Evening Star Newspaper, June 27, 1935, Page 2

) A;Z K1) ROOSEVELT'S TAX POLITICAL MOVE Praoposal Seen as’ Gesture to Left Wingers, With House Taking Blow. BY DAVID LAWRENCE. ‘The political panic which has re- sulted from Presicent Roosevelt’s de- cision to recommend new on in- heritances, corporations amd large in- comes would be amusing if it did not have its tragic aspect—tinkering with the economic méchanism of.the coun- try at a time when it mighitiotherwise be ‘bending ‘its efforts - to4 ye-employ some of the millions of idle workmen. Just what prompted Mr. Roosevelt to inject these new issues at the very time that Congress has been trying to wind up its work for the session something which remains a secret of his own political strategy. JBut’ what happened was transpirently a gesture in the direction of the left wingers, like Senator Huey Long and Senator La Follette, but-with an accompanying belief that the radicals would be satis- fled with the simple announcement of the program and that they would not press for passage. Retreat Impossible, When the radicals in the Senate began, however, to question Mr. Roose- velt's sincerity there could be no re- treat—the President had to say he wanted action at this session. What else could he say? If he had remarked that the matter should go over till next sesslon, he would have been ac- cused of trying to raise issues for 1936 or of really trying to sidetrack his own recommendations. But there 1s no reason why Congress should be in & hurry, even if the President is caught in an embarrassing political corner. So the conferences that have been | going on this week behind the scenes have not been for the purpose of rushing the new legislation through, but of giving the appearance of rush- ing without actually putting the bills into law. What led to the impression of ex- eessive haste was the fact that the | so-called nuisance taxes—levies on miscellaneous articles—have to be ex- tended from next Saturday on or there will be a loss of current revenue. Sen- ator La Follette of Wisconsin held the whip hand when he threatened to at- tach the President's program for new taxes to the nuisance taxes as an amendment to the bill which has al- ready passed the House. This could be done, of course, by the Senate, but it could be eliminated in the House when the bill came back from confer- ence on the ground that bills to raise revenue must, under the Constitution, originate in the House of Represeni- atives. Would Satisfy Leftists. If, therefore, the Senate did pass the tax legislation as an amendment, Mr. Roosevelt would be in the position of satisfying the prodding of the left wing Senators, and then the question of whether the House wanted the new tax rates to be written int6 law would be a question for the membership there to decide. Already there are indications that the House doesn’t want a new tax pro= gram at this time. Speaker Byrns himself has begun to refer significantly to the delays due to hearings; etc., and the prospect of an adjournment in August or even September. This is rather a sign that the Presi- dent cannot force the House to act and, indeed, that he may not exert any | fessed as much to their friends. Their | pressure. The result would be that the blame for blocking the legislation at this session would fall on the House and not on Mr. Roosevelt. The President then could say ne tried hard enough to get action, but the House interfered with his plans. Anyway, it is apparent that a grand game of buck-passing is going on and that every day the chances of a drastiz tax program are dwindling. For one thing, the graduated tax on corporation income will be found unpopular with all holders of securi- ties—a by no means small number, politically speaking. A corporation with a milliop-dollar income may have 50,000 stockholders, so the heavier tax would reduce dividends to small shareholders, yet a small com- pany with a small capital investment might be making 200 or 300 per cent profit and pay a smaller tax than the large company, where the rate of profit on capital invested is in the | neighborhood of 4 or 5 per cent. Inequities like this will be the sub- Ject of hearings, and this takes time. Deficlt 10 Times Sum. The amazing thing is that a meas- ure to raise $340,000,000 is spoken of &8s an attempt at budget balancing. The deficit of the Federal Govern- ment in the fiscal year ending this Week is about 10 times that sum. ‘When will the administration come forward with a plan to balance the budget? 1936 because it must “soak the poor” in what is called a broadening of the | tax base, and that's politically dan- gerous, because, unlike the large in- heritance taxes, the number of voters affected is considerable. There is no certainty that the new tax rates now under consideration will bring in $340,000,000. The breaking up of estates and the selling of assets at reasonable instead of forced sale values cannot be accomplished in a year. Indeed, five years from now some benefits in revenue from the in- heritance taxes may be expected. But in the meantime, the damage to busi- ness through unsettlement and through- inequitable taxation will amount to many times the tax reve- nues involved. Mr. Roosevelt may wriggle out of the holé he has got into by getting the House quietly to delay, but the injury to business morale is incalcu- lable. (Copyright. 1935.) —_— MISS SIMS IS BRIDE Daughter of Admiral Weds E. E. Morison at Newport. NEWPORT R. I, June 27 (#).— Anne Hitchcock Sims, youngest daughter of Admiral William 8. Sims, U. 8. N, retired, and Mrs. Sims, and Elting Elmore Morison were married here yesterday in Trinity Church. The bridegroom, son of Mr. and Mrs, Abbot Morison of Milwaukee, Wis., and Peterboro, N. H, recently was appointed assistant dean of freshmen at Harvard College, where | by he was graduated in 1932. Father Cox Named Colonel. PITTSBURGH, June 27 (®)— Father James R. Cox, who led a “bonus march” to Washington sev- eral years ago, last night was made a Kentucky colonel by the order of Gov. Ruby Laffoon of Kentucky. It is afraid to do so before | What’s What Behind News In Capital Unkhown “Angels” Swell Funds of Democrats as Race Approaches. - BY PAUL MALLON. INANCIAL backers of political movements are always called “angels” by the trade. This is a figurative term, but it may develop a new literal meaning as & result of the last financial report of the Democratic National Committee. This report has produced sime “angels” who really are angels. They are not only bountiful but somewhat in- tangible. One leading contributor is listed as 2 Mr. James A. McDonough of Boston. He gave $10,000, which would be a | small fortune to some people. You {would think that any one showing iluCh faith in a political cause would be hailed around the headquarters of | that cause. But no one around the | Democratic National-.Committee knows Mr. McDonolgh. No one there is able to identify him. A group of Democratic politicians | was in town from Boston a few days | ago. Inquiry was made among them to ascertain the identity of Mr. ! | | McDonough. One of them said he | thought he was the regional director | for that district. A check-up at N. R. A. disclosed the director was a John J. McDonough, & former State House | iemploye. The Boston politicians then | agreed that their largest donor was apparently some one whom even they did not know. There were two equally large contributors. A Mr. Benjamin H. Connor of Paris and New York and a Mr. Thomas E. Murray, 4jr.. of Brooklyn gave $10.000 each. Neither of these is generally known in the earthly political sphere of Washington, but bdoth are identi- flable. Inquiry has developed that Mr. Connor is a Paris lawyer of substantial means who has @is- tinguished himself in taxr cases. He is known to Mr. Forbes Morgan, the Democratic treasurer. It seems that Mr. Murray is president of the Metropolitan Devices Co. of Brooklyn, which is mot listed in Moody's Index of Corporations, but he can be identified properly as an old friend of Postmaster General Farley. Nome of the three is listed in Who's Who. | 'The only point to the matter is | that the Republicans cannot expect to have much of a chance in '36 with the angels joining the side of Democ- | racy like this. | Inside Story oa Taxes. The inside story of how President Roosevelt nudged Congress into doing -| something about his wealth-tax ideas is another revelation of how he works. The suggestion first was presented |to some of the prominent congres- | slonal leaders privately at the White | House weeks ago. It is more than | & surmise that they all advised | against it. Most of them have con- | objections were that Congress is tired, | that the move may be politically wise, | | but is not economically advisable. ‘The next that some of them heard about it was when they were told that | | the message was on its way from the White House to the Capitol. The leaders immediately split over what they should do. Speaker Byrns is one of those who is sup= posed to have counseled the Presi- dent against the move in the first place, but when overruled, he turned and urged that Congress take it up and dispose of it at once. Other leaders (Senator Har- rison, Representative Doughton) planned to put it off until Fall or nezt year. But the Independents and Republic- { {ans (Borah and La Fellette) seized | the ball and started to run away with | {it. They wanted immediate action, | and exerted strong publicity pressure. ‘This confused the Democratic lead- ers 50 much that a White House con- ference was arranged to decided what should be done. Some leaders (Har- rison and Doughton) again coun- seled strongly against immediate ac- | tion. All confessed that it would | prove impossible to attach the plan | to the nuisance tax resolution before | Saturday, when the resolution must be passed. Again they were overruled were told to try it anyway. Confusion Backstage. ‘These developments are almost a direct repetition of what has hap- pened backstage on several major items of New Deal legislation. The old party counselors on the Hill have strenuously objected, have usually been overruled. When pressed, they have stood loyally for whatever the President demanded of them. It has happened so0 often that it has be- come established strategy. This ex- plains why so many sour prophecies creep into news accounts from Wash- ington occasionally. You cannot find out what is to be done until the Pres- ident gets ready to speak. What the congressional leaders say and think does not mean much any more. C. of C. Geis Busy. Five days before President Roose- velt sent his wealth tax message to Congress, the United States Cham- ber of Commerce decided to look into that subject. It chose PFrederick Clausen, a Western farm machinery manufacturer, as chairman of a com- mittee, but no other members have yet been named. Officials of this representative or- ganization of big business say they were flabbergasted, caught flat-footed the President’s sudden stroke. Their investigation will probably not get started until the taxes are adopted. Roper “Sits Tight.” Pals of Commerce Secretary Roper are quoting him as saying: “When I end my governmental career it will be as Secretary of Commerce.” This quotation is supposed to be & diplo- and SHIP SUBSIDY BILL PASSED BY HOUSE Measure Designed to Build U.S. Merchant Marine Wins by 194-186 Vote. By the Assoclated Press. ‘The Bland-Copeland bill, designed to bulld up the Afnerican merchant marine by subsidies, was passed today by the House and sent to the Senate. The vote was 194 to 186. Supporters of the measure con- tended it would foster the develop- ment of a merchant marine, owned and manped by Americans, capable of carrying all domestic and half the foreign water-borne commerce of the Nation and providing an adequate auxiliary for wartime. Subsidies Provided. The central feature of the bill is a provision for Federal subsidies equal to the differences in cost between do- mestic and foreign ship construction and operation. In addition, it would increase ship- owners' liability for death or injury to passengers at sea. Contending the legislation was viclous and unworkable and tending to perpetuate rather than correct abuses that developed under ocean mail contracts, opponents proposed & torrent 61 amendments. The measure was written after President Roosevelt on March 4 sent a special request to Congress for subsidy legislation. The House bill would set up a new Federal maritime authority to per- form much the same functions for sea _| transportation that the Interstate Commerce Commission does for the rallways. e Several Change Voles. At the end of the first calling of the roll, the vote stood 169 to 165 against passage of the bill. Several | members changed their votes at the conclusion of the second call and Representative McFarlane, Democrat, of Texas asked for a recapitulation of the vote. Speaker Byrns told him a recapitu- lation was discretionary \with the Speaker and that he belleved the vote sufficiently accurate. ‘While the House was voting, Chair- man Copeland of the Commerce Com- mittee was explaining the measure in an effort to persuade a rather reluc- tant Senate to begin consideration of it. Conceding that many Sepators were opposed to subsidies, Copeland warned, however, that without them chant fieet will be wiped out.” He recalled that today less than one- twelfth of the vessels on the seas were American, and that 90 per cent of these were more than 10 years old. |C. & N. W. RAILWAY WILL REORGANIZE | Parleys With Bondholders Continue—Jones Confers on Milwaukee Road. By the Associated Press. NEW YORK, June 27.—The Chicago & Northwestern Railway Co. an- | nounced today that the directors had | decided to file a petition to reorganize under section 77 of the Federal bank- ruptey law. The announcement explained that negotiations with the Bondholders Committee, which were inaugurated some weeks ago in the hope of reach- ing an agreement on a plan of volun- tary readjustment of the capital struc- ture, wouid be continued.’ ‘The road hopes that a plan of re- organization may be accomplished within the next 90 days. The filing of the petition, in the meantime, will insugurate jurisdictional steps looking to the assistance of the I. C. C. The Chicago & Northwestern state- ment said, in part: “Board of directors decided that it was inadvisable to attempt further to time, due to our past condition. We tinue our negotiations with the Bond- holders’ Committee.” DICKINSON ACCUSED BY SENATOR CLARK “Marches TUnder Banner Shearer,” Big Navy ‘Advo- cate, He Says. By the Associated Press. Senator Clark, Democrat, of Missourl charged in the Senate yesterday that Senator Dickinson, Republican, of ITowa was “marching under the ban- ner of that unspeakable scoundrel, ‘William B. Shearer,” a big Navy advo- cate. / The Missourian made the charge as he and other members of the Muni- tions Investigating Committee assailed Dickinson's protest in & Senate speech Monday that Stephen Raushenbush, committee counsel, had written “so- clialistic” articles, advocating & “bor- ing from within” by young Govern- ment employes in order to advance pational control over industry. The defense of Raushenbush came shortly after a favorable report by the Foreign Relations Committee on two neutrality resolutions to keep the United States out of war. of Continues debate cn motion to take up ship subsidy bill. 3 Banking Committee studies omnibur bank bill. House: Considers ship subsidy bill. Utility holding company bill awaits floor debate. TOMORROW. Senate: ; Program uncertain. Military’ Affairs Committee, regular ‘weekly meeting. Appropriations Subcommittee on second deficiency bill. House. g 3 Continues debate on holding com- he might succeed Farley as Post- Genersl, 1Copyright. 10853 ~ matic denial of the expectations that | P&RY there was a “probability that the mer- | | Martin Legeay, payments of service charges at this | will, therefore, file a petition under | ;secuon 77 and in the meantime con- PERRY EXTENDED 10 BEST VAN RYN Match Goes Four Sets. Mrs. Moody, Wood and Budge Advance. By the Associated Press. LONDON, June 27.—America’s two woman stars, Helen Jacobs and Helen Wills Moody, battled their way into the third round of the all-England tennis championships at Wimbledon today, but John Van Ryn of East Orange, N. J,, was eliminated in the third round of men’s singles by Fred Perry of England, the defending champion, 4—8, 6—1, 6—3, 10—8. Van Ryn, known principally as one of the world’s finest doubles players, put up a surprisingly strong battle against the champion. Attacking from the outset, the former Princeton star won the first set almost before Perry could recover from his surprise at the American’s unexpectedly strong offense. Perry rallied to win the second and third sets, but had to fight off Van Ryn'’s counter raily in the long fourth set to win the match,- ~ Wood Advances Easily. Joining Perry in the fourth round of men’s singles were Sidney Wood of New York, the principal American threat, and Donald Budge of Oakland, Calif. ‘Wood played well within himself in s 6—3, 9—7, 6—2 victory over D, H. ‘Williams of England, while Budge un- covered a strong attack to eliminate Adrian Quist, top-flight Australian, In the women's division, Mrs. Moody stormed her way to an easy 6—3, 6—1 victory over Adeline Yorke of England, but Miss Jacobs, the American tham- plon, was off form and unimpressive in eliminating Rollin Couquerque of Holland, 8—6, 6—4. The Berkeley, Calif, girl played with a bandaged finger and never seemed to hit her true stride. Mme. Mathieu Wins, Joining the two Americans in the third round were Mme. Rene Ma- thieu, the French star, who put out Miss 8. G. Chuter, , 6—4, and Margaret (Peggy) Scriven of England, conqueror of Mrs. D. C. Shepherd- Barron of England in & marathon tussle, 13—11, 6—3. Elia d’'Alvarez of Spain defaulted her second round match with Susan Noel of England bpecause she still was weary from her chree-set victory over Miss M. A. Thomas of England yesterday. In another third round match Viv- jan McGrath, Australia, defeated France, 6—3, 6—2, 6—4. HOUSEWIVES. CALLED TO ORGANIZE BUYING University Women's Session at Los Angeles Told Need of Consumer Groups. By the Associated Press. LOS ANGELES, June 37—A call to housewives of the Nation to or- ganize into consumer groups to get the most for their money echoed to- day at the annual convention of the American joéiation of University Women. Declaring fihat women, who do most of the buyirM, could be a major fac- tor in influ icing standards of pro- duction, put¥hase and consumption, Dr. Kathryn McHale, general direc- tor of the association, told the con- vention that “nearly every group con- cerned in production and distribution is organized except the consumer.” ““Women could bring about great things in educating consumers to demand higher standards and to get the most and the best fcr their mon- ey,” she seserted. PARALYSIS SPREADS Carolina Epidemic Spreads to 47 of State’s 100 Counties. RALEIGH, N. C., June 27 (#.— The outbreak of infantile paralysis in North Carolina today had spread to 47 of the State’s hundred counties, but continued to be concentrated largely in the east-central part of the State. Eighteen new cases were reported yesterday, bringing the month's total to 176. Eight deaths have occurred. Several cases, includng one fatality, have been reported in South Carolina, while Virgnia authorities reported 22 cases had broken out in that State. Let the World Go By l The family of Everet Parker, & Tennessee share cropper, who sat in the House gallery today at the end of their 3,000-mile trek for rellef. After nursing her baby for a half hour in the gallery Mrs. Parker was asked to take the child to the ladies’ rest room. ALASKA TROUBLES LAIDTO AGITATORS Assistant Relief Head Says 909, of 200 Families Are Satisfied. By the Associated Press. Lawrence Westbrook, assistant relief administrator, asserted today diffi-| culties in the Matanuska Valley, Alaska, colony were caused by “agi- tators.” ‘Westbrook, who supervised estab- | lishment of the colony, said a report | received today said 90 per cent of the | 200 familiex “are satisfied with their Jot and determined to see the project | through.” He sdded that Leo Jacobs, supervis- ing architect, had reported that “10 per cent of the number are respon- sible for the stories of unrest being sent from the valley and they co! stitute a group of ‘agitators who idle.’ “With the arrival of Eugene Carr, | PF. E, R. A. representative, at Palmer yesterday,” Westbrook added, “I ex- pect an early settlement of any real or fancied grievances which colonists may have.” oy Harry L. Hopkins' report denying that the Government's colony in the Matanuska Valley, Alaska, is ridden | by disease and discontent, drew this comment today from Senator Van- denberg, Republican, of Michigan: “The report shows a sincere effort to implement an impractical dream.” Vandenberg, assailing the experi- ment as & “crazy” one and submit- ting telegrams charging that great hardships prevailed, had called on the relief chief for an explanation. 2 STAMPS BRING $18,000 Sale of Collection of Late Arthur Hind Realizes $880,000. LONDON, June 27 (#).—Two 2-cent stamps brought s total of $18,000 to- day at the finel session in the sale of | the famous stamp collection of the late Arthur Hind, Americen phila- telist. The two perticular stamps were blue Hawailar missionary issues dated 1852. One brought £2,050, while a similar one, not quite as good a copy, brought £1,50C. When the closed, the collection as a whole Lad realized $880,000, of which $650,000 came from the sale in London, with the rest in the United States. District Use as For Job Insurance Opposed Senate Subcommittee Receives Pleas of | City Officials and Spokesmen for Local Organizations. BY J. A. O’'LEARY. (Story on Page A-1.) ! —Star Staff Photo. Laboratory [ the House unemployment bill more ALASKA PIONEERS LIST GRIEVANCES Complaints of Colonists to Be Given to F. E. R, A, “Trouble-Shooter.” By the Associated Press. PALMER, Alaska, June 27.—Colo- nists who haven't found the Mata- nuska Valley the “promised land” they expected listed their grievances last night for presentation to Eugene Carr, “trouble-shooter” from the Fed- eral Emergency Relief Administra- ‘tion. What changes might result from Carr’s investigation was a matter of eager speculation in the colony. He announced the protests would get “no sympathy” unless found justified. In Washington, Reiiel Administra- tor Harry L. Hopkins, reporting to the Senate, admitted construction here was about three weeks behind sched- ule. Hopkins reported, however, that there was no illness; that medical supplies were adequate and that build- ing material now was “arriving sat- istactorily.” Grievances Enumerated. The group loudest in protest— headed by Patrick Hemmer and Mrs. 1. M. Sandvik—enumerated their grievances in detail. They said: 1. Many of the colonists feel that the project was misrepresented to them, saying they expected homes to be ready for them upon their arrival, and they are not satisfied with tent lite. 2. Many protest against medical fa- cilities, claiming that the doctor sent here was primarily for the transient laborers. The colonists heard he had never taken care of women and ehil- dren before and alarm grew after the death of a small boy from pneumonia last week. In reply, cclony officials said many colonists to whom cod liver oil was given to build up their health for the long Winter nights shead, refuse to give it to their chil- dren, emptying it on tne ground 3. A group, their numbers not ex- actly known, want pay for all the work they do, including the clearing of their own land. They are refusing to cut logs and help build their homes, saying the corporation agreed to build the log homes. Some of them are re- ported to have voted to strike for pay on July 2. A rumored strike of F. E R. A. translent workers has been halted by the payment of wages to A plea not to use the District of | stringent on the District than is con- | them last Monday and Tuesday. Columbia as an experimental lruund& by making its unemployment insur- ance law more drastic than the ne- tional social security bill or any of the proposed State laws was presented to the Senate subcommittee yesterday afternoon by District officials and spokesmen for local organizations. The witnesses were not objecting to | uhemployment legislation, but urged the Senate to amend the Ellenbogen bill as it came from the House to con- form to the national bill. The sub- committee is composed of Senators Copeland of New York and Capper of Kansas, who hope to complete the hearings this afternoon. Chairman King of the Senate District Commit- tee also attended the meeting. Three Changes Urged. Speaking for the Commissioners, Corporation Counsel Prettyman urged these three important changes in the House bill: Elimination of the requirement that the District government supplement the 3 per cent employers’ pay roll tax by a contribution of more than s million dollars a year from the tax- payers generally. The House bill| would require the District to pay a | sum equal to 1 per cent of the pay roll of the employers affected. Placing administration of the local law under a local rather than s Fed- eral board. Make provision, either now or at some time later, for an employes’ con- tribution if experience shows it nec- essary. Immediate Start Deplored. Other witnesses deplored the pro- vision in the House bill which starts the employers' pay roll tax at 3 per cent immediately, whereas the Federal bill increases the tax gradually from 1 per cent now to 3 per cent in 1938. Attention also was called to the fact that the House bill would raise the tax later on, anywhere from 3 to 5 per cent, on an employer with s poor record for stabilizing work, without allowing any reduction in the tax be- low 3 per cent when an employer shows a good record for keeping men steadily employed. Representative Ellenbegen, who sat with the Senate subcommittee, ex- pressed a willingness o have the bill make provision for this reduction in tax on a good showing, as was origi- nally intended by him, before the House changed it. The House mem- ber, however, defended placing the ultimate 3 per cent tax on District employers immediately, on the ground that the District is able to meet it. Rail Official Compiains. Sidney 8. Axerman, general so- licitor for the Southern Railway Sys- tem, called attention to another in- consistency by starting benefit pay- ments in the District after one year, while the national plan is to have benefits start after two years. Among others who testified yester- day were: Board of Trade, Robert J. Cottrell; Merchants and Manufac- turers’ Association, John K. Althaus. ‘When the hearing resumes today the syubcommittee will hear Rufus 8. Lusk of the Washington Taxpayers' Pro- tective Association and James McD. Shea of the Building Owners and Managers' Association. After sttention had been called to the various ways in which the Ellen- bogen bill goes beyond what the States or the national bill are proposing, Commissioner Allen pointed out that the national plan may be amended as time goes on. Than he added: “We don't like the idea of having the District made the guinea pig.” “Won’t Experiment on Others.” “In other words,” observed Senator templated elsewhere, Mr. Aldermln; said the Southern Railway might have | to consider moving its general head- | quarters elsewhere if the bill passed in that form. | Commissioner Hazen said the Com- [ missioners favor applying the em- | ployer tax gradually, from 1 per cent | the first year to 3 per cent in 1938 | and thereafter. He said he could see | no reeson for making a different rule | in the District. | The Board of Trade supported the | Commissioners in urging elimination of the 1 per cent contribution from | the District's general revenues, point- | ing to the burden the city already is | facing in raising revenue to meet its| requirements. Mr. Cottrell'’s state- | ment also took issue with the proposal | to raise the employer tax above 3 per | cent in later years. | He sald: “The present bill extends further | than the pational law, even in the| third year, which is its maximum by | its provision which requires a 5 per cent pay roll tax from some employers, whereas the national maximum is only 3 per cent. “When it is considered that Wash- ington is a non-industrial city and has considerably less unemployment fluctuation than our big industrial centers, the need of any greater tax on pay rolls to take care of this| situation, than for instance in New | York, Baltimore and Philadelphis, is not at all apparent. In this regard there is no provision for the limitation of reserves in the proposed bill. The Wisconsin bill, for instance, permits each employer to build up unemploy- ment reserves and when such reserves have reached a stated sum, logically and equitably the employer receives a pay roll tax reduction. We feel that it would be manifestly unfair to re- quire all employers in the District of Columbia to build up reserves out of all proportion to adequate require- ments. This in itself would only re- sult in unnecessarily increased com- modity costs. Employe Participation Urged. “We urge that consideration be given to permitting employers to re- ceive the benefit of reductions by set- ting up an adequate reserve and ad- Jjusting the tax payment. “Further, we are of the opinion that in the best Interests of the em- ployes themselves in the successful working of the bill there should be some employe participation. This is not included in the bill under consid- eration and we respectfully recommend to the committee that they give this very earnest consideration. “‘We further call to the attention of the committee the fact that the House bill provides for 26 weeks of compensa- tion, which is considerably longer than in other existing or proposed legisia- tion—for instance, the New York law provides 18 weeks, “We feel, therefore, that the bill as it now stands, including the pro- visions to which I have referred, is entirely too drastic and these features of the bill entirely unnecessary for the adequate workig of the act as con- templated in the national bill.” Althaus Reads Petition. The petition of the Merchants and Manufacturers’, read by Mr. Althaus, discussed the following issues: That the employer tax be established grad- ually from 1 to 3 per cent, as in the national bill; that assessments on amounts of salary in excess of $2,500 on individual salaries be eliminated, as in the New Hampshire, New York, Utah and Wisconsin laws; clarify the rules governing employes in cases where work is being done both by a contractor and subcontractor, to avold disputes; that the Wisconsin plan of separate employer-accounts be adopted in place of the pool fund, so that an employer’s contributions could cease as long as his account has an adequate reserve; that the 1 per cent tax on Jealous Over Farms. 4. Jealousy exists among some of the colonists over the farms they were given, 5. The protest is heard that old seeds, which will not grow, have been distributed; that cutworms in the ground and insects are hurting erops. One man reported finding frost in the ground in the woods and said he be- lieved it never left the ground there, 6. It is feared the climate will cause much sickness. 7. Many are worried over the school situation, particularly those living eight miles or more away where no roads are yet built or under con- struction to the school house site. 8. Some families from Michigan and ‘Wisconsin say they came north with insufficlent Winter clothing. In reply, officials say the corporation is under no obligation to clothe the families. Diseatisfied With Laber. 9. The colonists are generally dis- satisfied with the . E. R. A. transient labor sent north and the way they are handled, saying many lined the streets for days doing nothing. One colonist reports having seen 15 men in a field with a tractor having diffi- culty handling it. 10. The Matanuska River has been running high and lowlands have beer flooded from the thawing of snow and & glacier in the nearby mountains, causing colonists to fear possible floods. 11. The prices of groceries and articles at the store are declared to be exorbitant. WOMAN COLONIST CHEERFUL. Letter to Seattle Shows All Pioneers Not Resentful. . By the Associated Press. SEATTLE, June 27.—She had to use wash bluing for ink, but there’s nothing “blue” about the letter from » former Wisconsin woman now keep” ing house in the Government colony of the Matanuska Valley in Alaska. The letter, written to a Seattle friend, was made public todsy by E, W. Knight, publisher of the Alaska Weekly here. He described it as “a great deal more typical of the attitude of the colonists than the kind of stuff we are getting from the malcontents who always make the most noise.” Federal authorities are investigating charges of some Matanuska colonists that the project had been misrepre- sented to them. The housewife, whose name was withheld by Knight, wrote that on arrival at Palmer, the colony capital, “the fun began.” “Many were so shocked,” she sald. “They had left the States with a very vague conception of what pioneer life in Alaska was to be like—and instead of being game enough to face the music, they were miserable enough to want to make every one else miser- able. “For & few days no one knew just where he or she was supposed to be, but now I believe they all are located in tents and being well fed, and surely they should expect no more. “We are at the main camp, just about & block from the post office, s low, tiny frame building about 12 by 14 feet, and it is usually just packed. Alongside the post office is s low log building called Lunch and Bake Shop. They are operated by thi same family—very intelligent people— and I sometimes wonder how they like the idea of this army of civiliza= tion marching in on them and dis- turbing their peaceful life. “We have chosen plans for our new home, and I believe they will be work- ing slong those lines within a few g e “It is & much larger project than most of us dreamed. But the plans are splendid, and we must just be pa« tient and give them a chance to carry them out. Our tents are 16 by 20— ; |a floor made of rough lumber abiduf 12 inches wide with cracks of half an inch or mors between boards. The stoves look good, if you don't use them—they are not successful bakers, “It is difficult to keep clean, as 1§ is such a dusty country. “But, you see, we constantly keep. trying; therefore we are always busy, thus keeping ourselves contented. We have church services—Catholic and Protestant—and they are organizing a Boy Scout troop, 5o, you see, in time we shall be quite well taken care of,” Aviation Progress Rapid. - OCommercial avistion is making rapid progress in Braail. 3 B