Evening Star Newspaper, February 7, 1935, Page 2

A—2 %% ROOSEVELT BILL FACE BIG CHANGE President Expects Action on Measures Offered by Subordinates. BY DAVID LAWRENCE. Much of the so-called administra- tion legislation will be materially changed before its final enactment. And this wili happen with the knowl- edge, consent and approval of the President himself on many of the changes made. This is because a rather novel method of procedure has been adopted by Mr. Roosevelt in handling meas- ures vital to his recovery program. The Democratic majority being so large and substantial and Mr. Roose- velt's leadership over his party being acknowledged, Congress came back here with the idea that the initiative should be taken by the President. But there is also the fact that administration officials are by no means equipped to write bills that | will stand up under adverse criticism and particularly under the fire that is aimed at every piece of legislation which affects business. All legisla- tion contains compromises arrived at after hearings or public comment. Amendments Expected. Usually, of course, when a bill is introduced, it attracts more or less attention, depending upon the im- portance of the sponsor, but every- body assumes then that committee consideration will mean some amend- ments. What, therefore, would be the case if an administration measure came from the White House or a cabinet officer and then it was sub- ject to rather important changes? Would it be charged that Congress was disagreeing with the Chief Ex- ecutive or that a “rebellion” was developing? Clearly, the President, who is astute enough to realize that legislation in matured and final form cannot pos- sibly come out of the executive de- partments, hit upon the natural solu- :ion of the dilemma. He told his asso- ciates to go ahead with their drafts and send them to Capitol Hill, while he, himself, withheld personal indorse- ment. In this way, Mr. Roosevelt keeps himself free to advise with the committees.of Congress and accept or reject changes in measures written by his own appointees in the executive branches of the Government. As a matter of fact, a President un- der the Constitution is supposed to recommend legislation and not neces- sarily to write it, but members of Congress themselves ask for the ad- ministration ideas in draft form so &5 to get & starting point. Depends on Henchmen. The indications are that the admin- istration does not intend to allow un- friendly committees to emasculate its legislation or to put jokers therein, but will depend on its own henchmen in Congress to decide how far the adverse criticism justifies a change in the wording of a particular measure. Specific examples of this whole pro- cedure will be found in the banking legislation and in the proposals to reg- ulate holding companies. In neither instance has Mr. Roosevelt approved the drafts, except in principle. He feels open-minded on points that will be questioned, and, if the committees get into a deadlock or if there are dif- ferences between the Senate and House, Mr. Roosevelt will attempt to guide the compromise that must in- evitably follow a revelation of these differences. The holding company bills will be more drastic on the day their con- sideration is begun by congressional committees than on the day they are reported out and still less destructive in their effects when finally enacted into law, if ineeded the passage of holding company legislation at this session is ultimately decided on at all. For it must not be forgotten that a national power policy has not yet been formulated by the President’s special commission, and it is difficult to see why nolding companies would be regulated without regard to what is done nationally on the whole power qute:uon with its intricate tangles on rates. Vital Changes Are Faced. As for banking, the drafts sent to Capitol Hill this week represent the maximum of effort toward centraliza- tion of governmental power over credit. The bill will be altered in vital re- spects before it gets through elther house. But the administration expects the principal suggestions for change to come out of the criticism that will be made by those most affected. Also there is reason to believe the administration has encouraged leaders of the banking and business world to sit in with the committees in Con- gress and those representatives of ex- ecutive departments who go to Capi- tol Hill to work with the committees on specific pieces of legislation. This is the Roosevelt way of getting the maximum that appears to him feasible or workable. and it probably will work as long as the President is able to control his own majority in both houses of Congress. (Copyright. 1935.) $300 a Week to Feed Birds. NEW YORK, February 7 (#).—Re- lief for birds is costing the city $300 a week, Park officials declined to esti- mate the number of birds enjoying the sunflower seeds and grain, but said there were more than 3,000 on h]and for feeding in Bryant Park alone. Congress in Brief By the Assoclated Press. TODAY. Senate. Meets to swear in Senator Me- Kellar, Democrat, of Tennessee. Financiers talk on foreign trade to Agriculture Committee. Relilef bill amendments studied by | Appropriations Committee. Finance Committee considers eco- nomic security. House, Considers amendments to four de- | partment appropriation bill, Rival economic security proposals scanned by Ways and Means Com- mittee and Labcr subcommittee, Interstate Commerce Commitiee discusses ofl legislation. Appropriations Commi trim President Roosevelt’s powers in $4,880,000,000 relief bill. \ Receives administration banking bill. Receives bill to curb holding com- panies. House. Debates four department supply bill. Military Committee approves War profits curb. ; |[What's What Behind News In Capital Labor Is Biting Cau- tiously in War With New Dealers. BY PAUL MALLON. HE current in-fighting between labor leaders and New Dealers is no parlor game. There has rarely been such biting and scratching in the clinches on any issue, but if you will look closely you will see that each participant is being very careful about whom he scratches. Most of the fingernail work has been done so far on the hide of Don- ald Richberg, the New Deal adviser who is frequently miscalled “assistant president.” Mr. Richberg makes an ideal victim for both sides. He was seclected first by the A. F. L.-ers, Green and Lewis. There is mothing insincere about their dislike of him. They have an old score to settle with this ez-labor attorney, and their private intention is to force President Roosevelt to drop him in self-de- fense. That, however, is a com= paratively personal matter. The real reason Mr. Richberg makes such an excellent goat from a labor standpoint is that fighting against him does not call for a break with the White House. The White House likes that angle of it also. You can see this underlying motif in the fact that while labor claws at Mr. Richberg it is paying suit to Sec- retary Perkins. Publicly, labor is ac- cepting inside word from the Labor Department that Madame Secretary knew nothing of the auto code re- newal, and if she had, Mr. Richberg would not have been able to 1aislead the President. It is true most labor leaders do not believe this. They cannot un- derstand how the Labor Secretary could have been snubbed by the White House on a matter which was considered to be ome of her pet subjects. .Indeed, some skepti- cal laborites are suggesting that she kept Mr. Green away from the White House, stalling him along, until Mr. Richberg could finish misleading the President. It is not customary for every one connected with a labor dispute to tell the truth, so this matter may have to be left to a jury. But mentioning 1t will give you an idea of how bitter the fight is—and how careful. Through this confusion there are certain rays of light. One is that the New Deal labor policy is yet unde- fined, but it will not long remain so. The question of free self-determina- tion of union affiliation for workers is now in the courts (Houde, Weirton cases). These decisiohs will have far more to do with determining New Deal labor policy than the auto code. Also evident is the fact that the ‘White House is not particularly afraid of the A. F. of L, which has about 3,000,000 members among the 26,- 000,000 wage earners. And the A. F. of L. is not particularly anxious to break with any one except Mr. Rich- berg. Resolution Faces Burial. No funeral will be held for Senator Borah’s resolution to investigate re- ligious persecution in Mexico, but it will be buried some dark night with- out you knowing about it. A rather general private understanding exists among members of the Senate Foreign Relations Committee that they will not even take up the resolution if they can possibly avoid it. The rea- son is that they do not consider it a proper function for a Senate com- mittee. The State Department is trying hard not to say so, but it is dead set against the proposal for fear of diplomatic effect in Latin America. Republican Congressmen stared in amazement the other day when Dem- ocrats came trooping into the House on the run to stop a proposed in- vestigation of Gen. Farley’s stamp gifts. There were about 199 Demo- crats present when the session opened. No such turnout usually appears unless | Mr. Roosevelt is delivering a message The Republicans did not know it then, but a confidential call had been sent around by House leaders de- manding the presence of all Demo- crats on the floor at noon. It is hardly a secret that Gen. Far- ley has been at work for some time fixing that. The high-pressure lobbying groups have found a new trick. It was successfully in inducing Senators to vote against the World Court and is now being used by veterans’ lobbies on the bonus. It is founded on an old legis- lative custom. State Legislatures very often adopt resolutions ask- ing Congress to pass or defeat cer- tain national legislation. It is a simple matter for lobbying organi- zations to get such resolutions adopted by the. Legislatures. They are notoriously amenable to lob- bying pressure. ‘When such resolutions arrive here they are more or less terrorizing to Congressmen, for they indicate that their whole State is beseeching them. At least two votes against the Court | were made this way. Bonus petitions now are coming in nearly every day. One day recently two were received by the Senate from Washington State and Missouri (this does not mean these two were lobbied through these par- ticular Legislatures). The scheme is particularly good this year because nearly all the Legis- latures are in session and the peti- tions can be rushed torough to meet any special situation here. Hooks Thrown Into Russia. Another way in which State Sec- issue an adverse gold proper time would be next Monday Lincoln’s birthday. Congress will be in session Tuesday and could enact any necessary legislation., However, ' ' THE EVENING STAR, WASHINGTON, D. C, THURSDAY, FEBRUARY 7, 1935. CIVIL SERVICE BILL AIDED AT HEARING | Senate Subcommittee Told Arguments to Include Executive Branch. The Civil Service Commission and spokesmen for a long list of organiza- tions united in supporting before a Senate subcommittee today the Logan bill to bring all civillan employes in the executive branch of the Govern- ment under civil service laws. All incumbents who were appointed with- out regard to civil service could ac- quire a classified status under this bill upon recommendation of the heads of their agencies and by submitting to & non-competitive civil service exam- ination. 2 A statement submitted by the Civil Service Commission showed that on June 30 last there were 661,094 em- ployes in the executive branch, of whom approximately 451,587 held competitive classified positions under civil service. Of the remaining 199.- 507, about 70,000 were at that time in the new emergency agencies here and throughout the country. The num- ber of these emergency employes in Washington is believed to be between 16,000 and 20,000. Nearly all of the emergency laws creating New Deal agencies allowed the personnel to be appointed without regard to civil service. D. C. Heads Held in Favor. Harry B. Mitchell, president of the Civil Service Commission, testified the Commissioners are in favor of the bill. He also said he has heard the sug- gestion made that it might be advis- able to draft the measure so that the President could bring these groups of employes into the civil service by executive order, rather than by placing them ell under a broad provision in the bill. Senator Logan, Democrat, of Ken- tucky, asked if that plan would mean eliminating ¢ivil service examination requirement from the bill. Mr. Mitchell replied: “No, the examination is all right, but there may be some of the new agencies whose status in the Govern- ment is not fully determined.” If there were such agencies, Mr. Mitchell added, it might not be deemed advis- able to have those employes brought into the civil service. He stated in conclusion, however, that he was for - the Logan bill and was merely bringing before the committee these other sug- gestions he had heard. Others Favor Step. Luther C. Steward, president of the National Federation of Federal Em- ployes, strongly favored the bill. He was companied by representatives of post office clerks, rural letter car- riers and others. Mrs. Harris T. Baldwin indorsed the bill on behalf of the National League of Women Voters. Dr. Luther Gulick approved the bill, speaking for the Commission of In- quiry on Public Service Personnel, which has spent a year studying the methods of appointing public em- ployes in Federal, State and local gov- ernments. He declared only 10 States have civil service laws. H. Eliot Kaplan of the National Civil Service Reform League and Rep- resentative John Dingeli, Democrat, of Michigan backed the bill. Dingell urged an amendment to make sure that special delivery messengers would be included. He asked an all-inclusive bill that would relieve members of Congress of work that takes away time from drafting legislation. Other amendments were suggested to have the bili applied to first, second and third class postmasters and also to clerks in third class post offices. 2 FACE GRAND JURY IN HOLD-UP OF CAR Nolan and Moore Are Detained on $25,000 Bond Each After Hearing. Robert R. Nolan, 32, of Columbus, Ohlo, and Harrison K. Moore, 24, of the 800 block of L street were or- dered held for the grand jury when arraigned in Police Court today in conection with the robbery and shoot- ing Saturday night of a Capital Tran- sit Co. conductor. They pleaded not guilty and waived preliminary hear- ing. Bond was fixed at $25,000 each. The two were arrested when their machine locked bumpers with a police car on Klingle Bridge as they sped from the scene of the shooting at ‘Wisconsin avenue and Macomb street, where Preston:C. Bowling, 38-year- old conductor, was shot through the groin and hip and robbed of $4.50. Bowling is still in a serious condi- tion in Georgetown University Hos- pital. He was shot as he reached into his pocket for some bills after the bandit, identified by passengers on the street car as Nolan, demanded the money in his change carrier. SHEPARD POISON TRIAL NEARS END Defense Ready to Rest and Prosecution Will Call 15 in Rebuttal.. By the Assoclated Press. TOPEKA, Kans., February 7.—The defense neared the end of its case in the Federal Court murder trial of Maj. Charles A. Shepard today, still contending that the second wife of the retired Army medical officer suf- fered from a mental disorder and probably committed suicide. Attorneys for the 63-year-old de- fendant, accused of poiséning Mrs. Zenana Shepard at Fort Riley, Kans., five and one-half years ago, said they expected to exhaust their list of wit- nesses within a few hours. “Staying Young” Rabbi’s Topic. “Staying Young” will be the subject of a sermon by Rabbi Solomon H. Metz Friday at 8 pm. at the Adas Isracl Synagogue, Sixth and I streets. no one expects the decision to be ad- verse. It thought John L. Lewis (mine union leader) was angry in his recent attacks on Mr. Richberg, wait until he hears that a member of e s group) ] as la- bor representative in Illinois on the bituminous coal code. (Copyright, 16360 » Figure in Fatal Night Club Brawl SENATE UNITHITS MAYFLOWER DEAL Revised Reorganization Plan and Special Master Urged in Case. Charging that bondholders never have been fully informed by Disinter- ested parties of the alternative avail- able for disposition of the Mayflower Hotel and attacking the reorganization plan as recently approved by Justice F. Dickinson Letts, a Senate subcommit- tee today completed an 18-page report on its second inquiry into financing activities connected with the local | hotel. Two specific recommendations are | made to the court: Firge that the re- | organization plan be revised to a con- siderable degree in order to eliminate from it the same interests that were instrumental in the original financing, and second, that a special master then be appointed to ascertain the prefer- ence of all bondholders as to disposi- tion of the property. The report was signed by Senator Reynolds, Democrat, of North Caro- lina, chairman of the committee; Sena- tor Carey, Republican of Wyoming, and Senator McCarran, Democrat, of Ne- vada. It will be submitted to the full District Committee late today for approval and further action. A copy also will be submitted to Justice Letts. At the same time, Senator Reynolds made known that a local real estate firm has written him that an out-of- town client stands ready to purchase the Mayflower at a figure in excess of $4.000,000. Senator Reynolds said this proposal will be referred to Jus- tice Letts along with the committee report. An offer of $4,000,000 already has been received from the Manger Hotel interests. The committee follow: “This committee does not recom- mend 1n this report to the court that the $4,000,000 proposition shall accepted, but does earnestly recom- mend that the vices of the reorgani zation proposition be eliminated; that the voting trustees, if used in any plan approved by the court and sub- mitted to the bondholders, shall be disinterested persons, selected by the court, and that the directors of the corporation controlling the property likewise shall be disinterested persons and selected by the court without suggestion or sponsorship from the bondholders’ committees, and particu- larly from any representative of the Halsey, Stuart & Co. and American Bond & Mortgage Co. group of bond- holders or their attorneys, that the bank supervisorship of the hotel management be entirely dis- pensed with at a large net saving the corporation, and that all deposit agreements for bonds now held by either of the deposit groups shall be disregarded and deemed to be can- celled and void, and all said bonds ordered and decreed to be deposited in the registry of the court in order to vest the court with the power to ap- point a special master to hold and conserve the same for final distribu- recommendations tion or dividends or any securities |the severally belonging to the owners thereof. “This committee further recom- mends, as it has heretofore done, in order to arrive at a clear, full and untrammeled expression of the wishes of the bondholders as to the disposi- tion of their property in bankruptey, that a special master be appointed by the court.” be | election eve shooting outbreak JOSEPH J. BRUNO, BRUNO CONVICTED IN ELECTION FIGHT Manslaughter Verdict Re- turned by Kelayres Case Jury After 65 Hours. By the Associated Press. POTTSVILLE, Pa., February 7—A jury that deliberated 65 hours re- turned a verdict of voluntary man- slaughter today against Joseph J. Bruno, former county detective charged with murder in the Kelayres in which five were slain. The verdict provides for 6 to 12 years imprison- ment. Bruno was convicted specifically for the slaying of Frank Fiorella. He can be tried four more times for his life, once on each of the remaining indict- ments. Five indictments also were found against each of six kinsmen, including two sons, James and Alfred Bruno, and a brother, Philip Bruno. The others are Paul and Arthur Bruno, Philip’s sons, and Anthony Orlando, a relative by marriage. Outgrowth of Parade. The trial was the outgrowth of an attack on a political parade the night before the general election last No- vember in nearby Kelayres. Democrats held a mass meeting a few blocks from the home of the former county detective and Republi- can leader. Afterward, a parade was formed, headed by a truck filled with children. As the parade swung down the street on which the Bruno home is situated, firing began. Some witnesses said they believed gunfire flashed from darkened windows of the Bruné home and the apartment of a relative across the street. Others disputed this version, contending the firing occurred in the | STAR. et. stre The shouting and signing broke into screams and shrieks as the parade was shattered by the firing. Five men were killed by bullets. More than a dogzen were wounded. Routine Case Occupies Court Pending Gold By the Associated Press. Calmly, the Supreme Court con- cerned itself today with a “grabiron” or “handhold” on a freight car while the world watched for its $69,000,- 000,000 gold-clause decision. A spectator who dropped in on the court wouldn't have been able to tell from the procedure that part of its task now is the preparation of an opinion that will go down in history as perhaps. one of the most moment- ous it ever bas rendered. The nine justices who will say whether the Government had a right to abolish the “gold clause” in public and private securities and thereby de- cide whether the owners can call for t of a hundred billion dollars or.a hundred and sixty-nine billion were hearing the case today of a Chi- cago, St. Paul, Minneapolls & Omaba ’ Clause Decision Railroad freight brakeman who seeks damages for injuries. G. D. Swinson, the brakeman, says he was thrown from an oil tank car DR. RUHLAND DUE 16 STEEL GROUPS | BEFORE MARCH 1) ARE SUEDBY U.3. Upper: Three men, held on manslaughter charges in connec- tion with the death of Maj. Charles A. Ross, U. 8. A, who died after a fight in the night club Cairo in San Francisco, pictured with their attorney at arraignment before a municipal judge. Left to right: Sam Erlich, headwaiter; Clem Gavatti, operator of the club; George Lippman, attorney, and Joe Vanessi Lower: Maj. William F. Lee (left), who suffered a bruised left eye and Lieut. Winfred Skelton, who received a cut lip in the scuffle which preceded Maj. Ross’ plunge down the stairs. The af- fair climaxed the celebration of the 30th Infantry’s organization day, February 4. —A. P. Photos. OPPONENTS UNITE AGAINSTBANKBILL Conservatives in Congress Join Inflationists in Opposition. By the Associated Press. Strange bedfellows in an economic dispute, conservatives and inflationists in Congress found themselves aligned today in objecting to the Treasury's new banking bill—but for different reasons. The conservatives want to head off what they say will be a trend toward centralization of control over the na- tlon’s credit and currency. Conversely, those pressing for infla- tion think the measure fails to go far enough in concentrating power over monetary polictes. Three-Way Fight Seen. A bitter three-cornered fight among these groups and backers of the ad- ministration’s program was considered certain to result as preparations were made by the Senate Banking and Currency Committee to begin consid- | eration perhaps early next week. The bill would make permanent the present system of bank deposit in- surance and bring about drastic changes in the Federal reserve act. Rallying point of the conservati forces is Senator Glass, sharp-tongued Virginian, author of the reserve act and memter of the Senate Banking Committee. More Power Sought. One of the measure’s features giv- ing this camp most concern, it was said, is a proposal which would vest in a Federal Reserve Board Commit- tee control of open market operations of the Federal Reserve System in the Curites. ‘This power ‘now 1 njored power now is enjoyed by the individual Federal Reserv banks themselves. . e Leader of the Senate inflation bloc, Senator Thomas, Democrat, of Okla- homa, is the suthor of a pending bill to create a Government owned and controlled central bank, to be operated by a Federal Reserve Board” House Left in Front of Store. BALTIMORE, February 7 (#).—A jury awarded Florence Lucarelli $500 because a moving firm left a two-story house in front of her store. The house, it was testified, was left because the movers learned * that the foundation on which it was to be placed was not complete. January Circulation Daily ..126,512 Sunday]30,278 District of Columhs. . KAUFPMANN. Assistant Business Manager of THE EVENING AND SUNDAY . does solemnly swear that the ac- tual number of copies of the paper named sold and distributed during the month of January. A.D. 1935, was as follows: 20 229 B - i g. 21310 LY Zroasiond 12 ™ £ ity Less adjustments . ... at Michell, S. Dak., because of a de- ( Daily fective handhold or grabiron on the car. The justices even had photo- graphs before them so they eould un- derstand the intricacies of “grab- irons.” Newspaper men, who in normal times don’t go near the court save on the weekly decision days, now gather there four times daily so as not to be Dally average net circulation. SUNDAY. Coples. Day: 152788 50 . 133687 27 2 E Less adjustments . . Total Sunday net circulation Average Sunday net circulation. . 8 H KAUPFMA! Asst. Business Manager. SRR S = 0] TUary. 3 ELMER F. YOUNT. 7 Notary Publie. - ] Letter Accepting Health Post Asks Increase in Appropriation. The District’s new health officer, Dr. George C. Ruhland, now health com- missioner of Syracuse, N. Y., is ex- pected to take over his duties here before March 1. His letter of accept- ance, expected for more than a week, arrived yesterday afternoon. Hope for appropriations large enough to carry out a satisfactory health pro- gram was voiced by Dr. Ruhland in his letter to the Commissioners. The question of the adequacy of the Health Department budget, it was recalled to- day, was one of the points over which Dr. Ruhland hesitated after being of- fered the District post. The 1936 bud- get, now awaiting action by the Senate, does not provide for any increase over current appropriations. Reorganization Anticipated. Some reorganization of the functions and services of the Health Department, it is anticipated, will be one of the| first projects of the new health officer in co-operation with Commissioner George E. Allen. Just what form such plans may take has not been indicated by Commissioner Allen. It has been apparent, however, that he has ideas for some reorganization. Before Dr. Ruhland was tendered the post, Allen announced it was his plan to name an advisory committee to study and recommend changes in health administration. He said this body would be created as soon as the new health officer was named, and would be appointed with the advice of the new health officer. Allen, now in Florida on a brief vacation, is expected back Monday. Dr. Ruhland notified the Commis- sioners in his letter yesterday he hoped to arrive here before the erd of this month, if he is able to wind up affairs in Syracuse in the meantime. ‘Takes $1,000 Cut. Dr. Ruhland will take a $1.000 salary cut in coming to Washington. His base salary now is $10,000 but in the past several years he has been receiving but $7,500. The entrance salary here will be but $6,500 unless this is raised specifically by Congress. Because there is & small deficiency in the Health Department funds the Commissioners will not be able to raise his salary to the top of the grade, or $7,500. Officials say the same condition will prevail next year unless the appropriation is increased. ‘The Commissioners are asking that the Senate specifically add $1,000 to the salary of the health officer. If this is done it would have to be ac- cepted by the House. Dr. Ruhland, prior to his decade of service at Syracuse was health officer of Milwaukee for 10 years, serving under three administrations, Demo- cratic, Republican and Socialist. BILL WOULD BUILD RESERVE BY C. C. C. MacArthur Ask: Fund to Recruit ‘and Train Men From Camps. By t > Associated Press. An enlisted reserve force of more than 100,000 partially trained young +men recruited from C. C. C. camps is propased in a bill now being drafted by Gen. Douglas MacArthur, Army chief of staff. MacArthur’s bill, being drawn at the suggestion of the House Military Com- mittee, would provide for voluntary enlistment of C. C. C. camp graduates for two months of intensive military training. After the two months they would revert to inactive status. There is now no available reserve of men to fill the ranks of the Regular Army quickly in an emergency, Mac- Arthur told the House Committee. The young men of the Civilian Conserva- tion Corps, toughened by work in the forest camps, would make ideal re- cruits for a short, intensive training course, he said. After serving two months the en- rollees would be paid $24 per year, suf- ficlent to maintain their interest in keeping the War Department informed of their whereabouts, and periodically presenting themselves for physical ex- amination. ‘The 100,000 men would be enlisted gradually as they left the C. C. C. camps. The estimated cost of the force, MacArthur reported, is $7,000,000. Immediately after the World War, MacArthur said, there were approxi- mately 4,000,000 trained young men available for reserve duty. Congress authorized organization of the reserves, but has never appropriated funds to make the organization possible. HOUSE PAGE SPOTS DOG THAT GOT BY DOORMAN Pup Looked Like Fur Piece, So Gallery Guards Allowed Owner to Pass. Miss Mabel Gaines of New York City got by two House doorkeepers with a tiny Pekingese pup this morn- ing, but did not escape the sharp eyes of Chief Page McKay on the House floor. Since no dogs are allowed in the galleries of Congress, it was Doorkeep- er Ralph Barnes’ duty to request Miss Gaines to withdraw. The doorkeepers noticed the dog when Miss Barnes carried it in, but $1,276,000,000 Assgts In- voived, One Action Attack- ing Proposed Merger. By the Associated Press. ‘Two anti-trust proceedings, involv- ing 16 Cleveland steel corporations with assets aggregating $1,276,000,000, were brought today by the Depart- ment of Justice in the Ohio city. The first suit sought an injunciion to restrain consummation of the pro- posed merger agreement between the Republic Steel Corp. and the Corri- gan, McKinney Steel Co. and its sub- sidiaries. The other suit charged that seven individuals have interlocking direc- torships among 10 competing steel companies and asked the Federal court to dissolve these relationships. Clayton Violation Charged. A statement issued by the depart- ment on the proceedings involving the Republic Steel and the Corrigan Co., aaid: id “The petition alleges that the vari- ous stock acquisitions in connection with this proposed merger are in vio- lation of section 7 of the Clayton anti- trust act and that the effect of the stock acquisition will be to substan- tially lessen competition between the companies involved.” “The petition alleges that the two companies combined will sell more than 16 per cent of the semi-finished steel produced for sale in the entire United States, and 12 per cent of the merchant bars produced for sale in the United States,” the statement added “The petition alleges that the cor- porations involved have already ob- tained the consent of more than two- thirds of each class of stockholders and that unless enjoined the de- fendants will consummate the merger within approximately 10 days. A tem- porary injunction i sought pending the final determination on the merits.” Individuals Are Named. Concerning the remaining litiga- tion the department said: “The other suit is brought under section 8 of the Clayton act against 17 defendants. It charges that seven individuals have interlocking direc- torships among 10 competing steel companies, including the Youngstown Sheet & Tube Co., Inland Steel Co. Wheeling Steel Corp., the Otis Steel Co., Delaware River Steel Co. Re- public Steel Corp., the Corrigan, Mc- Kinney Steel Co., McKinney Steel Holding Co., the Cleveland-Cliffs Iron Co. and the Cliffs Corp. “The interlocking directors who are named as defendants are William G. Mather, S. Livingston Mather, D. T. Croxton, Cyrus S. Eaton, George T. Bishop, William R. Burwell and My- ron A, Wick. “Each is alleged to be a director of 2 or more of the 10 named corpora- tions, which have assets aggregating approximately $900,000,000.” SUITS SURPRISE CLEVELAND. “Don't Know What It's All About,” Say Merger Promoters. CLEVELAND, February 7 (#).—The filing of two Government anti-trust suits here today against 16 Cleveland steel corporations case was & complete surprise, officials of several of the concerns said To the men planning acquisition of the Corrigan-McKinney Steel Co., by the Republic Steel Corp., it was like an exploding bombshell. “We don’t know what it's all about,” a spokesman said. Plans for the merger have been in progress several months, and officials of the companies said nearly enough proxies had been received to author- ize its consummation A few days ago, however, the offi- clals announced the closing of the transaction would be delayed pend- ing the Supreme Court's decision on the gold situation. The Government’s suits were brought here from Washington by Walter L. Rice, a Special Assistant Attorney General. | Exemption Allowed Head of a Family. A head of a family is defined by income-tax regulations as “an indi- vidual who actually supports and maintains in one household one or more persons who are closely con- nected with him by blood relationship, relationship by marriage, ar by adop- tion, and whose right to exercise family control and provide for these dependent individuals is based upon some moral or legal cbligation.” The exemption allowed a head of a tamily is $2,500. The phrase “in one house- hold” may be interpreted as meaning the taxpayer’s personal residence, an apartmert, rooms in a boarding house, hotel, etc. Under certain circumstances it is not necessary that the taxpayer and his dependents live under one roof during the entire taxable year in order that the taxpayer may claim the exemption. If, the common home being maintained. the parent is away on business, or a child away at school or on a visit. the exemption is allowed. Moreover, if a parent is obliged to maintain his dependent children with relatives or in & boarding house, while he lives elsewhere, the exemption still applies. If. however. without neces- sity, the dependent makes his home elsewhere, the benefactor is not the head of a family. The same ruling applies to husband and wife “living together ” If occa- sionally and temporarily the husband is away on business or the wife on & visit. the common home being main- tained, the $2,500 exemption still ap- plies. The unavoidable absence of husband or wife at a sanatorium does not preclude the exemption. But if the husband continuously makes his home at one place and the wife at another. they are not iving together 096 | they sheepishly admitted they thought it was part of a fur neckpiece. within the meaning of the revenue | act. 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