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WEATHER. (U. 8 Weather Bureau Forecast.) Cloudy, possibly showers tonight; tomor- row fair; probably followed by thunder- showers; temperature about unchanged. The only evening paper in Washington with the Associated Press News Temperatures—Highest, 96, at 5:15 p.m. yesterday; lowest, 78, at 6 a.m. today. Full report on page A-9. Closing N. Y. Markets, Pages 13, 14, 15 ¢ Foening Star == WITH SUNDAY MORNING EDITION Yesterday’s Circulation, 121,581 ‘Some Returns Not Yet Received. TWO CENTS. TAX BILL MEETS b.0.P. ATTACK IN LIMITED DEBATE v Is Cut =\ /9 : | to Six Hours—Treadway Qm/ { ’ % N | Raps Morgenthau, orr‘Ll:. S WASHINGTO [ ;i 3 Entered as second class matter ) Means Associated Press. post office. ‘ashington, D. C. Sellers Admitted Smoking Cigars 'From “Box,” Miss Patton Avers D. C, FRIDAY, AUGUST 2, 1935—THIRTY PAGES. y PEACE FORMULA REFUSED BY TAL AND ETHIOPIANS League Council to Hold Cocktail Party, Hoping to Gain Compromise. No. 33,330. NAZIS, THREATEN FOFS WITH DEATH UNDER NEW CODE Drastic Regulations Set Up as Nation Pays Tribute to Hindenburg. FDRE'IGNERS WARNED; 4 - . i i { | TIME LIMIT ON DEBATE SWISS WRITER OUSTED | ; DISLIKED BY MUSSOLINI 5 3 e / ! ¥ ¢ 4 ; Selassie’s Delegates Opposed to TN / | &5 . . Charge of Subservient Congress AH HA!-Look BoYs, THERE'S SMOKE! SEE WHAT WE CAN GET OUT OF IT! = AN i House Discussion HILL SAYS ORDINARY BUDGET IS BALANCED rinise l\ Repressive Measures Looming‘ Against Other Newspaper Correspondents. By the Associated Press. BERLIN, August 2.—Roland Freisler. state secretary for the ministry of justice, disclosed today that activity against the Nazi party and its organ- izations will be regarded as trgason | against the people and will be punished | by death under the new criminal code. “It must be clear that the Nazi movement is the pillar of the German nation and it must be protected by provisions against treasonable activ- sties by the coming code,” he said. The state secretary outlined 15 points, many of them dealing with technical questions, to be covered by the forthcoming sweeping penal code. Acts of Foreigners Defined. “Treasonable activities against the people are the most severe crimes,” he said. “Traitors place themselves outside the community and a severe crime of this kind must be punished with outlawry, including the death penalty.” Severe punishment also would be provided for treasonable action by foreigners, he added, but such action could not be termed treason, because foreigners are bound only by an obli- gation of hospitality. not by ties of allegiance to the nation. His pronouncement was issued as Nazi Germany observed the first an- niversary of the death of Marshal Paul von Hindenburg, but excluded the war veterans who were close to the marshal’'s heart—the Steel Helmeters —from participating in memorial sery- | 8lso received testimony from Norris | Ices at his grave. Flags flew at half mast while me- morial services were held at all army garrisons and at various monuments. Army Rapidly Expanding. The day also marked the end of the first year of absolute rule by Reichs- fuehrer Adolf Hitler. While Von Hin- denburg lived, Hitler was. only chan- cellor, but immediately thereafter he assumed sole power. MISS §0NNIE PATTON, | By the Associated Press. A 17-year-oid daughter of Repre- | sentative Patton, Democrat, of Texas testified to th- House Rules Commit- | tee today that E. V. Sellers, N. R. A, employe, had told her he knew a box that her father took from the hotel | | room of Johr. W. Carpenter, Texas utilities official. contained cigars. Miss Bonnie Patton, on the stand only a few moments, quoted Sellers as telling her after seeing newspaper headlines about the box: | “That's absurd. I guess I know that was cigars in that box. I smoked some of them myself.” Previous! Sellers g had smoking any of them. The committee, investigating lobby- | ing for and against the utility bill, denied | —A. P. Photo. | Shook, nephew of the Representative, | that the box contained cigars. | It has been testified Patton took | | the box from the hotel room before | the House voted on the utility bill.| | Patton said it contained cigars. | Leo Brennan, clerk of a hotel where | | Sellers lived here, testified that Rep- | resentative Blanton, Democrat, of Texas day before yesterday settled the former's bill in cash, amounting | to $69 and some cents. | Shook testified he knew the box which Patton received did contain cigars, and named the brand. He said Patton brought the box down after going up to Carpenter’s room | while Shook and Sellers waited below. He added that Patton did not open ! (See LOBBY, Page 3) WHEELER MAY END UTLITY BLL AT PLAN BELTSVILE RESETTLENENT | Germany's army, which Von Hin- Senator Hints Cohen Will!U. S. Project Expected to denburg disbanded after the World ‘War, meanwhile, was well on its way to rapid reconstruction. The new army has been spread over the Reich by Von Hindenburg’s successor as fast as gar- risons can be built. The Volkszeitung compared the former president to George Washing- ton, first President of the United States, saying: “The same words which refer to Washington can be applied to Von Hindenburg, ‘first in war, first in peace and first in the hearts of nis countrymen. ” Praised for Christian Aims. The Catholic newspaper Germania reminded the Reich that Von Hin-| denburg embodied Christianity Germany. Secret political officials, meanwhile, denied emphatically that Werner Neumann, killed “as a peace dis- turber who attacked a secret police- man,” was Jewish. “Werner Neumann was an Aryan and had nothing whatever to do with Jews,” said a spokesman for the secret police. “Stories that he was non-Aryan Just amount to atrocity mongering and there is nothing to them.” Swiss Newsman Banished. Meanwhile, the propaganda min- istry’s heavy hand fell today upon Dr. Ernst Klein, the Berlin corre- spondent of the Swiss Protestant newspaper Basler Nachrichten. He was ordered to get out of Ger- many within five days and the order was regarded as the first action in repressive measures threatened against foreign correspondents. Officials of the propaganda ministry have been busy for the last few days calling in foreign correspondents and telling them their reporting does not please the Nazi regime. During previous months only younger correspondents who have not been in Germany long or who do not represent large and influential news- in papers or nations were called on the | carpet. But during recent days the ministry has called in men who have been in Germany more than a dozen years, among them two former presidents of the Foreign Press Association. | Be Barred to “Test” | House Conferees. By the Associated Press. Chairman Wheeler, Democrat, of Montana, of the Senate conferees on the utility bill indicated today he might agree to leave Benjamin Cohen out of the conference councils as a “test of the good faith” of the House members. | Wheeler said he would meet Sen- ate conferees Monday to discuss whether they might recede from their | insistence that Cohen, P. W. A. at- | torney, be present in the conference | chamber while the bill is under dis- cussion. His announcement followed action of the House yesterday in voting, 183 to 172, support of its conferees in in- sisting that none but members of Con- gress be present at the conference ses- sions on the hotly-contested bill. “I think the action taken on the | part of the House conferees was un- precedented in the annals of confer- ences between the House and the Sen- ate,” Wheeler said, “but nevertheless I am anxious to see a good bill passed. | Would Test “Good Faith.” ‘4 “If we yielded on Cohen it would test the good faith of the House con- ferees as to whether or not they want | eliminate unnecessary holding com- | panies.” | Meanwhile, some legislators pre- dicted the ulility bill may now die in conference. On the other hand, some saw a possibility of a compromise to settle the angry quarrel about compulsory dissolution of holding companies called “unnecessary.” A chasm wider than ever separates | the Senate and House conferees on the measure as the result of the House action yesterday. After a debate broken by shouts, jeers and applause, that chamber again voted down compulsory aboli- tion, 210 to 155. Representative Rayburn, Democrat, of Texas, a leader in the struggle for | (See UTILITIES, Page 3.) Mrs. Pritchard Is Found Dead; i Dog’s Howls L The plaintive and persistent yelps of a pet dog led to the discovery this afternoon of the body of Mrs. Lillian 8. Pritchard, about 70, widow of the late Jeter Pritchard, former United States Senator and District Supreme Court justice. Mrs. Pritchard apparently had been dead for two days when her body was found in her home where she lived alone at 1317 M street. The body was fully clothed and death from natural causes was indi- cated, according to members of the homicide squad, who investigated. Mrs. Pritchard’s pet dog howled and yelped in alarm until the neighbors finally investigated. Mrs. John Fowler, 1424 Sixteenth street, a friend, talked with Mrs, Pritchard on the telephone late Tues- day and said Mrs. Pritchard had told her she was not feeling well, A next door neighbor heard the pet dog barking today and called Mrs. Fowler who went to the house, When she got no response to her knocks, Mrs. Fowler called police. They en- tered the house and found the body. Mrs. Pritchard served on the J " Commission of the District from Ji ead to Discovery |uary 1, 1929, to May 20, 1931, Her house had been sold at auction a few weeks ago, police said. Mrs. Pritchard was the former Lil- | lian E. Saum of this city. The couple was married November 14, 1903. Justice Pritchard served on the Dis- trict Supreme Court bench for less than a year, being appointed in No- vember, 1903, after serving as United States Senator from North Carolina from 1894 to 1903. He died in 1921 after a noted politi- cal and judicial career. He had teen a member of the North Carolina State Legislature, a candidate for :ieu- tenant governor, delegate-at-large to the Republican National Convention and judge of the fourth Circuit Court of Appeals. He was an intimate friend of Pres- idents McKinley and Roosevelt. Clouds Threaten Polar Take-off. MOSCOW, August 2 (#).—Low in the take-off of the polar plane clouds between Moscow and Barents which hopes to reach the United States | Sea today threatened a further delay over the top of the world, | a bill with teeth in it which would | | Provsle Low-Cost Hous- | ing for 2,000 Families. \ | A 2,000-family “suburban resettle- ment” community at Beltsville, Md., is being blue-printed today by the Rural Resettlement Administration of Rex- ford Guy Tugwell. Basis for the plans is to give low- cost housing to the families of the 570 workers, ranging from scientists to laborers, now connected with the Beltsville Experimental Farm of the Department of Agriculture. | The community project would go hand in hand with further develop- ment of the farm into perhaps the | largest field laboratory of its type in ' the world, to provide jobs for many more persons. 150 Transferred to Farm. At present, contracts for construc- tion amounting to $260,000 are being fulfilled with P. W. A. grants and within the last two weeks, transfers of two department subdivisions put | 150 more men on the farm. These { two groups are the Bureau of Ento- | mological and Plant Quarantine and | the Division of Animal Disease Re- | search. Little could be learned from Tug- well's office concerning the plans be- | yond the fact they are still “nebulous.” | The survey must be approved, first by the Works Progress Administration, under Harry Hopkins, and then by the President, before funds for the | work can be obtained. | | Similar surveys for establishment of | | subburban community homesteads are | | being conducted for 12 other cities | throughout the country. The small- est number of families any single sur- vey contemplates housing is 2,000, for, it is pointed out, expenditures of work relief money for fewer than these| families would be practically useless | and wasted. Would Relieve Overcrowding. ‘The theory behind the suburban resettlement plan is to relieve over- crowded conditions in urban areas by moving large groups of unemployed to points within 30 miles of the city, where they are to be established in self-dependent communities. In most of the centers communal industries will have to be provided, but at Beltsville, with its 5,300 acres, the industry already exists in the agriculture experimental work, which is constantly being expanded. The housing provided for the fami- lies would be varied—apartment build- ings, two-family and three-family dwellings and individual homes. They would be constructed at the original expense of the Rural Reset- tlement Administration and paid for by the occupants on a low finance basis over a period of 20 years or even more. Stores and Power Plants. Within the community, as the gen- eral theory has been worked out by Tugwell’s aides, there would be cen- tral stores, power plants and other communal activities necessary to re- lieve the development from any de- pendence on outside contacts and also to provide as many jobs as possible within the community. The administration is confident there is enough acreage vacant at the PBeltsville farm to provide for all the families that would be cared for. Any speculative increase in land prices about the areas under contem. plation, if other land had to be bought, might result in complete aban- donment of the idea, for, it is pointed out by a Tugwell spokesman, tow-cost housing and high-priced lagd do not | i | modifications of the formula which | ence seeking news Plan Because Voice Not Given in Settlement. (Copvright, 1935, by the Associated Press.) GENEVA, August 2.—Both Italy and Ethiopia today rejected a Franco- British formula for the settlement of the Italo-Ethiopian dispute. Leaders of the League of Nations, called to extraordinary session of the council in an effort to prevent war, found they were unable to change the two nations’ attitudes. ‘They canceled plans for a zession of the council in the late afternoon and decided on a cocktail party in- stead. Hope, was expressed that this informal type of meeting might re- £ult in some kind of compromise. Premicr Mussolini turned down the formula on the grounds that there | should be no time limit for the pro- jected political negotiations among France, Great Britain and Italy. | British Ideas Spurned. The British want them ended some | time in September, while the Assem- bly and Council of the League are ir regular session. This would enable the British to demand a League ex- | aminction of all aspects of the con- | fiict if the political consultations col- lapse. Strong indications were seen that the British were stiffening their atti- tude and would decline to accept the | Mussolini asked. The Ethiopians were represented as | cpposed to the formula on the grounds that they would not be full-fledgea | participants in the proposed confer- ence to decide their state in the con- flict with Italy. Furthermore, they are hostile to con- | versations based on the Anglo-French- | Italian treaty of 1906, deeming that the treaty dishonors Ethiopia since it does not bear Ethiopia’s signature and was concluded without its approval. It was reported in League circles that Tecle Hawariate, the Ethiopian delegate, told Premier Laval of France | and Anthony Eden of Great Britain: “We would rather be murdered than commit suicide.” The Ethiopians also objected to the powers’ decision to have arbitrators discuss the ownership of Ualual, the border village where hostilities be- | tween Ethiopia and Italy broke Du(‘ last December. They were reported to have said, “We can give away no more " The idea of the cocktail party | came largely as the result of the murmuring of representatives of lesser | nations in the Council who, thus far, | have not participated in the negotia- | tions and feel that they have been | slighted. “We have not come to Geneva to | play bridge,” said one delegate. | French Optimistic. | Despite the fact that Mussolini had balked at accepting the suggestions | for a peaceful solution of the conflict | with Ethiopia in their entirety, French ' delegates said they were optimistic, be- | lieving the outstanding points would | be cleared up rapidly. French and Italian experts con- | ferred immediately after the confer- phraseology of | the text of the formula. Some of | Mussolini’s objections had to do with the wording and punctuation of the text, Laval indicated a complete accord had been reached concerning the method for resuming the arbitration of the frontier clashes which brought the present crisis to its head. Observers regarded the formula as a distinct concession to Italy. Al- though a British spokesman asserted England made no “substantial” con- cession from its previous firm stand for decisive action in the impasse, Mussolini apparently succeeded in having his way on most of the con- troversial points. League observers said the new resolution yielded to Italy its two chief demands: 1. “Hands off” by the League from examining the entire controversy. 2. Revival of the Conciliation Com- mission—limited strictly to determin- ing the responsibility for frontier in- cidents without discussion of territorial sovereignty. A renewal of the conciliation efforts was considered generally foredoomed to failure. At Il Duce’s insistence, it was under- stood, a phrase of an earlier resolution pledging Italy not to resort to force was omitted from the new formula. BRITAIN EVOLVES PLAN. | Would Offer Italy Guarantee of Colonial Security. By the Associated Press. LONDON, August 2.—Sir Samuel Hoare, foreign secretary, indicated (See ETHIOPIA, Page 5.) NAVY MACHINIST’S-MATE KILLED IN PLANE CRASH George A. Reese Dies When Ship Goes Into Spin Near Ocean View, Calif. By the Associated Press. ,./-—~§\\\\-\\ JENGE, ARRESTED, DENIES MU Finally Admits Identity, but Disavows Mutilation of 1 Ex-Fiancee’s Mate. | By the Associated Press CHICAGO. August 2.-—Mandeville W. Zenge, 26-year-old carpenter, was apprehended today in connection with the pen-knife mutilation and slaying of Dr. Walter J. Bauer, 38, who, three weeks ago, was married to Zenge's former sweetheart. Zenge was seized on a West Side street by State's attorney's police at 3:20 am., on information supplied by an anonymous tip. - He denied he but refused to make any other state- ment, Capt. Daniel Gilbert of the State's attorney’s office said. { Por several hours Zenge denied his his denial, even when confronted by his father, J. Andy Zenge, retired dairy farmer of Canton, Mo. The prisoner admitted he was Zenge only after his father told Capt. Gilbert he was the man they were seeking. Talked Irrationally. Harry Hoffman, psychiatrist in charge of the Cook County Behaviour Clinic. was called in, Capt. Gilbert said, because young Zenge was talking irrationally. The elder Zenge urged tell the police everything. “If you are innocent of this awful thing, talk” said the father. “W=| believe yoi | The son, who, in what purported to be a suicide note left at Navy pies yesterday told of brooding since Louise Schaffer, night superintendent 4 | his son to of nurses at a Kirksville, Mo., hospital married Dr. Bauer, sulked in his chair. Capt. Gilbert disclosed that at mid- night last night he had received a telephone cail informing him that Zenge was staying at a Madison street flop house and had made a telephone call from there. Traced to Cicere. He hurried there with detectives, | but learned that the suspect had checked out. A roomer, however, had heard Zenge make a telephone call, and had written down the number. The was traced to an address in | the vicinity of Cicero and West Madi- son street and the detectives went | there and waited. | After several hours of waiting they spotted Zenge on the street and took him into custody. He was wearing an old gray tweed suit and a dark cap, which detectives said he had bought at a West Madi- | son street second-hand store. In his | | pockets he had $4 and in one shoe | detectives found $20 more. He was not armed. | TRIO SEIZE $24,000 | IN BOLD HOLD-UP| Denver Gunmen Escape With Cash, Stocks and Gems of Real Estate Man. By the Associated Press. DENVER, August 2.—Three gun- men escaped with $24,000 in cash, stocks and jewelry today after they held up Max Schwartz, real estate man, in his office on one of Denver’s principal downtown streets. ‘The men left a parked car and fol- lowed Schwartz as he opened his | office. One man remained at the | wheel. Readers’ Guide oo A9 .A-2 Vital Statistics. Roosevelt Decides To Drop Slur on Sanity by Cramer Criminal . Action Held Possible for Witness in Senate Quiz. By the Associated Press. | JURY HOLDS CLERK - INCOURT PROBE /Indictment Accuses C. B. i Sherwood of 11 Em- bezzlements. The White House indicated today | no action would be taken against E. P. Cramer, Plainfield, N. J., advertis- ing man, who testified yesterday to the Senate Lobby Committee thai he had suggested a “whispering cam- paign” that President Roosevelt was insane, The President himself has taken no recognition of the testimony. Legal experts believe criminal ac- tion could be instituted under the libel law, but apparently this is not | performed the operation on Dr. Bauer, | going to be done. It was indicated the matter would be dropped Cramer testified he was “ashamed” of what he had done and had no basis |identity and for a time persisted in | for any belief that the President was 55 financia insane. 30 MORE D. . J0BS CUT RELIEF ROLLS Allen Pushes Employment on Wide Front With $45 Wage Paid. Washington's work-relief drive struck a new stride today when Commissioner George E. Allen ordered an additional 300 men put to work at $45 security wages on widely scattered highway projects. ‘These men joined the 1420 laborers who yesterday initiated the drive to deplete the local relief rolls by Novem- ber 1. Encouraged over the success of the first two days progress in cutting down the dole by substituting gainful em- ployment, Commissioner Allen esti- mated the next two weeks would see 3,700 men at work on projects under municipal supervision. The Works Progress Administra- tion expects to provide employment of 1,200 men for next week on improve- ment jobs at Bolling Field and the Navy Yard. These are Federal proj- ects on which several hundred men taken from relief rolls here are al- ready at work. Some Get $79 Wage. While common labor is paid $45 a montk, skilled labor will Teceive wages up to $79, the maximum permitted under the administration’s work prog- ress program, in this territory. The work at the navy yard, is was said, will require the services of many skilled craftsmen who will benefit by the higher wages. Another force of approximately 700 men will be taken from the relief volls the following week to initiate a rather extensive program of sewer buildings and improvements. The District’s planned projects for sewers failed to receive White House approval as a separate and distinct works project. Available relief funds however, will be used to initiate sewer work on a smaller scale. The local Works Progress Adminis- | tration, of which Commissioner Allen is the head, meanwhile was working on | other plans to provide future employ- ment as Federal funds become avail- able. Allen was giving attention to 2 program to put 3,000 domestics into service. These plans are by no ways completed, but he expected within the next month that a considerable num- ber of women would be given instruc- tions in domestic duties to find private employment. Road Jobs to Add Men. As work continues on the 56 high- way projects which initiated the Wash- ington program, Allen expects to ab- sorb additional labor from the relief rolls from time to time. ' The Pederal Works Progress Ad- ministration has approved only $1,236.- 000 in works progress up to this time. This involves the general highwa¥ projects by which the District can draw funds as needed. Commissioner Allen altogether has submitted 59 Washington Wayside. ‘Women's Features§.B- projects of a general character, total- ing $4,715,722, tg.the Federal admin- istration, ! Clinton B. Sherwood, allegedly $1.- 280 short in his accounts as financiai clerk of Police Court, was indicted to- day on a charge of embezzling money from the District. At the same time, Assistant United Siates Attorney Henry L. Schwein- haut, who presented Sherwood’s case to the grand jury, said he does not (xpect any more indictments based or reported irregularities in the Po- iice Court. An investigation, he said has convinced him the irregularities | are not of 2 nature justifying criminal prosecutions. | | Shetwood, who has been replaced 1 clerk, was charged with 11 specific embezzlements totaling £505. The Government contends, | however, that he took money on 41 other occasions. The thefts charged |in the indictment allegedly occurred from Jsnuary 1, 1934, to October 8, 1934, Probed by Department. The charge against Sherwood re- sulted from an investigation of Po- lice Court administration by Depart- ment of Justice agents. Grand larceny charges against three servants, alleged to have taken $5.600 from the fireplace of the home of | Sylvia Weinstein, 2801 Bellevue ter- e, were ignored by the grand jury. The money, which had been con- cealed - in the fireplace, belonged to Sylvia, Max and Meyer Weinstein. Police recovered $4.700. The servants exonerated are Esther Berger, Annie E. Berger and Lonnie Jones. Others Are Indicted. Others indicted are: James Alvin Gorman, Tilman Bos- tic and Roy Lee Glover, non-support; James E. Boland, James Tolliver, Le- roy Norris, Ulysses Smith, Hawthorne Smith and John Henry Smith, joy- riding; Hawthorne Smith, Ulysses Smith. John Henry Smith, Thomas Edward Sheehan, Jacob G. Grisso, Ethel Douglas, Henry Small, Miles Du Bose and George Simpson, robbery; James Ray Roderick, Robert Martin and Betty Martin, violating white | slave traffic act; Harry Henry Hester, pandering; Carrie Anderson, Mildred Beatrice Gales and Thomas Newman, | assault with a dangerous weapon; Judson F. Thowmason, violating section §51-b. District of Columbia Code: James Harris, Edward P. Thomas and Richard Turner, grand larceny; John Burns, George Woods, James Foster and Alfred Penn, housebreaking and larceny. and Alphonso Young. house- I.Jreukmg. Nlae Are Exonerated. Others exonerated by the jury are: Fred Ratliff, Jerry Funk and Marie E. Funk, assault with a dangerous weapon; James Marshall, violating sec- tion 851-b, District of Columbia Code; Jerry Murray and Gladys Frances Smith, grand larceny: James { Henry Steele, receiving stolen prop- erty; Fitch Diggs, robbery, and Eliza- beth Rella Clagett, homicide. | to dispose of the administration Obeying White House Face- Saving Demand Is Hurled. BY JOHN C. HENRY. Running into a fiery blast from Rep- resentative Treadway of Massachus: ranking minority member of the House ‘Ways and Means Committee, House Democrats today opened their drive ‘ax bill by tomorrow night The assertion that Secretary of tr Treasury Morgenthau “either ashamed of” the $270.000.000 measure or lacked the ability to analyze it made by Treadway after the H met at 10 am. to open debate under 6-hour limitation Treadway assailed Morgenthau fm his refusal yesterday to analyze the measure before the Senate Finance Committee, and added “Of course, he didn't state his vie He doesn't have any.” the New Enc lander shouted. “I've riever seen ¥ indication of views on his part.” Treadway 2lso referred to Senator Byrd's characterization of the pend- ing bill as a “farce.” Byrns Hastens Action. Prior to opening today's sess Speaker Byrns repeated majority de termination to finish discussion of the bill by tomorrow If necessary. he said. the House will meet late thi afternoon to dispose of the full hours and start on the amendment Absence of a quorum at 10 am forced & roll call, with consequ delay, and it was 10:45 before debate got under way. Representative Samuel B. Hill, Dem- ocrat, of Washington, opened debate on the measure. Ranking next to Chairman Doughton among majority members of the House Ways and Means Committee. Hill announced his intention of dealing with the techni- cal features of the legislation. He opened his remarks, however, by de- fénding majority action in their course of drafting the measure. Hits Secrecy Charge. “Tax and tariff bills are not dr until the committees have listened opinions of experts on the needs em- bodied in the legislation,” he saia “Our Republican friends charged we drew this bill in secret. Well, the ve- sponsibility was ours, and the pra is one which has beex: followed in years by Republican majorities “We have brought in a bill which we feel we may commend to the House “We have heard much of the cry to balance the budget. The ordinary budget is balanced now. This issue is a bogey man.” Hill next outlined the specific pro- visions of the ! 1l principally the new surtax schedule from the $50.000 net income bracket, the graduated corpo- ation levy of 13', to 14'4 per cent, the excess profits tax of 5 to 20 per cent on profits above 8 per cent in- come on adjusted declared value and the inheritance tax from 4 to 75 per cent. In defense of the innovation of a graduated corporation income tax, Hill declared the principle is the same as taxing individual income on a basis of size. ice Hits Bigness. “The corporation influences are the most powerful in the country today.” he said. “and the larger a corpora- tion’s income the greater its economic power. “You know, as I know, that the little stockholder has no voice in die rection of the corporation. He is as (See TAXES, Page 4) THEATER IS BURNED St. Louis, Was Scene of Symphony Concerts. Odeon, ST. LOUIS, August 2 (#).—Fire early today destroyed the Odeon Theater, which for many years was the scene of the St. Louis Symphony Orchestra concerts. The theater, which had a seating capacity of about 3,000, had been used in recent months for motion pictures and vaudeville programs. Fire Chief John J. O'Boyle said he was unable at the time to place an estimate on the damage, but other sources estimated it at $100.000. The St. Louis orchestra gave its concerts at the theater until comple- tion last year of the city’s auditorium. Tunnel Crews “Hole -Through,” By the Associated Press. TWENTY-TWO FEET UNDER HUDSON RIVER BED, MIDTOWN TUNNEL, NEW YORK, August 2.— | New York's new midtown tunnel to the New Jersey shore, a cylinder of steel more than a mile long, was holed | through early this afternoon. | In the damp coolness of the caisson | off the Thirty-ninth Street Pier the | | “sand hogs” came through with picks | and shovels while two small armies of spectators, on either side of the wall | of muck, cheered themselves hoarse. | As the hole widened enough to per- ‘smlt & man to get from the New Jersey side of the bore to the Manhattan side, marking another step in the con- quest of man against nature, Harry Spritling of Elmsford, N. Y., a master mechanic and veteran sand hogger, squirmed his way through. Next came Ben R. Jacoben, super- vising engineer for the P. W. A. Bedlam broke lodse as the way was opened for a vehicular passage-way under the Hu from water-bound Manhattan Isifind to the New Jersey | shore to the west. Meetihg 22 Feet Under Hudson Sand hogs, who had worked since last September under heavy air pressure and in im- minent danger of injury or death, wiped their faces and grinned hap- ily. . i It is only an iron cylinder now, that bore, weighed down by thousands of tons of muck and water, but in 18 months more it will be a 2-mile high- way down which sleek cars will glide. Some facts about the new midtown Hudson River tunnel: Estimated cost, $37,500,000. Pinanced by bonds of the Port of New York Authority. Work of tunnel began September 29, 1934. Average progress each day through silt was 30 feet Tunnel to be completed for use as anether link between Manhattan and New Jersey about January 1, 1938. Jersey terminal 1s at Weehawken, | Manhattan terminal is at Thirty | ninth street and Tenth avenus, Tunnel is §2 feet beneath river bed.