Evening Star Newspaper, March 5, 1936, Page 2

BUSINESS COUNCI " ENORED ON TAX Disillusionment of Advisory Group Seen in Surplus Levy Secrecy. BY DAVID LAWRENCE. Business men who had come to believe that last week's meeting of the Business Advisory Council with ‘President Roosevelt meant that busi- ness was to have a voice in the affairs of government, or at least that there would be consultation on important policies, have been frankly disillusioned. 1t develops that the President never mentioned to the council last week that he intended to recommend a tax on corporate surpluses, and, so far as is known, the measure was not dis- cussed in any recent session of the cabinet. In other words, a proposal of far-reaching economic significance, and one that may affect in several ways the course of American industry and business in the .next several years, was not even broached to the chosen group of business leaders, who were promised by the President that they would occupy a sort of liaision position between government and the business world. This isn’'t the first disappointment. Today’s membership on the Business Advisory Council is composed of new personnel, largely because virtually all the other business men resigned in disappointment because they claimed they were being used as “window dressing” and never were Teally consulted. There is, of course, no obligation on the part of the President to dis- cuss his policies with anybody, not even his cabinet. But these times are supposed to be extraordinary in that the co-operation of business and government are believed to be es- sential to recovery and the cutting down of the large unemployment rolls, Discussed in Treasury, It is known that the Treasury De- partment has for several weeks been discussing the proposed tax on cor- porate surpluses. The President was aware of these studies, because he mentioned the idea of taxing cor- porate surpluses in his message to Congress last Summer, though he gave the impression that he would not press the matter immediately. Here was his wording: “Ultimately we should seek through taxation the simplification of our corporate structures through the elimination of unnecessary holding companies in all lines of business. We should likewise discourage un- wieldy and unnecessary corporate surpluses. These complicated and difficult questions cannot be ade- Quately debated in the time remain- mg in the present session of Congress.” The foregoing message Wwas deliv- ered on June 19, last, and Congress did not adjourn till late in August. When Mr. Roosevelt addressed Congress early in January of this year he did not yevive the discussion, It remained for his special message of this week to press the corporate surplus issue. Business has been hearing through the press intimations for several weeks about the President’s plans, but it was not seriously belleved that Mr. Roose- .velt would put the weight of his presi- dential influence in Congress behind _any such drastic tax revision plan as ,he has suggested—at least it was thought that if a comprehensive tax . reform were outlined this might be among the proposals for study. " As it is, the effect of the President’s 7 recommendation will be to stir Nation- - wide discussion and debate among ‘business men as to the effects of the %tax. Like inflation, there are certain immediate benefits that flow from any “increased distribution of money whether it is caused by a forced dis- bursement of business profits or " whether it comes from anticipation of higher prices due to the decline in the value of paper dollars. Deflationary Proposal. But the primary influence of the ;President’s tax proposal is deflation- ary. Lots of companies will retain , their past surpluses now rather than .spend on improvements. This will " mean there will be more cash back of securities already issued. Also the “ stock market is booming, not only be- “cause bonds are going to have more “cash back of them due to the holding “intact of 1935 surpluses as a protec- tion against future contingencies, but “because when 1936 profits are forced “into distribution there will be a bid- ‘ding match by individual investors for outstanding common stock issues. “Speculation already has begun based on this theory and since new issues apart from refunding operations are few and far between, due to the re- strictions placed on new financing by “the securities and .exchange act, the securities already issued will be in “greater demand. There can be no doubt that the ~principle back of the administration’s tax proposal has much merit in it. “Thus, from a purely theoretical stand- point, it is better to have surpluses “move into channels of disbursement -than ot remain stagnant. Likewise, it is the function of Government to ~omit no step that will prevent evasion of taxes by large stockholders who have a voice through controlled di- réctors in keeping big surpluses intact. Revenue Chief Factor. But like many an approach that has peen made to tax problems, the idea of getting revenue has superseded any thought of the effect of the tax on the whole economic structure. It is known that inside the Government are many officials who argued against the tecommendation of a tax on corporate surpluses unless confined to instances where evasion was being practiced, as in the case of personally-owned investment corporations. The fact is that such evasions are reachable under present statutes and court decisions. 4 Business Views Late. “Zqhe ramifications of the complex fssue raised by the President's message ‘are numerous. Now, of course, after Mt. Roosevelt has committed himself “to ‘the program, business men will be ‘asked for their views and the Roper ‘Council will make various studies. ‘When the business men express oppo- ‘sition that they could just as well ‘have expressed beforehand and thus ‘attained a modified program that “might be practical they run the risk ‘mow of being calied anti-administra- tioh. This was something the re- ‘habilitated Business Advisory Council “was supposed to cure. And that’s why disfllusionment is spreading, notwith- “standing the belief last week that at 4dst a satisfactory understanding had ‘been reached between business men and government relative to the timely expression of business counsel and advice on major policies of govern- (Copyright, 1036.) 4 b What’s What ind N Behind News . . b in Capital Banks, Thin on Liquid Diet, Bolt Meat of Long-Term Notes. BY PAUL MALLON. REVEALING story of the ecd- ; nomic outlook lies behind the success of Secretary Morgen- thau's latest money-raising venture. Most of the enthusiastic things which the Treasury Secretary has been saying about it for the past few days are true. His oversubscription was really on the level. The big bank- ers and insurance executives showed unexpected. new eagernss for long- term Government securities after long distrust. The Treasury publicity would seem to indicate, however, that these large investors have sud- denly decided that the New Deal is going to be a big thing and want to get in on it in a bigger way. Alsothat inflation fears have been stamped out finally and forever. That is a pretty picture for pudb- licity purposes, but a little too pretty. The under side of it is somewhat different, and more accurate, Every one knows, of course, that the big institutional investors have not been able to e enough out of Morgenthau’s short-term notes to pay their rent. They get an average of about one-half of 1 per cent interest. Any one who has tried to live off Vol- stead beer knows how much one-half of 1 per cent is. Furthermore, they seem to have come around since last December to the conclusion that the commercial money market is not going to open up wide any time soon. Business is ex- panding, but not at a rate to furnish substantial interest returns for the banks and insurance companies, Thinner and Thinner. Thus, the sudden banking appetite for Morgenthau’s long-term 2% per cent interest bonds appears to have been developed with the wolf at the | door. Inasmuch as they were getting thinner and thinner on one-half of | 1 per cent, and not seeing any 4, 5 or 6 | per cent commercial loans (or, in fact, | any other profitable business) in the offing, they apparently decided Mor- genthau's 23, per cent interest pro- posals were not so bad after all. It does not mean caviar or cake, | but it will pay the rent. Note—It is true that the recent moves to set the Federal financial house in order have been encouraging. Also that inflation fears have been lessened by tax proposals. These con- siderations do not alter the conclu- sion that a man or a bank on a liquid diet for a long time does not need much convincing to take any food that is offered. In this background you may find these following rays of light on the economic outlook as seen by the largest investing eyes: Business is expected to pick up gradually, but not in a boom. Higher interest rates are mot con- sidered an early prospect. Mor- genthau will have an easy time raising money as long as the erist- ing state of mind and appetite continues. Currency inflation prospects, therefore, are more remote than ever. The banks of the country are no longer commercial institutions, but are investment trusts for Govern- ment bonds, and are resigned, for the present, to their lower standard of living. No New Deal authorities have come right out and publicly said the stock market is too high now, but a lot of them have been hinting it aloud wher- ever they were certain to be over- heard. (See S. E. C. Commissioner Landis’ congressional testimony and stories about the Federal Reserve Board strengthening reserve require- ments.) Election Is Factor. It is no secret that some key stocks are being quoted at prices hardly justi- fied by their earning prospects for this year. At least all the top New Deal fiscal authorities think so. They are afraid this situation will build up into a let-down before election. They would rather have the let-down now, and another build-up just before election. The economic as well as the political thing to do apperently is for the Reserve Board to act now. It is customary in handling fires to use too big. But what the board men apparently are worried about is the obscure fact that the law permits them to increase reserve requirements only by 50 per cent once. They are afraid they will use up their water before the fire really gets started. Supreme Court justices were a little upset when they heard & rumor that they might ebandon their Summer Tecess to hear New Deal cases. It is not unusual, however, for them to delay adjournment & week in order to clear up pending business. This is what they have in mind now. Senator Borah has a ringless telephone. His secretary tells him when to answer by use of the buzzer jrom the outer ofice. The other day, when the secretary was out, a delegation sat outside wait~ ing for him for hours while he sat - inside waiting for them. It was all right, however, because they were news men, not voters. A Washingtonian says he amused himself in Miami last week by going around looking at hotel registers and counting 82 Government officials vaca- tloning. There should have been more. Most of the officials have suf- fered unusually from colds due to the severe Winter here. Also there have been more than the usual number deaths this Winter. K (Coprrisht, 1036.) : I3 water on them before the fire gets GUARD MOBILIZED INSAN JUAN PLOT Held in Readiness Following Arrest of Seven in Threat Against U. S, By the Assoclated Press. . S8AN' JUAN, P. R, March 5.—The National Guard units of San Juan were mobilized in their armories against possible emergencies today as the United States grrested seven Nationalists on charges of recruiting soldiers in a conspiracy to overthrow the Government of the United States by force. Chief of the seven arrested was Pedro Albizu Campos, Harvard grad- uate and leader of the movement which seeks to overthrow United States sovereignty and establish the territory of Puerto Rico as an independent nation. Albizu surrendered to United States Marshal Draughon as soon as he learned a warrant had been issued for his arrest and the six other prisoners slso submitted to arrest without protest. Review Is Called Off. A review of the Reserve Officers’ Training Corps of the University of Puerto Rico, scheduled for this after- noon, was called off, due to the non- arrival of Inspector Gen. Collins of the 2d Corps Area, who was to have in- spected the cadets. Previously, Gov. Blanton Winship had been urged not to attend the re- view owing to the possibility of trouble from student Nationalists. District Police Chief Rafael Eche- varria, champlon pistol marksman of the island, has been on duty at La Fortaleza for some days past, for the first time since he served as personal guard to former Gov. R. H. Gore. ‘The warrants for arrest also con- tained the charge of inciting to insur- rection. Albizu appeared as chief defense counsel for himself and the others, declaring that the bail of $10,000 each which Commissioner Julia fixed was not based on constitutional or economic grounds, but purely for moral reasons. The Nationalist leader said the de- fendants were fearless men of honor, who were prepared to appear at any time to face any charge, regardless of the bail. at $10,000. The commissioner fixed March 19 as the date for the preliminary hear- | ing. 2 Police Patrol Corridors. ‘While the seven prisoners were in the Federal Building police patrolled the upper corridors. They permitted only a few persons to go upstairs. A crowd gathered on the first floor and outside. Lawyers and others who were not quickly identified were searched for arms before they were permitted to enter the court corridor. ‘Throughout the argument over the size of the bond United States Attor- ney Cecil Snyder and Albizu, fellow alumni of Harvard, addressed each other as “brother.” Marshal Draughon said that the homes of all seven prisoners had been searched, but that little evidence con- sidered helpful to the prosecution had been found. He said he, himself, had searched | but that he had found no arms. Dep- | uty marshals, he sald, had found | black shirts, black caps of the “over- seas” type and uniforms of the “Na- tionalist Cadets of the Republic” in the homes of some of the other pris- oners, Some of the recruiting records, correspondence, and other data be- longing to the Nationalist party was seized. Albizu stated to the com- missioner that, with one exception, none of the defendants complained of the search. Dr. Cayetano Coll y Cuchi, former speaker of the Legislature, was pres- volunteer counsel for Albizu. MAJ. SNOW ASSIGNED AS DISTRICT ENGINEER Classmate at Military Academy Will Relieve Maj. Guyer in Post Next June. ‘War Department orders have as- ‘signed Maj. William A. Snow as Dis- trict engineer here in June, when he will relieve Maj. Robert Guyer. No announcement has been made con- cerning the latter's next post. The officers were classmates at the Military Academy. Maj. Snow is now stationed as a student at the Com- mand and General Staff School, Fort Leavenworth, Kans. His father, Maj. Gen. William Snow, retired, lives at 2400 Sixteenth street. Maj. Snow is 40 years old and was graduated from West Point in 1916. He was twice wounded in action dur- ing the World War and served with the Army of Occupation in Germany. For his services overseas he was awarded the Distinguished Service Cross, the Purple Heart with Oak Leaf, the Legion of Honor, the Croix de Guerre and other decorations. Once before, Maj. Snow served in the District engineer’s office in Wash- ington. That was 1923 to 1924, when he was assistant. ing the responsibility. expenditures. Nevertheless, the bail remained fixed | the Albizu home at Aguas Buenos | ent at the hearing as one of the many | All John La Galta, alias King Solomon, has to do is pick a winner from among these entries in the beauty contest now being sponsored by the Cherry Tree, student year book of George Washington University. Front row, left to right: Nancy Sentz, Katherine Black, Trudy Sherman, Miriam EINSTEIN DELIVERS ‘BAD BOY' LECTURE Strives for ‘“Reality” Talk Scheduled for Last May. BY HOWARD W. BLAKESLEE, Associated Press Science Editor. PHILADELPHIA, March 5.—Gravi- tation and electricity combine to form solid matter, Prof. Albert Einstein de- clared last night in an 11,000-word article designed to put ‘reality” into the great mysteries of the science of physics. “Free invention” of explanations of these mysteries, he held, is the only logical system to arrive at the long- sought truths. His explanation of the origin of matter is a development of his theory of electrical bridges between shells of space announced about a year ago. Delayed Speech. Prof. Einstein’s article last night is the speech he was expected to make last May, when he was a “bad boy” and told the Franklin Institute he had nothing to say on the occasion of presentation of a gold medal by the institute. Einstein’s speech had been widely advertised, a distinguished audience sat waiting to hear it, with no inti- mation that he was unprepared, until the moment for him to speak. It was annoumced that his speech would be written later and published as an “article” in the proceedings of the journal of the institute. The 11,000-word article is the result—its subject “Physics and Reality.” Einstein traces man's attempts to solve the riddle of matter and gravita- tion since the Greeks. Lately “causality,” or cause and ef- fect, have seemed about to disappear in the wonderland of the atomic world in of physics. But Einstein in this article | says that by observation of realities, coupled with daring imagination, physicists will find logical solutions. Sketches Example. As one example he sketches the troubles raised by quantum mechanics, the most brilliant of recent physical discoveries. Quantum mechanics show, and experiments have proven, that energy is not continuous, but somehow made of particles. But, Einstein says, no one has shown how the steps between these particles of energy are made; for example, when a hot iron cools, its heat is given off in particles, or steps. and no one knows what happens between these steps. He cites the Schrodinger mathe- matics as explaining that these steps do actually occur, by statistics which mask any idea of what the individual steps may be. “But now I ask,” he writes, “is there really any physicist who believes that we shall never get any inside view of these important alterations in the sin- gle systems, in their structures and in their casual connections, and this re- gardless of the fact that these single happenings have been brought so close to us, thanks to the marvelous inven- tions of the Wilson chamber and the Geiger counter? “To believe this is logically possible without contradiction; but it is also so very contrary to my scientific instinct that I cannot forego the search for a more complete conception. i “There is no doubt that quantum mechanics has seized hold of a very beautiful element of truth. However, I do not believe quantum mechanics will be the starting point in the search for this basis.” Proposes Explanation. Einstein then proposes his explana- tion. He uses the relativity theory to account for the theory of corpuscles of matter, which he originally an- nounced with Rosen of Princeton. The mathematical solutions, he says, show physical space as consist- ing of two identical shells connected by a bridge. This bridge is a cor- puscle, a material particle, something made of electricity and gravitation. ‘The mathematics, he states, solves correctly for one “bridge” or single neutral particle, that is, with no elec- trical charge. But not yet for “sev- eral bridges.” something necessary to account for the complexities of matter. “Only the examination of the The “National Scene BY ALICE ROOSEVELT LONGWORTH President tries to ease the shock of additional taxes by shift- He says “total ‘additional deficit 1936 and 1937, due to the Supreme Court decision and adjusted farm program, $1,017,000,000.” 1t is & new and ingenious alibi for staggering - ‘Another verse in the New Deal theme song, “Blame It on the Members of the Supreme Court.” . As for the actual taxing program, Mr. Rodse- velt’s suggestion to levy on the surplus profits of corporations suits the taste of those who want *'to “soak the rich,” and there are few who don’t. It is & neat proposal, because if the corporations pass on the profits as dividends to stocEholders the recipients will in turn pay more income tax. “The flaw is that it is'the reverse of encourag- Alice Lensworth. ing to the business e: reabsorb the unemployed. Sk o' n © ‘ % - For three years the administration bas had unprecedented power to “remedy” everything. - Yet 24,000,000 people are still on relief. There's the rub that is going to make a number .ivxp;uflu'lmmrt. Copyrisht, 1030, ¢ | ]-nnullly confronts monitors of Wash- Spring Brings Annual Myster Y |A. G. HERRMANN, Of Missing Traffic Mushrooms One of the minor mysteries that ngton traffic still is three weeks away from solution, according to John H. Minton of the engineering division." ‘That mystery is simply: “Button, button, what becomes of the but- tons?” The reference is to those pig-iron discs, anchored with 6-inch bolts % of an inch thick, which surround safety zones, those havens in which pedestrians may rest a moment from traffic-dodging. Incidentally, they weigh 100 pounds apiece. Every year, after what will prob- ably be the last snowfall, M. O. Eld- ridge of the bureau sends ’'round a little memorandum to Minton to have his men survey the loss that re- placements may be budgeted for the next fiscal year. Broas and Cathryn Dengler. Back Geraldine Dillman, Helen Van Hook Just what happens to these “aspirin tablets,” ‘“‘mushrooms,” or whatever one calls them, during the Winter, no- body knows—or at least nobody will tell. “My guess,” confides Eldridge, “is this. You know the street cleaning department isn't very keen on the buttons. I think their men just shovel 'em into their wagons, cover them over with snow or debris, and toss ‘em out with the load on the dumps.” Anyhow, after the snow clears awiy, thefe are lots of spots—just | spots—where once were buttons. ‘What the figures will be for this past season hasn’t been determined. Last year, 150 of them had to be replaced. = At the present pig-iron quotations of around $18 a ton, that's a loss into thin air of $135. Missing STAR ROUTE MANAGER DIS- APPEARED LAST FRIDAY. AUBREY B. HARTUNG, Newspaper route manager, em- ployed by The Star, who disap- peared last Priday. Mrs. Hartung has asked police to search for him. several-bridge problem,” he states, “can show whether or not the theo- | retical method furnishes an explana- | tion of the empirically demonstrated equality of the masses of particles found in nature, and whether it takes into account the facts which quan- | tum mechanics has so wonderfully comprehended. “In an analogous manner, it is pos- sible to demonstrate that the com- | bined equations of gravitation and | electricity produces a singularity-free bridge representation of the electric corpuscle. “So long as the important mathe- | matical difficulties concerned in the | solution of the several-bridge problem are not overcome, nothing can be said concerning the usefulness of the | theory from the physicist'’s point of | view. “However, it constitutes as a matter of fact, the first attempt toward the consistent elaboration of a field theory which presents a possibility of ex- plaining the properties of matter.” LEWIS TALKS TONIGHT Democrats to Meet at 8 P.M. at Hamilton Hotel. Members of the Democratic League will meet at 8 p.m. today at Hamilton Hotel to hear talks from Senator Lewis, Democrat, of Illinois, and George Creel, publicist. Rear Admiral Mark Bristol, president of the club, will preside. Itvin S. Cobb Says: Fairbanks Marriage Re- port Makes Birthday | they could. Cold and stiff, they were of New Deal Jittery. BEVERLY HILLS, Calif, March 5.—It being the third anniversary of the New Deal, I was just thinking that, whether or not it lived through the early part of next November, its folks °could never reproach themselves that . they'd failed to give their darling babykins the best nursing momey could buy. Just then who should rush in but Michael Strogoff, the courier of the Czar, shouting that the U. 8. Marines had just landed with a contradiction of the terrifically ex- citing announcement made- only yes- terday by the same fellow who took the message to Garcla that time—? Hold on, I'm getting all twistified. What I'm trying to say is that the present word for & palpitating planet is that Douglas Fairbanks, sr, is positively going to marry Lady Ashley, whereas but & few hours ago he posi- tively was not going to marry Lady Ashley. So naturally I'm: thrown into such a twitter—even as you, dear reader, must be—that I cannot concentrate further on the birthday of dear little chubby prattling ' Hopkins-Tugwell Frankfurter-Farley New :Deal, (Copyrishiy 39389 © STRANDED YOUTHS WILL BE SENT HOME Georgia Boys Spent Two Days Getting Warm and Catching Up on Eating. After spending two days in the twelfth precinct police station getting warm and catching up on their eating, three Augusta, Ga., youths, found asleep in the ice compartment of a refrigerator car Monday, were turned over to the Board of Public Welfare today to be returned to their homes. Detective Sergt. Arthur T. Fihelly sought the aid of the board when a telegram to police in Augusta brought word that the youths' parents have no money to pay their fare back, and county relief funds are exhausted. While arrangements were being made, the youths warmed themselves thoroughly for the first time in several days, caught up on their eating, which had been neglected since their original capital of 22 cents was ex- hausted Sunday, and entertained po- row: Louise Clark, Prances Knapp, and Buelah Kosters. —Star Staff Photo. D. . LEADER, DIES President of Ginger Ale Com- pany Expires After Cere- bral Hemorrhage. August George Herrmann, 73, presi- | dent of the Herrmann Ginger Ale Co., | died today of a cerebral hemorrhage at his home, 3201 Ellicott street. Mr. Herrmann, one of Washington's leading business men, was active in many organizations here and was | widely known as a civic leader. For | 25 years, until 1932, he was president of the Southeast Citizens' Association. CLOTHING IGNITED, BOY FIGHTS DEATH Police Probe 9-Year-Old's Story That Older Youth Splashed Gas and Threw Match. A 9-year-old colored boy fought | for his life in Casualty Hospital to- | day while police investigated his story | that he was burned when an older | boy splashed his clothing with gaso- | line and then- threw a match at him. The burned youth, James Bean, | 610 L street northeast, was taken to the hospital by firemen yesterday | after they extinguished his clothing when they were called to a vacant lot on Sixth street northeast, between /L and M. An abandoned automobile was in | flames when the firemen arrived, in- | dicating the colored boy may have | been burned when the car’s gasoline | tank caught fire. | Questioning a group of boys who | were playing on the lot when the in- cident occurred, police said they were SPYINVESTIGATORS 10 CALL OFFICERS Grand Jury to Probe Alleged Sale of U. S. Fleet Secrets. By the Assoclated Press. LOS ANGELES, March 5.—High ranking officers of the United States Navy are to be called by the Federal grand jury, it was unofficially report- ed today, in an investigation of sup- posed espionage and sale of fleet secrets to foreign powers. The report, which said Department of Justice agents also would be sum- moned, was not denied by the United States district attorney’s office. Discharged Sailor Indicted. Harry Thompson, 27, a discharged sailor, has been indicted on charges of illegally wearing a naval uniform aboard war craft. Thompson pleaded innocent at his arraignment. A former associate, Willlam James Turntine of Long Beach, Calif., was the first witness taken before the Federal grand jury yesterday. Turntine was arrested in Sweet- water, Tex., a warrant for his return here being issued after reports were received that he assertedly said he was willing to “tell what he knew.” Secret Orders Stolen. Naval intelligence agents have joined with other Federal authorities, it was said, in tracing the theft of what were reported to be secret ord- ers for the 1934 fleet maneuvers, giv- ing naval movements 90 days in ad- vance. A search was made, it was said, for a foreigner supposed to have purchased the information, but agents found he had sailed across the Pacific some time ago. ARREST CONFIRMED. Justice Department Agents, However, Refuse to Comment. A Justice - Department spokesman said today that Harry Thompson is being held by Federal officers in Los Angeles on a charge of impersonating | an enlisted man in the Navy. The department said no other charge was now pending against Thompson. Asked whether espionage was involved in a grand jury investi- | gation there, officials would only say “it's impossible to predict what the department will do before the grand Jury.” VETERANS’ PREFERENCE ACTION IS FILED HERE | Attempt to Force Government to | Give Priority Nearer Hear- ing After Move. | The injunction suit filed in District | Supreme Court by a Philadelphia war veteran to compel the Government to give veterans, their wives and widows preference on all work relief projects moved nearer to trial today when an | amended bill was filed by the plaintiff. | _ Federal Judge George Welsh of | Philadelphia recently granted an in- | junction to the veteran, Benjamin J. lice and prisoners alike with their told the Bean boy had been standing | Spang, upholding the preference of singing. Hope of employment with an under- current of high adventure led Waiter near the automobile when several of the other boys turned it over. An explosion occurred when the | those with war service, so far as a Philadelphia census project was con- cerned. Spang had sought a job as Hancock, jr., 18; Joe Kitchen, 17, and | machine was upset, witnesses told in- | census taker there. John Seales, 19, to leave home last Thursday and start out. via the “side- | door Pullman” to Baltimore. John's | father, J. A. Seales, lives there and | works for & construction company. | They hoped he could aid them in seek- | ing employment. ‘The three were picked up in the Baltimore & Ohio freight yards Tuesday morning by Joe Busch, railroad watchman, who found them in the ice compartment of | a refrigerator car being unloaded at the Sanitary Grocery Co. ware- | house at Fourth and T streets. Footsore and weary from a walk from Alexandria, and we. from the rain, they had climbed into the compart- ment Monday night to get what sleep almost glad to see Busch, even if he was a railroad detective, when he awakened them. They had not even felt the car being moved nor the sounds of the men unloading it. Law Sohool Dean Resigns. LOUISVILLE, Ky., March 5 (#).— Dr. Joseph A. McClain resigned yes- terday as dean of the University of Louisville Law School to accept a position as dean of the Law School of Washington University at St. Louis. His resignation is effective July 31. Debates Norris rural electrification bill. Lobby Committee hears officers of Cities Service subsidiary. House: Considers District of Columbia ap- propriations. Subcommittee continues tax bill study. TOMORROW. Senate: Plans to resume debate on Panama | Canal toll bill. Military Affairs Committee regular| ‘weekly meeting. Lobby Committee probably will con- tinue hearings. House: Coasiders District appropriation bill. Subcommittee of Interstate Com-! merce Committee begins hearing on Great Falls Bridge bill, 10 a.m. Subcommittee on Texation of Ways and Means Committee meets at 10 am. Special Trafic Subcommittee of District Committee resumes traffic | vestigators, throwing flaming gasoline over the Bean boy. His face, legs and arms were badly seared. | Questioned by police, Lee Evans, 15, | of the 400 block of M street north- | east, said a colored boy, whose name he did not know, was smoking a pipe | Jjust before the automobile caught fire. | The Evans boy said no one threw gasoline on young Bean or lighted his | clothing with a match. Evans’ clothing and that of another boy caught fire in the explosion, police | said, but they were only slightly burned. G. A. R. WOMEN URGE BOYCOTT OF MERCHANTS | Would Kill Trade of Those Using Same Radio Facilities as Communist Speaker. By the Associated Press. A boycott of merchants who adver- tise over the Columbia System or any other radio station broadcasting re- marks of Earl Browder, secretary general of the Communist party in this country, was urged today by the local Women’s Auxiliary of the G. A. R. The proposal by the Potomac De- partment of the Ladies of the Grand | Army of the Republic was made public by Mrs. Margaret Hopkins Worrell, department president and chairman of the organization's National Legis- lative Committee. 7 | Browder’s scheduled speech over the Columbia System tonight previous- | ly had touched off a storm of con- | troversy in Congress. “We are calling on all patriotic organizations in the country not to patronize any merchant who adver- tises over the Columbia Broadcasting Co. or any other company which allows Communistic propaganda to go out from it,” said Mrs. Hopkins. “We think the Communists should not be allowed to have a candidate in the elections.” —_— FILM ACTOR STABBED Gilbert Roland’s Brother Hurtsin Hollywood Fight. Alonzo, film actor and brother of Gil- bert Roland, leading man of the screen, was stabbed in the abdomen with an ice pick yesterday by an un- identified extra player. His condi- tion is not serious. Alonzo had gone to the aid of John Ebberts, assisting casting director at the Pioneer Pictures’ studio, who was attacked by the extra, claiming he had not been given a film assignment. study, 10:30 am. Rush-Hour Tra Police began a search for the extra. ffic Snarled By Lights Going “Hay Wire” A “Christmas tree” effect of traffic lights blinking red, green and yel- low threw traffic into at least tempo- rary confusion during this morning’s rush hour on downtown Pennsylvania and Constitution avenues. ‘The timer for “zone 11, went hay-wire,” as the experts put it, and the lights played tricks on motorists on both avenues between Third and Fifteenth streets. The lights would blink yellow, then hold it before switching to red or green, or go out entirely. 3 “What is this—a game?” ons motor- ¢ ist shouted at an over-worked traffic officer. “You know as much about it as I do, buddy,” the officer replied, “keep moving!” Curlously enough, the bewildering array of lights up and down the broad avenues caused little more than the usual delay in clearing traffic. Traffic policemen ordinarily are on duty at most of the corners involved during rush hours. The lights went wrong sportly after 8 a.m., and this afternoon ‘technicians were still laboring to restore order to the aystem. 4 HOLLYWOOD, March 5 (#).—Chito | By bringing similar action in the Capital, the injunction proceedings were made national in scope, seriously threatening the administration’s plans for transferring persons on direct re- lief rolls to work projects. . ANNIVERSARY MARKED Miss Florence Mortimer's seventh year as principal of Wheatley School was celebrated there last night in a community gathering sponsored by the school's Parent-Teacher Association. Mrs. Edna Rawlings, president of the association, presented Miss Morti- mer with a gift on behalf of the or- ganization, and delivered a brief ad- dress of tribute. Your Income Tax Items Exempt From Tax. Certain items are specifically ex- empt from the income tax and need not be included in the taxpayer's re- turn of gross income. Among such items are the proceeds from life in- surance policies paid by reason of the death of the insured. Amounts received (other than amounts paid by reason of the death of the insured and interest payments on such amounts and other than amounts received as annuities) under a life insurance or endowment con- tract, which are less than or exactly equal to the premiums or consideration paid therefor, are exempt from Fed- eral income tax. Any Excess Taxable. Any excess received over the con- sideration paid is taxable. | | Amounts received as an annuity | under an annuity or endowment con- tract shall be included in gross in- come; except that each year the ex- cess of the amount received over 3 | per cent of the uggregate premiums i or consideration paid for the annuity | is tax free until the aggregate of such sums excluded from gross income for the taxable year 1935 and prior years equals the aggregate premiums or con- sideration paid for the annuity. There are also exempt from tax | amounts received by gift, bequest, devise or inheritance; interest on ob- ligations of the District of Columbia, any Territory, State, county or mu- nicipality; interest on certain bonds issued by the United States Govern- ment or its possessions and on Fed- eral farm loan bonds; amounts re- ceived through accident or health in- surance or under workmen’s compen- sation acts for personal injury or sickness and damages received on ac- count of such injuries or sickness. Pensions Exempted. Pensions and compensation received by veterans from the United States are exempt; and pensions received from the United States by the family of a veteran for services rendered hy the veteran to the United States in time of war are exempt, as gifts. There is also exempt from Federal income tax the rental value of a dwelling house and appurtenances thereof furnished to a minister of the gospel as part of his compensation. Other items excluded from gross in- come are alimony and city jury fees. For official advice and help in your income tax problems call at room 1002, Revenue Building, Twelfth street and Constitution avenue, the cffice of the deputy collector of internal revenue, where . Government experts will help you make out your income tax re- turn, -administer the oath, and the cashier will receive your payment. Office hours there today 9 am. to 8 g,