Evening Star Newspaper, August 21, 1935, Page 5

- NEWCHETSLED MONEST OLTIS Deaths and Squabbles Are Blamed for Shifts Since 1932, By the Associated Press. CHICAGO, August 21.—New gen- erals and aides will direct the 1936 campaigns of the major parties in a large part of the “crucial” Midwest farm belt, a survey yesterday dis- closed. Death, intraparty squabbles and other causes have produced a series of shifts in leadership since the 1932 campalgn. Beven Midwestern States will go into the political wars of '36 under new inspiration. No changes in lead- ership have been reported in Minne- sota and Nebraska. Democratic leadership in Illinois remained unchanged, but a shake-up in the Republican party found Justus L. Johnson, Aurora, out as chairman of the Republican State Central Com- mittee. John Searing, Carbondale, was elected in, his place. Death Causes Vacancies. Death caused vacancies in the Republican National Committee in Indiana and Missouri. Arthur Cur- tis, Springfield, was named to fill the vecancy in Missouri occasioned by the death of Dr. E. B. Clements, Macon, veteran G. O. P. leader. ‘The Indiana vacancy caused by the death of Miss Dorothy Cunningham has not been filled. A factional fight loomed in Wis- consin in Republican renks as Ed- ward A. Bacon, treasurer of the State Central Committee, called upon the party leaders in that State to “get busy or get out.” He was answered by State Chairman. Cyrus L. Philipp, | & who suggested Bacon should devote | his time to raising funds instead of | eriticizing. | James Corcoran, Webster, was named chairman of the Democratic THE EVENING STAR, WASHINGTON, D. C., WEDNESDAY, AUGUST 21, 1935. Fatal Crash Mars Army War Maneuvers Wreckage of the plane in which Lieut. Robert Sherer of Olney, Ill, met his death last night when his plane crashed into a farm pasture near Black River, N. Y. State Committee @ Wisconsin, re- |f placing Joseph Martin, Green Bay | attorney, who was appointed to the State Supreme Court by Gov. A. G. Schmedeman. Poulson Succeeds Watson. Republican leadership in Ohio stay- ed in the hands which held it in 1932. A routine change in the Demo- | cratic committee chairmanship en-i sued with the nomination of Martin | L. Davey for Governor. Francis W. Poulson succeeded Dr. Carl Watson. Factional troubles beset Democratic | leaders in Michigan. State Chairman Elmer B. O'Hara was relieved of all duties and powers except to preside at committee sessions after an intra- party fight led by former Gov. Wil- liam A. Comstock. In Iowa E. H. Birmingham, Sioux | City, was chosen to succeed E. J. Fueling, New Hampton, as Dem- ocratic State chairman after the lat- ter had pleaded guilty to a charge of failing to report all campaign con- tributions. He was fined $1,000 and resigned, pleading a press of personal business. Lobby (Continued From Pirst Page.) and the long distance telephone con- versations he had with officials of the Associated in New York while here. The witness, however, did not recall certain conversations referred to by Black. . Winans Is Questioned. Hopson then was excused for a brief period, while the committee questioned { Winans about the Cities Service rec- | ords. Winans also was questioned about the expenses of his company's cam- paign against the Wheeler-Rayburn bill. He revealed then that $100,000 | had been spent by the top holding company. This did not involve, how- | ever, certain legal expenses, which in- | cluded $50,000 demanded by a New York law firm, $12,500 to Tumulty and Davis’' bill, which has not yet been submitted. The $50,000 legal bill, the witness declared, is now in protest. Winans testified that a major por- tion of the expenses were for printing arid mailing letters to stockholders throughout the country. Chairman Black asked him if that ‘was the letter which contained a pho- tostatic copy of a form showing how letters of protest against the bill should be written to members of Congress. Says He Never Saw Form. ‘Winans said he had never seen the photostatic form, nor did he know that filling station agents throughout the country had been supplied with form letters and telegrams which could be sent to members of Congress. Black gave Winans a copy of a let- ter purporting to contain instructions | to Cities Service employes how to pro- | W. B. S. WINANS, Controller of C.ties Service Co., shown today before the Senate Lobby Committee as he testified that the company spent $100,000 fichting the Wheelér - Rayburn utility bill. —A. P. Photo. had been of value, and remarked: “It seems to me you utility men are easy marks for this high-priced law racket.” Entire Cost $200,000. With the legal fees included, Winans explained, the entire cost of his com- pany'’s campaign against the bill would amount to $200,000. Winans was next asked if his com- pany had any representatives in Wash- | ington he had not previously men- | tioned. He then mentioned Wade | Ellis, Washington lawyer, who he said. had been on the Cities Service staff for 10 years, and the advertising —Copyright, A. P. Wirephoto. MHBK WAR IAK[S Prelude to Farewell Concert FIRST CASUALTY U. S. Air Reserve Officer Dies in Crash—Troopz Guard Bridges. By the Associated Press. PINE CAMP, N. Y, August 21.— The first casualty of the United States | Army’s mock warfare served as a grim reminder of actual war conditions to- | day as National‘Guard divisions from Northeastern States moved ito the | fleld to defend the bridgeheads of the | Indian and Black Rivers, key trans- | pcnmo‘: links of the Great North | country” i The casualty occurred last night as | Lieut. Robert Scherer, 25, of Olney, | I, Army Reserve pilot attached to the 97th Observation Squadron, plunged to his death a mile-and-a- half west of Five Corners. His me- chanic, Pvt. George White of Detroit, Mich., “bailed out” of the crippled plane and landed safely. Scherer was flying & two-seater | Curtiss observation plane, returning from a night bombardment mission, when his motor sputtered and failed above the 44th Division area near Calcium. White said later that as he rose in the rear cockpit to jump he saw Scherer standing in the front cockpit | | | “ ... and this place I musi Dr. Hans Kindler, conductor of the National Symphony Orchestra, checks over a score of one of the orchestra concludes its Summer series of Watergate concerts and bids fare- well to Washington until the Fall series begins in Constitution Hall. e t mark carefully.” numbers he will lead tonight as the —Star Staff Photo. New and Old Tax Rates By the Associated Press. A comparison of the proposed new tax rates with those in exist- eyt KINDLER PRAISES then saw the young officer turn his plane south into the wind, apparently in an effort to make a forced landing. firm of Thomas Shipp. Neither of these, he said, had been used in con- | nection with the company's fight against the bill. Shipp is paid $300 a month, he declared. | Winans was excused about 12:15 | pm. and told to return at 3 with the information wanted by the committee. Hopson was then recalled to the stand and questioned by Senator Schwellen- bach, Democrat, of Washington. Schwellenbach wanted to know if | he signed a check for the Interna- | tional Public Utility Investing Co. for $4,227,000 in September, 1929. “I may have, but I don't remem- ber,” Hopson replied. “You mean to say that if you signed | a check for that amount you would | forget about it?” said Schwellenbach. “I have signed a good many checks | as big as that,” he replied. Examined Five Times, Schwellenbach continued to press Hopson for details of the sale which | involved the $4,227,000 check. Hopson | suggested that the committee get the report of the Federal Trade Commis sion, which, he explained, had gonz | thoroughly into that detail. In fact, Hopson said, his company's | books in New York had been gone | over by the Internal Revenue Bureau, the Mack Investigating Committee and other investigating agencies, and ing laws: PROPOSED. Individual Income Surtaxes. Increases begin with 31 per cent on the income between $50,000- $56,000 and reach a maximum of 75 per cent on the income over $5,000,000. Present. 30 per cent on $50,000-$56,000; maximum 59 per cent on the in- come over $1,000,000. (To both of these must be added the “normal” 4 per cent applicable to all taxable income.) Estate 2 per cent on the first taxable $10,000, graduating up to 70 per cent on that over $50,000,000. Ex- emption, $40,000. Taxes. 1 per cent on the first $10,000, graduated upward to 60 per cent on that portion over $10,000,000. Exemption, $50,000. Gift Taxes. ‘Three-quarters of the taxes. estate Three-quarters of the estate taxes. Corporation Income. 1213 per cent on the first $2,000; 13 per cent on the income between $2,000-$15,000; 14 per cent on $15,000-$40,000, and 15 per cent on all over $40,000. Excess 6 per cent on profits between 10 and 15 per cent; 12 per cent on that part of profits over 15 per cent. Intercorpor: Corporations must include in their income for tax purposes 10 per cent of all dividends from an- other corporation. Capital $1.40 on each $1,000. 1334 per cent on all. Profits. 5 per cent on that portion of profits over 12!; per cent. Dividends. Corporations include »9 ‘nter- corporate diidends in > in- come. Stock. $1 on each $1,000. Personal Holding Companies. 20 per cent on undistributed net income up to $2,000; 30 per cent on the portion between $2,000-$100,- 000; 40 per cent on $100,000- $500,000; 50 per cent on $300,000- $1,000,000, and 60 per cent on all over $1,000,000. Taxes (Continued From First Page.) criticized the haste shown i fts | preparation, its inadequacy as a reve- nue measure and, particularly, its! provision imposing a graduated tax on corporation incomes. Minority Statement Stinging. ‘The minority statement of Senator Metcalf and Representatives Tread- way and Bachrach follows: “We have not signed the conference | report on the tax bill because we do not wish in any way to be a party to the final enactment of this legislative | absurdity. “It is not a revenue bill, as everybody knows it was never intended to be. The only reason it is before Congress is because the President asked for it, and the only reason it will be passed is because the President wants it| “No one can justify the bill. It is significant that neither the House Ways and Means Committee nor the Senate Finance Committee even at- tempted to do so in their respective | reports on the bill. “It has not been possible for the conferees to work out a good bill from either the House or Senate provisions. Their whole effort has been confined to salvaging as many of the President’s original suggestions as possible, frre- spective of merit, and at the same time they have kept in mind the fact that they must provide at least $250,- | principles of ability to pay.’ 30 per cent on income up to $100,000; 40 per cent on income over $100,000. simple expedient of eliminating some of the unnecessary, wasteful and ex- travagant expenditures now being made by the administration. “Perhaps the most objectionable fea- ture of the compromise bill is that providing for a graduated income tax on corporations ranging from 12 per cent to 15 per cent, in lieu of the present flat rate of 133 per cent. “This provision is in the bill merely 'to satisfy a whim of the President. It is unfair and unjust and violates the HAVOC TRAILS .TORNADO | Farm Buildings and Railways Damaged in Minnesota. ST. PAUL, Minn,, August 31 (®.— Farm buildings were wrecked, rail- road tracks washed out and crops ruined by a tornado and torrential rain in Minnesota yesterday. The tornado cut a quarter-mile swath south of Elrosa, demolishing farm buildings, leveling crops and de- stroying communication lines. No one ‘was injured. A six-inch rainfall and strong wind at Paynesville ruined cornfields and washed out the Soo line tracks. Sum- mer cottages st Lake Koronis were swept away by high water. North and South Dakota were drenched with heavy rain. 000,000 of revenue in order to keep the bill from being made any more re- diculous as a tax measure. Raises Money for 11 Days. Husband Poor Shot. CEDAR RAPIDS, Iowa (#).—Ar- thur Nichols, 51, demonstrated he was Maj. Gen. John J. Toffey, com- manding the 44th Division, ordered out a search party for the missing plane and pilot. They finally brought word that the plane had crashed on a farm northwest of Black River. It | was found that the straps of Scherer’s | parachute had caught on the under- carriage of the plane. He apparently | had tried to jump clear after White last saw him. Despite the tragedy, today’s activi- ties were moved on schedule. The units were the “Blue” and the “Red” | Armies, starting the development of tactical problems that will culminate | in movements of entire corps over the week end. R COMMANDER OF FLEET TO SEE NAVY AIR SHOW| Admiral Reeves fo Review Dem- onstration at San Diego Friday. 400 Ships Take Part. Four hundred naval airplanes will participate in a monster demonstration Fride# off San Diego, Calif., and will | be reviewed by the commander-in- chief of the United States fleet, Admiral Joseph M. Reeves | The Navy Department said the aerial parade will terminate the fleet ccn- centration period, the fleet arriving from San Francisco at San Diego PFriday. Reviewing the exposition with Admiral Reeves will be Vice Admiral Henry V. Butler, former commandant | of the Washington Navy Yard and now commander of aircraft of the Battle | Force; Rear Admiral Willlam T. Tar- rant, commandant of the Eleventh Naval District, and Capt. John H. Towers, commanding the Naval Air Station at San Diego. BOAT MISSING 2 DAYS | JACKSONVILLE, Fla, August 21| (#).—Coast Guard stations were on | the lookout today for the 58-foot | ketch Mischief, two days overdue at | Charleston, but. divisional headquar- | ters here said Coast Guard craft had not yet started a search for the vessel. At Miami, J. P. Bauder, city suverin- tendent of docks and yachts, said the | delay probably was due to-headwinds | encountered by the Mischief along the way. | He said Capt. Anderson, command- | ing the little vessel, probably could do no more than 100 miles a day. The boat left there for Charleston last ‘Wednesday. Records showed the Mischief Is owned by Clarence Moore of New | York, but he is not aboard her, Bau- | der said. | PERFOR | the Watergate series tonight. | lila” SYMPHONY SERIES for New Music Events, He Says. Dr. Hans Kindler invited the music critics and other reporters to the Arts Club yesterday afternoon, and there with much enthusiasm reviewed for them his National Symphony Or- chestra’s successful outdoor concert series. ‘Tanned and feeling fit for a Winter of vigorous enterprise as maestro of the Washington Symphony, Dr. Kind- ler returned recently from his vacation and will conduct the final concert in He was so encouraged by the reports of large, receptive and apparently ardent audi- | ences attendant on the concerts in his absence that he immediately con- cluded the local public is ready for all manner of musical adventures. Summer Opera First. ‘The first of these he believes should be Summer opera, presented in the same setting as the recent perform- ances on the banks of the Potomac, and sung principally by local people. He suggested that a large, double- width barge might be floated as a stage, with a smaller barge on a lower level attached as an orchestra pit. He would not schedule a program top-heavy with “Rigoletto,” “Aida” and the other standbys most peopie have heard innumerable times, but would opéh with “Samson and De- (which offers beautiful possi- bilities for tumbling half the scenery into the river in its finale) and con- tinue with “Figaro,” “Alceste” and works of that ilk. No final figures are available on the financial success of the Summer symphonies here, but the tremendous response from Washingtonians cer- | tainly is indicative of an acute interest in affairs musical, Dr. Kindler says. It seems probable that with a packed house this evening, weather per- mitting, the season also will conclude with the ledger in balance. Winter Series Interest. Dr. Kindler feels that one of the most satisfactory results of the out- " IF YOU SUFFER WITH Kidney Trouble You can restore kidneys fo normal ioning by following the health Drink mous H Sori y physicians for over 30 years. Phone for booklet. Mountain Valley Mineral Water Met. 1062. 1405 K St. N. UNIFORM MANCE IN ANY WEATHER | door concerts will be an increased -| interest in the Winter series at Con- stitution Hall, presaging a brighter future for the orchestra and for musical education in this city. | Once the National Symphony has established itself with a following that COMMITTEE KILLS SIROVICH MEASURE Bill for Omnibus Civil Service Reform System Is Dis- carded. The House Civil Service Committes yesterday killed the Sirovich bill, pro- viciag an omnibus civil service reform system. by voting nct to consider it. Extensive hearings had been held by a subcommittce headed by Repre- sentative Sirovich of New York, spon- sor of the measure. In order that Government employes might know the policy of the House Civil Service Committee in advance of their coming annual conventions, the committee directed Chairman Ramspeck to issue a statement in- forming the employe groups that as a policy the commitfee felt the omnibus method of dealing with Federal em- ploye legislation was not the best. The committee would prefer the employe groups to express their opin- fons separately cn the different subject matter contained in the omnibus reform bill. New Roads Constructed. Four hundred miles of new roads have been bullt in England since the World War. BT T T ,»«”;"" Refreshing Sleep . . Despite Summer Heat “As though a cloud of eider- down held you aloft, far from the ground.” That's how it feels to sleep on mattresses whose youth we have re- will fill the house every time it ap- | pears, as the Summer performances | did, the unit will be on the road to| | Capital Indicates Readiness the financial security guaranteeing a dequate personnel and other mate- rial advantages needed to place it in | to make more noise, but because five | | horns playing a passage, for example, can get the same volume and more quality than two horns straining to achieve the volume. Our men do miraculously well, handicaps, at present,” Dr. Kindler | says, “but they are capable of even | more if conditions are improved for | them. These are the material prob- } lems we must meet in order to produce | fine music.” RETIRED OFFICER DIES OCALA, Fla., August 21 (#).—Gen | Charles C. Jamieson, 79, retired Army officer, died early tod: i At the United States Military Acad- | emy, West Point, Gen. Jamieson wes a classmate of Gen. Charles P. Sum- | merall. He retired in 1919 with the rank of brigadier general. The body will Be sent to West Point for burial. | 4 | N ‘the gallery of the great. [l “We want more men, not in order | ' considering the . ’ OTHING Cj ‘ s THAN THE stored. Charming new ticking of your selection is used. The inside is sterilized—cleaned— made buoyant. The cost i only $5 and up. A mattres old at sunrise, is new before sunset. All work guaranteed. BOX SPRINGS AND PILLOWS RENOVATED. 726 11th St. N.W, National 9411 Beds . . . Mattresses . N FAQE TWA is fastest and shortest coast to coast Only 4 and 3 hours to Chicago! Daylight or overnight to Califor- nia; ‘5 hours 20 mi Louis. Frequent, co partures; nutes to St. nvenient de- giant Douglas Sky- liners on all TWA flights. | ey st TRANSCONTINENTAL orranr & WESTERN AIR, Before You Re-roof Get Our or Re-side Estimate EYCONDIIGNED] “The revenue to be raised would pay | not a crack shot. test against the bill. “In writing,” said one phrase in the letter of instructions, “don’t use com- pany stationery.” Black next gave Winans copies of & number of the form letters, drawn up, to be sent to members of Con- gress, and asked him to read them aloud. One of these letters declared en- actment of the bill would ruin every utility investment in the country. Black asked him if he thought that statement was true. “I believe it is too broad a state- ment,” he replied. Salesman Directed Work. Black then asked Winans who di- rected the Cities Service campaign against the bill He said the work ‘was assigned to Hugh Davis, one of the company's oil salesmen. Davis stopped his activities with the campaign several months ago, ‘Winans said, and returned to his witness, was paid $500 a month. Cities Service Preferred Phone. Black developed in his continued questioning of Winans that Cities Service had adopted the policy of not wril letters or sending telegrams in its fight against the bill, but instead, used the long-distance telephone. | ‘Winans later placed the imcome of the entire Cities Service system last year at $173,000,000. Of that amount, a service charge of $2,000,000, he said, went to the holding company. Biack asked Winans if Cities owned any newspapers. He said Héuty L. Doherty, its president, had ;meen in the Kansas City Jour- -Post. Benator Gibson, Republican, of Ver- mont, took up the questioning of Win- ans,_pointing out that the lawyers’ Tees of the company thus far totaled $99,000, not including the bill of John W, Davis, which has not been received. Gibson inquired if these lawyers " L3 his income tax returns were undergo- ing their fifth examination. “So we know all about investiga- tions,” he remarked. | Chairman Black announced at the close of the hearing that an effort would be made to summon Robinson to appear before the committee when it resumes its hearing tomorrow at 10 am. ‘The committee was told by Hopson's legal staft that Robinson was stopping at the Shoreham Hotel. Hopson, how- ever, said he did not know Robinson’s whereabouts. Peasants Must Use Beds. To reduce the high death rate from rhelimatic troubles in the Province of Dragoslav Georgovich of Yugoslavia, public health authorities have ordered all the peasants to buy beds. The peasants from time immemorial have slept on the floors of their cottages. 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