Evening Star Newspaper, July 8, 1935, Page 1

WEATHER. (U. 8. Weather Burea u Forecast.) Showers tonight and probably tomor- row morning; slightly cooler tonight and tomorrow; Temperatures—Highest, 89, moderate southeast winds, at 2 pm. yesterday; lowest, 74, at 5 a.m. today. Full report on page A- 4. Closing N. Y. Markets,Pages 14,15& 16 No. 33,305~ post_office, Wa. RANKIN CHARGES NIGHTLY PARLEYS WITH POWER LOBBY Claims “Certain Members” of Committee Met With T. V. A. Foes. MISSISSIPPIAN DEMANDS | COMPLETE ACCOUNTING | Battle Over Controversial Holding | Company Bill Postponed by Agreement. By the Associated Press. Representative Rankin. Democrat, of Mississippi said in a statement today | he was reliably informed that “certain | members” of the House Military Com- mittee “who are fighting the admin- istration on the T. V. A. bill” met| with the “power lobbyists” at their hotel headquarters “night after night.” Meanwhile, the Senate neared de- bate on whether to agree with House action in voting to regulate utility holding companies instead of abolish- ing ones considered “‘unnecessary.” | President Roosevelt wants the latter | provision. The House twice refused | to approve it. Legislation expanding the power of | the Tennessee Valley Authority was | before the House in a form opposed by | the President. | Lobby Quiz to Start. [ Rankin's statement was issued shortly after Chairman O'Connor an- nounced the House Rules Committee | expected to open hearings tomorrow | in its investigation of lobbying for | and against the utilities control bill. | ‘The Mississippian, who led the un- successful “cloak room" campaign to put the holding company bill in a| form desired by President Roosevelt, | predicted Saturday the investigation | would be an “idle gesture.” He criti- | cized O'Connor and others for their | utilities stand. i To that O’Connor commented today | that “Mr. Rankin has attempted to cast aspersions on the intentions of the Rules Committee and possibly of the chairman, but he voted to author- ize * * * the investigation.” Sees “Racket” Government. “My God, what are we coming to?” Rankin asked in his latest statement. “A Government of racketeers, by racketeers and for racketeers? “Let the Senate committee summon every member of the House and of the Senate and put him on oath and de- | mand that he give an account of him- | self. Let him show how much utility stock he owns; whether or not he has been in secret conference with these power trust lobbyists during this ses- sion of the Congress; and, above all, | whether or not as a lawyer he or his | firm is on the pay roll of these utili- ties.” Rankin did not elaborate on the ref- | erence to the Military Committee, but #aid: | “We ought not to have any trouble | getting information about what went on in the power trust lobby in the Mayflower Hotel. “Every member of the House or Sen- | ate who represents the power trust as an attorney ought to either withdraw from that practice or he ought to be compelled to resign his seat in the Na- tional Congress. No member of the House or Senate can serve both the | people and the power trust in this fight, any more than he can serve both | God and mammon.” Battle Posiponed. By agreement between contesting factions, the expected battle over the utility holding company bill was post- poned untii later in the day or pos- sibly tomorrow in the Senate. Senator Dieterich, Democrat, of | Tllinois, first announced his intention to mcve at once for Senate concur- | Tence 1n the holding company bill as | it passed the House—minus the sec- | tion eliminating holding companies — | but changed his plans after a con- ference with Senator Wheeler, Demc- crat, of Montana, sponsor of the measure. Rankin said, “Senator Norris is | right,” and that the Senate should | make a thorough investigation, for | “it is useless to pass any further legislation touching utilities so long as they are powerful enough to dominate this Government and go unwhipped of Justice.” He declared a commission would be | (See T. V. A., Page 3.) CHURCHMAN’S TRIAL OPENS IN CHICAGO Wheaton College Head Threatens to Split Presbyterian Churcl if Treated “Unfairly.” By the Associated Press. CHICAGO, July 8—Threatening to split the Northern division of the Presbyterian Church of the United States if treated unfairly, Dr. J. Oliver Buswell, president of Wheat- on College, Wheaton, Ill, today was scheduled to go .on trial before an ecclesiastical court on a charge of re- bellion. Dr. Buswell, one of a group of church members styling themselves the “real fundamentalists of Presby- terians,” was specifically accused of ignoring an order by the denomina- tion's 1934 general assembly to dis- band an independent board of Pres- byterian foreign missions. At a preliminary hearing last month the college head said the independent board was founded and continued on the belief the regular foreign mis- sions board, by modernistic interpre- tation of the Bible, was drifting to- ‘ward too great a liberalism. He said nothing had been done counter to the church constitution. It was at the hearing he voiced ‘his threat of a schism and demanded & public trial. His request was granted and the doors of the Fourth Presby- “‘terian Church - were ordered- opened | to Secretary Roper since the begin- | Fntered as second class matter shington, D. (. JOHN DICKINSON. DCKINSONTO TAKE ISTEE POSTION Roper Assistant to Be Transferred to Anti-Trust Division, BY REX COLLIER. John Dickinson, one of the original New Deal brain trusters, is planning to resign as Assistant Secretary of Commerce to become Assistant Attor- ney General in charge of the Justice | Department’s important anti-trust division, it was learned today. i Dickinson, former professor of law at the University of Pennsylvania and lecturer on history and government at Harvard, is being drafted by Attor- ney General Cummings to lead the administration’s anti-trust drive—a move of special significance in view | of the demise of N. R. A. | The 41-year-old lawyer and econ- | omist has been picked to succeed | Harold M. Stephens, who resigned re- cently from the anti-trust division to accept appointment as assistant to Cummings, a post vacated by William | Stanley. Cummings is understood to have sent Dinkinson's ncmination to the | Wkite House several days ago. Dick- inson declined to discuss his proposed transfer when questioned today at the | Department of Commerce. He said any announcement weuld have to come from “elsewhere.” Headed Commerce Bureau. Dickinson has been chief assistant | ning of President Roosevelt's admin- istration. In that office he has super- vised the Bureau of Foreign and Do- mestic Commerce, the Patent Office and other leading branches of the department. | In the Justice Department he will | have charge of all prosecutions under | the Federal anti-trust laws, the ad- ministration of which assumes un- usual significance now that the Su- | preme Court has declared the na- tional recovery act unconstitutional. | The anti-trust division originally | held first-rank importance in the Department of Justice, but with the advent of the N. R. A. its work went into partial eclipse. Throughout the operations of N. R. A.. however, the division proceeded quietly with prose- | cutions of numerous violators of anti- | trust' statutes. Now it looms "again | as the senior division of the depart- | ment, on the alert to break up com- binations in restraint of trade. Regarded as Well Equipped. Dickinson, because of his ability as a lawyer and economist, coupled with his experience as a Government executive, is regarded as particularly well qualified for the justice position. He formerly was a law partner of William G. McAdoo. A native of Maryland, Diekinson made his home in Philadelphia prior to coming here to enter President Roosevelt’s “little cabinet.” He is & graduate of Johns Hopkins; Prince- ton .and Harvard Universifies and has received a number of honorary degrees of fellowships. He has lectured on government at Radcliffe College as well as Harvard, on politics at Princeton and on his- tory at Amherst in addition to Har- vard. In 1917 he was an economist on the War Trade Board. During the war he was a lleutenant in the Army. i He is the author of several books and articles, including “The Admin- istration of Justice and Supremacy of the Law.” LRI s o ROBBERY SUSPECT KILLS TEXAS BORDER SHERIFF By the Associated Press. MCALLEN, Tex. July 8.—Officers searched the Rio Grande border near Mission today for a wounded robbeiy suspect who Kkilled -Deputy Sheriff George M. Dennett of Hidalgo County | last night. The killing occurred about 15 miles west of Mission on a ranch near the river. Officers on both sides of the stream were notified. Dennett and Deputies N. K. Camp- bell and George Ingram had gone to the scene of the slaying to await the suspect, wanted for questioning in connection with a series of robberies. Two men who were with the suspect were arrested, but he escaped afoot, leaving a trail of blood from fire of the other officers. |upon a struggle in which we as a| he WASHINGTON, D. C, MONDAY, JULY 8, 1935—THIRTY PAGES. WAR 15 PREDICTED IN AFRICA BEFORE WET SEASON ENDS Strife Developing Rapidly as Italy Rushes Troops, Observers Say. BLACKSHIRT DIVISIONS INCREASED TO 15,000 Heavy Hostilities Cannot Begin Until Rains Let Up, *but Crisis Is Expected Sooner. By the Associated Press. ROME, July 8.—Italy stepped up concentration of troops for action in East Africa today, and some observers predicted warfare between Italy and Ethiopia before the rainy season ends in September. The Blackshirt divisions, it was disclosed, have been increased in strength—from 12.000 to 15000 men. Four divisions have been completed and another is to be ready soon. More than 3,000 soldiers and officers are en route to Africa on three ships that sailed during the week-end. Other transports are ready at their docks, awaiting only the arrival of volunteer battalions. Although most observers held that hostilities could not begin before the heavy rains let up in September, some expressed a belief that the con- troversy was developing so rapidly it | would come to a head sooner. Mussolini Hailed. The nation rallied strongly to Premier Mussolini's charge to 12.000 Blackshirts, ready to depart at Sa- lerno for Africa: “We have decided government and people will not turn back. The decision is irretrievable.” Italian newspapers displayed prom- inently dispatches asserting France | had refused to back Great Britain in | an effort to avert war through the League of Nations. Dispatches from London criticized Capt. Anthony Eden for & “tentative offer” of a seaport | to Ethiopia to settle the dispute. The Conciliation Commission, meet- ing at Scheveningen, the Netherlands, was considered to be discussing only border incidents—minor elements in the controversy. The commission was reported to have encountered a deadlock that | threatened to break up the meetings. The rift arose from the demands of Italian members that eyewitnesses of border incidents be brought to Scheveningen by airplane to testify. Authoritative sources said British opposition has strengthened Italian public opinion behind Il Duce’s East African campaign and that Italy is | determined to proceed, regardless ohl what England does. . The United States’ action, on the other hand, in refusing in effect to act under the Kellogg-Briand pact to avert hostilities, was termed more diplomatic. ‘Washington’s answer to Emperor Haile Selassie’s note, asking invoca- tion of the pact under which Italy renounced war as an instrument of national policy. was held up by news- papers as evidence of an American realization that Italy is justified in its stand. Military circles said Italy's first move from her East African colonies of Eritrea and Somaliland would be against Adowa, where a numerically superior Ethiopian force crushed an Italian expedition in 163,6. Parley in London. LONDON, July 8 () .—Premier Mussolini’s dictum of Italy’s “irre- trievable” decision in her dispute with Ethiopia confronted Great Britain taday as she pondered new policies in an attempt to avert war. . A definite decision is expected to be announced to the House of Commons ‘Thursday by Sir Samuel Hoare, for- eign secretary. Joseph A. C. Avenol, secretary gen- eral of the League of Nations, arrives tonight and will consult Sir Samuel and Capt. Anthony Eden tomorrow concerning the Italo-Ethiopian crisis. With Great Britain apparently forced to play a lone hand as peace- maker as a result of the “hands off” attitudes of the United States and Prance, it was believed that little would result from their conversations. Morning newspapers generally ap- plauded President Roosevelt’s stand of polite but aloof interest in Ethiopia's troubles. Unless Mussolini intends to strike at the heart of the country and con- quer its central plateau, Field Director T. A. Lambie of the Abyssinian mis- sion service sald here yesterday, there is likely to be little fighting in the impending war. Dr. Lambie, an intimate friend of Emperor Haile Selassie, now in Lon- don seeking to organize an ambulance corps for Ethiopia, told the Associated Press: “Only & small force of tribal war- riors, who would be unable to offer much resistance té the large Italian army, protects the Ethiopian border, and the highlanders, who comprise the great majority of Hails Selassie’s troops, dread descending into the hot, pestilence-ridden desert lowlands.” of uplanders to the Jowlands may avert hostilities, other than frontier clashes, if 11 Duce is content to seize sea-level territory linking the Italian colonies of Eritrea and Somaliland. By the Associated Press. LONDON, July 8—Completely re- freshed after a week.end spent in the country, Helen Jacobs is already look- ing forwarg to more battles with ber old adversary, Helen Wills Moody— but not for any part of $35,000. Shortly after today by Rev. E. E. Hastings of 4 Joliet, named moderator of the trid, $25,000 as Tennis Tilt Bait Fails to Lure .Helen Jacobs the Pacific Coast. “A match like that,” said cobs, “would not mean anything -to me. I'm sure Helen (Moody) feels the same way about it. ‘WITH SUNDAY MORNING EDITION FOXX IS BATTING HERO AS AMERICANS WIN, 4-1 Drives Three Runners Across With Homer and Single, Hemsley Gets Triple to Score. BY FRANCIS E. STAN. CLEVELAND, July 8 —Jimmy Foxx, star slugger of the Athletics, with 2 home run and a single, driving in three runs. was the batting hero for the American League All-Stars as they defeated the National Leaguers, 4-1, in their third annual contest here today. Bill Walker of the Cardinals named as the starting pitcher of the National League All-Stars by Man- ager Prankie Frisch shortly before game time. Walker. a southpaw, with a record of six victories and two defeats, was to be opposed by Lefty Gomez of the | Yankees, who served on previous all- | star teams. | The nomination of Walker came as ;l distinct surprise, inasmuch as Hal | Schumacher, star “sinker” ball ex- | ponent of the Giants, was Manager Prisch’s original choice. Rumor of a rift between Frisch and Manager Bill Terry of the Giants accompanied ‘Walker's nomination, but it was not confirmed officially. [ FIRST INNING. NATIONAL—Martin hit Gomez's first pitch for a looping single to left. | With the count two and three, Vaughan | flied to Vosmik. Gomez's first two pitches to Ott were balls, and on the second delivery, Martin stole second. Ott then grounded to Cronin, who threw him out, Martin going to third. Medwick worked to a count of three and two, and struck out on a high pitch, protesting vigorously when | Ormsby declared he had made a full | swing. No runs. | AMERICAN—Vosmik let one ball | go by and then grounded to Herman. ‘Walker could get only one ball across | the plate to Gehringer, and he walked. Gehrig hit the first ball pitched to Terry, who forced Gehringer at sec- ond with a throw to Vaughan. With a count of three and two, Foxx hit a home run into the distant left-field stands, scoring Gehrig ahead of him. Walker's first pitch to Johnson was a ball, and the second was also wide, but Johnson swung and popped to Her- man in short right. Two runs. National, 0; American, 2. SECOND INNING. NATIONAL—On the first pitched ball, Terry lined to Johnson. With & count of two strikes and no balls, | Berger was forced to pop to Gehrig. VETERANS LAUD HITLER | Germany’s Former Troopers End “Defense Celebration.” KASSEL, Germany, July 8 (P).— Germany’s war veterans went home from their greatest celebration today loud in their praises of Reichsfuehrer Adolf Hitler for his “gift” of a new army to the Reich. Officials estimated that 350,000 per- sons attended the two-day fifth bi- annual meeting of the Kyffhaeuser bund, the nation’s largest organiza- tion of former soldiers, in the great- est_gathering of veterans ever held on an soil. Col. Wilhelm Reinhard, leader of the veterans, asserted: ‘“Germany would never have been saved or have s new defense force if it had not been for Reichsfuehrer Hitler.” Readers’ Guide Amusements Comics Cross-word Puzzle . Editorials Finance .. Lost and Found. Mallon .. Radio .. 4 A-12-13 Vital Statistics .. AT . Washington Wayside ....A-10, ' Women'’s Features . A&....B- Wasd’ | Medwick, If. ! Tenry, 1b. | Collins, 1b... On a count of two and two, Herman | Box Score NATIONAL LEAGUE. AB. R. H 0. A Martin, 3b. Vaughan, ss.. ott, rf. ... | Berger, cf.... J. Moore, of. .2 Herman, 2b...3 Wilson, c..... 3 Hartnett, ¢..0 Walker, p....0 Sch'm’cher, p.1 | Derringer, p..0 J. Dean, p....0 Mancuso 1 P. Waner L i Whitehead eocococeoeocseocoo=o ececoccsPe~o0c e ~m COCCO P U M= mmNAO =K s I‘eceea.—eoe»oee-eewc | I I | ~lececceccccccccccen~m - » » ® 31 Mancuso batted for Walker i 3. Moore batted for Berger | P. Waner batted for Seh | Whitehead ran for Wilsen in AMERICAN LEAGUE. AB. R. H O. Vosmik, rf... | Gehvinger, 2b.3 | Gehrig, 1b. Foxx, 3b. Bluege, 3b....0 Johnson, If.. 4 Chapman, If..0 Simmons, cf..4 Cramer, cf...0 Hemsley, ¢... Cronin, ss Gomez, p. Harder, p 1 A o ' [ SN =N IFeies e ciclcle s o leee-encen»e»- Iee-aefieue | =% el eccocccccccoem 2 o [ o (] [ o o (] 4 2 1 9 32. 4 827 SCORE BY INNINGS. National.....000 100 000- 1 | American....210 001 00x- 4 SUMMARY: Runs batted in—Foxx (3). Cronin, Ter: se hits—Vaughn. Wilson. Sim! o hit—Hemsles. rmsby, Mergerkurth, mpires—Oi and Sears. PRISON BREAK BALKED, SLAYER KILLS HIMSELF Second - Condemned Murderer Faints Over Body of Dead Com- panion in Birmingham. By the Associated Press. BIRMINGHAM, Ala, July 8— Frustrated in a desperate Sunday break for freedom, one of a pair of condemned murderers killed himself with a gun snatched from a warden while his companion fainted when the two found escape blocked. ‘The priscaers, Richard Darrafou, 24, of Stockton, Calif., who ended his life, and Wesley Vincent, 19, of Shel- ton, Wash., were under death sentences for killing Policeman F. J. Harris in a night club hold-up. ‘They seized Députy Warden J. D. Russum when he came to open their cell, and shoved him and his colored trusties into it. They overpowered Chief Warden J. D. Pinson and headed for the jail elevators. But a trusty touched off the jail alarm system. Darrafou fired two shots into his chest and fell ‘woundéd. HrERERD | showers Foening Flar e e ok ok The only evening paper in Washington with the Associated Press News and Wirephoto Services. SUNDA .AI". l l‘ym Cireglal ‘Some Returns Not Yet Rec TWO CENTS. & U®) Means Associated P TAXES ON RICH OFFER 3 RAIN HALTS WAVE OF HEAT DEATHS Cooler Weather Predicted for Capital Area as Tem- perature Hits 89. Cooler weather today was expected | to bring further alleviation of the Summer's first general heat wave | which, having chalked up a record of more than 30 deaths and several score prostrations, gave way yester- | day in most sections of the country | to rains and winds. | The weather man forecast showers | tonight and probably tomorrow morn- | ing for the Capital arew, accompanied by lower temperatures. With a maxi- mum temperature of 89 registered at 2 p.m. yesterday, conditions in Wash- ington were made more bearable by yesterday afternoon night. No prostrations were reported. While few fatalities were reported due to the heat, yesterday, death rode the highways in 20 States over the| week end, leaving more than 80 dead and scores seriously injured, the Associated Press reported. Rain Adds Peril. In the wake of high temperaturer, some sections found high waters a new menace as rain swelled rivers, particularly in Upper New York State and Western Illinols. In Rochester, directly in the course of the New York dowrpours, 2.11 inches of rain fell in 30 minutes for a record. The Southwest alone continued to | sizzle. Okiahoma baked under a cloudless sky, with Enid reporting the thermometer at 102 and Bartlesville at 101. | Overnight declines in temperature were as much as 20 degrees, notably in Chicago. A low of 60 was reported in Boston. Heavy rains fell in New Hampshire and Detroit had tempera- tures in the 60's after a siege of over the 90 mark. Deaths Numerous. New York, with a high temperature of 82 degrees, reported one heat pros- tration and three drownings. Ohio reported four deaths, Illinois two and New Jersey two. California and Pennsylvania led the States in the number of traffic fatal- ities with 10 deaths reported in each, according to the Associated Press. Six fatalities occurred in Ilinois and Ohio, five each in Indiana and Mis- souri, while New York State, Con- necticut, Texas, Wisconsin and Colo- rado each recorded four highway deaths. North Carolina and Kansas each counted three deaths, while two persons were killed in Oklahoma. Mills Open Peacefully. EAST ROCHESTER, N. H,, July 8/ (#).—The Cocheco Mills, twice closed by labor disputes, opened peacefully today for a third time since May 27, with workers filing through the gates unmolested by pickets. At the same time, leaders of the United Textile Workers of America local union, organizers of the strike protesting wage reductions, prepared to confer wita a Federal conciliator, | UP TO $901,500,000, MORGENTHAU STATES Treasury Secretary S ubmits Estimates of Revenue to House Committee. WHITE HOUSE WANTS PROGRAM CONFINED TO THREE POINTS Middle Classes Would Escape New Levies Now on That Basis—Need of Debt Reduction Stressed. By the Associated Press. The opinion that wealth distribution taxes could be levied to raise $118,000,000 to $901,500,000 annually was expressed to the House Ways and Means Committee today by Secretary Morgenthau. While he was testifying, the White House emphasized that the admin- istration was making no specific recommendation on tax rates and that Morgenthau was simply presenting estimates based on schedules suggested by committee members. A plain intimation was given at the White House that President Roosevelt expected the new tax bill to be confined to the three points he suggested to Congress—levies on high inheritances. on high incomes, and a graduated corporation tax to replace the present flat rate On that basis, it was assumed the President did not expect Congress to make a general revision of taxes by dipping into the medium and lower income brackets. Any Other Expenditures Held Perilous. Morgenthau said: “It would be perilous to regard any part of these new revenues as available for new types of expenditures or as justifying any increase over our carefully budgeted plans for Federal outlays.” He added that the time has come to move in the direction of providing sufficient income “both to meet current expenditures and to make substantial reductions in the debt.” He argued for a plan, however, that will not produce “undesirable social consequences.” “The Treasury’s first concern is with the adequacy of the national reve- nue,” Morgenthau said. “There are times of emergency when the Treasury must finance expenditures in excess of income by borrowings, which increase the public debt. “But the national welfare demands that when such an emergency has passed sufficient income be raised both to meet current expenditures and to make substantial reductions in the debt “The time has come to move in this direction. It would, of course. be unwise to impose tax burdens which would retard recovery. But it would be equally unwise not to call on sources of revenue which would reduce our borrowings and later reduce the national debt without interfering with recovery, and it is my belief that the additional taxes which the President REAL ESTATE FRAUD PROBE IS BEGU Congressional Committee in New York to Hear Evidence in Bond Complaints. By the Associated Press. NEW YORK, July 8—A congres- sional committee headed by Repre- sentative Adolph J. Sabath of Illinois began investigations at the county court house here today into alleged frauds which bondholders in real es- tate have suffered at the hands of protective committees in real estate reorganizations. Sabath said 41 companies are under inyestigation. His explanation of the alleged abuse his committee is aim- ing at is this: “We have discovered that certain houses of original issue (for real es- tate mortgage bonds) have issued false reports that the properties cov- | ered by those bonds are in terrible financial straits; that they have thus brought down the selling prices of the | bonds, and have bought up their own indebtedness at low prices.” He said collusion among houses of issue, banks and guaranty companies was indicated by evidence in certain investigations. The committee arrived today from Washington. work by Wednesday. In event it does not, Sabath said, it will return after Congress adjourns. BOWMAN GRAY,REYNOLDS FIRM CHAIRMAN, DIES Tobacco Company Executive Suc- cumbs to Heart Attack While on North Cape Cruise. By the Associated Press. ABOARD THE S. S. KUNGSHOLM, July 8—Bowman Gray, chairman of “‘ne board of the R. J. Reynolds To- bacco Co., died aboard ship yesterday after a heart attack. He was stricken Priday while on a North Cape cruise. Bowman Gray of Winston Salem, N. C, was graduated from the Uni- versity of North Carolina in 1892. He was married to the former Nathalie P. Lyons, and they had two sent here from Washington, D. C. sons, Bowman and Gordon. 15 Die in New York Storms; 75 Saved on By the Associated Press. ALBANY, N. Y, July 8—Upstate New York counted 15 dead and 5 missing, and property damage in the millions of dollars today, in the wake of the most violent rain and electric storm in recent years. The dead: Arthur Brokaw and Miss Alice Ferris, both of Interlaken, Sen- eca County, drowned when their car was washed from the Elmira-Ithaca highway near Buttermilk Falls. Robert Bronson Hartfleld of Bing- hamton, drowned in the old Chenango Canal, near Greene, when his auto- mobile left the highway. Two children of Mr. and Mrs. Harold Chase of Greene, drowned in a creek near their home. John Solomon and his three sons of Myers, Seneca County, swept down- stream in Salmon Creek when a bridge on which they were standing col- lapsed. Jacob Naronzy, 58, of Pitcher, Chenango County, struck by lightning. George S. Carbell, Ithaca attorney, who fell dead of exertion trying to 'save possessions in his Summer cot- “:‘MMWdLWw Flooded Roads kins Glen contractor named “Sutes” reported drowned when their cottage was washed into Seneca Lake at Hec- tor, N. Y. E Lillian Girous, 45, was reported drowned and one other person, Joseph Liffel, missing, as flood waters swept into Trumansburg, 9 miles from Ithaca. The entire village, with a pop- ulation of 1,700, was reported to be under water. Several towns lost some of their utility services. Communications were also widely affected. Rain began falling again in some sections of the storm area, increasing fears of further damage. A State-wide survey showed, be- sides the deaths, that the storms washed out a score of bridges and several railroad tracks, resulted in the collapse of three dams, drove | numerous families from their homes, halted traffic on nearly all highways and suspended gas and electric service in. Bath. Nearly 75 persons were rescued from marcaned busses and eutomobiles near Bath, where water from 4 to 6 feet deep covered highwaya, “*has It hopes to finish lui now recommended fall within this latter class.” Definite Policy Asked. Republicans immediately snapped up the debt reduction idea. Repre- sentative Jenkins, Republican, of Ohio. among others, objected that the pro- posed taxes would have no substantial effect on the debt. “What we're hopeful of.” remarked Representative Knutson, Republjean, of Minnesota “is a definite policy. We want to get off this merry-go-round | and head in a definite direction.” ‘Then, turning to Morgenthau, asked: “Is your primary purpose to redis- | tribute wealth or raise additional rev- | enue?” | Pacing a battery of bright lights put in place for movie cameramen, the | Secretary replied that his sole pur- pose was to present to the committes estimates which he had been asked to prepare on new tax rates submitted to him by the committee. Yield Estimates Given. On these he said. “Your 18 sched- ules relating to inheritance and gift taxes would produce yields ranging from about $7.000,000 to $728.000,000. “Your six schedules relating to in- creased bracket rates on large indi- | vidual incomes would produce rev- | enue yields from about $5.000,000 to $32,500,000. “Your three schedules relating to a graduated corporation income tax | would produce revenue yields from | about $67,000,000 to $102,000,000. | “Your suggestion relating to methods | of parfially removing the present total | tax exemption of dividends received by | corporations would produce revenue approximating $39,000,000. Revenue's Use Stressed. “Because of our common responsi- | bilitye for safeguarding the national | eredit,” he went on. “we are vitally | concerned in the use which is to be made of the revenue that may be de- | rived from the proposed taxes. “As Secretary of the Treasury, it is my prediction that it would be peril- ous to regard any part of these new revenues as available for new types of expenditures or as justifying any | increase over our carefully budgeted | plans for Federal outlays.” | This was regarded in some circles | as an administration answer to new proposals for paying off the bonus. “The course which I feel sure will appeal to all of you as the only sound procedure is that the revenue derived from these new taxes shall be regard- ed as very definitely ear-marked for reducing future borrowing and paying off the public debt,” Morgenthau con- tinued. “We should set aside the proceeds he "(Continued on Page 3, Column 1) ALLEGED VICE ACE OF HARLEM SEIZED Disclosures of Two Girls Lead to Arrest of Man and Woman. By the Associated Press. NEW YORK, July 8—Although New York's crusade against crime is still three weeks away officially, police anti-vice activities over the week end resulted in the arrest of a man they described as the “ace procurer of Harlem's vice ring.” The man under arrest was listed as Joseph Peppe, 47. Arrested with him | was a woman, Jean Goldstein, 31, | accused by police of operating a dis- orderly house. Their arrest followed disclosures police said were made by two young | girls arrested in a raid last month. The authorities said Peppe and the woman arrested with him were en- gaged in one of the city's “most vicious white slave rings.” Meanwhile, Thomas E. Dewey, youthful special prosecutor in the im- pending anti-crime drive, continued his preparations for the start of his investigation. S