Evening Star Newspaper, August 8, 1935, Page 4

" A4 s ETHIOPIA T0 SEND MISSION T0 JAPAN Secrecy Marks Plans for Discussions of Relations in Event of War. By the Associated Press. ADDIS ABABA, August 8.—Gov- ernmental plans for an Ethiopian mis- sion to Japan, to leave Addis Ababa soon, were disclosed today. The mission, it was said by an au- thority, is to be headed by Daba Bir- you, former official to the foreign office. The purpose of the Ethiopian party will be kept a close secret. Accompanied First Mission. Birrou is experienced in diplomatic! negotiations with the Japanese. He! accompanied the first Ethiopian mis- sion to Japan in 1932. That delegation was headed by For- eign Minister Herouy, who returned the visit of the Japanese delegation to the coronation of Emperor Haile Belassie. (In recent days, rumors have been heard in Ethiopia, but officially denied, that a Japanese mission was on its way to the Ethioplan Capital.) The German legation scoffed at rumors that Gen. Hans Kundt, for- mer commander of the Bolivian Army, was in Ethiopia. He described it as another “invented story” like recent fantastic tales that Lawrence of Arabia was still alive and had ap- peared on the borders of Kenya. (The Bolivian legation in Berlin stated that Gen. Kundt is still living in Bolivia. Although born a German, he has become a naturalized Boliv- fan.) Adua Closed to Troops. ! Emperor Halle Selassie has refused | permission to his warriors to fore- under the new District law signed THE EVENING STAR, WASHINGTON, D. C, THURSDAY, AUGUST 8, 1935. Attorneys Raymond Neudecker and Jean M. Boardman filing first suits for absolute divorce this morning late yesterday by President Roosevelt, and Boardman, filing suits in behalf of their clients: Harry B. Dertzbaugh, clerk, and Harry M. Hull. set is Mrs. Ruth N. Steel, whose divorce petitfon was the first original suit filed under the new bill. gather in the vicinity of Adua, where an Italian expedition was crushed 40| years ago. | Authoritative sources expressed be- | lief today that the King of Kings, | realizing Adua probably would be Italy’s first goal, may decide not to| defend it forcefully, but to use puni- | tive surprise attacks elsewhere. This belief was based on reports | that Haile Selassie discussed with his | chiefs recently concentration of his| forces on the Italian Somaliland | front, so that if war should come, | they could swoop into the apparently | slightly defended area. Unconfirmed reports said the Ital- fans would be allowed to take Adua and to advance into deep Northern Ethiopia, but that when they were far from their bases in unmapped | country the Ethiopians would try to| cut them off and demoralize them with guerilla tactics. | JAPAN TO OPEN LEGATION. First Secretary of Embassy at Rome to Go to Addis Ababa. By the Associated Press. TOKIO, August 8.—An authorita- tive source indicated today that ‘Toshiharu Harima, first secretary of the Japanese Embassy in Rome, has been designated to open a Japanese Legation at Addis Ababa, Ethiopia, in January. i This source suggests that Harima | ‘would be made charge d'affaires of the | had made some progress toward set- | Ethiopian diplomatic mission. Commenting on reports from Addis Ababa that an Ethiopian mission might be sent to Japan, government officials said they were ignorant of | aay such plan and declined to com- ment on the report in the absence of official information. They did disclose, however, that the Japanese foreign office was steadily pushing forward its preparations for the establishment of a Japanese lega- tion January 1, 1936, at the Ethiopian capital | It was officially stressed that Lhe, plans for the Addis Ababa legation were not connected with the Italo- | Ethiopian crisis. | ITALY ANNOUNCES MANEUVERS. | i 508,000 Men Will Be Secretly Muhu-ll ized This Month. i ROME, August 8 () —With secret | military maneuvers involving perhaps 508,000 men scheduled shortly for | Northern Italy, an - Italian govern-| ment spokesman said today that Italy | needs no outside help, “financial or | otherwise,” in her struggle with Ethiopia. He made this statement in denying reports that Italy has been seeking cotton credits in New York. He char- acterized them as “stupid and ten- dentious.” The spokesman said thousands of rumors concerning Italian requests for loans have been circulated. “We have denied them time after time because there is no foundation for them,” he said. “Interested sources | are always talking of our needs. We | don’t need anything.” The spokesman said that as far as the foreign office knew, reports of a protest filed by the British govern- ment with Ambassador Grandi in London over Italian press attacks on Great Britain were equally unfounded. “We know nothing of this and| therefore it cannot be true,” he stated. | He said there was little change in | the general Italo-Ethiopian situation | except that it was likely the confer- ences among Italy, France and Great Britain would start about the middle of August in Paris. He said no foreign newspaper men or photographers representing foreign agencies would be allowed to witness the military maneuvers, in which 500,- 000 men may be involved, in Northern Italy later this month. He said it was probable that not even Italian newspaper men could witness them. Premier Mussolini today received M. Doutchich, the Minister of Yugoslavia, but the spokesman sald their con- versation was entirely along general lines and had no particular imme- diate importance. Meanwhile the steamship Aventino sailed from Naples with 124 soldiers of the medical corps and 12 officers. It will pick up 90 officers and 35Q soldiers of the medical corps at Cagliari, Sardinia. Tonight the steamer Colombo is scheduled to sail for Cagliari with 167 officers, 1,900 regular soldiers and 450 skilled workmen. The troops and auxiliaries will be reviewed by Crown Prince Umberto before their departure. PARLEY SET FOR AUGUST 16. By the Associated Press. PARIS, August 8.—Conversations on the Ifalo-Ethiopian crisis between representatives of England, France and Italy have been set tentatively for August 16 in Paris. The date and place were decided on at conferences among Premier Pierre Laval and the British and Italian Ambassadors. A definite announcement awaited formal acceptance by London and Rome, [} HOPSON 1S HUNTED INMARYLAND NOW Game of Tag With Lobby! Probers Goes On as In- quiry Suffers Lull. Lobby investigating on Capitol Hill languished today while continued for the man who holds the key to further progress—H. C. Hopson, utilities magnate. The House Rules Committee held a session this morning to consider mis- cellaneous matters, unrelated to lob- bying, and Chairman Black’s Senate committee held no session at all. The House investigators intimated Hopson, the dominating influence in the Associated Gas & Electric System, was somewhere in Maryland and that developments in the hunt might be expected momentarily. Earlier they had been acting on a belief that he was somewhere in Virginia. Utilities Bill Progresses. Meanwhile, Senate-House conferees utilities bill, in fighting which the Asociated system spent some $800,000. The principal center of argument, the question whether utility holding com- panies labeled “unnecessary” should be abolished in seven years, still re- mains to be tackled by the conferees, however. The conferees, appointed four weeks together in their first amicable meet- ing yesterday. the House, which defeated compul- sory abolition, had been refusing to sit in conference until Ben Cohen, administration aide, was excluded. They won their point, and Cohen was not there yesterday. Several minor points in the legis- lation were settled, and it was indi- cated the conferees would get to the abolition clause soon. Attempts at a | compromise have been hinted. Hurley Denies Lobbying. The Senate committee and Patrick J. Hurley, Hoover Secretary of War, yesterday engaged in an hour and quarter of acrimonious give-and-take, Hurley denied he engaged in any | lobbying in helping Associated Gas fight the Roosevelt bill. The committee also learned that Joseph P. Tumulty, who was secre- tary to President Wilson, received $33,000 from various utility companies for helping battle the bill. Of that, Tumulty said, he paid George Moses, former Republican Senator from New | Hampshire, $5,000. SCHOOL HEAD QUITS By a Staff Correspondent of The Star. UPPER MARLBORO, Md., August 8.—Robert B. Wilson, principal of the Bladensburg Junier High School, yes- terday submitted his resignation to the Prince Georges County Board of Education in order to accept the prin- cipalship of the Burkeville (Va.) High School. Wilson has been principal at Bla- densburg for the past two years. Supt. of Schools Nicholas Orem said the board expectec to have some diffi- culty in filling his position, as most of the well-qualified high school prin- cipals already are under contract for next year. ———— 12,000 Tons of Fish Sold. ‘The entire catch of the Dutch her- ing fleet in 1934, totaling 12,000 tons of fish, has been sold to Soviet Russia. WA SEq ™ o s . NORFOL K,oTo‘Pom'r COMFORT Leave the hot, stifling city behind— enjoy cool salt b ing, fishing and tions. who is 18 years old, was married four years ago. <& the search | The members from | Attention Government Employees 2 BOATS : s Divorces (Continued From First Page.) the next day. First he telephoned | Marvin McIntyre, the President’s sec- retary, with whom he once worked ! | on a local paper, and made sure the bill had actually been signed. Clerk's Auto Breaks Down. He then called Harry M. Hull, deputy clerk of the court, and ar- ranged to meet him at 8:30 am. Hull | couldn’t get his car started this morn- ing, but, as luck would have it, an- other clerk, Williams F. Lemon, ar- rived 20 minutes early. Neudecker pressed the surprised Lemon into serv- ice and was entering his suits on the docket when Boardman dashed into the clerk’s office. Mrs. Quesada, a Government ste- nographer, charged her husband, Irv- | ing G. Quesada, a patent attorney, with cruelty and desertion. In the | haste and confusion Quesada’s middle | | initial first appeared as “Q,” but Neu- decker discovered his mistake and had | the change made retroactively. The Quesadas were married June 2, 1919, | and have one child, Shirley, 15. Charges Filed by Wives. | Mrs. Thomas, a telephone operator at the Navy Yard, said she and her husband, Howard B. Thomas, were | tling the dispute over the Roosevelt| . rieq’ September 25, 1926. She charged Thomas with cruelty and con- structive desertion, the later consist- | ing of such alleged cruel treatment | that she was forced to leave him. They have one child, Edith May, 6. | Mrs. Steele, who is only 18, is the youngest of the three divorce seekers. Married four years ago, she charges her husband, James Steele, only with | 880 to settle differences in the Sen-| geserting her June 1, 1932. They have | ate and House utility legislation, got | one child, Margaret Elizabeth, 3| years old. The new divorce bill enlarges the | grounds for absolute divorce in the | District to include desertion, habitual | drunkenness and cruelty. Taxes (Continued From First Page.) illogical and unforeseeable liabilities, | continuing uncertainties and prolonged | controversies must be the consequence | to the taxpayers. Undeserved revenues and an exceedingly difficult, if not im- possible, administration must be the consequences to the Treasury.” Three Cases Compared. ‘Turning to the matter of inequitable | results, Alvord compared three hypo—“ thetical cases. His illustration follows: | “Assume three corporations with the | same amount of capital, with plants| built at the same time and having the same volume of business, reporting identical incomes representing only reasonable profits (after taxes are de- | ducted) on the capital invested. “Company A was financed in part through the sale of $300,000 of bonds. It originally sold $200,000 of preferred stock. By paying only moderate divi- dends it has been possible to retire the preferred stock out of earnings, leav- ing only common shares and bonds outstanding. A conservative deprecia- tion policy has been followed. Five hundred thousand dollars appeared to the management to be & fair valuation of the corporation’s capital assets, and this amount was declared as the value of capital stock for tax purposes. This company will be required to pay s capital stock tax of $500 and an ex- cess profits tax of $14,750. Earnings Paid Out. “Company B was financed entirely through the sale of common and pre- ferred shares, all of which remain outstanding. As in the case of com- pany A, a conservative depreciation policy has been followed. It has, ————— | sues. | been capitalized. reezes, ocean bath- otier shore attrac-’ Both steamers return in time tion and reservation call City Ticket Office St. N. W. NA. 1520—DI. 37 New Divorce Law Brings Race to File First Suit FR[NGH STRIKERS i Left to right: Attorneys Neudecker In the in= Mrs. Steel, —Star Staff Photo. however, paid out the bulk of its earn- ings in the form of dividends instead of employing a portion of such earn- ings to retire its preferred stock is- A fair and reasonable value of the stock appeared to be $1,000,000 and this amount was reported as the value of its capital stock for tax pur- poses. This corporation will be re- quired to pay a capital stock tax of $1.000 and an excess profits tax of $5,000. “Company C was bought out prior to 1933 by a holding corporation which paid a substantial sum for the going concern value, reflected in a | large item for good will which had | The company de- clared the value of its capital stock for tax purposes at $1,500,000. It will consequently be required to pay a cap- ital stock tax of $1,500 and an ex- cess profits tax of $1,500. “To summarize, the combined amount of the capital stock and excess profits taxes on the above corporations would be as follows Company Company Company Capital stock . Excess profits_ 14,7 Total tax ._$1 S6.000 $3.000 Variation in Burden. “The variation in the tax burden of | these three companies, similar in all | respects except as to form of capital | structure, is striking. Company A, which has followed a careful, cauti- ous financial policy, would be com- pelled to pay more than five times as much taxes as company C, which | pursued a different policy in build- ing up its capital structure. of-the-road policy, would be taxed at HAHN’S STORES CLOSED ALL DAY SATURDAY DURING AUGUST, EXCEPT 3212 14th STREET FLORSHEIM SHOES Plenty of styles and plenty of sizes left in shoes for Summer or year-'round wear. But they won’t sale c WILL CONTINUE All Florsheim Sports Shoes Every pair right out of our stock! White Also black and brown calfskins in incomplete sizes. All Hahn Specials Sports Shoes or trimmed buckskins. Smart white shoes that saved you $1 at reg- ular price, now still lower! Regularly 5.50! Genuine white China buck or with black or brown trim. Com- | heard the legislation roundly scored | pany B, which has followed a middle- | by representatives of the Chamber of | REJECT PROPOSAL Sailors Act Upon Learning Premier Laval Insists on Pay Cut. By the Associated Press. PARIS, August 8. —After a previous announcement that the French Line strike had been settled, the line’s striking crews at Le Havre tonight rejected the settlement offered by the ministry of merchant marine. The sailors’ refusal was announced when they learned by telephone that Premier Laval insisted they accept the 10 per cent pay cuts which caused them to go on strike yesterday. A delegation representing the strik- ers, which conferred here with Wil- liam Bertrand, minister of merchant marine, said it intended to win the men to a settlement upon its return to Le Havre tonight. A new demonstration against pay cuts broke out today in the Cherbourg naval arsenal, where the workmen suddenly laid down their tools and started marching through the ship yards singing the communist hymn “Internationale.” Troops were held in readiness. At Brest 5,000 shipyard workers and their wives marched in silent and solemn procession, following a hearse bearing the body of a fellow worker killed in Tuesday's riot. still another rate, paymg twice as much as company C and less than half the amount imposed on company A. A tax so unequal and so caprici- ous and so penalizing to careful, cautious financial policies certainly | cannot appeal to this committee.” | Representative Ellenbogen, Demo- | crat, of Pennsylvania appeared next| before the committee to urge an| amendment to the inheritance tax | section. Taking a hypothetical case of an industrial estate in which the assets| were not in liquid form, Representa- tive Ellenbogen suggested a provision allowing the owner of an estate to take out personal insurance, the pro- ceeds from which could be applied, tax free, to payment of the proposed inheritance tax levy. Chairman Harrison promised com- mittee consideration of the sugges- tion. Charles C. Mayer, representing the E. P. 1. C. Society of California, ap- peared to support the program. Walter E. Barton of this city urged exemption of Jife insurance from the inheritance taxes. In case such total exemption is not allowed, he asked that tHe committee set the exemption | for life insurance at $40.000. Mr. | Barton submitted three tables show- irg variations of revenue under his| proposals. The proposed rates, he said, “would | work an irreparable hardship upon the citizens of this country who have | been struggling to carry life insurance tor the benefit of their families.” Wager Fisher of Bryn Mawr, Pa. was the concluding witness, appearing to oppose the inheritance levies. Present death taxes are so compli- cated, he declared amid laughter, that an individual coula not handle his | own estate and if & lawyer handled | it there would be no residue left any- way. Through three hours of hearings yesterday afternoon, the committee Commerce. last forever —and this omes but twice a year. 5.95 2.95 and 3.95 Men’s Shops l4h & G 7th & K *Open nites *3212 14th OPEN SATURDAY UNTIL 2:00 P.M. 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