Evening Star Newspaper, March 3, 1936, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair with lowest temperature about 38 degrees tonight; tomorrow cloudy and warmer, followed by rain and colder at night. Temperatures—Highest, 41, at noon today; lowest, 34, at 7 a.m. today. Full report on page A-11. Closing New York Markets, Page 18 No. 33,544. Entered as second class matter post ofice, Washington, D. ¢ Foenin WITH SUNDAY MORNING EDITION ) The only evening in Washington wit aper the Associated Press News and Wirephoto Services. q Star WASHINGTON, D. C., TUESDAY, MARCH 3, 1936—THIRTY-SIX PAGES. *#%#% (#) Means Associated Press. Circulatiop Over 140,000 TWO CENTS. HIGHER COR LUMP SUM CUT TO $2,700,000 IN D. C. SUPPLY BILL LEAGUE APPEALS| FOR PEACE, GIVING TWO BELLIGERENTS Reduction From $5,700,000 Brings U. S. Contribution to Lowest Figure. WELFARE AND PUBLIC HEALTH ACTIVITIES SUFFER SLASHES $1,600,000 Allowed for Addition to Eastern High—Cash Provided for Tuberculosis Hospital. BY JAMES E. CHINN. The 1937 District supply bill was reported to the House today. It carries recommendations for appropriations totaling $42,573.283 and fixes the Federal obligation toward the expenses of the National Capital at $2,700,000, the low- est in history. ‘When informed of the action of the committee the District Commissioners called-a special meeting for this afternoon. ‘While ruthlessly slashing the Federal obligation from $5,700,000, the Ap- propriations Committee added new items totaling $1,603,000 to provide an addition to Eastern High School, construction of a new Police Court Building &nd replacement of the superstructure of Chain Bridge. The appropriation for the new courts building is $1,000,000, with the limit of cost fixed at $1,500,000. A total of $250,000 is allowed for replacement of the Shain Bridge superstructure and $353,000 for the Eastern High School addition. The limit of cost of the Chain Bridge replacement is set at $350,000. Total Appropriations Greater. Altogether, the bill carries appropriations of $908,283 in excess of the budget estimates, which totaled $41,665,000, exclusive of permanent and in- definite appropriations of $1,435,000. which made a grand total of $43,100,000. Excluding the permanent and indefinite appropriations. the committee re- ported that the appropriations recommended for 1937 are $1,650,210 greater than the amount provided for the current fiscal year. As anticipated, the committee wrote into the bill a provision aimed directly | at physicians who work for the Dis- | trict Health Department on a part- | time basis. It reads: “No part of the funds appropriated in this act £hall be available for the payment of the salary of any officer or employe Blanton Attempts To Link Ballou to Report of ‘Radicals’ of the District of Columbia whose | salary as such officer or employe is | $2,400 or more per annum who is en- gaged in any outside business or pro- fession in addition to his official du- ties.” A hasty survey at the District Build- ing this afternoon indicated this pro- vision, if enacted, would force many other employes and officials to give up outside jobs. They would have but two alternatives, either to work with- out drawing their pay or to quit the | District service. | Chairman Blanton of the Subcom- | mittee on Appropriations, which| framed the bill, recently criticized | the doctors who work for the District | on a part-time basis, and engage in | private practice. The attack followed | Blanton's clash with a group of physi- | cians at a mass meeting in the Cen- tral High School Auditorium, at which | the need for increased funds for | the Health Department was stressed. | Drastic slashes were made by the | committee in the estimates for various | welfare and public health activities. The recommended appropriation for the Health Department was cut $23.800 under the budget estimates, and the funds for public welfare were reduced $248,035 under the budget estimates. Hospital Allowed For. Funds are provided, however, for operation of the Tuberculosis Hospital at Fourteenth and Upshur streets until January 1, 1937, but the committee eliminated an item of $78,000 for con- tinuation of character education in the public schools. The excuse given by the committee for reducing the Federal obligation by $3,000,000 was that despite the cut tax- payers would pay less in the District than in other cities of comparable size. In this connection, the committee said: “With the existing low tax rate of only $1.50 per $100 upon a decreased assessment value. With a gasoline tax of only 2 cents on the gallon. With an annual registration and license tag of only $1 on each car and truck regard- less of make or value. With a low water charge of only $6.60 per year per average family. With all libraries and family wearing apparel, regard- Jess of value, exempt from taxes. With | each family allowed an exemption of $1,000 of household furniture. With all trees in front of residences furnish- ed. sprayed, pruned and replaced without charge therefor. With no income tax, no estate tax, no gift tax, no inheritance tax, no sales tax, no special school tax. With a tax of only one-half of 1 per cent on intangibles. ‘With many millions of dollars of in- tangibles in lock boxes not now reached upon which no tax is paid until wills are filed after death dis- closing same. With no charge for sewer service after once installed. ‘With no charge on abutting property owners for repaving streets and side- walks in front of their property and many othe. advantages enjoyed by cit- izens of the District of Columbia, by reason of Government institutions being maintained in Washington, which the citizens of the States do ot possess, the subcommittee having this bill in charge was unanimous in recommending the reduction of the snnual Federal contribution.” Taxes Here Held Lower. “The Federal contribution for the fiscal year 1936 amounted to $5,700,000. ‘The sum recommended in the bill is $2,700,000. ““The admitted evidence of the Dis- trict Commissioners before the com- mittee has convinced it that the local residents of the District of Columbia, under the provisions of this bill, will of schools, was accused by Chairman Blanton of the District Appropriations Subcommittee of refusing to sign a report of the Commission on Social Studies in 1933 simply to prevent be- ing removed from office, it was re- vealed today when the record of the appropriations hearings was made public. In more than 100 pages of testimony, Blanton repeatedly attempted to link | Dr. Ballou to Dr. George S. Counts and Dr. Charles A. Beard, so-called radical members of the commission. Dr. Ballou, secretary of the commis- sion, was one of four membérs who de- clined to sign the report. Blanton also attempted to attach significance to the fact the commis- sion had a five-year plan and that an earlier committee on the public schools here to make a study of char- acter education through a study of social sciences also was created for five years. Johnson Joins Blanton. Blanton was joined by Representa- tive Johnson of West Virginia in quizzing the superintendent on why no minority report was made by the four dissenting members instead of merely declining to sign it. The record shows, after Ballou said no statement was prepared at the time, the following: Blanton—You knew that if you ever signed this report along with Counts and Beard and subscribed to the state- ments that they put down in black (See BALLOU, Page 3.) _— POLICE HUNT ‘INTRUDER’ AS HE SLEEPS NEARBY Resident of Club Admits Break- ing Glass to Get in and Goes Back to Bed. The prospect of a burglar being loose in the house early today dis- turbed the usual quiet of the Southern Club, 1701 Massachusetts avenue. . All the twoscore residents were aroused except John A. Cooney, 26, who was too sleepy to be bothered, while police searched for an intruder. ‘The officers were summoned by H. N. Clark after he discovered a heavy glass in the front door had been smashed above the door knob. After searching the house and find- ing no burglar, police were informed Cooney had admitted breaking the glass. Unable to get in when he arrived at the club, Cooney shoved his fist through the door, reached in and turned the knob and then went to bed. Dr. Frank W. Ballou, superintendent | WEEK T0 ANSWER| ! Will Proceed With Discus- sion of Further Sanctions After March 10, Italy and Ethiopia Are Warned. DUCE IS HELD READY TO CONSIDER PROPOSAL Offer Must Take Into Account Its Armies Have Crushed Selas- sie’s, Rome Says—French Lead in Fight to Effect Concilia- tion. (Copyright. 1936. by the Associated Press.) GENEVA, March 3.—The League of Nations' “Committee of 13,” repre- senting every member of the council except Italy, decided today to appeal !gave the two nations one week in which to reply. The date was fixed specifically as March 10, at which time the com- mittee will meet again, The members agreed unanimously on the text of the peace appeal, Its draft was discussed earlier in the day by Anthony Eden, British foreign secretary, and Pierre-Etienne Flandin, the French foreign minister. Sanctions Experts to Meet. The “Committee of 18.” intrusted with the application of sanctions, now will suspend its sittings until the re- plies come in from Rome and Addis Ababa. group of sanctions experts will 5it von- | stantly for an uninterrupted study of | details on the possible application of further sanctions, including an oil em- bargo against Italy. ‘The text of the appeal follows: “The Committee of 13, acting under | the mandate which the Council in- trusted to it by its resolution of De- cember 19, addresses a pressing ap- peal to the two belligerents toward the immediate opening of negotiations | within the framework of the League | of Nations and the spirit of the cove- nant, with a view to the prompt cessa- | tion of hostilities and the definite re- establishment of peace. “The Committee of 13 will meet March 10 to take note of the replies of the two governments.” League officials, meanwhile, pre- pared the text of a resolution for imposition of an oil sanction upon Italy in the event that the peace move failed. The resolution affected both sale of oil to Italy and trans- portation by tankers of oil to Italy. Duce Seen Receptive. Informed Italian sources said Pre- mier Mussolini was prepared to weigh carefully the peace offer, despite the threat of oil sanctions, as the League's conciliation efforts embarked on their most critical phase of the entire dis- pute. The peace offer, however, must take into account the actual military sit- uation and recognize the Italian claim (See LEAGUE, Page 3.) — “DIRIGIBLE-AIRPLANE” CRAFT ASKED IN BILL Dingell Advocates Building New Combination Ship for Army. Cost Set at $1,500,000. By the Associated Press. A combination dirigible and airplane designed for long-range scouting and bombing duty was sought for the Army Air Corps today in a bill prepared by Representative John D. Dingell, Demo- crat, of Maryland. The bill would authorize a $1,500,000 appropriation to enable the Secretary of War to build the craft on designs Dingell said were submitted by George 'W. Hardin of Tennessee and approved by Dr. Alexander Klemin of the Guggenheim School of Areonautics and Ralph H. Upson of Ann Arbor, Mich., designer of * the Navy's “tin blimp ” Dingell described it as a “detachable- composite-aircraft capable of trans- Atlantic service.” Assassin Attempt Fails. HAVANA, March 3 (#.—Four assassins failed today in an effort to kill Nocolas Castano, wealthy business man and former kidnap victim. New York Strike Violence Flares Anew as Settlement Is Sought By the Associated Press. * NEW YORK, March 3.—Fresh out- bursts of violence flared today in the building workers’ strike as roving bands of strikers sought recruits to the walkout and visited buildings in which their jobs had been taken over by replacement workers. The clashes, following a night in which more than 300 cases of dis- order were reported to police, contin- ued even as representatives of the Building Service Employes’ Union and | ing. spokesmen for realty owners tried to thresh out their differences in a con- ference at Mayor La Guardia's cham- pay less taxes on their property, re- % spectively, than the people elsewhere (See SUPPLY BILL, Page 5.), N bers. In the presence of a special guard undeixhtmmnumymk:d b Sol Drinaututi, 23, from an elevator in a 16-story building at 352 Fourth avenue and beat him. Drinautut! was a replacement worker. Ly Police forces were further augmented to cope with the situation. “Flying squadrons” of strikers vis- ited the Wall street section, but their efforts at impressing workers met with little success. They hurled taunts at employes of the New York Stock Exchange Build- “Don’t be yellow! strike!” they shouted. Despite the geographical extent of the strike, New Yorkers were not se- riously inconvenienced in getting to (Ses STRIKE, Page A:3), Come out on to Italy and Ethiopia for peace and | However, on the motion of Eden, a | KANSAS SECURITY == ! = - \y it unulul'”ufl ‘ | = OF THE Sy JiM, A NUMBER BoY THINK THIS WOULD BE MORE FITTING! S PLAN THROWN OUT Security Board Says It Does Not Meet Rules for Federal Help. By th: Associated Press. The Social Security Board advised | Kansas today that the State’s plans for old-age assistance, aid for de- pendent children and aid for the blind | did not meet requirements for Federal | help. John G. Winant, board chairman, | made known the ruling in a letter to | John G. Stutz, executive director of | the Kansas Emergency Relief Com- mittee. Among other objections to the Kansas plan, Winant said an executive | order by Gov. Alf M. Landon “does not | give supervisory powers to the Kansas | Emergency Relief Committee with re- spect to funds supplied by counties.” ‘Winant's letter said, in part: “The plans submitted by you are not | in accordance with the provisions of | the social security act designed to | encourage the establishment on a State-wide basis, and not on a county- option basis, of new forms of public assistance, usually called ‘pensions.’ to supplant, so far as possible, the older types of poor relief. Counties Could Refuse. “These conclusions are based upon the information you furnished the board. You stated very frankly that a county would have the right to de- cline to participate in the State plan and instead elect to furnish public assistance to all needy individuals, in- cluding the aged, dependent children and the blind, in the form of grocery orders, supplies and other necessaries, rather than in the form of money payments, “You also stated that the execu- tive order of the Governor dated De- cember 20, 1935, does not give su- pervisory powers to the Kansas Emergency Relief Committee with re- sipect to funds supplied by the coun- ties. “Since the plans as submitted pro- vide that the funds for granting as- sistance and which could be used for matching Federal funds will have to be supplied by the counties, it | follows that the executive order does not give the Kansas Emergency Re- lief Committee supervisory powers with respect to a very: substantial part of the State program.” Emphasizes Three Sections. Winant emphasized three sections of the social security act with which, he said, the Kansas plans did not comply: “(1) That a State plan shall ‘pro- vide that it shall be in effect in all Ppolitical subdivisions of the State, and, if administered by them, be man- datory upon them.’ “(2) That assistance to the aged, aid to dependent children, and aid to the blind shall consist of money payments. “(3) That there shall be a single State agency to supervise the admin- istration of the plan.” Smoker Burned While Sleeping. Falling asleep while smoking . cig- arette, Cornelius Smith, 42, of 3117 Hiatt place was badly burned last PORATION TAX ASKED @ ROOSEVELT AIMS AT FULL REFORM IN LEVY SYSTEM Message Urges Substitution of Undistributed Profit Assess- ment for Present Law. $1,614,000,000 ANNUAL INCOME EXPECTED FROM THIS SOURCE New Processing Charges, Broader and Thinner Than Before, Also Are Requested of Congress. By the Associated Press. $1,614,000,000 annually. Sweeping tax law changes, including-imposition of a tax on undistributed corporation profits and repeal of the present graduated corporation income tax were recommended to Congress today by President Roosevelt. He estimated the tax on undistributed corporation profits would vield In a momentous message recommending a thorough revision of the national tax system, the President also proposed: Father of Six, Seeking Doctor, Jailed on False Alarm Charge Unable to Furnish $500 Bond, He Is Commiitted Pending Motion for New Trial on Saturday. Stephen Russell, 37, a laborer, was | morning, he pleaded guilty. The convicted of turning in a false alarm | judge, however, decided not to accept by Judge Isaac R. Hitt in Police Court | this plea and appointed Attorney John today. because, according to prosecu- | McGinnis to represent Russell, the tion testimony, he pulled an alarm box = plea being changed to not guilty. in an effort to summon either a doctor | _ Assistant Corporation Counsel John or policeman. | O'Dea called as his first witness Edgar Unable to furnish a $500 bond, Rus- | Robbins, a colored truck driver. Rob- sell, father of six children, was com- | bins testified he saw Russell pull the mitted to jail until Saturday, when a | alarm and questioned him when he did motion for a new trial will be argued | not see any sign of a fire. Russell, he Processing taxes spread broader and thinner than the old levies outlawed by the Supreme Court. A “windfall” tax to recover a considerable part of the old processing taxes which were returned to the taxpayers or on which they refused payment. Repeal of the existing capital stock tax which was estimated to yield $163,000,000 in the fiscal year 1937. Repeal of Corporation Excess Profits Tax. | Repeal of the corporation excess profits tax which was estimated to | yield $5,000,000 in 1937. Repeal of the exemption of dividends from the normal tax on individual incomes. The graduated corporation income tax which the President proposed to repeal was estimated to yield $826,000,000 in the fiscal year 1937. Treasury experts were understood to estimate that the proposed new levy on undistributed corporation profits would not only replace the $994.600.C00 taxes which would be repealed, but would provide an additional revenue of $620,000,000 on 1936 corporation incomes, The President told Congress invalidation of the progessing taxes left a deficit in the budget of $1,017,000,000, and that the cash bonus bill would | add an annual charge of $120,000,000 a year. “We are called. upon, therefore,” he said, “to raise by some form of permanent taxation an annual amount of $620,000,000. It may be said, truthfully and correctly, that $500,000,000 of this amount represents substi= tute taxes in place of the old processing taxes, and that only $120,000,000 represents new taxes not hitherto levied.” and sentence imposed. Waldon Whitehead and Adam Wyant, jr., students, were given sus- pended sentences recently by Judge Hitt after they had pleaded guilty to turning in seven false alarms. Twenty- | two other charges against them were dropped by the corporation counsel. Russell, who lives at 2024 Higdon road northeast, turned in the alarm about 9:30 o'clock last night from a box near Fourth and N streets south- | west. Brought before Judge Hitt this said, told him he was “looking for & doctor.” { The only other witness was Police- | man G. M. Wilson, fourth precinct, | who arrested Russell and charged him with turning in a false alarm. | He said Russell told him some one | “had been hurt in a house” and that he was trying to get a doctor. Russell, it was said, didn't tell him where the | house was. 1 No witnesses were called for the de- fense and the case was submitted on " (Sce FALSE ALARM, Page 2.) ENGLAND SPEEDS VAST REARMING Industry Mobilization in Crisis Anticipated in New Program. BACKGROUND— Surrounded by continent full of major powers whose principal en- ergies for many months have been devoted to increasing armaments, Britain recently took under con- sideration defense program of $1,500,000,000. To make such increased power most effective, proposal has been made for creation of ministry of defense, thus linking army, navy and air corps; also, creation of de- fense council in which dominions and colonies would have represen- tation. (Copyrieht mmmnssocuud Press.) LONDON, March 3.—Great Britain's government announced today a vast immediate expansion of its army, navy and air forces and industrial mobiliza- tion for instant readiness in case of ‘War. A white paper, or government report, said the rearmament and increased national defenses were made necessary by complications of the international situation, combined with a “deplorable and undeniable” worldwide expansion of armaments. ‘The United States, Germany, Bel- gium, France, Italy and Soviet Russia were listed as having embarked already on similar plans. ‘War Dangers Cited. Citing “dangers of war” and pro- claiming a necessity for means of de- fense against aggression and enforce- ment of collective security, the white paper disclosed: “A fresh examination of the posi- night when his clothing caught fire. Readers’ Guide tion, made last Summer and Autumn, led to the conclusion that it was neces- sary to make further changes in the Royal Air Force and speed up measures contemplated -for modernization of the army and navy, to provide as rapidly as possible necessary reserves of stores of ammunition and equipment and -A-11 Washington Wayside. Women'’s Features organize industrial resources of the country in such a way as to allow im- (See LONDON, Page 4.) Fairbanks May Wed. HOLLYWOOD, Calif., March 3 (). —Rumors of an impending marriage for Douglas Fairbanks and Lady Syl- via Ashley revived in Hollywood today, but Mrs. Robert Fairbanks, his sis- ter-in-law, said neither she nor her husband had been informed of such & POWER €0, STOCK INLATED 60 PCT. | | Probers Told Huge Write-up by Alabama Was for Rate-Making. BY REX COLLIER. The Alabama Power Co. inflated its | capitalization 60 per cent for rate- | making purposes by “capitalizing | hopes and anticipated profits, instead of actual physical properties,” the Senate Lobby Committee brought out today, as it opened a new line of inquiry into activities of the power industry. Testimony to this effect was ob- | tained by the committee from Victor | A. Dorsey, Chicago appraiser of pub- lic utility properties. The Alabama company is a subsigiary of Common- wealth & Southern. Preferred stock- holders of the Alabama company filed the recent T. V. A. suit in the Su- preme Coutt. Typical of Industry. Chairman Black pointed out that the Alabama concern’s 60 per cent “write-up” of its capitalization 1is typical of the power industry. Dor- sey agreed. Black drew from the witness that the people of Alabama have been paying since 1920 on an $8,000,000 “write-up” of the rate base. Dorsey said his study of the value of the company’s properties in 1920 Roosevelt Text Congrees Message Urges Sweeping Revision of Tax System. HE text of the President’s message follows: To the Congress of the United States: On January 3, 1936, in my an- nual budget message to the Con- gress, I pointed out that without the item for relief the budget was in balance. Since that time an important item of revenue has been eliminated through a deci- sion of the Supreme Court, and an additional annual charge has been placed on the Treasury through the enactment of the adjusted compensation payment act. I said in my budget message: “s * * the many legislative acts creating the machinery for recov- ery were all predicated on two in- terdependent beliefs. First, the measures would immediately cause & great increase in the annual ex- penditures of the Government— many of these expenditures, how- ever, in the form of loans which would ultimately return to the Treasury. Second, as a result of the simultaneous attack on the many fronts I have indicated, the receipts of the Government would rise definitely and sharply dur- ing the following few years, while greatly increased expenditure for the purposes stated, coupled with rising values and the stopping of losses would, over a period of years, diminish the need for work relief and thereby reduce Federal ex- penditures. The increase in rev- enues would ultimately meet and pass the declining cost of relief. “This policy adopted in the Spring of 1933 has been confirmed in actual practice by the Treasury figures of 1934, of 1935, and by the estimates for the fiscal years of 1936 and 1937. Ne Doubt of Soundness Of Policy of 1933. “There is today no doubt of the fundamental soundness of the pol- icy of 1933. If we proceed along the path we have followed ant (See LOBBY, Page A-6.) —— i The Noon Edition o going- to press before 1 The sale of the new now firmly established, newsstands, city-wide. If you are not able please advise the Circu tional 5000. 'zcnmm STREAK 2c :3 . Noon Edition r‘ newspaper in- Washington containing the day report and news wirephotos of the Associated Press with all of the news up to the minute of f The Star is the only '| 2 o'clock. i BLUE STREAK edition is | through newsboys and - | to get a copy promptly, lation Department, Na- ? Revenue Increase Seen. Quoting from his budget message | statement that “the increase in reve | enues would ultimately meet and pass | the declining cost of relief.” Mr. Roose= | velt said: | “If we are to maintain this clear- | cut and sound policy, it is incumbent upon us to make good to the Federal | Treasury both the loss of revenue caused by the Supreme Court decision and the increase in expenses caused by the adjusted compensation pay- ment act. “I emphasize that adherence to cone sistent policy calls for such action.” The Chief Executive said he was | leaving “to the discretion of Con- gress” the formulation of appropriate | taxes. But he invited the attention | of Congress to “a form of tex which would accomplish an important tax | reform, remove two major inequalities in our tax system and stop ‘leaks’ in present surtaxes.” Graduated Levy Proposed. Mr. Roosevelt then proposed the ‘ax on undistributed corporate incomes “graduated and so fixed as to yield ap~ proximately the same revenue as would be yielded if corporate profits were distributed and taxed in the hands of stockholders.” The President did not mention a specific rate, but said the Treasury ]wonld submit estimates by which the desired yield could be realized. It (See TAXES, Page 2.) RELATIVES CONTEST MRS. NEIMAN'S WILL Fred Wahl of Capital Among Those Filing Suit in Milwaukee. By the Associated Press. MILWAUKEE, March 3.—Three relatives of Mrs. Agnes Wahl Nieman, widow of Lucius W. Nieman, founder of the Milwaukee Journal, started yesterday a contest of her will leaving the bulk of her several million dollar estate to Harvard University. The ‘case, filed by Fred Wahl, Wash- ington, D. C., and Robert Wahl, Chi~ cago, uncles of Mrs. Nieman, and Paula Wahl Pierce, Chicago, an aunt, in- volves approximately one-half of the estate of the late newspaper proprietor in addition to the rest of Mrs. Niel= man’s estate. The relatives, in the suit filed in Probate Court, claimed the will was procured by “undue influence” five days before her death on February 5, and contended Mrs. Nieman “was not of sound mind and had not sufficient mental capacity.” Harvard University was exonerated in the complaint “from all responsi- bility for, knowledge of or participa- tion in, by authorizéd reprresentatives or otherwise, of any acts of undue in- fluence.” Mrs. Nieman's estate, the contest showed, was believed to have been in excess of $8,000,000. Under the terms of the will of her husband, who died last Autumn, she received half of his residuary estate, including half the from the projected sale of his majority stock in the Journal com= pany. The stock, now held in trust, was ordered sold in his will as soon as practicable after Mrs. Nieman's death. The income of the estate was left to Harvard “to promote and elevate the standards of journalism in the United States and educate persong P airbafiks left suddealy for England deemed especially qualified for jour- nalism.”