Evening Star Newspaper, July 31, 1935, Page 5

HSINLUENGE L HURLEY DECLARE Any One Would Know Better Than to Hire Him to Lobby, He Asserts. By the Associated Press. Patrick J. Hurley, Secretary of War in the Hoover cabinet, said today: “Almost any one would have sense enough not to hire me to use my iInfluence with a New Deal Congress, as that influence would not be worth & nickel of any one’s money.” He made this comment on testi- mony yesterday before the Senate Lobby Committee that his law firm had been paid $25,000 by the Asso- ciated Gas & Electric Co. Hurley told reporters his connection with the company had been of a legal nature only and he had done no lobby- ing. He said he was willing to ap- pear before the committee at any time to explain his actions. In every case in which he had been retained he said he appeared publicly in the role for which he was hired. Issues Formal Statement. In a formal setatement, issued in the third person, he added: “Mr. Hurley said he had represent- ed the Associated Gas & Electric Co. and its upward of 300,000 investors| before the Fletcher-Pecora Banking Committee investigation of the Senate | in 1933, | “At that hearing Mr. Hurley did not | represent Mr. H. C. Hopson nor any | of his privately operated companies. Mr. Corbin of Gov. Miller's firm in New York appeared as Mr. Hopson's | attorney at that time. “The question involved at that time was whether or not the Associated Gas & Electric Co. could be legally compelled to deliver its records to the Senate investigating committee. “Mr. Hurley held the Senate inves- tigating committee had a legal right to the records and did produce them for the committee. Appeared Before F. T. C. “Mr. Hurley did appear before the Federal Trade Commission as attor- ney for the Associated Gas & Electric Co. and its investors. He did not appear at that hearing for Mr. Hop- &on or any of the privately operated companies of Mr. Hopson's. “The next matter in which Mr. Hurley was retained was when the Associated Gas & Electric Co. and its investors were denied a hearing before the Interstate Commerce Com- mittee of the House of Representa- tives. “Mr. Hurley held that the investors and the officials of the company had a right to appear and secured per- mission for their appearance. He did | not make any statement for or against the utilities bill at that hearing - or privately to any member of the Sen- ate or House of Representatives. He | merely secured the right for the in- vestor to be heard. Mr. Hurley said that he did not represent Mr. Hopson or any of his privately owned com- panies in that matter.” The former Secretary added that he thought the Wheeler-Rayburn utilities bill unconstitutional. Lobby (Continued Prom First Page.) had left the wrong impression by its questioning of company witnesses about paying in cash for telegrams ;igl:inst the Wheeler-Rayburn utility He contended the committee had not let the witnesses answer the questions properly and had gotten “half truths” as a result. No Witnesses Ask to Return. Chairman Biack asked if any wit- nesses had asked to return to thei stand to correct their testimony, but| Hitt said so far as he knew none had. | Meanwhile Patrick J. Hurley, Sec-| retary of War in the Hoover adminis- tration, said, “Almost any one would | have sense enough not to hire me to| use my wmfluence with a New Deal | Congress, as that influence would not be worth 2 nickel of any one’s money.” He made this comment on testimony that his law firm had been paid $25,- 000 by the Associated Gas & Electric Co. Counsel for the Senate Committee at the outset of the hearing said it had not been able to find Hopson and had no idea where he could be. Searcher Unheard From. “I can't even hear from the fellow I sent for him,” former Representa- tive McKeown Democrat of Okla- homa, one of the company counsel, laughed. ‘When Chairman Black announced he had turned a summons for Hop- son over to the marshal, McKeown re- plied: “I can't blame the committee for that. If he's gone where he can't read the newspapers he’s gone a long way. We see no reason for him not to come to the committee.” The committee directed McKeown to get in touch with Garrett Brum- bach, counsel for A. G. E., in New York after Senator Schwellenbach, Democrat, of Washington, said he found an unsigned note in his office that Brumbach ‘“can locate Hopson whenever he desires to do so.” Treasury Provides Data, It also was made known that the Treasury, at President Roosevelt's di- rection, had ordered its employes to make available to the Senate Lobby Committee returns filed on income, excess profits and capital stock. ‘The President’s executive order said any information necessary in the in- vestigation of lobbying activities in connection with the utility holding eompany bill might be made available to the Senate Committee. Asking to appear to defend his fi- mancial transactions during the period when he visited the hotel room of John W. Carpenter, Texas Power & Light Co. president, Representative Patton was questioned today by a fellow Texan Democrat on the com- mittee, Representative Dies. Dies developed testimony that Pat- ton, a first-termer, had in excess of $1,400 in cash when he reached Wash~ ington January 2; that he received mileage allowance totaling $477.96, and salary for the five months to- taling $4,044.44. The bonds were bought in May, be testified, and paid for with checks on the sergeant at arms office. “Where are those checks, do you bave them with you?” Dies asked. THE EVENING Cuban Ex-President Here RRRREE Ly Photographed at Union Station on his way to New York, Dr. Ramon Grau San Martin, former President of Cuba and leader of the Cuban Revolutionary party, is shown on the steps of the train. The others, left to right, are: Mme. Paulina Alcina, Ramon Grau, his nephews, and Dr. Ramiro Capablanca, party worker. Dr. Ramon Grau San Martin, former President of Cuba and leader of the “authentic” Cuban Revolutionary party, stopped long enough in Wash- ington today to say half a dozen crisp sentences about the ‘“present military dictatorship” in the island republic and to express his despair of an early return to power. Dr. Grau San Martin said an elec- tion would be held in Cuba in Decem- ber, but that “conditions there now make my election as President im- sister of Dr. Martin; Francisco and —Star Staff Photo. possible.” He charged the dominant party with a press censorship which he said made disssemination of facts necessary to a fair election impossible. A winning smile flashed on Dr. San Martin’s finely chiseled, dark face as he helped his sister and nephews down to the train platform to pose for | photographers. His sister is Mme. Paulina Alcina and her sons, whom the former Cuban President looked on proudly, Francisco Grau and Ramon Grau. mittee,” Patton replied, as a chuckle ran through the committee ranks and small audience. Patton said he went to the Hunts- ville bank December 31 and drew his account there in five $100 bills, after having drawn $221 of an account with the Palestine, Tex., Royal National Bank on December 26. In addition, he said, he still had warrants totaling $681.20 received as salary as State Senator, but which he had not cashed because he would have had to take a discount. “I never was a fellow to pay in- terest,” he drawled, “so I held on to them as I had a little cash and didn't need to then.” Kept Account of Trip Expense. Patton also said he was paid, May 15, $180 on a note he held against a colored minister. Describing minute details, the Texan said his family kept account of their | expenses on the road by automobile, even down to “every bottle of pop.” They totaled, he said, around $66. Asked by Dies about his expenses in Washington, Patton said, “Well, I spent a whole lot more than a Govern- | ment worker ordinarily does, as my | wife was always after me about spend- ing too much money.” He repeated testimony before the Senate Committee last week concern- ing his trip to the Mayflower Hotel to see Carpenter as well as other Texans, including “my lieutenant governor and, I think, my attorney general, William McCraw.” Then he told in detail how he met Sellers. Made No Effort to Conceal Box. Patton said he met Sellers in Austin, Tex., “while Sellers was lobbying for the West Texas Utilities Co.” He said Carpenter’s son gave him a box of cigars and remarked that Sellers had smoked most of them. He said he made no effort to conceal the box as he left the hotel. Patton told Dies he went to the Sen- ate committee because he had read that it had received testimony about passage of a box between Carpenter and a member of Congress. “I knew I had received a box of cigars,” he explained, “and felt I should tell the committee about it as I told Blanton (Representative Blan- ton, Democrat, of Texas). I had nothing to hide and did not care who knew anything I had done.” Patton Asks Facts Be Known. Patton concluded with an almost sobbing appeal to newspaper men to “let the country know the facts.” Patton said he had received checks and other evidence he submitted from Texas only this morning. He said he would insist on presenting the same information to the Senate Committee. “Is there anybody else you would like to have testify?” Patton was asked. “Yes,” he said. “Mr. Sellers.” “We can’t find Mr. Sellers,” Chair- man O'Connor said. “Yes, and nobody else can,” Patton | replied. Patton said Sellers told his daughter not to worry about the cigar box in- cident because “you know I know there was nothing in that box but cigars.” “I'd hate to testify against a dog,” the Texan sald on questioning, “but I heard Sellers had been before the Senate committee. I think he had talked to some one on the Senate Yesterday the Senate Committee be- | he was a member of the President’s | gan to run into big names. | The crop included Hurley and Basil O'Connor, former law partner of | President Roosevelt. Evidence was received that O'Con- | nor, like Hurley, received $25,000 from the A. G. E. Co. for legal work. O’Connor is a brother of Representa- tive O'Connor, Democrat, of New York, chairman of the House Rules Com- mittee. Fred S. Burroughs, vice presi- dent of the A. G. E. Co., was uncertain whether Attorney O'Connor was hirea in connection with the A. G. E.’s fight. against the Roosevelt bill. It was his impression, he indicated, that the services involved a merger of some companies in upstate New York, or a recapitalization plan. When Senator Gibson, Republican of Vermont, asked if O’Connor had “any kin in the Government service,” | Burroughs answered: “We knew he was related to some- | body down here. We knew, too, that | law firm, but we didn't expect to ob- | tain any influence that way.” Said Hurley Did Little. When Burroughs was questioned about Hurley's work, he said: | “He hasn't been doing anything ex- cept he appeared with me before the Rayburn (House Interstate Commerce) Committee.” He added that Hurley had gone over his statement with him prior to his appearance before the Rayburn Committee. “I don’t think he did anything on the Wheeler-Rayburn bill (the Roose-~ velt-backed utilities measure) except make appointments for me to appear,” Burroughs said. “Col. Hurley did try persistently to get me an appointment to appear.” In reply to questions by Senator Schwellenbach, Democrat, of Washing- ton as to how much time Hurley spent on the bill, Burroughs said: “Are you trying to figure if we got value received? I don't know. I con- sulted him quite a few times myself.” AR R Taxes (Continued From First Page) gesture and a move for social reform rather than r.venue raising. Declar- ing various orovisions of the pro- posed tax legislation to be confisca- tory, the minority quoted two former Democratic Secretaries of the Treas- ury, Glass and Houston, and Presi- dent Roosevelt himself while a candi- date for his present office in opposi- tion to excessive levies. During the course of the hearing, congressional tax framers were in- structed to prepare an amendment to the bill to offer some inducement to utilitys holding companies to con- solidate voluntarily. Harrison Orders Study. Senator Hastings, Republican, of Delaware raised the question and Chairman Harrison agreed such an amendment would be fair. He ordered L. H, Parker, chief of staff of the joint Congressional Tax Committee, to “study” the proposition with a view to offering an amendment. The proposal would involve a stock transfer tax with an exemption to holding companies which voluntarily consolidated within a certain period. Hastings also inquired if any one would offer an amendment, as pro- posed by the President, for a tax on STAR WASHINGTON, D. C. WEDNESDAY, JULY 31, 1935. NAZIS RESTLESS) [promiscs action] [DISPUTE ON SLUR' UNDER HIGH PRICES Radicals and Moderates Vie for Control in “State Enemies” War. (Copyright 1035, by the Associated Press.) BERLIN, July 31.—The German government today faced a serious threat to its much publicized “national unity” in a wide popular dissatisfac- tion against price Increases. This spread of dissatisfaction was seen as Nazi radicals and moderates maneuvered behind tne scenes to gain the upper hand concerning the de- termination of policy as to how severe shall be the Nazi drive against “politi- cal Catholicism,” “reactionary” World War veterans and other ‘“state enemies.” Authoritative sources were unwilling to predict which faction ‘would gain control. A large part of the population ap- pears disgruntled concerning the es- sential increase in the cost of living. Private individuals claim it has gone up 30 per cent. Official announce- ments claim prices are only “slightly higher.” Statistics of the Institute for Busi- ness Research reveal prices of farm products have increased from the index figure of 89.7 in 1933 to 1103 in 1935. ‘The prices of meat and meat con- sumption furnish a striking example. ‘These prices average 40 per cent higher than six months ago, partly on account of smaller imports and partly because of the fact that considerable quantities of fresh meat are needed in order to permit the troops to substitute the fresh product for canned meat, which latter now is thrown on the market., corporation surpluses. Harrison said he hoped such an amendment would not be offered now, since the execu- tive only suggested it for study. Bill Hit as Unsound. Because of reported inability of Secretary of Treasury Morgenthau to appear until tomorrow morning, Noel Sargent of the National Association ! of Manufacturers was the first witness before the Senate Finance Committee. Quoting several tax authorities and former Democratic secretaries of the | Treasury, Sargent directed his fire at | graduated corporation taxes and ex- cess profits taxes. Of the former, Sargent declared: “The proposed tax would be eco- promically unsound, since it would penalize industrial efficiency. The tax is soclally unsound because it would, if continued over any long period of time, result in increased living costs w consumers, resulting in lowered living standards and decreased em- ployment opportunities for workers. The graduate corporation income tax is a tax upon millions of mdlviduu; stockholders, irrespective of their ability to pay.” | Railroad Rate Supported. R. V. Fletcher of this city, repre- senting the Association of American Railroads, followed Sargent on the stand. “As introduced in the House,” Fletcher said, “the bill deals very | fairly with the railroads. We pre- viously have had the privilege of fil- | ing consolidated returns by paying l: 153 per cent tax rather than the 13% per cent. “This is provided in the House bill. “I would like to say, however, in the matter of excess profits tax that corporations should have privilege of declaring new value.” Under the present revenue law, corporations were allowed to make | their own declarations of value, this | valuation not to be changed. Senator Connally, Democrat, of Texas asked if invested capital might not be fairer basis for uniform valu- ation of corporations, and Fletcher agreed it might. Excess Profits Tax Hit. H. B. Spalding, vice chairman of Taxation Committee of the National Association of Manufacturers, was the third witness. Spalding declared that the excess profits tax as operative during the post-war period was unfair and com- plicated in administration. “An excess profits tax discriminates unduly against corporations of fluc- tuating profits. “This law is an enormous lottery in which the Government is on one side of the table and stockholders of corporations on the other.” Continuing the attack on the legis- lation in its present form, M. L. Seidinan of the New York Board of Trade appeared to urge a widening of the general tax base as a means of improving the tax structure. | spending of Government money. At the same time, however, he charged that tax legislation of the type proposed by the President and introduced in the House it an entirely new and dangerous philosophy of taxation. Wants Budget Balanced. Some extracts from Seidman's testi- mony follows: “The message, quite apparently, is not a fiscal document, but a state- ment of social and economic philoso- phy with regard to taxation. It is in fact a .complete and unqualified indorsement of the use of taxation for non-fiscal purposes. Approval of such a measure by Congress would imply the acceptance of a philosophy of taxation having the most far reach- ing implications. “The New York Board of Trade is strongly for increased taxes. It insists, however, that any new revenue legis- lation, if enacted, should be solely MAYOR LA GUARDIA Of New York shown at the White House yesterday. La Guardia. declared that persons taking part in recent anti-Nazi demonstrations in New York would be prosecuted. His statement came shortly after the German government had lodged a formal protest with the State Department regarding the incident. —A. P. Photo. for the purpose of balancing the na- tional budget. And when we say bal- ancing the budget, we mean not a dual | system of bookkeeping, but limiting | our total expenditures to our total | revenue. “Coupled with increased taxation, we urge upon you the fundamental | proposition that any program to raise additional revenue can benefit the country only if paralleled by a de- termination to apply the brakes to the “Dries Up Revenue.” “Experience has demonstrated that | the excessive taxation of large incomes | and estates will not only not produce revenue, but will, in addition, dry up | the source of revenue. * * * “The New York Board of Trade recommends a courageous broldemnx; of the tax base as one of the most | effective means of bringing our Gov- | ernment finances into ultimate bal- ance, and at the same time, making our citizens recognize their own personal interest in the expenditures of their Government.” In conclusion Seidman submitted | a proposed list of income surtaxes | and inheritance taxes which, covered | a broader base of levy. Henry M. Powell, representing New York Associated Industries, appeared | next in opposition to the program. Hearings for the day closed with the appearance of T. J. Priestley, jr., of Philadelphia, who urged a tax upon | volume sales rather than net income. CASUALTY INSURANCE and_all forms of Insurance J. Blaise de Sibour & Co. INSURANCE BROKERS 1700 Eve St. N.W. NAtL. 4633 {100 TO ANYONE WHO CAN FIND ANY WATER IN FAIRFAX arranged KING facilities for patrons while C Street between Sixth and Seventh northwest is ing repairs. Ji [ Parking Lot red until C St. is reopened to traffic. BUTLER-FLYNN 609 C St. N.W. Mefro. OISI Established in 1845 Tl\ed\nmfnfu mw:,l?'- is shaped the servic renders. 7 ©® QUALITY NEWSPAPER ENGRAVING Woman’s diamonds. Diamond Platinum 10 NAZIS RAGES Jewish énd German Groups Praise and Denounce La Guardia. By the Associated Press. NEW YORK, July 31.—New York Jewish and German elements renewed protests and counter-protests today over the attitude of Mayor La Guardia and incidents of alleged religious per- secutions in Germany. ‘The mayor was denounced at two mass meetings of German-Americans last night as an “inciter of race hatred.” He was praised at a meeting of Jews of German origin, where Representa- tive Emanuel Celler rejoiced that “his name has rung around the world.” The Commonweal, a Catholic week- ly, demanded editorially that Catho- lcs boycott the Olympic games to be held in Berlin in 1936. ‘The mayor, meanwhile, continued in his refusal to grant a masseur’s license to Paul Kress, Germean alien. Kress, declaring himself uninterested politically, said he would carry the matter to court. 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Members of the League of National German Socleties and the friends of new Germany adopted a resolution lemanding that the mayor “cease his ill-considered attitude toward citizens and prospective citizens of German stock.” Joseph Schuster, acting national leader of the Friends of New Ger- “Do not patronize the Jews! away their last penny!” A meeting of the German-Amer- ican Conference of Greater New York denounced La Guardia, Senator King of Utah (who attacked German policy in the Senate); William Green, president of the American Federation of Labor, and Samuel Untermyer, at- torney, who has advocated a boycott of German trade. PROTECTIVE LAW ASKED Take 4,000,000 Holders of Defaulted Realty Bonds Held Jeopardized. An appeal for legislation to guard 4,000,000 citizens holding $8,000,000,000 | in defaulted real estate bonds was| made yesterday to the House by Rep- resentative Sabath, Democrat, of Illi- nois, chairman of a special committee investigating bondholders’ protective groups. Much of the work of the| committee will be wasted without leg- islation to back it up, he said. MEETING TO PROTEST GERMAN PERSECUTION Jewish Community Center Hear Heads of Several Civie Organizations. A mass meeting to protest religious persecution in Germany will be held at 8:30 tomorrow night at the Jewish Community Center, Sixieenth and Q@ streets. Rabbi J. T. Loeb of the Southeast Hebrew Congregation, who is aiding in arrangements. asks the public generally to attend. The meeting, according to Rabbl Loeb, will be addressei Ly heads of ‘several civic organizations and lead- ers of various faiths. A committee of 100 members will b2 appointed to replace the tempocary committee formed to call the meeling. The demonstration 1s erranged at the request of the American Jewish Committee, the Americaa Jewish Con- gress, the B'nai Brith and the Jewis] Labor Committee. . MEDALS BILL PASSED Senate Acts on Measure Recom- mended by President. ‘The Senate yesterday passed and sent to the House a bill providing for the striking of medals instead of coins for commemorative purposes. President Roosevelt recommended to instead of protecting rights of bond- | holders, he charged, the protective committees have obtained bonds by misrepresentation and then allowed | Americans of Jewish faith were the | real estate to be sold for 4 or 5 cents | integr: objects of discrimination in Germany, | on the dollar. | EN SUITS Irish Linens! = Thorough- breds with enough body to keep them in good shape, and a cooling system second to none. 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