Evening Star Newspaper, August 7, 1935, Page 2

TA2 ws ENDINGEXEMPTION OF TAX' DIFFICULT Increased Cost of Loans Is Seen Offsetting Higher Revenue. BY DAVID LAWRENCE. President Roosevelt's recent refer- ence to the way in which the “58 thriftiest” people do not pay income taxes on their securities because the latter are tax-exempt might give the impression that it would be & simple matter to adopt a constitutional amendment forbidding tax-exemption and then the Government would get & large amount of revenue. The problem is not so simple, how- | ever, for the House Ways and Means Committee, in a report made last year on the whole subject of tax ex- emptions, has some significant things w ~y about how little revenue would be produced. Says the committee re- port in quoting L. H. Parker. chief of the staff of tax experts of the joint congressional tax committee: “It is the opinion of this office that 1t the income tax were applied in full 1o all future issues of these bonds, the increased interest cost would nearly offset the additional revenue secured.” U. S. Bonds Subject to Surtax. What’s What Behind News In Capital Roper Advisory Council Seen Assailing Guffey Bill in Report. BY PAUL MALLON, ECRETARY ROPER'S emaci- ated business Advisory Council has been confidentially pre- President Roosevelt's eye. It is a re- port on the Guffey coal bill, which, the insiders relate, attempts to burn that measure to a small clinker, The report predicts that the bill would boost coal prices even more than coal operator opponents contend. Readers with long memories will recall that this is the council of business men designated with a fanfare last year to keep Mr. Roosevelt advised about the busi- ness viewpoint. So far it has been advising him mostly not to do what he is doing. Exceptions were its Jjavorable report on the social se- curity legislation and a memo sug- gesting continuance of the N. R. A. Jor two years. President Roosevelt has solved this cinder situation so far by donning blinkers. He lets all the council's Mr. Parker had made an exhaus- tive analysis showing that the small| g, “pogy into receptacle he calls | taxpayer finds Federal tax-exempt| bonds attractive, but that the large taxpayer prefers State and city issues, not because the latter class is better| security, but because State and local | issues are free from surtax, while a majority of the Federal bonds are subject to surtaxes. | “What additional revenue.” says Mr. | Parker, “could be secured by subject- ing all this interest on the public debt to tax? Based on the data available and the existing tax rates, we belleve the maximum revenue which the Fed- eral Government could obtain would not exceed $160,000,000 annually. Of this amount about $90,000,000 would 2ome from the individuals and about $70.000,000 from corporations. “A study of the market quotations on Government bonds indicates that the wholly tax-exempt securities are slightly preferred over partially ex- empt securities. This is true in spite of the fact that both classes of securi- | ties are wholly tax-exempt when in the hands of corporations. Thus a broad tax-free market is open to cor- | porations for the bonds which are only | partially tax-exempt in the hands of individuals. If this were not the case, authorities seem to agree that future | bond issues by our governmental units | would necessarily bear a higher in- | terest rate. Illegality Is Seen. “An increase in interest rate of one- | fourth of 1 per cent on $40,000,000,000 | ‘would cost our Government 5100,000,- 000 annually. An increase of one-half of 1 per cent would cost $200,000,000 | annually. Of course. the increase in interest costs would not take effect | immediately if Congress taxed bonds | already issued in tax-exempt form | ‘without retirement and reissue. How- ever, to do so would raise a serious unfavorable reports (utility bill, etc.) a departmental filing place, but which might also be called a wastebasket. | Only the favorable reports are made | public. Thus, it is hardly probable that the council's views on the coal pro- posal will get into print. At least not before Congress acts. Council Members Quit. Ignoring the council may be easier fore. It has suffered about seven resignations since its utility bill re- port was referred to some depart- mental grave digger. However, a few of the remaining members have formulated some new ideas about publicity which may up- set the usual burial procedure this time. can make public their ‘reports if they want to. Also, they are threatening to want to. Industrial Parley Debated. The President has been mulling over an idea of calling industrialists | and labor leaders together here in the Fall. He has in mind the possibilities of an unofficial agreement to con- tinue the major features of the N. R. A on_a permanent basis. The suggestion for such a confer- ence was dropped to two labor lead- ers who recently called at the White House. They were highly pleased. question of breach of faith and might be construed to violate the Constitu- | tion.” Mr. Parker went on to say that a | ton, who is known among his pals|for re.nomination »4.-"The Cigar Box Flurry. The genius behind the Patton cigar paring another nice cinder for | for the President this time than be- | They have decided that they | THE EVENING STAR, WASHINGTOY. Escapes Death in Desert AL SUIT PERMIT CLOSE CONTESTS MARK BALLOTING Virginia ~Legislature Pri- mary Returns Not Yet Completed. By the Associated Press. RICHMOND, August 7.—Five Sen- ate contests and three House races were in doubt today, election officials counting far into Wednesday morning in some sections where voters visited the polls in record numbers to record their cholce for Democratic nominees for the General Assembly in yester- day’s primary. Apparently the victory, but with two precincts still to be tabulated, the veteran Saxon Holt, President pro-tem of the Senate and chairman of the Privileges and Elections Committee, had a margin of only 432 votes over A. L. Bivins, Newport News attorney, in the thirty-third district. The miss- ing precincts were heavy-voting urban centers. . 3 Casts Heaviest Vote. . Elizabeth City County cast the heav- fest vote In history in the primary, the climax of .the most spirited po- | insula in a decade. Complete unofficial returns gave S. the Senate nomination in the twenty- 15 votes over H. H. Walton of Mineral, who had the staunch backing of W. ‘Worth Smith, jr., Senator from the district, who did not seek re-election. Not until 50 of the 51 precincts were tabulated could it be ascertained that Gordon B. Ambler, E. R. Fuller and Hill Montague were winners in Richmond City. Morgan R. Mills was the unsuccessful senatorial can- | didate. In doubt today was the race in the twenty-second senatorial district between Senator Hunter Miller of | Bedford and G. E. Heller, a fellow townsman. A considerable number | of precincts had not been reported The contest in the big twenty-first | floater district found Leonard G. Muse of Roanoke and Hal C. Tyler of Rad- Senator H. B. Apperson, opponent | of Mayor Sydney Small, was trailing. & majority, leaving the race in doubt. three precincts missing. | House races still in doubt were those between Delegate S. M. Chit- wood and Frank P. Perrow in the Bedford-Franklin-Floyd floater dis- | trict: the Grayson race between H. T. | litical contest seen on the Lower Pen- | Bernard Coleman of Predericksburg | seventh district by a margin of only | | of the Roanoke “home-rule” proposn” | | Smith and John L. Reeves and the | | four-ply contest for two seats in lPilLsyl\lnlI County, with Charles J. Ashworth, D. V. Spangler, C. B. lYeatu and C. A. Hodges as candi- | dates. Scott Defeated. box flurry seems to have been Blan- | Hoyse in Roanoke City, was defeated | in one of the substantial revenue could be secured &S the greatest detective (amateur) | siate's most interesting contest. Scott, if the interest of all Federal, State and local bonds were to be taxed, ir- respective o_r the fact that they were | the question of whether such a pro- cdure is “right or wrong from a moral standpoint is one beyond the scope of this memorandum.” | The views of Mr. Parker are inter- | esting because he has been aiding the ! Ways and Means Committee of the | House in preparing the measure it | ¥88 such a joke in Washington that | adopted last week. | 8o the upshot of the data furnished | is that to tax Federal issues by re- | tiring or withdrawing the tax-exemp- | tion would merely bonds out of line with State and local ' securities and cause the interest rate tc go up to an amount that would offset the sum gained through taxa- tion. The Roosevelt administration could refrain from adding tax-ex- empt issues to the market as it has been doing in the last two years, but the expense of borrowing would be thereby incrased. If, on the other hand, a constitutional amendment were adopted taxing State and city bonds as well as Federal Government bonds, it is doubtful whether this could apply to contracts already in existence between the security hold- ers and the State and city govern- ments. The Supreme Court might hold that to deprive the citizen of bis rights in existing contracts by a | constitutional amendment might con- flict with other articlgs of the Con- stitution. Would Raise Loan Cost. The States and cities could retire | and then reissue their securities, but | the expense of borrowing would be | increased. It seems unthinkable that the States and cities would ever sup- port a constitutional amendment tak- ing away their tax-exemption privilege because it merely adds a handicap to their own borrowing powers. The | State Legislatures would doubtless op- | pose such a step and argue that they, | t00, would lose in the cost of ad- ditional borrowings, whereas the Fed- eral Government would absorb the increased revenue from taxation and the States would get no benefit. ‘Tax-exémption and the fact that a few tihrifty people have taken ad- “vantage of it offers a sore point from & social viewpoint, but the way out is not easy to find and certajnly even if a constitutional amendment were adopted it would take a decade be- fore its benefits could be determined. (Copyright 1035.) o LONG FAMILY LEAVES Depart From Maine for Montreal and Return to Louisiana. KENNEBUNK BEACH, Me., August %7 (#).~The family of United States Senator Huey P. Long today left, with- out a visit from the Kingfish, the hotel where they had been guests here two weeks, for Montreal and the return trip to their Louisiana home. Mrs. Long said their visit here had béen shortened because of the desire of hér youngest son, Palmer, to get back home to care for his pet pigeons and hens. The other members of the party are her daughter, Rose, and Russell, her other son. . .The Longs planned to stop in Wash- ington on their way home. ~ - Siam Appoints American. 7 'BANGKOK, Siam, August 7 (#)— “"The Siamese government today ap- “proved the appointment of Frederic “R. Dolbeare, former United States dip- “Jomat, as its advisor on foreign af- “#airs. Dolbeare is to leave San Fran- Velsco Friday to come here. ) | fled before the Lobby Committee. in Congress. He staged-managed much of the affair, first by introducing to | Senate investigators the accusing wit- . who gave testimony inferring that & Congressman was paid off by | the utility people in a cigar box. Later | | Sleuth Blanton rode Representative | | Patton over to the committee to deny | the charge. Few informed persons here believed there was anything in the story. It a Texas newsman walked around town for two days carrying a cigar box under his arm, inciting people to ask him about it. When any one did he throw Federal OPened the box and displayed two $1 | | The inferential charge served the | purpose of creating a vague general suspicion against Congressmen who supported the House bill, but appar- ently it made no difference in the vote. More Scandalizers. ‘The scurrilous rumor that the Presi- dent is not well mentally has been cir: culated by others than that inventive New Jersey advertising man who testi- A confidential business letter sent out from Washington (not any of the good ones) flatly questioned the President’s sanity in a recent release. A Democratic floor leader of the Senate was preparing to attack and expose the confidential letter not long ago, but the White House told him to forget it. White House authorities reason that public mention of the author of such | & charge would only give him a recog- nition that he does not merit, even as an adversary, Byrns Outwits Snell. Something happened to the House Republicans in the tax fight. They failed to make much of a showing. The reason apparently was that Speaker Byrns outwitted Republican Leader Snell. Bryns first announced the tazr bill would bde fammed down the throats of Republicans in three days. Then he began to pat them on the back. He agreed to curtail sessions so they could go home to dinner each night. He agreed to postpone the roll call until Mone- day. (He would have done this anyway, because many of his Dem- ocrats were absent over the week end.) In return for these favors, the Re- publicans co-operated. They helped to spank the Huey Long bloc, offered few amendments. In the end they co- operated so much that their opposition washed out into nothing important. Byrns is chuckling in his sleeve. (Copyright. 1935.) 19 D. C. PARALYSIS CASES Number Not 174, as Erroneously Reported in Letter to Editor. Instead of 174 cases of infantile paralysis in Washington since Jan- uary 1 as recently printed by The Star in a letter to the editor, there have been only 19, according to Dr. George C. Ruhland, District health officer. . error, Dr. Ruhland pointed out, probably resulted from failure to dis- tinguish between paralysis cases and epidemic meningitis., | who like Senator Apperson, opposed | Mayor 8mall's “home ruie” proposal | to allow the City Council instead of salaries of the city's constitutional offices, saw the nominations for two seats taken by Ray O. Lawson and M. S. Battle. Reminiscent of the political revolu- | tion of several years ago, when ad- ministration forces were soundly trounced, Allen 8. Carr and J. N. Maxey, “anti-organization” candidates, | won the nomination for Portsmouth's | two House seats with the backing of Norman R. Hamilton, publisher of the Portsmouth Star. Robert W. Moffat, aefeated incumbent, gave credit to the Portsmouth Star's publisher in the decisive victory. Carr and Maxey campaigned on a platform for direct ward representation in the council through charter change, for civil serv- ice reforms in fire and police depart- ments and in full support of the Roosevelt social security program, in- ;cluduu'old--ge pensions and unem- ployment insurance. Robert W. Daniel of Brandon, for- ! merly & member of the State Board of Education, won the nomination handily in the sixth senatorial dis- | trict over David Harrison of Hope- well. Senator Robert Gilliam of Pet- | ersburg went down to defeat *before | Benjamin Muse of the same city in | the eighth cistrict. | Replaces Ferguson., Charles Moses of Appomatox won the nomination to succeed the late |Senator S. L. Ferguson in the | eleventh, defeating J. Kent Early of | Charlotte and Charles E. Burks was renominated in the twelfth, composed | of Lynchburg and Campbell, over Dudley Davis of Lynchburg. Edgar B. English and Charles W. | Moss were among the incumbents to | be defeated for the House in Rich- ‘Roblnwn were nominated along with | four incumbents, W. H. Adams, Charles W. Crowder, Albert O. Bos- chen and Horace Edwards. Lucian Shrader, delegate from Am- herst, was successful for renomina- tion against C. A. Mitchell in a close contest. C. G. Quesenberry and H. McK. Smith were nominated in the Augusta-Staunton district. Incumbents generally came through with flying colors in House contests. John T. Duval of Gloucester and Mathews was renominated, although his opponent, Mrs. Emma Lee White, carried hér own county of Mathews. Norfolk sent back Richard Ruffin and Ralph Daughton and chose W. W. Venable and E. L. Breeden to ac- company them. Norfolk County re- nominated E. T. Humphries and E. L. Oast. Charles E. Stuart won in Northumberland and Westmoreland in a three-cornered contest. VOTE DISPUTE FATAL LAMBERT, Miss,, August 7 (#).—A man described by Sheriff W. T. Haynes as Alvin Cannon, 45, a farmer, was fatally wounded late last night as an outgrowth of a dispute which started in the City Hall where a crowd had gatherea to witness the vote counting following yesterday’s Staté-wide Dem- ocratic primary. Sheriff Haynes sald Cannon was shot by Town Marshal Mike Omar after Omar sald Cannon created a disturbance and resisted the officer’s efforts to pursuade him to go hem!. Luzon Flood Kills Scores. MANILA, August 7 (#).—Scores met death in last week’s floods in Central and Northern Luzon Island, it was indicated as belated reports reacheéd Manila today, with communi- cations partially riawed. { Copyright, A. D. C. WEDNESDAY, P. Wirephoto, After wendering six days in the desert near Silver City, N. Mex., little Albert Reasoner was found and taken to a hospital. He is shown with his mother today. His first question was: “Mummy, when can I go home.” He didn't cry, he said, and Temperature Here Drops to 67 as R s et VY (], PO Relief After Two Weeks Expected to Continue. Warm Tomorrow. The first noteyorthy rain in two weeks was giving the Capital real relief from the heat today. From the middle 80s, tiie tempera- ture fell oft steadily when the rain began last night, and early this morning it had dropped to 67. The ford leading for the nomination of | mercury held this mark until 10:30 the district’s two senatorial seats, while | g m and was not expected to go above 70 all day. The rain was expected to continue intermittently tonight and probably There were & number of missing pre- | through tomorrow morning. Tomor- cincts which politcal observers said | row afternoon will be warm, but not might be expected to give Apperson | pot ‘The Weather Bureau recorded 065 The NEW YORK RACKET CHIEF SELECTED Wayne Merrick, Former Justice Agent, Selected Investigator by Dewey. Walter H. Scott, incumbent for the | BY the Associated Press. NEW YORK, August 7—Much of the success of the coming investiga- tion of New York rackets depended | today on a former Iowa farm boy and a thoroughly shaken-up detective division in the police department. Thomas E. Dewey, special prosecu- tor for the extraordinary grand jury probe, announced the appointment of Wayne Merrick, former Depart- ment of Justice agent, as chief in- vestigator yesterday. At the same time Police Commis- sioner Lewis J. Valentine demoted 61 | detectives and promoted 49 others. Merrick, born and raised on an Towa farm, is 35 years old. His name has not been much before the public. He was in charge of the investigation | of the John J. O'Connel, jr. kid- naping in Albany for the Department | of Justice, and he brought about the | conviction of Manny Strewl for the | crime. | Senate: Continues debate on copyright bill. PFinance Committee continues tax hearings. Lobby Committee hears Patrick J. Hurley. House: Considers miscellaneous legislation. TOMORROW. Senate: Probably will have up bill dealing with suits relating to the gold clause in Government securities. bill. Finance Committee probably will meet on tax bill. mond. Charles R. Purdy and W. F. | o . Considers special rules. 8pecial Retail Business Investigat- ing_Committee resumes its inquiry at 10:30 am. Conferees meet on social security lived on berries and slept in caves’ PRESIDENT DRAFTS | Will Make Recommenda- tions—Two Bills Intro- duced in Congress. By the Associated Press. | President Roosevelt said today he hoped to make an early report to Congress on oil production control. | He will transmit to Congress the compacts ratified by several States | and probably will recommend legis- lation to set up a fact-finding agency to report to the next Congress. This agency probably would be an independent board, although the Pres- | ident expressed himself today as hope- ful of tying in more of the inde- pendent agencies under one of the secretaries in the interest of simpli- Senator J. Belmont Woodson held | inch of rain overnight, the heaviest|fication of administration. to a slender lead of just 53 votes | precipitation in several weeks. over I. Paul Wailes of Amherst in|last concentrated rainfall was on July offered in- the Senate and House. the fourth senatorial district, with 25, when 0.36 inch fell. | Two oil bills, almost alike, were Representative Disney, Democrat, of Oklahoma described them as designed to set up an N. R. A. in the industry lby voluntary agreement. | The measures would permit volun- tary intra-industry agreements, to be approved by the President, which would seek to prevent “waste,’ nate “unfair” competition and pre- scribe wage and hour standards. Waiving of the criminal provisions of { the anti-trust lJaws would be allowed. They also would enact permanently and place under a re-established Ped- eral Petroleum Board the Connally ‘act preventing oil illegally produced | beyond State quotas from entering interstate commerce. The Senate hoped to rush consider- ation of the measuré introduced by Senator Thomas, Democrat, of Okla- homa as a substitute for one already | on the calendar. House Interstate Commerce Com- ! mittee approval, perhaps after a short | hearing, was looked for on the bill put lin by Chairman Cole, Democrat, of | Maryland of a special ofl subcom- | | mittee, 'STRIKE A RBITRATION - DEADLINE 1S FIXED Navy Gives New York Ship Firm Until Tomorrow to Accept Findings. By the Associated Press. The Navy Department today gave the New York Shipbuilding Corpora. tion until noon tomorrow to accept arbitration in the 13-week strike in its Camden, N. J,, yards by a board of three appointed by the President. It was understood that if fhe cor- poration refuses arbitration the Navy Department will consider a contract for four destroyers and three cruisers | violated and may either remove the | bottoms to other yards or take over | the construction within the Camden plant. President Roosevelt, who has taken | & hand in the matter, said at his press conference this morning he expected an immediate answer from the cor- | poration. | U.S. Attache's Daughter to Wed. VIENNA, August 7 (#).—Sarsh | Elizabeth Schallenberger, formerly of Columbus, Ohio. will be married here next Tuesday to William Lee Lyons Brown of Louisville, Ky. Miss Schal- lenberger is a daughter of Col. Martin Schallenberger, the United States | military attache. The wedding will take place in Vienna's English church. Army Plane Dives Into Bay This twin-motored Army seaplane from Langiey Field plummeted into Chesapeake Bay off Solomons Island yesterday while on a blind-flying test flight, injuring three of its five occupants. Pvt. Michael J. Lukic was in Walter Reed Hospital today with a dislocated foot and bruises. Lieut. Gerald F. Willlams was treated for deep face scratches, Lieut. M. W. Bowman sustained minor bruises. Sergt. James H. Boyles and Pvt. C. C. Solen- eyzowski were uninjured. James O, Lore, an islana fisherman, fished the fiyers out of the bay after they had freed themselves from the cabin of the partially submerged plane. The plane was towed into an inlgt, where curious are seen clambering over it before salvage operations elimi- | began. AUGUST 7, 1935. FIGHT RISES AGAIN Borah Assails Compromise Reached by Congress Conferees. By the Assaciated Press. Signs of new controversy on the question of permitting suits to re- cover processing taxes appeared today when Senator Borah, Republican, of Idaho, criticized a proposed compro- mise on the subject. The compromise was reached by conferees frcm Senate and House named to reconcile differences in the amendments as approved by the two chambers. Borah declared the agree- ment amounted to virtual nullification of an amendment the Senate had at- tached to the legislation. The conference report has gone to the House for ratification and later will be sent to the Senate. In passing the A. A. A. bill originally, the House barred all processors from suing to recover taxes paid. The Senate, however, permitted suits to be filed on a showing by the processor that he had not passed on the tax to the producer or consumer. Out of the conference came a ver- sion stating that in event the A. A. A. processing taxes are held invalid | claims for rebate may be submitted to the commissioner of internal reve enue, who will pass on the facts. Only | in event of error or ‘“capricious” judgment by him may an appeal be | taken to courts. “In my view,” said Borah, "lhhi virtually nullifies the Senate amend- ment.” He declared, by way of example, that a claimant from Idaho seeking $100 rebate would “eat up” his claim in costs of sending an attorney to ‘Washington to place his case before | the commissioner. “It puts many impediments in the way of gaining access to the courts,” | the Idahoan said, He added it would | | be “necessary to discuss it" when the | | conference report is before the Sen- | | ate. That may be late this week or | early next week. 'FILM VIOLATIONS HELD UNCHECKED Justice Department Charges In-| dicted Companies Continue | Offenses. | By the Associated Press. ! The Justice Department charged | | yesterday that several large motion | picture distributors had continued to violate anti-trust laws despite an in- dictment returned against them last Off to Front ALEXANDRIA BUS PETITION REFUSED State Board Holds U. S. No. 1 to Washington Already Overcrowded. By the Associated Press. RICHMOND, Va. August T.—The State Corporation Commission today entered its first denial of an appli tion for interstate passenger bus serv- LAURENCE STALLINGS, Newspaper man, novelist and play- wright, who will cover Ethiopian war, AUTHOR ON WAY 10 COVER “WAR" Laurence Stallings Takes 4 Cameramen for Perilous Work in Ethiopia. BY IRA WOLFERT. Bpecial Dispatch to The Star. NEW YORK, August 7 (NAN.A).— Laurence Stallings, newspaper man, novelist and playwright, motion pic- ture writer and editor, is en route to Ethiopia to write and photograph for ‘The Washington Star and North Amer- ican Newspaper Alliance the story of the ominous events that are expected to occur there when the rainy season ends. He is taking with him four crack, sharp - shooting photographers, men who for the last 10 years have made | the picture history of the world, 50, { 000 feet of film packed in sawdust. a fleet of motor trucks and métor cycles and a handsome collection of Ameri- can flags. The American flags, Mr. Stallings said in his soft and tranquil manner are to warn bullets to “keep off, this means you,” and in addition the trucks will have their roofs covered with huge, luminous U. 8. A.’s for the urgent, attention of the bombs that may be dropping overhead. For further protection, Mr. Stallings | added, he will “lean heavily on the old, I hope true, adage that lightning never strikes twice in the same place.’ January. partment said it was seeking an in- junction in Federal Gourt at St, Louis to restrain Warner Bros. Pfctures, Inc.; R-K-O Distributing Corp., Para- mount Pictures and cthers from con- tinuing the alleged violaticns. A hearing on the injinction was re- quested for August 19. The com- | panies will be tried on the indictment, | which charges conspiracy, September 20. Demurrers filed by two of the 16 defendants were overruled July 29. The department especially com- plained against “the making of con- | tracts for motion pictures for the 1935-6 picture season, which will prevent the operators of three St. Louls theaters from procuring the necessary pictures.” =B [PACT TO LIMIT SUGAR | TO EXPIRE SEPTEMBER 1 Chadbourne Convention Not to Be Renewed, World Council Decides at Brussels. By the Associated Press. BRUSSELS, August 7.--The Inter- national Sugar Council decided today | that the Chadbourne Convention, which guarded against overproduction of sugar by limitation of exports, will | not be renewed when its expires Sep- | tember 1. ‘The agreement, evolved by Thomas L. Chadbourne, was entered into by seven countries in 1931 when regula- | tion of exports became necessary to | insure producers a profit. ‘The signatory nations i 1931 were | Germany, Belgium, Cuba, Java, Hun- gary, Poland and Crechoslovakia. Peru became a party to the agree- | ment later. ( He was serfously wounded in the World In an unusual legal move, the de- ' War, in which he served as lieutenant | and captain in the 47th Company, 3d Battalion, 5th United States Ma- rines. Dangers to Be Faced. The reason for all these precautions. ! Mr. Stallings explained, is the terms of his assignment. “It does not in- clude,” he said, “covering events while playing poker with the general staff. We've got to go out and point our lit- {‘tle boxes at ehell holes in the act of i creation, at hullets on" their way to i work.” Associated with the North Ameri- | can Newspaper Alliance in this enter- | prise is Fox Movietone News, of | which Mr. Stallings is editor. This company has detached its ace camera- men to assist Mr. Stallings in bring- ing home the tragic story. The crew is made up of Len Hammond of New York, who traveled with the 19th Route Army in China and photo- | graphed an air raid from one of the bombing planes; Georges Mejat of Paris, whose pictures of the assassi- nation of King Alexander of Yugo- slavia and Foreign Minister Barthou of France were voted the best news- reel shets of 19347 Alfred Waldron of New York, for 10 years Fox's chief White House man, who “shot” the | rout of the bonus army and the at- tempt to assassinate President Roose- | velt which resulted in the fatal | wounding of Mayor Cermak of Chi- cago; and Ercole Granata of Rome, who was official photographer for Gen. Italo Balbo during the spectacu- lar mass flight from Rome to the Chicago World Fair. Granata is already on the scene in Eritrea. He sailed from Genoa with a division of Italian soldiers. “T &on't want to give you the idea,” sald Mr. Stallings, “that we'll be leap- ing gayly from shell hole to shell hole, camera in one hand, pencil and note paper in the other, and an Amer- 4 CHURCH ‘SESSION OPENS LEICESTER, England, August 7 (®). of the second world convention of | Churches of Christ today. Led by Jesse M. Bader, D. D, of | New York, general secretary to the convention, and including Dr. and | Mrs. W. A, Shullenberger of Indianap- olis, fraternal delegates of the Amer- | ican churches, they landed at South- ampton yesterday from the S. S. Britannic. ican flag flapping brightly from a | pole stuck in the vents of our dashing | cials would investigate today. sun helmits. But this is a story that can't be covered in the maddening likely to be up against out there is the story of a great and fearful imperial adventure, the story of one of the last unsubjugated primitive societies matching its bone and muscle and cunning against all the machines | civilized man has invented for taking the lives of his fellows. Results Demand Effort. “We can't get pictures of white- robed warriors putting their fur-gar- landed shields up -against e dense- packed cloud of machine gun bullets by reading a general staff release to the effect that a flank attack by Col. So-and-So eliminated 3,000 enemy ef- fectively snd advanced the front line 17 inches.” Mr, Stallings in “What Price Glory.” “The Big Parade,” “Plumes” and “The First World War” gave readers “Humanity at War.” He says this is what he’ll try to do in Ethiopia. “General staffs are too busy grind- ing their axes,” he said, “to let cor- respondents in on the truth. So we'll have to let the history books pick up the real war for ourselves. “It will be easy for me. a typewriter to poke and e little camera to point. It's these camer- men who have the job—setting a stop, calculating an exposure, f , se- lecting a lens, plotting a fleld while blood is dripping around them and the ground shakes under their feet.” “Oh, it won't be so bad,” said Len Hammond, who had been listening. “If it's anything like China, all we'll have to hope for is that they keep their guns pointed straight at us. Then we know we won't get hit.” Work With Two Armies, Mr. Stallings will work with hoth the Ethiopian and Italian armies. His headquarters will be in Addis Ababa, Ethiopia’s capital city. Hammond and Waldron will work out of Djibouti, French Somaliland, from which the only railroad penetrates Haile Selas- see’s empire. Mejat will start from ~Star Staft Photo. ) Mogadiscio, Italian Somaliland, and v’clhll'lyh\hnd. Granata’s with the strategy and go out and get | Il have | ice. | Spécificslly, the commission refused to grant an application of the Monu- mental Lines, Inc, for a permit to operate on U. S. Route 1 between Alexandria and Washington. The | cpinion, written by J. Leslie Hooker, | commissioner, said that to grant the | certificate “would unduly endanger | the life and property of the general public traveling over this route.” The present flow of traffic over the road was termed “excessive.” Commissioner Hooker indicated that some opposition to the ruling was ex- pected, but said it was based on long and careful study. It is the first time, he said, that such an application has been turned down. Opposed by City. The application was heard by the commission April 26 of this year. It was opposed by the City of Alexan- dria, the Alexandria Chamber of Commerce, the Arlington Board of Supervisors, and the Alexandria, Bar- | croft & Washington Transit Co. | In his opinton Commissioner Hooker | said: “If the traffic along the highway | or highways the applicant proposes to operate is such that the operation of the number and kind of vehicles to be used, or the schedule on which they are to be operated, will thereby un- duly endanger the life and property of the general public using the said high- way or highways, and will thereby subject the general public to a danger more than that which is ordinarily incidental to the use of such highway | or highways, the certificate applied for | must be refused.” | The evidence shows, the opinion se: forth, that there is a heavy flow of traffic over the route most of the time while at other times it is ‘very heavy and congested.” { Traffic Is Heavy. | “The evidence shows,” the opinion continues, “that at checking station 713, estabiished by the Department of Highways, vehicles are passing and meeting each other almost constantly between the hours of 6 am to 9 am. and from 4 p.m. to 6:30 p.m. “It would seem to be perfectly plain that for the commission to grant the certificate applied for, giving permis- sion to operate an additional 216 | trips daily with busses of 32 passenger capacity over this route would unduly endanger the life and porperty of the general public traveling over this route, and thereby subject it to a danger more than that which is ordinarily incidental to its use. The present flow of traffic over this route is excessive * * * The opinion stated the commission “fully appreciates” that denial of petitions for interstate certificates should be made only in cases “that are clear and compelling,” but points out that “the Legislature has vested this commission with a discretion in such matter, and if there was ever an instance where it should be exer- cised adversely to the petitioner, it seems to us this is one.” { | 5-HOUR FIGHT ENDS U. S. CRUISER FIRE Loss Estimated at $100,000 After Flames Sweep Engine Room of U. S. 8. Quincy. By the Associated Press | QUINCY, Mass., August 7.—A fire lin the engine room of the recently launched U. S. S. Quincy was extin- guished early today after a five-hour | battle. The deck plates of the cruiser were so hot that shipyard and navy offi- cials were unable to go below to de- | termine extent of the damage. but | they unofficially estimated it at | $100,000. | The 10,000-ton cruiser lay at a dock | at the Fore River ship yards of the | Bethlehem Shipbuilding Corp., where | she was being prepared for her trial run. She had been launched at the | Fore River plant June 19. She cost | $8.196,000. | Harry E. D. Gould. general man- | ager of the plant, said the fire was | believed to have started in the switch- | board of the main cable room, & 60 by | 80 foot section at the aft end of the engine room. He said, however, that a board of Bethlehem and Navy offi- The | Navy officials, he said) would be Ad- | miral Paul Dungan, senior navy offi- | } —More than 400 American delegates | torms of general staffs, in terms of | cer stationed at the plant, and Capt. | were present at the opening sesslon | effectives and strategy. What we're | C. C. Simmons, Navy superintendent | of construction there. | Word of the blaze was not received outside the yard until some hours after it had been discovered. Yard work- men attempted to extinguish it with | the shipbuilding company's apparatus, | and after about three hours of unsuc- cessful battling calied in the Quincy Fire Department. Acrig, heavy smoke billowed from engine room openings and firemen ‘wnrked in groups of three for pe- riods of five minutes. | is Massaua, Eritrea. Mr. Stallings ‘will | be in constant touch with his men through short-wave radio and motor cycles and trucks. In addition to writing the news of events, Mr. Stallings wili caption the | pictures he and the four camera men | take. Truman H. Talley, former war | correspondent and now general man- | ager of Fox Movietone News, will | supervise the selection and technical | preparation of pictures for publica- | tion in the associated newspapers of ;the North American Newspaper Al- | liance. A vast amount of preparation went before this expedition. No replace- ments are available in Ethiopia and every contingency had to be fore- | seen. Special equipment had to be bought, built or invented to offset | tropical rain, damp rot and the frill- ing effect of heat on film. Special | safes had to be constructed to pge- | serve the film after exposure. Minia- | ture laboratories for making tests on |the ground were designed and built. Lenses vary 'in focal length from |1 inch to 17 inches. “The 17-inch lens,” said Waldron, “will help us fill a picture with two battleships 4% miles away. The l-inch lens is |to make us comfortable during the infighting. A man standing 4 feet away will fill a picture then. “The way these guys are thinking,” he added mournfully, “that 1-inch lens ‘might just as well be soidered on the camera. e i, ety dogs tone P&..) 4