Evening Star Newspaper, August 14, 1935, Page 4

'A-4 *e D: . TAX CHANGE HEARING PLANNED Committee to Consider Va- ried Proposals to Raise Security Revenue. The Commissioners today tenta- tively planned to hold hearings on | proposals to be made for revision of the District's tax system. | A committee of District officials. ap- pointed to study suggestions of a variety of new forms of taxation, will start its work next Monday morning. It was said vesterday this group would not hold public hearings. Informa- tion today was that the Commissioners themselves would grant hearings of some sort before they adopted & pro-| posed new program. Officials siid this probably would be done after the Municipal Revenues Committee submitted recommenda- tions. The committee is headed by Corporation Counsel Prettyman and inciudes People’s Counsel Roberts, Auditor Donovan, Assessor Richards, § Utilities Commissicner Keech and | Director of Highways Whitehurst. | The committee was assigned par- ticularly to determine what tax changes would be needed to meet the annual cost of the proposed District social security program, estimated to cost some $1,800,000. | The committee was instructed to | give attention to local inheritance | and income taxes, gasoline and motor | vehicle weight taxes and utility taxa- | ation, The committee was directed | also to study possibility of revenue from motion picture theaters, chain stores and public entertainments. Real estate was specifically exempted | from the study Security (Continued From First Page.) for sale of property for delinquent taxes. Requires House action. A House bill to make eligible for dury service most Government em- ployes and persons having Govern- ment contracts, all of whom are now exempt. Some in the Federal and | District services would retain the ex- emption for special reasons. Amending sections of the District Code relating te several offenses, in- | cluding larceny and false pretense, 1 awaits House action. Authorizing the laying of petroleum pipe lines under Fifteenth street south- | east to the Anacostia River. Bills laid aside until next January ncluded an amendment to the traffic act, to apply the same rules to non-{ residents as to residents in the revoca- | tion of permits; authorizing a new | building for the recorder of deeds; authorizing defendants to waive jury trial in certain cases in Police Court; making it compulsory for women to, serve on juries instead of at their option; a bill amending the work- men’s compensation law, and the air- port bill. In connection with the amend- | ments to the liquor law Senator Rey- nolds, Democrat, of North Carolina, | was defeated in an effort to add a| The screams of three women threw a court room at Detroit into confusion yesterday as they were found guilty. with William Lee Ferris, of the $134 hold-up murder of Howard Carter Dickinson, New York attorney. The women are: Florence Jackson (seated, left), her sister, Loretta, and Jean Miller (right). restraining the women. Ferris is shown in light suit, lower right. Matrons are shown into law a measure calling for a new and far-reaching social experiment and the largest tax program ever ap- proved by Congress. Indications were the President would announce quickly the make-up of the | Social Security Board which will ad- minister the new law providing for | old-age pension and unemployment | insurance systems. First Pensions in 1942. Under the bill, employers and em- ployes eventually will be taxed 3 per | cent each on wages up to $3,000 an- nually to provide for contributory old- | age pensions. Benefits range rrnm‘ $10 to $85 a month. The plan becomes | operative January 1, 1937, but no| pensions will be paid until January 1, 1942 The bill also sets up a Federal- State unemployment insurance sys-| tem to be financed through a 3 per| cent pay roll tax against employers of eight or more persons. The em- ployers would get credit for payments made to State unemployment insur- ance systems. The credits could not exceed 90 per cent of the Federal tax. The taxes start January 1. 1936. An appropriation of $100.000,000 is | to be made by the Federal Govern- ment next year to provide for old-age | and grants to the blind, crippled chil- dren and needy mothers. | $49,750,000 for Aged. | In addition, the Government will| | Gift_tax (Continued From First Pur) confined itself to explaining the| changes made in the measure as approved by the House. | In its seclusion the report pre- sented the following table of estimated revenue: Source. Surtax increases Graduated cor- poration tax Capit stock tax Excess tax House bill $45.000,000 Senate bill $4.000,000 60,000,000 15.000.000 . 55.000.000 profits 10,000,000 fesp 100.000.000 Inheritance tax RE.000.000 Estate tax in- increase £0.000,000 21,000,000 24,000,000 Intercompany dividends -- 38.000000 _________| Totals __$269.000.000 0.000.000 Deduction” for corp. charity. 1 Net totals___$254.000,000 §1 As it now stands, the bill increases surtax rates from the $1,000,000 net income bracket upward; it graduates corporation taxes between a range of 121, and 151; per cent; it graduates the excess profits tax at 6 and 12 per cent; raises estate taxes all along the line; increases the gift tax on donors; increases the surtax rate on personal holding companies, and taxes intercompany dividends at a rate of 000.000 15.000.000 | 5,000,000 provision that would have defined a | offer grants of $15 a month, to be | 8bout 2 per cent. “neighborhood” as an area within | 600 feet of an applicant for a license. | for the purpose of determining who could object to granting the license. Corporation Counsel Prettyman said such an amendment would revive the controversy over the wet and dry| question in Takoma, D. C. After he had expressed a belief that the Rey- nelds amendment would result in kill- ing the entire bill, the amendment was defeated. Senator King said the question of defining thé word “neigh- borhood” in the law could be consid- ered separately at the next session, Among the changes the liquor bill makes in the present law are: Authorizing the board to suspend licenses for minor violations which do not warrant revocation of licenses; to prohibit customers from buying drinks before closing hour and remaining on the premises to drink them after the hours of legal sale; authorizing heavier penalties for intoxication or | drinking in public spaces. It also makes several minor changes in the original act. The Public Utility Court procedure bill is in the same form in which it ‘was previously worked out by Senator Tydings. In substance, it provides that the finding of the Utilities Com- | mission shall stand unless the utility noting the appeal satisfies the court the commission acted in an arbitrary, capricious or unreasonable manner, Airport Bill Sidetracked. ‘The Senate Committee decided to sidetrack the House airport bill, which authorized a commission to select a site and proceed to acquire it. Instead a Senate sub-committee will draft a new bill authorizing the President to name a committee to study the ques- tion further and submit a recom- mendation to Congress in January. The Commissioners would be repre- sented on the committee. This fol- lows the general thought of the House, but precludes the commission from going ahead to select a site without further action by Congress. Senator Tydings and McCarran, Democrats, of Nevada, will redraft the airport bill. Senator Tydings sug- gested that, if created, the proposed committee carry on confidentially its study of sites to avoid causing land prices to go up. When the Senate group met this morning the social security experts had ready a rewritten draft of the unemployment bill, showing some of the changes, but still calling for a tax payment by the District govern- ment, 26 weeks of benefit payments & year, and control of a Federal board. Committee Votes Changes. However, after Corporation Coun- sel Prettyman had repeated the ur- gent appeal of the Commissioners to amend these features, the committee voted to change them. Prettyman emphasized that no State has imposed a State unem- ployment tax on its taxpayers gen- erally, nor have any of them gone as high as 26 weeks of benefit pay- ments. Chairman King pointed out that the subject necessarily will be experi- mental in the United States for a few years, and Senator Tydings, Demo- crat, of Maryland, also pointed out that if it is found desirable to broaden the plan, it can be done by Congress later. SECURITY BILL BECOMES LAW. By the Assoclated Press. President Roosevelt called his aides around him today for a ceremony en- acting into law what he considers one of the most important measures passed during his administration— the social security legislation. The stroke of the pen attaching the presidential signature to the bill was the last formality needed to write ) matched by the States, for needy aged | not cared for under the contributory pension system. An appropriation of $49,750,000 for the current fiscal year is authorized for the purpose. | Among those mentioned as possible appointees to the new Social Security Board are Edwin A. Witte, secretary | of the President's Social Security | Commission, which drafted the meas- | ure: Jacob Billikopf, Philadelphia so- cial worker, and Miss Josephine Roche, Assistant Secretary of the Treasury. | Administration spokesmen estimate the unemployment insurance and old- age sections would apply to 25,000,000 | workers. | BAD PENNY PLUNGES WOMAN INTO POVERTY By the Associated Press. . NEW YORK, August 14.—Mrs. Mil- | dred E. Auerbach’'s bad penny started | it all. A month ago she dropped a flat- tened penny in a subway turnstile. Arrested, she was found to have had $700 in cash, some $5,000 in bank deposits. Yesterday she was fined $10 on the turnstile charges and found herself virtually penniléss, police said in tes- timony. They disclosed that a few days after her arrest her husband disap- peared after drawing money from the bank and sending her $1,000. But Federal operatives discovered that Auerbach and his family had received $1,200 aid from the United States Veterans’ Bureau and most of her money went to pay that sum back, police testified, s CONCERT TOMORROW The Pan-American Summer festi- val concert, under the auspices of the Community Center Department and the Office of National Capital Parks, will be held in the Sylvan Theater of the Monument grounds tomorrow at 8:15 p.m. Vocal solos by Senorita Rosalmira Colomo, Mexican contralto, and Mrs. Mildred Colvin, Washington soprano, are included in the program. The United States Army Band will play. A brief performance by the Marian Chace dancers and a pageant scene, “Glimpses of the Other Americas,” also are planned. AUTOMOBILE INSURANCE and_all !arm) of Insurance J. Blaise de Sibour & Co. INSURANCE BROKERS 1700 Eye St. N.W. Natl. 4633 If Your Dentist Hurts You Try DR. FIELD Plate Expert e I Guarantee a Perfect Tight Fit in Any Mouth iolet ‘Treatmen § G g g Tt Plates $15t0$35 - Golg Crowns Fillings, $1 up Plates Sl.w Repaired 4Up DR. FIELD 406 7th St. NW. Met. 9256 | these are members of the Senate Passage Held Sure. As debate on the measure started today, administration leaders felt confident its enactment would be ac- complished without undue delay and without any major changes being ef- fected on the floor. | One possibility is that of substi- tuting a schedule of inheritance levies | for the proposed increase in estate cess profit taxes unfair, the committee | taxes. The inheritance section, spe-| cifically requested by President Roose- velt, was included in the House bill, but was stricken out by the Senate| Finance Committee. Senator Harri-| son, however, has indicated that he may make an effort on the floor to have the provision restored. Meanwhile Senator Hastings of Dela- ware, a member of the Finance Com- mittee, charged that the bill had been rewritten at express dictation of the White House and that he was ready to wash his hands of it. “It is a Rosevelt measure and I| want him and the Democratic party to take and make the most of it,” he said. La Follette to Push Amendments. Senator La Follette, Progressive, of | Wisconsin has announced that he will offer his amendments for a lower in- come tax exemption and a full in- crease of surtax rates. Among the Democrats, it has been made” known, there exists a consider- able lack of approval of the legisla- tion, but most of them are expected to vote with administration leaders. Senator King of Utah already has | indicated that he may oppose passage of the measure when the vote s taken, however, and like action probably will come from a few conservative members of the majority. Senator George, Democrat, of Georgia yesterday re- ferred to the measure as “unsatisfac- tory and loosely drawn” and dis- satisfaction also has been voiced by Senator Gore of Oklahoma. Al of Finance Committee and their opposi- tion may attract some following. A note of defense for the pending measure was sounded yesterday after- noon by Senator McKellar, Democrat, of Tennessee, in ridiculing the charge Somewhere in | ent rate is 60 per cent. that the bill is an attempt to “share the wealth.” “Five-sixths of our ordinary Fed- eral taxes are put upon poor and rich alike,” he declared, “and surely the wealthy can bear their just proportion of the remaining one-sixth. We ought to pass without a word this tax bill which the President has sent us.” Senators Point Out Surtax Differences. In its analysis of the bill, the Sen- ate Committee report dealt first with the surtax schedule, submitting tables to show the difference between present law rates, those of the House bill and those of the Senate. The latter ver- sion starts to increase present rates at the $1,000,000 bracket, imposing a 60 per cent tax at that point and grad- uating it to 75 per cent over $10,000,- 000. The House bill started its in- crease at $50,000 and reached the 75 per cent maximum at $5,000,000. The committee also outlined its changes in the graduated corporation income tax provision. the Senate bill imposing. 122 per cent tax on income up to $15.000: 14 per cent up to $40.- 000; 15 per cent up to $100,000, and 15!, per cent above that figure. The House bill graduated between 13’5 and 14!, per cent. In both of these sections, the com- | mittee stated its belief that its ver- sion was closer to the wishes of the President. The report also explained its pro-| posed amendment to existing law by which intercompany dividends would be exempt from taxation only up to 85 per cent of their value rather than 100 | per cent. The taxable 1% per cent would be subject to regular corpora- | tion taxes, the effect being a tax of about 2 per cent on all income from intercompany dividends. Declaring the House schedule of ex- explained its reduction of that sched- ule to rates of 6 and 12 per cent in- stead of 5, 10, 15 and 20 per cent. The Senate rates would apply to profits in ex of 10 per cent of the adjusted declaréd value. To supplement this revenue, the committee explained, it has proposed an increase in the capital stock tax | from $1 to $1.50 per $1,000. Regarding its substitution of in- creased estate taxes for new inherit- ance taxes, the committee said: “While it is recognized that the in- heritance tax, in a number of respects, | is more equitable than the estate tax, | nevertheless the difficulties encoun- | tered in designing an inheritance tax, even reasonably free from serious ad- ministrative difficulties, are very nu- merous. Your committee feels, there- fore, that, in view of the short time available for the study of an inherit- ance tax, it is eager to accomplish the | same general purposes by an increase in estate tax rates.” Exemption Lowered. The new schedule would lower the exemption from $50,000 to $40,000 and bring the tax rate to 70 per cent for estates over $50,000,000. The pres- Gift taxes on donors are increased to three- quarters of the estate wdte in each bracket. “It 1s proposed,” the report con- tinued, “that the increased surtaxes shall take effect with taxable years beginning after December 31, 1935. This is the same effective date as recommended by the House bill in connection with this provision. The same is true in connection with the graduated income tax on corporations and with the reduced deduction al- lowed on domestic dividends received by corporations. The increased capital-stock tax Washington a well-paid secretary is going to lose her job, un- less she realizes that she's been making errors . . . taking time out due to head- aches . . . ONLY BECAUSE SHE HAS LET HERSELF SUFFER FROM EYE- STRAIN. We would like to save her eyesight, and her job, by prescribing the cor- rect eye glasses. ' Easy Terms! - 1004 F St. N.W. Oppesite Woodward & Lethrop POWER POLICIES HIT IN FILIBUSTER Forecast of 1936 Issue Is Made as House Acts on Conference Bill. By the Assoclated Press. New Deal power policies were projected as a 1936 campaign issue during a five-hour House Republican filibuster yesterday against holding the World Power Conference in the United States next year. ‘The bill finally was sent to the Sen- ate by a 234-to-92 vote. With the active help of Represen- tative Rogers, Republican, of Massa- chusetts, and Christianson, Republic- an, of Minnesota, Minority Leader Spell used every parliamentary wile to delay a final ballot on the com- paratively minor measure to authorize President Roosevelt to invite the con- ference here and supply $75,000 for expenses. “The only reason I can see for call- ing this conference,” said Snell, “is to bring together a bunch of long-haired Socialists, who advocate Government ownership of power companies. “That may be a campaign issue | next year and, if it is, we don't need | any help from a lot of foreigners to | help us settle it.” Chairman McReynolds of the For- eign Affairs Committee, who spon- sored the legistation, read a statement | from Secretary of State Hull that the | power conference was of a technical | nature. | During the filibuster, Republicans brought in the Rhode Island election, the Ohio congressional vacancy, Junkets and the action of the Massa- chusetts Legislature in criticizing “re- ligious persecution in Germany.” “It is only another junket,” said Christianson. “I remember when a junket meant only a trip to the State | Capital and now we are being asked | to send representatives all over Amer- | ica, Europe and Asia. The next thing we know we will be expected to finance junkets to the moon.” |~ Mrs. Rodgers, who directed the al- lotting of time to Republicans fight- ing the bill, remarked, “We do not want people coming here from foreign countries to try to teach us their so- cialistic doctrines.” FERRIS AND GIRLS PLAN APPEAL FROM VERDICT Life Terms Face Four as Jury Rules Guilt in Dickinson Slaying. By the Associated Press. DETROIT, August 14.—Possibility of appeal remained the only barrier today between Willlam Lee Ferris and his three “party girl" companions and life terms in prison for the slaying of Howard Carter Dickinson, New York attorney. Ferris and the three former bur- lesque dancers, Loretta and Florence Jackson and Jean Miller, face manda- tory life sentences under the verdict of a recorder's court jury returned yesterday. Judge John A. Boyne said he would sentence the four tomorrow. The jury’s recommendation for leniency in the case of the three women can- not affect the sentence, but he said it would be referred to the State | Parole Board. Defense counsel indicated they would consider an immediate appeal. Ferris, unmoved as the verdicts were read, said “we're going to appeal.” | THEATER MAN HELD KANSAS CITY, August 14 () — Emanuel Mano Glucksman, 39, former assistant general manager of the R. | K. O. Theater in Detroit, last night | waived extradition to Michigan on a check charge. Detroit police advised | Kansas City officers they would fly | here to return Glucksman today. Glucksman was named, police said, in a warrant involving a $100 check. He was arrested at a hotel here at re- quest of Detroit police. — takes effect for capital-stock-tax re- turns filed for the year ending June 30, 1936. The increased excess profits tax takes effect for income taxable years ending after June 30, 1936. “The increased estate tax rates are effective on estates of decedents dying after the date of enactment of this act. The increased gift tax rates ;pply w_guu made after December 1, 1935." We are “ready and willing” to make loans to those who make use of them. Recognizing that bank credit is as essential to the INDIVIDUAL as it is to industry, we invite requirements with us—we’ll do our best to assist you! If your working hours are so ar- ranged that it is not convenient for you to come to the bank we will be glad to mail an application to you; just write Film Star’s Attorneys Say Contract G Broken by Company. By the Associated Press. NEW YORK, August 14.—Myrna Loy, the freckle-faced and blue-eyed film actress, who became a star in a year, announced today she has abro- gated her contract with. Metro-Gold- wyn-Mayer. Her attorneys, charging the com- pany has broken the contract, served notice on the producers. The action followed several months of differences between the actress and the compaqy. “I deeply regret the step I have been forced to take,” Miss Loy said, “but there have been stories about my de- mands which are so absurd as to need denial. “The simple fact is that although my services have been continually available to Metro-Goldwyn-Mayer, they have refused payment of my salary and issued publicity to the effect that I was to be made a ‘test case.’ “There is cothing about my case which is a test of anything but the company’s sense of justice. The con- tract I was induced to sign held me for several years, although the com- pany could get out of it at almost any time. & “l was given the customary surances its conditions would be justed if I achieved stardom. I have | | also begged for stipulations such as| | the right to have an occasicnal holi- | day. The manner in which I have | ‘been handled finally led to & near| breakdown. | | " “I have done everything I could ¢o | seek the frequently promised adjust- | ments. ~ After 15 pictures in two years | —three times the normal number—I | felt the time had come for fair treat- | | ment, but I was passed from one ex- ecutive to another and got nowhere.” Added to this, Miss Loy said, “is the fact my salary has been stopped without any explanation whatever— apparently for punitive purposes, be- cause I have asked for what was promised.” Miss Loy’s attorneys maintain the | film company has forfeited any future | right to her services. The slim, auburn-haired actress, who came East from Hollywood last ! | Copyright, A. P. Wirephoto. iwr HOPKINS SEES END OF DOLE BY NOV. 1 Roosevelt Demands Speed in Drive as Meeting Asks New Allotment, Definite end of the dole by Novem- | ber 1 was assured by Harry L. Hopkins MYRNA LOY, ‘The film star, shown today after she announced she had abrogated her movie contract. She is shown as she strolled on Park avenue, apparently unworried about the future. May for her first visit to New York, is silent about the future. {120 Arrests Earn' il). C.Drinking Title \For Police Friend Man Who Is Big Help| Around Jail May Go Back There. AND WILLING Jeremiah Phillips set up a record of ! rather dubious merit yesterday when | he made his 120th appearance in Po- | | lice Court on charges of intoxication. | Despite his acknowledged good points, | | he was sentenced to pay a fine of $100 or serve 120 days (one day for each | previous arrest) by Judge Isaac R. Hitt. | Phillips started his career when he was first arrested February 9, 1923. | Since that time his sentences have steadily increased until yesterday, | when he “went over the top as cham- | pion of the city.” | | During bis long career Phillips has | proven he is honest and trustworthy, | at least when he is sober. | larly assiss officials handle other! | prisoners in the cell room at police | court and once. when the police court { van left from one of the precincts without him, he was given a car token and promptly arrived at court to be | locked up until his trial Scotch Police Turn to Radio. | Police of Scotland are establishing | | an intercity radio service, THE FIVE-BILLION- DOLLAR GOVERN- MENT LOBBY Philip H. Gadsden, Chairman of the Committee of Public U Executives, presents facts vitally affecting consumers and inves- tors in the electric and gas in- dustries of the Nation. An N. B. C. Broadcast (Red Network) | and affiliated groups Station WMAL | Tune n 6:30 to 6:45 P.M. (E. 8. T.) Wednesday, August 14th GET THE RECORD STRAIG can, constructively, you to discuss your or telephone—it will be mailed the same day your request is received. MoRRIS PLAN BANK Dhe Bk for 1408 H STREET 7 L X w PARALYSIS IS WANING, VIRGINIA OFFICIALS SAY Cite Figures to Show Decrease in New Casés Reported Recently. By the Associated Press. RICHMOND, Va., August 14.—State Health Department officials-today said figures bear out their contention that infantile paralysis is on the wane in Virginia. Eight new cases were reported to- day, but this compared with 11 last Wednesday and to a record of 23 on any one day. The aggregate of cases reported | since July 1 is 401, and since Au- gust 1, 155, Demonstrate Amber Extraction. The former premises of a wain- | wright's shop at the amber works in Palmnicken, on the western coast of the Samland district of East Prussia, have been turned into a practical mu- seum, where the processes of amber He regu- i extraction are demonstrated by models. | 5% | after President Roosevelt yesterday de- | manded more speed in the work relief | drive to put 3,500,000 men to work by that date. ‘The demand for haste was made at a meeting of the Advisory Committee on Allotments, at which allotment of an additional $103,080,077, including $16,000,000 for a new population cen- | sus, was recommended. | The new projects would be located | In 28 States and the District, the latter | to receive $435,000 for 10 projects. The President expressed..the fear that only 90 or 95 per cent of the goal will be reached on the deadline at the present rate of employment and sug- gested the possibility of greater cen- tralization of administration tc assure success. Field Agents Called. Mr. Roosevelt'’s demand for haste coincided with a three-day meeting of | Works Progress Administration fleld agents summoned by Hopkins for last- minute instructions in oiling up machinery of the agency, which is to spend $2,000,000,000 or more of the $4.800,000,000 works appropriation. In addition to the census allotment | recommended, the committee askes $43.209.305 for 2.356 W. P. A. projects $7.602,668 to the Works Progress Ad- ministration for 775 projects whose | locations were not a: | they were submitted by Hopkins at | the last minute and $24,677,882 for 77 Public Works Administration projects. as well as a number of smaller sums for other Federal agencies. Meanwhile, figures compiled here | showed relief was apportioned to per- sons on the District rolls on a more | generous basis during July than in | June, while the total number of re- | cipients declined nearly 1,000. Costs Are Mounting. Statistics compiled by the Public Assistance Division showed total costs | for all phases of the relief operation | here in July amounted to $977,373.06 | as compared with $835,178.19 in June, or an increase of $142,194.87 | The number of “open cases on hand” at the same time decreased from 18,298 in June to 17,393 in | July, a difference of 905. Not all open cases, however, receive actual relief disbursements. Those actually | receiving relief in June were reported to total 17,702, while the current re- port shows the corresponding figure for July to be 16,704. Officials recalled today there were heavy slashes in relief disbursements and in the number on relief in May and June. Some on relief “got along somehow” during these months, and when more generous allotments for relief came through for July, larger | sums could be granted individual | cases to take up the backlog of needs, | it was explained. Runs Away From Carnival. | SHARPSVILLE, Pa. (&) —Steve Ephriam, 15, didn't run away from home to join a carnival. He ran away y from the carnival his parents own, and to see the world Police found him two miles away. 'WE GUARANTEE SAVINGS UP TO F YOU BUY NOW! KASSAN-STEIN BUBGET PLAN 334.15 i 339.75 A reasonable deposit will hold your seleetion for later delivery. Ar range the balance n convenient weekly — semi-monthly — or monthly paymenis, after delivery of yewr germents. . @ Sale Begins on the 15th—Ends on the 3lot! @ Each Garment Personally Designed by Mr. Kasean! @ Fall Styles and Fabrics that are Fashion Newe! @ Order Now for Delivery Whenever You Desive! K assan-Stein CUSTOM-TAILORS - Every Gorment Toilored by UNION MEN in Owr Own Shops of 510 Eleventh St. N. W. NAt. 1871