Evening Star Newspaper, August 2, 1935, Page 4

by 2 | SBHUHZ 5 FREED; NEW GASE WEICHED Jury Lashed by Judge for| Tax Verdict—1Jurors Deny Guilt Proved. B7 the Associated Press. ALBANY, N. Y, August 2- Th" State tax commission announced to- day that it would be impossible under New York statutes for the State to prosecute Dutch Schultz for failure to file returns on his prohibition era in- come, but that an investigation had been started into Schultz's income for 1933 and 1934 At the same time, Mark Graves, president of the commission, said he had been informally advised by Schults's lawyers that the former Bronx beer lord was ready to meet the Empire State's demand for $36,391 84 1n taxes on his income for 1930, 1931 and 1932 Graves said an examination of the Btate law had revealed that the statute of limitations protected Schultz from State prosecution. The statute re- quires prosecution for a misdemean: to begin within two years afte alleged offense. Probe 1933 and 1934 “While it is generally believed he was in seclusion and out of bus ness in 193% and 1934, his income IS being investigated; and if it develop that he was guilty criminal offense in failing to file turns for these years, prosecution w be immediately instigated,” Gr said. “Meanwhile, in Malone, N. Y. members of the jury which acq Schultz of charges of evasion o eral income taxes gave their ex tion of why the Government case of the Government had sh only $5000 gross income, we would have convicted,” said Leon Chap: foreman of the jury. “We feel that the Government just didn't DYO ve its income tax evasion charge Inferentially, Chapin, director of the | New York Dairymen's League, replied to the bitter rebuke with which Fed- eral Judge Frederick H. Bryant lashed | the jurors after their verdict “We took the judge’s instructions and followed them,” he declared. “Wi were instructed to follow the evidence, | and we feel we did.” Blames Conboy’s Tantics. Hollis Child, a farmer member of the j sat at home today & headache. “We just didn't like the attack on George Moore,” Child said. “We all know Moore and it didn' seem just Tight. Conboy went a little too far.” Moore was the attorney who sum- med up for the defense. During the summation of Martin Conboy, special prosecutor, the former United States district attorney waggled his fingers in Moore's face. This was the inci- dent which Child referred to. Vows to Pay Tax. Schultz, still in Malane but plan- ning to leave tonight for New York City, reiterated his promise to pay the $92,000 back taxes he owes the Gov- ernment, plus interest and penalties. Visibly elated at the “not guilty” ‘hich climaxed the end of his | g on the evasion indict- Broadway answ His voice was low with rage as he said such as you have just rendered shakes the confidence of law- the satisfaction you h: dered a blow against law e ment.” Schultz trial was marked by an at- tempt on the part of the prosecution to emphasize not so much the qus tion of whether he evaded income ux payments, but his former connections with New York gangs and their bloody ‘warfare. | There was silence in the Govern- | ment encampment after the acquittal. | For four years Federal officials have worked to send Schults along the prison road over which they drove Al Capone of Chicago and “Waxey" Gor- don of New York, both Mlicit liquor entrepreneurs. CUMMINGS HITS VERDICT. | | Humane Acquittal of Dutch Schults by a New York jury, which tried him on charges of income tax evasion, was described by Attorney General Cummings today | s a “terrible miscarriage of justice.” | Further pmlccuuon of Schultz wa: disclosed to be “under consideration” | by the Justice Department’s criminal | division, headed by Joseph B. Keenan. DANZIG LIFTS DUTIES ON IMPORTED FOOD Move to “Allow Population to Maintain Itself by Its Own Efforts.” FREE CITY OF DANZIG, August 3 (M. —The Danzig Senate has de- ereed duty-free importation of many food products “te create a basis for enabling the Danzig population to maintain itself by its own efforts.” The Danzig government and Polish authorities at Warsaw have recently been at odds over collecion of duties on goods eatering Danzig destined for Poland, the latter government in- sisting its own agents collect Polish duties on the goods. | In the past the duties have been collected by Danzig officials. KIDNAPER ADMITS GUILT McCardell to Be Sentenced Au- gust 16 in Labatt Case. LONDON, Ontario, August 2 (#).— Michael McCardell. arrested recently at Crown Point, Ind., pleaded guilty this morning to charges of participat- ing in the kidnaping last August of | John S. Labail, wealthy London brewer. He was remanded until Au- gust 16 for sentence. - HUSBAND IS HELD ng ¢ the shooting. | gypsies, gathering here for a four- | day tribal wedding celebration, were #sked to break camp upon complaints to the police .of petty thievery. The L RELIEF SLASHED N WORK SPURT 113 States Get Only Half Month’s Funds in Hop- kins Move. By the Associated Press. Allowing 13 States only hall a month's supply of funds, Harry L, Hopkins slashed August direct relief allotments yesterday in a move hint. ing at a greater stimulation of the work-relief program. Compared with July’s direct relief allocations of $115,000,000, Hopkins doled out only $95,000,000 to the States for August. ‘Works-progress officials acknowl- edged that additional direct relief grants would have to be made to the 13 States which took the heavy cuts. But they said they expected work- relief projects to provide jobs for most | of the destitute after August 15, No- | vember 1 has been set by Hopkins as the date on which the $4,000,000,000 | program is to attain its announced goal of 3,500,000 jobs. Virginia Is Included. The 13 States were Arkansas, Call- fornia, Connecticut, Illinols, Indiana, Louisiana, Maine, Montana, New Jer- sey, Ohio, Oregon, Texas and Virginia. Pending final decislon on how many of their projects can be alarted this month, no general rellef funds were alloted to Colorado, idaho, Minne- sota, Mtwourt, New Mexico, Rhode Island, Tennessee and West Virginia, As another veasan for the drop in rellef allotments ofMcials sald States | and communities were beginning to absorb a substantial sharve of the 4. 000,000 unemployables who are ached- | {uled to receive no Federal asslatance after the work program gets under way. They acknowledged, however, that work reltef jobs would constitute only a change in name for the employment already provided 2,500,000 persons by the Relief Administration Copyright, 4. p, Wirephoto. ARTHUR “DUTCH SCHULTZ,” hed st Malone, N. Y, ately after his acquittal. - [N TRIANGLE DEATH Texan Says He Shot Law-/| yer Found in Hotel Room With Wife. Public Works Administration would seek reversal of court decisions ad- verse to the low cost housing program and allotments for municipal power projects. “We'll fight those cases right through,” be said. in commenting on a District Supreme Court decision hold- ing up P. W. A. allotments for munici- ress. pal power distribution systems in four | as, August 2—M. M. | Alabama towns. ton attorney, faced | Simultaneously, Ickes set up a spe- er Broadway, 40, for- | | Dr. Clark Foreman of Atlanta, Ga., ge and attorney at | to give “special and expeditious atten- a hotel room where Broadway wnd | power plants” Taxes of Madison Ommt:: 1 Riedel, had arranged to | he went to the hotel | __(Continued Prom Pirst Page.) and found J } ™ m"::'.hflpksulhmbm:dmolwolm partially clothed. “We don’t get much money out of | with fl,"; pistol | this tax, but we do say that the prin- | | ciple should be recognized and we do | then explained the purpose of the mmfiu Broad- gift tax as protection against evasion | e 'bo‘“:,nl the inheritance tax. Lower rates | nat ) Riedel, are imposed, however. he explained, employed ot Texas A and 34 Coliepe. !and a committee .m,.fd...,f,. will vesterday at the Hotel | oyempe corporation gifts to charity | ) from taxable income. Buchanan said Riedel had told him | Hill declined to answer a question | as he knocked on | +. y he * i by Representative Andrew, Repub- when he saw his wife | ghjectives of legislation. Amdrew | asked if this objective were to “soak | the rich, to raise revenue or to in- augurate social reform.” Treadway lollowed Hill and, after jscoring Morgerthau for his Senate | committee appearance, turned to criti- were mnrrhd in 1929. Broadway is survived by his widow. Mrs. Riede] declined to comment on | | 500 IN PARTY VANISH | cm FALLS CITY. Nebr. () —Some 500 | Palttical Gastare.” | the House the majority report, a re-| | markable document,” he continued.| “After quoting the President's mes- sage, it follows with an outline of e The el the bill but without one word of com- | to wonder where they went and re- ported they could find no trace of them. passage of the bill. It is obvious that this bill is simply a political gesture. “The revort of the majority is a good illustratior of subservient Demo- crats listening to their master's voice. Fur Coats Too Hot. Meanwhile, Secretary Ickes said the | oday for the admitted | cial P. W. A. pgwer division headed by | tion to applications for publicly-owned lican, of Massachusetts, as to general | “I espectally call to the attention of | mendation or recommendation forj ST. LOUIS (#).—In 24 hours the | Society responded to 147 !heat prostration calls. Eleven were borses, two were canaries, one Was A Sparrow. Several white rats and Tabbits also curled up. The rest were “It is now known as a bill to save the face of the President. I congratu- late my Democratic colleagues on the committee fo: their spirit of obedi- ence.” dogs. Representative Taber, Republican, It's Good Business To Pay Your Bills Promptly You may borrow money at the Morris Plan Bank and consoli- date your obligations—to get your scattering debts grouped in one place—to make posmble an orderly use of your income and to enable you w ultimately “round the corner.” Why not try the Mocris Plan Bank? plead z manded to jail until August 18, PLEAD FOR DOBBINS Morris Plan Bank Under Supervision U. S. Treasury 1408 H Street Northwest The Bank for the Individual HE EVENING STAR, WASHINGTON, D. C, Family After Release on Bond EASTMAN PLEASED Joins Harrison, FRIDAY, AUGUST 2, 1935. Mrs. Dorothy Dodd 8mith (center), who was released on $5,000 bond yesterday in the shooting of her husband at thelr home In Laurel, photographed as she joined her sister and father. ner sister; Mrs. an.h and A. S. Dodd, her father. Left to right: Mrs. Carroll 00' New York then rapped Morlan- | thau's refusal to aid the House com- mittee in preparation of the legisla- tion, “Wealth Destroyed.” “If you tax the rich every cent they've got, you couldn't meet the spending program of this administra- tion,” Taber said. “The wealth thus| taxed already has been destroyed by | administration policies. “1 am going to offer an amendment designed to raise revenue sufficient v.o| meet your spending obligations,” he | | shouted. “I'll dare you to vote for it. | There is nothing in sight to indicate | You have any desire to meet your re- | | spensibilities. “The English rates are probably | | higher than we should impose, but | they are a demonstration of what a | nation can do if it has the will to re- | cover.” | Representative Doughton, commit- | | tee chairman, next took the floor. Doughton Quotes Borah, “This bill provides for raising rev- | | enue from those who are able to pay.” | Doughton said. Answering those who had quoted Senator Byrd in opposition to the leg- islation, the committee chairman re- minded the House of the Virginia Sen- ator’s lack of sympathy with the ad- ministration. In contradiction, he | | quoted Senatar Borah, Republican, of | Idaho, in support of enactment of new tax legislation. In defense of higher levies against | upper income brackets, Doughton re- | | cited a list of indirect taxes which af- feot the average wage earner. To the | Republican reminder that their budget | always included both ordinary and emergency expenditures, he answered that no emergency steps had been taken except formation of the Recon- | | struction Finance Corporation for re- | | lief of the big corporations, not for in- { | dividuals. Andrew here arose again to ask K‘ the objective of the bill was to balance | the budget. | “No,” Doughton shouted. “We will | balance it, but not at expense of the | hungry.” | Sees End of Emergency. “Can the chairman tell us how long | sentative Knutson, Repuhlican, of Min- | xmou | “It will end soon under the wise rule of President Roosevelt,” Doughton re- | phed “Six more days of Hooverism and destruction would have brought this | country to revolution,” Doughton | shouted amid cheers from the Demo- | “Always Perfect! You'rea Wonder, cake with a promise . . . cratic side. As he took his seat his colleagues arose to accord him further applause. Representative Jenkins, Republican, of Ohio, a member of the committee, | followed Doughton. “If you say this bill is necessary to- | day.” Jenkins directed at majority | members of the committee, “then I| | charge you with dereliction in your duty since January 1 to June 19. “It’s not your bill; it's the Presi- dent’s bill. “I sympathize with the poor Secre- tary of the Treasury. He couldn't prepare a tax bill. He knows abso- | lutely nothing sbout his job. As a| banker, he's a good agriculturist. | “I think the President sent up to | New York for his father to be Secre- tary of the Treasury, and the ald| gentleman sent his son down.” The bombardment of the pend- ing bill continued as Representative | Gifford, Republican, of Massachusetts, | succeeded Jenkins on the floor. | Snell Leads G. O. P. Attacks. | Republican attacks on the tax pro- | gram opened on the House ficor y&-l | terday afternoon with the minority | leader, Representative Snell of New | York, leading the way. Although Snell took the fioor during time al- lotted for debate on the rule, he di- | rected his remarks at the taxlegisla- | tion itself and with such effect as to | Purpose of evading taxes? If so, we | sent it to Chief Ralph Scott. draw an immediate response from | Representative O'Connor, Democrat, | of New York, chairman of the Rules Committee. In part, Snell declared: “In my judgment, there is no jus- | tification for this bill. No sound argu- ment can be advanced why it should | have been seriously considered by the Ways and Means Committee or Ihy‘I it should have been favorably re- | poned and recammended for passage. ; “If there is need for lddlunnfll‘ | revenue, this bill does not supply the need. | “If there is an emergency in nml! affairs of Government other than | than that which has existed for the | last year and a half, due to the pro- | gram of reckless expenditure of this | administration, this bill does not meet \ that emergency. “If there is any social injustioe w| | cism of majority methods of writing | this emergency will continue?” Repre- | be corrected, this bill falls as far short | of that purpose as it does of providin. | revenues for balancing the budget. | “It is not a revenue bill. It is not | an emergency bill. It is not a bill to| | provide for correcting of alleged in- | equalities of wealth. It does not fall | in any of those categories—" nem:er flesh, nor fish, nor good red herring.’ " | Snell quoted numerous editorials, | Your friends will think that you made this cake your- self. Every week a different kind . . . so pleasing and palatable. Let our Master Bakers bake you a of delicious goodness . . . one which will fulfill that promise 100%,. Do try one, we know you'll enjoy it. “Mother’s Joy” Milk Chocolate +-Cake ko) A generous two-pound cake with Chocolate Delight icing top and sides, and between the layers. “Where Quelity Ceunts and appearing in both Democratic and Re- publican newspapers, and several other well known figures such as Theodore Roosevelt and Alfred E. Smith, the tenor of all the quotations being op- posed to excessive and discriminatory taxation. He then closed his address with the declaration that the “bill marks the beginning of ruthless appli© cation of the political axiom that ‘power to tax is also power to de- stroy.' " This assault was answered immedi- ately by Representative Sabath, Dem- ocrat, of Illinois, who accused the | “vested interests” of being the moti- vating influences in opposition to the pending program. Representative O'Conor followed the Illinols veteran by accusing the Republican leader of firing “another | ‘opening gun’ for the next campaign.” “Is that the issue on which they, are going to the country in 1936—that | the Democratic party is proposing a tax bill increasing the taxes on in-| dividuals receiving in excess of $50,- | 000 or more?” he asked. “Are they going to the country on the issue that we are increasing the | taxes on inheritances which come to | people through no effort of their own? | Are they going to the country on the issue that we are trying to impose | some taxes on gifts made for the sole | welcome the issue.” BY BUS MEASURE I. C. C. Regulation for Trucks Also Is Voted by House. By the Associated Press. Government officials and a truck operators’ group united today in ex- pressing satisfaction with House pas- sage of a Senate-approved bill regulat- ing interstate movement of busses and trucks. i “I think the legislation will have| & very beneficial effect on the whole | tions. transportation situation,” said Jouph‘ It will nho help the truck and bus industries and it will not eliminate competition in the transportation field.” He sald he did not believe Federal regulation of busses and trucks would | mean higher rates. Truck Official Pleased. J. W. Blood, vice president of the American Trucking Association, Inc., said operators would “be delighted to co-operate with the Interstate Com- merce Commission.” “We have been working for some | time for reasonable and fair regula- tion, and this fills the gap.” he said The bill now goes back to the Senate | for concurrence in several minor amendments. Exempts Certain Classes. Urged early in the session by Presi- dent Roosevelt, it places both com- mon and contract carriers, busses and trucks, under the Interstate Com- merce Commission, but generally ex- empts private truckers and trucks hauling farm products, fish, shell fish, or newspapers and farm co- operative trucks. All, however, will be subject to safety regulations. One House amendment provides for State Commissions to aid in framing and enforcing regulations. Opposition, which branded the measure as “a railroad bill,” proved unable to force a record vote on either | an amondment by Representative Wadsworth, Republican, of New York, substituting a less stringent bill or on | final passage. It passed, 193 to 18, ‘on a standing vote. FIREMEN CRITICIZED | Woman Would Use Their Idle | | Moments Cleaning Parks. | LOS ANGELES, Calif. (#).—Alice Gray, lecturer, believes in the strenuous | life for firemen. “Firemen seem to sit all the time and are fat,” she wrote Mayor Frank L. Shaw, and suggested thev clean the streets and parks in other- wise idle hours. Mayor Shaw sent the letter to the fire commissioner. The commissioner Chief | Scott was undecided where to send it. 'SUMMER REDUCTIONS A “Hot Shot”’ Clearance . . everything A Real “Sensation”! MEN’S SUITS Of Cool LINENS, CRASHES, BURTON'S IRISH POPLINS' APPEAL CANCELED IN STEEL CASE Cummings Says Agreement in Republic Suit Is Con- doned by Opinion. The Government decided today not to appeal from the adverse court dee cision of June 13 in the Republic Stee] Corp. injunction case, under which the Justice Department sought to re- strain an agreement between the Re- public Corp. and the Corrigan-Mc- Kinney Steel Co. and other corpora- Atwmey General Cummings an- nounced that in view of the opinion of the District Court for the northern district of Ohio that the proposed agreement for transfer of stocks and bonds was legal, he has concluded an appeal would be “unavailing.” “This case was brought in order that the agreement could be submit- ted to judicial scrutiny,” Cummings said. “It was fully tried and, under the facts as found, the court pro- nounced the proposed agreement legal. In view of this holding as to the partfcular situation developed at the trial, it has been concluded that an appeal would be unavailing.” The questioned agreement contem- plated that the Republic Corp. would | purchase all assets of the Corrigan- | McKinney Co., including stock in two subsidiaries, in payment for which stocks and bonds of the Republic Corp. would be transferred to Corrigan-Mc- Kinney for distribution among the latter’s stockholders. The Government sought an injunc- tion February 7 of this year under provisions of the Clayton act. | STOCKHOLDERS MEET AUGUST 15. YOUNGSTOWN, Ohio, August 2 (#).—Republic Steel Corp. stockhold- ers are scheduled to meet August 15 to act on ratifying the merger of Re- public and Corrigan-McKinney Steel Co. of Cleveland. Corrigan stockholders already have voted ratification. 8Should the merger be ratified Re- public also will take over control of Truscon Steel Co., a fabricating eorn- cern. Disease Strikes Flood Victims. TOKIO, August 3 (®)—A dispatch from Antung, Manchukuo, by the Rengo (Japanese) News Agency cor- respondent reported yesterday 91 per cent of flood survivors in the south- ern area of Manchukuo were suffer- ing from diseases as a result of de- plorable sanitary conditions. - Relief for Jobless Authors. NEW YORK (#).—The city plans to take all the heretofore wasted writing talent and lay it end to end in a sparkling directory of points of inter- est. It's a relief project for unem- ployed authors Selling for a Buck! 10,000SHIRTS $1.65 to $2. VALUES Reduced to . Any pattern eolor or style. 00 00 $ Many well-known makes. All kinds of colors. Meshes, Ma- dras, Broadeloths, Oxfords, Flannels, Crinkle Crepes. All sives. Non-wilt, plain, button- down and meckband collars. 69¢ to .ml- Lined Ties 39 (3 for All-Wool Sleeveless Sweaters 59c¢ (2 for $1) Hat in 69 (2 for To wear THIS Summer and NEXT! Single and double breasteds . Plain and Sport Backs . Summer styles. Every one a0ld . . tvg them at the LOWEST the season! Come early! Your Maney Goes Furthest!” . and we're doing it by sell- Summer Bathrobes New lmul be price of Any Straw $l $7t0 $9 Sport Trousers 33.“ Reg. $1.65 Pajamas C $4.00 $1) Reg. $3.95 to §7 Panama Hats $1.44 the e $1)