Evening Star Newspaper, March 3, 1936, Page 2

FAGOOD QUARREL MAY SPUR REFORM Broceedure Change Could Free Officers’ Tongues, Yet Temper Resilt. BY DAVID LAWRENCE. out of the controversy over Gen- Higood's testimony comes a con- structive solution of the problem of getting the truth about conditions in the Army without stepping on the toes of Army bureaucrats bent on conceal-{ ing said truth, then maybe the fuss made over the present episode will not have been entirely futile. For it is just sych a turn of events that may be looked for. First of all, there seems little doubt that the en- tire affair originated in the War De- partment and that the responsibility for what has happened is very largely to be placed on the War Department. In fairness to President Roosevelt, it ought to be stated that nowhere is there any proof of the charge made that he started the controversy out of resentment over Gen. Hagood's comments. Mr. Roosevelt, of course, approved the War Department action which recommended disciplinary action, but it is a safe assumption that he did not know all the facts when he acted, for the simple reason that all the data on the case have been dribbling out-of Capitol Hill in pieces and only now can a coherent synopsis of the case be made. Correction Not Forthcoming. It appears that Gen. Hagood testi- fied’ before the House Subcommittee on.Appropriations on December 17 of 1gst, year. About December 30 he reeeived and replied to a letter from Refresentative Parks asking him to correct his testimony. He did not do 0. This was mistake No, 1 for Gen. _Hagood. Then early in February Gen. Ha- pood learned that his superior officers in the War Department were dis- ,pleased with what he had said and he promptly wired to the House com- inittee and asked that his testimony _be eliminated. This was the correct course. " But the message was dated February 2, by which time several copies of the printed hearings had gotten out. The | House subcommittee declined to stop the rest of the distribution. This was a mistake on the part of the House subcommittee. | About February 10 the newpapers | Yearned of the testimony and the War | Department undoubtedly heard from the W. P. A. concerning it. Then came the recommendation by Gen. Craig, chief of staff of the United States Army, that Gen. Hagood be disciplined. The Secretary of War and the President approved the rec- ommendation. Stirs Up Protests. Since then members of the House, | led by Representative Blanton of | !iaPexas, and members of the Senate, in- fieluding Senators Byrnes and Smith wof South Carolina, have been writing | ‘the President arffi the War Depart- | ment pointing out that Gen. Hagood | was treated unfairly. Indeed, the statement has been made that the tes- timony of the House committee was altered by members of the committee, or that some of the members’ ques- ns were suppressed so that the . hrinted hearings gave an impression 1%hat Gen. Hagood, on his own initia- , said some of the critical things which he said only in response to per- sistent questions by the committee. From the foregoing it would seem that the members of the House sub- committee have done Gen. Hagood an injustice. This aspect is being brought to the attention of President Roose- velt and it would not be surprising to find the President, after further inquiry, reversing the. whole business and restoring Gen. Hagood to his command. To do this might seem to reflect on Gen. Craig, who acted, of course, on the facts as submitted to him. - Cure Possible. How can such episodes be prevent- ed? It would seem possible for the ‘War Department to have a rule that all testimony furnished by members of the staff to congressional commit- tees should be sent in duplicate to the witnesses and to the War Depart- ment for perusal. If any testimony violates Army regulations, the respon- sibility for censoring it would be clearly where it belongs—on the War Department itself. Otherwise - in- stances will occur wherein an Army officer tries to satisfy the require- ments of a legislative committee but finds himself punished for doing his duty before another branch of the Government. If members of Congress object to the limitation of testimony by the War Department, clearly the responsibility would then be on Con- gress. anything indiscreet could then hardly be held to accountability for it any more than the disclosure of a private conversation between an Army officer and his friends discussing current problems in the civilian branch of the Government could justly be made the basis for disciplinary action. — 5 NEW NAVAL ATTACHE AT TOKIO CAPT. BEMIS Navy Department Announces Capt. Rogers Will Return to Washington for Duty. Capt. Harold M. Bemis, operations officer on the staff of the commander of the Scouting Force, will be the new naval attache at Tokio, Japan. In announcing this today, the Navy Department declared Capt. Fred F. Rogers, the present attache, is com- ing to Washington to serve in the Office of Naval Operations at the de- partment. He has been in Tokio since August, 1933, and will be detached late in the Summer. Capt. Bemis is a native of Osh- ’ What’s at . Behind News . . in Capital Conferees Learn Lot About Tax Bill Day After Parley. BY PAUL MALLON. HOSE who talk with President Roosevent in private occasion- ally emerge with a different impression than the President has about what was said and done. It has almost become a habit. No official record was kept of that night pow-wow he held with his con- gressional leaders. Few of the details leaked out. But any one who has been near the congressional smoking rooms lately has heard different stories from the Democratic leaders. They will never raise the issue aloud, of course, but some of them will swear on a stack of Bibles off the record that no one at the con- ference mentioned a $1,137,000,~ 000 tax bill. The first they heard of it was when they read the White House announcement later in the newspapers. They were amazed. The talk they heard that night centered mainly on $500,000,000 of new farm taxes and recapturing some of the impounded processing taxes. Only one or two vaguely mentioned $120,000,000 for bonus taxes. They thought every one agreed to keep down the amount of the bill in the mind of the public. Note—It is true that, in the past, dent have understood him to say what they wanted him to say, rather than what he said. It is also true that this time the congressional lead- ers wanted him to say that little or no taxes would be enough. 4 ALTTLE MORE OF Cire THEABUNDANT LIFE ‘What the congressional leaders are trying to do now is to stall until They have been tipped that the re- turns will be anywhere from $200,- 000,000 to $450,000,000 and will cer- tainly be more than estimated. The dividends tax receipts are expected to be especially surprising. If this proves true, it will afford a good excuse for refusing to follow the President, al- though, of course, income receipts have no connection with the farm bill or bonus. Inspires Forecasters. This writhing is only natural. Just now it is generating general predic- tions that Congress will not pass any- thing like the President’s recom- mendations. Within two weeks it will be evident that Congress will have to follow his general outline. In the end it will probably give him about 75 per cent of what he is asking. Note—No one noticed it at the time, but the White House tax con= ference was the longest Mr. Roose= velt has ever held. It lasted four, hours. Last year it took hin only two and a half hours to reach @ similar misunderstanding about soaking the rich. The explanation is that at this conference the con- ferees talked as much politics ag they did tazes, although none of the announcements said anything about that. The State Department is never sur- prised. It always knows everything in advance and yawns when it happens. However, the eyes of the seers popped out as far as yours did when Premier Okada returned from the dead in Tokio. The truth is they know less about what is happening in Japan than in any other country in the world. Japan keeps her state secrets better than all others. The news from there is nearly always handmade for diplomatic pur- poses. Important News For World. As our statesmen perceive it, the Japanese flurry is of extreme impor- tance to us and all the world. The government and the army in Japan are one on the general idea of seizing Asia. They disagree violently about how fast it should be done. Japanese diplomats want to do it peaceably by buying up the Chinese leaders. The moderates in the army want to do it by force, but cautiously. A radical element believes haste is essential. This belief is based on the conviction that Japan is going to have to fight Russia before her control of Asia is complete. The rea- son: Russia is supplying the Chinese The Army officer who said. 4 Red armies with arms and inspiring resistance to Japanese. Thus a real issue underlying the Japanese upheaval is war with Russia. ‘Whatever eventually happers in Japan will mean the hastening or_delaying of that inevitable event. 1t was overlooked at the time, but Chief of Staff Craig’s published report on the Hagood affair contained a re- vealing statement. He said that Gen. Hagood’s quip about “W. P. A. stage money” appeared in The Washington Evening Star February, 10 and that he wrote Hagood February 19 asking how come. In other words, for nine days Hagood's wiscrack was appar- ently acceptable to Cralg. It sud- denly became unacceptable on Febru- ary 19, Another thing not in the report, but nevertheless true, is that Craig and Hagood have been personal kosh, Wis.,, where he was born July 15, 1885. He holds the Distinguished Service Medal for World War service on submarine duty in British waters, fighting against German U boats. Lenten Service Under the Auspices of The Washington Federation of Churches Epiphany Episcopal Church ‘Tomorrow at 4:45 p.m. Preacher: Dr. G. E. Lenski, Grace Lutheran Church The public.is invited. Jriends for 20 years. Craig always Personally regarded Hagood as a brilliant general whose occasional pranks should be overlooked. As a matter of fact, Craig lamented to an intimate after composing the Hagood barb: “It was like spank- ing a child you love.” Every one in the Army knows Craig did not take that step on his own initiative. . The ‘War Department has kept a stiff military chin up on publicity, but some of the top generals do not like the Hagood affair at all. Their inside story is that this as- sociate of Harry Hopkins demanded punishment of the general and in- sisted on it. This, however,” will probably not come out at the congressional hear- ings, as the military code requires Craig to take the rap. 4 (Copyright, 10988 - some people conferring with the Presi- | after the March 15 tax returns are in. | PLEADS GUILTY Dennis McDaniel Held After Arraignment—Says Broth- er Aided Him. Dennis B. McDaniel, 35, paroled San Quentin prisoner, pleaded guilty to robbing the Old Dominion Bank at Ballston, Va., February 10 when ar- raigned before United States Commis- sioner John Barton Phillips in Alex- andria, Va., today. He was committed to the Alexandria Jail in default of $15,000 bond to await trial at the June term of Fed- eral Court in Alexandria. McDaniel is accused of stealing $2,700 from the bank during a hold- up. He was taken into custody at Mallow, Va., by the Federal Bureau of Investigation, whose agents' said he confessed that he and his brother, John Woodrow McDaniel, committed the robbery. McDaniel was identifled and traced through a sawed-off shotgun left by the bank robbers in an automobile they abandoned in this city, it was disclosed by J. Edgar Hoover, director of the bureau. Both Arrested Before. Both brothers had been arrested and convicted in the past of numerous crimes and both had received paroles. While experts in the technical laboratory of the F. B. I. were devel- oping latent fingerprints found in the automobile, Lee Thornton, colored, of Falls Church reported that newspaper photographs of the shotgun led him to believe the weapon was one he had loaned to Dennis McDaniel the day before the robbery “to shoot rabbits.” Thornton was shown the gun by the Federal agents and he identifled it positively as his own, explaining that the barrel had been sawed off after it left his possession. The bu- reau said the identification was ac- complished “with the commendable assistance of Sergt. A. P. Shumate of the Falls Church police department.” Federal experts said the gun had been sawed off recently. The McDaniel brothers are well known to police of Roanoke and vic- inity. Mallow, where Dennis was ar- rested, is about 40 miles from Roa- noke—where his brother was arrested in 1932 for violation of the Federal automobile theft act. The brother served part of a one-year sentence in the Federal Reformatory at Chilli- cothe, Ohio, receiving a conditional release in September of 1933. Two months later he became a fugitive when he failed to report to prison authorities. Sentenced in Richmond. A year later he was arrested and convicted in Richmond, Va., on grand larceny charges and sentenced to a year in jail. Dennis was given a sentence of one year to life in 1922 for robbery and was committed to San Quentin Prison in California. Ten years later, records show, he was arrested as a highway robbery suspect and sent back to San Quentin to serve up to five years. He was paroled last December by State authorities. At the time of Dennis McDaniel's arrest Federal agents found in his automobile a .38-caliber revolver, which had been taken from the Ball- ston bank by the robbers. “Upon being questioned by the special agents,” Hoover said, “he ex- ecuted a signed statement in which dmitted that he and his brother, Woodrow McDaniel, had perpetrated the robbery.” The Ballston bank was robbed early in the afternoon by two men who forced bank employes to surrender all cash in sight. The men fled in an automobile that had been stolen from a parking lot at the south end of the Key Bridge shortly before the | robbery, the bureau said. Agents learned that for an hour | prior to the robbery two men answer- ing the description of the robbers had sat in a small cafe at Ballston, await- ing departure of a traffic policeman from a nearby street intersection. As soon as the officer left the men pro- ceeded to the bank. In making their get-away the rob- bers sideswiped the automobile of a woman, damaging their car to such an extent that they abandoned it on C street, between Nineteenth and Twentieth streets. . REPUBLICANS VICTORS IN THREE MAINE CITIES Take Over Control of Saco for First Time in Five Years. By the Associated Press. PORTLAND, Me., March 3.—Demo- cratic joy over a whopping city elec- tion victory in Lewiston declined to- day with losses in three other Maine cities. Republicans tapk over control of Saco yesterday for the first time in five years, and retained their hold on Waterville and Bath. Lewiston’s Democratic' mayoralty candidate, Donat J. Levesque, small grocer, defeated Judge Benjamin L. Berman, Republican and Independ- ent, by 5,541 votes. That majority and the total vote cast, 10,031 out of & registration list of 14,143, were Lewiston records. TRI0 OF NARCOTIC SUSPECTS TAKEN Two Men and Woman in Specially Constructed Limousine Arrested. Following their arrest in a luxurious limousine, fitted with secret panels and a device to dump contraband in case of pursuit, two men and a woman were held by police today in connec- tion with narcotic violations. With the trio at the time of their arrest was a 7-year-old boy, believed to have been used as a “blind.” Closing in on the car, which they had been seeking for more than a month, at Tenth and M streets last night, Detective Sergts. Charles Mans- field and D. H. Jones and Federal agents headed by B. M. Martin ar- rested Mike Barcella, 46, of Paxinso, Pa.; Walter R. Roberts, 31, and Paul- ine V. Roberts, 28, both of the 1900 block of F street. The Roberts boy was with the trio, police believe, to give the appareance of a family group. ‘The arresting officers sald Barcella and the Roberts couple were on their way to make a delivery of narcotics at the time they were apprehended, and that they dumped 125 grains of heroin when they saw they were being pursued. The drug was later recov- ered. The boy was turned over to the ‘Women's Bureau, pending disposition of the case. Another man, Lawrence (Sonny) Peden 29, arrested last week and charged with violation of the Harrison narcotic act, is believed to have been connected with the trio arrested last night. BEARDSLEE TO LEAVE JUSTICE DEPARTMENT | War Risk Litigation Director Plans to Retire Some Time Next Summer. William G. Beardslee, director of the Bureau of War Risk Litigation of the | A Department of Justice, plans to resign some time next Summer, it was learned to- day. Beardslee, who came originally from Washington State, had been located in Mary- land until he came to his pres- ent post about three years ‘ago. It is understood he plans to ac- cept & position with an insurance firm, W. G. Beardslee. 'RITES HELD TODAY FOR OSCAR BLANTON Former Motor Company President Is Buried in Cedar Hill Cemetery. Oscar R. Blanton, 46, former head of the Blanton Motor Co., which was located in the first block of New York avenue northeast, died Saturday in Providence Hospital. Funeral sefvices were held at 11 am. today at the W. W. Deal funeral home, 816 H street northeat. Burial was in Cedar Hill Cemetery. Recently, Mr. Blanton had been as. sociated with Evans-Palmer, Inc., au- tomobile dealer, Blanton’s death occurred only two weeks after he fell through the ice on the Potomac River and was res- cued by a 32-year-old mother, Mrs. Frances Miller. Weakened by a thaw, the ice broke under Blanton's weight as he was walking toward his house- boat, moored at the foot of Four- teenth street. Mrs. Miller saw him go down, rushed to the end of the pier, grabbed Blan- ton’s coat collar and pulled him to “RACKET” WORKED ON CAPITOL HILL Secretaries of Congress Members Among Alleged Victims of Man in Custody. Secretaries of members of Congress are listed among the victims of an al- leged confidence racket that has re- sulted in the arrest of Joseph F. Mo- ran, 52, who, police say, admits escap- ing from prison and deserting from the Army during the World War. Moran, who is reported to have used several aliases in & scheme to obtain money from persons by “preying on their sympathy,” is being held while police try to verify his story that he broke out of Joliet Prison 22 years ago. He also is said to have told police he was & deserter during the war. Ice Buffets Now. Buffets on sleds propelled by sales- people on skates have appeared on ice rinks of Moscow. The National Scene BY ALICE ROOSEVELT LONGWORTH C & resounding ‘series. ORKS are popping out of the W. P. A. bottles all through the 48 States. In Pennsylvania former Gov. Pinchot has let off In New York Mrs. Eugene Meyer has called attention to the appointment of Mr. Harry Hop- kins® sister to an important W. P. A. job. There is no particular scandal about this, but it's interesting. The most reverberating barrage has come from West Virginia, where the “Baby” Senator Holt has exploded the relief situation in a big way. ‘Waste, incompetence, confusion. It is tak- ing billions of taxpayers’ dollars to teach us that these are inevitable when Federal domination takes the place of local responsibility. And it wouldn’t matter whether bosses in this kind of business were Alice Lengworth. Republican or Democratic. Boondoggling is s disease that may attack any administration that has billions to spend on useless projects. The air is hot with bubbles and broken glass. The political ‘barometer is falling. Hurricane signals are set. Coprrisht, 1936, 0, TUESDAY, MARCH 3, 1936. W. P. A. Workmen Strike in Los Angeles Some of the 2,400 men working on the W. P. A. Slauson avenue project in Los Angeles, who went on strike s Vesterday, are shown milling about just after work had ceased. The W. P. A. workers demanded re-establishment of the six-hour day, removal of two engineers and the right to organize. —Copyright, A. P. Wirephoto. ITALY ABOLISHE PRIVATE BANKING New Inspectorate Appointed for Defense of Savings and Exercise of Credit. Copyright, 1936, by the Associated Press. ROME, March 3.—Private banking in Itely was abolished today by a the Council of Ministers in a session at which Premier Mussolini declared anew Fascism's deflance of League of Nations’ sanctions, The cabinet ordered the four big- gest banks in Italy—the Bank of Italy, the Banca Commerciale Italiana, the Credito Italiana and the Banco di Roma—declared public banks. The ministers also confirmed a public bank status for a number of other important banks, including the Banco de Napoli, Banco de Sicilia and Banca Nazionale del Lavoro. The strength of the Bank of Italy | was reduced to a capitalization of 300,000,000 lire (about $24,000,000), banks. Inspectorate Appointed. A new “inspectorate for defense of savinge and exercise of credit” was appointed, comprising Mussolini himself, the ministers .of finance, | corporations and agriculture and the governor of .he Bank of Italy. The inspectorate was given full con- trol over the Nation’s credit and financing system. It was given juris- diction also over stock exchanges. The inspectorate’s permission was | made necessary for any company to | augment its capital or issue bonds. The cabinet also approved exten- sion of the “Instituto Mobiliare Itali- |ano,” which compares to the recon- | struction finance corporation of the | United States. The institute will open branch offi- | ces in all provinces to carry its financ- | ing closer to the needs of productive | organizations. ‘The cabinet fixed the capital of the Bank of Italy at 300,000,000 lire (about $24,000,000). The present shares, bearing a par value of 1,000 lire, will be reimbursed at 1,300 lire, although the market value has been 1,500 lire. Effect of Fusion Seen. ‘The cabinet did not specifically order fusion of the major Italian banks, but bankers asserted today's measures had virtually that effect. The ministry’s financial measures and Il Duce’s address came amid celebration of the current Fascist victories in Ethiopia and anticipation of new League of Nations soundings for conciliation. High Fascist sources declared, how- ever, that Italy would balk at mak- ing peace under sanctions pressure. Another cabinet meeting was called for Saturday. Your Income Tax Deduction for Traveling Expenses. To obtain a deduction for traveling expenses, which form an important item in the returns of many taxpay- ers, certain regulations must be ob- served. ‘The taxpayer is required to attach to his return a statement showing the nature of business in which en- gaged, number of days away from home during the taxable year on ac- count of business, total amount of expense incidental to meals and lodg- ing, and total amount of “other ex- penses” incident to travel and claimed as a deduction. Among the “other expenses” are tips, provided they are reasonable in amount. Traveling expenses are deductible only when the -trip 1s .on business. ‘They are limited to such expenses as are reasonable and necessary in the conduct of the business and directly attributable to it. Traveling expenses incurred in con- nection with & journey to another city to accept or seek employment are not deductible. Suburbanites who com- mute daily from their homes to their places of business are not permitted to deduct the cost of transportation, it being a personal expense. Claims for deduction for traveling expenses must be substantiated when required by the commissioner of in- ternal revenue, showing in detail the amount and nature of the expenses incurred. For officlal advice and help in your income tax problems call at room 1002, Revenue Building, Twelfth street and Constitution avenue, the office of the deputy collector of internal revenue, where Government experts will help you make out your income tax re- sweeping banking reform, passed by | to be suscribed to by the public| Mrs. Roosevelt Plans Lectures On Paid Tour Will Make Four Talks at Charity Events in Michigan, Ohio. By the Associated Press. Mrs. Franklin D. Roosevelt, round- ing out her third year in the White House today, also rounded out her | | record as a precedent-breaker by an- nouncing a short tour as a paid lec- | turer. Mrs. Roosevelt has previously con- ducted a magazine page, talked over | radio and written both weekly and | datly newspaper columns for remuner- | ation since coming to the White House. | Her lecture, titled “Ways to Peace,” | will be given at four charity events | held by various civic clubs of Grand Rapids, Mich., and Toledo, Cleveland | and Dayton, Ohio, on March 9, 10, 11 and 12, respectively. Mrs. Roosevelt said she would be quite willing to report the amount of | money thus earned when the tour is | over and she herself knows what she receives when varous expenses have been subtracted. | She said the money would not go to | the Friends’ Service Committee, to which her commercial broadcasts over the radio were devoted, but that she would direct its disposition herself. | False Alarm (Continued From Pirst Page.) the prosecution evidence after a de- fense motion for dismissal had been overruled. After the trial, Russell's attorney | said his client, with Mrs. Russell and | a daughter, had been visiting friends | near Fourth and N streets. Some one, it was said, turned over an oil lamp. | In the excitement somebody w: statement, and Russell turned in the | alarm to summon aid. McGinnis said Russell was trying to get the fire rescue squad. Earlier today three boys were booked at the eleventh precinct for allegedly turning in eight false alarms. They gave their names as Porter H. Gadson, 12, 1110 Forty- ninth street northeast; Thomas E. Green, 13, 4905 Sheriff road north- east, and Paul E. Loyetz, 14, of ¢921 Lee street. Confessed, Police Say. Police said they readily confessed to sending in the alarms for their own amusement and to see the ex- citement of the fire engines and crowds, The usual $50 reward offered by the District led to a tip that proved the undoing of the trio. After the eighth of the series of alarms, all in the same neighborhood, had been turned in about 8 p.m. last Friday at box 948 at Forty-eighth and Sheriff road northeast, Sergt. Bert Sheldon and Pvts. 8. R. McKee and P. Burton remained long after the fire appa- ratus had returned to the station. Questioning some of the neighbors who had gathered at the sound of the engines, Sergt. Sheldon finally se- cured the tip. He took the boys to precinct 11 station and after a brief questioning they admitted being re- sponsible for the false alarms, Sergt. Sheldon said. ‘They spent the night in the House of Detention at Ninth and Potomac streets and Saturday were released in custody of their parents to await trial before Judge Fay L. Bentley in Juve- nile Court. Two of the boys are first offenders. The Gadson boy is now on probation for a minor offense, according to police. The alarms were pulled August 4, August 22, two on October 17, November 3, January 1, February 8 and February 27. —_— DRY LEADER TO SPEAK Prohibition Party Chairman to Talk at Mass Meeting Tonight. Edward E. Blake of Chicago, na- tional chairman of the Prohibition party, will be the principal speaker at Twelfth and N streets. Rev. A. K. Lindsley, pastor, will preside. The meeting will follow a District convention of the party scheduled for late today in the office of William V. Mahoney, 817 Fourteenth street. Fish Shoots Insect Prey. The archer-fish, found on the coasts and in the rivers from India to the Pacific Islands, quietly approaches its prey, an insect hovering over the nmumu-m.mmun- from its mouth, devouring a8 it falls into the water. bruised, according to the attorney's| ROBINSON DRAWN INTO HAGOOD FIGHT Indianan Gives Explanation of How Bolles’ Name Entered Debate. By the Associated Press. Former Senator Arthur Robinson of Indiana, Republican, and Senator Smith, Democrat, of South Carolina, yesterday were drawn into the con- troversy which followed the removal of Maj. Gen. Johnson Hagood from his command. In a Senate speech, Smith demanded that Hagood, a native of South Caro- lina, be restored to his command of the 8th Corps Area at San Antonio. porting to explain how the name of Maj. Gen. Frank C. Bolles, com- mander of the 7th Corps Area at Omaha, was injected into Senate de- bate over the Hagood affair. (The War Department ordered Hagood to his home to “await orders” before the House Military Affairs Committee, in which he criticized Works Progress activities. Bolles name was brought into the contro- versy when Senator Robinson of Ar- kansas, the majority leader, charged he was “actively engaged” in politics and was supporting a candidate for the presidency.) Gen. Bolles, denying the charge made by Robinson, who warned Army officers against “playing politics,” ex- pressed mystification as to how the Arkansas Senator could make such an accusation. After reciting how a letter from been opened by mistake by Robinson statement said: “Attention is called to the fact that Senator Robinson of Arkansas made his charge on the Senate floor on the same day that he re-addressed the letter from Bolles to the Indiana Rob- inson.” Gen. Bolles was the Indiana Rob- World War, the statement explained, |and as close personal friends they ’correapond frequently. Gen. Bolles' letter had said: “My dear Senator: “I obtained a copy of the Liberty, which you mentioned in your note, and I was certainly interested in read- ing the article. (The article, discussing presidential possibilities, included the name of Robinson of Indiana.) “Remember, I am pulling for one particular candidate in that list, who comes from Indiana. I hope that things will so shape that my wish will come true. “I am certainly getting a kick out believe that it is going to be the most exciting that has occurred during my lifetime, “We have been having a terrible siege of weather here for the last few weeks, and it hasn’t let up yet, but hope that it will soon. “The family, barring colds, are all well and join me in love to Mrs. Rob- inson, yourself and the children.” The letter from Robinson of Ar- kansas to the former Indiana Sen- ator, dated February 25, sald: “I inclose herewith a letter, evi- dently intended for you, which was delivered to me in my mail and opened by one of my clerks. It was not noted that the letter was not intended for me until after the same had been placed on my desk.” Senator Smith termed Hagood's “punishment” as “perhaps the great- est ingratitude ever perpetrated on a servant’ of the public.” Debates Panama Canal tolls bill. Lobby Committee hears utility ap- praiser tell of influences on legisla- tion, Immigration Committee considers bill to deport alien criminals, House: = Considers private calendar. Appropriations Committee meets on regular departmental supply bills. Ways and Means Committee meets tax legislation. TOMORROW. Senate: Resumes debate on rural electrifica- tion bill. Military Affairs Subcommittee on the removal of Gen. Johnson Hagood from his command meets at 11 am. to consider proposal for an inquiry. A Robinson issued a statement pur- | following publication of his testimony | Bolles to Indiana’s Robinson, in which | political affairs were mentioned, had ] of Arkansas, the Indiana Robinson’s | inson’s commanding officer during the | of this political campaign, and I| TREASURY HAILS - - SUCCESS OF LOAN Offering of More Than Bil- lion Securities Heavily Oversubscribed. By the Associated Press. ‘The Treasury today hailed the pub- lic reception of the largest Governe ment financing issue of post-war days An offering of securities for $1,250,- 000,000 cash, the major part of the financing operation, was “heavily over- subscribed” yesterday within a few hours after it was announced. Arnnouncing the closing of the books, Secretary Morgenthau said that, though compilation of the fig- ures was incomplete, he expected the present showing to compare favore ably with previous flotations. The cash issues oversubscribed were the $650,000,000 in 12 to 15 year 2% per cent bonds and $600,000,000 in five-year 11, per cent notes. Books remained open for the con- version offering by which holders of $559,000,000 in notes maturing April 15 may exchange for the new bonds or notes. Of the financing total of $1,809,000,~ 000, the Treasury sought $1,250,000,000 in cash, $450,000,000 of which will go to retire bills maturing march 16. The remaining $800,000,000 will supple- ment the Treasury's balance for relief, farm and bonus payments. Morgenthau reported an improve- ment in Federal credit. He recalled that December 15 the Government issued bonds of the same interest rate, but maturing three years earlier. “It proves you can now sell a longer term bond at the same rate that you could three months ago,” he observed, —_— Taxes. (Continued From First Page.) was understood the Treasury's proe posal was for a graduated tax average ing about 33! per cent. The President made it plain he ex= pected the new corporation tax not only to cover the repealed taxes, but to raise the $620,000,000 which he characterized as permanent levies. He proposed the windfall tax and ‘temporary processing taxes to cover | the $517,000,000 which the Govern- {ment lost in this year's processing | taxes. The first would seek to regain {unpaid processing taxes from bene« | ficiaries “unfairly enriched by the re- |turn or non-payment” of the levies, The second was that “an excise on the processing of certain agricultural products.” The President in his message, and | Treasury experts in unofficial ampli~ | fication of the program, took the view that the proposals would eliminate the greatest “leak” in the present tax | structure, would establish equality in taxation between recipients of busie ness profits from corporate and none corporate sources, simplify the tax system for the taxpayers as well as the Government, and eliminate taxes en- tirely on corporations which distrib- uted all their income. The present law, Treasury experts advised the President, make it difficult for a small business to be incorporated because of the corporation taxes in, addition to personal income taxes paid ~ hy owners, Exemption Repeal Urged. As a part of the tax reform, the President also proposed that the pres. ent exemption of dividends from the normal tax on individual incomes be repealed. This point reflected the theory of the new tax plan—that instead of taxing corporation profits, the revenue |should be raised by taxing these profits as they are reflected in in= dividual income tax returns from those who get the profit, The President, in explaining his proposals to Congress, said: “Extended study of methods of im- proving present taxes on income from | business warrants the consideration of changes to provide a fairer distribu~ tion of the tax load among all the beneficial owners of business profits, whether derived from unincorporated enterprises or from incorporated busie nesses, and whether distributed to the real owners as earned or withheld from them. The existing difference between corporate taxes and those imposed on owners of unincorporated businesses renders incorporation of small busi- nesses difficult or impossible. “The accumulation of surplus in corporations controlled by taxpayers with large incomes is encouraged by the present freedom of undistributed corporate income from surtaxes. Since stockholders are the beneficial owners of both distributed and undistributed corporate income, the aim, as a mat- ter of fundamental equity, should be to seek equality of tax burdens on all corporate income, whether distributed or withheld from the beneficial owners. Stockholders Suffer Now. “As the law now stands, our cor= | porate taxes dip too deeply into the shares of corporate earnings going to stockholders who need the -disburse- ment of dividends; while the shares of stockholders who can afford to leave earnings undistributed escape current surtaxes altogether.” Explaining this proposition, tax ex« perts said that a man holding 60 per cent of the stock of a corporation has in the past frequently left the profits in the corporation in the form of sure plus rather than dividing them and thus subjecting them to taxation. While the big stockholder did not need this money, experts said, the other and smaller stockhelders might have needed it badly. If the new tax would force the distribution of such surplus income, it would not only ine crease revenues, they said, but would provide new purchasing power for the smaller stockholders. e POLICE CONTINUE HUNT FOR GROCERY CLERK John Duray Shell, 21, Missing Since Yesterday, When He Left for Bank With $668. The disappearance of John Duray Shell, 21, clerk at the Sanitary Groe cery store at 2308 Rhode Island ave- nue northeast, who was last seen when he left to make a deposit for the store at the Woodridge-Langdon branch of the Hamilton National Bank, a few blocks away, was still be- ing investigated by police today. He had $616 in cash and a $52 Gov- ernment check belonging to the store when he left at 8:45 a.m. yesterday. He failed to reach the bank and had not returned to his home at 628 North Carolina avenue southeast today. His roommate, Elmer Connick, 29, sald Shell had lived at the North Carolina avenue address at intervals for the last five years. He had been employed at the store about a month.