Evening Star Newspaper, July 25, 1935, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Mostly cloudy, probably occasional showers tonight and tomorrow; not quite * 80 warm tomorrow; gentle southwest winds. Temperatures—Highest, 92, at 5§ p.m. yesterday; lowest, 75, at 6 a.m. today. Full repert on page A-11. Closing N. Y. Markets, Pages 17, 18, 19 No. 33,322 ITALIANS PROPOSE 10 HAILE SELASSIE CONCILIATION UNIT RESUME SESSIONS Emperor Is Approached for | Attitude on Appointment of Fifth Member of Group | to Act as Arbitrator. ENGLAND AND BELGIUM FORBID ARMS EXPORTS Britain Will Permit Transit of Munitions Over Its Territory to Ethiopia, in Accordance With Treaty of 1930, Sir Sam- uel Hoare Tells Commons. ' BULLETIN. GENEVA, July 25 (#).—A new note again requesting urgently a session of the Council of the League of Nations was received from Ethi- opia today a short time after the Ppublication of an Italian note blam- ing Ethiopia for the breakdown in conciliation efforts. An authoritative source in Rome said the Italian government has asked | Emperor Haile Selassie of Ethiopia to renew the consultation of the Italo-Ethiopian Conciliation Com- mission which recently adjourned | in the Netherlands. The British government has decided to forbid the exportation of arms and ammunition to both Italy and Ethiopia, the House of Commons | was officially informed. Sir Samuel | Hoare, foreign secretary, explained, | however, that a treaty with Ethiopia | gave that country the right to re- ceive arm shipments across terri- tory owned or controlled by the | British empire. | The Foreign Affairs Committee of the Belgian Senate was informed that Belgium will ban arms shipments | to Ethiopia. France's plans to use fully League of Nations procedure to stave off war | in Africa were completed and sub- mitted to the cabinet for approval. By the Associated Press. ROME, July 25.—An authoritative source said today that the Italian Minister in Addis Ababa has made| representations to Emperor Haile| Selassie stating Italy is willing to resume the adjourned Italo-Ethiopian | conciliation commission sessions. The commission broke down recently in the Netherlands, where its mem- bers, representing Italy*and Ethiopia ‘were attempting to reach a basis for conciliating their differences. Conte Vinci was said to have asked the Ethiopian sovereign if he was willing for the commission to meet again, particularly for the purpose of | appointing a fifth member to act as arbitrator. ! However, the Minister was reported | to have made it plain that the com- | mission, even in case an arbitrator | were heard, would have to limit itself | to the discussion of incidents whicn have taken place on the frontier and could not include in the negotiations | the question of the frontiers them- selves. It was stated that no official answer had yet been received from Adds Ababa, but that it was known the Emperor was lcathe to revive the commission except on a basis of an| all-embracing discussion which would include the question of delimitation of frontiers. EXPORT LICENSES WITHHELD. Arms Shipment Ban Is Revealed to Commons. LONDON, July 25 (#)—Sir Samuel | Hoare, foreign secretary, announced in the House of Commons today that the British government will not for the present grant licenses for the exportation of arms from Great Britain to either Italy or Ethiopia. He said that the transit across| British territory of arms destined for Ethiopia would be permitted, however. “The government,” said Sir Samuel, “js doing its best to make possible the peaceful outcome of the present unhappy dispute and would not wish to do anything which might prejudice the situation, so it will therefore, for the present, not issue licenses for | the export of arms from this country to either Italy or Ethiopia.” Treaty Obligations Cited. In reply to a question by George Lansbury, leader of the Labor op- position, Sir Samuel said treaty obli- gations necessitated permission for the shipment of arms into Ethiopia through British territory if requested. Said the foreign secretary: “The transit of arms destined for the gov- ernment of Ethiopia across British territory or British-protected territory adjacent to Ethiopia will be permit- ted in accordance with article 9 of the treaty of 1930. “The French government, I under- stand, interprets its obligation under the treaty in the same manner.” Dr. Wargnex Martin, the new Min- ister from Ethiopia, presented his (See ETHIOPIA, Page 3.) Readers’ Guide Page. ..B-8 After Dark..... Amusements . .. Comics . Cross-word Puzzle. Editorials Finance ........ . Lost and Found Mallon ......... Radio ....... Serial Story.. ashington Wayside: 'omen’s Features. .. FEntered as second class matter post office, Washington, D. C. Earthquakes Due July 29 and 30, Says Forecaster | Mediterranean Sea and| | North Pacific Sectors | Warned by Greenspan. By the Associated Press. | NEW YORK, July 25.—Earth shocks | of serious proportions in the Pacific | and Mediterranean areas were fore- | cast today for July 29 and July 30 by | Reuben Greenspan, whose scientific | predictions have been coming true con- sistently during the past few weeks. A series of islands north of New | Zealand, notably the New Hebrides | and Fifi Islands, will be subject to stress of varying intensity July 29, ac- cording to Greenspan, who also sched- | uled shocks in an area embracing Tur- key, Persia, Western India and the northern part of Africa July 30. PATRONAGE BRINGS F.A A BIL FGH [Row Develops Over Attempt | to Exempt Employes From Civil Service. BY J. A. FOX. i | A vigorous fight is in prospect in | the Senate over the provisions in the | House-approved bill exempting em- | ployes of the proposed new Federal | Alcohol Administration from eivil service requirements, it developed to- day. | Fearful that establishment of the | organization as a permanent agency of the Government on a patronage | basis will encourage another wave of | abuses and corruption such as were produced in the old prohibition set- up, opponents of the House bill are prepared to carry their fight further, even to the extent of laying their case before the White House. The existing Federal Alcohol Con- trol Administration was not a civil service group, but Administratar | Choate, it was said today. had exer- | cised the greatest care in the selection of personnel. Doubt Is Expressed. Under the terms of the House bill, doubt was expressed “as to just how much care could be exercised, inas- much as it makes mandatory on the | administrator to choose his staff with- jout any regard to civil service laws. On the floor of the House while the | bill was being debated, the statement was made that the President could, if | he saw fit, bring the new organization under civil service, but a question at the Civil Service Commission today | elicited the information that this vns’ | not possible. | “In other messages using that lan- guage,” said the commission, “the At- torney General has decided that the President has no power by which he could bring the F. A. C. A. under the civil service or classification acts. The language is mandatory and the use of the word ‘shall’ prevents the ad- ministrator from making civil service appointments. The Attorney General | rules that because Congress has given power to the administrator to appoint | the President cannot take that power away from him and provide for any other method of appointment than | that which is provided for in the bill.” Agency Under Treasury. Under the bill as now written the new agency will come under the Sec- retary of the Treasury, who has al- ways used civil service employment lists wherever possible and has gone so far in providing Alcohol Tax Bu- reau jobs for white collar workers on reilef as to make an absolute require- ment for employment that the relief agencies pick needy, qualified individ- | uals. As the bill went through the House. Representative Mapes, Republican, of | Michigan, and Bacharach Republican, | of New Jersey, both attempted to have the employment provision amended to | provide for civil service workers, but. were voted down. When the old Prohibition Bureau was established in 1921, it was set up as a non-civil service agency, and the abuses that followed in the wake | of patronage appointments led Con- | gress in 1927 to change it over on a civil service basis. It was required | that the incumbents, about 2,400 in number, should take competitive ex- aminations to hold their places, and of these only about 25 per cent were able to measure up to the standards Half of the number failed in the written tesi and of the other half that were successful more than 50 per cent were thrown out by the rigia character examination, The legislation now awaits action of the Senate Finance Committee. Vote Is 229 to 100. As passed yesterday by the House by a vote of 229 to 100, the bill re- quires Federal permits from every one in the liquor industry except re- tailers and brewers; it outlaws inter- locking directorates between manu- facturers and retailers and bans unfair practices. In general, its work will be similar to the Federal Alcohol Con- trol Administration, which collapsed when the Supreme Court abolished the N. R. A, ah | John, | his copcern had paid $2,452 over a WASHINGTON, CIGARS OR BOOKS IN MYSTERY BOX PROBERS ARE TOLD Utilities Firm Head Says Son Took Such Packages to Patton. INVESTMENT OFFICIAL DESCRIBES SPENDING Says $60,000 Was Used in Fight on Holding and T. V. A. Measures. By the Associated Press. Questioned by Senate lobby investi- gators as to whether he recalled giving any one & box just before the House vote on the utilities bill, John W. Car- penter, president of the Texas Power & Light Co., said today his eldest son, had given a box of cigars to| Representative Patton, Democrat, of Texas. He added that the mysterious, news- paper-wrapped package which figured in previous testimony may have been books on live stock. Meanwhile the House Rules Com- mittee investigating lobbying for and against the utilities bill received testi- mony from Hugh S. Magill, president of the American Federation of Utili- ties Investors, that the organization spent $60,000 in the last six months in the “interest of the millions of in- | vestors it represents.” ! ¢ Foening WITH SUNDAY MORNING EDITION D. C, THURSDAY, JULY 25, CHIEF'S ORDERS! 1935—FORTY-EIGHT far PAGES. The only evening paper in Washington with the Associated Press News and Wirephoto Services. B Yesterday’s Circulation, 121,319 Some Returns Not Yet Received. (#) Means Associated Press. TWO CENTS. $200,000,000 TAX BILL TENTATIVELY DRAWN; LACKS DIVIDEN]_) LEVY 'Heavier Rate on Incomes Over $150,000, Inheritances Over $50,000, Company Profits. 'INCLUSION OF CORPORATION’S EARNINGS ROOSEVELT VICTORY Doughton States Democrats Have De- cided Not to Raise Present Figure on Inter-Corporate Dividends.. By Me: the Associated Press. A tentative agreement on a new ans Committee Democrats. The tentative measure would put heavier incomes over $150,000, inheritances over $50,000 left to close of kin, th: profits that a corporation makes above 8 or 10 per cent on its capita! and on corporation income. The tentative decision to include Jsubsequeml_v, is a partial victory for the President. He proposed that the present fla! tax bill to raise around $200,000,00 a year, but which does not include the intercorporation dividend tax | proposed by President Roosevelt, was reached today by House Ways and taxes on all individua! the last. if it is not overthrown t 13% per cent tax on all corporation income be replaced with a graquated levy ranging from 10% to 16%. Narrower Range Seen by Doughton. Chairman Doughton of the committee asserted that the range “prob- Spent to Beat T. V. A. Of this amount, he said, $25,000 | was spent against the utilities bill and part of the remainder against the Tennessee Valley amendments. When he resumed the stand before the Senate committee, Carpenter said: “I didn’t give anybody a box of | cigars, but my son said yesterday he gave Mr. Patton a box of cigars.” He added that his son had told him yesterday about giving a box of cigars | to Patton because he had invited him to go fishing. At another time, Carpenter said, Patton brought two books on live stock to the hotel for Carpenter’s son and took them out again wrapped in newspapers. Carpenter said his son gave the box of cigars to Patton a couple of days before the Sunday before the House vote. { During Carpenter’s testimony, his | altorney, Joe A. Worsham, was sud- denly ushered into the committee room, and Chairman Black asked | Carpenter to leave while the lawyer | Wwas questioned. 1 Worsham told the committee roughly the same story as related by Carpenter. He said he and Carpenter | discussed the cigar box incident yes- terday and he decided to see Patton shout it. “How did you connect Patton with that box of cigars?” asked Senator Minton, Democrat, of Indiana. “Because he had been in the room.” “But Mr. Dies, Democrat, of Texas had also been in the room,” Minton said, | In Room Frequently. | Worsham said he judged Patton | might know about the incident be- cause he had been in the room a number of times. There were some minor discrepan- | cies in the stories told by Carpenter | and Worsham. Carpenter said he did | not know Worsham was going to see | Patton. Worsham, on the other hand, said he had told Carpenter where he was going. Worsham said he decided to see Patton because it most likely was | Patton who was in Carpenter's hotel | room on the Sunday before the House vote was taken. He said he told Patton about Car- penter’s testimony and sought to get Patton’s aid in refreshing the power head’s memory. “He told me he wasn't in Carpen- ter's room that Sunday,” Worsham declared. “He told me he and his family went to Annapolis that Sun- day to see a movie actor.” Worsham told a similar story about Patton taking the books to Car- penter’s hotel and taking them out wrapped in newspapers. He also told about the same story of Carpenter’s boy giving the cigar box to the Congressman. Earlier Carpenter had testified that five-year period to Peter Molyneaux, editor of the Texas Weekly, including $1,300 for “advertising, advice and as- sistance.” Carpenter told the committee yes- terday he had paid Molyneaux $192 recently for radio activities in opposi- tion to the administration holding company bill. The other items listed today included $760 for subscriptions to the magazine and $200 for advertising. He said $1,000 was paid for “advertising, ad- | vice and assistance” in the year ending June 30, 1931, and $300 the next year. “Mr. Molyneaux is a good authority regarding advertising and assisted the advertising department,” the power head explained. “Did he ever print that he was being paid by the Texas Power & Light (See LOBBY, Page 3.) Prison Shadow Curdles Love; Mrs. Waley Denounces Mate By the Assoclated Press. CHICAGO, July 25.—Mrs. Margaret ‘Waley, en route to Milan, Mich, to serve a 20-year term for her part in the kidnaping of George Weyerhaeuser, jr.. denounced her husband today, as- serting he “didn’t get a third of what he deserved.” Her husband, Harmon, was given a 45-year sentence for the $200,000 “snatch” of the 9-year-old son of & wealthy Tacoma (Wash.) lumberman. Only recently the plump young blond asserted she loved her husband and wished to go o prison with him. But, nearing prison today, she ex- pressed her apparent change of mind with: ; 2 “If it hadn’t been for him I would not be where I am today. I'm through with him forever. I'm through with all men. “When I come out I'm coming out alone. There will be nobody waiting for me. “I did wrong by not notifying offi- cers when I learned the boy was a kidnap victim,” she said. “I deserve the punishment that was to me. “I hope the time I must serve in Eccles’ Inflation Fears Draw Glass Sarcasm Before Senate 3 Reserve Official Exceeds All Inflationists, Says Virginian. Senator Glass, Democrat, of Vir- ginia told the Senate today he was “amused” that Gov. Marriner S. Ec- cles of the Federal Reserve Board wanted to prevent inflation “because of all the inflationists in this country he has exceeded the group.” Resuming his speech on the com- promise bank reform bill the veteran Virginian denied it was an “adminis- tration bill,” and then tore into Eccles without mentioning him by name. “It is suggested,” he said, “that the chief advocate of title two (giving the Reserve Board majcrity control over the Nation's credit resources) is in a nervous state of anxiety lest we should have inflation in this country. | He wants to prevent inflation and de- | flation. “Well, we already have more de- flation than may be remedied in the next 10 or 20 years to come. As for inflation, I'm amused that the sponsor of this bill wants to prevent inflation SUIT WITHDRAWN Minnie Keyes Will Accept Condemnation Figures on Southwest Property. Shortly after Miss Minnie Keyes. 714 Seventh street southwest, had been “paid her price” for her property in the area facing condemnation for | a P. W. A, slum clearance project in | Southwest Washington, eight other property owners in that section filed legal objections to the project. 1 Miss Keyes, the first to file objec- tion in court to the condemnation, withdrew her demurrer today after | she had reputedly been paid the price | set by herself for 11 houses she owned | in the 13-acre tract scheduled for | renovation. Action Declared Illegal. Her action cleared the way for re- | sumption of the Pederal low-cost | housing project until the eight other | property owners filed similar objec- | tions with the District Supreme Court. | ‘They claim their property is not be- | ing taken for a public use and that the condemnation proceedings, there- | fore, are illegal. Those filing demurrers today are: | Thomas P. Brown, M. G. Murr, Sarah Zanoff, Warfield King, Israel Dia- | mond, Jesse L. Heiskell, Alexander | Muncaster and Allen W. Kelley. The addresses of their properties were not given, | Miss Keyes' property is at 131-141 P | street, 9-19 Pierce court and 1259-6- | Half street, all southwest. $14,600 to Be Paid. She will receive $14,600 for the group, she said. Her rentals now ex- ceed $1,100 annually. P. W. A officials declared that Miss Keyes had accepted an option of $10,000 on the P street property for which the Government originally had offered her $8,550. She also was offered $2,800 for two houses on Half street and two alley dwellings. Miss Keyes, it was revealed, had re- fused an option of $5,750 made several months ago for the P street houses, but had accepted at that time the $2,800 option for the four other dwellings. Meanwhile, she filed a demurrer to save her P street houses from condemnation. 3 ‘When the Government negotiators returned some time later, they found she had improved the houses by put- ting in new windows and plastering and papering the walls. On the strength of these improvements, officials said she was offered $10,000, which she accepted. 2t 33 Killed in Mine Disaster. CALCUTTA, India, July 25 (®).— Thirty-three persons were killed and 43 injured today in a mine disaster at the Joktisbad pit In the town of SLUM CLEARANCE .. PLANS SHAPED ‘| improvements which are to be ac- SENATOR GLASS, because of all the inflationists he has “hemocrat, of Texas admonished | exceeded the group.” Glass has contended title 2 was un- necessary, but he made concessions to (See GLASS, Page 7.) 10E Nearly Half of Relief Roll to Be Eliminated on Mapped Projects. [ The District to date has completed arrangements for taking nearly half | of the 16,000 employables off the MPLOY 7106 relief list and giving them steady work | for a year under the new Federal works program, Commissioner Georgc E. Allen announced today. The cost of employing 7,106 relief | ciients for a year under the new ar- rangement was calculated to be $7.- 834,144, most of which will come out o1 Federal grants. Allen, who is works progress admin- istrator for the District, hopes to start the new program not later than next ‘Thursday. A recapitulation of the status of werks plan made for Allen today by William C. Cleary, administrative as- sistant, showed plans so far approved finally by Federal officials would pro- | vide steady work for 3,089 persons at 2 cost of $4477,862. The projects | awalting Federal approval would give | work to 4,017, at a cost of $3,356,282. The men involved in work plans al- ready approved will be set to work under the new arrangement as soon &s the Treasury Department units complete pay roll arrangements. Several Projects Approved. The approved projects include work to be performed for the Navy De- partment, to employ 622 persons at & cost of $704,740; War Department, 1,084 persons at a cost of $946,505; District Highway Department, 1,500 persons at a cost of $1,236,713, and the District Highway Department under the Federal grant for roads, which is directed by the United States Bureau of Public Roads, 833 workers at a cost of $1,589,904. The first of the two highway sl- lotments referred to above concerns works program prepared under direc- tion of Administrator Allen. The other fields of work are to be done under the District's apportionment out of Federal funds of $949,496 for highway work and $410,804 for elimi~ nation of grade crossings in the Dis- trict. Those two grants total $1,360,~ 300 and are being supplemented by approximately $220,000 out of the District’s own appropriation for high- ways, this being done so that the District can meet requirements that for each $1,400 of Federal money spent in the works program, the Dis- trict must employ one person off the relief list for the entire year, Capt. H. C. Whitehurst, District director of highways, said he had not yet been able to complete extensive details concerning the list of highway camplished under the Federal grant for roads, “ BULLETIN Because of the heavy shower early this afternoon, today's base ball game at Griffith Stadium, be- tween Washington and Cleveland, was postponed. The grounds were held too wet for play. Washington will play in New York tomorrow. ATTACK ON HTLE STIRS HOUSE ROW Blanton Rebukes Dickstein for Speech Labeling Fuehrer Madman. By the Associated Press. In a blast on the House floor against anti-religicus activities in Germany, Representative Dickstein, Democrat, of New York today called Adolph Hitler “this madman of Germany” and accused him of stooping “to cold- blooded murder.” Immediately Representative Blan- that America should “mind its own business.” He said the State Depart- ment was the only agency designated by the Constitution “to handle our business with foreign countries,” and | that Dickstein had no authority to call Hitler a madman, even if it were justified. Preliminary negotiations looking toward a reciprocal trade agreement between this country and Germany served to touch off Dickstein's attack. Would Protect Nationals. Any such agreement. he said. should contain an “iron-bound provision” protecting the rights of American citi- zens in Germany, regardless of their religion or racial origin. Dickstein also contended the pro- posed pact should insist that the Ger- man government undertake to prevent the sending of all kinds of Nazi propa- ganda into the United States. “I want the foreign governments of the world to understand,” Blanton re- plied, “that the gentleman from New York speaks wthout authority on this floor. He has no right to castigate the ruler of any foreign country, no matter how much he doesn’t like him.” Despite the sharp criticism of Nazi- ism’s anti-Semitic and church policies on Capitol Hill, doubt is expressed that Congress will reach the point of tak- ing action. Senator King, Democrat, of Utah has asked an investigation by the Sen- ate to determine whether conditions in Germany call for severance of dip- lomatic relations with the Reich. In his opinion, he said, “the con- | duct of Hitler and his regime” is “cruel, brutal and barbarous.” He de- clared on the floor yesterday that he would shortly introduce a resolution calling for an inquiry. In the House Representative Celler, Democrat, of New York is seeking to press two moves to halt what he terms “brutal attacks on defenseless people” in Germany. ‘ REICH7RECALLS CONSUL JERUSALEM, July 25 (Palcor Agency) —Germany’s consul general to Palestine, Heinnich Wolff, has been recalled to Berlin, allegedly owing to the Jewish parentage of his wife. ‘Wolff was appointed to his present post on December 19, 1932. | ably will be much narrower than th: He added, too, that the Democ: | increase in the present one-tenth of at—maybe from 13% to 14%. rats had decided not to include an 1 per cent tax on capital stocks. The inheritance tax rates would begin at 4 per cent on the first 1$10,000 above an exemption and reach 75 per cent of that part of an inheritance over $10,000,000. The individual income tax plan the present surtax on individual incomes. per cent, against the present 59. 4 come over $10.000,000 would be 75 | Chest Officials Gird For Battle Against Gift Exemption Ban All officers of the Community Chest and Council. Inc., have been uiged to come to Washington “immediately” to see Government officials in an effort to save a proposal in the new tax bill which would permit corporaticns to | deduct gifts to charity on their tax re- | turns, it was said today by Herbert L. Willett, jr., director of the Com- | munity Chest of Washington. Willett said telegrams were sent to the officers by Allen T. Burns, execu- tive vice president of the Community Chest and Council, yesterday before | he left for New York. Burns, in col- laboration with Msgr. R. Marcellus Wagner of Cincinnati, president of | the National Conference of Catholic | Charities, and William J. Shroder, president of the National Council of Jewish Federation, yesterday issued a prepared statement in which it was claimed that if corporation gifts to welfare organizations are not exempt from taxation charity will suffer a tragic blow. ! Policy Conflict Seen. | It was pointed out in the state- ! ment that the President’s opposition to the proposal is in direct conflict with his advocacy of partnership as the indispensable factor in national recovery. Willett asserted today that although he did not anticipate failure of the | washington firms to contribute even if the gifts were not exempt, he ex- pressed fear that the local charitable body would suffer severely if such a law is enacted. Confidence that Washington firms will continue to support the Commu- nity Chest despite any ruling on tax- | | ation by the Treasury was voiced by Wwillett. Washington firms contributed $217,000, or 13.2 per cent, of the total of $1,634,000 donated to the Chest for 1935. Willett said: “Recognition of the needs of Wash- ington by local corporations and their | generosity in helping to meet those | needs have been amply manifested by corporation gifts to the Community Chest in the past campaigns. “Knowing the loyaity of the Wash- | ingtonians directing these corpora- | tions to any movement for the better- ment of the city, there is no reason to believe that there will be any change porations toward the Community Chest this Fall. Gifts Often Separate. “By corporations I refer not alone to the public utilities but to the news- | papers, stores and other organizations | which contribute to the Chest. In our | group solicitation unit, for instance, | the firm gift, which is generally a part of the entire contribution of employes of that particular firm, is a corporation gift. Some of the con- | tributions received by our special gifts | unit also come from corporations. “A Treasury ruling, supported by the Supreme Court, last year held such contributions taxable. An amendment to the revenue act has been introduced by Representative McCormack and Senator George, permitting the con- (See CHEST, Page 7.) HOLLYWOOD OFF GUARD The Daring Exploits of a Bold, Bad Camera! Filmdom’s famous as they a re in every-day moments—on the tennis court, in their gardens, in the boudoir, in inti- mate tete-a-tete. Jerome Zerbe, famous for his candid camera shots, has been sniping in Hollywood. The result is a gay and charming picture series which starts with A Full Page of Intimate Photos of the Screen Stars in the Rotogravure Section of Next Sunday's Star in the attitude of Washington's cor- | would raise from 53 to 54 per cent The maximum rate on in- Must Add “Normal” Tax. To all those rates must be addec the existing “normal” tax of 4 per cent which applies to the first $4,000 of every taxable income. After the Democrats had met fo’ more than two hours, Doughton issuec a statement saying: “We have tentatively agreed to have a surtax rate provision starting a' $150,000, with graduated rates up to 75 per cent on net incomes ove $10,000,000. “We expect to have a graduatec corporation income tax nunder very narrow limits of graduation. “We expect to impose a moderatr excess-profits tax. “We expect to have an inheritance tax graduated up to 75 per cent o. inheritances over $10,000,000, wit: $50,000 exemption. “We expect to have a gift tax a about three-fourths the rates of th | inheritance tax.” $200.000,000 Revenue Seen. He personally expressed the “gues: that the bill would raise in th- neighborhood of $200,000,000 & yea: In new revenue. The plan was to get the thing: agreed upon in bill form as soon a possible so it could be put before the tull committee early next week fo: prompt approval. | Doughton had told Senator Har- | rison, Democrat, of Mississippi, chair- man of the Senate Finance Com- mittee, that the tentative bill would e readv by Monday, but today there seemed doubt - of that. Asked why the committee had not :ncluded the increase in capital stock | tazes and the new levy on inter- corporation dividends, the latter re- commended by the President, Dough- ton told newspaper men: “I'm not in favor of too many taxes.” Here are some figures to indicate how much of an inheritance would be taken by the Government under the tentative schedule $60,000, tax, $400: $100,000, tax, $5- 600; $500,000. tax, $119,600; $1,000.- 000, tax, $309.600: $2,000,000, tax, $769,600: $5,00 $2,449,600; $10,000,000, ta Gift Rate Fourth Lower. Gifts would be taxed about three- fourths of that amount and would be | subjected to the new levies for two reasons: To prevent evasion on in- heritance taxes and to bring in reve- | nue promptly instead of only years after an individual had died and left a fortune. Some illustrations of what the in- dividual income taxes would be: | Two hundred thousand dollars, tax $89,000; $500.000, tax $283.000; $1.- | 000,000, tax $638,000; $2,000,000, tax | $1,368,000; $5,000,000, tax $3,618,000: $10,0000,000 tax $7,493,000. Asked about the proposal to permit corporations to make tax-free gifts to | charitable organizations, which Presi- | dent Roosevelt criticized yesterday and which it was reported the Demo- ‘#rats had accepted, Doughton said: “We didn't do anything about that.” “You're standing by your previous decision?” he was asked. “Yes,” he replied. POWER PLANT SHUT AT CAMDEN YARDS Shipbuilding Strikers Claim Vie- tory as Firm Buys Elec- trical Energy. By the Associated Press. CAMDEN, N. J, July 25.—New York Shipbuilding Co. officials said today they had shut down the power plant of their strike-crippled yard be- cause of the small number of men that reported for work. The yard will remain open and op- erating, however, Roy 8. Campbell, general manager, said, using outside power until activity warrants a return to normal. Strike leaders based victory claims on the announcement. John Green, executive secretary of the union, serted no shipyard workers other than foremen and timekeepers had entered the plant today. Green pointed to the plant's smoke- stacks, which Tuesday and yesterday | had beiched smoke, but today showed no sign of activity, as evidence the pickets had won their battle to keep the yard closed. )