Evening Star Newspaper, March 14, 1935, Page 2

T A2 »» THE EVENING HOLDING COMPANY PLAN FACES COURT Presidential Regulation Held Doubtful Exercise of Con- stitution Power. BY DAVID LAWRENCE. President Roosevelt’s denunciation of the evil features of holding com- panies wiil be universally indorsed His proposals. however, as to the ways that holding companies shall be regu- lated will eventually be found in the Federal courts along with the T. V. A. and the N. R. A. and the A. A. A. as & doubtful exercise of power under the Federal Constitution. The President now has assumed full responsibility for what happens to the What’s What Behind News In Capital *| Leaders in Radio Fight Fully Satisfied With Results. BY PAUL MALLON. EADING characters in the John- son-Coughlin-Long radio brawl are not as bitter as they seem to be. Inwardly they all seem to be satisfied with results to date. Most satisfied is Gen. Johnson's invisible second in the New Deal cor- ner. The essential strategy of the John- son attack was to give Huey and Father Coughlin some personal ants to scratch so they would stop scratch- billions of dollars of investment in ing the New Dea) so vigorously. Well, the electric light and power and gas|father Coughlin announced he was GRACE ASSAILED BYV.F. W. CHIEF Bonus Stand ‘“Monumental Gall,” Munitions Hearing Told by Van Zandt. By the Associated Press. The wrath of World War veterans was poured out today upon Eugene G. Grace, president of Bethlehem Steel Corp., for his criticism of de- mands for the soldier bonus. James E. Van Zandt, commander in chief of the Veterans of Foreign ‘Wars, testifying before the Senate Munitions Committee, termed Grace's position as “monumental gall.” He joined James A. Drain, past na- tional commander of the American Le- gion, in urging the committee to con- tinue its campaign to take the profits out of war by conscription of capital STAR, WASHINGTON, D. C., THURSDAY. MARCH 14, 1935 Eastern Wins Cadet War Games Company C of Eastern High School's Cadet Corps won the annual high school cadet war games yesterday after playing off a tie with McKinley High School. The winners are shown above, left to right, front row: Cadet Capt. Charles Stewart. leader of the team and winner of the annual gold medal; Capt. Michael Kelley, instruc- BRITAIN WARNED ON REICH STAND Soviet Will Increase De- fense Measures if Conces- sions Made, Says Paper. WAVE OF STRIKES - FEARED BY GREEN Wagner Bill Passage Only Can Avert Strife, Sena- tors Are Told, By the Associated Press. an increase in “defensive measures” will follov in Soviet Russia 1f England makes concessions to what were called Germanay's plans of aggression was in Izvestia, paper. It was recently announced that the Soviet army has been built up to 960,000 men. Baldwin Remarks Recalled. the government news- MOSCOW, March' 14.—Notice that | served today in an authorized article | tor, and Col. Wallace W. Craigie, professor of military science and tactics. Second row: Pvt. Russell Clements, Stanley Baldwin, lord president of industry. Mr. Roosevelt promises to protect the investor in holding com- | pany securities. “in so far as they have any value He insists that not still for Roosevelt and Huey began to be careful about what he said the day | after Johnson's speech. To make it perfect, the Long and a penny of actual value in operating | Coughlin followers here believe they companies will be destroyed. won and so do the followers of the | Watered Stock Seen. 1 Apparently, in the President’s judg- | ment, the exchange markets of the country which have shown a drop in | value of more than a billion dollars | in the last few months, since the | agitation started. reflect the deflation of watered stock or fictitious values and not actual investment On this. opinions will differ. In- deed. the Federal Trade Commission itself contradicted the T. V. A. once | when the latter claimed there was| not & dollar of aectual investment in | the Knoxville company’s common | stock. So. if the President is relying | on his power advisers, it may be | that he has been misinformed again. Anyway. the investor who may lose | his life savings will not quarrel with | anybody if provision is made for mm.‘ either to compensate his losses or to| make a place for him on the relief | rolls. Nothing has been promised as yet on either point Mr. Rooscvelt's message is an ad- mirable statement of what might be done to the complicated structure of holding companies in order to simplify them and rid them of abuses. But, fortunately or unfortunately, as the case may be. the Federal Government does not now have the authority to deal with holding companies unless they are directly engaged in interstate tommerce. Only about 12 per cent of the electrical energy of the whole tountry is interstate commerce today. The National Power Policy Commit- tee. whose report the President has transmitted to Congress with his own approval, says: Every holding company should be required to register with this (Federal) commission. if. either directly or through subsidiary companies. it em- ploys the instrumentalities of inter- state commerce, to transmit or trans- | port electric energy or gas, to perform | contracts or to carry on any business. | Furthermore. every holding company should be required to register if it has | will Johnson viewpoint. Foresee Outcome. The New Deal fight promoters have no idea that they have settled the heavyweight political championship vet. But they do believe they can see how it probabiy will come out. They ktelieve Long and Coughlin now are at their peak: that their popularity play out during the next 12 months because they cannot keep their programs forever fresh and new; that eventually their radicalism will assure President Roosevelt's driving all conservatives camp. into his on business. If busi- ness improves considerably during the next year. nothing can stop Mr. Roasevelt. If 1t does not, he will have bigger things to worry about than Huey and Father Coughlin. Baruch Only One Shot. The only’one who got shot in the Johnson-Coughlin-Long fracas was Bernard Baruch. Gen. Johnson knew that when he started It may be doubted. but it is true that Johnson went to Baruch for advice about making the attack, and Baruch adrised against it. The financier felt that his friend Johnson was borrowing trowble. He did mot think the gemeral wouid accomplish anything. that people would mot raily to him. It all depends re-election BY | 1;nces. that the question of adjusting | outstanding securities which were dis- | Johnson replied he was free, white tributed to the public through the anq 21, had a right to express his channels of interstate commerce. since | yiews, and would do so, whether people by such distribution it has set into jiked it or not. He thought this off- motion forces which are still active |pand statement so good that he later and are Nation-wide in their eflect jnyed it into his speech. upon both consumers and investors.” Roosevelt Angered. Held Novel Doctrine. This is novel doctrine. The Con- ' strong and unusual message to Con- stitution plainly says no ex post facto | gress on the holding company eradi- law should be enacted, nothing that is cation bill was half told in his mes- retroactive, nothing that affects a gsage The holding company campaign transaction already accomplished. has been getting under his skin. Yet the President’s proposal now is The day before the mess e that, by the device of requiring regis- d:spalrhrz e h;l e m"%"‘l;’; tration, control shall be exercised by & | /00" N ok and Washing- Federal commisison over the conduct | ,,"a; the President would with- of a business which already established | 7 8 T TR KORT QUL itself by means in accordance With po1 oy well, Every important neis State and Federal laws. agency received it from sources If the principle above quoted were | S9ucrd TECCITeq B KTy sustained by the Supreme Court. there | 2 S o would be nothing to prevent the Fed- | Newsmen realized it was silly, but eral Government from tearing wide open every corporation in the country by requiring it, first, to register and inquired about it at the White House. The reaction was the same as if the holding companies had put a cactus in the President’s chair. then holding a hearing to determine | as well as manpower in time of war. “It is not my intention,” Van Zandt | declared, “to inject the soldiers’ so- | called bonus issue into this discussion. “That question is now before the other branch of Congress and Will come to the Senate in due time. But I do wish to speak of war-time | bonuses for a moment. Refers to Testimony. “I cite the testimony given before | this committee by Mr. Eugene G. | Grace of the Bethlehem Steel Corp. as a glaring example of unrestricted and exorbitant profits of industry in time of war. i “It was because of the unconscion- able profits rolled up by industry and the fat bonuses paid to officials and employes, in addition to salaries and | wages that were tripled in many in- | the compensation of the men who {wore the uniform was first agitated. “Quite unabashed, Mr. Grace told this committee he received bonuses of approximately $3.000,000 from his corporation during the and then defiantly sought to justify that huge hand-out in addition to a | princely salary. “That Mr. Grace should have the monumental gall to deplore the pay- ment of the adjusted service certifi- cates to the men who fought the World War is incidental to your pur- pose of taking the profit out of war. | “T cite his statement merely to il- lustrate the illogical and selfish posi- tion of the war profiteers in their opposition to any measure to end this unjustifiable war profits system.” “Purpose Same as Legion's.” Drain told the committee its pur- pose “is in exact accord with that of | the Legion." “The American Legion is for peace and against war—earnestly against any war which can be honorably avoided.” he asserted. | He emphasized that the “universal draft of all man power and resources” | was a fundamental plank of the Le- | gion _platform. | “The Legion says.” he added. “and it is right, that the universal draft | means no profiteers and no slackers— | in other words, a square deal for every citizen, a war at low cost and high efficiency if war must be. “We all know that once an appro- priate universal service law is upon the statute books a long step toward | lasting peace will have been taken, for | no nation or combination of natinns it is known we have provided by law | for marshalling our total spiritual, intellectual and material resources | to resist attack. ‘} Universal Service Law. | “We are all quite as well aware | that the existence of an adequate | universal service law will discourage those of our citizens who might be thinking of war as an opportunity for profit.” One ot the strongest denunciations of war-time profits that the committee | has heard in its long was delivered yesterday by Patrick J. Hurley. President Hoover's Secretary of War. “It is unpatriotic,” Hurley stressed. “to compel one man to endure the investigation World War | Pvt. Roy Stegall, First Lieut. Edward Younes and Corpl. Hymen Barr. Corpl. Shelton Aiken. The team won EASTERN WINNER OF CRAIGIE CUP |Extra War Problem Needed to Decide Contest After Tie With McKinley. An extra war problem was neces- sary to decide the winner of the annual high school cadet corps’ war games held yesterday at the Franklin School Building under the supervision of Col. Wallace M. Craigie, professor of military science and tactics Competing teams representing each | of the city high schools were entered after having won similar games in elimination contests. Eastern High School won the Craigie Cup. | At the end of the contest, Col Craigie decided that Eastern and | McKinley High School had made equal scores. He suggested that the winner be selected either by lot or by tackling a new problem, and the young military leaders chose the lat- ter. Eastern made the better score in the added problem. Gettysburg Field Used. Using the Gettysburg battlefield as the locale, the cadets maneuvered their troops on maps, with Col. Craigie as the official observe | Cadet Capt. Charles Stewart was the leader of the winning team. rep- resenting Company C at Eastern. He will be awarded the cadet corps gold medal. On the team with him were Lieut. Edward Younes, Sergt. John Hamaker, Corpl. Shelton Aiken. Corpl. Hyman Barr. Pvt. Russell Clements and Pvt. Roy Stegall. Second-Place Team. McKinley's second-place team. com- posed of the school's regimental staff, was captained by Regimental Sergt Maj. Richard A. Coleman. His asso- | | ciates were Maj. William Barron | Walsh. Capt. David H. Mitchell. Regi- | SThe reanon Mt Rooeexeit iment m“uver will be keen to attack us once | mental Quartermaster Sergt. Robert | Downey, Color Sergt. Bernard Hauser and color Sergt. Richard E. Wagner. | Third place was won by Roosevelt | High School’s Company C under the | leadership of First Lieut. Stanley | Kamerow. Other members of the {team were Capt. Carroll Mallonee, rpl. Del Christie, Corpl. Edward | Lyman. Corol. David Pitcher and | Corpl. Sidney Levin. 'MORGAN IS APPOINTED 'DEMOCRATIC SECRETARY | By the Associated Press. Postmaster General Farley yester- <@ Back row: Sergt. John Hamaker and the Craigie Cup, awarded annually by Col. Craigie. —Star Staff Photo. and the Communists quickly retorted | By the Associated Press A series of strikes that would “up- | set” the Nation's industrial life was forecast today by William Green, president of the American Feder- ation of Labor, unless the Wagner labor disputes bill is passed. Testifying before the Senate Labor Committee at hearings on the meas- ure, the A. F. of L. head said if it |1s not approved “we must face the fact that we are only at the beginning of a series of strikes which will upset the entire industrial life of our Na- tion if we continue to deny to work- | ers their rights.” the British Council, drew attention to | the Russian armaments in a speech | in the House of Commons Monday Resentment Seen Gaining. “We cannot and will tinue to urge workers not to con- have that his purpose was to smooth over | patience, unless the Wagner bill is the resentment caused in Germany by | made law, and unless It is enforced, ““7 Buck Privates” Proposed as Cure If Capital Strikes By the Associated Press. G. A. Brobeck, legislative representative of the Veterans of Foreign Wars, today gave the Senate Munitions Committee his idea on how to force capitalists to work under a universal draft in wartime. “What would you do if capital struck?” asked Senator Pope, Democrat, of Idaho. | SOCIAL SECURTY publication of the British White pa- per—the publication which caused Reichsfuehrer Hitler to postpone his scheduled armaments talks with Sir John Simon, British foreign minister. Russian authorities pointed to the willingness of Russia to enter the pact as one of the proofs that the RIFT UNSETTLED {One Democratic | | fensive. | Would Bar Miss Perkins | Karl Radek. one of the chief mouth- | pieces of official opinion, signed to- | . day’s articles in Izvestia. | From Talk With Roosevelt. | "“We can tell Baldwin” he wrote | “that_any direct or indirect conces- | sion by English diplomacy to Ger- “A general court martial by By the Associated Press. { man aggressive plans will lead (o an seven buck privates” Brobeck | | A disagreement between Secretary increase of defensive measures by answered. Perkins_and the House Ways and | Soviet Russia. Means Committee over social security P 5 . machinery remained unsettled today S . Ve Gk | 1t had reached the point where one _ “England must choose between the | Democratic leader suggested Miss | decisive support of general peace or | Perkins should be barred from a final | readiness to take part in a general | conference the committee will have W%ar. It is very difficult to dance with President Roosevelt before pre- | long ameng so many swords.” Couzens and La Follette | senting the bill to the House Radek said the English policy was | The major points of the dispute are to hold the middle seat on a teeter- Seek to Boost Levies on Profits and Incomes. two: Miss Perkins says the Social In- | Olter balancing the United Stutes, urance Board, which will handle much | Japan, France. Germany. Italy and | of the social security plan, should be | Soviet Russia, and he warned that under her Department of Labor; the | the position was dangerous and committee has voted to make the | Great Britain “might fall off | board independent. The Labor Sec- | Radek declared that the increase | retary contends all employers with of Soviet armaments was brn:;gh' on four or more workers should be sub- | PV the aggressive intentions of Japan ject to the unemployment insurance | 2Rd Germa tax; the committee, over her protest, | PARIS MAY RA | raised the figure to 10 workers. e 1 By the Associated Press. Committee Adamant. The tax question, with the related Though the committee’s hearings | ISSUE. | | By the Associated Press PARIS, March 14—Germany's an- proposed Eastern European securities | issue of division of wealth, bobbed up , ended three weeks ago, it was learned | nouncement that she pessesses a mili- in the Senate today to block the way today that Miss Perkins has continued informal discussions with committee tary air fleet was viewed in France | today as a repudiation of the Ver- of the House resolution to repeal the mempers attempting to get them to | sailles treaty. “pink slip” income tax publicity law. Two proposals for raising the taxes on the rich already were pending in the Senate as riders to the “pink slip” resolution and more were on the way. They are pushed by members who say income should be distributed more evenly. Senators favoring repeal of the “pink slip” law conceded the revenue i issue placed a serious obstacle in the way of quick action on their proposal, and might result in its defeat. Senate Battle Conceded. ‘Though the “pink slip” repeal i slipped through the Pinance Commit- tee with little trouble, after a test | vote of 14 to 7, leaders of both sides | of the controversy conceded it would | face a tougher fight in the Senate, even aside from the revenue cum- plications. The two revenue measures already 1 offered as riders to the income tax | measure were presented by Senators | Couzens, Republican, of Michigan, and La Follette, Progressive. of Wisconsin. Together, they would raise about change their minds. They have been adamant. | Once she asked that the differences be discussed in a special meeting with the President. but informed sources on Capitol Hill said the President de- clined to grant a conference until the Government officials were reported to be considering calling the Reich's attention to this aspect of its action It such a move is made, it was ex- pected it would be with the support of Great Britain and Italy. One of the provisions of the Rome final draft of the bill was ready for accord between Italy and France and ! his_inspection the Franco-British London declara- | One high Democratic leader. who tion is that no power subscribing to | asked that his name be withheld be- the agreements may modify an arma- | cause he “could not afford to pick a ments agreement without the consent | public fight with a Democratic cab- | of the other signatories. inet member.” said one reason the Although the announcement by | committee had been slow in report- | Gen. Hermann Wilhelm Goering, |ing the bill to the House was Miss | Reich air minister. that Germany is | Perkins' “interference.” equipped with a military aviation arm Seeks Separate Conference. was no surprise to the French general He said he had suggested to Chair- staff, French officials incline to the - | belief that some tactical advantage \man Doughton that when the com- | % 7 | mitt = may be obtained by calling to the its final trip 0 the|gogss attention that Germany by White House, 16 t that none °m"|her own admission is violating the than committee members and the | yo caines pact President be present. 5 | Pre - It was not believed that any pro- | X told him that if Miss Perkins| .. would persuade Germany to de- was present, she would run the con- part from her program . | ference—take charge of things.” the 3 |leader said. “The committee should ask = |SE0000080, L eratumted ezcem | itk s Perting at some oies e | [1OH TRIAL GENTERS | profits tax on corporations. which he | Miss Perkins had some of the Dem- | estimates would yield $325.000,000. He |OCTatic committee leaders as her din- | | would put a tax ranging from 5 to 40 | Fer guests recently. But outside of a | ON SKULL IDENTITY| | day appointed W. Forbes Morgan, ' per cent on profits above 8 per cent. whether it will or will not grant a registration certificate. This is nothing more or less than Federal licensing and it would appear from a close reading of the President’s message that the holding company idea, whether applied to the utilities or any other business, is a corporate form obnoxious to him. But Mr. Roosevelt’s message is con- tradictory. While threatening to de- | stroy all holding companies, he con- cedes that “for practical reasons” a | chance of “survival” should be offered “to those holding companies which can prove to the Securities and Ex- | change Commisison that their exist- | ence is necessary for the achievement | of the public ends which private | utility companies are supposed to serve.” i In that sentence is a significant | promise. For it means that not the Federal Power Commission but an | entirely different body will judge whether securities are to be destroyed. And five years' time is offered in which to make such a showing or dis- mantle the company. i Course Seen Unconstitutional. | If the Federal Government would | offer to compensate owners on the basis of actual value, to be set by fair tribunals of appraisal. and then take over the operation of utilities alto- gether, it would simplify matters con- siderably and might not slow up re- covery as much as the present defla- tion is doing. The chief difficulty with the present course is that it is unconstitutional. The courts have recently said that the Federal Gov- ernment has no control over business wholly within a State, and that’s what the operating companies mainly do. Also it is difficult to see how any holding companies can be divested of their influence on management if they become investment companies. as sug- gested by Mr. Roosevelt. For the stock ownership alone elects the boards of directors of operating companies, and if the stocks are held by investment companies the same possibility of in- direct control exists. The State legislatures have ample power over holding companies and the State commissions are set up to regulate utilities doing business within a State. The administration claims that State commissions have been in- effective. That's true, but the remedy is to get new State commissions and better State laws and a supplemental Federal law to regulate operating companies actually engaged in inter- state commerce. (Copyright. 1935.) —— 200 REFUSED HOSPITAL Animals Declared Too Healthy at Chicago Institution. CHICAGO (#)—There’s such a thing as being too healthy Just for that the animals in the Brookfield Zoo aren't geing to get & $35,000 hospital. “Mortality at the zoo has been so Jow that the expense of a hospital is not justified.” said John T. Pirie, chairman of the Chicago Zoological Society’s Building Comumittee. { Irked by Liberals. The withdrawal tip was really only one needle in the cactus which spurred the President. Another was the way some liberals in Congress have been talking privately about the bill, saying | it went further than they ever hoped to go. The President was trying to prevent any moderation of the bill resulting from such talk. New Deal May Quit Suit. The New Dealers are half inclined to back out of the pending Supreme Court test on N. R. A. You may see them. shortly. dismiss the suit against the Belcher Lumber Co. This was the first big N. R. A. test to be heard by the court this Spring. In the jace of the court’s action on oil. the New Deal lawyers are mome too confident about it. They think it is foolish to take a chance on an adverse decision while the permanent form of the N. R. A. 1s undetermined in the Senate. Some feelers have been put out carefully and it is understood the Court may permit the suit to be dis- | | missed. Baker Outstrips Huey. The story Huey Long tells about C. W. A. workers moving dirt six times and then finally putting it back where they found it originally, is not as good as the relief absurdity accredited to Newton Baker, who is on the opposite side of the New Deal fence. Baker is authority for a story that, in a Great Lakes city, relief workers were employed at breaking ice. They only worked three days a week, Mon- day, Wednesday and Friday. In the lay-off periods, the ice always froze again, so they never ran out of work until the Spring thaw. Sight in Senate. The most amazing Washington sight these days is the Senate galleries, where the audience crowds in and waits hours each day in hopes of hear- ing Huey. It is cheaper than the movies. Vice President Garner has ruled in the Senate: “You can do anything by unanimous consent, except violate the Constitution.” A New Deal authority, not P. W_ A., has analyzed Public Works Adminis- tration figures and found that for every dollar spent for labor $195 is spent for K Ben Cohen will take the Securities and Exchange Commission job when and if the holding company bill passes in good shape. Gen. Johnson's reply to Father Coughlin was ed before the General listened to Coughlin’s speech. (Copyright, 1835.) hardships of war, perhaps to give his | life, while another is earning profits from war.” BOND ISSUE SOUGHT | Chicago Terminal Asks I. C. C. Assent to Refinancing. | The Chicago Union Station Co. and | associated railroads asked the Inter- state Commerce Commisison today for permission to issue $16,000.000 of 4 per cent. first mortgage bonds in lieu of a similar amount of 6!, per cent bonds, which are to be called at 110 and accrued interest. The bonds are to be issued under a mortgage authorized as of July 1. 1915, in order to reduce the fixed charges of the Chicago Union Station Congress in Brief By the Associated Press. TODAY. Senate. Resumes consideration of 000,000 works relief bill. Labor Green on Wagner labor bill. A. Drain and James E. Van Zandt. House. Takes up Agriculture Department appropriation bill. Banking Committee continues hear- ing on omnibus banking bill. Interstate Commerce Committee hears new testimony on holding com- pany control. Labor Committee hears automobile organization on Wagner-Connery labor disputes bill. Agriculture Committee farm mortgage legislation. Indian Subcommittee considers ad- ministration Indian bill. YESTERDAY. considers Senate. Voted investigation of “propaganda” against holding company bill. Debated works relief bill, adopting amendment barring spending for na- tional defense. Confirmed nomination of Hubert D. Stephens of Mississippi on the R. F. C. Board. Finance Committee approved bill repealing “pink slip” tax publicity. Munitions Committee heard Patrick J. Hurley denounce war profits. Pinance Committee heard Donald R. Richberg say business favors N. R. A. Labor Committee heard Prancis Biddle reply to Secretary Perkins on ‘Wagner bill. House. Passed deficiency appropriation bill. Rules Committee decided bonus could not be brought before House before next week. Federal Power Commission advised Interstate Commerce Committee Con- gress should imit electricity rate con- trol to wholesale power. Roads Committee approved billion- dollar road building and grade cross- ing elimination program. € $4.880,- Committee hears William | Munitions Committee hears James | | former deputy governor of the Parm | Credit mittee. The post had been vacant since the resignation of Robert Jackson a year ago. It had been reported previously that Morgan's duties would be to conduct a drive for funcs to wipe provide a balance to begin the next campaign. Administration, &s secretary | | of the Democratic National Com- | La Follette Hits at Rich. La Follete is trying to increase in- come taxes all along the line, but chiefly on the wealthy. His amend- | ment would lower personal exemptions from $1,000 to $800 for single persons and from $2,500 to $2,000 for families. He also would boost the normal rate from 4 to 6 per cent and raise the per cent to a scale ranging from 6 to | 71 per cent. Copyright, A. P. Wirephoto. few smiling remarks about how the sociai security bill had been side- tracked, the guests said that measure { was not discussed. | TEer e | Auto Strikes Woman. | Sarah Z. Levitan, 39, of 3044 Four- | teenth street was knocked down in front of 4550 Connecticut avenue last night by an automobile said to have out the committee’s deficit and to surtax rates from a range of 1 to 59 been driven by Charles L. Billard, She | 3000 block of Ellicott street. ' was treated at Emergency Hospital. Proposed Pacific Airplane Route Map showing proposed Pacific air route, on which the Government yesterday granted Pan-American Airways permission to build airports at Guam, Wake and Midway. small islands in midocean. radio beams from each station. Pilots will have continuous radio beam throughout route. Circles show distance of long as it stays on the “beam” of send- course to either side, receives no sig- nal at all. “robot” pilot, by which the pilot may set a course without having his hands on the controls. = The new plane, which carries enough fuel for 3,000 miles of flight, also is equipped with rubber life boats, life jackets and emergency rations. It's gasoline can be dumped hurriedly, to gain greater buoyancy, from its tanks in case of a forced landing at sea. JAPAN SEES MENACE. TOKIO, March 14 (#).—Japanese vernacular newspapers interpreted the United States preparations for trans- Pacific air services today as a menace to Japan’s security. The papers featured sensationally hostile comment of unnamed naval authorities in connection with their accounts of the United States Navy Department’s issuance of permits to Pan-American Airways for the con- struction of airports on Guam, Mid- way and Wake Islands. » g ing stations and, when badly off its| The ship also is equipped with a| | dicted Typical headlines were, “American air force shakes finger under Japan's nose,” “American under guise of com- mercial enterprise establishing mili- | tary airports in Pacific extending to gates of Japan” and “America’s con- cealed military power in the Pacific.” Nichi Nichi and other newspapers quoted the unnamed naval authori- ties as follows: “This project can be refirded as military preparations in the guise of civilian enterprise. Commercially and | industrially there is no justification for extension of American Airways to the Pacific islands. “Since the projected routes are close o Japan's mandated islands, we must give the project serious con- sideration. The fact the permits were issued by the Navy Department :he- airports 1 - o jor milif is contemplated. Y P “Such’ developments an- other nation are un!muumt.cdz this Jjuncture when questions of naval dis- armament are unsettled.” KEYNOTE OF NEW SYSTEM. The Department of Commerce pre- that the radio direction finder, < tested yesterday on the Pacific Coast, T e et oves waiers io Z 3 In logtf;x::;?.on the finder the de, t said that “we contemplate employing it with ships traveling the circle course between the Hawailan Islands and the mainland just as we would use mmmex;c'i;L :Tndcnsglvxg t) of tions T ot furth statement did urther lpe?t‘fey whether a trans-Pacific flight was planned at this time, except to note that in using the particular make plane (a twin-engined Douglas) the department was not committing itself o any one type of equipment. the department on his way back from the scene the West Coast tests. The depart- ment said his return was “simply be- cause nothing more for him | State Moves to Prove Find That of Grace Budd—May Call Alienists. By the Associated Press. WHITE PLAINS. N. Y.. March 14.— The State moved today to prove that | the skull which it exhibited in court vesterday is that of 10-year-old Grace Budd. that the confessed butcher of the child, 65-year-old Albert Fish, is sane. A chart by which the State hopes to establish the skull as that of the girl who was kidnaped and killed in 1928 was introduced at Fish's trial shortly before adjournment yester- day. Dr. Herman L. Bielfield, who said Grace had been under his care in 1927, explained the markings on the diagram to the jury. Other bones also were recovered where PFish said he had buried them, and the State was expected to call dentists to show that the teeth were those of Grace. Two New York detectives testified yesterday that they were present when the skull was found at a de- serted house in East Irvington and he had put his initials on it for identification purposes. It is the contention of the prose- cution that Fish i a sexual degenrate, but able to distinguish right from wrong—the legal criterion of sanity. Fish's counsel has indicated he will base much of his case on an insanity defense. e L New Yorkers Plan Dance. The New York City Society will present its first semi-annual dance street, Saturday at 9:30 pm. New Yorkers residing or visiting here are urged to attend. Mrs. H. Bernstein is president of the society. It may also call alienists to testify | one of them showed the jurors where | at Meridian Mansions, 2400 Sixteenth | once it became law. There is grow- ing in the masses of American people a bitter resentment at the position in which they find themselves and a deep conviction that only their own economic strength will avail them in their struggle against the injustices and inequalities under which they work."” Green joined Secretary Perkins in support of an amendment to the bill to place in the Labor Department the permanent Labor Relations Board which it would create. “Employers have nothing to lose through the Wagner bill.” Green said. In fact they have much to gain.” Method of Destruction. “They could not more surely go about the complete destruction of sound labor relations and of co-opera- tion between men and management than through their attempts to inter- fere with the self-organization of their employes and the free choice of labor representatives “It is essential for the future of in- dustry that the relations between management and labor be put on a more constructive basis; that the de- fensive attitude of the employes and the antagonism of management be re- placed by an attitude of co-operation on the part of both employers and employes.” Far-Flung Spy System. | Green charged that far-flung spy | svstems had been established in in- dustry among workmen to help man- agement break up union movements. “There are two kinds of spy s.” he said. “In one, an employer an agency to do his sy he agency furnishes are put to work in various parts of the plant, where they are in contact with the workers. terest in the union, and in many cases it is they w initiate talk of the union. They join any union which y be started and attend all meet- and report at once w0 the em- ployer the fullest details “If the employer does not retain an outside agency to do his spying for him, he uses foremen and straw bosses, or other employes whom he calls ‘loyal’ as stool pigeons, and they make it well worth the while of work= ers to drop the union, through giving them better jobs, higher wages, or urance of more extended work.” These espionage systems, he said, were much used in the automobile and steel industries. U.S. CHARGES SALE OF MELLON FIRM Testimony on Deal Seeks to Link Subsidiaries of Bethlehem Corporation. By the Associated Press. PITTSBURGH, March 14.—Gov- | ernment counsel attempted to show at Andrew W. Mellon’s income tax hearing today that certain subsid- iaries of the Bethiehem Steel Cor- poration—and not Bethlehem itself— acquired the McClintic - Marshall Corp. in 1931. Testimony concerning the transac- tion was brought into the record as a part of the chain attorneys for the Bureau of Internal Revenue are try- | ing to link together to prove that through the negotiations Mellon | evaded about $1,000,000 of the $3.089.- | 000 tax assessed against him. The former Secretary of the Trea ury has petitioned the Board of Tax Appeals for a refund of $139.000. F. R. Shearer, Government attor- ney, questioned A. J. Slater, assistant secretary of Bethlehem subsidiaries, | and brought out that in January, 1931, before the transaction was com- pleted. Bethlehem Steel Corp. had outstanding 3,200.000 shares of Beth- lehem stock and $315900,000 in bonds, and that this was not increased after the deal He also brought out that the Mid Steel Company, one of the subsidi- aries, acquired most of the $21,823,000 of McClintic-Marshall's assets, but | did not increase its $5,000 stock capi- | talization. Mellon owned a 30 per cent interest in McClintic-Marshall. The Government claims the deal was a straight sale and taxable. Mel- | lon claims it was a.merger with Beth- lehem Steel and non-taxable. British Income Taxes Up. Britain's income tax receipts so far | this year have shown an increase over 11934. In a recent week the yield was | $69.160,000, compared with $65.525,.- 000 in ‘he corresponding perind of !last year. So far this financial year the yield has been $610,990.000 toward | the budget estimate for the year of ! $1,097,500,000. de; at The Evening Star Business Office. or by mail, postpaid SIT€€1 .evesreccnscsrcscarsccccnnes The Evening Star Offers Its Readers This Worth-While BOOK It explains the permanent partments of the Federal Government and the Alphabet Bureaus of the New Deal. Every American should read it. Order today.