Evening Star Newspaper, August 13, 1935, Page 2

','_5—2 FER THE EVENING STAR, WASHINGTON, D. €., TUESDAY, AUGUST 13, 1935. SOUND TAX THEORY HELD DISCARDED Imaginary “Share-Wealth” Plan Hit as Inadequate for Present Needs. BY DAVID LAWRENCE. The tax muddle grows daily more complicated, politically, economicaily, financially It Congress drops its soak-the-poor program now and just passes the soak- the-rich rates then the administra- tion will be forced to confess next vear that even with the drastic changes it has made the revenues are inadequate. Its leverage will have | been used up. Today by taxing rich and poor alike the administration can at least argue that everybody is being treated to some tax increases and that, there- fore, they should be borne with equanimity. If, however, the legis- lative program concentrates on one group and the unbalanced budgets continue because of the inordinate expenditures there will be no excuses | to make next session on the very eve. of a congressional and presi- dential election. The people of mod- erate means would be bound to resent being singled out then. The regretable part of the whole business is that sound tax theory is being discarded for the new fangled | idea of bringing utopia by an imag- | inary redistribution of wealth whereby | the average man doesn't get any| more income, but the politicians get more and more billions to hand out| to their henchmen. | Sound tax theory, proved by ex- perience over 20 years, is that the Jower the tax rates, the higher are| the revenues collected, whereas the | higher the tax rates the lower are the collections in the aggregate. Industry’s Position Stated. “The facts, however, are clear and In order that the industry’s position thall not be confused, they may be stated as follows: % This may or may not be because | avoidance of taxation is bred by pro- hibitive rates. But it certainly is true that the velocity of transactions in an | economic system like ours is mate- rially diminished when taxes have to be paid at almost every turn. The administration is in a tight place. If it doesn’t tax the people of | | sary to act for the next few days. What’s What Behind News In Capital Senate Tax Bill Action Relieves Amazement of Politicos. BY PAUL MALLON. The first thing that baby politicians learn in the smoking room kinder- garten is never to vote for taxes be- tore an election. Consequently, grad- vate politicos nearly keeled over when they read that the New Deal Sen- ators on the Finance Committee voted for the La Follette program ime posing an unprecedented burden on rearly every one earning a living. Even opposition strategists have always agreed that the original New Deal technique of spending now and paying later was the smartest ever. It was obviously shrewd to wait until after the next election before arriving at the day of tazation reckoning. They thought it was bad enough when President Roosevelt suggested taxing the few rich who always fur- nish campaign contributions, but were consoled by the fact that the idea was supposed to be popular with the many poor. But when the New Deal Sen- ators sponsored a plan soaking even the jobless on relief for income taxes, it just did not make sense. In fact, before the committee, 8 to 6, struck out the La Follette amendment, it was privately suggested that the Lobby Committee recall the now apologetic New Jersey advertising man and ask him what he thinks of the Senate Finance Committee. That may not be necessary. If you will wait a week you will see that these boys may not be quite as dizay or as daffy as they will find it neces- The explanation behind this clown- | ing may be found in the very bad mess in which Mr. Roosevelt's original proposal has become involved. From moderate means as well as the rich, | the beginning the major stumbling its budget will not be anywhere near | block has been eager young Senator balanced. If it does not cut expenses, | La Follette. The powers that be have it will not have any balanced budget | thought it advisable to appease him even if the rich and poor alike are 2l along the way. They kept him taxed heavily. from trying to wreck several bills The days of reckoning are here at | With tax amendments by promising to last. The public is about to become | Bive his ideas a try-out when this tax | tax-conscious, which means that the people are going to be expense-con- | scious. This is a salutary develop- ment, for the way the New Deal has been spending billions it would seem as if money grew on trees and was inexhaustible in supply. Every nation in the world has faced the unbalanced budget in time of economic crisis. But different nations face the issue differently. In some | countries they prefer to inflate the | | | | currency, turn on the printing presses, send prices sky high, increase the hardships to the poor man, whose dol- lar buys less and less food and cloth- ing; and then, after a complete cycle, | the refinancing begins, but in its wake is a casualty list which Germany in recent years best exemplifies In other countries, like England, the kit is taken early, the expenses are cut down irrespective of the protests ot those on Government pay rolls and doles, and a subsistence wage is paid Also, the graft and extravagance and | experimentation are cut to the mini- gum. England’s Experience. . Today England is prospering be- | ¢ause government finances there were well handled. Taxes are still high but flever have they been as high as they | will be here under the proposed legis- | fation at this session of Congress, and | @ill we are far away from any bal- snced budgets. - The politics of taxation is never to | tax the poor or any class which has | ® large number of votes. But that ¥as good politics when the Nation as v whole was prospering. Staring the Boor people in the face on the other side nowadays is the growing public debt and the far-reaching conse- guences of a continuing fiscal un- soundness as it may relate to Govern- ment bonds, to the policies invested in insurance companies, which in turn #iold Government bonds, and to the banks, which are bound to be con- terned if the Government bonds they hold are to be adversely affected by unwillingness or incapacity to balance the Federal budget. The politicians would like to bal- ance the budget some day, but not now. The American people, however, will find out that heavy taxation is coming. The press will tell them the big secret and the cold figures of un- diminished deficits will also tell them. The courageous way to handle the | present situation is to require the Treasury to recommend a tax pro- | gram that bears heavily on all who are able to pay, a tax program that does not break down the fiber of American business or kill initiative, but a tax program that gradually in- creases Federal revenues at the same time that an administrtion pledged to economy and curtailment of ex- travagance sets about to cut and cut and cut expenses. Eventually this will be our Gov- ernment’s policy, irrespective of whether Mr. Roosevelt or some one else is at the helm. For it is the logical way to save the Nation from inflation or such an impairment of the national credit as would multiply the distress of the depression years manyfold. (Copyright. 1935.) VISITOR IN CAPITAL STABBED BY BANDIT bill came along. If they had not accepted his un- wanted program in committee an open floor fight of possibly siz weeks’ duration would have re- sulted. As it is, Senator La Fol- lete will be a leading spokesman for the bill, which is now con- sidered to be so bad from a po- litical standpoint that it will cause a popular reaction. | Of course, the real bill will be writ- | ten later when the House and Senate | conferees get together in private and seek to adjust the differences in their | two measures. State departmentalists will hold up their hands in horror if you suggest | the Senate the vote was 74 to 1. New | countryside. that they have invoked economic | Dealers expressed doubt that there | sanctions against Italy, but they have. | would be more than 40 House votes the It was don: intentionally in a way | which was ambiguous enough to be | clever. Lira Suffers Setback. The exvort-import bank issued an unnoticed announcement a few days | back that it would not consider any | further applications for credits in-| volving Italy “m view of the uncertain | conditions” in that country. If you press bank officials they will add pri- vately that Mussolini’s promised wi against Ethiopia hurt the lira so much | that he is not considered a good credit | risk. That is true, and is reason enough, but there is another. The jact is that the same deci- sion would have been reached if the lira were sound. Our diplomats agreed unanimously among them- selves that they would prevent American dollars from being used in any way to finance Mussolini’s conquest. The situatior arose over efforts of | American cotton manufacturers to ob- tain credits with which to finance shipment ot cotton goods to Italy. Ex- porters sought six months’ credit from New York benkers. The banks re- fused anything longer than three months, so the exporters turned in vain to the Government. The State Department is trying to indicate iv had nothing to do with the affair. Secretary Hull says he knows nothing of it and refers all in- quiries to th: bank. He neglects to add, however that two of his prized assistants (Messrs. Moore and Kelley) are directors of the bank and partici- pated in the decision. Britain, Prance and Italy are going to sit around a conference table in Paris the end of the week to discuss Ethiopia’s fate. The announced pur- pose is to induce Italy to take eco- nomic concessions instead of going to ‘war. Mandate Proposal Likely. The inside on it, as heard by our diplomats, is that Britain is going to propose something in the nature of a League of Nations mandate over Ethiopia. It would be created for the purpose of “assisting the economic de- velopment” of the African kingdom. Under this mandate Italy would get economic and colonization concessions, while Haile Selassie could keep his throne and pretend he is independent. James C. Kennedy, 50, of Brook- lyn Found on Street by Motorist. James C. Kennedy, 50, of Brooklyn, N. Y, is in a serious condition in Emergency Hospital suffering from stab wounds in the back inflicted by a man who attacked and robbed him last night of $14 while on Fifteenth street between Constitution and Penn- sylvania avenues. Kennedy registered here at the Raleigh Hotel three days ago. He had gone for a walk shortly before 9 o'clock last night and while strolling along Fifteenth street was attacked by the robber from behind. After robbing him the bandit left Kennedy lying on the sidewalk, where he was found half conscious by a mo- The British do not really belteve Italy will accept, but the proposal will wash British hands of the con- sequences. Gen. Johnson'’s trouble with striking relief workers was no surprise to him. The New Deal authorities knew weeks ago that it was coming and did every- thing they could to prevent it. Mr. Roosevelt personally made the decision to fight the strike. His liaison man with Johnson was Assist- ant Labor Secretary McGrady. Inci- dentally, this is why Johnson has been glum the last few weeks, The rumors that he received a spanking from Washington are not correct. (Copyright. 1935.) e Army Captain Shot as Spy. - | torist who took him to the hospital. ‘WARSAW, August 13 (#).—A Polish Okulicz was Dressed plainly enough to be taken for one of her subjects, Queen Wilhelmina of Holland is shown at boat train for London. With her her), the queen was en route to a holiday in Scotland. Harwich, England, before taking the daughter, Princess Juliana (next to —A. P. Photo. FATE OF PENSION BIL IN BALANCE Roosevelt, However, Is Ex- pected to Veto Spanish Veterans’ Measure. | By the Associated Press. Conflicting reports that the Presi- dent was going to sign and veto the Spanish War veterans’ pension bill reached the Capitol today. Most Democratic leaders proceeded on the assumption that it would oz a veto, They even had promised sup- porters of the bill an immediate vote on a vete. None expected that a veto would be sustained. The bill originally passed the House unanimously. In to uphold the veto. Today was the last day on which | the President cculd veto or sign the | named in bill. If the day passed and he did neither it would automatically become alaw. The measure would restore prac- tically the last of the economy cuts of 1933. The effect would be to re- store pensions to Spanish-American War veterans who have not been able 0 prove their disabilities attributable to actual service. Likewise, pensions would again go to their widows or de- pendents. The bill would increase by $31,789. - 000 to $45,581,000 the Federal expendi- tures for Spanish War veterans. The $31,789,000 estimate was pre- pared by Rice W. Means, chairman of the Legislative Committee of United Spanish War Veterans; the $45,581,000 estimate was by Gen. Hines. TRUAX IS HONORED BY HOUSE MEMBERS? Deceased Ohioan Is Lauded, After Which Body Adjourns in Respect to Him. By the Associated Press. The House yesterday paid homage to a deceased member and welcomed a new one, For 45 minutes members listened to laudations of Charles V. Truax, Ohio Democrat at large, who died here Friday. Then it adjourned in respect to him. But at the start of the session Frank W. Boykin, Democrat, was sworn in to represent the first Alabama con- gressional district, left vacant by the appointment of John McDuffie to a Federal judgeship. ‘There now are five vacancies in the House, Speaker Byrns named five of Truax’s Ohio coileagues — Representatives Sweeney, Fletcher, Young and Hess— to attend the funeral. MOTHER TO STAND TRIAL Murder of Three Children Is Charged to Woman. LINDSAY, Ontario, August 13 (®), —Mrs. Guy Wallace, 36-year-old mother charged with shoving her five children into the Scugog River July 20 and causing the death of three of them, was committed yesterday to stand trial at the”Fall Assizes on a charge of murder, Senate: ‘Takes up liquor control bill. Lobby Committeé questions lawyers receiving fees in connection with hold- ing company bill. House: ‘Votes on A. A. A. conference report. ‘TOMORROW. Senate: Debate on tax bill District Committee will meet on local social security program, ‘TOMORROW., SPY SCARE DENIED IN ARSENAL ORDER, ‘Ban on Aircraft Over Reser- | vations Is Protective Move, | Officials Say. By the Associated Press. Military officials scoffed today at| speculation that a “spy scare” had any connection with a presidential “order prohibiting eivil aircraft from ‘flflng over Army and naval arsenals, ordnance reservations or ammunition depots. ‘The motivating reason, Army chiefs said, was to prevent the possibility | of airplanes falling into Government | storehouses of explosives and setting | ! off a blast that would endanger the | Nevertheless, it was conceded that | ban would prevent the taking of | aerial pictures of the military reser- | vations. the order. A part of the Aleutian Islands was | Included in the restricted zones. They | do not contain an ammunition depot. ‘They served recently as a base for a seaplane squadron operating in con- | nection with Navy maneuvers. Sec- | retary Swanson said several weeks ago naval officials would consider estab- lishing a permanent naval base there after expiration of the Washington naval treaty next year. The President’s order, issued upon the joint recommendation of the Sec- | retaries of the War, Navy and Com- | merce Departments, said the “air- ! spaces over the military and naval| | reservations and other areas” are set | aside for governmental purposes as | “airspace reservations.” | In those reservations, it said, “civil aircraft, for reasons of public safety, are forbidden to be operated except by special permission in each case of that department haviing jurisdiction over the reservations or areas con- cerned.” CYCLIST HURT WHEN HIT BY MAN IN DEATH FALL Body Hurtling From Fifteenth Floor of Chicago Hotel Seen by *Office Workers. | By the Associated Press. CHICAGO, August 13.—A motor cycle rider was knocked from his machine yesterday when struck by the hurtling body of a man dropping to his death from the fifteenth floor of a Loop hotel. O. L. Jones, 50, an unemployed clerk, was killed in the fall and Earl Hardy, 27, the motor cyclist, was taken to a hospital with a broken arm. Police said footprints on a window- sill indicated Jones had stood there a moment before the plunge. Office workers in La Salle street saw the falling body. CONVICT IS SLAIN Guard Shoots One of Three At- tempting to Escape. ANGLETON, Tex., August 13 (P).— Tom Larry, 24-year-old convict, was shot to death on the Retrieve Prison Farm, 6 miles from here, yesterday in an attempted break by three con- victs from a wood-cutting squad. *| their products nationally. NEW LIQUOR BILL FOUGHT IN SENATE Controversy Stirred by Ef- fort to Change Federal Control Over Industry. By the Associated Press. A bill to set up new Federal control over the liquor industry came before the Senate for debate today amid clashing views on several major points. The bill reduires all distillers, rec- tifiers, importers or dealers operating in interstate commerce to obtain per- mits from a new administrative board of three. To get » permit they would be required to observe “fair trade” practices and to avold deceptive ad- vertising and branding. Passed by House. Already passed by the House, the measure has been revised by the Senate Finance Committee. The House permitted sale of liquor in barrels and casks to hotels and bona fide clubs, but this was stricken out by the Senate committee on the plea of Secretary Morgenthau that it would take an “army” to prevent bootlegging. . Cooperage industries, however, fought for use of barrels in retail trade instead of only bottles, as allowed under present reg- ulations. The House put the new administra- tion under the Treasury Department, but, again heeding that department’s wishes, the Senate committee passed an amendment setting up an inde- pendent agency. Deceptive Advertising Outlawed. Deceptive advertising or branding was outlawed, but newspapers, maga- zines and broadcasters were exempted | from liability for misleading state- | ments made in advertisements submit- | ted to them. | Most controversial was the bulk sales provision, opposed by Federal enforcement agencies, but defended | by representatives of small distillers and rectifiers, who contended it was the only way they could compete with big distilleries able to advertise | Hotel interests pleaded that bulk sales would permit them to sell drinks cheaper and thereby drive out boot- legging. ‘Treasury officials declared bulk sales meant “return of the conditions in the old saloon.” AGREEMENT NEARS Compromise Declared to Provide More Safeguards Against Speculations. By the Associated Press. House and Senate banking bill con- | ferees were expected to reach an agreement today composing all dif- | ferences between the compromise Senate measure and the more drastic House draft. Predictions of an agreement came after President Roosevelt reputedly reaffirmed his opposition to relaxing prohibitions against commercial banks engaged in underwriting securities. Senator Glass, Democrat, of Vir- ginia, chairman of the Senate Con-! ference Committee, called on the President at the request of the Sen- Twenty-four of them were ate and House conferees to discuss| Democratic with him a suggested compromise on the Senate provision permitting banks of deposit to return to the underwrit- ing business under strict limitations The compromise was said to have provided more safeguards against banks indulging in undue speculation with deposit funds than were written into the Senate bill, but the President | was described as unylelding in his op- position. Senator Glass would not discuss the White House conference. PHIL KENNAMER BEGINS | TAKING FLYING LESSONS; Convicted Slayer, Confident of Re-’ versed Verdict, Plans Career. By the Assoclated Press. TULSA, Okla., August 13.—Phil! Kennamer, 19, convicted slayer of John Gorrell, 23, began taking flying lessons yesterday. Friends said young Kennamer, son of Federal Judge Franklin E. Kenna- mer, was confident the verdict of con- viction would be reversed and that he intended to take up flying as a pro- fession. Neither Kennamer nor his nncr-i neys would comment. Kennamer was convicted last Feb- ruary of manslaughter in Gorrell's | death and was sentenced to 25 years in prison. His case is now before the | Criminal Court of Appe: | —_— ACCUSED OF KIDNAPING LOS ANGELES, August 13 (®).— China’s new Minister to Cuba, John Woy Chung. was accused of kidnaping and robbery in 3 suit for $110,000 damages filed yesterday by Chan Hong Quong, Los Angeles merchant. Chan said the diplomat kidnaped him three years ago in China, held him prisoner under ransom demands ot $10,000 and stole $3,000 worth of jewelry, money, clothing and musical instruments from his home during the confinement. Chung arrived here Saturday en route to his Cuban post. Relief Client Fined $5 as Wife Beater Produces $100 Bill cngeEs SELECTED List of 20 Announced for Sum- mer Training of Teachers. Got It From Pastor, He Says, as Police Send Out for Change. By the Associated Press. BALTIMORE, August’ 13.—When Edward L. Smith, colored, relief client, was fined $5 in Police Court today for striking his wife he almost broke up court proceedings by flipping a $100 bill to the desk sergeant. The sergeant, fingering the bill in ON BANKING BII.L| | no changes from Ah, No Copyright, A. P. Wirephoto. Mme. Amelita Galli Curci, inte “Potato” | | | rnationally famous singer, is shown trying out her voice in a Chicago hospital yesterday after surgeons re- moved g goitre, or “potato” ing too much. APPROVAL IS GIVEN Ways and Means Commit- tee Reports No Change in 12-to-11 Vote. By the Associated Press. Formal approval was given to the Guffey coal-stabilization bill today by | the House Ways and Means Com- mittee. It was reported that there were yesterday's when the committee balloted, 12 to 11—with two members answering “present”—to turn the bill over to the House with the recommendation that it be passed. The intention of leaders was to bring it up on the floor Thursday and pass it by Friday night. ‘The measure would set up a little N. R. A. in the coal industry. | Word reached Capltol Hill again | today that the President is insisting that both House and Senate be al- lowed a chance to vote on the bill before adjournment. | Before the bill can reach the floor it must have the sanction of the Rules Committee. Reports today were that that committee was as closely divided as the Ways and Means Com- mittee. vote, leaders indicated no change of mind from their previous predictions that the bill would have a “tough time” on the ficor, but New Deal chiefs, as one of them put it privately, felt that the bill had “the long end of a 50-50 chance to pass the House.” CONGRESS MAY SPOIL. BIRTHDAY OF F. D, JR.! President Wants to Attend Party | as Son Reaches Majority, but Duties May Interfere. By the Associated Press. Congress may partially spoil the 21st birthday party of Franklin D. Roosevelt, jr. | The White House today said Presi- | dent Roosevelt hopes to attend Frank lin's party at the Hyde Park, N. family home on Saturday, but a di cision on the week-end trip depends on the legislative program at Capitol Hill. Mr. Roosevelt has returned to Hyde Park for years on August 17, the an- niversary of his namesake and third son. It is known Mrs. Roosevelt has long been planning this year's event. However, the President is interested in bringing about & conclusion of the administration’s legislative program. and the prospects of that will control the week-end trip. - MRS. ROOSEVELT ASKED TO SAVE DOG’S LIFE Peekskill Woman Seeks to Set Aside Court’s Sentence of Death for Pet. By the Associated Press. PEEKSKILL, N. Y, August 13.— Mrs. Franklin D. Roosevelt was asked last night to save a dog from a court sentence of death. King, a 4-year-old German shep- herd, was sentenced to be killed as a vicious dog by Police Justice Wiley Travis, jr., and a Supreme Court jus- tice affirmed the decree. A neighbor charged the dog bitten him. Mrs. Marie Van Der Wee, owner of | King, sent a letter by airmail to Mrs. Roosevelt pleading for her interces- sion. King, meanwhile, was removed to Putnam County, béyond the jurisdic- tion of the court order. DELEGATES NAMED James Hossack Woods Will Head Canadian League Group. OTTAWA, August 13 (#)—Prime Minister R. B. Bennett, announced yesterday the appointment of James Hossack Woods, editor of the Calgary Herald, as head of the Canadian dele- gation for the League of Nations As- sembly at Geneva in September. had | (as she called it) from her throat Hazel Keemle (right) said she has a job keeping Galli Curci from sirg- nounced yesterday that it had selected | amazement, asked Smith where he 20 colleges for Summer training of | obtained such a large bill when he teachers who will' continue its adult|and his wife are on the city relief education program during the coming | rolis. g “From my pastor,” Smith replied, These will offer training to 1,000 | but refused to identify the clergyman. teachers, while five additional centers| The sergeant made & note to report for 350 teachers. are to be named | the incident to relief suthor shortly. Teachers are paid work rellef ;ntnnmeuuwndwshnkw e Other members of the delegation were named as Prof. Edouard Mont- petit, director-registrar of the Univer- sity of Montreal, and Miss Winnifred Kydd, dean of women at Queens Uni: wversity. Minister of Justice Hugh Guthrie Nurse GUFFEY COAL BILL MOONEY WITNESS . REVERSES STORY Denies He Ever Saw Man He Testified Against Ex- cept in Jail. By the Associated Press. BALTIMORE, August 13.—Gray- haired, paralyzed John MacDonald key witness at the trial of Thomas J Mooney for the San Francisco Pre- paredness day bombing, asserted under oath today he had never seen Mooney before viewing him in a San Francisco Jail cell after the bombing. Mac- Donald testified before A. E. Shaw, referee taking depositions for the Cali- | fornia Supreme Court for considera- tion with Mooney's habeas corpus bid for freedom from life in prison. John Finerty, counsel for Mooney, in a statement to the referee at the | opening of the hearing, said its pur- pose was to show that MacDonald’s | testimony at Mooney’s trial had been “framed” by District Attorney Charles M. Fickert and certain San Francisco police officers. | The hearing was interrupted fre- quently by objections of William Cleary, California deputy attorney general, that questions by Finerty were leading. Referee Shaw was in- | clined to agree, and Finerty asked the questions subject to the objections. Macdonald, now a patient in the Baltimore City Hospital, testifiec Lieut. Charles Goff showed him a pic- ture of Mooney in the San Francisco Police Station. He said he told Gofl it was not that of the man who left a suit case at the corner of Stewart and Market streets a few minutes before the explosion. He said Goff carried him to the prison where Mooney was held, and he asserted then he had never seen Mooney before. When Goff and Macdonald left Mooney’s cell, the witness said, Goff told him “that’s the man who did it.” Macdonald said he replied that it did not look like him. He said Goff then took him back to the station and told District Attorney Fickert: “Charlie, he identified him." | The witness said he told Fickert that afternoon Mooney was not the man with the suitcase, identified as containing the deadly time bomb. 'DAUGHTER OF GEM DEALER MISSING | Ceylon Girl Makes Bank Deposit of $250, Then Dis- appears. By the Associated Press. | | SAN DIEGO, Calif.. August 13.— | Missing under mysterious ~ circum- | stances, Rubie Salie, | daughter of Prince M. U. M. Salie, San Diego Exposition gem display owner, was sought throughout South- ern California early today. Disappearance of the young woman | night by her father, described by au- thorities as a wealthy diamond broker. In his story to police, the distracted father said he last saw his daughter about noon yesterday when he said he gave her $250 to deposit in a branch bank at the San Diego Expo- | sition. A quick check by detectives dis-| closed the young woman had made the deposit and then had gone to the ex- position branch post office. From there, it was indicated, she returned to her apartment. | Prince Salie told investigators he | found the bank book in his apart- ment, but that the girl had vanished. | He said their checking account was | a joint one and advanced the theory that the girl might have been seized | by persons to force her to write| checks.. | Born in Ceylon, the young woman was said by her father to have trav- eled extensively. Five feet two inches tall, the girl weighed 115 pounds, and when last seen was dressed in a blue- green dress, black shoes and a white straw hat ., INDIAN MOUND FOUND G Discovery of an Indian mound in Florida different from any preyiously found in America has been reported to the Smithsonian Institution. Matthew W. Stirling, chief of the institution’s Bureau of American Eth- nology, said the mound was on Key Largo, was about 11 feet high and differed from other mounds in its stone facing. Presence of another mound of the same type in the middle 22-year-old | | was reported to police just before mid- | P.W.A. MAY FAVOR UNION EMPLOYES Administration Believed to Be Paving Way for Change of Policy. By the Associated Press. In the face of demands by organ- ized labor for transfer of all work- relief projects to the Public Works Administration, it was disclosed to- day that the administration is con- sidering the exclusive employment of union labor on housing and P W. A jobs. Organized labor now fis virtually barred from participation in the $4,000,000,000 relief drive as few building trades members are on relief Harry L. Hopkins and Secretary Ickes declined comment on Ameri- can Pederation of Labor resolutions demanding elimination of the W. P. A. in work-relief construction. Deductions Considered. Hopkins’ aides had contended, how- ever, that because no deductions re- sult from bad weather, the $19 to $94 a month work-relief schedule pa! as well as P. W. A. over a period, P. W. A. officials predicted today that a recent change permitting local au- thorities to fix wages—except that the union scale must be followed where it prevails on other public construction—would bring a reduc- tion in the payments. W. P. A. officials meanwhile ex- pressed satisfaction at reports that W. P. A. strikers in Cleveland and Philadelphia had returned to work and at the statement by Hugh S. Johnson, New York W. P. A. chief- tain, that only 1000 out of 15000 skilled workmen had walked out. | The importance of the contemplated change in employment thods on housing and P. W. A. projects lay in the fact that comparatively few W P A projects will involve skilled workmen because all new construction over $25,000 must be carried out by P WA Housing already had been exempted from the requirement that 90 per cent of those employed must be taken off | relief rolls. The President's wage reg- ulations provided also that jobs would be filled from United States Employ- ment Service lists. Change in Policy. Preparing the way for a change in policy, an executive order said to have been suggested to the President by Ickes was made public yesterday by the Public Works Administration. It authorized Hopkins to waive the em- ployment service requirements. At the same time P. W. A. post- poned the scheduled opening of bids on the $3,000000 Outhwaite slum clearance project in Cleveland “to as- certain what regulations. if any. might be issued by the works progress ad- ministrator.” High officials said labor for projects so exempted would be taken from union rolls in all cases where building trades were organized. A similar con- cession, they reminded. was won by organized labor at the start of P. W. A. COLLAPSE OF STRIKE INDICATED. Incomplete Figures Show Only 700 Out in New York, By the Associated Press NEW YORK, August 13.—Although {urther walk-outs of union labor on Works Progress Administration proj- ects were threatened. incomplete fig- ures showing less than 700 had struck were hailed here today as indicating a collapse of the walk-out It was the sixth day since the first 200 men were called off the job with the announcement 10,000 union la- borers would follow and that 100,000 ron-union relief workers would join them but work was well under way |on_every project but one. { There were conflicting claims over the actual number who quit work Lut union officials were chary of mak- ing estimates. “You wor't get any real figures or how the strike is going until Wednes- day,” Joseph P. Ryan. president ot the Central Trades and Labor Cou: cil, said. Other = union leaders, protesting hourly “security wage” rates on work: Progress Administration projects ral- lied their forces in an attempt to spread strikes as the American Fed- eration of Labor officially upheld their protest on the rate. Gen. Hugh Johnson, New York W P. A. director, studied the federation statement last night after his re- turn from Washington. His onl answer was a grim “nothing to say.’ George Meany, president of the New York State Federation of Labor emerged from a parley with his lieu- tenants voicing new defis. “Even though they force our men .back to work, the entire Rooseve! administration program is doomed t be a colossal failure” Meany as serted A. F. OF L. STANDS FIRM. Transfer of W. P. A. Jobs to P. W A | Recommended. By the Associated Press. ATLANTIC CITY, N. J.,, August 13 —The American Federation of Labor, through officially expressed statements | of its executive council, stood pat last | night on insisting upon prevatling hourly rates of pay on Government P. W. A. jobs. In upholding the prevailing wage scale standard the executive council through President William Green, rec- ommended that all Federal W. P. A, projects be transferred to the P. W. A to forestall further work-relief strikes over the country. Green, in handing out the state- ment, declared the A. F. of L. “cheer- fully accepts” the Government “se- curity wage” or any other monthly wage for relief workers. “The American Federation of Labor asks only that the prevailing hourly standard wage rate be maintained in the payment of the monthly security wage.” FISH ON G. 0. P. PROGRAM Will Answer Roosevelt in Ad- dressing Young Republicans. BILLINGS, Mont., August 13 (#).— Representative Hamilton Fish of New York has been selected to answer President Roosevelt's address to young Democrats at Milwaukee August 23 when the New York Representative addresses Young Republicans of 11 Western States at Yellowstone Park on the same date. Mike Reynolds of Billings, director of the Montana League of Young Republicans, said Fish and George Olmstead of Des Moines, Iowa, will be the principal speakers.” Theodore was named to the chairmanship of the Board of Railway Commissioners. ’ of the Everglades was reported to Stir- ling by Seninole Indians, Roosevelt, jr, is also expected to speak,