Evening Star Newspaper, July 14, 1935, Page 4

“HOOVERISM™ HIT BY SENATORHOLT Predicts Holding Cormpany Fight Will Be Main Is- sue in 1936. By the Associated Press ST. PAUL, July 13—The Nation's youngest Senator, Rush D. Holt of West Virginia, denounced “Hoover- ism” to younger Democrats of five States today and predicted the hold- ing company fight would be a princi- pal issue in the 1936 campaign. “The theory of rugged individual- ism as proclaimed by Hooverism,” Senator Holt told the five-State regional conference, “pushed agricul- ture down to its low level. “Agriculture is better off today | * than in the days of Hoover and the | £& farmer should not be forced to sell his products below the cost of pro- duction. “Torylsm is not confined to one party,” he added. “There are some Tories in the Democratic party who want the liberty they had under Hoover—the liberty to starve to death. Under Hoover rugged individualism | meant a man had to be a very rugged individual or he became a ragged in- dividual.” Declaring the Washington power lobby “stooped to every known scheme” to defeat the President, Sen- ator Holt said it was his opinion “the holding company fight would be one of the principal issues in the 1936 presidential campaign.” | “I am certain,” he said, “that the people will accept President Roose- velt's views overwhelmingly.” — Taxes (Continued From P?“‘,P“,gf‘ of from possibly 10 to 17 per cent, the | smaller corporations paying the small- | er tax. Organized business has charged the effect would be to check large, effi- cient corporations, in which the sav- | ings of thousands of small stock-| holders are invested, and nullify the | business of “the smart man, bringing | him down to the level of the man of | less business acumen.” ‘The argument against the grad-| uated corporation tax which carried ‘The air-cooled committee room the stand to express their views on 1ill the air. of the House Ways and Means Com- mittee became heated again yesterday as additional business leaders took the new administration tax program. At left, from top to bottom: Fred H. Clausen of the United States Chamber of Commerce, Representative Treadway of Massachusetts, a member of the committee, and Roy C. Osgood of Chicago. At right: Chairman Doughton, in a series of poses, first puzzles, then yawns and ponders as statistics —A. P. Candid Photo. increased income taxes in the higher brackets. Sullen Sentiment Grows. In the House and Senate sullen sen- | timent was developing against the proposal to rush the bill through this session. Counteracting this under- cover drive was a new move by House liberals to sign up a majority of the | membership to a “round robin” against adjournment until the tax most weight with the dominating side of the committee, a Democratic leader confided, was the following by Noel Sargent, secretary and statistician of the National Association of Manu- facturers: “Henry Robinson invests $1,000 in & $500,000,000 corporation, which earns a 5 per cent profit, or a total of $25,000,000. Considering now only the first proposed table of corporation in- | come taxes, we find that the $50 earned upon Robinson’s $1,000 invest- ment would be taxed at 17! per cent, or $8.75, before he would be entitled to receive any dividend. | Tax Less on Lower Income. “Fred Adams, his neighbor, with the | same annual income, invests $1,000 in a $100,000 corporation, Which also earns 5 per cent on its capital invest- ment, but because the total corpora- tion profit in this case is much small- er, the $50 earned on Adams’ $1,000 investment will be taxed only 12 per cent, or $6, before he is entitled to receive a dividend. “Here are two men, with equal in- comes, equal investments and equal earnings on their investments, yet under this proposal the man will be | penalized who has invested in !he; large company.” It was apparent that Chairman Doughton and other Democratic lead- | €rs on the committee are sensmva: to the criticism that they are trying to railroad the bill through without sGequate hearings. Chairman Dough- | ton denied a bill has been “sent| cown” to the committee by the ad- ministration and in this connection fought to minimize talk of “must” orders from the White House. In the course of wrangling between the chairman and the Ohio member, Mr. Jenkins asked why the Ways and Means Committee had waited since January and done nothing on taxa- tion until recently. Chairman Dough- ton admitted he did not know why the President had waited until re- cently to send in his tax message. Revenue Guesses Continue. As the hearings drew to an end, guesses as to the total revenue to be Taised continued, but seemed to have little more foundation than hereto- fore. The final hearings today were marked by vigorous attacks on the proposals of the administration by Tepresentatives of organized business. The sliding scale corporation income tax was especially attacked. Appearing before the committee to- day representatives of the Chamber of Commerce of the United States were Fred C. Clausen, Horicon, Wis., man- utacturer; Roy C. Osgood, Chicago benker, and E. C. Alvord, economist. Mr. Clausen warned that the Gov- ernment through loans and advances had a $1,700,000,000 stake in corpora- tions of various kinds and that in- equitable taxes might endanger inter- est apd principal payments. Mr. Osgood proposed that present estate taxes be lifted if new revenue was needed instead of the Federal Government going into the inheritance tax, which, he said, if of confiscatory character would “remove incentive to thrift and endeavor.” Plant Shutdowns Feared. “In this connection I make bold to say,” Mr. Osgood said, “that the best Justification of a capitalistic system is the fact that, by and large, wealth tends to come into the possession of people who are the best custodians for it.” He concluded with a warning that such taxes might discourage en- terprise and cause shutdown of in- dustrial plants. George McCafrey, research director of the Merchants’ Association of New York, contended that “enactment at this session of Congress of any of the proposed plans now under considera- tion by the committee or any other proposal for the so-called distribution of wealth would be most imprudent and unwise.” He urged, instead, that new taxes, which he recognized as “in- evitable,” be deferred “until such taxes may be duly considered and enacted as part of & properly co-ordinated plan for balancing the Federal budget.” “In recommending to this commit- tee that it refrain form proposing any tax program such as has been sug- gested during the present session,” he said, “let us suggest very strongly that this country solve the problem of bal- ancing its budget on the basis of economics rather than under the whip of politics.” Mr. Alvord asserted the present graduated personal income tax “should be preserved and not discredited by Tates or other provisions of inequitable or punitive character” in hitting at | legislation is acted on. | A source close to the White House sald that the activities of the Chamber | of Commerce of the United States and | the National Association of Manufac- | turers against the entire program was | spurring the administration on to try- | ing to get the legislation through as | soon as possible. Before the Ways and Means Com- mittee, the Chamber of Commerce representatives went into much detail in their gbjections and were closely grilled by Democrats of the com- mittee Mr. Clausen was asked his opinion of an excess profits tax instead of a | graduated corporation levy. He held i and should be utilized only in event of war or similar emergencies. He held the President’s program was “a social reform measure” which | would reduce size of corporations, lead to reduction of employment and higher cost of products of industry. He held there was danger of the Government becoming “a partner in business” in the President’s program. Representative Allen T. Treadway, Re- publican, with this view and said he was “tre- mendously afraid of it.” James L. Donnelly, representing the Illinois Manufacturers’ Associa- tion, opposed the plan to graduate corporation taxes upward solely on the basis of income. Rabbi Backs President. The President's program was strongly defended by Rabbi S. E. Goldstein of New York, chairman of the Commission on Social Justice of the Central Conference of American Rabbis. He criticized the stand of the United States Chamber of Com- merce. He said: “The President is correct in stating that our present revenue laws do not prevent an unjust concentration of wealth and economic power. What the President is endeavoring to do is to democratize our economic organiza- tion and income. What the Chamber of Commerce is striving to do is to maintain the autocracy in our eco- nomic life that is largely responsible for our economic collapse. America cannot tolerate an economic autocracy together with a political democracy. ‘We cannot survive politically free and economically enslaved. The Presi- dent’s program of taxation will dis- tribute income justly and aid us to economic freedom.” Herbert Benjamin of New York, prominent Communist, in a statement argued for increased taxation of wealth and supported higher inheri- tance, income and corporation taxes. t would be impossible to administer | of Massachusetts agreed | | Mr. Benjamin appeared for the Na- | tional Joint Committee for Genuine | | Social Insurance. He indicated there | had been an effort to shut him out of a hearing and said he was not notified until this morning he could appear. He then rushed to a plane | and got here in time to speak this afternoon, just before hearings closed. Representative Samuel B. Petten- gill, Democrat, of Indiana, foe of the “death sentence” in the utilities bill, spoke for & moderate tax on holding | companies. He held this would grad- ually simplify the holding company structure without undue hardship. (Copyright. _1935. by the New York Herald Tribune.) Congress (Continued Prom First Page) | fusal to pay its obligations in gold, | when it had promised such payment. This latter bill will lead to & lot of | talk about “repudiation” and about the effort to shut citizens out of the courts. And the Senate is still await- ing the banking bill, slated to be up for discussion as soon as the A. A. A. bill, now the unfinished business, has been disposed of. The A. A. A. measure has run into several snags in the Senate. It has been amended in a number of par- ticulars not desired by the Wallace- Tugwell group, and the chances are that it will be amended in more. The administration may meet defeat | on its proposal to prohibit and pre- vent the payers of processing taxes from getting a refund of these taxes from the Government, should the act as originally drafted be held by the | Supreme Court to be unconstitutional. The administration scored a victory in the House during the last week in connection with the bill "and increasing the powers of the Ten- nessee Valley Authority. The House Military Affairs Committee lost out there. The House a week earlier had administred a drubbing to the Presi- in the public utility holding company bill. The Democrats in that body, however, did not relish the idea of defeating Mr. Roosevelt twice in suc- cession on two separate measures. After all, politics is thicker than water, especially when the Democrats know that a national election is to be held next year, and they have to run on the same ticket with the President. To discredit the head of their ticket would not be good poli- tics. With this victory on the T. V. A. to encourage them, the administra- tion leaders are trying now to bring about final passage of the holding company bill with the “death sen- tence” clause reinserted. The bill has been sent to conference and the Sen- ate Conference Committee has been packed 4 to 1 in favor of the death sentence clause, although the Senate voted that clause into the bill by a margin of only one vote. The House What a Difference a Little Ready Money Can Makel * Bifls for the rent—the butcher—the grocer—the Iceman —and a payment for the doctor— or insure ance . . . where is your new suit or your vacation money coming from? Suppose you had a lump sum of ready cash—to pay all these bills . . . then with your income budgeted to regularly set aside a cer- tain sum—you could face the future care-free. Decide how much you can set aside—then come In and tell us your money needs. Morris Plan lends $120 to $25,000 for any worthy purpose. MORRIS PLAN BANK Under Supervision U. S. Treasury 1408 H Street N. W. Washington, D. C. ’ Virginia to Determine Cost amending | dent on the “death sentence” Clause (— JUSTICE COURTS AUDITIS PUSHED of Operating Under Law Passed Last Year. By the Assoclated Press. RICHMOND, Va., July 13—An intensive audit is being made this month of the 90-odd trial justice | courts of Virginia, State Auditor L. McCarthy Downs said today. ‘The audit was begun July 1, the anniversary of the beginning of the system, which was established Ly an act of the 1934 General Assembly. Every effort is being made to com- plete the study this month. Mr. Downs said. One of the objects of the audit is to determine to what degree each court paid for its own operation by collecting fines and fees, as checked against the operating expense. ‘The Assembly appropriated $200,000 from the general fund for the current biennium—roughly $1,000 a year to each of the courts—to help bear the costs of the system during the forma- tive period. A few counties have combined to operate .one court, and three counties have not reformed their interior court systems to come within the scope of the 193¢ act. These are Henrico, Chesterfleld and Arlington. Efforts are being made to bring them within the system, so that all laws that might conflict with the 1934 statute can be repealed. A subcommittee of the Governor's advisory system is also studying the trial justice system in the light of a year's experience, and is expected to report its findings soon to the Governor. VETERANS IN HOSPITALS Legion Auxiliary Perfects Plans to Hasten Relief for Kin in Distress. By the Associated Press. Families of disabled war veterans will be given aid while the veterans are recovering in Government hos- pitals under a plan announced yester- day by Mrs. Halsey D. Cory, rehabilita- tion chairman of the American Le- gion Auxiliary. The plan announced from Legion ASSURED FAMILY AID GATES OF HANKDH POUNDED Y FLOD Coolies Swarm to Ballast Dikes as Refugees Hud- dle in City. By the Axaocln:d Press. HANKOW, China (Sunday), July 14.—Swarms of coolies today strength- ened dikes which threaten to open and loose the raging Yangtse River on the city. Leaks have opened in places, and the river waters have penetrated to the heart of the city, driving the resi- dents to upper floors and filling them with fear that the flood embattlements cannot long stand. Refugees, sur- rounded by their chattels, are huddled in the center of the city. Dykes protecting the neighboring city of Hanyang—a metropolis of more than 100,000 inhabitants—finally gave way today before the ceaseless batter- ing of the Han River, and the city lay half submerged under the weight of millions of tons of muddy water. The frantic populace fled. Only a small section of the city escaped in- undation. Homeless residents were | streaming across the river into Han- kow as rapidly as the available boats could carry them. A heat wave over the Yangtse Valley added to the suffering of the terrified people. Rain, accompanied by hail, at Lan- chow, Kansu Province, converted mountain streams to torrents which destroyed roads and crops. These streams feed the already swollen river, now raging through Shensi Province. Heavy rains are reported at Kalfeng, Honan Province, adding to the flood danger of the Yellow River. West Shantung is overrun with floods pour- ing southeastward along the Grand Canal. At Kiukiang, the Yanztse reached its highest point since 1870, at 456 feet. Its volume is increased by the vast inflow from the Han River and | Tungting Lake, which have devastated the country surrounding them. The death toll and property damage | are incalculable. Floating bodies are not an uncommon sight throughout the stricken region. BOMBINGS IN NIGHT " PROBED AT TACOMA Police Fear More Disorders When Lumber Mills Reopen To- headquarters would work as follows: A contact worker will call on a vet- eran within 24 hours after he arrives in a hospital. mittee in the home community will initiate arrangements for the care of the family, either through local re- lie agencles or by direct work of the auxiliary members. conferees, however, are 3 to 2 against the “death sentence” clause. The prediction was made last night that either the bill will finally be passed without the “death sentence,” | or ft-will fail to go to the President and will die in the conference stage. Tied up in conference for more than | two weeks, the economic security bill, | one of the major measures of the | Roosevelt program for uhis session, has | continued to lag. The Senate wrote | into the bill by a substantial majority an amendment offered by Senator Clark, Democrat, of Missouri, per- mitting the Retirement Board to ex- empt from the operation of the Fed- | eral plan any company which has a retirement plan of its own, as good or This s one of the principal matters at issue between the Houses in confer- ence. Another js the final decision as to how the law is to be administered. ‘The House bill sets up an independent agency for that purpose, while the Her report to a com- | better than the Government plan. | morrow. | By the Assoclated Press. TACOMA, Wash, July 13—Five bombings during a night of terror, following upon lumber strike rioting | here were investigated by police today while National Guardsm2n prepared for more possible trouble Monday with the reopening of mills. About 40 persons remained in de- tention, having been arrested during the four hours of skirmishing between | strike pickets and militiamen yester- day afternoon and last night. Many | persons were bruised and cut as the guardsmen turned back an attempted parade of strike demonstrators, The Federal Mediation Board, ap- pointed recently by Secretary of Labor Frances Perkins to arbitrate the Pa- cific Northwest strike, announced it was satisfied with the Seattle situa- tion and would come to Tacoma next week. The West Coast Lumbermen’s Asso- | clation issued a statement that the strike closing its tenth week today has cost employes of the logging and lumber industry $5,000,000 in pay rolls lost. | Weight Drug Is Fatal. LOS ANGELES, July 13 (®.—A desire to be slender led to the death today of Frances E. Jacques, 24, physi- clans at the General Hospital reported | Senate turns the work over to a board in the Department of Labor. She died from an overdose of & drug used to take off weight, they said. of the Famous KELVIN NO DOWN PAYMENT You Can Pay as Little as 15¢ A DAY A Large and Beautiful Display 21 Anniversary ATORS Jordan’s Budget Plan Featuring®a Kelvina- tor for every home— at a price for every purse. You are in- vited to see this com- plete display at your earliest convenience —to learn what Kel- vinator has given the world in its 21 An- niversary models! ARTHUR 1239.6G Street HOME OF PIANO COMPANY } THE CHICKERING PIANO _] JORDAN ~Cor. 132 NW. John D. Rockefeller photographed last week at his home in Lake- wood, N. J,, where he celebrated his 96th birthday anniversary. —Copyright, C. E. Englebrecht from Wide World Photos. VAN DOREN ELECTED 2d Division Honors D. C. Man and Votes City Session. CINCINNATI, July 13 () —Vet- erans of the 2d Division, A. E. F. Asso- ciation, of Washington, D. C., as president and chose the Nation’s Capital as their 1936 meeting place. Maj. Frank Mason, New York, was elected first vice president; Capt. F. Israel, Washington, D. C. secretary; Arthur Counihan, Washington, assist- ant secretary; W. Sykes, Pittsburgh, publicity officer, and Thomas Mason, Washington, national sergeant at arms. Dedication of & 2d Division me- morial will be a feature of the 1936 | | Washington meeting, Van Doren an- - MENS WEAR] concluded their convention | today, elected Maj. Lucien Van Doren | CITY NEWS IN BRIEF TODAY. Meeting, Modern Woodmen of Amer- ica, Mayflower Hotel, 10 am. Meeting, Mercantile Club, Hamilton Hotel, 1:30 pm. TOMORROW. Luncheon, Allled Theater Owners, Hamilton Hotel, 1 pm. | Luncheon, Newcomers Club, Carl- ton Hotel, 12:30 p.m. Luncheon, Club, Willard Hotel, 1 pm. Variety Meeting, Women's Democratic Edu- cational Council, Mayflower Hotel, TRODS ASSED FOR BASTLE DAY Biggest ~ Military Review Since War Expected to Prevent Rioting. By the Associated Press PARIS, July 13.—France's biggest military review since the days of the World War is expected to quiet any possible revolutionary ardor by rival political “troops” tomorrow—Bastille day. The political partisans intend to march by the scores of thousands through the French capital—and au- thorities are nervous. Both rightists and leftists have promised to maintain order, but Pre- mier Pierre Laval is taking no chances. * Military air fleets held a dress re- hearsal of 450 planes at Le Bourget Field at noon today as a preparation for the massed maneuvers of 600 air- craft tomorrow over long columns of tanks, artillery and all branches of the army and navy. The military dis- play will be reviewed by President Albert Lebrun. The fear of demonstrations over- shadows the expectations for the re- view and the usual dancing in the street. The left wing “popular front” plans a parade declaring the day has a po- ° litical significance almost as great &s the storming of the Bastille Prison July 14, 1789, the revolutionary act which the holiday commemorates. At the same time nationalist forces, in- cluding the strong Croix de Feu (cross of fire), followers of Col. Fran- cols de la Rocque, will march by the tens of thousands in a rightist dem- onstration after their leader has re- kindled the flame at the Tomb of the Unknown Soldier. Dancing in the streets began to- night, but the dancers have been few |in late years for this tradition, like | many others, is dying out. The cele- bration lasts through Monday. | MRS. MAY DUNN DIES Was Prominent in Capital Society Following Civil War. COLORADO SPRINGS, July 13 (#: —Mrs. May E. M. Dunn, prominent in Washington, D. C., society in the years following the Civil War, died here to- day at the age of 86. She was the daughter of the late Lot M. Morrill one-time Governor of Maine, later United States Senator from that State and Secretary of Treasury in Presi- | dent Grant’s second administration She is survived by her sister. Mrs | Morrill Hamo Hamlin of Portlanc Me.: a daughter, Mrs. Arthur J Walker of New York, and a son, Mo:- rill Dunn of Detroit. H Unlinked. | RENO, Nev, July 13 (®.—! 7:30 pm. Excursion. Knights of Columbus, steamer City of Washington, Seventh | Street Wharves, 8:30 p.m. Marthe B. Link, socially prominent | New York City, won a divorce « grounds of five rs separation 1o¢ | from David Cornell Link. They we | married June 12, 1920, at Watchill, R. ¢ Saturday Hours During July and August 9:15 A.M. to 1:00 14th & G STS. Beginning—Our Semi Annual CLEARANCE Regular Stock—Year round Weight SPRING SUITS Formery $30 $26.50 $36.50 $48.50 Regular $35 Suits NOW $29.50 —TROPICAL SUITS EXCEPTED— Furnishings Reduced STRAW HATS and PANAMAS - 25% Fancy Half Hose Were NOwW 50C . .jer - . . . 35¢C (3 for $1.00) $1.00 ... .. 65c @3 for $1.75) Neckwear Were NOW $1.00 e s, . 65¢ $1.50 ....... $1.15 $2.00 .. ... $1.45 $3.00 and $2.50 (xzam. $1.85 $3.50 ... $2.45 This Is Our Regular Dependable High Quality Merchandise Offered at Seasonal SIDNEY WEST nc 14th & G STS. Were $1.95 $2.50 $3.50 $5.00 White Brmdclnd:.“.........‘..51.85 Formerly $50 Regular $55 Suits NOW $42.50 Fancy Negligee SHIRTS (collar attached) (eollar attached or detached) $1.9 (3 for $5.50) (collar attached or detached) (collar attached) §2.4 (collar attached or neckband) Summer Sport Shoes Were $6.00 to $8.50 ‘White nubuck, white canvas, black and white, tan and white, and a few all- black and all-tan oxfords. Savings! NOow $1.55 (3 for $4.50) $3.65 Formerly $65 and $60 Regular $75 Suits NOW $52.50 SILK ROBES and LOUNGE SUITS Less 25% Beach Robes Were Now $395 ... $295 $5.00 .. ..xn $3.75 5 5 Pajamas Were NOwW £2.00 - ... $1.55 $3.00 .. e $1.85 $3.50 cwuenc $2.45 $5.00 ...con $335 N