Evening Star Newspaper, February 8, 1935, Page 2

LAWSTAFFS FACE CHANGE IN POLICY Department of Justice to Take Over Prosecution in New Measures. BY DAVID LAWRENCE. The story behind the resignations of Jerome Frank and other lawyers| in the Agricultural Adjustment Ad- ministration is not just a left andj right wing controversy on policies, but | is a fundamental problem of reorgan- ization throughout the New Deal as it affects the side of enforcement OI] the new emergency laws. Some time ago the Justice Depart- ment made an issue of the questicn of how prosecutions under New Deal laws were to be handled. The matter was discussed by the Presiaent with mem- bers of his cabinet and it was decided that the same principle which has for decades governed the administrative departments of the Government would be followed hereafter Normally the Justice Department has a representative in every depart- ment of the Government, who is known a solicitor While he may be at- Department or the ment, for instance, associate of the Attor ney General. Emergency Changed System. le emergency many new created, each with af general counsel. These lawyers were chosen by the heads of the different azencies and without consuiting the Justice Department. Some of them have been good lawyers, but more in- terested in economic philosophy than in developing cases that could be sus- tained by the courts. To put it another way, the Justice Deparument either had to be respon- sible for the law arm of the Govern- ment or the responsibility had to be placed on the different general coun- } sels. Mr. Roosevelt decided that everything ought to be handled | through the Justice Department In the Agriculture Department is Seth Thomas, solicitor. He now has been given full charge of law enforce- ment and all other lawyers have been subordinated to him. Naturally this meant the demotion of Frank, who preferred to re There was noth- ing personal about it; in fact, Frank is recognized as one of the ablest of What’s What Behind News In Capital U. S. Official Beljeading Rumors False, But Prove Significant. BY PAUL MALLON. HE beheading of Messrs. Frank, general inside situstion. Ap- parently no New Dealer ex- cept President Roosevelt him- self could get insurance on his political life these days. Hardly a week passes without some new published rumor of a possible resignation. Those who have been mentioned within the past few months include Messrs. Ickes, Moffett, Clay Williams, Peek, Biddie, Ben Cohen and sundry lesser lights. These rumors seldom turn out to be true, but they reflect an inner conflict and commo- tion which approaches confusion. Newsmen do not sit around and dream these rumors. They come generally from New Deal officials whose reliability cannot be ignored, but who often have some particular ax of their own to grind. The erroneous rumor that Chester Davis, victorious A. A. A. administra- tor, would retire came, at least par- tially, from no less an authoritative source than Mr. Davis himself. A newsman obtained the original tip clsewhere and conferred with Mr. Davis before writing the story. Mr. Davis did nothing to stop the story until soveral days later. Apparently, Mr. Davis did not know at that time where he stood, and dis- covered it only three days before the guillotine was let fall on his opponents. There can be no question about | what happened in the wholesale | shake-up in the Agriculture Adjust- ment Administration. Certain New | Deal smoothies are naturally trying to | make it look like a long-contemplated | routine reorganization—just “putting | the department on a permanent organization basis” sort of thing. This the young lawyers who have come here under the New Deal No Room for Frank. der the new scheme of things But un he ks its own ice Depa there wa an; a e basis Thomas. The A. A. A. may also som day merged with the Agriculture Department anyway in an administra- tive sense, so the concentration of re- sponsibility for legal matters in the hands of tor of the Depart- ment of Agr is a natural evolu- tion. co- lis the customary official excuse, but i it is so old that no one is really ex- | pected to believe it. What happened was that the Tugwellian clique leaders were fired, ousted, canned. It was done rout advance warning while their bencfactor, Prof. Tugwell, was away. (He was in Florida on offl- | cial business, possibly inspecting sea shells on the beach What caused it was a mixture of { personal and fundamental animosities, {none of which seems to be as im- | portant as the contestants think it is Howe et al. points to a rather | The same situation may apply in the | Political seers undoubtedly will see N.R. A., where the position of general | behind it another New Deal swing to counsel was made vacant when Don- | the right, possibly even a step toward ald Richberg became executive direc- tor of the National Emergency Coun- cil. He is technically on the rolls as general counsel, but on leave of ab- sence. It is significant that npobody has been appointed in his place. ‘This means that when the disposi- tion of the N. R. A. itself has been finally worked out. the Justice Depart- ment will have its own legal staff to care for N. R. A. cases. The matter of investigating complaints of non- compliance will remain with the N. R. A. as long as that institution is in existence, but when a case of non- compliance warrants prosecution or consideration of whether court action is justified, the matter will be handled by a represe ive of the Justice De- partment—either the solicitor of the department to whom enforcement is intrusted or to lawyers chosen by the Attorney General's office and sta- tioned in the N. R. A. Critical Courts Factor. The reason for all this is that the courts have been increasingly’ critica of New Deal cases and it is recog- nized that mere trial of cases, with- out much support in evidence and precedent, is not going to enhance the reputation of the Roosevelt admin- istration. Furthermore, the Supreme Court is apparently going to decide questions on the basis of the Censti- tution and not on the theory of elas- d by those lawyers wi wish is father to the Hence the Justice Department will not go to court on arbitrary judg: ment of what it would like to accom- plish in rearranging the econcmic structure to conform to emergency policies, but on what it fecls the courts will sustain TUGWELL TO REMAIN. Frank to Be Offerd New Place in Administration. By the Associated Press Rexford G. Tugweli, close friend of Jerome Frank, ousted A. A. A. coun- sel, returned to Washington yester- day. and after a conference with Presi- dent Roosevelt, the word was passed that Tugwell would remain as Under- secretary of Agriculture. Authoritative sources also said Frank would be offered another position _with the Government. Whether he would accept remained to be determined, but friends thought he would. Tugwell was in Florida when he first heard of the shake-up which Tesulted in Frank's resignation and that of other A. A. A. lawyers and officials, Tugwell started for Wash- ington almost immniediately and went to the White House only a few hours after his return. Some of his friends felt before- hand that the parley might result in the resignation of the man blamed by the conservatives for many admin- Istration proposals they dislike. Tugwell was not told of the move- ment against Frank and his fol- lowers until the resignations actually had been requested. (Copyright. 1935.) N DEATH REPORT “JOKE” Person Who Spread False Rumors on Strong Sought. Col. Frank S. Clark, U. 8. A, today explained the erroneously purported death of George L. ‘Strong. 24-year- old son of Lieut. Col. George V. Strong, military representative at Geneva as “‘a practical joke perpe- trated by some unknown person.” Col. Clark is now conducting a search for the perpetrator of the deed. Today the colonel cabled Strong’s parents in Geneva in order to offset apy fear. Nagel Denies Romance. PALM SPRINGS, Calif., February 8 (#)—Romantic reports linking Conrad Nagel, screen actor. and Berry Jane Harris, Pittsburgh socialite. ~were termed “‘utterly ridiculous” Nagel. ) | fascism. There is a small grain of truth in that interpretation, but not more than a grain. The plain fact is that the A. A. A. chicken is all {left wing, ard there are no fascist | gizzards inside it anywhere. Left-Wing Tip Clipped. { A simpler interpretation would seem to be that the extreme left-wing tip has been clipped and that is all. The main practical effect will be to give the farm groups unrestrained control. Weakened will be the con- | flicting consumers’ protection restraint | and the college professor influence. (Tugwell has had nothing to do with the A. A. A. for eight months.) ‘V It has been denied, but the point which finally brought the break was a quarrel over prying into the books of processors. Tugwellian Attorney Frank was eager to do it. So was | Consumer Counsel Fred Howe. They | framed a very strong amendment to | be passed by Congress. | The Chester Davis clique did not | like the wording of the amendment, iand presumably did not care much for the idea, although a somewhat less stringent amendment is now promised by them. The dismissed Tugwellians also de- { manded closer supervision of market- ing agreements; full right to investi- gate profit and cost data; rigid con- | trol of dairies, canners, millers, etc. | These high-pressure demands | made Mr. Davis boil over last week. He went privately to the boss, Ag- | riculture Secretary Wallcce, who ! has tried to be fair to both sides. | Mr. Davis took with him all his accumulated grief and evidence of sharp-shooting from his adver- saries. He demanded what is com- monly known as a show-down and | got it. You may recall that, only a week | before, it had been rumored Mr. Davis would resign. And it turned out he got his adversaries before they could get him. One important effect of Mr. Wal- lace’'s wing clipping may never be- come known. It will be a tight clamping down of the lid on all un- official news. Messrs. Wallace and Davis, particularly Davis, have been very much annoyed lately about leaks. They wrongly suspected some of their adversaries. They plan now to let out only such news as they desire, and let it out only through the press publicity funnel—but they may be dis- appointed. Gem of Publicity. The New Dealers are becoming really slick in their methods. The official announcement of the reorgan- ization, for instance, was a publicity gem. It might well be used as a text book for all aspiring press agents. Not one word was said in it about firing any one or abolishing any de- partment. Frank’s name was not men- tioned, nor was Howe’s. The state- ment was confined to the “construc- tive” results of the reorganization, which concealed the whole story. The name of every new division chief was mentioned in the announce- ment, but a vacant space was left where Howe's name would ordinarily have been placed as head of con- | sumers’ counsel. (Copyright. 1935.) | Bill Calls Animals Factories. SALT LAKE CITY, February 8 (#). —Utah may soon be the home of sev- eral hundred thousand new “factories.” State Representative Joseph W. Jensen has introduced a bill designed to pre- | vent a double levy of the sale tax on farm products by classifying all goods as “manufacturing plants.” THE EVENING UNION INSURGENTS| ASSAILA.F.L HEAD Violation of Principles Supporting Injunction Plea Charged. in An atiack on William Green, prhl dent of the American Federation of | Labor, as supporting injunction pre- ) ceedings against one faction in the building trades fight, in contravention | of federation principles, is being circu- | lated through all federation units by | M. J. MsDonough, head of the group | against which the action is directed. | McDonough represents 12 interna- | tionals which claim to constitute the | Building Trades Department of the A.F.of L. On the other side are nine internationals recognized by the fed- eration as the Building Trades Depart- ment, under the presidency of James W. Williams. The latter seeks an in- junction against the former to re- strain any functions exercised and to gain possession of the effects of the department. The case comes up Mon- day before Justice Luhring in District | Supreme Court. In his letter McDonough says that Green “has obligated the American Federation of Labor to participate in the injunction proceedings.” He added: “It is a paradoxical situation that the American Federation of Labor must find itself in when only two years ago they advocated and had suc- cessfully passed the now famous anti- injunction act, which passage they had been advocating for over 50 years, and yet this method of temporary in- Junction which they have construc- tively attacked they are now taking advantage of by using the same method in a vindictive manner to slay their own affiliated and loyal organi- zations.” McDonough said this statement is being sent out “to acquaint your or-| ganization with this flagrant violation | of the great principles‘and construc- tive philosophies of the American Fed- | eration of Labor by those who are assuming dictatorship and care noth- ing for these great principles as long as their own selfish purposes and vin- dictive propensities can be obtained | for their own political and personal | aggrandizement.” SUBPOENAS ISSUED BY ARMS INQUIRY Two Stock Speculators Bid to| Testify Concerning D. C. *“Contact™” Tips. By the Assoclated Press. | Subpoenas for two stock market ! speculators and a move toward pos- sible perjury action against past wit- nesses emerged in quick succession yesterday from the Senate Munitions Committee, which has recessed until Monday. The committee issued the subpoenas to bring before it Ben Smith and Thomas Bragg, some of whose specu- lative activities have been heard about before on Capitol Hill | They will be questioned concernir reports that “Washington contacts” | tipped them to buy New York Ship- building Corp. stock before P. W. A._| money was turned into the naval con- struction program. | Shortly after the committee made known the subpoena issuances it also disclosed it had turned over to the United States district attorne Le Garnett, a record of last week's testi- mony for him to determine whether conflicting stories told about an al- | leged ship contract “fixer” involved possible perjury. In a verbal statement, Senator Van- denberg, Republican. of Michigan, | said all records bearing on testimony that a “fixer” had offered to secure naval contracts for Guif Industries of Pensacola, a shipbuilding firm, for a “consideration” of $250,000 had been turned over | Whipping Post Favored. | JEFFERSON CITY, Md, February 8 (/7). —A whipping pbst bill came back | to life yesterday in the Missouri House of Representatives. The House recon- sidered its action of Wednesday in striking out the whipping provision and perfected the measure. When the bill is called up for final passage the question will be clear-cut: Whether | circuit judges should be empowered to | order able-bodied men lashed for de- | serting their wives or children. GROSS INCOME, NET INCOME AND SURTAX NET INCOME. Three of thé terms used in the in- come tax law, namely, “gross in- come,” “net income” and “surtax net income,” should be noted particu- larly, inasmuch as they are vitally important to the whole subject of the income tax. Gross income includes in genemfl all income from any source whatever unless exempt from tax by law. The gross income of the usual business consists of the gross profits on sales, | plus any income from investments ! and incidental or outside operations or sources. The return must show the gross sales, purchases and cost of goods sold. To reflect income cor- rectly, inventories are necessary at the beginning and end of each tax- able year. A lawyer, doctor, architect, phy- sician, dentist, clergyman, author or other professional man must include in gross income all fees, salaries and compensation of any kind for pro- fessional services. Net income upon which the tax is assessed is gross income less the de- ductions allowed by law. Such de- ductions include business and profes- sional expenses, such as salaries, pen- sions and bonuses to employes, taxes, losses, interest paid, bad debts, de- preciation, depletion, contributions, etc. Failure to understand deductions against gross income and credits against net income has resulted in numerous errors on the part of tax- payers. The revenue act of 1934 provides for an earned income credit in addi- tion to the personal exemption and | credit for dependents, etc., for the purpose of computing the normal tax. Having arrived at the net income, the next step is to deduct the personal exemption and credit for dependents. The balance represents the “surtax net income.” The next step is to de- duct from such balance the earned income credit and other credits to which the taxpayer is entitled. The Temainder represents the amount of net income subject to the normal tax of 4 per cent. Any amount of “surtax net income” which is in excess of $4,000 is subject to the surtax. The surtax is to be computed in accord- today by farm animals that produce salable|ance with the rates provided for in the various so-called surtax brackets. ¢ STAR, WASHINGTON, D, €., ERIDAY, FEBRUARY 8, 1935. Texas Society Honors Jesse Jones Among tne distinguished guests who honored Jesse Jones, chairman of the R. F. C. at the Texas State Left to right, Wright Matthews, president of the society, shaking hands Society meeting and dance last night with Jones. while Senator Sheppard right, Mrs. Sheppard, Mrs. Matthews, is greeting Senator Connally. Mrs. Jones and Mrs. Connally. Mrs Salt Lak Robert Brown of Kalamazoo, Mich. also a passenger, were released. Victory Messenger and son Left Clarence Frechette of Kalamazoo, Mich.. as he signed confession of killing Brown. A week's search had been made for Brown —Copyright A. P. Wirephoto. Upper right: Miss Grace Cur- ran branded as “fabrication” con- fession of Frechette that he quar- reled over her and then killed Brown. She says she “never knew him.”—Copyright A. P. Wirephoto. Lower right: Robert Brown, the murdered man. Frechette ~was formerly employed by Brown as a truck driver. —A. P. Photo. CAPTURED SLAYER HAS NO REGRETS “Flying Bandit” Captured in Raymond. who were carried from City by Clarence Frechette in car which also carried body of Mrs. Messenger and J. M. Rivas, —Copyright, A. P. Wirephoto. drug stores and & restaurant in Den- ver for “expense money.” He brought three passengers from Salt Lake City, chatting with them and playlng the car radio. Even on the night of the siaying, Frechette told Capt. Blake, he went | to a movie and spent the night in California With Body in Trunk. By the Associated Press. NEVADA CITY, Calif., February 8—Clarence Frechette, who admit- tecly killed a man in Michigan and carried the body to California by mo- tor car, insisted today he was not sorry for what he had done as he awaited the arrival of authorities from the Eastern State. “I'd have done it again,” said the 25-year-oid “flying bandit,” as he told of the fight that led to the death of Robert Brown, 24, of Kalamazoo, “and if I hadn't, somebody else would have.” Frechette, who told Capt. Joseph Blake of the State highway patrol, Brown had boasted of intimacies with many women, including the accused slayer’'s “girl,” apparently suffered no nervousness at any time after the shooting. Attended Dance. He even went to a dance at Salt| Lake City, leaving the machine with | its cargo of death on the street nearby, He told of holding up twol Kalamazoo. Frechette's need for money led to his arrest. At Elko, Nevada, he sent a telegram to Brown's father, Roy Brown, in Kalamozoo, Mich., signing it “Robert” and asking him to for- ward $50. The father turned the message over to police, who notified California_authorities, When Frechette drove up to the California State line checking staticn ‘Wednesday midnight, an officer dis- covered Brown's body in the trunk. Companions Released. The fugitive and his unsuspecting companions were immediately placed under arrest, although it was soon ap- parent the passengers knew nothing of the crime. They were released last night, while Frechette was placed in the county jail here. Livingston County, Mich., authcri- ties telegraphed Sheriff Carl J. ‘Tobiassen they were preparing extra- dition papers and would send for Frechette at once. Editor’s Mother Dies. COLUMBIA, Mo, February 8 (#). —Mrs. Catherine Linn Threlkeld Moore, 87, mother of W. E. Moore, managing editor of the Baltimore Sun, died here last night. She was the widow of William P. Moore, for- mer Columbia mayor, < The women in the front row are, left to —Star Staff Photo. DEMOCRATS BEGIN - PATRONAGE PROBE Caucus Names Subcommit- tee to Make Complaint to Roosevelt. R.F.C.HEADCITES SUITBRINGSN.R.A. 2-YEAR RECOVERY CHANGES O FORE Outlook for Future Without|Cleveland Steel Merger Ac- Fear, Jones Informs tion Calls Attention to Texas Society. Plans to Revise Act. Jesse Jones, chairman of the Re-|Bv! construction Finance Corp., last night told a group of fellow members of the Texas State Society that conditio in the United States during the pe two years ha so greatly improved that the outlook for the future is one without fear, skepticism specula- tion because “the present adminis tion is one that will help those help themselves.” The society met in th Hotel to honor Mr. ar and Senator and Mrs and other Texans prom Roosevelt admir 400 members, including se Government officials, U function. Pays Tribute to Garners. who nson Arka £ leader. predicted (i Paying tribute to the Vice Presi- dent and Mrs. Garne the Lone Star Sta a great number of other of public life. Of his owr said fter two vears people of the United ¢ ing forward without f of the future. 1In commerce and indu interested in not can get and distr good it will do can get it back. Improvement Noted. “With the new power given my organizati look forward to a struction of the financial - independe hose who help them ybser t provement in cor > of this countr "' REBELS OF STEEL UNION TO APPEAL ang Will Take Woes to Green, A F. of L. Head, He c level heads. ; By the Associated Press. | ing to size up the patronage and complain President Roosevelt about the way jobs are given out . This was decided at a caucus lat yesterday House Democrats who are dissatisfied with the situatio: Representative McFarlane of Texa | sponsored t ment of the said it would get mo similar body last year, even reported. Under the resolutio | it is to make a partial report within | two weeks and a full report of “such information and findings as they may have secured” as soon as possible. Aimed at Hopkins, Ickes. One House member said the chief| criticism was directed at employment | policies in the departments headed | by Relief Administrator Hopkins and Secretary Ickes James A. Moffett’s Federal Housing Administration also drew some fire | and a bit more was directed at the R. F. C. The difficulty, it was said was based on the appointment of Republicans in these departments and | a failure to consult with members of | Congress about appointments within their districts.” “I'd like to get aiong and have some sort of a fair settiement of the pat: ronage situation in some way.” Mc- Farlane said. “I'm not so interested personally. never have been. I'm doing this in the interests of the Democratic party. “I think the committee will do something. I think that we have made progress and that we can clear up the situation with what was done | here today. Our differences are no with the President, but with minor employes—little pencil pushers—up and down the line.” Cites Republicans in Jobs. tion to of resolution fo! ting gro results th which r 1’ Representative Sabath. Democrat, of Illinois, joined in to say the prob- lem was how to remedy the discon- tent among members over Republi- cans holding jobs Democrats felt they | should have. He said the President’s | attention would be called to it again, although “that really isn't necessary.” McFarlane added the complaint that i | while Democrats were receiving hun- | | dreds of letters wanting to know why | | they were not getting jobs—and with | constituents constantly referring to| all these alphabetical agencies”— | bout all the majority members of | | Congress were getting from adminis- | tration agencies were “we will give | you consideration” form letters. | —_— {LIQUOR LAW CHARGE ERRONEOUSLY STATED Chastleton Market Proprietor Ac- cused of Permitting Minor to Sell Alcoholic Products. | In a report of a Police Court hear- | ing of charges of District liquor regu- | 1ation violations against Frederick J. Neam. proprietor of the Chastleton Market, 1700 block of Seventeenth | stree., The Star Wednesday erron- eously :tated ‘hat Neam was charged with selling liquor to & minor. The charge. one of several. was that Neam allowed a minor to sell liquor. Neam is scheduled to appear before the Alcohol Beverage Control Board Monday to show cause why his liquor license should not be revoked. The | | Police Court case has been set down | for assignment for a jury trial. | PUBLIC WORKS PAY IN NEW CURRENCY PROPOSAL BEATEN (Continued From First Page.) shall be taken of the facilities of pri- vate enterprise.” A clause previously stricken out was restored. It gives President Roosevelt authority to acquire prop- erty by purchase or the right of eminent domain. Senator Glass, Democrat, of Virginia, chairman of the committee, said this was re-in- serted at the request of Senator Nor- beck, Republican, of South Dakota, to permit the Government to acquire land for its Western shelter belt of trees, Answering a letter from the Na- tional Civil Service Reform League, President Roosevelt recorded himself in favor of an amendment providing that the civil service merit system be | applied in the work-rlief drive. Senator Adams, Democrat, of Colo- rado, leader of a movement to cyt the bill down to a $2.880,000,000 dole, said he probably would move for a reconsideration of it. It was defeated Wednesday by a 10-to-10 vote. L] the depress " | “wright Matthe 5 $1,500,000,000 MORE ' 'FOR H.0.L. C. SOUGHT . Bill Also Seeks Insurance on In- Fe« w «'x dustrial Loans Not Over $50.000. f gall, DOLE ADMINISTRATION PROTESTED IN ENGLAND within the _ FLEISCHMANN SUED ON SLANDER COUNT Mrs. Rhoda Doubleday Says Yeast Manufacturer Is Guilty of Blackmail. By the Associated NEW.YORK., February 8 —D: of $100,000 are sought f. ) Fleischmann by Mrs. Rhoda T: Doubleday. who charges t lionaire yeast’ manufacturer game hunter slandered her Mrs. Doubleday. tk ner wife of Fleix Doubleday publis filed suit in the State Supreme Co: In her suit Mr: that Fleischmann * and maliciou: made others believe that she “was unchaste and had teen guilty of the crime of blackmail The incident is said to have taken place on a golf course at Sa Bar- bara January 1933, y a S suit for against Harold ging breach of promise. This suit was settled last May, No lady ever brings breach of promise.” quotes Fleischmann as Committ leg a YESTERDAY. LETTER WRITER ELVUSIVE‘ Police Try Vainly to Trap Extor- Senate. Co jered farm credit bill all six cc ications com: Appropriations its force ef provide “prevailing” Commit insur« mendment to s on relief tionist Threatening Man. S1. OAKLAND, Calif., February 8 (#).— | Five letters th: T death to Henry Joost, 81, wealthy retired real estate man were studied by police to- day for clues in their search for the “sangre diablo” who wrote them A trap for the extor who de- manded $10,000 from Joost on pen- alty of death ended abortively when. after a long vigil at a rendezvous set in the last letter seat, Policeman James T. Berwick was inadvertently | wounded by one of his 11 companions. Death was threatened to Joost's “wife” as well as to him. Joost has no wife. w ns Committee subpoenaed traders and submitted e to District of Cc Committee finished for Interstate erce Com proved | ephone Comm t on of Am & Telegraph Co. CThe Euening Star Offers Its Readers The American Government Today BY FREDERIC J. HASKIN —a new book which explains the permanent departments of the Federal Government and the Alphabet Bureaus of the New Deal. Authoritative—entertaining—stimu- lating. Every American should read and own this book. On sale at the Business Office of The Star, or by mail, postage prepaid. Price $1. ORDER FORM.