Evening Star Newspaper, February 21, 1935, Page 2

PROSPECT SLIGHT Veto Weapon if Necessary Against Dollar Fluctuation Influences. BY DAVID LAWRENCE. What do the gold clause decisions mean in terms of possible inflation? This question has been raised in view of the satisfaction expressed this week by the inflationist group in Con- gress, who feel that the Supreme Court has given a broad license to Congress to prescribe hereafter any kind of currency the legislators happen to authorize. There can be no doubt that Con- gress under the Constitution has the right to coin money and regulate its value, and this was clear long before the Supreme Court rendered its later decisions. But the question now is hardly whether Congress has the right to repudiate its contracts, but whethes the administration is encouraged to keep on breaking faith with holders of currency and bonds by tinkering with the value of currency. Persons who make contracts are naturally hesitant to take chances with long- term commitments of any kind if the standard of value is to fluctuate. Stable Dollar Pledge. ‘The administration started out with the .pledge that it would establish a dollar of such stability that any debts contracted now would be paid back in purchasing power in the future of equal amount. This is the very thing the Supreme Court pointed out— namely, that devaluation hardly pro- duces a loss unless there is a dimin- ished purchasing power when the debt or the interest comes to be paid. Inflation of the currency means a distinct loss in purchasing power for sll persons with fixed incomes. It means hardship especially for persons who cannot get increases in wages as quickly as prices rise. The administration is emphatic in its promise that no inflation is in- tended and that it will resist infla- tionists in Congress who wish to issue Pprinting press money. But on Capitol Hill is a group of men who think that the chief trouble with our economic picture is the lack of volume of money in circulation. Marriner Eccles, governor of the Federal Reserve Board, is & champion of the same doctrine. Under the terms of the proposed banking law, the issuance of currency by the Central Reserve System would be based on the idea that anything from Teal estate to marble can be con- verted into money by the simple process of pledging it as collateral at a Reserve bank. Naturally it is argued that the Federal Government is not going to allow ali such assets to be redis- counted and that it will endeavor to maintain a sound currency. But in- flation is of two kinds—currency is- suance and credit expansion. Faith Impairment Risk. By borrowing constantly to pay deficits and by increasing the public debt to unprecendented proportions, the Government risks an impairment of public faith in the value of a dollar, While the Supreme Court condemns as unmoral and unconstitutional the breaking of a contract between the Government and its citizens, the ques- tion arises whether the same Con- gress which broke one contract will worry very much about any other. Repudiation of the public debt by re- fusing to redeem it in full would be unconstitutional, of course, but a citizen cannot sue his Government for his loss. So Congress could con- tinue to repudiate any promise it made either on currency or on Gov- ernment bonds and there would be no way for the citizen to be sure he would get back the value of his holdings. This cannot but affect the attitude of some citizens toward the forth- coming issue of “baby” bonds. Will the Government keep its word when ! the “baby” bonds are up for redemp- tion? These are queries which never would have been asked but for the record pointed out by the Supreme Court in its devastating charges of broken faith directed against the Congress which refused to honor pay- ment in gold, or its equivalent, though Liberty bond contracts called spe- cifically for such payment. Inflation of the currency kind, which brings printing press money, is not anticipated because of the President’s influence with Congress, where the inflationists, even though stimulated by the reaffirmation of their right to coin money and regulate its value, will hardly be able to override a presi- dential veto if by chance a majority— something highly doubtful—were to be marshaled for inflationist measures. Inflation of Credit. Inflation of the credit kind is going on today. The Federal Government has refused to set a limit to its bor- rowings. And the Supreme Court has said in effect that Government | securities are worth whatever the ad- ministration and the Congress in power happen to say they are worth in terms of gold. The public psychology will say, on the other hand, what the dollar is worth in terms of purchasing power. If public confidence in the ability of the administration to weather the financial and currency crises of the depression should be maintained, then there will be no wild soaring of prices. If, however, Congress shows itself willing to repudiate solemn obligations and destroy values, the public will sooner or later begin to wonder whether it is better to hold cash or to put cash into commodities and durable articles that would be available after & currency crisis has cleared. This flight from cash to “things” has occurred in other countries when inflation developed, and it is the one contingency which the administration would not be able to meet by any kind of emergency action, except possibly a sudden decision to curtail or limit expenditure and a determination to redeem securities and cash in specie. Again and again in American his- tory, faith in currency has been lost, only to be restored when the Govern- ment makes a definite commitment on a standard of value that seems to sugur some permanency. Behind News In Capital “Good Neighbors” Cause U. S. Diplomats to Throw Up Hands. BY PAUL MALLON. HE disillusionment of the New Deal in world politics is just about complete. United States diplomats are now throwing up their hands in final despair at the subtle way that the plan for control of armament manufacturing and trafic is being wrecked at Geneva. You may read more about it in a few days. Our “good neighbors,” as President Roose- velt calls them, have successfully navigated the plan into the shoals of European politics. There the uniden- tifiable waves can be counted on to do the rest. What has hurt most is that our best meighbor, Great Britain, has been foremost in the piloting. She has suddenly seized the wheel by contending that the plan must await a general disarmament con- vention. That is just the same as scuttling the idea directly. Prospects of a general disarmament convention are exactly zero. < MR Conservatives in the New York financial district took the gold de- cision very hard. The sum total of their personal expressions was that a majority of the court is undoubtedly thinking along New Deal lines. They say the last possible hope of plutocracy has vanished. It may not be as bad as they think. The next important case to come be- fore the court probably will be the railroad retirement legislation Mr. Roosevelt branded it faulty when he signed it. Then will come the test of N. R. A. constitutionality and the case on appeal from Louisville to de- termine Mr. Ickes’ right to seize slum clearance property by eminent domain. New Deal May Be Bumped. The New Deal is not likely to fare so well in these cases. Agriculture Secretary Wallace has been broken up since his A. A. A. | purge. He is a fair-minded man and did not like the idea of making Messrs. Frank, Howe and others walk | the plank. To make amends he recently called Jerome Frank on the tele- phone and offered him a job as counsel of the Bureau of Wild Life and Pure Foods. This is the bureau which mainly handles birds. It has had more success with the live ones than with the ones in Con- gress, especially on the pure food legislation. Frank said he could qualify for the food end of it, but did not know | about the other. He also has received an offer of a political grave in the R. F. C, but will probably practice law. Certain groups of self-professed in- tellectuals are taking up Huey Long. At an important university of higher learning, close enough to ‘Washington to know better. an “Every- Man-a-King Club” has been formed, with Huey as honorary president. It was formed, not by students, buf by the learned professors. who say they acted more or less in jest. How- ever, they listen to Huey's red-hot speeches and praise his so-called ora- torical abilities. How About Crowns? Their disillusionment may come when they write to Long and ask him to send along their crowns. Other strange recent additions to the Long entourage are two wealthy young ex-Harvard-men, one a modern artist from San Francisco and the | other an interior decorator from Cleveland. circulate & new type of sound picture of Huey out through the country. The pictures will be still slides to be thrown on the screen, and accompanied by Huey's speaking voice. The trouble with it is they cannot get Huey to remain still long enough for an un- blurred picture, They may have to use movies. There will be more trouble if their wealthy fathers ever find out about it. Educators are bringing pressure on the New Deal to expand its aid to school systems. The F. E. R. A. has announced it will not permit schools to close, yet there are now nearly four million young people out of school and out of work. More than 5,000 schools (according to the Na- tional Education Association) will close by March 1 unless Federal aid is extended. Money spent on schools in this school year will be $475,000,000 less than in 1929-30. One among every three teachers is receiving less than $750 & year; unpaid salaries amount to over $100,000,000. There are now 23,952 fewer teachers em- ployed than in 1932. Mr. Roosevelt has found @ new place to hold conferences in private —in_his automobile. A few days ago he held such a conference with his adviser, Prof. Raymond Moley, ug;leilc riding through the country- side. Prof. Tugwell’s scientific report on cotton substitutes has been sent to Southern Congressmen. It holds that substitutes are not a serious threat because of their inferior fiber, high prices and small production. It was Mayor La Guardia who called New Dealer McGrady up to settle the New York City elevator strike. La Guardia is constantly playing ‘What has happened this week is that all legal doubt as to the right of Congress to conduct a “managed cur- reney” has been removed, but the same cannot be said about the readiness of the American people to allow the man- agers of the currency free rein to in- flate, expand or tinker with the pur- chasing power of the dollar. (Copyright. 1935.) BAND CONCERT. By the United States Soldiers’ Home Immigra Band Orchestra in Stanley Hall this | The result was the decision was |bills to take from American ;nn!n( at 5:30 o'clock. John 8. M. | known an hour before it ordinarily | nationals voting in future foreign elec- , bandmaster; Pointner, assistant Anton closer and closer to the White House. It may sound like sending coals to Newcastle, but the United States is actually exporting larger quantities of cotton to India. Last week 1,400 bales went. Unfavorable weather has hurt the Indian crop and India’s price is now 78 per cent of ours, For once the Supreme Court co- operated with the press by announc- ing its gold decisions before reading its opinions. The press galleries pre- sented a petition that this be done. would have been. AMH’- 19350 They are arranging to | THE EVENING STAR, WASHINGTON, D. C, THURSDAY, FEBRUARY 21, 1935. MONEY INFLATION || Whar's What | 5,000,000 MELLON DEAL UNDER FIRE Aide Denies Ex-Treasury Head Knew Purchases of Coal Stock. By the Assoclated Press. PITTSBURGH, February 21.—The barbs of cross-examination were aimed again today at what the Government claims was a $5,000,000 “wash sale” tof Pittsburgh Coal Co. stock by Andrew W, Mellon to a firm entirely | controlled by his family. Howard M. Johnson, for two decades financial secretary to the Pittsburgh millionaire, began his third day on the stand in Mellon’s income tax case, with more questions from Robert H. Jackson, counsel for the Board of Tax Appeals. The former Treasury Secretary is asking $139,000 refund for overpay- ment of income tax in 1931, but the Internal Revenue Bureau insists he should pay more than $3,000,000 in taxes and penalties because of “fraud” in the report. Part of Stock Loses. In his testimony Johnson told how in December, 1931, he sold for $500,000 on Mellon's orders to the Union Trust Co. shares of the Pittsburgh Coal Co. which originally cost the financier $6,177,856. That represented a part oI’ Mellon's stock losses that year, he said. Months later, Johnson testified, he was asked to find a buyer for the stock and in April, 1932, it was sold for $517,000 to the Coalesced Co., a holding firm in which the common stock is owned by Paul Mellon, the i banker’s son, and Mrs. Allsa Bruce, | his daughter. In his cross-examination, Jackson seized upon the sale with the accusa- tion that it passed from Mellon's hands into a family-controlled firm. | _ Johnson insisted that while Andrew | W. Mellon held preferred stock in | Coalesced he had no voting shares and | could not be said to have a “control- | ing interest.” | _ The former Ambassador to England | had “nothing to do” with the Pitts- burgh coal stock purchased by Coal- esced, said Johnson. The decision was reached by himself, as an officer; D. D. Shephard, as another officer, Paul Mel- lon and Mrs. Bruce. ‘Without Melon’s Knowledge. “If Mr. Mellon had known we in- tended to purchase it we might not | have done it,” ‘was the secretary's | statement, In the maze of intricate matters | dealing with Mellon's financial affairs, Johnson under cross-examination re- vealed that as of December, 1931, the wealthy Pittsburgher’s “personal” for- | tune was carried on the books at $97,- 603,005. He added, however, that “I want to call attention that this does not neces- sarily reflect true value.” A survey he made, said Johnson, in- dicated Mellon’s personal wealth had I({impped $15,000,000 from the year be- ore. Explaining the $97,000,000 figure, he said it included a “book listing” of a “joint account” with Mellon’s brother | and. $20.000,000 preferred stock in | Coalesced, which has holdings listed | at a total of $68,000,000. 'MAN, 71, THOUGHT, AMNESIA VICTIM Relatives and Investigators Be- lieve Former Realtor Had Financial Worries. i By the Assoclated Press. NEWTON, Mass,, February 21— Three agencies of investigation—the Department of Justice, State detec- tives and municipal police—today were inclined toward the theory of relatives that Moses H. Gulesian, for- | mer wealthy realtor who has been | missing since Tuesday, is a victim of amnesia. There was no evidence, investiga- tors said, to indicate that the 71-year- old man had met with foul play after leaving a dinner of the Sons of the American Revolution at the Uni- versity Club in Boston Tuesday night. The automobile in which he drove from his home in the Chestnut Hill section of Newton was found parked on Trinity place, Boston, near the University Club, yesterday. Mrs. Gulesian, the former Grace Warner, a concert pianist, first ex- pressed the belief he might be a vic- tim of amnesia. She said he had been worried lately over financial troubles and she believed they preyed heavily on his mind. As an alternative theory, she thought he might have gone to New York City to view a motion picture on exhibition there in order to deter- mine whether the plot of a play they once wrote, “Made in America,” had been plagiarized. Congress in Brief By the Associated Press. TODAY. Senate. Continues debate on work relief bill. Coal hearing before Interstate Com- merce Subcommittee. Munitions Committee hears repre- sentative of Navy Department explain ship prices. House. Considers War Department appro- priation bill. Interstate Commerce Committee continues hearing on holding com- pany regulation. Agriculture Committee considers cot- ton legislation. Labor Committee hears witnesses on equal representation for labor on code authorities. ‘Ways and Means Committee works on economic security bill. - YESTERDAY. Senate. Debated McCarran amendment to work relief bill. Finance Committee concluded so- cial security hearing and approved an investigation of N. R. A. . Munitions Committee concluded ex- amination of Newport News Shipbuild- ing & Drydock Co. House. Received President’s N. R. A. exten- message. Debated War Department appropria- tion bill. Means Committee aj tions - and ing foreign to spread- ]u. l ‘Diplomats Gather at Rotary Luncheon Here Diplomats of various countries were the guests yesterday at an international luncheon of the Washington Rotary Club. Upper, left to right: Dr. Hans Luther, German Ambassador; Arthur May, member of the club; Stanislaw Patek, Polish Ambassador, and Chester D. Swope, - president of Rotary. Lower, two diplomats seldom photographed together. Alexander A. Troy- anovsky, Russian Ambassador (left), greets Hirosi Saito, Japanese Ambassador. MANY DIPLOMATS ROTARIAN GUESTS 51 at Weekly Luncheon Meeting Introduced Over Radio Hook-Up. One of the greatest collections of diplomats ever seen under one roof assembled at the Willard Hotel yester- day to participate in the Rotary Club's weekly luncheon meeting. Fifty-one ambassadors, ministers and secretaries of embassies and le- gations in the Capital were introduced over a radio hook-up that took in the United States and all the foreign countires represented. Rotary Executive Speaks. Dr. Chester D. Swope, president of the club, presented the diplomatic delegation, and then introduced Walter D. Head, third vice president of Rotary International, who made the principal address. Head discussed international t.opics[ at length and expressed the opinion | that the League of Nations has not | been such a failure as believed to be in many countries. He pointed to the league's efforts to destroy inter- national drug and white slavery rings. The principal trouble with™ efforts to improve international relations is that they have been on too high an intellectual plane and not emotional enough, he said. Assails Reports. Ignorance, selfishness and propa- | ganda have done much to keep the countries of the world from being in harmonious accord, Head declared, in assailing “distorted press reports” of all countries about affairs of im- portance. The only secure background for permanent international relations and international peace, the speaker said, is found in friendship and under- standing. This is the chief role of the 3,737 Rotary Clubs in 77 different | political subdivisions of the globe, he | declared. ——f: CARS SEEN PASSING IN CONGESTED AREAS Roberts Emphasizes Importance of Express Busses and Re- moval of Tracks. Street cars as a means of transpor- tation, except in congested areas, are becoming more obsolete each year, William A. Roberts, people’s counsel, told the Randle Highlands Citizens’ | Association last night at the Junior | Mechanics’ Hall. ‘The importance of using busses for express service was emphasized by Roberts, who said he had recom- mended tearing up the tracks east of | Eighth street and Pennsylvania ave- nue southeast because he thinks the outlying areas will be served more efficiently if bus schedules are set up from this point to outlying sections. An explanation of proposed gas and light rate adjustments and the pro- posed subway system also was given by the people’s counsel. Action to secure a post office sub- station in the area will be taken as a result of the Executive Committee's work, A. W. Lee, president, told mem- bers. Until recently, a station was maintained for $250 annually. The lowest offer that has been made for maintaining this service now is $350. C. A. Barker will contact postal offi- cials in an effort to secure the added $100 yearly for continuing the service. A letter from the 1935 Shrine Con- vention Committee was read and Paul E. Schmid, Earl E. Whittington and Arthur Joll were assigned to work with Arthur S. Pierce, chairman of the Celebrations Committee, in an ef- fort to interest other southeast civic groups in placing banners across Pennsylvania avenue southeast dur- the convention. B — Indian Trek Survivor Dies. ATOKA, Okla., February 21 ().— Phyllis Flack, colored, who claimed to be 116 years old and the last survivor of the “Trail of Tears” trek of the Seminoles from Mississippi to Indian Territory in 1834, died here yesterday. ‘The aged woman was the siave of an Indian who settled near Colberts Ferry 100 years ago. The Euening Star This Worth-While £ | Star’s New Magazine, This Week, Will i Carry Story. | | Romance of Revolution' Revolves Around W ashington, them as well in later life as did that of Rupert FHughes, noted novelist. They called him “History” at grade and_ high school. After getting out of Yale he went to London and lived up to his nickname by helping to edit the “Historians’ History of the World.” It was natural that this Iowan should turn to historical novels and short stories once he had chosen writing as a career. Next Sunday readers of The Star will find his latest story in This ‘Week, the new colorgravure magazine that is part of The Star every| Sunday. Mr. Hughes' new story is a romance of the American revolution telling how Gen. Washington got the idea 1ér the Order of the Purple Heart, a decoration for military service recently revived by the Government, —A. P. and Star Staff Photos. ERupert Hughes Reveals Origin Of Purple Heart Order Sunday RUPERT HUGHES. Rupert Hughes is the author of & biography of George Washington and of numerous novels. More of his stories will run in This Week, which, with its first issue will bring to the readers of The Sunday Star the first- run work of such outstanding writers as Sinclair Lewis, Fannie Hurst, I. A. R. Wylie and Dorothy Sayers. MOONEY ASKS MORE AID FOR WAR-TIME DISABLED D. A. V. Commander Urges Presi- dent to Liberalize Orders Covering Relief, By the Assoclated Press. Volney P. Mooney, jr, of Los Angeles, national commander of the Disabled American Veterans, urged President Roosevelt yesterday to liberalize executive orders covering wartime disabled. Mooney sald his suggestions dealt principally with increasing widows’ and orphans’ pensions, greater benefits for chronic disabilities and other technical features of the orders which Mooney claimed were not working out satisfactorily. He also conferred with Veterans Administrator Hines and W. PFrank Persons, director of the Federal Em- | ployment Service. RANDOLPH TO SPEAK The crime investigation here will be discussed by Representative Ran- dolph, chairman of the House Special Investigating Committee, before the American University Crime Forum at 1901 F street tomorrow beginning at 8:30 pm. Following the address there will be an open forum with questions from the floor. Offers Its Readers BOOK RELICS PUT ON DISPLAY AT KELLER MEMORIAL 0ld Dresses and House Furnish- ings Feature Exhibit—Wed- ding Gowns Modeled. Keller Memorial Lutheran Church, 907 Maryland avenue northeast, re- sembled a museum last night as mem- bers of the congregation submitted antiquities for exhibition in an un- usual historical review. Baptismal dresses handed down through three generations, pewter plates 160 years old, a paisley shawl 175 years old, a 125-year-old evening dress, Roman lamps made two cen- turies ago, ancient bibles, watches, glasses and other articles were some of the exhibits contributed by the 900 ‘members of the church. One of the features of the exhibit was a fashion parade in which 10 girl members of the church modeled old and new wedding gowns. Another exhibit consisted of a col- lection of bullets and belt buckles gathered at Gettysburg. Heart Injection Thought Dead for 5 Minutes! “He was placed on an examining | By the Associated Press. TYLER, Tex., February 21.—Life that apparently left him for five min- utes returned slowly today to Ti-year— old W. A. Strang. Dr. Howard Bryant, who revived the former Smith County sheriff by in- jecting adrenalin into a stilled heart after he had folded his patient's hands in “death,” said Strang's chances for Price $1 at The Evening Star Business Office, or by mail, postpaid It explains the permanent departments of the Federal Government and the Alphabet Bureaus of the New Deal. Every American should read it. Order today. i-——-ocu Form | 1 | Street susessessessessanesssaseenes | NOME cececosepeccsccscsccccccncns ; his watch beside him—but attencants were hopetul of recovery. “I sure was gone that time, doctor,” Strang told Dr. been revived. “I dont know how you did it." ‘Then he asked for his watch. He COUNTY TAX BILL SIGNED BY NICE Provides Payment Twice a| Year—Police Under Civil Service. By a Staff Correspondent of The Star. ANNAPOLIS, Md., February 21.— Gov. Harry W. Nice today signed Sen- ator Stedman Prescott's bill placing the Montgomery County police force under civil service. At the same time the Governor affixed his signature to another Prescott bill which will per- mit county residents to pay their taxes semi-annually. All day yesterday the Governor re- ceived telegrams asking him not to sign the police bill and this morning shortly before the measure was |brought to his office County Com- imissloners King and Coughlin, Fu- | slonists, personally asked him not to | sign 1t. Costs Fusionists Patronage. The effect of the bill will be to deprive the Pusion party of some of | its patrorage. It will require that| ppointment to the police force be made from a list of persons certified | as qualified by the State Bureau of | Emioyment and Registration. Another feature of the measure, which carries an emergency clause | and is effective immediately, specifies | that the 15 members of the police | force who had the longest record of | service January 1 be retained, or f | they have been dismissed, be restored to duty. 24 Policemen Required. The bill further requires that at | least 24 policemen be appointed by | the county board and gives it op- { tional authority to name as many | a8 30. | The chief of police is the only | member of the force exempted from | | the civil service requirement and his salary is reduced to $2,500 under an amendment which was attached to the bill in the House, Senator Prescott.and the Montgom- ery Delegates, who voted unanimously for the measure, said they had enough votes to pass it over the Governor's veto if he had refused to sign it. PRESIDENT TO BE GUEST Will Attend Founders Dinner at National Press Club. President Roosevelt will be honor guest at the National Press Club's an- | nual founders’ day dinner to be held in the club auditorium March 2 at 7 pm, it was announced today. The President is & member of the club. Attendance will be limited strictly to members, tickets not being trans- ferable. To prepare for the entrance of President Roosevelt, it was said, it will be necessary that members be in their seats by 7:30 pm. The audi- torium doors will be opened at 7 pm. Tickets may be obtained tomorrow at 1 pm. at the club office. “@in” Marriage Act Passed. HELENA, Mont., February 21 (#).— A “gin” marriage act requiring among other things the presentation of health certificates before marriage licenses may be granted was adopted by the | Montana House of Representatives | 1ast night and sent to the Senate. —_— James Roosevelt in Miami. MIAMI, Fla., February 21 (P .— James Roosevelt, son of the Presi- dent, arrived here last night by train and was to leave this morning by com- mercial airline for Nassau, Bahamas, where he will join his wife. Restores Man table and his head raised to a semi- sitting position. He was given stimu- lants, but his condition became worse. He stopped breathing and his heart stopped. .“I told his wife he was dead and she called an undertaker.” Dr. Bryant said he tied the man's hand together and covered him with a sheet, but instructed an attendant to stay with him wuntil the underteker “I went back in a few minutes and try adrenalin,” sald Dr. KENNAMER'S FATE INHANDS OF JURY Deliberations Begin in Case of Judge’s Son, Accused of Murder. By the Associated Press. PAWNEE, Okla., February 21.—The case of Phil Kennamer, 19-year-old Federal judge's son, charged with the murder of John F. Gorrell, was given to the jury shortly before noon today. Final arguments to the jury closed with W. F. (Dixie) Gilmer, jr., 33- year-old assistant Tulsa County at- torney, urging: “All you've got to remember is that this arrogant, supercilious boy shot and killed another boy. Remember that. “Remember instruction No. 13, where your judge tells you that a kidnap plot is not excuse for & mur- der.” Death Penalty Demanded. Gilmer demanded the death penalty. “I demand that you exact his life just as Phil Kennamer shot and killed Gorrell in Tulsa last Thanksgiving night,” shouted the junior prosecutor. ‘There was an uncontrolled buzz in the court room as the demand for death rang out. When the jury left the room Ken- namer turned and smiled nervously at his sister Opal, in the first row of spectators. Verdict Expected Tonight. Judge Thurman Hurst said he be- lieved a verdict will be returned by night. Gilmer followed C. B. Stuart, elderly defense attorney, who closed the plead- ing for acquittal of the 19-year-old defendant. Stuart, former territorial judge and one of the outstanding trial lawyers in the State, roared a denial he had been “paid to weep” in his defense of Phil Kennamer. Referring to the charge of J. Berry King, former State's attorney general and special prosecutor, the massive attorney told the jury: Cites Love for Heiress, “Ill have you, and him, know I am without price in this case. There is no sordid money involved. “I have known this boy's father (Federal Judge Franklin E. Ken- namer), eaten his salt, broken bread with him. When he called I was glad to respond. “As I open the last words for this unfortunate boy, remember this is a simple case. “This is the story of a precocious boy, of his overpowering love for a girl and his tragic effort to keep her from harm.” He told of the one-sided romance. the unrequited edoration of young Kennamer for Virginia Wilcox, Tulsa oil heiress, threatened in an extortion note admittedly written by Gorrell Stuart quoted from the extortion note: “You will secure $20,000— failure to comply will result in cer- tain and painful death to one or more of your children * * * Jurors Eye Pistol. The attorney scored State insinua- tlons that Virginia's brother, who, he said, had been warned of the plot by Kennamer, was an accessory in the killing in shooting out street lights near the death scene in the fashionable Forest Hills section of Tulsa. “Let not one of you give him a passport to decency and another brand him an accessory,” Stuart shouted. Stuart picked up Gorrell's pistol and enacted his version of Kenna- mer’s story that it was fired when he attempted to wrest it away after Gor- rell had snapped it in his face. The youths were in Gorrell's car in which the body was found later with two bullet wounds in the head. ‘The iurors eyed Stuart nervously as he waved the pistol at them. “Self defense is a God-given plea,” Stuart declared. “This boy still has his manhood be- fore him—do not destroy it,” he ap- pealed to the jury. SCARLETT FIGHTS ANNULMENT SUIT Denies Wife's Charges That He Deceived, Coerced and Threatened Her. Denying that he had deceived, threatened or coerced the former Miss Jane Cooke into eloping with him, 21-year-old George Stanton Scarlett, 3d, yesterday filed an answer in Dis+ trict Supreme Court contesting the annulment suit brought by his bride of less than a month. The former chauffeur of the Cooke family contended through his at- torney that the marriage could not be annuled since he and his 20- year-old bride had lived together “as man and wife” after their marriage, January 25, and while on a run- away honeymoon to the South. Mrs. Scarlett had charged in her suit that the young chauffeur threat- ened her life unless she married him, and also misrepresented his financial standing. This Scarlett denied. Your Income Tax Deduction for Interest. Amounts paid or accrued within the taxable year 1934 as interest on ine debtedness are deductible, with cer~ tain exceptions, from gross income in determining net income. Such items include interest on borrowed money to defray personal expenses, and on money borrowed for the purchase of real or personal property. If a per- son owes money on a lien or mortgage note on his home the amount of the interest may be deducted. Indebted ness, however, need not be evidenced by lien, judgment, or mortgage to make the interest on it deductible. Frequently indebtedness is evidenced only by a note. Interest paid on indebtedness in- curred in the purchase of obligations (other than obligations of the United States issued after September 24, 1917, and originally subscribed for by the taxpayer) the interest upon which is wholly exempt from Federal income tax, is not deductible. Inter- De- | est paid’ on loans on life insurance policies is deductible provided the amount of the loan is not used for the d | purposes previously referred to in this paragraph. Interest paid on behalf of a friend or relative where there is no legal ob- ligation on the part of the payor is' not deductible. In such cases the amount is the same as a gift. As interest paid is deductible, so- interest received is taxable. All such amounts, including interest received on bank and savings deposits, must be included in the taxpayer's return of gross income. a