Evening Star Newspaper, August 2, 1935, Page 2

DEATH PROVISION " HELD SECONDARY Utility Bill Deadlock Jeopar- dizes All Regulation Sought. BY DAVID LAWRENCE. Another conspicuous controversy which could be handled within the Constitution is that relating to utility Tholding companies. The Senate aad House conferees are at the moment deadlocked on the question ‘of whether the utility hold- ing companies shall be regulated or destroyed altogether, and neither group of conferees has seemed Wwilling to recede. But it would be most regrettable if the bill failed entirely because apart from the discussion of the “death sentence,” there is much merit in proposal to prevent abuses and evil features of holding companies from being perpetuated. The utility business in so far as holding companies are concerned con- sists of these phases—the furnishir of capital for sound engineering pro; ects and for the gradual increase Tacilities, the sale of that capital to investors generally, and the manage- ment or supervision of a series of elec- tric light and power companies by a parent company. Evil in Security Sales. Now, the chief trouble is that the parent or service companies have not been confined to that function. but have in some instances developed into speculative devices for the sale of securities or for the extraction of fees for the benefit of affiliated companies ranging all the way from management of the engineering kind to financial advice. Many of the practices complained | of that relate te the sale of securities have been corrected by the securities exchange 1aw, but to the extent that this law relatss only to new issues of securities, it doesn’t of course touch existing financial operations. So there is need for a Pederal law to supplement State laws with refer- ence to the marketing of utility se- curities and to make sure that there is no misrepresentation of assets or earning power or any other material fact about the business’ State laws. moreover, should be strengthened and State commissions urged to scrutinize inter-company transactions There is alsc need of a Federal statute governing the sale of electric current across State lines, as this is a field in which the Supreme Court + has indicated that the States have no rights. Reachatle by State Laws. Undoubtedly there are some com- binations of tapital which foist upon companies they control certain fees or management costs that are unfair to minority stockholders, piling up ex- fair return and still reduce rates to | What's What | Behind News | In Capital A AR = pected. Tax Earmarking | | Held Unconstitutional, | | BY PAUL MA] | RIGHT young LLON. program. They what to expect | tax cases reach the e The result was dj concluded that 3t 1s 5 regse expectation that the co;rt 'lllnt::ll: the farm PFORTam unconstitutional (by a close Vvote, meaning 6 to 3 or 504 Independent legal au to the court figure that the decision ot even be close, They expect decision against the original do not believe that the A qmrn::enuh now being passed Co e chan L ged that pros- These forecasts are not bas personal polls of the jumcuedA:: . tried that would go to r contempt. But you need attempt i, if you will first the published opinions of stices in previous cases in- ¢ the same issues during the vears. These show that the New Deal's best legal n the court have sub- serihed to views about interstate and tazation which the legal theory om which the processing tazes are based. The A A, A. amendments have edged around the objection of dele- gaung authority, but they have not ed the power to tax one class r the exclusive benefit or the Boston Circuit 1 on interstate com- reason is they cannot. the proce ourt in tma;‘:lll‘, ning. They thorities close A 9- A friends de of of another Court merce \ X This mean ably go the A. A. A will prob- way of the N. R. A. be- fore C unless the smart New Deal lawvers find & way to avoid It. Spurning Explained. The real reason wny the House Ways and Means Committee silently med President Roosevelt's idea pl new taxes for reduction of the public debt is that the com- mittee believed this ides also was unconstitutional The committee through t had just passed During that fight mem- uded that you cannot ear- mark taxes the Constitution. fight on the social | consumers. These are reachable by They used devious methods to get State laws plus Federal laws that ahout this constitutional objection in clearly relate to transactions of a&n ' the security bill Consequently, when interstate character. Mr. Roosevelt's tax earmarking rec- ‘The impasse that has developed in ogimendation came up during an ex- conference should not be difficult to | ecutive session, the Democrats on iron out. The Senate conferees feel the commitice. by private agree- that experts should be present at the | Ment. paid no attention to it. sessions. They defend the practice of This is precisely the same legal securing the advice of technicians and | Point involved in the processing tax those who help draft legisiation. The | Cases. House conferees object to this. Wire Tapper Knewn. The way out is simple. The Senate| It is quite a large secret, but the conferees could meet separately with Scoundrel who tapped Congressman the experts and then gather formally | Rankin's telephone wire is known. At with the House members and the |least, a fellow Representative friendly amenities would be preserved. It has !0 Rankin believes he knows the been & long and arduous session €XPlanation of that foul deed. He Senator Wheeler, head of the Senate | "2 talking to Mr. Rankin at the conferees, has a delicate task in trying , {ime. They both noted a click on to get a bill satisfactory both to the | (Ne wire. and another click. Mr. . Benate, which divided evenly on the | R20kin's friend suggested to him, death sentence, and to the adminis- | MOT® O humorously, that some tration, which insists on abolition of | ON® Was listening in on them. Appar- | the holding companies. | ently Mr. Rankin did not catch the | humor of the idea, and subsequently Hand of President. | made a ¢ Nobody has done such yeoman serv- | Later the friend discovered that fce for the administration’s program | his secretary. on a branch line in the as Mr. Wheeler. He is unquestionably | Outer office. had been .picking up an experienced legislator quite capablz | the telephone ihroughout the conver- * of reconciling the differences in the | SAtion. wondering when it would end, e publicly to that effect. | measure without experts. His anxiety is. however, to follow the President’s Wwishes by having the experts present. The same may be said of Chairman “ Rayburn of the House Committee, who ‘wants to go along with the Pxestden’,‘ on the holding company issue, Unfortunately, therefore, these en- trenched positions have been too much emphasized, whereas the paramount ‘need is for a solution in some legisla- tion instead of having no legislation .8t all to regulate holding companies. The utility companies would be per- .fectly happy to have the bill lost in an indefinite deadlock and carried iover till next session, because they | . think they will gain instead of lose strength, especially since the investor . groups constitute a very large and | aggressive body of voters. The utility men have been heartened by the House vote in sticking to its guns notwith- standing the pressure brought to bear to change. But persons like the writer, who do not have and have not had a financial interest in or income of any kind from utility investments, or from any utility companies, are desirous of seeing fair play and of having the uncertainty 2nded which envelops a $12,000,000.000 industry and one which is capable of putting to work many of the unem- ployed. Re-employment Is Stake. Undoubtedly the expenditures of the utility industry had much to do with employment in previous years and if Congress passes a law of some kind and it is promptly tested in the courts the re-employment program will be accelersted. The utilities also buy raw materials from the metals groups of industries and this, too, is said to have made up & large part of what was an average expenditure of $1,000,000,000 a year be- fore the aitack on the utilities began. ‘That's why the Senate and House conferees ought to get together on a bill and dispose of the issue. The House and Senate bills both have un- constitutiqnal features which ought to be corrected so that regulation may really be obtained instead of delayed through prolonged legal controversy. (Copyright. 1935 SHIP BILL STUDIED President Takes Up Modification Proposal of Roper. President Roosevelt yesterday went over a plan for modification of the House ship subsidy bill in an effort to get satisfactory legislation at this ses- sin 'Je':rmry of Commerce lwpel&m- sented the plah and expressed the | because he wa Some top financial men in New York are worred about the report that Chairman Kennedy of the S. E. C. is reaching for his hat | and coat. They have a tip that Brain-Truster James Landis will succeed Kennedy and that Brain- Truster Ben Cohen will then be appointed to the commission. They fear that this will give the most successjul New Deal agency pink eye. t. but their in- terpretation may prove to be wrong. Mr. Kennedy has not gone yet, and many close friends are working on | him to stay. Furthermore, those in- | side the commission know that "n | the private sessions Kennedy has | been more radical than Landis. That | is, Kennedy has wanted to go after | more people harder. Kennedy's own personal brain truster on the com- mission is General Counse] Burns, also an ex-professor from Harvard. { He works very closely with Landis. Of course, the financial people do not know Landis as well as they | know Kennedy, but there is no rea- | son to believe that Landis and Cohen | would work together when and if the expected happens. Works on Speeches, | President Roosevelt | take it easy at his office, There have been few important callers on jhl.s engagement list for the last two | weeks. One day recently he left record early quitting time, The an- swer to that is he is supposed to be working on his coming Western speeches at home after hours, | Closest business crony of the elu- | sive H. C. Hopson (A. G. E, head) is a Mr. Mange, pronounced with & short “a.” All at the Lobby Com- mittee hearings pronounce it cor- rectly, except droll Senator Gibson of Vermont. who always insists on a long “a” and the stress he places on it gives it a significance which never fails to cause chuckles around the room. Third Set of Twins Born, PORTSMOUTH, Ohio, A, 2 and Mrs. Dan Rader of Franklin Fur- nace. He has just presented them belief later that action could be ob- M&ISMM?& their third set of twins, sons. They already had twin 13 yee 20 twin boys, 3, *L» 13 veers old, ed to use the phone. | THE EVENING RESORT SHOOTING CLAIMS TWO LIVES Mr. and Mrs. Molter Found Fatally Shot at Severna Park. By the Associated Press, SEVERNA PARK, Md., August 2.— The seclusion of this little ‘Summer colony was plerced today by investi- gations into the fatal shooting of Mr. and Mrs. Otto L. Molter. E The double tragedy in the home of the well-known realtor last night shattered the customary tranquillity of the resort between Baltimore and Annapolis. A joint inquest will be held tonight at Annapolis. Molter Shet in Head. Molter, 66, for 27 years maqager of the Baltimore office of the Bradstreet | Mercantile House and later associated | with Dun before the Dun-Bradstreet merger, died in an Annapolis hospital last midnight of a bullet wound in the head. Four hours eariier, he had been found unconscious ja the living room of his home, clasping a revolver. His wife's body, shot twice in the head, was in the dining room. They had heen married about al year and a half. Mrs. Molter, 51, was | the former Mrs. Mary Grant of New | York. Molter also was ‘previously | married. He was the son of the late | Julius Molter, a member of the New York Stock Exchange. Neighbor Finds Bodies. Molter had undergcoe treatment in two Baltimore institutions for nervous | disorders. The bodies were discovered after | Charles K. Lane, a neighbor, heard | five shots, saw Molter leave the house |and re-enter, when another shot | sounded. Three of the bullets were | found in the woodwork and the ceil- | Mrs. Molter was dressed in a light | | Summer frock for a card party to| | which she had been invited. Molter is survived by four sons. | | Otto J., Nelson and Charles Molter of | | Severna Park, and Hume Molter of | | Washington, and two daughters, Mrs. | | John Seager. Baltimore school teacher, | |and Miss Adelaide Molter, Brooklyn, | “N‘ Y., dancing teacher, | |CHINESE HALT FLYING | OF CROMWELL COUPLE Honeymooners Return to Shang- hai Due to Misunderstanding Over Landings. | By the Associated Press | SHANGHAL August 2.—A misunder- | standing over landing fleld rules | brought an abrupt end today to an ; airplane flight of James H. R. Crom- | well, New York. and his wife, the former Doris Duke, when authorities | at Hangchow, where they flew yeste day. detained their chartered air craf:. | | The Cromwells announced before | leaving here they intended to ses China from the air, but reports from | Hangchow said they had been forced | to return here by train. | Military authorities at the airport were reported to have detained the Cromwells’ American pilot, H. F. | Mitchell. but the honeymooning Cromwells were permitied to depart Details of the incident were not known | here, MAN STRIKES RiCH ORE UNDER BURNED HOME ‘Fire Loss Good Lurzk for South Dakotan Who Can Cash in at $860 a Ton. By the Associated Press. CUSTER, S. Dak., August 2—Sid H. Herber said he was feeling better yesterday, thank you. | Sid's house burned down recently | and he felt pretty blue about it. Dig- | ging around in the debris afterward, he found the house had been built on | a rock which looked as if it might be | gold-bearing ore. ‘The assay office in Denver after ex- amining some fragments told him it was “telluride ore, assaying $860 per ton.” The vein is 11 inches wide at the | surface, Herber said, and he expects | to work it in connection with other | ore bodies on his property., Herber's | nome is 8 miles from Custer. SIX NEWSMEN'FIGHT CONTEMPT CITATION Plead Legal Privilege in Publish- ing Testimony in Defiance of Court Orders. | By the Associated Press. | ANGLETON, Tex., August 2—Six | Houston news men today fought with legal arguments a contempt citation for publishing forbidden testimony | in the Clyde Thompson murder trial | here. | The six—George Cottingham, edi- | Chronicle correspondent; Max Jacobs, managaing editor, and Frank White, correspondent of the Post, and E. M. Pooley, managing editor, and Harry | McCormick, correspondent of the | Press—pleaded lega! privilege in defy- tor of the Chronicle, and Ed Rider, | STAR, WASHINGTO Richard Halliburton, American riding high, wide and handsome aboard his 12-year-old elephant, Dolly, which he hired from the Paris Zoo. He is traveling over the trail Hannibal inaugurated in 216 B. C. He is shown as he headed up the St. Bernard Pass to eventually reach the ninth century Great Bernard, Monastery, 8,111 feet up in the old Roman pass between Switzerland and Italy. D. C., FRIDAY. nelspaper man and travel author, —Wide World Photo. APOLOGY CLEARS BANKING BILL AIR | Goldshorough Meant No Re- flection on Senators, He Declares. By the Associated Press An apology for an accusation that | “influences surrounded a Senate com- | mittee” when it rewrote a credit con- | trol provision in the banking bill has | amoothed the way for a Senate-House conference on the bill Senate conferees, led by Chairman Glass., of a banking subcommittee. | accepted the apology of Representative | Goldsborough, Democrat, of Mary- land, who said: | “I intended no reflection upon the | loyalty, patriotism or integrity of any | member of the Senate.” After this statement, | & Senate-House | Glass called conference on the | measure for Monday. The Senate | conferees had refused to sit with House conferees until Goldsborough retracted his statement of last Mon- day. Qpen Market Committee, In his original statement, Golds- borough said the House measure pro- vided that the seven-man Federal Reserve Board should act as an open | market committee to buy and sell Government bonds in an effort to stabilize the price level. ‘Then, he declared, the Senate sub- committee agreed on a 12-man open market committee, “seven members of which must, as a matter.of law, be bankers—be members of a class whose interest it is to have the | people’s money as scarce as possible | and to have it cost as much as pos- sible.” | “You can reach your own conclu- sion,” he said, “as to the influences which surrounded the Senate com- mittee in writing a provision of that | | kid into this legislation.” | Apology Demanded. When the conferees assembled | Wednesday, the Senate managers told Representative Steagall, Democrat, of Alabama, chairman of the House group, there could be no meeting until Goldsborough apologized. Goldsbor- ough and Representative Hollister, Republican, of Ohio, both on the | Conference Committee, had to wait in the next room during this exchange. Goldsborough remarked that the House conferees faced a difficult task in preserving “a management which will not be in the interest of the banks, * * * the industrialist, and * * * aqy one class, but which will | be in the interest of all the people.” | Earlier Goldsborough accused the “great New York bankers” of having begun a systematic effort to “coerce” House members into coercing their conferees to accept the bill as ap- proved by the Senate. FOUR SEIZED IN NICE, BARING ALLEGED SPIER | Many Others Believed Involved TAY INJUNCTION HONBY PACKERS | Processing Levy Hit in Rul- ing of Chicago Federal Judge. By the Associated Press. CHICAGO, August 2—Ruling the | Federal processing tax is “not a tax at all,” Federal Judge John P. Barnes yesterday granted a temporary injunc- | UGUST 193 A.A. A. CONFEREES APART ON SUITS Processing Tax Question Threatens Agreement on Changes. By the Astociated Press, The future of the A. A. A. amend- ments was clouded today by uncer- tainty over what action would be taken on permitting suits for recovery of processing taxes. Representative Jones, Democrat, of of Texas, denied that House con- ferees on the legislation had tenta- tively accepted Senate amendments permitting suits where proof could be mld!lhlt'.heprmrhldnolpwed} them on. One of the conferees, Jones, said in a statement that a vision had been which processors could appeal to the collector of internal revenue for rebate if>.event the taxes are held uncon- stitutional, with the appeal subject to review of the court. Statement in Conflict. His statement conflicted with other sources of information that a tenta- tive agreement on the tax suit amend- ment had been reached, along with similar agreements on certain other provisions in the bill, but all subject to final action upon the return today of Senator Smith, Democrat, of South Garolina, one of the conferees. Jones' statement follows: | “The reports to the effect that the conferees on the A. A. A amend- ment bill have reached a tentative agreement to accept the Senate's pro- visions permitting processors to sue for recovery of taxes paid in event such taxes are held invalid are wholly er- roneous. “It is generally agreed by the con- ferees present that the processors, wholesalers and retailers should in the event the taxes are held invalid | be allowed to recover the amount of taxes paid on stocks which they have on hand and unsold at the time. Recognized as Fair. “Every one recognizes that this is fair and suits would be unnecessary. The only other suggestion that has been considered has been to permit | the processors to have no right to sue, but the privilege to file claims | for yefunds with the commissioner of internal revenue subject to rigid re- | view by the court for taxes the proc- essor can sho whe has paid and not passed on. “The conference has been informal and no definite action taken on any amendments.” & IROOSEVELT T0 FISH | DURING WEEK END | cloudy weather and possibl tion to 18 meat-packing companies | (, continues to | of Judge M. S. Munson. m!r::de;u;” hu:: told reporters at as German Is Revealed Re- the opening of the trial they would | ceiving “Information.” be jailed if their papers published the | testimony. | By the Associated Press. Two other defendants remained to| NICE, France, August 2—An al- | be tried and the judge said publica- | leged spy plot, for which four persons | tion of testimony would make selec- | were arrested, was disclosed today by tion of new juries difficult. police who said they suspected many were involved in the ring. A German, Eugene Hahn, was a rested Tuesday, charged with being | the spies’ “post office,” to whom pthers | brought information which Hahn co- | his office at 4:30 pm. which is 8| ()—The stork deals in pairs to Mr.| Senate. 3 | In recess out of respect to late Pred- | erick H. Gillett, former Speaker and Senator. flmm tax bill. Rules Committee resumes lobby in- quiry. | ' TOMORROW. Senate. will not be in session. A District subcommittee meets ut lonmm.innhflummm- funding of certain street paving as- ts. 'sessmen Continues consideration of tax bill. Patman Chain Stores Investigating Committee meets in veterans' com- mittee room. ordinated and forwarded. National Surety investigators occu- pied Hahn's apartment at Beausoleil, near the Monaco frontier, intercepted correspondence and arrested three per- sons who brought information for Hahn. | GLIDER CHAMP KILLED Squall Causes Accident to Ger- man Sailing Plane in Tow. ‘WASSERKUPPE, August 2 (P.— Rudolf Oeltzschner, German holder of the world glider championship, was killed yesterday when his sailing plane crashed as it was being towed back by an airplane from Czechoslovakia, where Oeltzschner landed after estab- lishing a record flight of 498 n'lp- meters. A heavy 3quall forced the airplane down, the glider crashing while the plane landed safely. » who sought to avoid paying about $7.000.000 in such taxes on pork. The meat packers, including Armour & Co, Swift & Co.# and Wilson & Co., among ihe largest in the Nation, | won a court order restraining the Internal Revenue Department from | enforcing payment of the overdue | | taxes, mostly for May. | In announcing his ruling, Judge Barnes term=d the tax a “deprivation of property.” Held Violation of Constitution. “I do not think this is a tax as- | sessable under either the Interstate \ Commerce or taxation powers of Con- ; gress,” Judge Barnes said in an oral opinion. “I believe it to be a violation of the fifth amendment to the Constitu- tion as a deprivation of property.” Judge Barnes ordered that the full amount of the unpaid taxes be placed | on deposit and_urged attorneys to speed the case to a higher court if an | appeal is made. The Government has | 90 days in which to appeal the case. Explaining his reason for urging a | quick settlement of the case, Judge Barnes said: i “I do not want to enrich the' | processors by granting this injunction. | | I want the saving passed on to the! consumers.” Tax Is Criticized, United States Districy Attorney | Michael L. Igoe did not announce his ' plans for an appeal. | | “As far as I can see,” the judge | | commented, “the so-called processing | | tax is levied for the purpose of taking money out of the pocket of John Brown and putting it into the pocket of John Jones. “Nothing has been shown to indi- | cate that it was a tax in support of | the Government.” | | OUSTED BY RELIEF MEN, 12 WILL APPEAL TO DERN | Workers on Army River Jobs Re- moved to Make Way for ! Crew on Rolls. By the Associated Press. OMAHA, August 2.—Twelve men, dismissed from Federal Army river Jjobs to make room for men on relief rolls, today planned to appeal their jobs to Washington. They have been | working 30 hours a week for $15. The relief recipients to replace them will work 40 hours for $18 a | week. Pederal regulations now re- quire that 90 per cent of the men employed come from the relief rolls. Simon A. Simon, attorney, who is | assisting the men in drafting a pro- test to Secretary of War Dern, said the men did not believe the intent | of the new Pederal works program | was to penalize men who have been | working hard to keep off relief. | {PROHIBITION HINTED | BY MEXICAN PRESIDENT | Cardenas Tells Women's Organ- izations Ban on Sale Will Be Imposed “if Necessary.” By the Associated Press. MEXICO CITY, August 2—Presi- | dent Lazaro Cardenas, turning from | Mexico's troubled politics to the pos- | sibility of prohibition, called today for | & campaign to free the nation “from the vice of alcohol.” A dispatch to the newspaper El Na- cional quoted the president as telling feminist organisations in the State of | Michoacan that laws prohibiting manufacture and sale of liquor would be put into effect “if necessary.” President Cardenas, who is travel- ing through the country and studying agrarian problems, has ofien displayed a desire to curtail the consumption of intoxicants, especially by Mexico's poorer classes. Taxes were raised re- cently to help achieve that end. |HUSBAND IN SLAYING ood Luck on Last Trip Spurs! President Into Planning Repetition. President Roosevelt had such good | luck fishing last week end that he is looking forward to a repetition during the coming week end. Plans have been made for a fishing cruise aboard the yacht Sequoia, but the President has not yet decided just where he will go. The President is contemplating a journey on the Rappahannock River, with a brief stopover at Tappahan- nock, Va., or else a cruise out of the mouth of the Potomac across the bay to Tangier Sound, along the Eastern Shore of Maryland. Fishing experts, whosé advice has been sought by the White House, reported excellent fish- ing at this particular time in the waters of Tangier Sound. Mr. Roosevelt hopes to get away from Washington about noon tomor- row and return Sunday night. THREE HURT WHEN 500 RIOT IN TANNERY STRIKE Arrested Winchester, Mass., Disorder—State Police Will Be Called. By the Associated Press. WINCHESTER, Mass., August 2.— Rioting by & crowd of 500 outside the Beggs & Cobb Co. tannery here, where a strike s in progress, today sent three men to the Winchester | Hospital. Two men were arrested | charged with disturbing the peace. | Police Chief William H. Rogers said he would ask State police aid in handling the situation. The rioting began when about 20 substitute workers arrived to begin | their duties. It was not ascertained whether the injured men were strik- ing employes. Police said the two arrested were pickets. Two in | ! | | SPURNS LIE DETECTOR | Sre O [ Justice Westwood Calls Attorney | When Attempt Is Made to Use Device. By the Associated Press. Card Sharps “Trim” Socialite of $19,200 And Land in Court By the Assoclated Press, NEW YORK, August 2.—Two men whom police described as “riders for whatever they could get” on trans-Atlantic ships were under arrest today on complaint of William Boyd, Park Avenue socialite, who said he lost $19,200 to them =t cards on the Europa. Boyd mentioned the loss to the purser. He reported it to the captain, who wirelessed the in- formation to the line’s offices. Louis Phillip was taken into custody as the ship docked yes- terday and Henry Dawson was arrested later at a hotel. They were charged with attempted grand- larceny and held in $500 PHILIPPINE BASES FORNAVY 0PPOSED Gov. Murphy Would Have U. S. Fleet Move After Independence Rule. (Editor’s note—This is the fourth of a series of nine articles describ- ing the attiture of the Filipinos toward their approaching inde- pendence, the problems that lie in their path and how they are likely to meet these problems.) BY JUNIUS B. WOOD. | MANILA, P. I, (NANA)—Gov. | General Frank Murphy's personal | opinons on Philippine independence bail in Night Court. . CLOUDS COOL CITY; STORMS HIT EAST Showers Forecast Tonight Followed by Fair Skies Tomorrow. Cloudy weather brought a measure of relief to Washington today after & blistering sun sent the mercury to 96 degrees yesterday afternoon. Two persons were prostrated when the heat reached its peak about 4 pm. Meanwhile, the Associated Press re- | ported 10 deaths in the East due to the heat and freak storms and at least 10 others in Chicago and other sections of the Middle West The current forecast is for partly local showers tonight followed by fair skies tomorrow. Local thundershowers are expected tomorrow afternoon or night without much change in temperature. Heat Vietims Treated. Neither of those prostrated vester- | day. was -eriously affected. George Price, 40, of 18 Ninth street north- east, was treated as Casualty Hospital after he was overcome at Eighth and East Capitol streets. John Hill. 50, colored, of Rosslyn, Va., was admitted to Georgetown Hospital. He was over- come in Rosslyn A “twister” which struck fishing boats in the Great South Bay on the southern shore of Long Island caused the loss of two lives and brought the report of two other persons missing, the Associated Press reported. One man lost his life when he was trapped in the cabin of a 45-foot fishing boat, Elsie II, overturned as it was making for shore. Ten others were rescued Another fishing boat capsized throwing its five occupants into the water. Four of them were rescued, but the fifth was picked up dead, ap- parently of a heart attack Two Reported Lost at Sea. The Coast Guard received a report that two persons were thrown into the sea when their sailing canoe cap- sized. An all-night search was made for them without success. Lightning killed a woman at Pots- dam, N. Y., and a colored farm hand near New Brunswick, N. J A 12-year-old boy was killed when | & squall hurled him against a brick wall at Newington, Ont. Torrential rain, which struck parts of New Jersey and New York, dam- aged crops. felled transmission lines and unroofed a number of houses. The recently flood-devastated dis- trict of Central New York was one of the hardest hit areas in yester- day’s storms. Westchester County and sections of Long Island also were hit hard. but New York City itself received little rain. Four persons drowned during the day, three of them in New Jersey. H. L. ROOSEVELT, JR., IN STORM. Falling Trees Narrowly Miss Son of Assistant Secretary. PHILADELPHIA, August 2 (#).— | Twin electric storms, causing much damage, swept the Philadelphia area last night and early today. Lightning struck four places in Phil- adelphia, stunning one man and caus- ing a slight fire. In Whitemarsh, Philadelphia suburb, Henry Latrobe Roosevelt, jr., 22, son of the Assistant Secretary of the Navy, was nearly struck by a falling tree “I remembered the windows of my car and ran out to put them up,” Roosevelt said. ““As I did so a 40-foot tree fell in front of the car, not far from me. I hurried for the house again, and as a reached the porch an- other big tree came down. They didn't hit the car, but they pinned it fast.” JAPANESE FLEETS BEGIN MANEUVERS Emperor Watches as 60 Vessels Steam Out for Northwest Pacific. By the Associated Press. HAYAMA, Japan, August 2.—The combined first and second Japanese PITTSBURGH, August 2.—Justice of Peace James J. Westwood refused last night to be questioned with a “lie detector” concerning the slaying of his wife, Martha, on July 10 Brought to the district attorney's office by detectives, the McKees Rocks Justice angrily objected to having the detice strapped to his wrist and chest and called for an attorney. M. Bart ey Cohen, recently resigned as an assistant district attorney, re- sponded. He said: “The lle detector is not legal evi- dence and therefore I refuse to per- mit my client to subject himslf to such a test.” Westwood then was moved to the County Detective Bureau. Cohen said that if he was not re- leased by morning he would seck a habeas corpus writ. FIRE TOLL MAY BE 25 Two Bodies Recovered in Train | Wreck and Blaze. | WACO, Tex., August 2 () —In- vestigators feared today that it would be impossible to determine how many | persons in a freight train wreck and fire at Bruceville Wednes- | day night. . Two bodies were recovered as the charred wreckage was cleared yes- terday, and it was believed by sur- vivors that several other persons, es- timated from 7 to 25, were burned or crushed to death when 33 cars fleets steamed out of Tokio Bay today, heading for their annual maneuvers | in_the Northwest Pacific. | Emperor Hirohito, attired in a white | naval uniform, watched through are of no interest to the public or |even to himself. More than one has | s.ggested, not only here, but at home, | that independence may be a mistake and that he should quietly slip some sand in the gears to slow up the wheels. His attitude is that Wash- ington has decided, the Filipino peo- ple say they want it and his only duty is to see that it is carried out | according to program. The Governor | is not only a professing but a prac- ! ticing churchman and believes in keeping pledges. On November 15, the date he has fixed for inauguration of the Philip- pine Commonwealth, he will turn over the Government to the new President and move himself and the American offices from Malacanyan Palace. The new President will move in | | | | Secret Tunnel for Escape. That historic pile on the Pasig | River, with its shaded grounds ad- | joining a brewery, will welcome its third government and may survive | for more. Filipinos say a pipe line { connected it with the brewery in pro- hibition days and that a secret tun- nel, through which governors can escape, extends 30 miles under water to Corregidor Fortress, in Maniia Bay. Only recently, a delegation of pro- | vineial governors was emboldened to | request a view of the tunnel through which a president also may flee. As- surances that there is none convinced them of its secrecy. “I'd like to see Washington an- nounce now that we will abandon our naval bases in the Philippines instead of discussing them with the Common- wealth during the next 10 years” Gov. Murphy declared “We've al- ready decided that our Army will leave at the end of that period and such an announcemient by the Navy would set at rest any doubts that we are getting out completely “I hope the islands will continue in their same stable condition. They have a flhancial reserve and surplus never equaled before in their history. For the last two years they have nad a balanced budget—not merely on paper, but current expenses within carrent income. This vear's budget is $60.000.000, though I had to veto $24,000,000 on the eve of the Com- monwealth to make it balance. Social and health service have no equal in the Orient I We have a de- partment of labor, woman's suffrage indeterminate sentence, a new home for mental and subnormal persons and a social-health center for tuber- culars, expectant mothers, family problems and 200 children. | “Finally, and in my opinion the most important of aill the Filipinos have civil liberties.” Murphy to Press Appropriations. The Governor wants the present Legislature to pass the appropriation bill for next year before the Common- wealth comes into existence, but the | Filipinos insist on waiting. He will be high commissiomer then, and they President will have the veio power. Woman's suffrage has already gone by the boards. It is not in the Com- monwealth constitution as approved by President Roosevelt, nor can il- literates vote, regardless of property qualifications. The Governor talked as we lunched in shirt sleeves—in his bed room. the breeziest corner of the palace. He is young, euergetic and enthusiastic. | with bushy red hair, keen eyes and freckled poker face. He and Vice 1 Gov. J. Ralston Hayden and their secretaries are products of the Univer- sity of Michigan, Hayden a professor. American government in the Philip- pines ends as it began. The late Dean C. Worcester resigned a_chair in the same university and brdught its star sprinter, Jack Leroy, as his secretary, to establish the first civil administra- tion. Senator Sergio Osmenya was in his office in the new legislative building. a massive pile of saffron stone vving with the post office in newness, when I saw him the next morning. The party fight had been bitter, but the Chinese blood in the Osmenya veins is always calm “It was all I could do to get my party to agree to the coalition on | officers, and we will have our own candidates for members of the Legis- lature” he said with his slow smile. Declared Ready Politically. “Politically, we are ready for inde- pendence and there will be no trouble | on that score,” he continued. “Our | economic future is a greater problem We want to keep commerce moving along the same lines as now; that is, with the United States. “We have learned to like the United States and we fear Japan. We want to continue our commercial ties with the United States. Changes already have come and differences are arising. I understand that President Roosevelt | binoculars from the imperial Sum-'has named business men to consider mer villa here as the 60 vessels went the situation there and we will send | by in majestic battle formation. He a commission to talk things over with was accompanied by the Empress and | them. | their three daughters. “We plan much for our country. Trumpets played the national Creation of an army, possibly a navy, | anthem, and officers and sailors, lin- | is being considered, chiefly for train- ing the decks, saluted the Emperor. mg, education and morale. Though He responded by dispatching an im- | the United States will represent us in | perial messenger to Admiral Sankichi foreign affairs for 10 years more, we | Takahashi, aboard the Flagship may name Filipino trade or consular | Yamashiro, with greetings and wishes | gttaches to American diplomatic posts | for successful maneuvers. The review ' abroad, if the United States consents, | was informal, no salute was fired. so they can acquire experience and Meanwhile, Ambassador Tsuneo London with the statement that Great Britain's attifude toward Japan has changed considerably for the better concerning naval questions. The Am- bassador has seen nearly seven years of continuous service at the Court of 8t. James. Matsudaira said that Great Britain's Manchukuan incident had softened considerably due to gradual recogni- tion of Japan's position, and that the same applied to the British attitude toward the Japanese naval position. —— State Youth Director Named. TOWSON, Md., August 2 (). — Aubrey W. Williams, executive direc- tor of the National Youth Adminis tration in Washington, yesterday an- nounced the appointment of John J. of s Missouri-Kansas-Texas - train plled up, 4nd caught fire, Seidel, Towson, as State director for Maryland, stiff attitude toward Japan after the | inform strangers about the Philip- | Matsudaira returned to Tokio from ' pines.” (Copyright. 1935 by the North Ameriean Newspaver Alliance. Inc.) (To be continued.) FISHERMEN STRIKE Salmon Price Dispute Closes Co- lumber River Canneries. | | ASTORIA, Oreg., August 2 (P — Nearly 200 gillnet and seine fishermen were idle today as a result of a strike called by the Columbia River Fish- ermen's Protective Union. Eight can- neries were closed, affecting about 500 | cannery workers. | Pishermen demanded 8 cents a pound for salmon August 1 to 15 and 6 cents August 15 to 25. Packers | insist they can't pay more than 6 cents during the first period and that no price for August 15 to 25 can r set until August 13,