Evening Star Newspaper, July 9, 1935, Page 1

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WEATHER. (U. S. Weather Bureau Forecast.) Generally fair tonight and tomorrow; little change in temperature; moderate winds, mostly northwest and north. Temperatures—Highest, 83, at noon; lowest, 71, at 6 a.m. today. Full report on page A-. Closing N. Y. Markets, Pages 17, 18, 19 No. 33,306. POLCE OURT ADE INDETHENT SEEN AFTER FUND CHECK Criminal Charges Also Loom Against Several Bonds- men. SHERWOOD REPLACED AS FINANCIAL CLERK Department of Justice Investi- gators Continue Probe—Re- port Findings Guarded. Indictment of one Police Court attache and possible criminal charges against several bondsmen were fore- seen today as the new District grand jury prepared to consider evidence uncovered by the Department of Jus-| tice in a lengthy investigation of alleged irregularities in the Police| Court. The court employe faces indict- ment for an alleged shortage of $1,250 discovered in his accounts by special agents of the Federal Bureau of In- vestigation. It is reported he has| made a full confession. His case will | g0 to the grand jury Thursday or| Friday of this week and an indict- ment is expected early next week. Coincident with preparations for grand jury action, Presiding Judge Gus A. Schuldt of the Police Court| announced the appointment of Wilmer | 6. Schantz to succeed Clayton B. Sherwood as financial clerk of th court. Confirms Report. ‘The announcement was the first official confirmation of reports that Sherwood had quit his position perma- | nently. It had been reported he was | on indefinite leave. Schantz, former | assistant financial clerk, has been act- | ing as financial clerk in Sherwood’s | absence. | One phase of the investigation by | the Department of Justice concerns the activities of five bondsmen. Tt was indicated the investigators are not fully satisfied with their findings in this respect and a further study will be made before grand jury action is taken. A decision on this matter is expected within the next few weeks. Alleged improper conduct on the part of some bondsmen precipitated | the investigation and resulted in the | eppointment of a committee by the | District Bar Association to inquire into the charges. The committee re- ceived confidential testimony from several witnesses, but has taken no ! public action. Report Is Guarded. It also has been reported that the | Department of Justice men discovered other irregularities in the court. These | reports, however, have not been veri- | fied, since the lengthy report sub- | mitted by them to their superiors has | been closely guarded and officials have refused to release any part of it for | publication. s Assistant United States Attorney Henry Schweinhaut, who will present the case to the grand jury, said his only witness this week® will be C. B. | Bolden, an agent of the Division of Investigation. In addition, the jury | will be shown records said to reveal the alleged defalcations of the court official. Appointment of William J. Zepp, former recording clerk, as assistant financial clerk, also was announced | today by Judge Schuldt. Schantz has been attached to Police Court for 8 years. He resides at 459 Delafield place. Zepp, an employe of the court for 4 years, resides at 117 Hesketh street, Chevy Chase, Md. Judge Schuldt said that as a result of the Justice Department's recom- mendations, the court has instituted a number of reforms in administra- tive procedure. It plans to make further improvements, he stated. Bond Recording Changed. Details of the suggested changes in the. report are regarded by the judges as confidential, Judge Schuldt said. All of the proposals. he explained, were constructive and designed to facilitate effective administration of Justice. Among improvements already made, it is known, are new and more effi- cient systems for recording bonds, issuing informations. keeping books and filing papers. The Federal Bureau of Investigation centered attention on the bonding situation and on the recording of penalties and other actions of the court. There had been complaints that court papers were “lost,” that fines were improperly listed and that other irregularities were complicating Justice in the Police Court. The Judges of the court were never under | suspicion in the inquiry, Attorney | General Cummings has said. —_— Five Bandits Executed. VLADIVOSTOK, Union of Socialist Boviet Republics, July 9 (&) .—Five members of a bandit gang, convicted of 10 murders, were executed today. Rising Flood Traps Thousands In Sweeping on Chinese City (Copyright. 1935. by the Associated Press.) CHANGTEH, Hunan Province, China, July 9.—The people of this city clambered for life like rats to- night as a devastating flood engulfed Changteh and the surrounding coun- try. Intermittently working telegraphic service permits the Associated Press to inform the world of the disaster which is taking place here. Every dike but one protecting the | city from Yunan River and Tung, Ting Lake has collapsed. | One hundred thousand homes within Changteh are already under 10 feet of water as this is written shortly before midnight. The flood is still rising. The people are clinging frantically to anything above water, stationary or floating. Property within the city and for ‘nuu around have been ubmznlu! post office, Washington, D. C. | 'Mr. Casey were a complete surprise | operating. Water mains damaged. 11. Entered as second class matter Young Lawyer To Succeed Judge Name of Walter J. Casey Sent to Senate by Roosevelt. Retired Police Captain’s Daughterto Get Judge O’Toole’s Post. The end of 42 years spent in the District Police Court was in sight to- day for Judge Ralph Given when President Roosevelt failed to reap- point him. The vacancy was filled by Walter J. Casey, 39-year-old at- torney, a stranger to every judge of the Police Court. Casey has been practicing here since 1926. He is a graduate of Georgetown Law School The President also appointed Ellen K. Raedy, daughter of Retired Police | Capt. Michael Raedy, as a successor to Municipal Judge Mary O'Tocole, whose | term expired more than a year ago. Judges George C. Aukum and Nathan Cayton were reappointed. The nominations, sent to the Senate today were made on the recommenda- tion of Attorney General Cummings. Judge Given's appointment by Presi- dent Coolidge apparently classed him as a Republican. A resident of the District of Columbia he never had voted nor taken any active part in politics of any party. Both Judges Aukum and Cayton are classed as Republicans. Miss Raedy and Casey are Democrats. The reappointments of Judges Au- kum and Cayton came as no surprise, inasmuch as both had enviable rec- ords and notable indorsements of members of the local bar. The selections of Miss Raedy and the legal fraternity of the city, [}rncuhfly the latter. | Miss Raedy is a native of Washing- Jon. She lives at 1407 Delafield place and has been practicing law in this (See JUDGES, Page 5.) @h WASHINGTON, D. C, Appointed Given JUDGE RALPH GIVEN. WALTER J. CASEY. —Harris-Ewing Photos. FLOOD AID RUSHED; DEATHS TOTAL 37 Bright Sun Aids Workers in New York State. 2,000 Homeless. By the Associated Press. ALBANY, N. Y., July 9.—A bright sun poked frcm behind storm clouds today as Upstate New York pushed | relief work in the wake of flood waters that brought death to 37 persons and caused property damage ranging around $10,000,000. Eight persons were still missing and more than 2,000 temporarily homeless | in a score of villages and cities. | The American Red Cross at Wash- ington rushed relief workers into the| area, and Gov. Herbert H. Lehman| co-ordinated State agencies, including | the National Guard. The summoned | heads of six State departments to the | executive chamber to obtain reports and map a program of relief. Lack of potable water still remained | a serious problem to some communi- | ties, and Dr. Thcmas H. Parran, jr.. State health commissioner, issued a warning that it be boiled before drinking. Railroad Crews Toil. Emergency crews were rushed to washout scenes to repair railroad beds, giving rise to hope resumption of train service running through the southern tier would be effected by nightfall. A dozen town and cities near the Pennsylvania border within a 50-mile radius of Binghamton appeared to be the worst sufferers. Also seriously affected was the territory 60 miles or more northwestward, in the heart of the famous Finger Lakes region around Watkins Glen. The disaster by localities: Ithaca—Three hundred temporarily homeless housed at R. O. T. C. drill hall, Cornell University. Lower busi- ness section and houses flooded. Waters slowly receding. Hornell — One thousand refugees | being cared for in private homes and | many persons using their automobiles as homes. Water receding. Water, gas and light services out of com- mission. Nearby Alfred lost part of utilities services. 300 Ousted at Bath. Bath—Three hundred forced to evacuate homes. No utility service Delhi—Four feet of water swept through town, flooding cellars and first floors. Water receding. Watkins Glen — Several hundred (See FLOOD, Page 3.) Cardinal La Fontaine Dies. VENICE, Italy, July 9 (#).—Pietro Cardinal La Fontaine, 74, patriarch cf Venice, died today of arterio- sclerosis. Fire is adding to the horrors. Only Changteh’s ancient walls save the city from being wiped off the map. The American Northern Presbyteri- an missionaries are attempting to dispense whatever relief is possible, but their efforts are merely a drop in this ocean of disaster. Numerous buildings of this mission are among those already under 10 feet of water, but those remaining are being kept in use by the brave missionaries. All areas outside the walls have long since been submerged. The ancient city, within the walls is help- less—waiting. Outside the waters slowly climb. There, seemingly limit- less expanses of water spread. That portion of Changteh which still is alive looks to be a huge tub in the center of a vast lake, which stretches in every direction farther -than the eye can reach. . The water still is rising. | centimeter guns. i GERMANY TOBUILD FLEET OF 28 SUBS Berlin Announces Pact With| Britain Provides for Two | Battleships. By the Assoctated Press. BERLIN, July 9.—Germany con- centrated her new naval building pro- | gram today on submarines—the dread U-boats of the World War, forbidden to the Reich by the Versailles treaty. A communique, based on Germany's naval agreement with Great Britain, disclosed that 28 submarines are pro- vided for in the 1935 naval building program, three already launched. The program also included construc- tion this year of two battleships, each of 26,000 tons displacement and armed with 28-centimeter guns; two cruisers, each of 10,000 tons displacement and carrying 20-centimeter guns, and 16 destroyers of 1625 tons, with 12.7- 250-Taon Subs. | A size of 250 tons was prescribed for | 20 of the submarines, with two of 750 | tons each and six of 500 tons. | The first of the 250-ton craft in the | underseas fleet went into service June | 29—just 11 days after conclusion of | the Anglo-German naval agreement, | putting their navies on a permanent 100—35 basis. Two more have been launched: The communique explained the speed of the construction by asserting that the keels of some units already were laid this year. Construction of airplane carriers was put over for the 1936 building program, with a year’s course of prep- aration to precede this building. The Versailles treaty limited Ger- many’s navy to coastal defense strength and submarines were banned to her. Under the naval agreement with England, however, the Reich opened the way for a submarine fleet equal to Great Britain's, provided that the question be submitted first to “friendly discussion.” French naval authorities, protesting against the “document signed by two governments in violation of the Ver- sailles treaty,” said it would lead to enlargement also of the French Navy. Italy Also Protests. Italy, too, protested that German naval rearmament should be a question for discussion by the signatories of the ‘Washington naval limitations treaty. 4 NEW PARALYSIS CASES IN VIRGINIA Victims in Southern Counties Bring Total for July TUp to 23. By the Associated Press. RICHMOND, Va., July 9.— Four new cases of infantile paralysis were reported to the Virginia Health De- partment today as State and munic- ipal health officers throughout the Old Dominion intensified their fight against the spread of the disease from North Carolina. The four cases—all from Southern Virginia counties—brought the total for the first egnt dasys of July to 23 and the number since June 1 to 75. Two are in Halifax County and one each in Nansemond and Pittsyl- vania Counties. In the town of Blackstone alone have health authcricies issued manda- tory orders forbidding ckildren w at- tend theaters, Sunday scirools or other public gatherings. but warnings against such assembiies were ex- pressed today by Dr. I C. Riggin, State health comiaissioner, and health officer of Virginia cities Dr. R. W. Garnett, Danvills health officer. and Dr. G. Colbert Tyler, health officer at Newport News, issued similar warn- ings, & | mons yesterday that the responsibility WITH SUNDAY MORNING EDITION LEARUE WAY NEET N EXTRA SESSON ON AFREAN CRISS Meeting Likely in Spite of Threat Rome Will Quit Body Then. CONCILIATION HEARINGS IN HOLLAND COLLAPSE Italians Refuse to Allow Ethio- pian to Testify Incident Scene Was in His Territory. By the Associated Press LONDON. July 9.—An extraordi- nary meeting of the League of Nations Council and Assembly was forecast today in an official communique. Ital- ian circles in Geneva have predicted Italy would resign from the League if a special session were called on the Ethiopian question. The communique was issued follow- ing conferences by Joseph A. C. Ave- nol, secretary-general of the League, with Sir Samuel Hoare, foreign secre- tary of Great Britain, and Capt. An- thony Eden, minister for League of Nations affairs. It said Avenol called on Sir Samuel and Capt. Eden and “discussed various questions which will be dealt with by | the Council and Assembly of the League of Nations in the near future.” | Since the next regular session of the League is scheduled for Septem- i ber, “near future” was taken to mean | an extraordinary meeting was likely. | King George Consulted. Avenol's conferences with Sir Sam- uel and Capt. Eden were held sep- | arately after the foreign secretary had ! talked with King George half an hour. A clarification of whether Ethiopia expects to seek arms in Great Britain is expected with the arrival of the new Ethiopian Minister, announced by the legation as Wargnex C. Mar- tin. Martin already is here, but pend- ing the presentation of his creden- | tials at the foreign office, he has with- | held all comment. Avenol came to London in an effort | to bolster the League and keep peace | in East Africa. Newspapers displayed | prominently today the foreign secre- tary’s statement to the House of Com- for preventing an Italo-Ethiopian con- flict is a collective and not an indi- vidual one. Embargo Held Unlikely. Informed British circles, while de- nying that British munitions were moving toward Ethiopia, expressed a belief today that the government probably would net place any embargo in the way of Emperor Haile Selassie, should he turn to Great Britain after rejeclions elsewhere. Despite repeated rumors that Ethi- opia had approached British munition manufacturers, it was learned official- ly that no application had been made to the government for the export licenses which would be necessary. Peace Effort Fails. SCHEVENINGEN, The Netherlands, | mission seeking to avert war between Italy and Ethiopia decided today to suspend its hearings indefinitely. The members arranged to depart immediately, having already com- municated their opinions to the| agents of the governments they rep- | resented. { The two Italian delegates were re- | ported to have refused to hear a wit- ness for Ethiopia after a meeting, held late yesterday in an attempt to reconcile differences, broke up in failure. Another meeting was called today, with observers predicting free- ly a collapse of the commission. Italians Oppose Testimony. An angry scene was reported to have developed when Prof. Gaston Jeze, legal adviser to the Ethiopian government, asserted that Ualual, scene of the first major frontier in- cident, was in Ethiopian territory. The Italian representatives en- tered a strong protest against such testimony, asserting that the com- mission was empowered to consider only the causes of incidents. They insisted they would hear no more evidence from Prof. Jeze. When the Ethiopian adviser persisted in giving his views the session ended. A proposal to call in a neutral fifth member to resolve the deadlock had been discussed, but the Italian rep- resentatives, awaiting instructions from Rome, had not yet agreed to such a step. Rome Is Adamant. Press dispatches from Rome re- ported authoritative sources as say- ing they regarded the breakdown of the commission session as the death of that body. These sources indicated Italy now would oppose the nomination of a neutral fifth member on the ground that the commission suspended work after an Ethiopian representative tried to inject into its discussion the delimitation of frontiers. Rome May Quit League. GENEVA, July 9 (&) —Italian cir- cles predicted today that Italy would resign from the League of Nations if 8 spectal session of that body were called on the Italo-Ethiopian conflict —but a special session appears likely because of the breakdown in the con- ciliation cormission proceedings. A resolution adopted by the League Council May 25 provided a special session of the Council should be called July 25 if the Italo-Ethiopian abri- trators failed to reach an agreement and failed to appoint a fifth arbi- trator to act as umpire. It also pro- vided for a Council session August 25, at all events, if the dispute had not been settled by that time. 'Salt Lake City Shaken. SALT LAKE CITY, July 9 ().—An earthquake of sufficient strength to awaken sleeping residents and rattle dishes and pictures shook Salt Lake City and vicinity at 3:53 a.m. (Moun- tain standard time) today. The first shock was followed by sev- eral slight tremors. The temblor took a directional movement north and south. Damage was negligible, TUESDAY, JULY 9, 1935—THIRTY-SIX PAGES. VENTRILOQUISM ON THE DELTA. | ¢ Foening Star =S Now, SHO¥Y R =\ | ASMART LIL )| FELLER You ARE-- TELL ‘EM_WHOs BOss! The only evening paper in Washington with the Associated Press News and Wirephoto Services. Kk okok -SUH, YAs-SUH! ATAH LONG "BIG CHIEF N\ | IS N DOWN HYAH SUH! g MCARL KILLS PLAN 10 LIMIT BODERS Pledges to Observe Future| Wage-Hour Legislation Ruled Not Binding. A stop-gap arrangement in the ab- sence of recovery act codes, under which it was proposed to bind all per- sons entering into contracts with the Government to abide by any future legislation covering wages, hours of labor and employment ages, has been knocked in the head by a decision of Controller General McCarl, it was disclosed today. The proviso may be viewed only as a “request” on potential bidders, Mc- Carl held, in a decision to the ad- ministrator of veterans' affairs in which he said a bid could not be re- jected because the person making it | refused to subscribe to this principle. The plan was advanced from the Procurement Division of the Treasury, which proposed that the agreement replace the requirement for code com- pliance on all Government bidders, knocked out when the recovery act was volded by the Supreme Court. General Law Cited. » In view of the requirements of the general law on Government con- tracts—namely, that they go to the| lowest qualified bidder—*there appears | July 9 (A.—The conciliation com- | no authority of law for requiring bid- ders and prospective contractors of the United States to sgree to such pro- vision as a condition precedent to con- | tracting with the United States,” Mc- | Carl said. The decision also repeated a portion | of a letter from McCarl to the Treas- ury on June 24, in which he sug- gested that there should be some stat- | utory support for the proposed bidding | restriction. “The provision,” he wrote, “reserves the right to modify the contract in the event subsequent legislation should require observance of minimum wages. maximum hours, etc. and to such ex- tent as there mav be irvolved in ad- justments additional drains on ap- propriations. there seemj esseniial ‘a statutory requirement as basis iliere- fore, else adjustments might create deficiencies in contrevention of law and thus would be unauthorized, not- withstanding ~ anv administrative reservation in contracting. Contracts obligating appropriations must be defi- nite and certain.” In the current dectsion McCarl also repeats that where bids, based on code compliance, stil! are open, they must be revoked, and new offers asked. BANK BILL SPEED URGED BY 0’CONNOR Informs President Prompt Action Is Necessary “to Clear Atmosphere.” J. F. T. O'Connor, controller of the currency, reported to President Roose- velt today a need for prompt action on the banking measure “to clear the atmosphere.” “It is vital that business and the Government know as soon &s possi- ble,” O'Connor said, “what the new banking law will be and what regula- tions are necessary.” The legislation, already passed by the House, is now before the Senate, with an early vote in prospect, Readers’ Guide Page. Amusements ...........B-16 Cross-word Puzzle .B-12 Editorials . Finance ..... Lost and Found . Mallon .. Radio .. Short Story ... Service Orders . Serial Story Society .. Sports . Vital Statistics . Washington Wayside Women’s Features ...B-10-11 ' Proposed Tax Bill Would Skyrocket Inheritance Levies By the Associated Press. If a fellow had $10,000.000 and his old dad tried to leave him a legacy of $10,000,000 more, there wouldn't be much fun in it ex- cept for the tax collector. ‘That is. there wouldn't if Con- gress should decide to enact one of the 29 alternative wealth tax schedules now before a House committee for consideration. The schedule calls for sky- rocketing inheritance taxes in cases where the beneficiary of the legacy already has scads. The son who already had $10.- 000,000 would have to pay 94 per cent of the second $10,000.000 to the Government. So he would get only $600,000 of it. ICKES DEMANDS JUDGE'S REMOVAL Says Wilson “Brings Justice | Into Disrepute” in Vir- gin Islands. By the Associated Press Asserting that Judge T. Webber Wilson was “bringing the administra- tion of American justice into disre- pute in the Virgin Islands.” Secretary Ickes today demanded his removal for “judicial misconduct.” The judge, appearing as a witness against Gov. Paul M. Pearson in a Senate investigation of the Virgin | Islands administration, testified yes- terday that “administrative interfer- ence” with justice in the islands had been attempted there and that he had | been threatened with being “put on the spot” in the newspapers unless he | granted a new hearing for a Govern- ment employe in a criminal case. Secretary Ickes, at a press confer- ence, also assailed the conduct of the Senate committee’s investigation and said he had expressed his views in a letter to Chairman Tydings, Demo- | crat, of Maryland. He renewed his protests against the committee’s re- fusal to permit him to cross-examine witnesses. Held Opinion Long Time. Referring to Judge Wilson, a former member of Congress from Mississippi, the Interior Secretary, under whose department the Virgin Islands are ad- ministered, said he had felt for a long time that Wilson should be dismissed, that he could be removed at the pleas- ure of the Attorney General. Ickes declined to say whether he had taken his protests to President Roosevelt or Attorney General Cum- mings. Recalling the Leonard MacIntosh case, which was cited by Judge Wil- son yesterday, Ickes renewed his as- sertion that Wilson had acted “as prosecutor, judge and jury.” “His justification,” he added, “was that it was permitted under the Dan- ish code, but that is utterly abhorent to the ideals of Anglo-Saxon jurispru- dence.” “Harangues” Charged. Secretary Ickes complained that Judge Wilson had fined the Govern- ment prosecuting attorney “because he didn’t appear in a case that wasn't on the docket,” and added: “Wilson was always haranguing the mob from the bench. He allowed a gentleman from Harlem, Casper Hol- stein, to make a speech.” Reverting to the conduct of the Senate inquiry, he asserted that if the committee “wants to bring out the facts” they should allow him to cross- examine witnesses. “The hearing ought to bring forth just a few facts,” he said grimly. “The only witnesses have been those I have discharged for inefficiency, incompetency and disloyalty, Mr. (Charles) Gibson and Mr. (Paul) Yates.” Meanwhile, Yates, a former news- paper man who was ousted as Gov. Pearson’s administrative assistant, continued his testimony before the committee with a charge that Pear- son tried to “buy up the press” and control public opinion in the islands and in the United States. Yates at one point quoted the 64- year-old Governor as saying *“I am (See VIRGIN ISLANDS, page 4.), 1 TAXBILL LIMITED T0 ORIGINAL PLAN | Committee Decides to Have Hearings Only on Levies | Roosevelt Wants. | By the Associated Press bill to levies only on individual and corporate incomes. inheritances and gifts was reached today by the House Ways and Means Committee. | Proposals for broadening President Roosevelt's tax program to include | sales taxes and other “nuisance” levies. | as well as other revenue problems were discussed, but the decision was to confine the legislation to the points outlined originally by the President. | After a brief committee session to-| day Chairman Doughton, Democrat, of North Carolina told newpaper raen: “We agreed unanimously to limit the hearings to the proposals outlined in the President’s message. Everybody knows we cannot go over the whole tax fleld without indefinitely prolong- ing the hearings and the session of | Congress.” Final Bill May Be Limited. Members interpreted the decision to limit hearings as a tacit agreemem‘ to limit the finally-approved bill | The New vork Board of Trade's support for increased taxation as a means of balancing the budget. but its strong opposition to any “class legislation” taxes, were expressed to- day tefore the committee. M. L. Seidman, representing the | New York agency, interpreted the President’s suggestions as having been made not only to raise revenue. “but also, and perhaps chiefly, with the view of redistribution of wealth.” | “The Board of Trade.” he said, “is unequivocally and most emphatically | for increased taxation, but strongly its opposition to class legis- | lation.” Budget Balancing Desired. Its ideas, he continued, are: “That the new revenue legislation should be passed solely for the pur- pose of balancing the national budget. “That the practice of meeting defi- cits by borrowing more money should be abolished as quickly as possible. “That the imposition of new taxes be paralleled by effective steps reduce our governmental expendi- T e, “That the increase in taxes should be applied not only to the higher income and estate tax brackets, but that taxes on all incomes and on all estates should be proportionately advanced.” The idea of an enforced leveling down of big fortunes, Seidman said, is not mew, but “practical obstacles have been recognized and common sense has prevailed.” Such a policy, he asserted, is based on the assumption that no one de- rives any benefit from wealth unless he owns it. Corporate Tax Opposed. Seidman likewise protested against the proposal to replace the present flat 13% per cent corporate income tax with a graduated rate on the conten- tion that the latter “would be a hard- ship upon stockholders having small incomes but owning stock in large corporations.” He indorsed the proposal of a con- stitutional amendment to permit tax- ation of tax-exempt State and Fed- eral securities. “Whatever be the basis of tax re- adjustment,” the witness said, “let voices | to | Yesterday’s Circulation, 123,040 Some Returns Not Yet Received TWO CENTS. BREWSTER CALLS CORCORAN “LIAR” ONQUODDY DENIAL House Inquiry Into Threat Charge Is Thrown Into Confusion. REPRESENTATIVE SAYS THEY MET IN CAPITOL R. F. C. Lawyer Told Him to Vote for “Death Sentence” or Lose Dam, He Repeats. By the Assocated Press Representative Brewster, Republic- an, of Maine, threw the House Rules Committee utilities lobby investiga- tion into a momentary uproar just before the close of its first hearing today when he shouted, “You're a at Thomas Corcoran, R. F. C. attorney, who was on the stand Corcoran had just described as “baseless” an assertion by Brewster, a former Maine Governor, that the R. F. C. attorney had threatened to stop work on the Passamaquoddy tide- harnessing project if the Representa- tive did not support President Roose- velt on the utilities bill before the House. Concluding 2 long recitation of his contacts with the former Maine Gov- ernor, Corccran said that just before the vote Brewster indicated he not only would not make a speech for manda- tory abolition of holding companies but would not vote for it. 0’Connor Bangs Gavel. Corcoran said Brewster asked thought it would be all right ducked back to th t “You're a liar,” Brewster sk from his seat, farther down the con | mittee table. ‘While Chairman his Uaanimous decision to limit the tax S ened to stop work o) presence of Dr. E rector of the In territories div ing also hed President Roosevelt. Corcoran Prepares Statement. In a prepared statement Corc set out “a summary of my ent relations with Mr. Brewster.” Here is Corcoran’s account of th: disputed conversation “I therefore said to Mr. Bre in effect, if your peculiar critical sition is so delicate as you say, I want to make it clear that I am no accusing you of running out, but that it is best that you and I be brutally frank now to avoid personal mis- understanding as to our relations on ‘Quoddy’ in the future “If, as you say, you are not a free cally and must take power pport into your calcula- tions, then you'll uncerstand perfectiy from now on you can't expect me to trust you to protect ‘Quoddy’ or trust your assurances that we’ll get that Maine Power Authority out of the Maine Legi ure. Says Meeting Was Arranged. “Mr. Brewster said he wanted to see me and that he was making ar- rangements to see Dr. Ernest Gruen- ing. I told Mr. Brewster that I would prefer to see him at the same time that he saw Dr. Gruening so that the convi tion could be ‘three-cor- nered.’ ” “Talking alternately to Dr. Gruen- ing and to me, Mr. Brewster arranged an appointment with both of us for 1:45 in Statuary Hall in the Capitol The vote was to come between 2 and 2:30. I met Dr. Gruening in Stat- uery Hall at 1:40. Mr. Brewster was late, He arrived at 2 minutes of 2 The vote occurred at 2:10 “Mr. Brewster then made it clear to Dr. Gruening and me that he was not only not going to speak for the substitution of the Senate sections but | that he was not going to vote for them. This was the first indication I had had that he would not even vote for the amendment. Says He Said Nothing. “Dr. Gruening argued with him, while I stood by saying nothing. “Dr. Gruening's argument in sub- stance was that to refuse to vote for the Senate amendments would run contrary not only to the specific ex- pectations Mr. Brewster had given | as to his action on the bill, but was | directly contrary to what Mr. Brew- ster had always agreed upon with Dr. Gruening as fundamental philosophy on the power issue.” As if in answer to intimations that the lobby inquiry might be a white- wash, House Rules Committee Chair- man O'Connor sought and obtained last night the approval of the House for a resolution arming the committee with power to subpoena witnesses. A request for $50,000 to conduct the in- quiry also is pending. 0’Connor Pledges Full Inquiry. ‘The earlier resolution had granted neither funds nor the power of com- pelling testimony. Representative (See TAXES, Page 4.) (See UTILITIES, Page 4.) McCarl Bars $12,455 Payment Morgenthau Owes Cummings Secretary of the Treasury Morgen- thau owes Attorney General Cum- mings $12,455.44, but Controller Gen- eral McCarl won't let him pay off. The indebtedness resulted from the action of the Department of Justice in being big-hearted and coming to the aid of the Treasury in prosecut- ing a claim for $1,275,644.52 against Charles E. Mitchell, former chairman of the board of the National City Bank of New York, through the Board of Tax Appeals. Wanting outside counsel in the case, which involved collection of income taxes reputedly overdue, the Treas. ury, barred from using its own ap- A \ propriation for such purpose, pre- vailed on the Department of Justice to “underwrite” the services of the special aides. It was when Justice sought reim- bursement from the Treasury, after paying counsel, that McCarl stepped in, and, it was disclosed today, he has refused to review his action. When it is not lawful for you to do something for yourself, you can’t hire some one else to do it, McCarl said, in effect. Incidentally, the case, heard a year ago, when it attracted national atten= tion, is still hanging fire,

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