Evening Star Newspaper, June 23, 1935, Page 3

IDONALD COMING T0U.S. FOR TALKS London Dispatch Says He Will Discuss War Debts, " Stabilization, Navies. By the Assoclated Press. LONDON, June 22.—The Sunday Dispatch tonight said former Prime Minister Ramsay MacDonald would g0 to the United States soon to dis- cuss war debts, currency stabilization and navies with President Roosevelt. It claimed to have “definite” in- formation that the white-haired Scot, ‘who resigned as prime minister June 7 to become lord president of the council in Stanley Baldwin's govern- ment, would leave England shortly *“on an important mission” to America. A report to the same effect was chronicled by the Herald’s political columnist just one week ago, only to be termed completely without foun- dation by British officials. Report Unconfirmed. Immediate confirmation of the Dis- patch’s report was not available, since most members of the cabinet and other officials were spending their customary week end out of the city. The newspaper, however, said it had been definitely decided to send MacDonald to Washington to talk over the three major problems con- fronting the two governments. He will take with him plans to re- duce the British war debt, on which recent installments have been passed, and put an end to the “muddle” in which the United States demands vast sums and gets nothing, it con- tinued. Concerning navies, the Dispatch reported, MacDonald will say for Britain: “We have reached a friendly and satisfactory agreement with Germany (granting the Reich naval tonnage 35 per cent of Britain’s). “Now we want to reach similar egreements with all the other big powers.” To Discuss Stabilization. In the matter of stabilization, the article said, MacDonald will seek to get the United States to agree as to how many dollars shall make a pound sterling, so that the world’s traders | will know where they stand in their | international dealings. The 68-year-old MacDonald, whose withdrawal as prime minister was credited partly to failing health, told friends when he arrived at his native Lossiemouth the day after that he expected soon to “go back to work as great as ever.” “I hope to do a great deal more | before I go over the way,” he said. Observers previously have pointed out that the veteran fighter for peace, in his present cabinet position, is not burdened with responsibilities and hence is available for international negotiations. CHANCE FOR STABILIZATION. MacDonald’s Hasten Monetary Pact. With France and America closely allied in world monetary affairs, ob- | servers here saw possibilities of add- ing Great Britain to the combine in | the reported intentions of Ramsay MacDonald to visit the United States soon on an important mission, ‘The negotiation of an understand- ing between Washington and London, it was generally felt, would go far toward achieving stabilization of cur- rencies on an international basis and | might help in solving the war debts and armaments problems. Stabilization on a satisfactory basis has frankly been the objective of the administration for several months, even, some said, if such action should necessitate a second revaluation of the dollar. The frane, which Treasury millions recently defended in a foreign ex- change emergency, is still tied tightly to gold, the pound still adrift. The dollar, so far as foreign trade is concerned, has a definite gold value of $35 an ounce. Stabilization discussions would con- cern principally the parity to be es- tablished between the various cur- rencies, with each nation seeking to keep its own monetary unit at a level of comparative depreciation in terms of the money of the others. When the dollar, for instance, is depreciated as compared with the pound, it makes it profitable for Brit- ish importers to purchase American ‘manufactures and tends to keep Brit- ish products from pre-empting Ameri- can markets at the expense of Ameri- can producers. The war debts tangle has grown more involved, with default added to default as payment-due dates have come and gone. Only a week ago Great Britain and all other debtor nations, except Finland, defaulted on their mid-June installments. SPECIAL NOTICES. WILL NOT BE RESPONSIBLE FOR ANY bills. from this date. contracted by Der- sons other than mysell. JOSEPH 'A. PESSAGNO. J: ON JUNE 26t AT § PM. AT EICH berg’s Auction. 1227 st. n.w.. we will gell for storage bill and repairs. 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Unless the American Government abandons its policy of the most fa- vored nation’s clause in regard to the South American continent, the Latin American republics are afraid that Europe or go out of business alto- gether. The ministers of Paraguay and Bo- livia who have called at the White for his action in the Chaco war, have broached the subject to the President in the course of such visits. They suggested that the Buenos Aires Peace Conference be enlarged to include all American nations and that in addition to the Bolivian-Paraguayan peace, the important trade relation question should also be discussed. * x kX The Latin American continent feels the pinch of the economic national- ism which prevails throughout the world. During the last two years South American trade has been falling off | while African and Oceania trade has been increasing. This is due mainly to the fact that the European nations, France, Great Britain, and to a_certain extent Portugal, Italy and Belgium, which control the entire African continent and Oceania, have been giving a preferential treatment to the countries which are their de- pendencies and made it increasing- ly difficult for the products of the Latin American continent to enter their territories. By sticking to the theory of most privileged nation, Latin America has seen its foreign trade sadly curtailed. Thus, when Brazil signed an agree- ment with the United States giving a reduced tariff to the American auto- mobiles, they had to do the same thing to Italy. The Italian automobiles pay the same reduced duty upon entering Brazil as the American cars. But at the same time, Italy continues to levy a heavy duty on Brazlian coffee and cotton. Because of this anomalous situa- tion Latin America is confronted with the following situation: Either it must obtain a special tariff for its exports to the United States, or tie up with the European countries, or go out of busi- ness. * k * * ‘The European countries, already having granted a preferential tariff to their African and Oceania depend- encies are reluctant to help out the Latin Americans. The United States is the only hope of the South Amer- icans and they want to discuss mat- ter of increased trade, which is more important than the Bolivian-Para- guayan peace treaty, at the coming Buenos Aires conference. Secretary Hull has not yet been ap- proached by the Latin American diplomats; his doctrine is well known to everybody, and they feel that there is little to be obtained from the American Secretary of State. He is aware of the plight of our southern neighbors, but is not willing to give up his theory which he has advo- cated for the last 25 years on uni- versal reciprocal trade agreement. He Wil advise them to be patient and wait until all tarif barriers have broken down. But they hope to have more sympathetic listeners in Presi- dent Roosevelt and the Assistant Sec- retary of State, Sumner Wells, both of whom recognize that the South American continent might go broke long before Secretary Hull's millenjum free trade for all nations becomes an accomplished fact. * X Xk % Hoover’s “G” men are * real interest to the Joreign mats in Washington. in rece: -nths, especially since the killiug of Dillinger and his - J. 7 a me much attention to it. it has been discovered that that force THE SUNDAY STAR, WASHINGTON, D. Illness Kept the King at Home Because of illness, King George was unable to accompany his Queen on the traditional royal drive through But she was joined by her son, the Duke.of Gloucester (seated beside her in the royal carriage), and welcomed at the foot of Castle Hill by another son, the Prince of Wales (at extreme left, hatless, —A. P. Photo, Servants, Farmers and Sailors Included in D. C. Jobless Aid Charitable, Religious and Other Non- Profit Groups Would Have to Pay Compensation Tax for Employes. Domestic servants, farmers, sailors, employes of charitable, religious and similar non-profit organizations, and employes of members of their own families are among those coming within the scope of the unemploy- ment compensation law for the Dis- trict, now pending before a Senate subcommittee In these classifications, as in all others, there must be at least four employes to make any tax contribu- tion mandatory. These classes are given special ex- emption in that section of the na- tional law which deals with minimum requirements for State and territorial laws but are rot given like treatment in the Ellentogen District measure, which has passed the House and is awaiting Senate action. Example of Servant Tax. Passage by the Senate in its pres- ent form would make the District law operative in such cases as the following: A family employing a maid, a cook, a gardener and a chauffeur would have to pay the prescribed yearly tax, 3 per cent as the bill now reads, on their salaries In addition, such com- pensation as board and lodging must be included in computing the tax. Owner of a fishing boat having a crew of four would have to con- tribute. The Community Chest or a church employing four or more would have to_contribute. Furthermore, family ties are not | considered. If, for instance, the crew of the above fishing boat all were sons of the owner he still would have to pay his tax. Public Employes Exempted. Those who are given specific ex- emption in the local law are elected or appointed public officers, employes | of the District on an annual salary | basis, employes of the Federal Gov- ernment and members of Congress, and public school teachers. In his report accompanying his bill before the House, Representative El- lenbogen said: “The coverage of the District of Columbia unemployment insurance bill includes all gainful workers em- ployed in private establishments hav- ing four or more employes. This ex- cludes the self-employed—independ- ent hand tradesmen, professional people, owners, proprietors, and oper- ators; employes engaged in public service; and employes working in establishments having three or less employes. The latter exclusion re- sults in a virtual elimination of all employes in professional and domestic service.” is more efficient than the famous English C. I D. or the French Surete Generale. What interests the foreigners most is the recruiting of Hoover's “G” men. In their reports the diplomatic attaches point out that the men who are being enrolled in Hoover's force have not only to possess extraordinary scholastic attainments have to be accomplished lawyers, but also that the moral qualifications of the men who intend to enter that service are more carefully scrutinized than those of a Congressman or a cabinet officer. officer. As a result of these reports, heads of investigation departments from most European capitals are coming to Washington to learn how this youth- ful Edgar Hoover is “doing it.” * % =% ‘The Washington dipomatic missions were substantially increased after the war, when the European countries believed that this country would take an active interest in world affairs. Some embassies still have as many as 25 secretaries and attaches. Even the minor countries, which before the war either had no representation here or maintained a mere honorary consul general in New York, now have a minister and three or four secre- taries and attaches. These now must justify their pres- ence in Washington. They are paid in gold and receive about five times more than their salary would be in their own country, The New Deal has kept them busy for many months, but now that subject has been ex- hausted. Utilities (Continued From First Page.) early in the week under a rule leaving it open to amendments. Still insisting on the merit of his tax plan, Pettingill said after the session: “I hope that the Ways and Means Committee at some time will give some consideration to laying a small tax on the dividends of all holding companies except those in the first degree, returning to the practice of World War times. Systems Seen Aided. “I think that by repealing that tax we have encouraged the holding com- pany systems and helped to create the very situstion we are trying to cor- rect after thousands of investors have become involved.” Representative Mapes of Michigan was the only Republican who voted to report the bill. None of the eight Republican members was absent, though of the 19 Democratic members Bulwinkle of North Carolina, Peyser of New York, both ill; Corning of New York, out of town, and Maloney of Louisiana, were not present m vote. ‘The other Republicans voting the bill were Cooper, Ohio; wolvmnn. New Jersey; Wolfenden, Pennsylvania; Holmes, Massachusetts; Merritt, Con- necticut; Reece, Tennessee, and Wads- worth, New York. ‘The Democrats who voted to report Revolt (Continued Prom_ lflrst Page.) measure would have been enough to defeat it. It took the most extreme efforts by New Deal chiefs to prevent a roll call on that bill which, they said privately yesterday, would have defeated the measure. Most Democratic objections, they reported, members who felt the bill was un- constitutional. The House poll on the utilities bill, it was reported, showed 68 definite “noes” on holding company abolition and 129 non-committal. A majority of the 113 Republicans, G. O. P. leaders reported, are definitely against abolition. Because of the situation, renewed efforts were being made to expedite the legislation on the “must” prg- gram. Committee delays and parlia- mentary routine made it necessary for House leaders to change their plans for this week. Instead of taking up tomorrow the bill amending powers of the Tennessee Valley Authority, they arranged to spend the day on District of Columbia bills. Their schedule then was to call up Tuesday the ship subsidy bill and follow that with utilities or T. V. A, whichever was ready first. F. A. C. A. Bill Also Scheduled. Also, they hoped to sandwich in the Federal alcohol control bill, over which the potent House Ways and Means Committee and Secretary Mor- genthau are at odds. ‘The Senate, meanwhile, had nothing hot on tap for immediate considera- tion, although committees were work- ing hard on the omnibus banking and A. A. A. amendment bills. One high House leader, obviously apprehensive, reminded that late in the last Congress a similar feeling of dissatisfaction developed but failec to reach its peak because a Republican filibuster cemented the Democrats. “The Republicans will be smart enough not to filibuster again,” this chief added, still speaking privately. “The whole difficulty is that the boys have got a shirt full of passing what somebody else—in most cases probably 1‘15 'b:lm-tmster—geu on the ‘must’ Vote on Loan Bill Sought. A couple of other problems were bothering the House leaders. They learned yesterday that 198 of the 217 signatures necessary had been put on a petition to force a House vate on the Fraier-Lemke farm mortgage refi- nancing bill. That measure has been an ever-pres- ent problem to Democratic chiefs, who had been asked by high administra. tion leaders to keep it from coming to a vote. The bill itself would call for the issuance of $3,000,000,000 in cur- rency—more than the Patman bonus bill—to refinance farm mortgages on @ long-term amortization basis. Until early last week there were less than 180 names on that petition. Sev- TERMITE CONTROL CO. A Washingion Owned Company at’l Press Bldg. ‘Nat'l 2711 “Ask Our Customers™ came from Southern | | 15 States which have not yet en- C, PARLEY IS GALLED OND.C. SECURITY Copeland Promises Careful Study of Social Bills This Week. BY J. A. O’'LEARY. Conferees will meet early this week to consider changes the Senate made in the administration’s social security program, so Congress can complete ac- tion and send the measure to the ‘White House. Meanwhile, Senator Copeland, Dem- ocrat, of New York, chairman of a special subcommittee to handle local social security bills which have al- ready passed the House, said yesterday afternoon careful study would be given to the local unemployment insurance plan before it is presented to the Sen- ate. No date has been set for a sub- committee meeting, but it may be be- fore the end of this week. Pension Accord Assured. Indications are there will not be much discussion necessary on the old-age pension measure, which was before the House and Senate Commit- year ago. It would enable the to share in the grants the Federal Government will make for as- sistance to needy persons 65 years or over. One of the questions remaining to be settled by the conferees on the national bjll has a bearing on the local upemployment insurance meas- ure. It is the La Follette amendment by which the Senate voted to allow States more latitude in the type of insurance fund to be adopted, and to seek to stabilize employment by giving employers credit in the form of a lower contribution when they show a good record for keeping men steadily at work. The Senate also voted to let States adopt the separate company reserve account method of handling unemployment funds, if they preferred that to the system which places contributions of all employers in a pool. Basic Rate Mixed Up. The local bill, as passed by the House, retains the system of pooling the risks. While it was intended as it came from the House Committee to raise or lower the tax according to the employment record of the employer, as it passed the House, it provides for an increase in the tax | from 3 per cent to 5 per cent where | there is a high rate of unemployment, | without allowing for any reduction below the basic 3 per cent tax when | the employer has a favorable record | for stabilizing employment. The House, however, made this change in | the local bill before the Senate had | amended the national bill to allow credit for stabilizing employment. Another important issue facing the | conferees on the national bill is the | Clark amendment to the Federal con- | tributory old-age annuity plan. The Clark amendment would allow the Social Security Board to exempt in- dustries from this Federal system, if | they operate private retirement plans equal to or better than the Federal system. This old-age annuity sec- | tion of the bill is intended to cover | those employed in industry. Federal Tax Provided. It is to be met by a Federal tax| on employes and employers and does not call for local legislation. The Clark amendment to this Federal an- | nuity system was adopted in the Sen- | ate by a decisive vote. The Federal annuity system has no direct con- nection with the old-age pension leg- islation that is pending in the States and in the District. Such legislation is intended to match Federal grants to aged needy persons. Originally these Federal grants were to be paid | only if a State made a corresponding payment. If the conferees retain a Senate amendment, however, the Fed- | eral grants could also be made during the next two years to approximately | acted their local laws. eral Republican names were added, and one Democratic leader remarked | to a colleague that the increase to 198 | “is just a Republican attempt to em- barrass us.”, The other problem was over alcohol control. Secretary Morgenthau and Joseph H. Choate, jr., chief of the now-dead Federal Alcohol Control Ad- ministration, want a new control ad- ministration as a separate agency. The | ‘Ways and Means Committee wants it | under the Treasury. There was no in- dication that the Ways and Means Committee would retreat from its posi- tion before reporting a bill to the House this week. New Train Exhibited. ST. LOUIS, June 22 (P)—The Rebel, a streamlined train operated | by the Gulf, Mobile and Northern Railroad over a 500-mile roufe be- tween Jackson, Tenn., and New Or- leans, was on exhibit here today. The train will leave tomorrow for the| South and will be exhibited at several cities. | Payments Until Fall Installation GOL Silver and Plat- ? inum Purchased for Manufacturing Use. Maxi- mum Price Paid. Federal License WATCH REPAIRING BY EXPERTS The repair of your watch does mot complete the trans- action between us, but estab- lishes our obligation to fulfill our mmntu o! service. \\\\‘B 27711 LTI I LI T AL P P 2T LI N N >, LIl JUNE 23, 1935—PART ONE. Former President Herbert Hoover was greeted by more than 2,000 persons at the California Pacific “Hoover day” and the former President is shown here with Mrs. Hoover on the reception line. MOTOR CLUB OFFERS HOWARDS SYMPATHY A. A A Affliate Sends Resolu- tion on Death of Beale R. Howard. A resolution expressing sympathy over the death of Beale R. Howard vice president and member of the board of directors of The Evening Star Newspaper Co., and extending condolences to his son, G. Adams Howard, automobile editor of The Star, and other members of his family, was adopted at a recent meeting of the Advisory Board of the D. C. Motor Club, an affiliate of the American Automobile Association. The resolution proposed by George W. Offutt, chairman, follows: “We learn with deep sorrow and regret of the passing of Beale R Howard, the father of our valued | colleague, G. Adams Howard, and that “We hereby formally express our admiration and respect for his civic service and devotion to his com- munity, and that “To the members of his family we extend our tenderest sympathy, and trust that the knowledge that Beale | NORGE International Exposition. It was R. Howard contributed his full measure to the welfare of others, will serve to lighten the burden of their loss, and that “Be it further resolved, that this expression of sorrow be spread upon the minutes of this board, and that | | it shall be conveyed as a message of | sympathy and condolence to G. Adams Howard.” —_— Historic Emblems Sold. | The silver mace and sword used by the City of Galway, Irish Free State, for 200 years and taken by its iast mayor in default of a $30,000 debt, has been sold at auction. M FREE INSPECTION | For Flying Ants TERMITES Washington’s only BONDED Ter- mite insulation _service. Over 17,000 homes and buildings are protected by TERMINIX. Ptonnc 9920 | 1107, v, T x (omm' ware ot Imitators—enly secent o guaranieed 50 Buys A3 ZEDTWITZ-BECKER HAVE BRIDGE LEAD Watson and Fry, Defending Tro+ phy Holders, in Thirteenth . Place. € SKYTOP, Pa.,, June 22—The team By the Assoclated Press. of Baron Wllde:lur von Zediwitz of New York and B. Jay Becker of Philadelphia tonight helé a 25-match- point lead at the cloce of the first final session of play fcr the all-Ameri- can contract oridge pair champion- ..mps of the United States and Can- muh H. Watson and Samuel Pry, jr, of New York, defending trophy holders, were in thirteenth place. Zedtwitz and Becker scored the un- usual high of 150’2 points for the 28 boards out of a possitle 280. Average for the 22 pairs playing was 140 points, Second high score was made by Ralph Rothhaas and John Sparling of Cincinnati, who tallied 1651 points. J. Heller and A. J. Frank of Cleve- land were third with 1603 The sec- ond session was being played tonight. The third and final session of the tourney sponsored by the American Whist. League i3 to be played tomor- row. The scoring 2t the close of the first session of the Hrals found the widely known pairs of Oswald Jacoby and M. D. Maier, Sidney 8. Lenz and Edward Hymes far down the list. MEXICO HELD SERENE ST. LOUIS, June 22 (#).—Mexico is serene politically, is without a re- ligious problem: and has suffered little from the depression, Dr. Prancisco Castillo Najera, Mexican Ambassa- dor to the United States, declared k&)ere tonight on his way to Washing- n. 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