Evening Star Newspaper, February 15, 1935, Page 2

A—2 = N.R. A PROBE SENT 10 FINANGE GROUP Senate Action Is Taken Without Record Vote. King Asks Probe. By the Associated Press. The Senate today sent the Nye-Mc- Carran resolution for an investigation of N. R. A. to the Fnance Committee, despite the objection of its authors, who wanted the inquiry to be made by another committee. The action was taken without a yecord vote on motion of Chairman Harrison of the Finance Committee, who insisted that his committee should handle the inquiry as it would con- | gider the shortly-expected administra- tion bill to extend N. R. A. for two years. A few minutes earlier, Senator King, Democrat, of Utah had re- ported from the Senate Judiciary Committee an independent resolution proposing an inquiry into whether the | national recovery act had “contrib- | uted to monopolies.” It has the sup- port of Senator Borah, Republican, of Idaho. King had the resolution Teferred to the Senate Audit Committee to approve an appropriation covering the inquiry. Senators Nve, Republican, of North | Dakota and McCarran, Democrat, of | Nevada, authors of the resolution re- | ferred to the Finance Committee, ! asked that the inquiry should be made by the Commerce Committee | headed by Senator Copeland, Demo- crat, of New York, who has not al- ways supported New Deal policies. Harrison objected. He sald his committee would inquire into the operation of N. R. A M’DONALD HAUNTED BY PEPPER GAMBLE Nationalist Government Averts Confidence Vote on Dole to Face New Problem. By the Associated Press LONDON, February 15.—Premier Ramsay MacDonald’s nationalist gov- ernment, safely past the Laborite threat of a vote of nonconfidence, faced a new problem today in the dis- astrous pepper market speculations. The house rejected the motion of censure for the government's handling | of the dole problem by a thumping | majority—374 to 68 The pepper gamble, however, was brought up in the debate and seized upon by those who have been clamor- ing for an investigation of the identity of the prime movers in the fll-fated speculation. Maj. Harry Louis Nathan, Liberal | member from Bethnal Green, called the Commons’ attention to “ugly ru- mors” and “grave suspicions.” “Do not let the government lead the House to believe,” he said, “that it was fear of a general election which | affected the city stock exchange. “It was rumors and suspicions of what was taking place, what it has led up to and who is involved in these spec- ulations.” KANSAS TOWN STIRRED BY “MURDER” OF DOG| Prospective Jurors Biased in Fa-| vor of Animal in Case of Ac- cused Relief Worker. By the Assoclated Press. COLUMBUS, Kans., February 15.— | This city’s dog “murder” case may go | to District Court. Otis Stevens, a relief worker, is ! What’s What Behind News In Capital Macon Ghost to Fade. Higher Taxes Hinted by Murmuts. of the three airships each has had | and Italy lost her one. Apparently no one has any good luck with dirig- | ibles except Germany and her Herr Eckener. This official tune was merely a polite cover up for an almost unani= mous conviction inside the Govern- ment that dirigibles are too expensive as war playthings. BY PAUL MALLON. HE official “bad luck” song was | sung again when the Macon ! crashed. It is the same tune | heard when the United States, | Britian and France lost each Sea admirals have always sneered at them as fair-weather ships. Authorities will tell you off-the-record today that mo more will be built. But, after all the current clamor dies down, you will see money appropriated for an- other dirigible half the size of the Macon and the Akron. The Navy General Board has recommended it. There is a small but strong lighter- than-air clique in the Navy which now has nothing to do. Salesmen for ships have been able to exert strong pres- sure in Washington at times in the | past. They cannot do anything at this session of Congress because of the state of general opinion, but they will certainly try at the next one. e ] The real excuse offered inside the Navy for both the Macon and Akron THE EVENING STAR, WASHINGTON, D. C..\FRIDAY. FEBRUARY 15, 1935. As Ethippia Spurns Italian Demands for Apology {1t carry taxes to pay it. disasters is that the ships were too long (700 feet). ’ Light structures cannot stand such | length, they say, in terrific cross-wind | pressures which can break them as you would a match. s excuse has made no great im- | pression in view of the fact that| earlier shorter ships have broken also. | There has long been an unspoken | tradition in the Navy that the Ger- | mans are the only ones who can build and fly dirigibles. You may have | noticed that the Germans are design- | ing their latest one strictly for com- | mercial use. This is probably the | future of lighter-than-air craft. | They will be the freight trains of the | air. ETHIOPIAN RULER DENOUNGES TALY Declares Mobilization Is Not Justified by Any Military Measure by His Country. Digs Bonus Grave. President Roosevelt is plodding | along in his own unostentatious way | with the digging of tax grave for the | bonus. | ‘That was what inspired the latest shovelful of words thrown out by the | White House on the Government sal- | aries legislation. In approving that legislation, Mr. Roosevelt said ways would have to be found to pay the $16,000,000 extra budgetary expense involved in it “and any other new appropriations” Every one knew he meant the bonus. The fact is, several ertra budget- ary appropriations are in the Con= gressional fire, including $100.000,~ 000 for social security and $60,000,~ 000 for seed loans. These three will throw the regular budget into the red by $176,000,000. This would not cause much fretting in a year when nearly $5,000,000,000 will be spent outside the budget, ex- | cept that the bonus is coming nlonz." The President is going to insist that By the Associated Press. ROME, February 15.— Emperor Haile Selassie declared today in a message to the press of the world that Italian mobilization “is not justi- fled by any military measure on the part of Ethiopia.” The message from the Ethiopian | ruler was made public here through his charge d'affaires, Negadras Yesus. who said he also was communicating it to the Italian foreign office. | “The news of the mobilization of two Italian divisions.,” the monarch said, “is not of a kind to maintain an | atmosphere of confidence necessary to | the satisfactory conduct of negotia- tions now underway, preliminary to the establishment of a commission of conciliation and arbitration for the solution of Italo-Ethiopian differences. Ethiopia Never Aggressive. “The security of Italian Somali- land has not been menaced by Ethiopia at any time.” Haile Selassie repeated the con- sistently contended stand that his country never had taken an aggres- @i charged with the “murder” of Duke, en 8-year-old Gordon setter and the | city's “dog about town,” Tecnrically the charge is destruction of a domes- | tic animal. were biased in fa™or of the dog, a six- | member jury could not be obtained | when the case was called yesterday in | Justice Court. Learning of this, County Attorney C. E. Shouse said he woull file the | case in District Court so that an un- prejudiced jury panel could be ob- | tained Shouse said Stevens had admitted killin® the dog because it annoyed his children. He is at liberty under | & $100 bond. MOSCOW SUBWAY READY Luxurious Passages With Marble Walls to Open. MOSCOW, February 15 (#).—Mos- eow's luxurious subways, the walls of which are faced with marble and | black mirror glass, will be opened to | the public at the end of this month, it | was announced today. All stations are equipped with sur- face vestibules, each with a distinctive architectural design. Congress in Brief By the Assoclated Press. TODAY. Senate. ~ Debates $4,880.000,000 work relief i1l Judiciary Subcommittee studies 30- hour week. Finance Committee considers social security. Munitions Committee examines A. P. Homer, marine architect. House. Considers private bills. ‘Ways and Means Committee and Labor Subcommittee work on social security. Rules Committee considers resolu- tion to investigate Home Owners' Loan Corp. Appropriations Committee studies Agriculture and interior supply bills. YESTERDAY. Senate. Received resolution for investiga- tion of N. R. A. Completed congressional action on bill extending airmail contracts. Debated relief bill. Munitions Committee heard story ©f Morro Castle building. House. Passed bill Federal participation Pacific International San Diego. Brig. Gen. Willlam Mitchell, re- tired, defended airships before Patents Committee. 1 Navy asked Naval Committee to in- crease officer strength from 4,499 to 6,531, Ways and Means Committee tenta- tively changed social security bill to give States greater control over own| old-age pensions. authorizing _ $350,000 in California Exposition at Tax Talk Gets Hotter. The tax talk has been rather warm on the inside lately. It started sev- eral weeks ago. Authoritative New | Dealers began to wag their heads | Because prospective jurors said they | confidentially in the presence of out- | siders, and murmur that they were | going to have to increase taxes this year. Not a word has been said offi- I cially, but inspired stories have been | broadcast that a genera! bill increas- | ing taxes will be introduced in March. | Some skeptics have suspected this | was part of the bonus strategy and have remained unconvinced. They may be wrong. It is certain that a small resolu- tion will be passed renewing some of the taxes which expire this year. The general assumption has been that it would not include any increases. This is still the general, but decidedly | uncertain, assumption. Liberal Senators are prying into the A. A. A shake-up to see for them- selves what happened. There has been some cloak room talk about a senatorial investigation, especially to ascertain if any distributors were overjoyed at the change. Colorado’s Senator Costigan is sup- posed to have written a letter to the White House expressing his per- turbation. What probadbly will happen is that the New Deal will make some pay restitution to those who were fired, or else find jobs for them elsewhere in the Governmen There will be no Senate investig: tion unles the A. A. A. purge is carried further. It won’t be. ‘The cruelest political in-sidelight of many a year is that great number of aged persons, poor and unemployed, have been misled into believing they are going to be supported in style by the Government. It shows up in me; mail of Congressmen. FPeople who cannot really afford the stamps are writing in to ask whom they should see about getting their $200 a month. They need it right away. $30 Seen as Limit. The maximum payment which now seems to be possible is $30 a month. It wiil go at Arst to only the few aged now on relief rolls. Not a cent will go to any one until the States enact co- operating legislation. This will require at least a year, and perhaps three. ‘When you read the figures about 55 per cent capacity steel production, re- member that there never has been 100 per cent production. The pemk was 89 per cent in 1929. Therefore, 55 per cent is actually about 66 per cent of 1929, which is very good, while it lasts. Conservative Commerce Secretary Roper had on his desk the other day a copy of “The Red Network,” the book which lists Mrs. Roosevelt among the Nation's subversive elements. (Oopyright. 1838.) | sive position against Italy and that| none of his trocps had been con-| centrated on the border. All Ethi-| opians, he said, had strictly obeyed | orders to avoid all incidents in the | frontier zones and remain quiet. Italian sources said, however, that more than 150 armed Ethiopians have occupied the village of Silar, near the Ualual territory. These sources| said the occupation took place Jan- uary 29, and was believed to have been a part of the Afdub affair, which brought about strained relations be- tween the nations. The place was reported to be held now by the Ethi- opians. There is no Italian garrison in the village. Mussolini Is Silent. Premier Mussolini maintained silence concerning the note and his future policy. He conferred with members of the Fascist Grand Council. It was indicated that the Ethiopian | question would come up in another meeting of Italy’s highest legisiative body late in the day. In divulging the contents of the note | the Ethiopian legation pursued the same policy which aroused the ire of Italian officials three days ago. Meanwhile there appeared to have been no change in plans to dispatch the first contingents of the African expeditionary force from Sicily to Eritrea and Italian Somaliland to- morrow. (Paris dispatches said the French government also was planning to re- inforce her troops in French Somali- land, where a colonial administrator and more than 80 French Somalis were slain in a border clash on January 18.) In any event, military authorities said, no hostilities were likely before May 1, because the rainy season begins in about 10 days and continues for two months. SERUM DEATH OF CHILD BRINGS INVESTIGATION Four Others Under Observation in San Francisco—Poison Shown in Autopsy. By the Assoclated Press. SAN FRANCISCO, February 15.— Dr. J. C. Geiger, city health officer, today led an investigation into the “mistake” death of 4-year-old Natalie Rojnavsky, who died after an admf- istration of diphtheria serum. : Four other youngsters who showed the same symptoms after treatment in Children's Hospital were under ob- servation, but Dr. Geiger thought they would recover. Twenty children were given the antitoxin a week ago. Dr. Sherman Leland, autopsy sur- geon, said the youngster died of poi- soning and in the absence of other infection the serum was to be blamed. Trains Collide, One Killed. BRANTFORD, Ontario, February 15 ().—One man was killed early to- day in a head-on collision between two Canadian National Railway trains at Lynden, 10 miles from here. The vic- tim was not immediately identified. Sy D‘~ i | i i TESYPTiAN ) et ! i INTERSTATE 0 No. 1—Emperor Haile Selassie, ruler of Ethiopia, who has rejected demands of the Italian War Council as a result of the recent clash in which Abyssinian tribesmen are charged with the killing of five native Somaliland troops. No. 2—George C. Hanson, one of diplomatic corps, shown in Washington yesterday ‘The Emperor is reported massing troops on his frontier the foremost trouble-shooters of the He is preparing to leave for Addis Ababa, Ethiopia, where he has been assigned as charge d'affaires and consul general. No. 3—Wearing his traditional lion's-mane headdress, this Ethiopian tribal leader (center, bearing shield) is shown flanked by desert riflemen at ceremonies marking coronation of Haile Selassie. bands clashing with Italian troops. He is typical of the wild No. 4—Chart illustrating the section affected by the crisls. . No. 5—A typical Ethiopian soldier, bare-footed and poorly equipped. Contrast him with the Italian troops shown in No. 6. among the best equipped in the world, and sometimes have no ammunition The Italians are while the Ethiopians are disorganized for their old-fashioned guns. The Ethiopians, however, count on their fatalistic heroism and for years have believed they could defeat any European army. —A. P. and Wide World Photos. Gen. Wood, New Relief Advise Worked Tea Years on Canal ST 1 Sears, Roebuck Head W est Pointer With Long Army Service. Silent on Job to PropnseI | Allocation of $4,000,- | 000,000 Fund. | By the Associated Press. A man who worked 10 years on | Uncle Sam’s biggest single building project—the Panama Canal—is going back into Government service to give business advice on how to spend the proposed $4,000,000,000 work relief | fund. | He is Gen. Robert E. Wood, now | president of Sears, Roebuck & Co., but en Army man from his gradua- | tion at West Point in 1800 through [the World War. He was in Panama | | from 1905 to 1915. Secretary of Commerce Roper an- nounced Wood's appointment after they had talked with President Roosevelt = yesterday at the White House. Wood has been & member of Roper's Business Advisory Committee. | Committee to Be Named. ‘The new job won't take all of Wood’s time. He is to be assisted by a committee of business men, some of whom are to be chosen from the Advisory Council Committees dealing with building and others from outside the council. One member of the committee—not Wood—is to sit con- stantly with the board that will ad-| minister the fund. He will act as a liaison man between the works board and the Advisory Committee. Wood, a solidly-built man whose complexion shows he has spent s | good deal of his life outdoors, ap-| peared a bit bewildered by the rush reporters gave him after his appoint- ment was announced. No, he hadn't anything to say about what type of work relief he| favored. He had been in Washing- ton less than 48 hours, and he hadn't known “a thing” about the appoint- ment beforehand. And, by the way, | where did any one get that idea he was going to head the N. R. A.? He could “most emphatically” deny that. Advice Not Obligatory. The most Wood would say about his new job was that the actual ad- ministrative agency would be under no obligation to accept the Business Committee’s advice. Roper sald formation of the com- mittee was in line with the admin- istration’s general policy of asking business’ advice on governmental mat- ters of vital interest to business. The President approved the idea of thef committee when first advanced by Roper several weeks ago, he added. The President, Roper said, had not | completed all his plans for admin- istering the fund. r, ROBERT E. GUARDSMAN KILLED AIDING MARTIAL LAW Is WOOD. Fellow Louisiana Trooper Blamed, but Inquiry Court Refuses Name. By the Assoclated Press. BATON ROUGE, la, February 15.—Blood was spilled once again in politically troubled Louisiana when Corpl. Hugh J. Belanger, 24, of Houma, La., one of the National Guardsmen enforcing martial law here, was fatally wounded on the State House grounds late yesterdey. A military court of inquiry, which succeeded the parish coroner under the martial law, held that the killing was accidental, but declined to reveal the name of the person responsible for it. Maj. W. D. Shaffer, assistant ad- jutant general, said in New Orleans that Belanger was killed in the Guard headquarters on the State House grounds when an automatic rifle in the hands of another militiaman be- came jammed and was discharged. He said Belanger was shot in the abdomen. “As it was an accident,” he said, “I don't think it would do any good to advertise the name of the man in whose hands the gun went off.” Belanger's body, under military escort, was taken to Houma late last night. A military funeral will be held. e Two Silver Weddings. EVERETT, Wash. (#)—Mr. and Mrs. Nicholas Plambeck are celebrat- ing their 25th wedding anniversary— the second such anniversary for both of them, as each had been married more than 25 years previously to other ;pm;sea. Plambeck is 79 and his wife . L CONTROLOF ARMS - PACTHASTENED S HELDDENANDED Producers Seek Agreement Wilson Warns Powers After to Prevent Congress Anglo-Italian Attacks Taking Steps. on Plan of U. S. By the Assoclated Press. GENEVA February Wilson, United States By the Associated Press DALLAS, Tex., February 15.—An interstate oil production compact which Gov. E. W. Marland of Okla- homa says must be concluded quickly ~ to keep Congress from “taking it out of the world want something done of our hands,” was under considera- |and done quickly to control the manu- | tion here today at a conference of | facture and traffic in war materials | oil State representatives. | Replying to attacks made on the i The meeting, the third called by American draft particularly by Eng- Gov. Marland for ccnsumation of an land and Italy, Wilson reminded the | agreement to regulate the industry, delegates the Americans merely fash- brought delegations from Kansas, |ioned their proposals along lines Texas, Oklahoma, New Mexico and likely to command general support Arkansas, with California and Illi- | (The American plan mp!ates nois also expected to be represented. | supervision over both production and | california, New Mexico and Okla- commerce.) | homa were committed by their Legis-| “Our plan." he said, “is founded latures to the principle of a compact On the conviction of peopie every- along the lines suggested by Gov. Where that something must be done Marland for the setting of State pro- and in a relatively short time.” duction quotas with the assistance of | Canada Backs Project the Federal Government In determin-| ., . yigleheartedly backed the 15.—Hugh delegate to warned the powers today the people t the World Disarmament Conference, | | ing market needs and Federal aid in | | enforcement. A possible barrier to a compact was | seen in the demand of Gov. James V. Allred of Texas that representation of | any control board be on the basis of potential production. Such a system would give Texas a great preponder- | ance of votes in determining adminis- trative policies. American project, especially tihe fea- ture for international supervision of arms manufacture. The conference was adjourned until Tuesday when it will hear the first reading of the American draft. Mcan- while, delegations will prepare amcud- ments for submission Russia will sign no convention for the control of manufacture and trade Gov. Allred, reccgnized leader of op- | position to Federal control, said he would present a proposal providing for prevention of waste and also for “protection of the consumer.” of arms to which Japan does adhere, the Soviet delegate said. Neighbors Must Approve. The projected convention must be SR approved by all the principal powers, the Soviet representative said. “but GRAIN MARKET BAN | v | Switzerland characterized the Amer- ican plan as “an important contriou- tion to the cause of peace” and in- | sisted the convention must deal with the manufacture as well as the traffic in arms if it is to receive Swiss support. Constitutionality of Futures Act to Be Tested Through Courts, Says Attorney. the convention restricted only to the traffic in war materials. By the Assoclated Press. AT CHICAGO, February 15.—Arthur W. | LACK OF CASH HELPS Cutten, giant of the grain markets, today promised a judiciary appeal from the Federal order barring him from activity on American grain markets. In behalf of Cutten, his attorney, | = Onville J. Taylor, issued & statemeni| ¥rench Legionnaire Totals denouncing the decree of the Grain About $2. Futures Commission and asserting the | constitutionality of the grains futures | By the Associated Press. act would be tested through the courts,| TOUL, France, February 15— even if a Supreme Court appeal is | Financial reasons, as well as & thirst necessary. | for adventure, Lord Edward Montagu Effective March 1, the commission | explained today, inspired his de- barred Cutten, the man who made a | termination to enlist in the French $1,500,000 “killing” in corn in 1924 | Foreign Legion. and controlled $7.000,000 worth or} On his arrival here in a taxicab, wheat in 1931, from American ex- | Lord Edward, who once changed his changes. It left him the llurmnvl‘mlnd about enrolling in the famous of moving his activities to the Winni- | military force, divulged his personal peg Exchange or of paying a quarter | fortune amounted to 33 francs (about of a cent commission to brokers on |$2) plus military expense money. each bushel traded, double the amount | Lord Edward is now awaiting he had paid as a member of the board. | physical examination. If accepted, Cutten, however, remained silent on | he will probably start for Marseille his business plans. | next week. The Euening Star Offers Its Readers This Worth-While BOOK It explains the permanent departments of the Federal Government and the Alphabet Bureaus of the New Deal. Every American should read it. Order today. et e | ] | | | | . = THE AMERICAN | GOVERNMENT | TO-DAY Frederic J. Haskin Price §1 at The Evening Star Business Office, or by mail, postpaid e e e not | England and Italy desire to have | LORD EDWARD ENLIST Personal Fortune of Prospective WLEY ISINLLDE INPRONTONLT { Macon Officer Slated for Grade of Commander With 64 Others. While a naval court of inquiry to- | €ay was investigating the loss of the airship U. 8. S. Macon, the Navy Dé- partment informed its erstwhile com- manding officer, Lieut. Comdr. Herbert V. Wiley, that he was chosen for ad- | vancement to the rank of com- mander. President Roosevelt today indorsed recommendations made by the Line Selection Board, of which Rear Ad- miral Thomas C. Hart, commander of Cruiser Division 6, Scouting Force, was president, whereby 65 lieutenant commanders are picked for the rank of commander. These names will be forwarded shortly by the President to the Senate for confirmation. Secre- ytary Swanson has already approved them. Pennoyer Also on List. Included among the prospective commanders is Lieut. Comdr. Ralph G. Pennoyer, who was on duty until recertly in the judge advocate gen- eral’s office of the Navy and lived at McLean, Va. He served as judge ad- vocate in the inquiry into the Akron disaster. Another former Washingtonian who was Naval Communi- | cations ment who is i slated need is Lieut. Cemdr. Roswe! Rece he re- nand of a destroyer new cruiser New at and is going to Orleans as navigato! ith official sses or Washington those in this eut. Comdrs. William H. Bethesda, Md.; Warner P. 1! Leon B. Scott, Kens- E. Chandler, er, this city; Alexander ; For | Prancis S. Low, this | Royal, Shelley Quynn | Christie, Ann Others Due for Promotion. The othef proi Herbert J. Ra James E. Boak Francis K. O'Brien. Nev b, Marion Y. Cohen, Beimar, N. J.: Rot ert W. Ca San F Karl R San Diego Robert Robert P. Luker. Stau O. Kess Indianap H. Brown, jr., Canton. Pa Stecher, Dodge. N Norfolk, Va.. 1 San Diego. Calif. Arthur C. Davis, Lincoln D. Struble, Portland Oreg icks, Dadeville, Ala.; Ben . Jefferson. Ohio: Louis Allerton James M Shoemaker, San Diego, Calif.; Gerard H. Wood, New Y Glover, Ric motiol | | Il ; Oliver Ind.: John Lewis J. Harry J. Reuse. e D. McCormick Nebr.; urne t E. Paddock, » S. Pop- Samuel R. e, Shelbyville, Ky. Charlev Mich.; ham, Charleston, S. C. Shumaker, Indiana, Pa.; Otto Nimitz, | Kerrville, Tex: Thomas G. Peyton, | San Diego, Calif.: Samuel P. Jenkins, | San Diego, Calif, and Cornelius W. | Flynn, Somerv N. J. Willlam Granat, San Fran 0, | Calit.: Armit C. Thomes, Scranten Pa.; Homer W. Graf, Des Moines, Iowa: Fri | cennes T lette, Mich.; Frede: Newcastle, Me. | Lubbock, Tex. Concordia, Kans HC € Eagle Grove, Iowa; James E. Maher, Scranton, Pa.; Allan E. Smith, Detroit, Wood, Birmingham, resch, Lafayette, iner, Reading, Pa.; | Cliffor i Norfolk, Va.; James M. Lewis, Da Tex.; John J. Mahoney. Hoosick M. Mullinni U. S. PAYS REWARD | Detective G:w SiOO’for Killing Mail Bandit. NEW YORK. February 15 () —De- tective Francis O'Neil of the New York police department received a reward of $500 today from the United States { Government for the capture and kill- ing of Herbert Meyers, who was sought by the Government for a series of mail robberies. and also was wanted in Bal- timore for murder. O'Neil shot Meyers on Tenth avenue July 19, 1934, when the fugitive lunged | at him with a knife while resisting ar- rest. Following a police department | custom. O'Neil donated $50 of the re- ward to the police pension fund and $75 to police relief e Mich.; Legh! la.; Harvey Mancheukuan Plot Foiled. HARBIN, Manchoukuo. February 15 ). —Manchoukuan police today ar- rested four Soviet employes of the Chinese Eastern Railway in suspicion of a plot to dynamite the vital railway bridge at Tao Lai-Hao, south of Har- bin. They reported that the plot was frustrated. Your Income Tax Capital Gains and Losses. An entirely new treatment of cap- ital gains and losses is provided for by section 117 of the revenue act of 1934. Such new treatment supersedes or replaces the 12'; per cent capital gain and loss provisions contained in section 101. as well as the limitation on the deduction for losses from the sale or exchange of stocks and bonds held for less than two years, as pro- vided for by section 23 (r). (s) and (t) of the revenue act of 1932. Sec- tion 117 deals with the manner or method of taking into account in computing net income gains and losses from the sale or exchange of capital assets as computed and rec- ognized under sections 111, 112 and 113. Section 117 (a) provides that in the case of a taxpayer other than a cor- poration only the following per cent- ages of the gain or loss recognized upon the sale or exchange of a cap- ital asset shall be taken into account in computing net income, 100 per cent if the capital asset has been held for not more than one year, 80 per cent if the capital asset has been held for more than one year but not for more than two years, 60 per cent if the capital asset has been held for more than two years but not for more than five years, 40 per cent if the capital asset has been held for more than five years but not for more than 10 years, 30 per cent if the cap- ital asset has been held for more than 10 years. (Continued Tomorrow.)