Evening Star Newspaper, June 11, 1935, Page 2

GUFFEY MEASURE IS TERMED INVALID Use of Taxing Power for Coercion Consistently Barred by Court. BY DAVID LAWRENCE. A strike in the coal fields of the Nation threatens—and & bill which violates the Constitution of the United States has been proposed for passage by Congress as & means of averting the strike.” ' Such a situation is unprecedented in American history. But, with' the moral support of* President Roosevelt and his leaders in the Senate and House, it 1s being assumed here that the so-called Guffey bill, sponsored by Senator Guffey of Pennsylvania, Democrat, will be adopted. ‘The measure involves a principle that has been time and again re- | Jected by the courts. It provides for the use of the taxing power as a means of coercing a group of citizens to accept Federal regulation when such regulation is, indeed, not sanc- ! tione¢ by the commerce clause of | the Constitution Guffey Bill Provision. ‘The Guffey bill provides: ““There is hereby imposed upon the sale or other disposal of all bitumi- | nous coal produced within the United States a tax of 25 per cent on the | sale price or fair market value of | such coal at the mine, such tax to be | paid the United States by the pro- ducers of such coal, and to be payable monthly for each calendar month, on ar before the first business day of the second succeeding month, and under such regulations, and in such man- ner, as shall be prescribed by the commissioner of internal revenue, and “Provided, further, that any such coal producer who has filed with the | National Bituminous Coal Commis- sion his acceptance of the code pro- | vided in section 4 of this act, and who acts in full compliance with the pro- visions of such code, shall be entitled | to & drawback equivalent to 99 per | ¢ext of the amount of such tax, to be | allowed and deducted therefrom at the time of payment in such manner &s shall be prescribed by the commis- sloner of internal revenue. “Such right or benefit of drawback | ghall begin upon the producer’s filing | with the commission his acceptance ©f said code in such form of agree- ment as the commission may pre- Code Gives Tax Immunity. In brief, this merely means that the coal operators who accept a code which binds them to permit a Fed- eral commission to fix maximum prices and virtually to dictate labor rules be immune from a 25 per cent tax, while their competitors who dis- gent will be subject to the tax ;. Here is what the Supreme Court of United States said in its ruling dent on a similar effort to.use texing power to prevent e ucts of child labar from mofing into interstate commerce, the tax being imposed as a sort of penalty: “Out of a proper respect for the scts of a co-ordinate branch of the Government, this court has gone far to sustain taxing acts as such, even ¥h there has been ground §for cting, from the weight of the it was intended to destroy its ject. But in the act before wus | {8k presumption of validity cannot | g\mfl because the proof of the con- ry is found on the very face of its | Pprovisions. #Grant the validity of this law, and @1l that Congress would need to do hereafter, in seeking to take over to 18 control any one of the great num- ber of subjects of public interest, Jurisdiction of which the States have :g:leer parted with, and which are rved to them by the tenth amend- #Ment, would be to enact a detailed measure of complete regulation of the subject and enforce it by a so- ealled tax on departures from it. To e such magic to the word ‘tax’ uld be to break down all constitu- tnal limitation of the powers of Gongress and completely wipe out the ivereignty of the States.” Acceptance Held Voluntary. ~The foregoing would seem to apply €Xactly to the provisions of the Guffey bill, though its defenders claim to Have phrased their bill so as to make 1% unobjectionable, because the code agceptance is made voluntary. On the other hand, failure to accept the ge provisions means a compulsory f the principle in the Guffey bill ‘were sanctioned as to coal, then the récent N. R. A. decision by the Su- preme Court would be meaningless. For the Congress could pass a law putting a prohibitive tax on any busi- ness- which did not subscribe to and obey the provisions of a Federal code. e N. R. A. would then be revived ofernight. »Just why the Guffey bill has gained sjch momentum in the face of the fact that it is so plainly uncon- sfitutional is difficult to understand. ‘The coal business is a sick industry, blit the Supreme Court has said that mining and the production of coal cbuld not be brought under the com- merce clause of the Constitution, and now it is apparent that efforts to bring it in under the taxing power will also fail. : (Copyright, 1935.) [ WOMAN’S TRIAL SET ALICE, Tex, June 11 (#).—Ex- trial was set for today for Mrs. H. L. Morrissey, who is with the fatal shooting of her husband in & Catholic church here, where they had gone to pray over marital troubles. What’s What Behind News In Capital War of Headlines Is , On, But Troops Move by Different Routes. BY PAUL MALLON. HE war of headlines is on again in the Mediterranean and the Far East. Big Gun Mussolini is firing blank cartridges at Britain. The Japanese are going him one better in Tokio, leveling a diplomatic barrage over the heads of the entire world. But, if you will notice, their troops are moving in ‘a direction opposite to their words. Mussolini’s are getting ready to grab the rest of Ethiopia; the Japanese are mov= ing to demoralize a growing resist- ance to their domination in China. The guiding spirits of American diplomacy are silent but unexcited. They have catalogued both steps defi- nitely in their own minds as further “bulldozing diplomacy.” Hitler Out for Colonies. Herr Hitler is making similar bull- dozing threats against Russia. His purpose is precisely the same as that of the Italians and Japanese. He wants to frighten the world into silence while he prepares the way for colonial expansion eastward. Although you hear little about it in this country | now, you will later. The Reds have | beccme so excited they can almost hear the Nazi legions goose-stepping eastward to the strains of “Horst | Wessel,” which sounds as if it might | be a horse whistle, but isn't. Even diplomats have to smile when they think of the latest of Hitler's| moves. He turned s honeymoon into a diplomatic threat. The honeymoon was not his, but that of his first lieu- terant, Gen. Goering. The general was sent off to lead his bride in the same direction which may | some day be taken by the great Ger- | man air force which he built up. The honeymoon party included two secre- taries of aviation and confidential offi- cials from several ministries, as well as Prince Philip of Hesse, a brother- | in-law of the King of Bulgaria. Inci- dentally, the bride aiso went along. ‘The hcneymoon party visited all the countries which Germany is trying to win over. It is not the first time that Mars has been disguised as Cupid. War Coming, But Net Now. No authori’ - here doubts that all these steps are more or less important incidents leading up to war. Neither is there any doubt that a major war will be avoided for the present. Japan will extend her empire through China by degreés. The Soviet will not fight; both Britain and the United. States are too busy. Mussolini will crush Ethiopia and extend his imperial colonization there. Britain will not like it, because it places him more threateningly on the trade route to India, but will not cause a war. Hitler will absorb and colonize the | states to the east toward Russia. The Reds will view with alarm, but keep their swords in their scabbards. Hoover Talk Discounted. ‘There continues to be much gossip about Mr. Hoover’s being the power behind the “grass roots” convention; about the Hoover crowd getting back into the party saddle; about Mr. Hoover himself as a candidate next year. These popular gossip notiong are not shared by the Republican jong- rangers viewing the situation from Washington. As nearly all of ghem see it, Mr. Hoover is a titular ).ader without a substantial personal follow- ing; a good liaison man who can talk to every Pepublican leader about prin- ciples, but who cannot count on their support for the next Republican nom- ination; an acting leader pending the selection of another. As far as Re- publicans in Washington are con- cerned, there isn’t any strictly “Hoover crowd.” Recovery, Gold-Emboss,g, A new gold-embossed idea has Deen placed confidentially on the ggsks of the foremost New Dealers by “The Committee for Economic Recovery.” This is the committee of business men who have been co-operating un- officially with the New Deal. You may recall that the committpe submitted an extepsive Tecovery plan several weeks ago in a lavishiy prepared, leather-bound blue book, on which the ROOSEVELT'S NOTE| | Figure in Kidnaping Arrest | BACKS UTILITY BILL Message Read in Senate. in Effort to Block Amend- ments. By tha Associated Press. tor Dieterich, Amendments by Democrat, of Tlinols to “take the death " out of the bill to abol- ish pul utility holding companies were met in the Senate today by a message from President Roosevelt de- claring such a move was “contrary to my wishes.” The brief penciled memorandum of the President was read into the rec- ord by Senator Wheeler, Democrat, of Montana, ih charge of the bill,*in an effort to beat off the proposal of Dieterich to strike out entirely the sections providing for elimination in five to seven years of all public utility holding combanies deemed “‘unessen- tial” to the utility business. “A vote for the Dieterich amend- ments is a vote to kill the bill,” Sen- ator Wheeler shouted to the Senate, adding it is “‘a vote for the power lob- byists in the galleries.” Nationalization Charged. From scowling Senator Dieterich, however, came the assertion that the bill was intended to nationalize the public utility industry. “There is no question what the pur- pose of this bill is,” he declared as he opened the debate on his amendments under a time limit whieh required | them to be disposed of by 4 p.m. “This bill, instead of being a regu- latory messure, instead eof correcting evils of the holding company system, is an effort. toward public control of all the utilicdes in the United States.” Senator Wheeler, Democrat, of Mon- tana predicted the bill would go through virtually unchanged. Wheel- er, a co-author of the measure, has | led the fight for it. Young Denies Oppeosition. A new development in the situation was a declaration by Owen D, Young, chairman of the General Electric Co., declaring “the holding company is a very useful instrument.” In a letter made public last night, Young said Wheeler had misquoted him. Declaring Wheeler had quoted him as saying in effect that “there is not any excuse for the tremendous loss involved ir the holding companies system,” and that there is no excuse for their existence, Young said, this did not state his opinion fairly “I see no more reason for abolish- ing the nolding company merely be- cause abuses have crept into its op- eration than I do for abolishing the automobile because of the disasters which have come from reckless driv- ing,” Young's letter said. “The im- portant thing is to restrain and cor- rect the abuses and not to abolish the useful instrument.” Long Charges Exemptions. Charges by Senator Long, Demo- crat, of Louisiana that the adminis- tration had approved exemption of the Standard Oil Co. and' the Mellon in- terests from operation of the bill flared out during yesterday's debate. Senator Wheeler said the two inter- ests were exempted because their con- nection with the power and gas busi- ness affected by the measure was “only incidental” to their main line| of activity. Wheeler's insistence he was not seeking to include all holding com- panies of all industries brought the Louisianan to his feet with flailing arms. “This bill has been already too much compromised,” Long said, and then topped that with an assertion that President Roosevelt was wilfully permitting the Tennessee Valley Au- thority amendments to be held up in the House. ‘Wheeler Amendments Hit. Dr. Hugh 8. Magill, president of the erican Federation of Utility In- vestors, “only a twig of poison ivy.” If Wheeler “has succeeded in per- suading the President to share his | views on the Wheeler utility bill,” he added, “Democrats owe no party alle- giance to the measure which violates the spirit and the letter of the Dem- ocratic platiorm of '32 and is com- pletely in harmony with the Socialist platform.” He asserted the bill was “part and parcel” of a “deliberate scheme so to disrupt and deflate utility values and utility service as to render them help- less prey of public ownership politi- cians.” ‘Wheeler, he said, “is only following the La Follette piatform of 1924 when he boited the Democratic party to run for Vice President on a pledge for Federal ownership of all utilities.” MISTRIAL ORDERED name of each New-Deal recipient was ‘The latest confidential tome is & second edition of the first and con- tains an interesting proposal for a New-Deal cotton program. What it ‘wants primarily is a reduction to 10 cents of loans on 1935-36 crops; retention of the present processing tax; announce- ment that the Govermment will dispose of cotton mow om hand; a quick announcement of policy from the A. A. A. As a BB i ] IN ZIMMERLY CASE Woman Juror Collapses at Sight of Clothes Believed Worn by Missing Woman. woman juror who collapsed at sight of clothes believed to have been worn by the missing Gladys Lawson, was or- Cered today in the trial of Dr. H. C. Zimmerly, accused of having pew formed illegal operations upon tvo ‘women. ‘The State had charged that he per- formed an illegal operation upon M.s. Lawson, an attractive biond from Cal- vert, Md., whe disappeared mysterious- ly on March 16. That he performed a | Copyright, A. P. Wirephotos. Upper: who received and identified ransom Harmon M. Waley and his wife Margaret, who confessed participation in the Weyerhaeuser kidnaping. Center: Edythe Morley (left), a clerk, and Marion Samuel, cashier, bills in a chain store at Salt Lake City, that led to the arrest of the Waleys. Lower: Two officers called by the store employes, leading to the arrest of the Weleys. Left to right: Patrolman L. B. Gifford and Detective -— ‘W. M. Rogers. Kidnaping (Continued Prom Pirst Page.) agents. who arrived by airplane during of locating a possible hideout of the 32-year-old bank robber. It was in that city that police recovered $15,155 of the kidnap ransom money from a motor car Mahan abandoned Sunday. Early today agents returned to Butte from Dillon, Mont., after check- ing reports that a man resembling Mahan had been seen there yesterday. They were unable to find a trace of the man. The search in Southeastern Wash- ington was prompted by reports that & man answering Mahan's description had been seen at Dayton and later at Pasco. Guards Placed on Roads. California, Nevada and Arizona of- ficers joined forces in seeking to trap a green motor car, containing the two men and woman. It was seen yester- day 40 miles below Las Vegas, Nev. Sheriff Emmett Shay of San Ber- pardino County, Calif., who swore in additional men early today, said guards had been posted on as many roads as possible in the area bounded by Needles on the south, Boulder City on the north, the Colorado River on, the east and Nipton, Calif., on the west. I-h‘rmon M. Waley, 24-year-old ex- i Bils g 2 -E5E ABUSE OF PAROLE Am | 1 last night denounced the | the night, officers conducted a house- | amendments offered by Wheeler as | to-house search at Butte in the hopes | : an “olive branch” which, he said, was | Cummings Encouraged to Probe Men Accused in Weyerhaeuser Case. By the Associated Press. HYDE PARK, N. Y, June 11.—The renewed weight of President Roose- velt'’s influence was behind efforts to prevent parole abuses today—an in- cidental result of the Weyerhaeuser kidnaping case. Praising the Bureau of Investiga- tion’s study of criminal records of two men accused in the abduction— |one a paroled robber and the other en ex-convict—the President tele- graphed Attorney General Cum- mings, in part: e “Every decent citizen is interested in humane parole systems which seek rehabilitation of offenders, but at the same time we should seek to prevent Falls Church Voting. FALLS CHURCH, Va, June 11 (Special).—R. E. Ankers, first ward; G. Smith and G. E. Vi B al £ B3 idsex g E i : f%;'f z 2 i ] i $4,675.440 ASKED 10 CHECK ALIENS| Labor Department Proposes Sum Be Allotted From Work-Relief Fund. ¥ t §E i i 7 and insect bites, the committee recom- mended $25,000,000 for the Soil Con- servation Service and $13,827,500 for Service. partment for yards and docks and $1,215,772 for Army base construction. The Labor Department estimated $3,343,780 would be required to com- pile an index of immigrants and naturalized aliens. Copying court records would provide work through- out the country, it was said. Officials said this census not only was needed because records which were invaluable for historians were be- ing lost, but for practical use in checking applications for naturaliza- tion. To Trace Tllegal Aliens. ‘The application also included $1,- 224,500 to find out what has become of foreigners who entered the country without obtaining permission to take up permanent residence, and $1,107,180 as the first step in strengthening the border patrol against {llegal en- tries. The patrol would be increased by 1,100 men, chosen either from former Civilian Conservation Corps members or older “of in- telligence who are in good physical | condition, but somewhat advanced in years.” ‘The Labor Department said present forces were inadequuate, and that it planned to use extra forces to deter- mine the effectiveness of watch towers | and fences in certain congested areas. Some temporary aides would be con- sidered for permanent employment. Among the aliens who have entered the United States under temporary permits are seamen, students, treaty merchants, servants and employes of Tepresentatives of other countries, min- isters, teachers and goyernment offi- cials. The number who have over- stayed their permits is not known ex- relief would be required to show their papers to investigators. ROOSEVELT ASKED TO OUST STIRLING League for Peace Charges Ad- miral Is Inciting War on Russia. By the Associated Press. The Women’s International League for Peace and Freedom, contending Rear Admiral Yates Stirling, jr. had implied & “world war against Russia * * * would be wise and advisable,” has called on President Roosevelt to dismiss him. In another protest against a recent newspaper article by the who is commander of the 3d Naval District, with headquarters in New York, Prederick J. Libby, executive secretary of the National Council for Prevention of War, telegraphed the President asking if Stirling was “per- mitted by present naval regulations to incite to war.” He called part of the article “pernicious propaganda.” Navy officials here said no one ex- cept Secretary Swanson was author- ized to speak for the department, but that officers were permitted to express their personal views. The letter from the International League, signed by Dorothy Detser, na- tional secretary, said Stirling had sug- gested the need of “a leader ‘who will have the eloquence, appeal and driving power’ to bind together the discordant publicly reprimanded by you and re- moved from office?” by the NATIONAL SAFETY COUNCIL M actly, it was said, while all aliens on true thet the Public Utilities Com- | | gt § i -3 [ % E £ it ;gé!? el el rrpranmy ’éggsfigfi A ity i g Goes on Trial FACES CHARGES IN 1933 KANSAS CITY KILLINGS. Copyright, A. P. Wirephoto. ADAM RICHETTI, One-time associate of the late gun- man, Charles “Pretty Boy” Floyd, shown in court at Kamsas City as he went on trial for his life for the Union Station siayings of 1933 . Taxicabs (Contirued Prom Pirst Page.) Diamond Cab and the union cab com- panies and appealed to the press gal- lery to do a good act for the citizens and the city’s guests by publishing the | names of the cab companies that have refused to join in a conspiracy to hi- jack the city's guests. He named the following: Bell, Blue Light, American, City, Premlier, Highland, General, Minute and Yellow Cab Cos. Threats of Violence. Nichols charged that Diamond cabs have forced other cabs into the curb and have threatened bodily violence to the drivers. Nichols explained that there were only 22 out of 3,800 taxi- cabs which can legally raise their rates, because they had properly filed notice 10 days previously with the Public Utilities Commission. he was denouncing the taxicabs for bocsting the rates on the Shriners, Representative Blanton, Democrat, of Texas called attention that this in- justice is also levied against some 20,- 000 visitors and that outside of the 22 cabs that legally filed notice, all other cabs are today operating ille- gally. Representative Rankin, Democrat, asked Nichols if it is not mission “is in on this conspiracy.” Nichols replied that the Public Utilities Commission and the Com- missioners by their lpvm‘vhll ::1 $E agreement yesterday have allow: e Capital’s visitors to be hijacked. Quoting the public utility law and regulation, Nichols emphasized that there can be no increase in rate schedules except on 10 day's notice. ted out that the only excep- to the 10-day requirement under law is in the event that any com- pany wished to reduce its rates when the Comissioners might agree. Meanwhile, after conferences with Representatives = Nichols, May and Rankin, Representative Blanton be- gan drafting s resolution expected to | demand that the Public Utilities Com- mission rescind any order or agree- ment on the increased rates and that it either revoke licenses or impose fines unless the operators return to their posted schedule of rates. Neo Official Action. Informed of Representative Nichols’ statement, Vice Chairman Keech of the Public Utilities Comission said his body had taken no official action, pointing out that in {its statement yesterday it merely said it would per- mit filing of rates of 20, 40, 60 and 80 cents. Accompanying this action, however, the commission tacitly agreed that such rates would be effective immedi- ately. Keech explained that mem- bers of Congress are fully aware of the in the present law, Vhich sets v5 a 10-day notice re- quirement. ‘The new law governing regulation of taxicabs now pending in Congress would enable the commission to ac- tually exercise control over the mat- ters of zones and rates, Keech said. Hohensee, who led the strike yes- terday, earlier in the day threatened & new strike in the event the 35-cent . | minimum was not reduced by Dia- mond, and will seek to hold a confer- ence with members of tne P. U. C. present. His strike peace plan was tossed aside yesterday afternoon in favor of that proposed by Harry Davis, Dia- mond president. He was advised todsy by Chairman Elgin said he thought the 35-cent level “will hurt those who charge it, but not those who do not charge it.” “Twenty cents is your trade mark. When | PATMAN AIMS BILL AT STORE LOBBIES Plans Measure-to Prevent Discrimination in Prices to Retailers.. By the Associatod Press, As a result of information disclosed in hearings before the special House Committee investigating the “super lobby,” allegedly set up here by chain and retail store operators, Representa- tive Patman, Democrat, of Texas, chairman, sald today he intends to | introduce a bill to prohibit discrim- ination in prices to retallers, The proposed bill would prevent “block discounts” in the purchase of huge accounts, Patman told the House yesterday the chain store interests in the past had made unsuccessful efforts to establish “propaganda” organizations. He said he felt the committee already had | established a connection between | chain store interests and a retail fed- eration. At the inception of the in- quiry he had mentioned the American Retail Federation, Inc. Federation Called a Ruse, The retail federation, Patman as- serted, was hit on as a device to bring in’ little, independent stores as a “front” in a fight against bills in State Legislatures or Congress unfavorable to chain stores. Patman told the House that “what- ever we do here, we must prevent & few people from controlling the mears | of communication in this Nation,” and | he mentioned newspapers, radio, the | screen and the stage. “If you allow these large concerns that control publicity in the principal cities of the country to get together,” he said, “they have one purpose. With the means at their command, the peo- ple will not get the truth * * ¢, Advertising Lever Seen. “The point I am making is that the effort is being made through these organizations to control the means o: communication. I doubt if you can pick out 10 men in the country who control as much advertising as these 9 men incorporated in this super- lobby here in Washington.” This was his conclusion to a half- hour review of the committee's inves- | tigation into the American Retail Federation. He had just said the federation was organized by eight powerful chain | store men and two independents, with | salaries of at least $75,000 a year | each, and at least five of them had | powerful New York banking connec- tions and wide credit influence. “If you pay a paper $300,000 a year for advertising,” he argued, “you don't | have to ask it to print anything good :bws:z you—they'll look after your in- lerests.” 'ARMED PRISON TRIO 'HUNTED IN KENTUCKY Horse Farm Manager Robbed by Gunmen Believed Headed by Morris, Bank Bandit. 3 By the Associated Press. { LEXINGTON, Ky., June 11.—Three | gunmen who abducted a prison guard |and seized a private car were hunted {through' the blue-grass last night as members of the James C. Morris gang of escaped convicts. Captain of the Prison Guard Leslie de Rosset led two carloads of his men to the chase from Kentucky’s Prank- | fort Reformatory. Three murderers | and robbers broke out of there May 12. Gunmen identified as Morris and |two of his gang recognized Guard Harold Moberly near Richmond, Ky., | this afterncon. Seemingly afraid he | knew them and would give the alarm, they forced his car off the road, cov- | ered him with two pistols, tied him up and threw him in the woods. It took him an hour to get free. Moberly said he believed his ab- | ductors were Morris, a bank robber; |James Boyd Brown, who was doing |life for murder, and Edward Sons, | serving 20 years for robbery when the | escape was made. Three n:en flourishing a submachine | gun, a sawed-off shotgun and a pistol crashed into another machine in front of the Castleton trotting horse farm |a few miles from hsre. They fol A. B. Bastin, the farm manager, an Mr. and Mrs. J. E. Warner from the Bastin car. They took $13 from them. Flyers in Air 163 Hours. MERIDIAN, Miss, June 11 (#)— The Key brothers, Al and Fred, soared on today in their endurance flight At 7:30 a.m. the flyers passed their 163d consecutive hour in the air since their take-off 12:32 p.m. June 4. At that time the endurance plane had traveled 13440 miles. Hurt in Fall at Home. Injured when he fell down the steps at his home in the 400 block of New York avenue, George Crews, 81, col- ored, was in a critical condition in | Emergency Hospital todsy. X-rays are to be taken to determine whether his neck is broken. have to have.a rate compact, or we'll all be back on the 20-cent base.” Ringgold Hart, Diamond counsel, filed the new schedule with the P. U. C. last night for his own company and the Terminal group. Supt. of Police Brown assured own- ers of Diamond and Terminal cabs they would be given a reasonable time to have new rate signs printed for their cabs. Although from one source it was learned a move is afoot to call & drivers’ conference to agree on a per- manent high-rate schedule, a spokes- man for the Premier association, which runs a fleet of 600, declared: “We are going to stick to the 20- cent minimum. All the drivers had a vote on it last night. It was practi- cally unanimous. There were only four or five who protested.” Four Drivers Convicted.