Evening Star Newspaper, July 13, 1935, Page 1

Page views left: 0

You have reached the hourly page view limit. Unlock higher limit to our entire archive!

Subscribers enjoy higher page view limit, downloads, and exclusive features.

Text content (automatically generated)

WEATHER. (U. 8. Weather Bureau Forecast.) Fair tonight and tomorrow,, slightly cooler tonight, gentle northerly winds. ‘Temperatures—Highest, 96, at 2:30 p.m. yesterday; lowest, 71, at 10:45 a.m. today. Full report on page A-9. Closing N. Y. Markets, Pages 14 and 15 Entered as second class matter post office, Washington, D. C. No. 33,310. ah WASHINGTON, D. C, WITH SUNDAY MORNING EDITION ¢ Foening Star SATURDAY, JULY 13, 1935—TWENTY-EIGHT PAGES. The only evening in Washington wit! aper the Associated - Press News and Wirephoto Services. Yesterday’s *¥% () Means Associated Press. Circulation, 121,440 Some Returns Not Yet Received. TWO CENTS. SOVIET-AMERICAN TRADE AGREEMENT FNALLY FFETE Russia Pledges Purchase| of $30,000,000 in U. S. Goods in Year. ACCORDED BENEFITS OF OTHER-NATION PACTS Plan Is Expected to Treble Trade | of Two Countries—$700,000,000 I Debt Not Mentioned. B the Associated Press. i The United States and Soviet Rus- sia today signed a trade agreement expected by officials of both govern- ments to treble the value of trade between the two countries. The action ended 18 years of com- mercial relations which were consid- | ered unsatisfactory. The State Department said the trade agreement, concluded in Moscow through an exchange of notes between ‘William C. Bullitt, the American Am- bassador, and Maxim Litvinofl, Soviet commissar for foreign affairs, pledges the Soviet government to make pur-| chases totaling $30.000.000 in the United States during the next 12 months. Granted Parity. In return the United States has granted Russia all benefits contained in trade agreements already concluded | with Belgium, Haiti and Sweden and | will extend all benefits accruing from | trade pacts to be concluded with other countries. Concessions granted in the Cuban- American trade agreement are spe- cifically excepted. The new agreement contains no mention of. and in no way relates to, the long pending Russian debt ques- | tion involving more than $700,000,000 | in debts contracted by the Czarist and | Kerensky regimes. Negotiations attempting to reach a mutually satisfactory solution of that 15-year-old controversy broke down #1x months ago because of Russian in- aistence on cash and credits, under- stood to total $200,000,000, as an in- tegral part of the debt settlements. No Tariff Concessions. The Russo-American agreement in- | volves no reciprocal concessions in | tariff rates. Although not a part of the Roose- | velt administration’s foreign trade ex- pansion program, the new agreement is intimately related to it and is ex- | pected by American officials to pro- vide a sound basis for mutually bene- ficial expansion of trade. The Soviet government is virtually a “trust” and controls all exports and | imports to and from Russia and is in & position to enforce the agreement. | Officials said the anticipated trade increase was expected to result in a gain of more than 100 per cent over | American exports to Russia in 1934, which amounted to $14,867.000. and to increase by approximately 150 per cent the average American exports | | | cu | ern Ireland be rushed to Belfast was James Roosevelt Intends to ‘Correct’ Situation in Yeast One Firm Makes 86% of It, He Says, so He Will Invade Field. By the Associated Press. NEW YORK, July 13.—James Roosevelt, the President's eldest son, confided today why he accepted the presidency of the National Grain Yeast Co. of Belleville, N. J. He said: “Because one concern manufactures about 86 per cent of the 250,000,000 pounds of yeast made yearly in the United States, and I thought it an excellent opportunity to end that situation as head of a smaller and thriving company.” Roosevelt said he would devote al' his time in the near future to the He gradually will close his insurance | office, he said, leaving John A. Sar- gent, his partner, to conduct it. The President’s son said it was business interest, not interest in the laboratory phases of yeast manufac- ture, that determined his course. He has a financial, but not a controlling interest in the concern. FIRING RESUMED IN BELFAST RIOT Police in Armored Cars Cut Disorder Short—Two Killed, 40 Hurt. By the Associated Press. BELFAST, Northern Ireland. July 13.—Firing broke out again today in Belfast in a short-lived resumption of last night’s bloody rioting, which aimed two lives and wounded 44. Meanwhile, an urgent appeal that every available policeman in North- issued. At the same time police announced a curfew would be imposed at 10:30 | p.m., when all public buildings will} be closed and all citizens must be indoors. The Belfast military garrison was confined to barracks. | George O'Neil, 8 years old, and a | man whose name was not given were | wounded in the newest outbreak of | sniping today. | Police patrols, covering the city in armored cars and afoot, cut disorder short. | Weary police prépared for further | demonstrations tonight when Orange lodgemen were to return from staging a mock battle 30 miles from Belfast in the annual re-enaction of the Bat- | tle of the Boyne. Search Houses for Arms. Police searched houses for arms, | exerting every precaution to prevent a renewal of the clashes. “The disturbance is very serious,” | said the Belfast police commissioner. “The feeling is still most bitter.” Rooftop snipers started the trouble by firing on a Scottish band which HULL PEACE PLEA TURNS SPOTLIGHT ONU. 3. ATTITUDE Italy Claims Adherence to Kellogg Pact After Sec- retary’s Notice. BRITISH HOPE FOR AID IN PREVENTING WAR Statement Issued After Foreign Powers “Misinterpret” Views in Reply to Ethiopia. By the Associated Press. The United States took a central role in the Italo-Ethiopian quarrel today with a statement by Secretary Hull in support of the Briand-Kellogg pact outlawing war. He mentioned neither Italy nor Ethiopia by name but said Washington expected na- tions to live up to the treaty. Rome quarters hastened unofficially to assert Italy had not violated the treaty but was the victim of hostile Ethiopian acts. Military prepara- tions went forward at a rapid pace. London speculated as to whether Hull hinted at the possibility the United States might join England in a de- termined effort to avert the threat- ened war. Reports in Istanbul said Emperor Halle Selassie had ordered crown Jewels and precious religious relics, reputedly including the tablet of the ‘Ten Commandments and Ark of the Covenant, from Ethiopia's holy city of Axum, to a safer interior point. Axum is near the Italian colony of Eritrea. SECRETARY UPHOLDS PACT. Statement Seen Reply to Foreign Na- tions’ Misinterpretation. BY CONSTANTINE BROWN, A reminder to the world that the | United States Government still be- lieves in the Kellogg pact and expects all the signatory nations to live up to their obligations was made last night by Secretary of State Hull in order to dispel the effect of the ad- ministration’s reply to the appeal July 4 of Emperor Haile Selassie of Ethiopia. Secretary Hull gathered from the conversations he had on Thursday with the British, French and Italian Ambassadors that their respective governments interpreted the Ameri- can note to Selassie as a “hand- pact. These Ambassadors intimated this was generally the interpretation given in their countries. This perturbed the secretary, who thought he had expressed clearly America’s aversion to a settlement by force of arms. Statement by Hull. Realizing this was not the case Hull issued the following statemert 1o the press last night: “The pact of Paris is no less bind- | ing now than when it was entered into by the 63 nations that are parties to it. SOMEBODY TO ‘EM THAT THEY'RE ON CHARLIE CURTIS' PREFERRED LIST OF MEN WHO CAN BEAT FDR. IN '36 7 HINTED J\\ / IN THE CAPITOL CORRIDOR. BALKANS MENACE Little Entente to Mobilize if He Is Restored, Leaders Threaten. By the Associated Press. BUCHAREST, July 13.—Foreign Minister Nicholas Titulescu announced today after a conference with Prince Paul, regent of Yugoslavia, that if | the proposed restoration of the Haps- burg dynasty in Austria were carried out, it would mean the automatic | mobilization of the Little Entente armies. “The Little Entente policies with respect to a Hapsburg restoration have been settled on a positive basis, | and mobilization would follow as a minister said. He added that a formal statement probably would be issued in the | course of the day. It was indicated that Prince Paul | and M. Titulescu, who had extended | conferences with King Carol, were satisfied that the recent restoration of the Hapsburg properties by Austria was an internal affair of that coun- tryv which would have no immediate effect on the interests of the Austro- Hungarian succession states. M. Titulescu said the foreign pol- CROWNING OF 0710 9,000-Mile Flight Made in 60 Days By Common Tern ‘Gull Found Dead After Trip From Labrador to Madagascar. By the Associated Press. BOSTON, July 13.—How & common tern apparently flew 9,000 miles in 60 days was disclosed today by the North- eastern Bird-Banding Association. ‘The tern is one of the gull family, but the association is learning that it is a bird capable of long distances and long life. One banded on Tern Island, Ba | the island this Summer. The trip of the far-flying tern be- | gan on a coastal island off Labrador. jr. and within two months of thai | matter of course if the dynasty is | ern tip of the island of Madagascar in | this evening. Te-est ,in Vienne;* the foreign | the Indian Ocean. indicating a flight | | of approximately 9,000 miles. | In announcing this flight, the asso- ciation said it was deemed remarkable | | not only for the distance but because the bird evidently took a course across | the Atlantic Ocean instead of going | down the usual migratory route for | terns along the American coast. | Either the long flight or the climate was too much for the tern, for it was | dead when found. An islander, who | noticed the band on the leg, reported it to consular headquarters and the | report was sent to the United States. | RAIN HALTS HEAT AFTER HIGH OF % Mercury Sent to 71 Early in Day—Scorcher Sets Year’s Record. The heat wave which for 10 days has blistered the country and which yesterday afternoon shattered all ‘Washington records for this year, broke today when a downpour of rain sent the temperature down to 71| | off Cape Cod. in 1924, has returned to | It was banded by Dr. Oliver H. Austin, | degrees. The rain which accompanied the cool weather was heavy, one-third of | an inch falling in 10 minutes, the 1 Weather Bureau reported. The rain nticipated the cool wave which has swept across the country and which date the bird was found on the south- | was expected to reach Washington | Committee of Public Utility Executives | ‘Washington is expected-to have a | | minimum temperature of about CG‘ degrees tonight. The maximum this | afternoon is problematical because | | of temporarily unsettled conditions | following the morning rain. At noon, after the rain had stopped, | the temperature here had increased | !to 73 degrees, 17 degrees below the reading at the same time vesterday. | Total rainfall during the morning shower amounted to 62 hundredtns | of an inch. | POWER COMPANIES ASKED SUM SPENT INUTILITIES FIGHT Senate Lobby Probe Sends! Questionnaire—Hearings to Be Delayed Few Days. INVESTIGATOR DEFENDS SEIZURE OF RECORDS Administration Reported Consid- ering Suspending Work on Quoddy Project in Maine. By the Associated Press. Questionnaires were sent to all power companies today by Chairman Black of the Senate Lobby Committee to ascertain how much money they spent fighting the utilities bill. | Meanwhile, H. A. Blomquist, the ! committee investigator, defended his | action in seizing records at the hotel headquarters of Philip H. Gadsden, $32,000-a-year vice president of the | United Gas & Improvement Co., | and head of the Committee of Utility | Executives conducting the drive | against the Wheeler-Rayburn bill. In Philadelphia Gadsden termed | the action “an unwarranted raid” and | “an outrage.” He told the Senate in- vestigators yesterday the utility peo- ple had spent “a lot of money, but openly and above-boafd” as all rec- ords were available for the asking. May Halt Quoddy Project. New reports were heard today that | the administration may suspend work on the $36,000,000 Passamaquoddy | project to harness the tides of Maine. ‘This project was the focal point of recent testimony obtained by the | House Rules Committee. It will re-| sume its investigation Monday with representatives of utility companies as witnesses. | Black said his committee would | not hold hearings for several days, | to give it opportunity to organize and assemble information. Referring to Gadsden's assertion that the committee investigators did | not spare his personal files Blom- | quist told newspapermen: t “I don't know what are his per- | sonal files, and which are his offi- | cial ones. This is a lobby investiga- | tion.” Went Into Office Files Only. ‘He said he went into files only in | the Mayflower Hotel office of the! and not into the files of Gadsden's $250-a-month apartment in the Carl- ton Hotel. “His secretary and others were with me at the time, and examined every- thing of evidence that I took—both letters, records and others. If Mr.| Gadsden's personal files weré mixed | in the official files, I could not help it.” | Blomguist said at no time during the | search were any records examined save in the presence of office employes | of the utility interests. He added Gadsden returned to his| office while one of the committeemen | Fair Weather Forecast. ! | Fair weather and “seasonable” tem-| peratures are expected to prevail to-/ was still there and at that time ex-| pressed no indignation at the per- CUT IN EXPENSES ASKEDBY C. OFC.IN HITTING TAX PLAN Levies on Corporate Profits Called “Vicious” by Trade Witnesses. COMMITTEE HEARS ALVORD ON INHERITANCE House Group May Ask President to Substitute Excess Profit Tax. By the Associated Press. Suggesting that instead of ralsing $300,000,000 to $400,000,000 in new revenue, the Government should eut expenses by that amount, the Cham- ber of Commerce of the United States today denounced the President’s new tax plan as “disturbing and harmful.” ‘Three witnesses took the chamber's attitude before the House Ways and Means Committee. They were Fred H. Clausen, Horicon, Wis.: Roy C. Osgood, Chicago, and E. C. Alvord, ‘Washington. Clausen opposed the graduated cor- poration tax, Osgood higher personal income levies and Alvord the proposed ivheritance tax. Insisting the suggestion that the present flat tax on corporation in- comes be replaced with a progress.ve levy failed to recognize the maxim of ability to pay, Clausen told the committee: “Taxation of corporate profits solely on the basis of income is so unsound and wrong in principle that it be- comes vicious. “Should Cut Tax.” “In view of the present heavy Ped- eral taxes on corporations and the ex- ceedingly heavy additional taxes which will shortly be placed on them under the provisions of the social security legislation, plans should now be made to reduce rather than increase the corporate tax.” Osgood asserted: “Any large fortune passing to one who is in fact not a good custodian of wealth—in a proper sense—works its own cure. It disappears.” Clausen and Representative Tread- way, Republican, of Massachusetts, sgreed that the effect of a wealth e« distribution plan would be to put per- sons of superior and inferior intels lectual ability on the sam> kasis. “I don't think business men are much concerned about the brain trust.” Clausen replied to a question by Treadway. Sees Upward Trend. Clausen agreed with Representative Cooper, Democrat, of Tennessee, that business was on the “upward trend.” Before today's hearing, sentiment for a stiff tax on excess profits rather than a progressive tax on corporation incomes appeared to be developing in the Ways and Means Committee. One member said privately the President might be asked whether he would accept the substitution. Chair- man Doughton remarked he had “al- ways thought” there was “merit” to from 1932 . » GEI LS R e TR was returning from an Orangemen’s fcles of the Little Entente remained | | formance. the idea of taxing excess profits. | morrow and for several days next Bullitt Explains. Ambassador Bullitt, in Moscow, gave out the following statement concern- ing the agreement, which was made public here by the State Department: “In connection with the trade agree- ments program of the Government of the United States, conversations | were entered into with the Soviet Government with a view to ascertain- | ing the attitude of the Soviet gov- ernment with regard to the expansion of trade between the United States | and the Soviet Union. “It is the purpose of the trade agree- ments program to bring about an ex- tension of foreign markets for prod- ucts of the United States by affording increased market opportunities for foreign products in the United States. “In return for the assurance of the | Soviet government that it will be its policy to increase substantially its purchases of American products, the United $tates is prepared to extend to the Soviet Union tariff concessions granted in trade agreements with other countries. Assure $30.000.000 Orders. “The Soviet government has as- | sured the United States that during the 12 months’ period of this agree- ment it intends to purchase in the United States American products for export to Russia to the value of $30,- 000,000. “Inasmuch as the value of the ex- ports from the United States to the Soviet Union has averaged only $12,- | 000,000 during the last three calendar years, the purchases contemplated by the Soviet government will result in a very considerable increase in the ex- demonstration in celebration of the 245th anniversary of the Battle of the Boyne. Police then opened fire. Thousads of spectators at first were unaware of the shooting and thought those who dropped had fainted. The sound of the shots blended with the rapid tattoos of the Lanbeg Drummers, which were indistinguishable from the bursts of machine gunfire. Those killed were Margaret Brok- erick, 29, and Edward Withers, 18. Rioting continued for hours. Police made many arrests, dragging alleged instigators of the riots from their beds. Some of those wounded by bullets were reported in a critical condition. Police shot into a crowd along York ! street, near the center of Belfast, time after time in an effort to restore or- der. Two detectives in turn were shot in the legs. The bloody night followed a peace- ful and gay celebration of the anni- versary of the battle, which made Protestantism secure in Northern Ire- | land. There have been numerous dis- turbances recently in Belfast involv- ing the Orangemen (Protestants) and Catholics. The trouble last night started when the Orange procession was forced to halt by the arrival of firemen answer- ing a false alarm. A volley of stones, witnesses said, rained from groups, who descended from various streets upon the procession. Police Commissioner Robert Harri- son issued a statement saying the at- tacks were not provoked by Orange- men. (See RUSSIA, Page 3. LEHMAN ASKS FLOOD HELP OF ROOSEVELT Governor Says Crops Are Total Loss in Large Area—Live Stock Destroyed, Fields Eroded. By the Associated Press. MYERS, N. Y., July 13.—Gov. Her- bert H. Lehman called upon Presiden’, Roosevelt today to extend immediste relief to stricken farmers in flood- ridden South-Central New York. As he began the final leg of a three- day tour through the flood zone, the Governor sent a message to the Pres- ident saying, “The need for ¥ederal assistance to stricken farmers is very great. My inspection of the flood sit- uation during the past two days re- veals not only the serious destruction of, property in urban areas, but ihe less spectacular yet very cxtensive damage to rural areas, “In large areas crops are a total loss, live stock has been destroyed. ‘Erosion has gutted fertile flelds. Grevel from the hills has covered many acres of pasture and grain.” The Governor urged President Roosevelt to authorize the A. A. A. “or Five Killed in Belgium Mine. LIEGE, Belgium, July 13 (#).—Five men were killed and three injured in an explosion of fire damp today, 1,000 | feet below the surface in the Lau- monia coal mine. By form and designation it consti- tutes a treaty by and among those nations. “It is a declaration by the govern- ments of the world that they con- demn recourse to war for the solu- tion of international controversies and renounce it as an instrument of na- tional policy in their relations with | one another. “The United States and the other nations are interested in the mainte- nance of the pact and the sanctity of the international commitments as- sumed thereby for the promotion and maintenance of peace among the na- tions of the world.” Implication Clear. The statement, naturally, does not mention by name either Ethiopia or Italy, but the implication in the pres- ent situation is quite clear. State department officials believe the statement will strengthen Great Britain’s hands in its effort to bring about & pacific solution of the Italo- Ethiopian conflict. Public opinion in Great Britain is becoming tired of having their government shoulder all (See HULL, Page 2.) o BLAMES RUM PIRATES BOSTON, July 13 (®).—A pirate band which operated during prohibi- tion is blamed for the scuttling of the rum-runner John Dwight in the mouth of Vineyard Sound in 1923 and the slaying of her eight-man crew. A Federal official, who declined the use of his name, last night said the gang, which operated in Rhode Island during the dry era, hijacked on land and turned pirate on the high seas. The John Dwight mystery has never been solved, but when the bodies of the crew, all mutilated, were washed ashore after the boat was sunk, au- thorities were convinced of foul play. THE EYES OF A PUZZLED WORLD TURN TOWARD ETHIOPIA War clouds darken central Africa where rivers flow to the Nile, warriors are raw meat eaters and moun- «tains are high and impregnable. Read the story of far away Ethiopia, center of the world’s interest today. View its strange countrysid of its colorful history. e and learn the high lights Tomorrow in The Sunday Star pome other appropriate Federal sgency” to extend immediate relief. [ . 4 L) unchanged in every respect, indicat- ing no conclusions had been reached concerning Germany’s desire to ex- | tend her influence in the Balkans. ‘There was & report in political quarters that Germany desired to form an economic bloc with Rumania, Bulgaria and Yugoslavia. It was the belief of many observers here that such an economic grouping would be impossible without the ultimate drop- ping of Czechoslovakia from the Little Entente, thus changing the political line-up in Central Europe. FOES OF OTTO REBUKED. Vienna Spokesman Points Out Reslo- ration May Come Tomorrow. VIENNA, July 13 (#).—The House of Hapsburg, through its spokesman here, today sharply rebuked the Fatherland Front—the pro-govern- ment organization to which all gov- ernment employes and supporters must belong—for presuming to instruct the public in matters dynasty. Baron Friedrich von Wiesner, for- mer press chief under the old Austro- Hungarian Empire and more recently the Hapsburgs' representative in Vienna, administered the rebuke. In an article appearing in the mon- archist organ Der Oester-Reicher, Von ‘Wiesner remarked: “If the secretary general of the Fatherland Front yesterday saw fit to issue instructions to the public to the effect that it is contrary to the in- terests of the fatherland and the dynasty to carry on propaganda for an immediate restoration, it is time to say that this theory is highly debatable. “In fact, international discussion aroused by the new law (the law lift- ing the ban on the Hapsburgs and re- storing their property), has already demonstrated the exact opposite. “Moreover, with the possibility of Testoration becoming a fact tomor- row, one will certainly have to talk about it today. And this right—no, affecting the | PRESDENT LEAVS TODAY FOR 0T | Democratic Gathering Will | Assemble Chiefs in Re- cent Disputes. BY J. RUSSELL YOUNG. President Roosevelt left the White House early this afternoon for the drive to Annapolis, where he | will board the presidential yacht | Bay to Jefferson Island. Accompany- ing him were several of the guests invited to the Democratic party out- ing and conclave scheduled this week end by the Jefferson Island Club. Others will arrive at the island later in the day, and more are sched- uled to make the trip tomorrow morr.- ing. The President expects to return to Washington tomorrow night. Those who are engineering this island week end party insist there is no reason to attach any political sig- nificance to the occasion, but in many quarters the gathering is described as a “get-together of party chieftains” and a party “love feast.” The latter appellation comes from the fact that among the week enders will be Senator Tydings of Maryland and Secretary of the Interior Ickes, who recently engag:d in a bitter verbal battle growing out of the Senate in- vestigation of affairs in the Virgin Islands. Others prominent in the New Deal administration who have had clashes at various times during the Roosevelt administration also will be present. There are those who speculate to the extent that this island party is to serve as the means of restoring har- this necessity—cannot be arbitrarily amputated—not even inside the Fatherland Front.” Leader of the Fatherland Front, it was recalled, is Prince Ernst von Starhemberg, who also heads the Fascist Heimwehr. Heimwehr irrita- tion over legitimist activity recently was openly expressed in the private &rmy’s newspapers, TARGET PRACTICE BEGUN Army Guns Cause “Earth Shocks” on Long Island. FORT HANCOCK, N. J, July 13 (#).—The Army turned loose its 10- inch mounted fortification guns here today and started inquiries as to the cause of “earth shocks” on parts of Long Island, N. Y. Officers said the target practice of the heavy defense guns had been post- poned from yesterday because of poor visibility. Long Island lles about 7 miles across the bay from Sandy Hook. » (See PRESIDENT, Page 2.) Readers’ Guide Amusements Church News Comics Cross-word Puzzle Editorials Finance .... Lost and Found . Mallon Radio . Real Estate . Serial Story ...... Service Orders . Short Story Society ..... Washington Wayside Women’s Features Sequoia and cruise down Chesapeake | | week, no general disturbance being | likely before next Thursday, the | Weather Bureau said. i Today's temperature drop is being | | accompanied by a decrease in the| | humidity, make things more comfortable, it was | pointed out. | The rain which struck Washington | this morning was one of a scattered | ' series of similar showers accompany- | ing the front of the cool wave llong‘ the Atlantic seaboard. There was little rain west of the mountains and the Nation today is generally enjoying| fair, cool weather. 96 Official Maximum. | The local heat wave reached its | | climax at 2:30 p.m. yesterday, when the Weather Bureau recorded a | maximum of 96 degrees. The tem- | perature held within 1 degree of that | mark until after 5 pm. and it was | | ngarly 8 p.m. before the temperature | went below the 90-degree mark. { The lowest temperature before the rain began was 73 degrees, Tecorded at | 7:30_am. today, but at 9:30, soon | T (See WEATHER, Page 2.) i MISS INGALLS RESTS BURBANK, Calif,, July 13 (#.— Laura Ingalls indicated today it will be several days before she goes into | the air in quest of Amelia Earhart's West-to-East flight record of 17 hours 7 minutes 30 seconds. | Miss Ingalls’ $40,000 black-cowled | monoplane suffered no ill effects from her 18-hour New York-Los Angeles hop Thursday and was believed in good condition for the proposed re- | turn trip. “Whenever I found anything def- initely personal I put it aside without examining it,” he explained. Took No Records of Stubs. As to the “personal check book” clared he went hurriedly through a book of check stubs, but took no rec- | ords from it, since it seemed definitely not connected with the lobby investi- gation. I asked one of the employes in the | office, a man named Waters, whether he ted us to get a subpoena to go into the files and he told us it was not necessary.” An experienced investigator, Blom- quist has been active for about two years in the ocean mail inquiry. Prior (See LOBBY, Page 2.) QUAKE JARS CALIFORNIA Disturbance in Los Angeles Area Does No Damage. LOS ANGELES, July 13 (®).—A sharp earthquake shock was felt here and in neighboring cities about 2:55 am., Pacific standard time, today. The disturbance was noted in Holly- wood, Glendale, Pasadena, Long Beach and other communities. Of several seconds duration, it rocked furniture in houses, but apparently did no dam- age. Downtown Los Angeles felt the dis- turbances, but nothing was noted as far south as San Diego, or in Ingle- wood, just south of Los Angeles. One Hollywood resident reported that a parlor lamp was knocked over. | Another described the disturbance as a “swinging sway.” As funeral services were being held today for little Richard and Mary Kerns, generous Washingtonians con- tinued their contributions to the re- lief fund for the family of Sterling Calhoun, jobless colored laborer, who lost his life in a heroic effort to save the drowning children lasi Tuesday. Because of the interest manifest in Calhoun’s case by citizens of both races, and in all walks of life, funeral arrangements for tke colored man ‘were changed today to provide a larger church for his services tcmorrow. Instead of holding the Calhoun rites in the small one-room mission house of the Bethlehem Church of God, as originally planned, it was decided to; conduct them in the Friendship Bap- tist Church, First and H streets south- west. Elder Guy Wills, pastor of the Bethlehem congregation, will officiate. The services will begin at 2 pm. Calhoun has been spered burial in potter’s field by sympathetic citizens who have responded to appeals for funds with which to provide a proper funeral and to give substantial aid to his destitute widow snd four young children, Fund Mounts as Citizens Honor Man Who Gave Life for Children The widow, through this fund, has had a $160 funeral assured for him. This will provide a hearse and two funeral cars. Interment will be in Lincoln Cemetery. The body, taken to the home at 117 L street southwest, today was viewed by scores of men, women and children. Several hundred dollars have been donated from a variety of sources. In response to many inquiries, The Star has agreed to receive additional con- tributions for the family and has ap- propriated $100 of its own for the fund. Other organizations accepting sums include the Washington Daily News, which today reached $280; Co- lumbia Heights Business Men's Asso- ciation, Southwest Citizens’ Associa- tion and Southwest Civic Association. ‘The Star’s fund had been increased by $161.60 today to a total of $313.60. A list of new contributions is printed in column 6, page 2. Detectives at police headquarters “passed the hat” last night at the suggestion of Detective Sergt. Tom Sweeney and collected $45 for the rellef fund. » Talk of that substitution was en- gendered by repeated criticisms hefore the committee of the plan originally advanced by the President. The ad- ministration plan would replace the which also will tend to!| mentioned by Gadsden, Blomquist de- | eXisting flat 13%; per cent tax on | corporation income with a graduated tax starting at 1034 and rising to 1674 per cent. Tacitly, the committee had agreed | to consider a graduated rate of 10 to 172 per cent. It received from Sec- | retary of the Treasury Morgenthau | estimates that a tax of 10 per cent on the first $2,000 of corporate income | increased by steps to a levy of 17!, | per cent on all income over $1,000.000 | would bring $102,200,000 a year into | the Treasury. Plan Held Desiructive. But the Chamber of Commerce has described such a plan as destructive | and confiscatory and the National As- | sociation of Manufacturers has termed it “unsound” from a social, economic | and taxation philosophy standpoint. In his message to Congress on the | new tax plan tne Fresident asserted | the Government “wisely” had decided { on the individual inccme tax plan be- cause it was based on ability to pay. Critics of the corporate income tax idea insisted that viclated the prin- | ciple of the ability tc pay. Noel Sargent, econcmist for the Na- tional Association of Manufacturers, yesterday quoted Senator McAdoo, Democrat, of California as having said when he was Secretary of the Treas- ury in 1918: “Any graduated tax upon corpora- tions is indefensivle in theory, for corporations are only aggregations of | individuals, and by such a tax the numerous small stockholders of a great corporation mav be taxed a higher rate than the very wealthy large stockholders of a relatively small | corporation.” Exemptions Cited. Proponents of the idea of an excess profits tax point out that the individ- { ual income tax is not levied on all | income. There are first the exemp- | tions, and above that everybody pays | 4 per cent. But imposed on top of that general 4 per cent levy is a “sur- | tax” running from 4 to 59 per cent. | The same idea applied to corpora- tions, they contended, would put the heavier burdens only on the concerns which made excess profits. High taxes on excess profits have long been advocated by Senator Couzens, Re- publican, of Michigan, and when the new tax bill reaches the Senate such an amendment will be offered even if the House does nothing about it. Among the critics of the tax plan appearing before the Ways and Means Committee yesterday were Robert L. Lund, representing the National As- sociation of Manufacturers, and George B. Chandler, secretary of the Ohio Chamber of Commerce. Lund's testimony followed a session started by Chandler when he referred to the “present orgy of spending,” to “wastefulness and untimeliness,” to Congress being a “rubber stamp” and to_“fomenting hostility to our Con- (Bee TAXES, Page 3.), Ll

Other pages from this issue: