Evening Star Newspaper, June 18, 1935, Page 4

ASTE I CHARGED N SHP REPOR U. S. Ownership and Private Operation Proposed by Subsidy Probers. (Continued From Pirst Page.) also investigated air mail contracts, said: “Private ownership and operation of merchant and aerial transporta- tion with Government subsidy has re- sulted in a saturnalia of waste, ineffi- clency, unearned exorbitant salaries and bonuses and other forms of ‘com- pensation,’ corrupting expense ac- counts, exploitation of the public by the sale and manipulation of stock, the values of which are largely based on the hope of profit from robbing the taxpayer.” Half of Ships Built. The whole subsidy program of the past dozen years, the report explained, was based on an attempt to build up & merchant marine. But it stated that of the 43 “mail pay” contracts in ef- fect under the 1928 Jones-White act, only 20 required building of new ships. Of the 51 ships called for in the con- tracts, only 28 have been built. The report was packed with in- stances in which, it was alleged, com- panies violated the “spirit” of the contracts to “pipe” profits into their own tills instead of devoting the money to building up the merchant marine. The report said J. P. Grace, presi- dent of the W. R. Grace & Co., oper- ator of several Grace lines, together with banking and other business in- terests, received in 1928 salary, com- missions and dividends of $971,660. As another instance the commit- tee declared that “R. Stanley Dollar recelved from his Dollar Steamship Line and Admiral Oriental Line $698,750 as commission incident to the purchase of ships from the United States Government at low prices.” Cites Millions in Profits. ‘The report said the Admiral Ori- ental Line, with a $500 capitalization, operated Government-owned ships at a net profit of $4.640,204 in three years and five months. As another item, the report cited: “The Roosevelt Steamship Co., which took its name from Kermit Roosevelt in 1920, with a then out- standing capital of $22,000, made profits under a lump-sum agreement from 1931 to 1933, inclusive, amount- ing to $371,987.” Competitive bidding for the “mail pay” contracts was evaded, the re- port charged, and it quoted W. Irving Glover, former Second Assistant Post- master General in the Hoover admin- istration, as saying in connection with the negotiation of one contract that “I think it is well to word your ad- vertisement so that it might fall into the lap of the Colombian Steamship Co.” The statement was made, the report said, during an executive meet- ing in which the awarding of con- | tracts was discussed. Of the results of ship subsidy policy in general, the Black committee re- port said: “Responsibility for this country’s failure to secure that which it songht and for which it was willing to expend and have expended hundreds of mil- lions of dollars in taxpayers’ money must lie at the door of three classes of people. First, this burden of costly failure rests upon the enactment of any ill-advised compromise law. Sec- ond, upon certain public officials who flagrantly betrayed their trust and mal- administered those laws. Third, upon those individuals who publicly posing as patriots, prostituted those laws for their private profit.” Would Limit Profits. ‘While commenting that “the history of marine subsidy in the United States does not encourage this committee to believe that such a subsidy is likely to be honestly administered in the future,” the committee nevertheless recommended limitation of ship opera- tors’ salaries to $17,500 & year, and proposed that the Government recap- ture any profits above 6 per cent on subsidized lines. After seven weeks’ deliberation, the House Merchant Marine Committee yesterday approved a measure under Which ocean mail subsidies would be revised and the Government would pay the difference in costs between American and foreign ship construc- tion and operation. Into the measure, too, was written & heavy increase in the lability of ship owners for loss of life at sea. Committee members said the bill would be recommended to the House formally next week and probably a Tule sought immediately to permit the legislation to be brought promptly to the floor. A new five-man Federal board, the United States Maritime Authority, ‘would be set up under the bill to foster & merchant marine which would be: Able to carry all domestic water- borne commerce and at least half the import and export trade. Could Be Used in War. Capable of serving as a naval and military auxiliary in war or national emergency. Composed of vessels built in the United States and manned with citizen personnel, Owned and operated under the American flag and so regulated as to assure shippers adequate service and parity of Tates to foreign markets. The loss-of-life liability provisions were inserted unanimously at the re- quest of Representative Sirovich, Democrat, of New York. Owners would be required to carry lability insurance of $60 for each registered ton of their vessels. THE EVENING STAR, WASHINGTON, D. C, TUESDAY, JUNE 18, 1935. Doll House Show Nets $3,553 A cneck for $3,553.85, covering proceeds of the exhibition of Colleen Moore’s doll house at Lansburgh & Bro., was yesterday presented tc the hospital. Picture made during the presentation shows, left to right: Mark Lansburgh, member of the Board of Children’s Hospital; Ralph Goldsmith, general manager of the store, pre- senting check; Christine and Jackle, two little patients; Mrs. Frederick H. Brooke, president of Board of Lady Visitors, and O. H. P. Johnson, president of Children’s Hospital, receiving the check. The money, in accordance with the wishes of Miss Moore, will go to the orthopedic care of crippled children. Expiring Tax Rates House Votes 2-Year Extension of Specific Levies Due to End June 30—Measure Is Sent to Senate. There follows the specific tax rates, most of which expire June 30 and which would be extended two years under the administration’s schedule passed yesterday by the House and sent to the Senate: First-class postage—3 instead of 2 cents, estimated to yleld $75,000,000 annually. Gasoline—1 cent a gallon, estimated to produce $170,000,000. Lubricating oll—4 cents a gallon, $28,000,000. Brewers’ wort—15 cents a gallon, $800,000. Grape concentrate—20 cents a gal- lon, $1,000. Imported petroleum—Crude, 3 cent a gallon; derivatives, except motor fuel, % cent a gallon; gasoline and other motor fuels, 2% cents a gallon; lubricating oil, 4 cents a gallon; par- affin and other petroleum wax prod- ucts, 1 cent a pound, $8,000,000. Tax on Coal Imports. Imported coal—10 cents per 100 pounds, $1,100,000. Imported lumber—$3 per 1,000 board feet, $900,000. Imported copper—Ores or concen- trates usuable as a flux in smelting, 15 per cent; copper in alloys, 3 cents a pound; other copper com- pounds, 3 per cent ad valorem or % of 1 cent a pound, whichever is the lower, $800,000. Tires and tubes—Tires, 2% cents & pound; tubes, 4 cents a pound, $27,000,000. Toilet preparations—Mouth washes, dentifrices, toothpastes and toilet soaps, 5 per cent; cosmetics, perfumes, toilet waters, hair tonics and the like, 10 per cent, $12,000,000. Furs—10 per cent on any article re- tailing for $75 or more, $2,500,000. Jewelry Levy. Jewelry—10 per cent of any articles selling for $75 or more, $1,800,000. - Foremost Auto trucks—2 per cent, $6,300,000. Other automobiles and motor cycles—3 per cent, $35,000,000. Auto accessories—2 per cent, $6,200,~ 000. Radios and phonographs—3 per cent, $3,700,000. Mechanical refrigerators—S5 per cent, $6,800,000. Sporting goods—10 per cent, $4,600,- 000. Firearms—10 per cent, $2,300,000. Cameras—10 per cent, $340,000. Matches—Paper book, 3% per cent per 1,000; dyed wood, 5 cents per 1,000; others, 2 cents per 1,000; $6,200,000. Chewing gum—2 per cent, $650,000. Electrical energy—3 per cent of the bill, $33,000,000. Communications Tax. ‘Telephone and telegraph messages— For which the toll is 50 cents to $1, 10 cents; $1 to $2, 15 cents; $2 or more, 20 cents; telegraph messages, 5 per cent; cable and radio, 10 cents; leased wires, 5 per cent; $20,200,000. ‘Transfer of bonds and con veyances— | Bonds, 4 cents on each $100 of face value; conveyances, 50 cents for each $500 of value; $14,300,000. Transportation of oil by pipe line— 4 per cent, $9,600,000. Admissions—41 cents or more, 1 cent for each 10 cents, $14,000,000. Issuance of bonds and capital stock—10 cents per $100 of par value, $1,600,000. Stock transfers—4 cents on each $100 of par or face value, $8,000,000. Produce futures—3 cents per $100, $1,300,000. Premier Reported Menaced. TORONTO, June 18 (#).—The Mail and Empire said today that provincial police are guarding Premier Mitchell F. Hepburn because of threats against his life, made in the last 10 days. Dobbs Hats Foot-Joy Shoes Quality! SHANTUNG SILK 2-Pc. SUMMER SUITS Very meat and comfortable. Single or double breasted, regular or sport dack! $22.50 And a Worthy Selection of Excellent Quality Suits for Hot Weather- ® Seersuckers © 7 . $I2.75 2-pc. 2-pc. Linens . . 2-pc. 2-pc. 2-pc. 3-pc. 2-pc. 2-pc. Palm Beaches . . Cascade Cloth . . 20.00 Tropical Worsteds 25.00 Tropical Worsteds 30.00 Coronado Cloth . Silk Poplins . . . 37.50 e o from |5.00 15.75 30.00 SIDNEY WEST, inc.. EUGENE C. GOTT, o 14TH & & §TS. —Star Staff Photo. School Patrol Boy Gets A.A.A. Medal For Saving Lad, 9 Fourteen-year-old Louis Fanaroff, seventh-grade schoolboy patrolman at the Ketcham School, today is sporting a hero’s medal, conferred on him by the American Automobile Association, for saving the life of a schoolmate January 14. Somewhat embarrassed during the presentation at the school yesterday, Louis, who is the son of Mr. and Mrs. Nathan Fanaroff, 1601 Good Hope road, said he only did his duty when he pulled Jack Lewis, 9, from in front of a speeding truck. Modestly relating his version of the incident, young Fanaroff recalled that the truck, a heavy one used for road repairing, was approaching the inter- section of Fourteenth street and Good Hope road southeast during the noon recess. Louis’ signal for the vehicle to come on was mistaken by Jack as a motion for him to cross the street. He started across and was directly in the path of the truck when Louis grabbed him and pulled him back. “That’s all there was to it,” concluded Louis, who is one of 32 school patrol boys to receive Mattresses ss Remade The Stein Bedding Co. 1004 Eye St. N.W. ME. 9490 HOUSE LEADERS AGAINST GAG RULE Near Defeat of Nuisance Tax Under Procedure Re- sults in Decision. By the Assoclated Press. House leaders have decided tenta- The procedure yesterda: which the $501,991,000 “nuisance” tax measure was passed, came within five votes of being defeated. It was a drastic rule forbidding amendments and limiting debate to 40 minutes on a side. The vote for cern that & change of five “ayes” to “nays” would have left them one vote short of the 243 necessary for the bill's passage under the rule. iy hope,” commented Speaker Byrns, “that it will be unnecessary for us to have any gag rules be- tween now and the time we ad- journ.” Representatives in charge of the administration’s “must” legislative program contrasted yesterday’s “nar- row squeak” with the ease with which the social security and the omnibus banking bills were put through the House. When those measures were up for passage members could offer as many amendments as they desired and de- bate was practically unlimited, yet the bills were passed practically with- out changes. The nuisance tax bill, which now must run the Senate gauntlet, would extend for two years present levies on gasoline, automobiles, furs and other articles estimated to raise $501,991,000 annually. G. A. R. AT GETTYSBURG GETTYSBURG, Pa., June 18 (#).— The thinned ranks of Pennsylvania’s sons who fought in the Civil War are back on the battlefield at Gettysburg attending the sixty-ninth annual State convention of the Grand Army of the Republic. The meeting opened yesterday with less than 100 veterans present. Offi- clals said they expect 260 to be here before the convention ends Friday. Two memorial benches were pre- sented to the National Cemetery by Mrs. Ella Ruggles of Carlisle, patriotic instructor of the Sons of Veterans. MILK From SWISS GOATS VITA HEALTH CO. 3010 Fourteenth St. PEOPLES DRUG. STORES 1144 Conn Ave. = TAKOMA HEALTH FOOD STORE 148 Carrenl A Del Visiters Welcome Sundav to FAUN DAIRY Norbeck, Md. A Tap at Your Stateroom Door —you open it and an enormous box of flowers and a radiogram is handed you: “Dearest Girl: Love and every happiness on your sea. Here are flowers for you. voyage across the I knew you would remember, so I didn't forget.—Henry.” And so Henry although hundreds of miles away in a busy office, was among those present upon that eventful voyage. Truly, nothing ceiving flowers at and you will be flowers delive! C: iexpected lad to know that an surpass the delight of re- un times and we can have for you anywhere that your friends may be—in midocean—in Eurbpe—any- where, in fact, throughout the civilized world. Gude Bros. Co. do all this throug Association), an international States, Canada and 42 foreign Florists’ Telegraph Deliv organization %; m Uni countries. h the F. T. D, (the “Perfection in Flowers Since 1389" MAIN STORE: 1212 F STREET N.W. Phone Natl 4278 Other Stores at 3103 14th ST. N.W. Col. 3103 1124 CONN. AVE. 5016 CONN. AVE District 8450 $ember Florisss® Telegraph Emerson 1226 D-lluélum CLIPPER RETURN TOHONOLULU BASE Completes Round Trip to Midway—Groomed for Flight to U. S. By the Associsted Press. HONOLULU, chanics groomed the huge for the return hop to Alameda, Calif,, next Friday. Greeted more like due ferry boat than after leaving lonely Midway Island, 1,323 miles to the northwest. As residents of Hawail have come to expect, Capt. F. C. Musick an- nounced tests “very successful” and reported no unusual incidents despite the fact 500 miles of the trip were made “flying blind.” All curtains of the ship’s cabin were drawn and one man was on watch “just in case there should be any other planes.” With the exception of & Navy squadron several weeks ago, no other ! planes have ever made the trip be- tween Midway and Honolulu. “We will take off for Alameda Fri- day, weather permitting,” said.Capt. Musick as his crew of aerial commut- ers prepared for another 2,410-mile jaunt to California. Capt. Musick announced, too, the Clipper would return to Pearl Harbor soon after flying eastward to Ala- meda, but would give no definite date. Neither would he say whether the rext westward trip will take the big thip on to Wake Island, stopping point between Midway and the Philip- pines on the proposed transpacific air line for which the Clipper is blazing a trail. COURT REFUSES RULING IN SCHOOL TUITION SUIT Girl Quit Chevy Chase Institu- tion Claiming She Was Ignored—Father Sued. By the Associated Press. PITTSBURGH, June 18—Three Common Pleas Court judges yesterday declined to rule in u legal contro- versy between the fashionable Chevy Chase School of Chevy Chass, Md. and tbe father of & 19-year-old Pitts- burgh girl, who claims she was ig- nored at the school because ske re- fused to drink and smoke. Mrs. Isabelle 8. Farrington, head of the school, is seeking to recover $1,050 from Frederick W. Koehler as tuition for his daughter Ruth. 1n his answer Koehler charged that because his daugn‘er refused to smoke and drink she was frcwned upon by , | other students and, unable to bear ) SHRE S . ¥2 cup cheese with 2 tbsp. GULDENS g\ Mustard 49 VISIT OUR FURNISHED Suits FOR MEN White D. B. this treatment, left the school & few ilgllmflklhlm last Sep- Koehler has flled a counter suit demanding the return of $305 ot his $400 initial tuition pavment. ‘The judges advised counsel to set- tle the case out of court. FLOOD IN ARKANSAS Third of State Isolated After Storm Swells Rivers. LITTLE ROCK, Ark., June 18 (®)., —Rain, accompanied by high winds and lightning, sent swollen streams mounting today toward new high stages to devastate thousands of fer- tile acres in Arkansas. Approximately one-third of the State, in the northwest, northeast and southwest sections, was isolated. 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Plaid i oo $295 ‘Chairs, with cart- S Lounge rgga%uflt-in seat; un- and $3.25 h Back rooms el foot rests; - $13.95 Chairs, with $7.95 Sprin; b g Green Enamel Lawn Chair, with foot rest and Steel Lo eadrests, and gayly col- saso Armchairs with colorful uphol- stered seats for porch, lawn, sun or recreation $4.50 Comfortable Steamer Chairs, with natural fin- $1.95 . $7.30 Chalrs, with Gb'ders'Prictd from $16.75 to $7§.50 MAYER & CO. Seventh Street W—_ Between D and E B L T