IS STARTED! 5,000 Public Employes Cast Bal- lots—Postponement Now Not Likely. By the Associated Press. SAARBRUEKEN, Saar Basin Terri- tory, January 7.—Voting began today in the history-making Saar plebiscite, ordered 15 years ago at Versailles. Five thousand public employes cast their ballots in a “dress rehearsal” of the mass voting next Sunday. ‘They were allowed to vote early be- cause they must work on the regular election day. Only minor disturbances were re- ported in yesterday’s huge windup 1 mass meetings. This was interpreted as a brillian victory for the Plebiscite Commission, which permitted the rival factions to demonstrate without seri- ous clashes. For this reason the possibility of a postponement of the vote, considered Saturday because of fears of Sunday disorders, presumably was abandoned. Polling places nevertheless were heavily guarded. Efforts to break through the lines to see the inner mechanism of the plebiscite were fruitless. The first ballots will be guarded in safes and mixed with final votes for counting one week from today. Thus the vote gave no indication of which way the wind is blowing, although & majority of the public servants are regarded as Nazis. Polls were opened at 8:30 am. (3 .m., Eastern Standard Time) for the civil workers, most of whom must work next Sunday. | Some 5,000 more burgomasters, | street car conductors, policemen, | stenographers and track walkers will vote tomorrow in the “dress rehearsal” for next Sunday’s mass event. Voting will continue in prisons and hospitals until Wednesday night. Officials made the rounds of hos- pitals with a miniature ballot box, placing especially designed booths around sick beds. The boxes will be brought to Saarbruecken tomorrow night in armored cars. Sufficient ballots for two days were “smuggled” into the territory yester- day. They had been printed abroad with the greatest secrecy in order to prevent fraud and theft. was the line that care of the one and one-half million permanently unemployed is a local responsi- bility. There is no question about the, spiritual recovery around Washington. Night clubs are springing up as thickly as in New York, although this never was & night-life town before. Waiters raise their noses at anything less than & quarter tip, and personal services are getting slipshod again. All of which are unmistakable signs of re- turning prosperity. (Copyright, l‘!flm EVENING STAR, WASHINGTON, S0000000 FUND | Carpenter Left to right: Zonabell, Gerald @ D. C, MONDAY, JANUARY 7, 1935. Saves Family From Death by Coal Gas and Wilbur Hacker, Samuel Hidey, Mrs. Hidey and Barbara Lee Hidey. 994 Charles Crumit. —Star Staft Photo. Inset: FATHERRESCUESG Briton Who Decoded Fateful | F (F| DECARED OVERCOMEBY GAS Carpenter Rises Early to Find Entire Family Un- conscious in Beds. The family of Charles Crumit, 11-1 year-old carpenter, owe their lives to the fact that he is an early riser. i For if Crumit, who lives at 4525 | Wisconsin avenue, had slept an hour later this morning, he, his daughter, | her husband and their four children | would have died in bed, the victims of coal gas. When Crumit arose at 6 o'clock, choking in the air of his back room, he found his daughter, Mrs. Thelma | Hidey, 28, overcome, along with he husband Samuel, 35; their 10-week- | old daughter Barbara Lee and her three children by a former marriage, Wilbur, 10; Gerald, 9, and Zona- bell, 7. Flue Break Blamed. The Hideys' front bed room, sit- uated over a hardware store, in the cellar of which the furnace is located. was filled with fumes that had per- l;cn[ed the building from a damaged | ue. Throwing open the windows, Crumit shook his son-in-law into semi-con- sclousness and sent him for a doctor and the rescue squad while he tried | to resuscitate his daughter and the children, By placing wet towels on their faces, Crumit kept them alive until Dr. Harry M. Fletcher, 4538 Wisconsin avenue, and the rescue squad arrived to revive them. Crumit and Hidey, a | filling station attendant, also were treated. Heard Blast at Night. About midnight Crumit said he heard an explosion that sesmed to come from the cellar. Unable to get | to the basement, which is accessible only from the store and a trap door on the sidewalk. he said he went to the first floor to look for smoke, but found none. He then went back to bed, he told police, but awoke again at 3 am. The fumes were not evident then, Crumit said, so he slept until it was | time for him to go to work. . GENEVA MAN TO SPEAK Malcolm W. Davis to Address Women on Wednesday. Malcolm W. Davis, director of the Geneva Research Center and a rep- resentative of the League of Nations Association, will speak at 7 p.m. Wed- nesday before the Woodrow Wilson Foundation Committee of Washing- ton in the Women's National Demo- cratic Club. He will speak on “The League of Nations Today.” Frederick A. Delano, chairman of the local group, will preside. The public is invited. Life’s Like vThat BY FRED ?@ : 2 o g (et 18, by ot Bk |1 FZ2D> N2 “WE'RE SELLING THEM FOR APIECE, WHAT DON'T BUY THEM GETS 'EM FOR NOTHING.” (Copyright, 1938.) i By the Associated Press. CAMBRIDGE, England, January 7. —Sir Alfred Ewing, whose work in the ; intelligence department was credited | by Lloyd George with having brought | the United States into the World War, died today. He was 79. The scientist was the brains behind | V! the admiralty’s famous “room 40,” in | which German code signals were de- | ciphered. | An amateur, for whom ciphers were | just a hobby, he directed war-time | work which made possible, among other things, the British boast that 'Zimmermann Telegram Is Dead against the United States, was one of the deciphering discoveries of Sir Al- \ fred and his staff. | This work, Lloyd George said in a speech at Edinburgh University in 1923, “gave us the information which ultimately brought America into the1 ar.” Sir Alfred's first wife was an Ameri- | can, Miss Anne Washington o Clay- | mont, W. Va. She died in 1909. Early in 1917 Arthur Zimmermann, German secretary of state, invited Mexico to enter an alliance, offering | her as a reward the States of New FAILING MEMBERS Delegates to Unemployment Insurance Meet Urge Legislation Aid. Charges that the American Federa- tion of Labor has failed its member- ship in not supporting more adequate the German fleet from December, 1914, | Mexico, Texas and Arizona. The mes- | unemployment insurance legislation made no movement of which London did not know in advance. | The famous Zimmermann telegram, which revealed a conditional German | offer of an alliance with Mexico | sage was intercepted and was pub- | lished by President Wilson March 1. | It was a primary cause of the United | States declaration of war. Zimmer- | mann retired several months later, FRANCO-VATICAN CONCORDAT SEEN Foreign Minister Laval Con- fers 50 Minutes With Pope Pius. By the Associated Press. VATICAN CITY, January T—A' concordat between France and the Vatican, once more uniting the church and the state for the first time since | the French Revolution, was seen by prelates today as a possible result | of a 50-minute conversation between Pope Pius and French Foreign Min- ister Pierre Laval. | Laval was the first French states- | man to come to the Vatican since | 1870. and was received with great pomp and ceremony. The con\‘ersa-! tion was described as extremely cor- dial, and many differences formerly | existing were said to be settled. | French circles here sald Laval asked | Pope Pius to keep a friendly interest | in the situation of Catholics in the Saar Basin Territory. Diplomatic relations between the Vatican and France were resumed only in 1920, after many years of French anti-clericalism. During the last 15 years relations have been friendly except for a brief _break during the premiership of Eduard Herriot. Two minor conventions with | reference to the Near East have been concluded with the Vatican during that time. It was believed, however, concordat will be negotiated to put these friendly relations on a formal| basis, particularly since the Vatican | has concluded concordats with nations | much less Catholic than France, for example, Germany. Alsace and Lorraine are still bound to the Holy See by a Napoleonic Con- cordat. that a| NEHER. A _PENNY AND 'rfloa:l | Fifty-second street. SELECTION DATES SET BY ART JURY Painters to Compete for Prizes at Showing in Corcoran Gallery. The jury which will make the W. A Clark prize awards at the Fourteenth Biennial Exhibition of Contemporary American Oil Paintings, March 24 to May 5, in the Corcoran Gallery of Art | will hold two meetings for the selection of paintings to be accepted for the exhibition. Artists may submit pictures to the Jury either in New York City or at the | Corcoran Gallery here, it was an- nounced in a prospectus, several thou- sand copies of which have been sent | to American artists. ‘The jury, headed by Jonas Lie and | including George Harding, Victor Hig- gins, Henry Lee McFee and Richard | E. Miller, will perform a three-fold | service, it was disclosed. In addition to passing on paintings for inclusion in the show and selecting the prize | pictures, it will serve as the hanging | committee. ‘Two Reviews Dated. ‘The last day for receiving works for review at the New York meeting of the jury will be February 26. The New York receiving agency will be‘ W. S. Budworth & Son, 424 West The last day for receiving paintings at the Corcoran Gallery will be March 4. It is op- tional with artists as to which meet- | ing they choose. “Every effort will be made to pro- mote the sale of exhibits, and no com- mission will be charged,” the gallery announced. From the 13 prior ex- hibitions 319 paintings have been sold, the sales netting the artists more than half a million dollars. The Clark awards and expenses of the biennials were provided for through trust funds established by the late Senator Clark of Montana and his widow. Surplus income from the endowments may be used, in dis- cretion of the gallery’s trustees, for acquisition of works of art by Ameri- can artists. Large Cash Prizes. The Clark prizes are: First, $2,000 and the Corcoran gold medal; second, $1,500 and the Corcoran silver medal; third, $1,000 and the Corcoran bronze medal, and fourth, $500 and the cor- coran honorable mention certificate. The Corcoran Gallery will have an option of one week after opening of the exhibition for the purchase of any or all of the prize pictures. GARGES IS IMPROVED Official Recovering From Attack of Apoplexy in Home. Daniel E. Garges, secretary to the Board of District Commissioners, who suffered a stroke of apoplexy last Saturday, was reported today at his residence at 5224 Chevy Chase park- way to be much improved. Boys' Club Post Filled. Otto Nielson was appointed director of the Northeast Boys' Club of Wash- ington yesterday to succeed A. Boyd | Hinds. Mr. Nielson, a former Mar- | quette University athlete, has been with the club for four years, serving | as assistant director and athletic | director. James Hambleton Speaks. James 1. Hambleton, Department of Agriculture apiculturist, was principal speaker last week at a meeting of the Potomac Palisades Garden Club at | the Branch Library on Conduit road. | Hambleton discussed the bee's useful- 1 gardeners and orchardists. ness to were laid before the federation this noon by delegates from the National Cengress for Unemployment Insur- ance. The delegates, about 50 in number, were received by William Roberts, chairman of the Legislative Commit- tee of the federation. The delegation was the largest of about 10 delegations which visited administration officials in various departments today. Wil- liam Green, president of the federa- tion, who was the subject of bitter at- tack by the delegates, was not present. Visit Labor Department. At the Labor Department a dele- gation headed by Ann Burlak was | received by Assistant Secretary Ed- ward F. McGrady. Secretary Perkins | announced that a previous engage- ment prevented her from meeting the group. Here, as at other places, the delegates demanded support for H. R. 2827, the workers’ bill intro- duced by Representative Lundeen, Farmer-Laborite of Minnesota. Public Works Administrator Harry L. Ickes discussed the question of hovsing with a delegation of five rep- resenting the Federation of Architects, Engineers, Chemists and Technicians here attending the National Confer- ence for Unemployment Insurance. Wages Are Discussed. Elroy Webber, chairman of the com- | mittee, asked Secretary Ickes about the wage rates for technical men em- ployed under the new public works | program. Ickes explained that pay under the program. as pointed out in the President’s message to Congress, would undcubtedly be lower than the prevailing rates. “We asked Secretary Ickes if he had any objection to the technical men in his department organizing in our fed- eration against a lower scale of pay and he said he had no objection what- ever.” Webber stated following the conference. —_— SENATOR’S BROTHER DYING AFTER CRASH Wife Killed and Charles D. Carey | Critically Hurt When Car Hits Underpass Pier. By the Assoclated Press. CHEYENNE, Wyo., January 7.— Mrs. Charles D. Carey was killed and her husband, a_brother of United States Senator Robert D. Carey of Wyoming, was probably fatally injured in a motor car smash-up near Chey- enne last night. The sedan of Mr. and Mrs. Carey crashed into the center support of a Colorado & Southern Railroad under- pass about a mile west of town. Carey, prominent business man, was brought to a hospital here. Phy- fllclnm said he probably would not ve. Mrs. Carey was the third wife of the stockman. His first wife was the for- mer Isabelle Meyers of Denver. She died shortly after their marriage, about 30 years ago. He was married a second time in Philadelphia and has two daughters, Elizabeth and Louise, and a son, Charles, who live on the Carey ranch, north of Cheyenne. The second Mrs, Carey died about three years ago. Carey and his third wife were mar- ried about 18 months ago in Chicago. He is the son of Mr. and Mrs. Joseph Maul Carey. His father was a Governor of Wyoming and served in the United States Senate. Carey attended Yale University. He DEFICIT OF NEARLY 3 BILLIONS SEEN Morgenthau Makes Es- timate for Fiscal Year in Report to Congress. By the Associated Press. Federal spending at the rate of $835,000,000 a month during the first six months of 1935, resulting in a cur- rent fiscal year deficit of $4,869.418,- 338 and a gross debt peak of $31,- 086,633,874, was forecast todav by Sec- retary Morgenthau in tne Treasury's annual report to Congress. It estimated that expenditures for the year would be $8,581,069,026, in- cluding $4,644,613.852 for relief, off= set by receipts of $3,711,650,688. The predicted deficit would be $4,- 033,492,460 in excess of the actual deficit at the end of the last fiscal year, on June 30, 1934. The Secretary foresaw a continu- ance of heavy operating losses due to emergency expenditures. He esti- mated that the Treasury would go further into debt during the fiscal year 1936, when expenditures would amount to $8,520,413,609, offset in part by receipts of $3,991904,639, re- sulting in a deficit of $4,528,508.970 and swelling the gross public debt to $34,238,823,656. A sharp paring down in emergency expenditure items in 1936 was fore- cast, but an expected outlay of $3.- 900,000,000 for “relief of unemploy- ment” would bring the total of such | expenditures to $4.122,011,475, or only half a oillion less than expected in the present fiscal period. Sees More Tax Income. The Secretary found a cheering pos- sibility in the estimate that income taxes in the fiscal year 1936 would improve by $137.000,000 over 1935 jand amount to $1,188,000,000. This, he said, would reflect the “further gains because of the moderately higher incomes anticipated for the calendar years 1934 and 1935.” Morgenthau pointed out that in view of the nature of the Federal tax structure, it was not to be expected that revenues would reflect promptly an anticipated improvement in busi- ness conditions. “For example,” he said, “collections of income taxes during the latter half of the fiscal year 1935 will be based on the business volume of the calen- dar year 1934, and income tax collec- tions during the fiscal year 1936 will | be based on the volume of business of the calendar years 1934 and 1935. “Therefore, it is anticipated that the rising level of business activity will increase income tax receipts only moderately during the remainder of | the fiscal year 1935 and the fiscal | year 1936. Certain miscellaneous in- | ternal revenue receipts, notably estate ! and gift taxes, show a lag in tax col- lections behind changes in general business conditions.” | Total receipts from customs duties ;and internal revenue, excluding agri- cultural adjustment taxes, are esti- mated at $3,172,000,000 for the new | fiscal year beginring next July 1, “if the temporary taxes expiring June 30 and July 31, 1935, are extended.” | This figure represents an increase of | $277,000,000 over the estimated re- | ceipts in the present fiscal year, and of $571,000,000 over the actual re= | ceipts in the fiscal year 1934. Estimates Decline. Morgenthau said that failure to ex= tend the temporary taxes would re- duce the total internal revenue re- | ceipts by about $378,000,000 and cus= toms by about $11,000.000 to a total of $2,783,000,000, or $112,000,000 less | than estimated receipts from these | sources in the fiscal year 1935. | The Secretary said he expected current corporation income taxes to yield $509,000,000 in the fiscal year 1936, an increase of $69,000,000 over | the expected return for the present fiscal period, and current individal | income taxes $506,000,000, or an in- crease of $62.000,000 over the 1935 estimate. Collections of back taxes on incomes are expected to bring in $173,000,000, an increase of $6,000,000. | Morgenthau said the increase in ine come tax receipts for the present fiscal year over last would result from the higher level of corporate earnings, ‘the elimination of consolidated re- turns, the Treasury administration of | depreciation aliowances and changes {in the individual income rate struc- |ture and in the capital gains and losses provisions. | Total miscellanieous internal reve- | nue receipts—assuming extension of temporary taxes now due to expire next Summer—are estimated at $1.- 686,000,000, an increase of $129,000,- 000 over the estimate for the fiscal year 1935. Estate tax and gift tax collections are estimated to yield $191,000,000 and $25,000,000, respectively, repre- senting increases of $54,000,000 and $14,000,000. Revenues from distilled spirits and wines and from fermented liquors are estimated to show in- creases of $27,000,000 and $11,000,000, | respectively, partly in consequence of the anticipated higher level of in- | comes and partly because of the ris- ing trend in the domestic manufac- ture and consumption of distilled spirits and wines. Repeal of the tax on checks, effec- tive as of January 1, 1935, will clip $24,000,000 from the 1936 revenue. The Secretary said customs re- ceipts in 1936 were estimated at $298,- 000,000, an increase of $11,000,000, “assuming that temporary duties on certain commodities (coal, lumber, petroleum products, copper and prod- ucts) are extended.” Decreases from this source are expected in collec- tions from Cuban sugar imports and imported liquor. Agricultural adjustment tax receipts were estimated at $570,000,000, “on the assumption that it would be nec- essary to continue the work of the Agricultural Adjustment Administra- tion on practically the same basis as during the fiscal year 1935.” LANDREAU DISBARRED Attorney Admitted $12,000 Short- age of Funds of Clients. An order disbarring Attorney Nor man B. Landreau, who pleaded guilty to embezzlement last October, was signed in District Supreme Court to- day by Chief Justice Alfred A. Wheat, Landreau acknowledged he was ap- proximately $12,000 short in tHe estates of two lunatics and was sen- tenced to serve from two to four years in the penitentiary. Treasury’s Future Condition By the Associated Press. A bird’s-eye view of the Treasury's future condition, as anticipated in its annual report today, is as follows: Fiscal year. EXPENDITURES: General ... Emergency Total Deficit ... Public debt. . Debt increase. . *Estimated. 1934 «. $3,115,554,049.53 3,100,914,534.14 4,004,135,550.81 7,105,050,084.95 3,989,496,035.42 27,053,141,414.48 4,514,468,854.00 1935* $3,711,650,688 1936* $3,991,904,639 3,936,455,174 4,644,613,852 8,581,069,026 4,869,418,338 31,086,633,874 4,033,492,460 4,398,402.134 4,122,011,475 8,520,413,609 4,528,508,970 34,238,823,656 3,152,189,782