Evening Star Newspaper, April 26, 1935, Page 2

A—2 ‘sw TENTLE SUBSDY PLAN WIS FAVR Rebate to Shippérs Devised to Meet Japanese Cost. Tax Would;Stay. BY DAVID LAWRENCE. What may prove to be a way out of the acute dilemma in which the American cotton textile and cotton- growing industry has found itself is now under consideration by the spe- cial cabinet committee created to placate the antagonism to the New Deal program in New HBngland and the South. Briefly, the plan would reverse the idea of restricted production and make possible a return to natural production. Also, it would meet Japa- nese competition. It would increase employment in textile mills through- out the United States and stabilize the whole textile situation. ‘The proposal, known as the Lamport plan, because it is the work of Samuel Lamport of New York, chairman of a committee set up by the Cotton Ex- porters’ Association, has been given careful consideration by Government | officials and is in process of being developed. No New Money Involved. The cost of the plan, curiously enough, does not involve new money but a willingness on the part of the Government to use cotton it has al- ready acquired or will acquire shortly | through the cotton loans of the last year or so. - Here is how it works: Cotton is selling at 12 cents a pound, to which must be added 4'; cents for & processing tax and about 21, cents for wastage, or about 19 cents a pound when the cotton tex- tile mill buys it. Using a baie of cot- tor with 500 pounds as the unit, this | means a cost of $95 a bale to the | processor of cotton goods. “ Now add to that an item of $40 for | direct labor costs and another $15 for the cost of taxes, imsurance, and | | rule, for one day only, in order to re- | | price level. What’s What Behind News | In Capital Price-Cutting Days Back Again—Melting Mexican Coins Held Profitable. BY PAUL MALLON. HERE are indications that the good old natural laws of busi- ness competition (including oc- casional throat-cutting) have a way of surviving such man- made prohibitions as the N. R. A. provides. A recent unpublished experience in coal proved that coal code authorities of the Eastern Pennsylvania zone authorized a price cut. Armed with lower prices, the Eastern Pennsylvania men proceeded then to bid on a luscious $600,000 contract for a public utility, operating here in Washington. The Southern coal men found out about it at the last minute, just as they were about to lose the contract. They hastened to the N. R. A, de- manding approval of an emergency price cut in the Southern field to meet Pennsylvania competition. The N.R. A. balked at that because the rules re- | quire 10 days’ notice for such action. Reduced Price for Day. ‘The Southern people could not wait 10 days and were in no mood to think about rules. They did what most sane business men would have done. They reduced their price in violation of the tain the contraet. Next day they restored the original Since then a remarkable discovery | overhead. and you have $150 as the | direct cost of manufactyring that bale | of cotton in goods the coarser | kinds. But 500 pounds of cotton goods bring 30 cents a pound, or $150. 8o there is no profit in the transaction and many mills which cannot operate on close margins such as are involved | in the above calculation simply must\ g0 out of business. Japanese Labor Is $8. | It so happens that the item of labor | in Japan is $8. whereas in America | it is $40. Against such a ratio of | 5 to 1, the American textile mer- | chant cannot compete in world| markets, Indeed. the price is ebout | 22 cents a pound instead of 30 cents. | This differential of 8 cents a pound, or $40 on 500 pounds, is what causes | America to lose her outlets for selling | cotton goods The Lamport plan proposes an ex- periment, It is that the American manufacturer shall go ahead produc- | ing for the domestic market exactly | as he has been doing. which means | a cost of $150 on 500 pounds or & bale of cotton. But instead ,.f buyins. his cotton for $95 a bale, the Gov- ernment would sell it to him for much less. In order not to disturb the in- ternal price structure, the reduction | would be in the form of &.rebate. Thus for every bale of cotton bought from the Government at $95 a bale or 12 cents & pound—the domestic price | —the Government, upon receiving evi- | dence of shipment to a foreign coun- try of an equivalent amount of cot- ' ton goods, would pay back $35. This ' would make the textile manufac- turer’s cost $150 just the same, but the rebate of $35 wound enable him to absorb a large part of the labor item and leave him a margin for operation besides. A Direct Subsidy. In effect. it's a direct subsidy by the Government on account of the labor charge so that American labor | would not be reduced to the Japanese | standard and yet American labor would remain employed. . : For this reason labor leaders here are in favor of the plan and so are | textile manufacturers in the code authority, and it is believed the cot- | ton growers will indorse it, too. | The plan is a kind of cqunuuuon‘ fee and resembles some of the agri- | cultural equalization fee ideas which | came with the McNary-Haugen bill, of less than a decade ago, with respect | to farm products generally. i The idea is to begin with 500,000 | bales out of the Government’s supply of 5,500,000 bales. This means & book | cost to the Government of about $17,500,000, which is obtained by | multiplying 500.000 bales by an equal- | ization fee of about 7 cents a pound | of cotton, which is the approximate difference per pound between Japan- ese and American production cost. The theory is that if the 500,000 bales work out as planned—and a | market abroad for American cotton | goods at the 22-cent price or there- | abouts is said to be assured—the Government might gradually, over a period of three years, release in this | way into world trade the entire pres- ent surplus, and the average book loss would be about $58,000,000 for three years. Keeps Processing Tax. ‘The plan is being commended also because it involves no Treasury outlay, does not disturb the processing tax or the wage scales and is not dumping in any form, because it merely meets world competition on even grounds. By restoring American points of eontact with foreign sales, it is assumed that American quality. of goods will immediately increase the opportunity for American sales. Also, it is con- tended that increased production in America will be possible because of the increased purchasing power of textile labor and of other working people, who will be benefited by the increased volume of cotton merchan- dising. ‘The sponsors of the plan frankly concede it is an emergency device and not a permanent idea because the subsidy could not be continued in- definitely. It is aSsumed, however, that as world trade is restored the acquired momentum would take care of a larger and larger American pro- duction of cotton. Also, it is expected to lead to a better strategic situation for the making of reciprocal agree- ments in foreign trade. The beljef prevails in informed quarters here that the administration will adopt the Lamport plan or a solution modeled upon it within the next fortnight. (Copyright. 1935.) o Mexican Strike Averted. MEXICO, D. F., April 26 (A).—A scheduled strike on the Mexican rail- way operating between here and Vera *Cruz was averted at the last moment last night as workers agreed to accept the arbitration of President Cardenas. A general strike of the general work- ers’ union called for today, also. was abandoned as a result of settiement of the Tampico electric workers’ walkout. ‘ | the textile situation confidentially was made in a private meeting of coal code authorities here, A Pennsylvania operator arose and pointed out that the N. R. A. could not do anything to enforce the coal code price re- straints. He mentioned the fact that the act expires June 16 and the N. R. A. could not possibly get a prosecution in the courts before then. Another operator jumped up and e: claimed: “Then the coal price stru ture is dead!” There was an immediate stam- pede for the doors to get to the mearest telephone booths. The N. R. A. will not admit it officially, but some of their legal authorities concede that the re- strictions against price cutting may be ineffective from mow on. The good old days are here. Silver sharpers have noticed lately | that the price is now at the point where it will be profitable to melt Mexican coins and sell the base metal. You may expect to hear shortly that the Mexican government has taken steps to prevent such action, either by an embargo or otherwise. Melting of Rupees Profitable. Incidentally, the price is nearing the level where India’s rupees will offer a profitable enterprise for melters. . This is further evidence that we have done mare things affecting all the currencies of the world than Ger- many has done affecting world peace. The gold-bloc countries are being pushed off their perch. China has had to enact a silver tax to protect herself. However, it is not our fault primarily. England started it by depreciating sterling. Our steps were required for self-protection. It may all be straightened out some time in the next year or so when the | gold countries finally fall and open the way for an international stabiliza- ' tion conference. A report has been going around | that Mr. Hoover will shortly issue | a series of magazine articles on the banking crisis. The idea was he would show that the New Dealers did exactly what he had planned to do in closing the banks. | The only thing wrong with the report ig it is not true. Mr. Hoover l is preparing mo such articles. The “underwear census” idea may be dropped on a national scale, be- cause of too much publicity. How- ever, it now develops that the Bureau of Labor statistics has been using the same form of 3,316 questions in a quiet cost-of-living survey in 30 cities. Two hundred Government agents have been going around asking 7,000 families all those questions about what | they spend to live. Not a single agent has been murdered for thus taking up three to six hours of each housewife’s | time. This would be a monumental tribute | to the patience of 7,000 housewives, except for the fact that it is under- stood the agents did not attempt to ask some of the more intimate ques- tions, but contented themselves with a rough estimate. Huey is developing a bald spot on the back of his head. His friends ex- plain he has been thinking hard lately. | Near-Senator Holt of West Virginis is referred to among his colleagues as | Buddy Rodgers because he looks like that. He sits around the Senate every day in an ex-officio capacity, awaiting the time when he will be oid enough to take his seat. Textile Report May 15. The chbinet committee studying plans to nave a preliminary report May 15 covering emergency phases. Basic studies will require months. A “white-collar” project for Negroes is among projects to be financed from the new works relief program. It will embrace a study of Negro business op- portunities. Irate Townsend letters have been arriving at the rate of several hundred day at the White House since the administration social security program passed the House. The letter writers denounce the administration program. ‘They comprise one class of letter writers that has failed to make'a dent on Congress or the New Dealers, ‘There was a time when all the bond salesmen came from Harvard or Princeton, but it appears that, under the New Deal, they may come from the C. C. C. At least the Securities and Exchange Commissioner received a letter from a C. C. C. camp director asking for text books on the technique of bond selling. (Copyright 1935.) —_— Strike Opposes Talkies. Opposing the introduction of talkies, employes of all theaters in Osaka, Japan, recently went on strike. THE EVENING STAR, WASHINGTON, D. C, FRIDAY, APRIL 26, 1935. ' Walker- Smiles as He Studies Big Problem DEMOCRAT SPLIT SEEN BY COLBY Former Secretary of State Charges Party Is Making Nation Socialistic State. By the Associated Press. NEW YORK, April 26.—The Demo- cratic party was charged with making the Nation a socialistic state and en- veloping it “in & mesh of tyrannous and bureaucratic rule” in an address by Bainbridge Colby before the American Newspaper Publishers® Asso- clation, which ended its convention today. ‘The former Becretary of State said freedom of the press, often stressed at the convention, was not the only thing imperiled. Proposed legislation, he sald last night, would reduce the farmer to “the level of a serf” with the Secre- tary of Agriculture controlling every step from “sowing to consumption.” He gsserted the “bureaucrats” would be given power to make regulations and punish violators without going to court. Sees Split in Party, “As a Democrat,” Colby continued, “I would venture to remind the heady and nonchalant innovators of the! moment who are officiating as instru- ments of the Democratic party, and usurping its name, that the Govern- ment of the United States was estab- lished to get rid of arbitrary, discre- tionary executive power.” Saving the present administration has no counterpart save “the auto- cratic sway of unresisted dictator- ship,” he asserted: “The Democratic party cannot, nor will it, turn from legal regulation to executive regulation, from law to personal power, without rending itself in twain and divorcing from its ranks countless thousands.” He held “it is the counsel of fools or enemies of the United States that we should alter the fundamental form | of our society in order to solve eco- | nomic problems which would be easy | of solution if we would but cease our effort to abort and throttle estab- | lished economic law | People Getting Awake. ‘ He concluded with the statement | that the people “begin to see they | | are on the wreng track.” Dr. Glenn Frank, president of the | University of Wisconsin, told the pub- | lishers the United States still is in | | the shadow of the dictatorship threat. | “Less than at any time in human | history,” said Dr. Frank, “can we af- | ford to bully into silence the voice of | corrective criticism, intimidate minor- | ity opinion and give unquestioned right of way to the green dogmatisms | of politics and economics that sprout | so lavishly from the improvisings of | crisis-driven statesmen. | “And yet, this is what is happening the world around wherever the minds of men have been seduced | by the glamorous promises of dicta- torship. * ¢ ¢ “Even in the absence of deliberate intent, the exercise of emergency powers may * * * in a few swift months remake for a generation to| come the nature of a nation’s gov- | | ernment and the attitude of the peo- | ple_toward it. | ‘That is why ® ® ® the active and | responsible discharge of the critical | function is imperative.” Among the business before the pub- lishers today was the election of officers. 4 | Roosevelt Responsible. | Col. Frank Knox, publisher of the Chicago Daily News, told members of | the Coiumbia School of Journalism | | yesterday that President Roosevelt | should be held directly responsible for | attempts of his subordinates to limit freedom of the press. “Men like Tugwell and other brain trusters are trying to undermine the | | business side of the newspaper,” he explained later | He asserted the President, by main- | % taining them in office, had encouraged the enemies of the free press. Pay $200,000,000 for News. | Nation's newspapers spend | The and foreign news for their readers, Col. Robert R. McCormick, publisher of the Chicago Tribune, said yesterday. | Col. McCormick, who also is chairman | of the Freedom of the Press Commit- | tee of the American Newspaper Pub- | lishers’ Association, addressed the Ad- vertising Club of New York, and spoke at length on freedom of the press and on the newspaper code. | “The Associated Press” he said, *collects from its members and spends | $10,000,000 annually in collecting and delivering news to them. I estimate that the news gathering of all the for- eign services equal those of the As-| sociated Press, and the member pa- | pers spend at least 10 times as much | as the associations. i “Readers of the daily papers, there- | fore, have at their disposal news col- lected at a cost of $200,000,000 a ! year.” Oppose U. S. Ownership. The association approved yesterday | a resolution of its Trafic Committee | for the adoption of a stand “unalter- ably opposed” to Government owner- ship of railroads or any other form of transportation. In its annual report, the Traffic Committee reviewed its activities of the year in maintaining rate parities on newsprint, and E. M. Antrim of the Chicago Tribune, chairman, stated: “As predicted a year ago, Congress has been flooded with a deluge of | bills to regulate all forms of transpor- | tation.” The association took close note of trends of Federal legislation, and unanimously adopted reports of its Committee on Federal Laws, in which the following conclusion was stated: “There are many bills pending be- fore the present Congress affecting the newspaper business which may be enacted if prompt and vigorous pro- test to them is not made, and pub- lishers must be constantly alert and vigilant if their properties are not to be destroyed or irreparably injured.” WOMAN’S GOAL PRISON Extortion Note Written in Effort to Join Husband. DENVER, April 26 (#).—Mrs. Mary Catalina, 40, told .eo J. Crowley, United States commissioner, yester- day she wrote & $1,500 extortion let- ter in the hope she could join her husband in prison. “He is going to die pretty soon and I want to die too,” she said when she was arraigned. The note, Federal authorities said, was sent to Mrs. Lavina Creek, owner of the apartment house in which Mrs. Catalina lives. Mrs. Catalina’s husband, Pete, is serving a 10-year term in Leaven- worth Prison on & Mann-act charge. |Average Wage Will Be $50, | ing T | were chased from a wood by blood- Frank C. Walker alternately smiled and scowled today as he con- templated problems he confronts as head of the N. E. C,, in charge of the important Division of Applications and Information of the Work Relief Administration. WORK RELEF PAY WILL BE VARIED but Man in South May Get $20. By the Associated Press. An administration official dropped some hints today on what the man on relief may expect from the $4.-/ 880,000.000 works-relief drive Presi- dent Roosevelt is organizing. The official refused to be quoted by name, but he did depart some- what from the accepted Capital cus- tom these days of dismissing in- quiries with, “but the President hasn't announced his policy on that yet.” The hints: ‘There are now 2,500,000 families doing work. of one sort or another, for the Federal relief they get. The aim is to provide these, and 1,000,000 more to be taken off the “dole,” with work relief in the new drive. Locality Determines Pay, They will be paid. it was said, an “average” wage of $50 a month. In some Southern sections, where the cost of living and prevailing wages are called lower, they may get es little as $20 a month. In New York, they may get $100 from some types ! of activity. Wages will depend upon the geographic Jocation of the project. the type of skill required. and the wage rates prevailing in private lines. They will receive more money than they are getting now, but not so much as private industry is paying, except in some scattered instances where, the official said, private industry isn't pay- a “living wage.” hey will be employed on projects officially described as of a higher type | than some in the past. Probably there will be less ‘boon-doggling.” (“I'd like to shoot the man who coined that name,” the official commented.) More Continuous Work. ‘They will have more continuous | employment, in many instances work- | ing full time. ‘The 3.500,000 work relief figure will not be constant. The relief load rises to & peak in the late Winter and dips in the late Summer. The pro- ram may provide jobs for 2,500,000 when it is put in operation July 1, and for 4,500,000 by next March, the official said. ‘The word here is that at least 90 per cent of the workers on projects | $200,000,000 a year obtaining domestic | will be selected from relief rolls to do work in which they are best skilled. Perhaps 10 per cent will be hired from outside relef rofils in supervisory ca-' pacities. | “It looks to me as though that is | the way it shapes up,” the official concluded. “Of course, the Presi- cent hasn’t announced his policy on these things yet.” = Awaits President’s Plan. ‘Throughout the Capital, heads of | Government agencies were awaiting | further statements of the President's | plans, Most of these agencies have “back- logs” of projects or plans which they lioped might come within the scope ot the requirements which the Presi- dent, the National Emergency Coun- ! cil and the new Allotment Board are | cxpected to lay down soon. But first they wanted to know par- ticulars. How much money must go | for labor, and how much can be spent on materials? How close to & iarge relief center must a project be kefore it qualifies? Will the road- building program consist merely of a distribution of funds to State highway departments, or will the Government build some high-speed transcontinental “parkways.” How much “boon-doggling” will be per- mitted? 4 CONVICTS CAPTURED One Texan Takes Refuge in Steeple, Another at Museum. HOUSTON, Tex., April 26 (P)— Two convicts, the last of four who made a daring escape from the Sugarland Prison Farm, were cap- tured here yesterday. Ralph King, 31, was arrested on the lawn of the Museum of Fine Arts | nere by Capt. Buck Flanagan, mana- ger of the farm. David Cates, 28, fled to St. Paul's Methodist Church while Flanagan was taking King, and took refuge in the steeple. He sur- rendered there to city detectives. Coy Adams, 18, and Robert Stewart, 24, were arrested last night after they LOYAL TO HER FAITH Duchess of Kent Worships Alone at London Greek Church. LONDON, April 26 (#).—The Duchess of Kent, the former Princess Marina of Greece, who moved this week into ner new home in London, is deter-| mined to remain an active member of the Greek Orthodox Church. She went alone yesterday to Lon- don’s only Greek church on the eve of the Greek Good Fridey. For nearly three hours she sat in an attitude of devotion while priests chanted. She Roosevelt Selects Hopkins To Supply New Works Jobs He is shown studying a plan to be presented soon and ex- | plaining a portion of the proposed set-up. EXTENSION ASKED INPRESENTN.R.A. Clark Wants New Act Delay Until After Courts Give Decisions. By the Associated Press. Starting to draft a new N. R. A. | bill, the Senate Finance Committee today ran into a demand for tem- | porary extension of the present re- |covery law so the next session of Congress could deal with the prob- lem after Supreme Court decisions on_its constitutionality. | The demand came from Senator | Clark, Democrat of Missouri, but the | committee took no action [ | Chairman Harrison said he would | introduce, probably today, a series of | amendments to the administration bill. They were understood to deal | with some of the most controversial points such as reflaxation of the anti- | trust laws and price fixing | A prediction was made by Harrison | that section 7 (A) of the law, pro- | tecting the right of labor to organize, | would be extended in its present form. Senate May Pass Bill First. Authoritative sources reported to- day that President Roosevelt is will- img that the Senate pass the N. R. A. e s Bwi extension bill first in an effort to _Hlm’ Ewing Pho‘j{'_ ‘quell threatening unrest in the House | For months many House members WORNES LEADER | —and without amendments. They complained, for instance, that after the House had passed the work-relief bill the Senate debated it a long time and made changes, thereby gain- (Contirued From First Page) | farm organizations, and the Amer- | spending | Crossing Elimination—yet to be named. recommendations designed to keep the actual work of the great majority of projects located as close to the homes of the workers as possible.” President Roosevelt arranged today for a talk with Thomas MacDonald, chief of the Bureau of Public Roads, who will be in charge of highway con- | struction and grade crossing elimina- | tion. ‘Walker Setting Up Division. Meanwhile, Walker, new head of the Division of Information and Applica- tions, sought to complete facilities ;fm' receiving applications within 10 days. A high official, who asked that his name not be used, said all applica- tions for allotments will be received at this division and that all delega- tions from out of the city probably will be expected to confer with con- sultants mairtained there. The official said out-of-town dele- gations and persons seeking specific information concerning projects might desire to call upon the individual agency involied. “For example.” he said. “if some one wishes to file an application for & rural electrification project. that person might desire to confer with the head of the rural electrification division for necessary information | concerning the application before submitting it to us. | Consultants to Be Available. “However, we hope that we will be able to supply the State directors with the information, and we hope | to have consultants in this office to confer with applicants, and thereby relieve other agencies of the neces- sity for direct contact with applicants. “It is to be remembered that these questions are not definitely settled yet, but we hope to have our machin- ry worked out and in operation within a week or 10 days.” Probably no announcement will be made of incomplete applications or other applications which for some reason are not received formally. but which are returned to the applicant | for correction or change, it was said. Hopkins, who became the New Deal's ace spender by passing out | $3,000.000,000 in relief and C. W. A. grants the last two years, cancelled a scheduled speaking trip to Chi- cago to attend tonight's conference at the White House. Why Kennedy, West and Morgen- thau were included was not ex- plained. Some observers wondered if the President might talk over with them some of the points he intends to cover in an address to the Na- tion at 10 p.m. Sunday, regarding the work-relief program. Meanwhile, Congress was watched closely for its reaction to appoint- ment of Secretary Ickes as_chair- man of the Works Allotment Board. Some Congress members have ac- cused Ickes of being discourteous and arrogant toward them and have ar- gued that he has been too slow in the $3,300,000,000 appro- priated for public works two years | ago. A congressional controversy over his request for a $10,000-a-year un- dersecretary was in progress even as the President announced his ap- pointment. | Ickes Backs Lewis’ Bill. | Remarks by Secretary Ickes, and the terms of a bill introduced by Senator Lewis, Democrat of Illinois, provided an indication of expecta- tions that extensive public works may be planned as a long-time policy. Ickes said at his press conference yesterday that some projects requir- ing several years to build might re- ceive enough work-relief money to | carry them forward for one year, with officials trusting “to the future Ior‘ the rest of it.” The Interior Secretary said he was | % strongly for Senator Lewis' bill, which | would change the name of the In-| terior Department to the “Department | of Conservation and Public Works.” Allotment Board Formed. ‘The make-up of the Allotment Board | as announced by the President last| night was: Secretary Ickes. Secretary Wallace. Secretary Perkins, Frank C. Walker. The director of the Progress Divi- sion—yet to be chosen. ‘The director of procurement—Rear Admiral Christian J. Peoples. “ The budget director—Daniel W. Bell. ‘The chief of Army engineers—Maj. Gen. Edward M. Markham. The commissioner of reclamation— Elwood Mead. The director of soil erosion—Hughh H. Bennett. The chief of the Forest Service—®. A. Silcox. ‘The director of emergency conserva- tion work—Robert Fechner. The chief of the Bureau of Public Roads—Thomas H. MacDonald. The director of rural resettlement— Rexford G. Tugwell. The director of rural electrificar tion—yet to be named. The chief of the Division of Grade The director of relief—some person % be chosen by Hopkins to serve in his stead. ‘The chief of the Urban Housing Division—Col. Horatio B. Hackett. Kendall Slated for Post. A representative of the business ican Bankers' Association, all yet to controversial administration bills first ,on by the Emergency Council to the ! | of direct labor will have been certi- be selected. ! The presidential statement said the applications for works projects would be received by the Emergency Coun- cil, studied by the agencles under which they properly fell, and passed Foes Ready to Block Plan for $10,000-a-Year | Undersecretary. Allotment Board for final action. “In other words," the White House statement sald, “the estimates of cost will have been checked. the length of time necessary for completion will have been passed on, the number of rersons from the relief rolls who can be employed in each vicinity, or to put it another way, the percentage By the Associated Press. ! A new congressional movement against Secretary Ickes bubbled with such intensity yesterday that House administration leaders—fearful of de- feat—decided against openly trying to use their influence in his behalf. The question that reopened .he feud | between the Secretary of the Interior and Congress was this: Should he be allowed a $10,000-a-year undersecre- | tary? But beneath the dispute was the little disguised feeling that Ickes has not treated House members with proper courtesy, thus hurting their fled, the proportion of self-liquidat- ing projects to the whole number will have been studied and the econ- emic justification determined. “With all this information in its possession, the Works Allotment Di- vision will be able to recommend the projects to the President by dis- tricts for his approval.” The announcement came after long talks by the President with Ickes and Hopkins. acting Democratic floor leader, had TOKIO PACT AGAIN gt s, i a work to justify an undersecretary. Non-Aggression Treaty Overtures Why he’s got a bigger job than any Secretary of Interior ever had. Some Due When One With Paris Is Completed. recommendations for P. W. A. projects and jobs, thus hurting them politi- cally. epresentative Taylor of Colorado, folks in the House might want to hit at him, but I think we’ll give him the undersecretary.” On the other side of the fence was Representative Woodrum. Democrat, | of Virginia, who expressed his view in this langua “First, I'm against increasing the size of bureaucratic agencies. That is my basic objection. And I think that Ickes' record is all right, but I think he has shown an utterly stupid a tude toward members of Congres I'm going to fight as hard as I can against that new job.” The showdown will come next week, when the House is asked to act on the ofll appropriating money to run the Interior Department next year. g | By the Associated Press. | LONDON, April 26 — Diplomatic quarters said today that they under- stood Russia planned to renew its ef- forts to get Japan to sign a non- aggression pact immediately after the completion of the Franco-Soviet treaty. Reports reaching here from conti- nental and Far Eastern quarters said Japan appears to be in a more re- ' ceptive mood than previously, heart- ening Moscow considerably. | advisory council — probably Harry. Kendall, head of the council. . Representatives of organised laber, L] The British are giving this turn of events between the two countries con- siderable study, but it was stated that there has been no mediation on the part of this government. The Soviets were reported to be feeling so concerned over the con- tinued uncertamnty of the European situation that they wish to push a Far Eastern treaty as quickly as pos- sible and are hopeful of success this time, although Japan declined such & pact about a year ago. LITHUANIA PROTEST PLANNED BY POWER Britain, France and Italy May Ask League Action Regard. ing Memel Issue. By the Associated Press. LONDON, April 26.—Informed quar- ters said today that Great Britain, France and Italy are planning to ap- peal to the League of Nations for ac- tion against Lithuania unless that | country agrees to the recommenda- tions contained in the powers’ recent note regarding Memel. The nations concerned are seeking a quick reply to the note, in which it was asserted that German residents in Memel should be given their proper share in the Memel directorate but, thus far, Lithuania has not indicated | when she will reply or what she will y. ‘The powers have given Lithuania a broad hint that action by the League of Nations will follow if their recom- mendations are not accepted, it was stated, although it was said that the powers have not yet decided what could be done to force reforms in Memel should Lithuania fail to an- swer satisfactorily. SCHULTZ JURY OUT Beer Baron's Income Tax Soon to Be Decided. SYRACUSE, N. Y., April 26 (®.— The fate of Arthur (Dutch Schultz) Flegenheimer, who allegedly made millions from the illicit beer business in the Bronx, was placed today in the hands of a Federal jury instructed by the court to weigh two questions: Did he have an income of more than $1,900 for each of the years 1929, 1930 and 19312 And if so, did he willfully evade payment of income taxes? James H. Noonan, defense counsel, told the jurors that when his client learned he was expected to give the Government its share from his illicit enterprise, he immediately made fran- tic efforts to do so. Case He had withheld making tax re- |' turns. Noonan said, because he heeded the advice of an attorney. Sparrow Fires Home. COUNCIL BLUFFS, Iowa (#)—It| was a firebird, not a firebug. that fired the hohme of Mrs. Babel Gal- lagher of Council Bluffs. Pire Chief J. N. Cochran said the blaze was started by a sparrow carrying lighted m.m- into its nest § Whe aitic. QUINTUPLETS SOON - TO GET NEW NURSES | Sisters of Religious Order Will | Replace Those Now on Duty, Guardian Says. Br the Associated Press. NORTH BAY, Ontario. April 26— |Judge J. A. Valin announced today that sisters of a religious order, as | yet not named, would replace the | nurses who have cared for the Dionne | quintuplets since shortly after their birth. The changes are to be made at the | |end of May. | Judge Valin, who recently was ap- pointed one of the babfes' guardians, | said Mme. Luise de Kiriline had asked to be relieved of her duties as nurse. The judge, living in retirement here, was named as one of the guardians to the quintuplets by the Ontario ! government's legislation making the children wards of the King. Th other guardians are Dr. A. R. Dafoe, | | the physician to the infants, and | | Oliva Dionne, the father. | | Mme. de Kiriline is head nurse at | the hospital and is assisted bY| Yvorne Leroux and Patricia Mullins. 'MELLON TAX CASE TO RECESS FRIDAY \Inqniry.’l‘hen to Come to Capital to Hear Witnesses on Art Collection. | | | By the Associated Press. PITTSBURGH, April 26.—Ernest H. Van Fossan, presiding member of the | Board of Tax Appeals hearing An- drew W. Mellon's income tax case, said | today sessions would be completed in | Pittsburgh next Friday after 11 full weeks of testimony and arguments. | A week's recess will follow before the hearing is transferred for resump- tion in Washington, where witnesses | are to be heard concerning the valu | tion of the financier’s vast art collec- tion. ‘This morning’s session was devoted to completing odds and ends in the | complicated McClintic-Marshall-Beth- | lehem Steel merger. Mellon owned a | 30 per cent interest in McClintic Mar- | shall and the Government claims he should have paid about $1,000.000 in taxes on profits derived from the deal. Ralph C. Pettinger, former McClin- tic-Marshall employe, and Paul G. Rodenwald, attorney for McClintic- Marshall, were witnesses today. Hyland Wins $1,000 Suit. LOS ANGELES, April 26 (®).— Richard Hyland, former Stanford University foot ball player, won & $1,000 judgment yesterday against his | | former wife, Adela Rogers St. John | Hyland, writer, who failed to appear | to contest Hyland's suit. The former | foot ball player sued on a promissory note given him by Mrs. Hyland last | October. | . ¢ ing some prestige. in the eyes of those who wanted to see the changes made. Today. however, administration sup- porters, who asked that their names not be published, said Mr. Roosevelt had no objection to a reversal of that procedure. Under the reversed plan, the Senate would act first on the bill extending the life of N. R. A, and the House could then rewrite the measure. That understanding indicated a lot of rewriting was in_store. Harrison said he hoped the Fi: nance Committee would finish its work next week so the measure could be brought to the Senate floor promptly The House Ways and Means Com- mittee—before which the adminis- traticn’s N. R. A. bill is pending— marked time. Chairman Doughton said he hoped the Senate would act on N. R. A. before the House. Treasury Wants Action. It was generally believed that Doughton’s idea was to wait until next week to see what progress the | self-respect; that he has ignored ther Stnate committee was making before starting the House committee ol other pending legislation. The Treas~ ury was pressing for prompt action on its anti-smuggling bill. which would let the President extend customs ene forcement areas bevond the present 12-mile limit as a move against rum- runners. The strategists, said to have per- suaded the President to let the Senate act first on N. R. A.. pointed out that in addition to the $4.830.000.000 bili, the House had to pass first all of the aine regular annual appropriations measures. the social security bill and tax legislation. RUSSIA SEES SUCCESS FOR NEW FRENCH PACT Early Conclusion of Mutual As- sistance Agreement Expected in Moscow. Br the Associated Press MOSCOW. April 26.—Official Soviet circles appeared optimistic today over possibilities for early the projected Franco-Russian mutual assistance pact New instructions concerning the negotiations were telegraphed last night to Viadimir Potemkin, Soviet Ambassader to France, but their con- tents were not made public. Govern- ment officials, however, indicated they regarded the Soviet's latest move in the long-pending discussions as likely to smooth over the difficulties which led to their interruption, They said a definite decision may be expected soon. conclusion of ICongrcss in Brief t TODAY. Senate. Debates motion to take up anti- lynching bill. Munitions Committee hears Donald R. Richberg and Francis Biddle on Colt Firearms Co. strike. House. - Takes up naval appropriation bill for amendment. YESTERDAY. Senate. Southern Senators filibustered against anti-lynching bill. Recelved Harrison bonus bill. House, Finished debating Navy appropria- tion bill. TOMORROW. Senate. Probably will not be in session. « « « the cartoon adven- tures of MR, and MRS. « « « They argue about everything . . . but it’s all in fun. See Section C, Page 5