Evening Star Newspaper, February 6, 1935, Page 2

TRADE PROMOTION BASIS RECIPROCITY Policy, First Advocated in McKinley Days, Has Be- come Reality. BY DAVID LAWRENCE. ‘While all sorts of more spectacular sactivities of government are getting | the headlines, a group of officials rep- resenting different departments are quietly putting into effect the policy set forth by Congress last year whereby foreign trade would be increased. Reciprocity, first advocated in Me- Kinley days and frustrated in the Taft regime, has become a reality under entirely different auspices. In fact, the negotiations are non-political, but the experiment has political flare-ups, of which more will be heard as the number of trade agreements increases. | Briefly, the national policy is to | develop trades with other countries | whereby America undertakes to en- courage the purchase in this country of various imports of a selective char- acter in return for an opening of for- eign markets to American products. Brazil Tries to Grow Cotton. Thus, Brazil, with which country a trade agreement was recently com- pleted, grows considerable coffee for American consumption, but, in turn, Brazil has lately been trying to grow cotton when American cotton produc- tion needs foreign outlets, The negotiations are condueted by an interdepartmental committee pre- sided over by Assistant Secretary Francis B. Sayre, who represents Sec- retary of State Hull. The committee comprises representatives of the De- partment of Agriculture, the Depart- ment of Commerce, the National Re- covery Administration, the Tariff Commission and George N. Peek, the special adviser to the President on foreign trade. While differences of opinion have been expressed by Mr. Peek on the one hand, and Mr. Sayre on the other, they relate to formula and procedure with the hope of attaining the same objective—increase in American em- ployment, Repercussions Seen. ‘The approach is by commodities and with keen recognition of the fact that | negotiations between America and an- | other country might have repercus- sions in a third or fourth country. Hence, so far as possible, negotiations are opened with as many affected countries as possible at the same time. ‘Thus, America is interested in getting ‘wood pulp from Sweden, but this af- fects concessions to Finland. When coffee was discussed with Brazil, it re- quired conversations with other coffee- producing countries in Central Amer- ica and the Caribbean. To date, treaties or agreements which need no further ratification by Congress, since they were specifically authorized by both houses, have been completed with Cuba and Brazil, and there are agreements almost ready for signature with Colombia and Haiti. Other agreements are pending or ne- gotiations have been begun with Bel- gium, Sweden, Guatemala, Switzer- Jand and the Netherlands. Hearings have been announced for American importers and exporters and producers interested in the products of Finland and Canada. The Cana- dian negotiations will follow imme- diately after the hearings are com- pleted, which will be in the latter part of March. Split on Concessions. ‘The most-favored-nation clause in existing treaties is one of the vexing problems that affect the negotiations, because, under one interpretation, a third country eutomatically gets the benefit of any concessions in duties given by the United States to a sec- ond country. It has been argued by Mr. Peek that this should not be given unless the third country also| grants concessions. But the Depart- ment of State takes the view that unless the third country is discrim- inating against the United States and thus violating the most-favored-na- tion clause the United States must give the same duties to countries that have the most-favored-nation prin- ciple in their treaties with this Gov- ernment. Another perplexity arises on account of the instability of foreign exchange. ‘The gold bloc countries naturally are basing their trades on the mainte- nance of their gold standards and on the probability that the United States will not go back to the old gold basis, but will retain a 60-cent dollar. The interdepartmental committee is the subject of considerable pres- sure from interested groups and is under attack through members of Congress when industries or prod- ucts of their constituents are ad- versely affected. The general trend is in the direction of scaling down tariffs, and in this respect the whole policy looks toward a reconstruction of American foreign trade whose col- lapse brought so much of present- day unemployment. (Copyright, 1935.) British Admiral Dies. LONDON, February 6 (#).—Ad- miral Sir George Edwin Patey died today at the age of 75. He had seen service with the royal navy in many parts of the world. He was in com- mand_ of the North American and West Indies station in 1915 and 1916. What’s What Behind News In Capital Hull Again Rings Up “No Sale” on U. S. Cash Register. O cannot get any customers. ‘This is frequently discourag- ing to business men, and it is be- ginning to discourage the New Dealers. You can mark the progress of one big angle of the business by lifting the cover on the scene at the fifth consecutive collapse of the Russian negotiations recently. The traders were grouped in the office of Mr. Hull, Secretary of State. | He and his three aides (Messrs. Moore, Bullitt and Kelley) affected the Supreme Court countenance cus- tomary to Yankee traders. In came M. Troyanovsky, the Russian Am- bassador, supposed to be bearing a compromise offer. After greeting M. Troyanovsky, Trader Hull waited for him to speak. The Russian dickerer said his government had instructed him to reject the American credit pro- posal and added that Moscow felt its demand for a long term loan and credit was reasonable. Mr. Hull was so ezasperated, he got up and said, in effect: “If that is the way you feel about it, the trade is of).” M. Troyanovsky was surprised. He expected some discussions. Nobody said anything. The Yankee traders arose. There was nothing left for the Russian trader to do but leave, and he did. Mr. Hull had to ring up “no sale” again on the empty cash register, BY PAUL MALLON. NLY one thing is wrong with President Rocsevelt’s firm of Yankee Traders, Inc. It The underlying difficulty in the Russian case is the same as in all. The Russians will not trade unless they get the best of it. Specifically | they spurn a long-term credit and | demand a $100,000,000 cash loan. In other words, they not only refuse credit but want to borrow from the store. Storekeeper Hull will give them five-year credits and no more. Diplomatic Shooting Match. The result is that a subtle diplo- matic shooting contest has started between the United States and the Reds. Our diplomats are planting stories in our press that they will dissolve the export-import bank | for Russia. Also that they will start an economic blacklist of nations with whom they do not do business. In response the Russians have planted a yarn in Moscow that Mr. Roosevelt promised M. Litvinoff a cash loan and that the President now is going back on his word. It is all very merry, but there still is no cash in the till and no early like- hood of any. The split inside the Senate Appro- priations Committee on the President’s relief bill was worse than advertised. Democratic members did their best to cover it up. First they invited the Republi- cans to leave the room, so they would be among friends. Then little groups got together to dicker. The unreconstructed rebel, Sena- tor Glass, had no part in it. He walked off and let the rest fight. Glass has about all the rebellion he can handle in fighting the New Deal money and banking policies, and ap- parently does not want to take on the relief fight also. Other members slipped around cor- ners, dodged reporters, denied they were meeting, and generally acted as if Sherlock Homes was after them. The reason is that the New Deal's ace compromiser, Senator Byrnes, was trying to work things out to avoid a public fight on the floor. The ‘World Court licking is still fresh in the minds of all. The two with whom he was having the most trouble were McCarran of Nevada and Russell of Georgia, although Adams of Colorado was obstreperous enough to want to know why twice as much money should be tossed into unnecessary public works to care for half as many THE EVE BANK BILL VIEWS Says Measure Outlines Gen- eral Objectives of the Administration. By the Assoclated Press. Presentation of the new banking bill to Congress was described by President Roosevelt today as intended to outline the general objectives of the adminis- tration. ‘Though Mr. Roosevelt had withheld personal indorsement of the draft which would increase the Federal Re- serve Board's powers, his statement at today's press conference prompted ob- servers to believe the President is in accord with the main purposes of the measure. In reply to press conference ques- tions, the Chief Executive termed fantastic any thought that a pro- vision of the banking bill would reduce the 40 per cent gold reserve behind United States currency. Meanwhile, on Capitol Hill, Senator Carter Glass apparently was set to open fire on the bill, as legislators heard that efforts might be made to | keep it out of the hands of a subcom- mittee which the Virginia Democrat heads. Such a hint was seen in the remark by Senator Fletcher, Democrat, of Florida, that the “whole Banking Committee probably will want to handle the bill,” which he interpreted as giving the administration more con- trol over credit and the issuance of currency. Glass Is Confident. Fletcher is head of the Senate Bank- ing Committee, of which the group headed by Glass, is a subcommittee. Glass, conservative opponent of the bill which would widen the Federal Reserve Board's powers, said he did not believe the reports that his com- mittee would not handle it. “When my subcommittee gets it, I'll G_STAR, WASHINGTON, IRODSEVELT GIVES | _Nomi i SHEPARD SERVANT ASSISTS HIS AL |Wife’s Addiction to Liquor Revealed in Trial by Filipino. have something to say,” he had de- clared. Fletcher planned to introduce the bill into the Senate today. It was drafted by officials of the Treasury Federal Reserve System and Deposit Insurance Corp., but bears only the partial indorsement of President Roosevelt. Glass maintained that Marriner S Eccles, governor of the Federal Reserve Board, had failed to keep a promise to show the bill to him before any one else saw it, though Eccles said that through a mix-up, the bill was sent to Congress without his knowlecge | and before he got a final draft himself. | Change Evokes Interest. Yesterday brought some discussion | of the present composition of the sub- committee, headed by Glass. Some! conservatives expressed the belief that the addition of three liberals to the subcommittee had had the effect of “packing” it against its chairman and | other conservatives. Glass himself did not make such an accusation, saying merely that it would be “interesting” to know why the membership was increased. Fletcher who named the new members, said: “I wanted a good subcommittee That’s a good, fair committee.” Last year the subcommittee con- sisted of Glass, Bulkley of Ohio, and McAdoo of California, Democrats, and Townsend of Delaware and Walcott of | Connecticut, Republica! Generally speaking, this line-up yielded a vote of four conservatives to one liberal, Bulkley. | Walcott was defeated in last year's | elections, and replaced by Couzens, | | Republican, of Michigan, a Hberal. Then to the membership was added Byrnes of South Carolina, who holds a position well within the administra- tion leadership; Bankhead, a staunch administration supporter, and Cut- ting. New Mexico independent Repub- | lican. who supported Roosevelt in 1932. | Thus the alignment has been shifted | to five liberals and three conserva- tives. CHAPMAN RETURNS FROM VIRGIN ISLES Assistant Secretary of Interior Denies He Was Called Back to Washington. unemployed. Byrnes ran around from rebel to rebel and then to a telephone to talk | to the White House. He will fix it. Huey Long recently wrote a friend about his presidential aspirations as follows: “You flatter me. Believe me when I say that I have no further political aspirations. I would be a happy man Congress in Brief By the Assoclated Press. ‘TODAY. - Senate. ‘Takes up slender calendar after marking time for several days. Appropriations Committee considers relief bill amendments. Banking Committee prepares to re- port out farm credit bill. Exports hearing proceeds before Agricultural Committee. House, Debates State, Justice, Labor, Com- merce appropriation bill. Ways and Means Committee and Labor Subcommittee consider eco- nomic security bill. Military Affairs Committee prepares bill to eliminate war profits. ‘YESTERDAY. Senate. In recess. Appropriations Committee Demo- erats drafted changes in relief bill. Munitions Committee hears of ship- builders’ attempts to exert pressure on high officials. Interstate Commerce seeks investi- gation of American Telephone & Tele- graph Co. House, Refused to investigate Postmaster General Farley’s stamp gifts. Debated four-department supply b 11 Judiciary Committee killed birth- control legislation. Military Committee recommended increase in Army strength. ‘Ways and Means Committee studied social security mT if I could secure the passage of my bill for the redistribution of wealth * * * for I would that night retire from the Senate and all political life * * *7 That is a sound offer for any presidential candidate, as no one will take him up on it. A. A A. Administrator Chester Da- vis does not believe the reports he sees in the papers about him leaving the New Deal July 1. He says he has no such intention and has re- ceived no such suggestion. Huey Long uses United States Senate Judiciary Committee sta- tionery, on which he adds: Louis- iana office, 822 Perdido street, New Orleans.” In other words, the Huey Long branch of the Senate Judiciary Committee is at that ad- dress. One bill which no one need worry about any more is that of Senator Norris to abolish politics in the Post Office Department. Few Congressmen will dare oppose it openly, but they will kill it with silence. ‘The New Deal is whooping up pres- sure on Congress for the relief bill by saying February 10 is the deadline when Mr. Hopkins’ F, E. R. A. money will run out. There are several ways he can get more money temporarily if he wants to. Supreme Court experts say there is nothing to prevent the court from handing down the gold de- cision unezpectedly after the mar- ket closes some day, although it never has been dome before. The latest untrustworthy gossip is that the decision will be siz to three or seven to two in favor of the Government, with Justice Hughes writing the majority opinion and Vamun(ter the minority, (Copyrighh. 19850 By the Assoclated Press. MIAMI, Fla., February 6.—Oscar L. Chapman, assistant secretary of the | interior, arrived here yesterday by fly- ing boat from San Juan, Puerto Rico. He was bound for Washington after a short tour of inspection of Federal public works in the American Virgin Islands and Puerto Rico, but denied he had been summoned home. (An Associated Press dispatch from San Juan said he had received an urgent cabled request from Washing- ton.) Chapman laughingly declined to talk about the new Virgin Islands rum “until I have talked with Mr. Ickes.” ‘The Public Works Administration, under Secretary Ickes’ direction, has been spending $1,000,000 reviving the manufacture of Virgin Islands rum, the principal industry before prohibi- tion killed it. “The product,” said Chapman, “is not yet ready for market.” The assistant secretary left Wash- ington by boat 12 days ago. He said he had completed his mission. Spain Ends State of War. MADRID, February € (#).—A decree was published in the Official Gazette today ending the state of war in Asturias and Catalonia Provinces and in numerous cities where it had been maintained since the recent abortive revolt. Communal Village Becomes Prosperous as a Corporation By the Associated Press. AMANA, Iowa, Pebruary 6—This little village, whose 1,400 German- stock inhabitants renounced the se- cluded communal existence their fore- bears led for 90 years, greeted pros- perity today. There was no unemployment prob- lem, end Arthur Barlow, business manager of the Modern Amapa Stock Corp., formed in 1932, announced & 5 per cent bonus totaling $6,751 on all 1934 wages. The total pay roll amounted to $154,342, an increase of nearly $25,- 000 over 1933, in spite of the fact source of int back by drought, and its principal industry— the woolen mills—slumped under 1933. More than $14,000 of the total was paid to noncarporation members who By the Assoclated Pres.. TOPEKA, Kans, February 6 —The defense in Maj. Charles A. Shepard's wife murder trial produced more wit- | nesses today to tell of Mrs. Zenana Shepard’s addition to whisky and af her moody nature. T hopes to prove the second wife | of the now retired 63-year-old Army | medical officer did not die at Fort Riley, K: s, of poison given by the | major. the Government charges. | but died .ccidentally, or committed | suicide. Tells About Drinking. MaJ. Shepard's Filipino house boy, | Cenon Manoloto, testified Mrs. Shep- | ard often “drank two-three pints” of | whisky in a day. He said: “I got it for her trom bootleggers around Fort Omaha.’ Manoloto said Mrs. Shepard some- | times drank straight alcohol, and while | they were in the Philippine Islands drank a quart of gin daily Lavenia Allen's testimony at the former trial was then read bv Lloyd Kagey of defense counsel. She was a neighbor of the Shepard’s at Fort Omaha. Moody at Times. Mrs. Shepard, she said, was moody and sometimes seemed to be not quite normal mentally or physically. Mrs. Shepard's teeth pained her, the | witness said, and she constantly used ! “pain_tablets.” Maj. Forest Holycross and his wife, Helen, both of whom knew the Shep- ards at Fort Riley, testified in sup- port of the defense drunkenness con- tention. “RELIGIOUS MORONS” ASSAILED BY BISHOP Cincinnati Clergyman Declares Church Members Do Not Under- stand Opportunities. By the Associated Press CHICAGO, February 6 — Bishop Henry W. Hobson of Cincinnati last night told delegates to the ninety- eighth annual convention of the Episcopal Diocese of Chicago that a majority of present-day church mem- bers are “religious morons.” The Cincinnati churchman termed complacent and compromised church members “as an army of slackers | who are preventing organized religion from exerting any great influence on | social, economic, political, national and international affairs.” “The great majority of our mem- | bers are woefully ignorant so far as any real knowledge of the Christian religion or the church is concerned,” Bishop Hobson said. “They have lit- tle or no understanding of how Chris- tian principles might be brought to bear on the solution of the pmblems‘ of our day. Judged by any standard | to determine their Christian intelli- gence, they are in the maron class.” SIR JAMES HEATH WED Marriage Fourth for 83-Year-Old Colliery Proprietor. LONDON, February 6 P).—Sir James Heath, 83-year-old colliery proprietor, and Dorothy Mary Hodg- son, 36, were married today at the registry office. The manxriage is Sir James’ fourth, his third, with Sophie Mary Elliott- Lynn, an aviaWix, having been dis- solved by divorce in Reno, in 1932. SIS e v Automobile Skid Is Fatal. BATAVIA, N. Y., February 6 (#).— John C. Lee, jr., 31, of Syracuse, N. Y., was injured fatally yesterday when his automobile skidded and was struck by a trailer truck loaded with auto- mobiles. are added to the pay roll only when there is more work than the members can handle. Nonmembers are still being employed on the 26,000 acres of fertile prairie land and in the mills, which, under the modern re- gime have produced so lavishly that members’ wages have been increased each year. Since early last Fall the woolen mills have been running at capacity and are operating two shifts on e 40-hour-week basis. The old Amana colony was consid- ered the largest and most successful communistic society in the United States. It originated in Germany in 1714, but in 1842 transplanted itself on a tract near Buffalo under the name of the Ebenezer Society. Three years later the colonists pil- D. C, nated for Motion Picture Arts and Sciences Awards 1 WEDNESDAY, FEBRUARY &, 1935. | The six film stars who have been nominated for the annual Academy of Motion Picture Arts and Sciences awards, presented for best performances in 1934, are pictured here. Left to right, top, Claudette Colbert, Norma | Shearer and Grace Moore. Below, le | Powell and Clark Gable. Frank and 3 “Left Wingers® | Lose A. A. A. Feud and Resign Way Is Opened for Davis | to Step Out as | Session Ends. | |Howe to Remain on Consumers’ Staff in Minor Role. By the Associated Press Jerome Frank, Agriculture Adjust- ment Administration general ccunsel, | and three of his aides, all known as “left wingers,” resigned today as a re- sult of a general reorganization of the Farm Adminisration intended to remove internal strife. The shake-up was ordered yesterday by Chester C. Davis, A. A. A. admin- | istrator, with the approval of Secre- tary Wallace, and opened the way for the resignaticn of Davis himself, prob- ably after Congress adjourns. President Roosevelt said at his press conference today he knew nothing of the reorganization move and described it as a purely internal affair. Thomas Takes Duties. Seth Thomas, conservative Depart- Frank this morning at a meeting of staff advisers called by Davis. Frank is a former Chicago attorney and a friend of Prof. Felix Frankfurter of Harvard. Also missing from the meeting were three of Frank's assistants, Francis M. Shea, Lee Pressman and Victor W. Rotnem, who submitted their resig- i nations, and Alger , now on leave as counsel for the Senate Munitions Committee. Hiss will not return to the Farm Administration. Fred C. Howe, consumer's counsel, | and Gardner Jackson, his assistant, | two others who have sided with Frank's legal staff on questions of ment of Agriculture solicitor, replaced | {t to right, Frank Morgan, William JEROME FRANK. —Harris & Ewing Photo. policy or procedure, were not included by Davis in his revised general staff. Jackson Resigns. However, Howe will remain on the consumers’ counsel staff in a minor capacity. His successor has not been selected, officials said. Jackson re- signed. This group of men has been known as the “radical” element ever since the A. A. A. was organized and has ‘con- tinually differed with Davis and Wallace. Rexford G. Tugwell, Undersecretary of Agriculture, who formerly sided with the “left wingers” withdrew | almost entirely six months ago and has devoted his time to supervising the detailed work of running the de- | partment. | Davis has declared himself as anxious to remain as administrator during the emergency era of the farm adjustment program, but equally anxious to take up his private busi- ness when that period is over. | 'SURRENDER TO AVOID EXECUTION OFFERED Raymond Hamilton, Doomed Fugitive, Seeks Term in Alcatraz. By the Associated Press. DALLAS, February 6.—Raymond Hamilton, fugitive bank robber and | gunman, today offered to surrender to Federal authorities and accept & long term in Alcatraz Island prison, i provided they would save him from | death in the electric chair for mur- der. The offer was made through his brother, Floyd, arrested yesterday in Shreveport, La. United States District Attorney | Clyde Eastus promptly declined the offer. The Hamilton brothers barely es- caped death in a police trap at a | Dallas apartment Monday night. Offi- cers fired nearly 200 shots at them. Raymond, probably wounded, still is at large, but officers have closed most of his avenues of escape from this area. Raymond Hamilton is under death sentence for the shooting of Maj. Crowson, a guard at Eastham State Prison Farm, in an escape more than a year ago when Clyde Barrow aided Hamilton to escape. GARNER SIGNS PAY BILL Deficiency Measure Now Goes to % ‘White House. ‘The deficlency bill, carrying the McCarran amendment for restoration of the remaining 5 per cent of the Government pay checks, as of April 1, was signed today by Vice President Garner and now goes to the White House for approval. It had been signed previously by Speaker of the House Byrns. The measure probably will reach the White House late today or to- morrow. Hotel Robbed of $1,500. CHICAGO, February 6 (#),—Hold- ing four persons at bay with a re- volver, a lone robber invaded a Gold Coast hotel yesterday and escaped with a $1,500 pay roll. Two & clerk and Charles Gratz, the hotel grimaged to the tract in Iowa County Mml‘mmm manager, were herded into an office where the robbery took place, 'TENANT FARMERS ' VICTORS IN COURT I SCREEN STARS CIEDFOR AARD Artistry Wins Nominations' Based on Outstanding Films in 1934. By the Associa.eu Fress. Claudette Colbert, Grace Moore Norma Shearer, Clark Gable, Frank | Morgan and William Powell have been nominated for the Academy of Motion | | Picture Arts and Sciences awards for the best performances in 1934, the! | academy anncunced last night. Nominations also were made for the best motion picture, direction, original | writing, adaptation writing, short sub- jects, assistant director and music, as | well as art direction, cinematography sound recording and fillm editing in the technical field. Voting will begin February 12 and the winners will be announced at the academy banquet February 27. Basis of Nominations. Awarcs will be made to one actor| and one actress. Gable's nomination | was for his work in “It Happened One " Morgan's for flairs of | and Powell's for “The Thin Miss Colbert’s performance was held to be outstanding in “It | Happened One Night.” Miss Moore's |in “One Night of Love” and Miss Shearer’s in “The Barrets of Wimpole Street.” | The nominations for direction were: | Frank Capra, “It Happened One | Night”; ~Victor Schertzinger, “One | Night of Love,” and W. S. Van Dyke “The Thin Man.” Twelve nominations were made for the most outstanding motion picture: “The Barretts of Wimpole Street.” | “Cleopatra,” “Flirtation Walk,” “The | Gay Divorcee,” “Here Comes the Navy,” “The House of Rothschild,” “Imitation of Life,” “It Happened One Night,” “One Night of Love," “The Thin Man,” “Viva Villa” and “The White Parade.” Original Work Hailed. ‘This season’s nominations for the best original motion picture story go to “The Richest Girl in the World,” story and screen play by Norman Krasna; “Manhattan Melodrama.” HOLLYWOOD, Calif.. February 6.— | PENSION INCREASE MOVE ATTACKED Costs Cited to Check Foes of Limits Set in Pres- ent Bill. By the Assoclated Press. A backfire against the Townsenders and other advocates of more liberal old-age pensions was kindled today by Democratic leaders of the House Ways and Means Committee. They gathered figures to show taxes States will have to bear if the ad- ministration’s social security bill is passed in its present form. Publication of the figures, the group hopes, will cause many voters to pro- test to their Congressmen against granting benefits larger than those provided in the Roosevelt-backed measure. Yesterday Secretary of the Treasury Morgenthau came forward with a pro- posal to reduce the Roosevelt bill's scope. Would Ban 8,000,000. He said upward of 8,000,000 farmers, domestic servants and transients should” not get compulsory old-age pensions because collecting taxes to finance their pensions would be a ter- rific task. Morgenthau took issue witn Secretary of Labor Perkins and Presi- dent Roosevelt's Economic Security Committee in this stand and the Pres- ident left it up to Congress to decide which was right. _Another Morgenthau recommenda- tion which met no opposition from the Security Committee was that pro- posed pay roll taxes for compulsory pensions be stepped up to keep the Government from running far into debt The statistics on State costs are being calculated on many different | bases—to show what the cost would be for $20 or $30 a month pensions to persons over 60, 65 and 70. Would Double Ceosts. In one Southern State, the calcula- tions showed that an old-age pension of $30 a month—half furnished by the State, half by the Federal Gov- ernment—to persons over 60 would cost the State more than it now spends for all of its other activities. That figure took into account the | estimate by Dr. Edwin E. Witte, ex- ecutive director of the Economic Se- curity Committee, that at least one- third of those eligible for pensions would not apply. The congressional committees last night had only two unanimously en- dorsed suggestions before them: 1. That the function of issuing and selling voluntary annuity certificates be transferred from the new Social Insurance Board to the Treasury to eliminate the onus of charity; and 2. That proposed taxes for the com- pulsory old-age pensions be stepped up 0 keep the Government from going | too far into the red on “unearned” an- nuities. No suggested changes here offered for other sections of the bill, but these two were praised by Democratic mem- bers of the Ways and Means Commit- tee. Doughton Lauds Statement. Chairman Doughton, Democrat, of North Carolina termed Secretary Mor- genthau's statement as “fine”; Repre- sentative Cooper, Democrat, of Ten- nessee used similar language and Rep- resentatuve Vinson, Democrat, of Ken- tucky said “I'm for them.” Repub- licans reserved comment. As it now stands the bill provides two forms of old-age pensions, one is the compulsory for employes making less than $3,000 a year, and the other is voluntary, for those making more than that amcunt and getting back whatever they choose Lo pay in. For the compulsory pension, both employe and employer are taxed a percentage of their pay roll and earn- ings. The money is to be kept in the Treasury and paid back to the worker when he reaches 65. The Federal Government could not advance more than $15 a month for these pensions, screen play by Oliver H. P. Garrett and Joseph L. Mankiewicz, from an | original story by Arthur Caesar, and | “Hideout,” screen play by Frances | Goodrich and Albert Hackett, from an ] original idea by Mauri Grashin. Adaptation writing nominations: “It | Happened One Night,” screen play by | Robert Riskin; “The Thin Man" screen play by Albert Hackett and Frances Goodrich, and “Viva Villa,” screen play by Ben Hecht. Short subjects: Cartoons, “Holiday Land,” “Jolly Little Elves” and “The Tortoise and the Hare.” Comedies, “La Cucaracha,” “Men in Black” and o Men?"” Novelties. “Bosom ity of Wax” and “Strikes Six Union Organizers Cleared of‘ Charges Before Arkansas Judges. By the Associated Press LEPANTO, Ark., February 6.—Bar- ratry charges against Ward H. Rogers, former Federal Emergency Relief Ad- ministration instructor, and Lucien | Koch, director of Commonwealth Col- | lege, Mena, Ark., were dismissed today. | Dismissal of these charges against | the two young organizers for the | Southern Tenant Farmers’ Union was | the second victory in the courts for | the union in two days. Two white and two colored organ- izers for the union, charged with ob- taining money by false pretenses, won | directed verdicts of acquittal before Circuit Judge Neil Killough at Wynne, Ark., yesterday. The city charged Rogers with spreading “faise rumors Rodgers and Koch were arrested here Saturday at a rally of tenant farmers. Congratulates Woman Who Will Be 100 Years O0ld Friday. MINNEAPOLIS, February§ (#).— A letter bearing “hearty congratula- tions and best wishes” from President Roosevelt brought cheer to Mrs. Ellen Rolland as she made prepara- tions to celebrate her 100th birthday anniversary Friday. She is a native of Bergen, Norway, and came to this country 60 years ago. \Chinchillas, Hit Worth Their By the Associated Press. NEW YORK, February 6.—They may look like a de luxe edition of an abbreviated rabbit, and they are scared to death, but they are the hit of the International Trade Fair. They are literally worth their weight in gold—a pair of chinchillas, the small South American rodents that carry on their backs the most valuable |and calumnies whereby discord and | disquiet may grow among neighbors.” | PRESIDENT éENDS CHEER| MOVIES TO BE SHOWN NIGHT AIR TRAVELERS Notables Will See First Demon- stration of New Entertain- ment on Trip. Motion picture entertainments for night-flying air travelers will be dem- onstrated during the flight of a regu- larly scheduled Central Airlines trans- port airplane from Washington to Pittsburgh tomorrow evening. The proceedings will be described in a radio broadcast. Among the guests on the “flying theater” will be Gen. Douglas C. Mc- Dougal, U. 8. M. C.; Senator Guffey of Pennsylvania, Eugene L. Vidal, di- rector of Air Commerce, and Stephen A. Cisler, general superintendent of the railway and airmail services, Post Office Department. The flying theater is to be christ- ened at Washington Airport by Mrs. William Frank Allen, daughter of Sen- ator King of Utah, just before its de- parture for Pittsburgh at 5:35 p.m. The film to be shown is “Devil Dogs of the Air.” A reception for the flight guests will be held at the Mayflower Hotel at 3 p.m. tomorrow. —_— Gen. Smuts Improving. CAPETOWN, Union of South Africa, February 6 (#).—Gen. Jan Christian Smuts’ condition was great- ly improved today and his tempera- ture normal. The 65-year-old states- man was taken ill several days ago. of Trade Fair, Weight in Gold never seen one alive. There are a couple of hundred pairs in this coun- try in breeding farms. South American countries have laws against their exportation and all the chinchillas in the United States are descended from two pairs smuggled out of Bolivia 12 years ago by a mining engineer. The price tag on the two furry guests of honor at the exposition in the Grand Central Palace this week reads $1,000 each. The skins bring| $100 each, about $2 s square inch, & Would Increase Tax. Workers who now are close to 65 would not, when they reach that age, have contributed enough to pay their pensions. The Government will do- nate the balance—or the “unearned annuity.” Estimating that at present the | Pederal Government’s cost to meet | “unearned annuities” would be $1,- 500.000.000 & year by 1980, Morgen- thau proposed that the compulsory tax start at 2 per cent, instead of 1, as the bill now provides, and increase te 6 per cent in the thirteenth year instead of 5 per cent in the twenty- first year. Your Income Tax Who Is the Head of a Family. A taxpayer, though single, who sup- ports and maintains in one household one or more individuals who are closely connected with him by blood relationship, relationship by marriage or by adoption and whose right to ex- ercise family control and provide for these dependent individuals is based upon some moral or legal obligation is the head of a family and entitled to the same exemption allowed a married person—$2,500. Also he may claim & $400 credit for each dependent. For example, a widower who supports in one household an aged mother and a daughter 17 years old is entitled to an exemption of $2,500 as the head of a family, plus a credit of $400 for each dependent. a total of $3.300. The $400 credit, however, does not apply to the wife or husband of a taxpayer. though one may be totally dependent upon the other. Several factors are involved in de- termining whether a person who files a return as the head of a family is to be thus classified. The element of either legal or financial dependency must exist. A taxpayer who supperts in his home minor children over whom he exercises family control is classified as the head of a family, even though the children may have an income of their own sufficient for their maine tenance. If he does not support them, by reason of their own income, but does exercise family control, he cannot be clasified as the head of a family. If an individual supported is an adult and there rests upon the tax- wayer a moral or legal obligation to provide a home and care for such in- dividual, the exemption as the head of a family is allowed, provided the in- dividual is financially dependent. If the individual is not financially de- pendent, the exemption, even though the taxpayer maintains the common home and furnishes the chief support, does not apply. For income tax purposes thege can be only one head of a family, and the exemption cannot be divided. Not in- frequently claims for the $2,500 ex- emption are received from two or more members of a family. It should be remembered that a sin- gle person, whether or not the head of a family, is required to file a return if his or her net income for 1934 was $1,000 or more, regardless of whether the return is non-taxable by reason of