Evening Star Newspaper, May 18, 1936, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Showers tonight, probably clearing to morrow morning; slightly cooler tonight, cooler tomorrow; gentle to moderate shifting winds. Temperatures—Highest, 88, at 4:30 p.m. yesterday; lowest, Full report on page B-8. Closing New York Markets, Page 16 57, ch ‘WITH SUNDAY MORNING EDITION ¢ Foening Starf The only in Assoriated Washington wi SATURDAY" rouiahon 130,710 (Some returns not yet received. evening paper the Press News and Wirephoto Services. Sheniallon, 140,810 No. 33,620. Entered as second class matter post office, Washington, D. C. WASHINGTON, D. C, MONDAY, MAY 18, 1936 —THIRTY-FOUR PAGES. #¥# TWO CENTS. GUFFEY ACT IS HELD UNCONSTITUTIONAL o DECISION SPLIT, 5 TO 3;BUMASKSEDEN 1935 RELIEF ACT VOIDED) 0 JININ CALL BY COURT OF AP @ Majority View Is Given by Sutherland. " PRICE FIXING IS CONDEMNED Labor Provisions of Act Also Ruled to Be Invalid. BACKGROUND— Guffey Dbill establishing little N. R. A. for soft coal industry was under heavy fire from earliest con- sideration in Congress. In answer to critics charging unconstitution- ality. President Roosevelt asked passage of law despite such doubts. Case testing law has been pend- ing in Supreme Court for many weeks; conflicting decisions had been rendered in lower courts. The Guffey coal act, passed to regulate hours and wages in the soft-coal industry, was declared unconstitutional in its entirety by the Supreme Court today. ‘The justices divided five to three in their opinion, with Chief Justice Hughes concurring in part. Justices Cardoso, Brandeis and Stone dissented outright from the majority opinion. . Chief Justice Hughes wrote separate opinion in which he held the act and code “may be sustained in relation to the provisions for marketing in interstate commerce, and the decision of the courts below, s0 far as they accomplish that re- sult, should be affirmed.” In other respects he agreed with the majority opinion. Industry to Be Affected. ‘The unfavorable decision is expected to have far-reaching consequences in the soft coal industry. While the leg- islation was being drafted, President Roosevelt considered it of such im- portance that he urged members of Congress “not to let doubts as to its constitutionality” stand in the way of its passage. The majority opinion was delivered by Associate Justice Sutherland, who said in part: “The conclusion is unavoidable that the price-fixing provisions of the code are so related to and dependent upon the labor provisions as conditions, considerations, or compensations, as to make it really probable that the for- mer being held bad, the latter would not have been passed. The fall of the former, therefore, carries down with it the latter. “The price-fixing provisions of the code are thus disposed of without coming to the question of their con- stitutionality, but neither this dis- position of the matter nor anything ‘we have said is to be taken as indi- cating that the court is of the opinion that these provisions, if separately en- acted, could be sustained. Left for Future Decision. “If there be in the act provisions other than those we have considered, that may stand independently, the question of their validity is left for future determination, when, if ever, that question shall be presented for consideration.” The opinion disposed of four cases. One was a suit brought by James Wal- ter Carter, president of the Carter Coal Co. of West Virginia, against his own company. Two others in- » NAVAL TREATY GOES TO SENATE FOR VOTE Walsh Terms Tri-Power Pact “Disappointing’”’—Sees Limi- tations Ended. By the Associated Press. ‘The new tri-power naval treaty signed by the United States, Great Britain and France went before the Senate today for a vote on ratifica- tion. Senator Walsh, Democrat, of Mas- sachusetts, who is expected to be- come chairman of the Naval Affairs Committee as successor to the late Senator Trammell, yesterday de- scribed the treaty as “disappointing.” Walsh said the pact “sets aside the slight restrictions and limitations that were established in the Washington and London treaties on the amount of naval armaments permitted each The treaty attempts to limit the size of ships in various categories, & $2,515,082,158 Is Expended Under Act Held Unconstitutional By the Associated Press. Up to March 31, the last date for which figures are available, $2515,082,158 had been spent under the relief act which the United States Court of Appeals ruled against today. The act appropriated $4.880,- | | 000,000 for winding up the Fed- !| eral dole and inaugurating work | | relief. Allotments which President Roosevelt has made from this fund include: Resettlement. $230,398,400; Administration, Works Progress $1,363,926,901; Administration, Bureau of Public Roads, $500,- 000,000; Civilian Conservation Corps, $527,479,450; Puerto Rico Reconstruction Administration, $33,377,380; Reclamation Bureau, $76,680,000; Navy Department, $17,542,716; Public Works Ad- ministration, $447,476,447; Rural Electrification Administration, $10,546,812; Treasury, $50,241 066; War Department, $146,341,- 286. In addition. $938,530,085 was spent on direct relief during the transition from the dole to work relief. Not all of the sums allotted has been spent. ARMY GOUP QUSTS BOLIVIA PRESIDENT New Council Ends Strike and Lays Plans for So- cialistic State. BACKGROUND— Tejada Sorzano became Presi- dent of Bolivia by a coup in 1934. His term would have expired in August. Continuance of state of war after end of 1932-35 Chaco conflict brought the administration into disrepute and also wrecked the Civilian Republican and Liberal parties. A mew Socialist organiza- tion called for a military dictator- ship, By the Associated Press. LA PAZ, Bolivia, May 18.—A pro- visional junta of soldiers and So- cialists ruled Bolivia today after the civilian government of President Jose Luis Tejada Sorzano fell in a peaceful military coup. The new council called war hero Col. David Toro back from the Gran Chaco to become President, gained suspension of a general strike move- ment and proclaimed as its objective to “orient the nation toward a social- istic state by prudent, gradual means, without convulsions.” Advices from the interior indicated absolute tranquility prevailed through- out this South American state of al- most 3,000,000 people. Followed Paraguayan Upset. The government overturn was the second to arise in the aftermath of the long Chaco War. Bolivia's soldiers seized power just three months after their former enemies in Paraguay ousted President Eusebio Ayala and installed Col. Rafael Franco as chief executive. Col. German Busch, acting chief of the Bolivian Army General Staff, led the swift, successful La Paz coup d'etat. 8o sudden and unexpected was the movement that President Tejada Sor- (See BOLIVIA, Page A-4.) but does not restrict their number. “Rainbow Over Broadway” A Thrilling New Serial —By— Alma Sioux Scarberry Begins Today on Page B-13 bRUKMAN GRAND JURY INDICTS PROSECUTOR New York Detective Also Charged With Conspiracy to Ob- struct Justice. By the Associated Press. BROOKLYN, N, Y. May 18—An assistant district attorney of Kings County and a New York City detec- tive were among eight persons in- dicted today by a special grand jury investigating the Drukman case. The indictments charged con< spiracy to obstruct justice in the pre- vention of indictments and prosecu- tion in the slaying of Sam Drukman. Among those indicted were Assist- ant District Attorney William W. Kleinman of Kings County and Guiseppe F. L. Dardis, former New York City detective. Also named in the indictment was Henry G. Singer, former assistant United States district attorney for the New York district. Singer is under a previous indictment in the case. COOLER WEATHER DUE TO FOLLOW SHOWERS Cooler weather is due in the Capital during the next 24 hours, following showers tonight, the forecaster pre- dicted today. : ‘This afternoon, however, will be warm, with the mercury expected to approach yesterday’s maximum of 88, recorded at 4:30 p.m. ‘The showers probably will let morning, PEALS States’ Rights Invaded, Is Ruling. 'TUGWELL UNIT | HELD ILLEGAL Opinion Hits Dele- gation of Powers * to President. In a startling and sweeping opinion, the District of Colum- bia Court of Appeals this morn- ing declared the $4,830,000,000 relief act of 1935 unconstitu- tional on the grounds it at- tempted an improper delegation of powers to the President, an invasion of States’ rights and a lack of definite authorizations. The opinion gives a doubtful status to numerous activities now under way with funds allocated from the $4.880,- 000,000 “pot.” among them being the low-cost housing, slum clearance and rehabilitation = programs under the Resettlement Administra- tion. At the same time, it creates a doubt which may result in sharp revision of the pending relief appropriation bill and in more specific drafting of all legislation. During the Roosevelt ad- ministration’s term of office wide and loose delegation of powers to the ad- ministrative branch has become a habit of the Congress. Immediate Appeal Planned. The decision was rendered specif- feally in the case of a model com- munity project of the Resettlement Ad- ministration in the township of Frank- lin, Somerset County, N. J., but the court took occasion to depart from consideration of this project alone and declared that the whole relief act “at- tempts to reach and control matters over which the Constitution has given no powers.” Solicitor General Stanley Reed said an appeal would be taken to the Su- preme Court at once. He told newspaper men that after a hurried reading of the opinion he believed it was “narrow” and confined to construction projects for shifting population under the resettlement ad- ministration. “I am not trying to minimize the opinion,” he added. *“We wanted it the other way.” A spokesman for Harry L. Hopkins said the work relief program would go on despite the decision. With Congress in session, he said, the act could be amended to meet the court’s objections. The Resettlement Administration had been allotted $230,398,400 of the works relief fund. Hopkins’ Works Progress Admin- istration had received the largest al- lotment of $1,363,926,901. Tugwell Is Silent. Resettlement Administrator Rex- ford G. Tugwell would make no com- ment on the opinion, but other offi- cials of the R. A. made the guess that no activities of the administration would be halted until the Supreme Court has made known its attitude toward the issue. The Franklin project, better known as Bound Brook, has been tied up since last January, when property owners and taxpayers attacked the project on the grounds of loss in tax revenue to the local community. Dis- missal of the injunction suit was ordered in District Supreme Court several months ago, but the plaintiffs carried the case to the appellate body. Referring to the act as the “most stupendous single appropriation ever made by a legislative body,” the court said the “emergency” of a depression was ““not sufficient to expand the power of Congress to tax snd spend (See RESETTLEMENT, Page A-4.) Pope's Coachman Dies at 91. Rianldo Jacchini, who has just died in Vatican City, Italy, at the age of 91, served in the Papal stables for 71 years, under five popes. During the long voluntary “captivity” of Leo XIIT within the Vatican Jacchini had or- ders to drive the Pope daily round the gardens, and if the pontiff slept to keep on driving until he awoke, operafing | FORARNSPARLEY |Would Include Germany in Move to Give Reich “Legitimate Army.” MAY FOLLOW LONDON ON ETHIOPIAN STAND French Socialist Leader Repeats His Appeal for International Peace Campaign. BACKGROUND— Leon Blum, president of the French Socialist party, emerged as victor in recent Deputies elections and will head France's mext cabi- net. The swing to the Lcft, seen in the vote for Blum’s “People’s Front,” has been considered a mandate of the people for swift, decisive action to stimulate employ- ment, keep credit conditions stable and improve France’s relations abroad. By the Assoclated Press. PARIS, May 18.—Leon Blum, pre- mier-designate of the incoming “Peo- ple’s Front” government, has asked British Foreign Secretary Eden to join him in calling a disarmament confer- ence, the foreign affairs expert, Per- tinax, reported today. Writing in the newspaper Echo de Paris, Pertinax said Blum proposed that Germany be invited to such a parley in an effort to give the Reich a legitimate military strength in pro- portion to its status among the world powers. Pertinax said the French Socialist leader agreed also to take no initiative in the Ethiopian controversy, but to follow London's lead fn its attitude toward sanctions and Italy’s annexa- tion of conquered East African terri- tories. Blum conferred here last Friday with Eden during the British secretary’s return trip from Geneva. Favors Democratic Regimes. The Leftist leader himself, writing in the Socialist newspaper Populaire, reaffirmed his desire for international co-operation toward European peace, but announced France's new govern- ment would look with greatest favor on regimes with democratic ideals. Blum, whose party won the greatest representation in the new Chamber of Deputies convening next Month, re- peated the appeal for an international peace campaign which he made last Friday before the American Club. The premier - designate declared “France is drawn toward those nations which remain faithful to democratic liberties,” but insisted peace was a task for all nations and must be won through a system of collective security. Labor Program Demands. Leon Jouhaux, general secretary of the Labor Federation, said today that before his organization would enter into the “people’s front” government it demanded a program including im- mediate nationalization of the arms industry, a 40-hour week without wage cuts, workers' participation in industrial control and an increase in the maximum school age. He told the federation's National (See ARMS, Page 2) HEARING LIKELY TODAY INDILL ALIENATION SUIT Former Senator, Co-defendent in $25,000 Action, Denies Charge. By the Associated Press. MOUNT VERNON, Ohio, May 18. —A $25,000 alienation of affections suit, brought by Mrs, Margie Heaton Dill against former United States Senator Clarence C. Dill of Spokane, Wash,, and Washington, D. C., was scheduled for hearing before Com- mon Pleas Judge Philip L. Wilkins today. Named as co-defendant in the suit was Mrs. Grace Dill of nearby Fred- ericktown, mother-in-law of the plain- tiff and sister-in-law of the former Senator. The plaintiff charged in her peti- tion that the defendants attempted to break her family ties with Wendell Dill, whom she married in May, 1934, the day after they were graduated from Predericktown High School. She charged that the defendants ar- ranged to have an illegal operation genormed on her in Washington, . C. The former Benator denied the charge in an answer to the suit. The mother-in-law also denied the charge. “WAR ON CRIME” By Rex Collier An Authentic Pictorial Strip Based on Official Records of the Federal Bureau of Investigation. Follow the G-Men Daily in the Most Exciting Manhunts in History BEGINNING TODAY ON PAGE B-12. WHAT WE WANT To KNow, Doc, IS How'LL THE WEATHER BE ON THE THTRD 0F NOVEMBER ! QF‘F}CG DRCHas GAssr SUNSHINE Flaws in Street Car Service Turn D. C. Patrons to Busses Irregular Schedules and Increasingly Slow Speeds of Trolleys Found Cause of Loss of Passengers. This is the second of a series of articles on the transportation prob- lem in the Capital. BY JOHN H. CLINE. ‘The street car always has been, and still is, the backbone of Wash- ington’s mass transportation system, but it is gradually losing ground. Slowly, the bus is teking over mare and more of the street car patrons— not because bus service is inherently better, but rather because the street car service furnished by the Capital Transit Co. has become so abominable on some lines that the public simply refuses to ride the cars. In 1935 the company owned 683 HOEPELS LSE PLEA TO CORT Appeals Tribunal Rules Against Representative and Son. ‘The United States Court of Appeals today upheld the recent conviction of Representative John H. Hoeppel of California and his son, Charles J. Hoeppel, of conspiracy to solicit $1,000 in payment for a West Point appoint- ment. Soon after the court's decision was made known, Assistant United States Attorneys David A. Pine and Samuel Beach announced they would nolle prosse another indictment still pend- ing against the Hoeppels, which charges the father and son actually solicited the $1,000 involved in the conspiracy case. Convicted about a month ago, after a long trial before a District Supreme Court jury, the defendants each re- received a sentence of from four months to a year in prison. They are expected to see a review by the United States Supreme Court, rather than accept the decision by the local appellate tribunal. Campaigns for Re-election. Representative Hoeppel now is in the midst of a heated re-election campaign, while at liberty under $2,000 bail. Because of the effect on his campaign of the pendency of the second indictment, Hoeppel two weeks ago asked United States Attorney Leslie C. Garnett either to nolle prosse it or to bring him and his son to im- mediate trial. Last week, Justice Daniel W. O'Donoghue, in a final ruling on this request, held it would be improper to try the second case while the conspir- acy conviction was still under con- sideration by the Court of Appeals. During the trial, the Government contended the Hoeppels conspired to accept $1,000 from James W. Ives, (See HOEPPEL, Page 2.) Readers’ Guide Death Notices___. Editorial - -A-15-16-17 -A-3 News Comment Features._A-9 street cars and 375 busses. The latter carried 20,822,408 passengers, while 130,219,872 passengers rode the street cars. Gross operating revenue from street cars was $7.844,855. while that from bus operations was $1,488.035. These figures clearly demonstrate that the street car is anything but passe in Washington, yet this im- portant mode of transportation has been allowed to fall on exceedingly evil days. An interesting side light on the type of emergency service the transit company is capable of affording is set forth in the report of a survey made by a representative of the Pub- lic Utilities Commission at Thomas (See STREET CARS, Page A-5.) PWASWAYOUT IS SEEN BY ICKES Suggests Aiding Unit Finan- cially by Expanding $250,- 000,000 Revolving Fund. BACKGROUND— Administration is asking $1,500,- 000,000 to finance relief program Jor coming fiscal year. With none of funds earmarked for either P. W. A. or Resettlement, it seems cer- tain that Hopkins and W. P. A. will be big spenders. As both of former agencies made plans for curtail- ment or discontinuance on July 1, however, President announced they may be continued in modified form by allocation from W. P. A. to them. By the Associatea Press. Secretary Ickes told a Senate Ap- propriations Subcommittee today that “a way out” of the Public Works Ad- ministration’s financial position might be found in the expansion of the $250,000,000 P. W. A. revolving fund and the relaxation of statutes govern- ing its operation. The P. W. A. administrator, whose organization is scheduled for curtail- ment under the $2,364,229,713 relief- deficiency bill before the subcommit- tee, testified behind closed doors. Downtown, as he spoke, the District of Columbia Court of Appeals held that the 1935 relief appropriation act tra; the Constitution. The pending bill, with its $1,425,000,000 relief fund, is modeled along similar lines. Senator Hayden, Democrat, of Arizona, told reporters after Ickes testified that the Secretary had “in- dicated” that his needs in securing (See ICKES, Page A-2) BLANTON T0 SEEK SCHOOLBOARDEND Offers House Resolution to Abolish Educational Set- Up in District. Reviving a fight that was lost a year ago, Representative Blanton, Demo- crat, of Texas, and chief sponsor of the “red rider,” today introduced in the House a resolution to abolish the present Board of Education and to give control of the public schools of Washington indirectly to the District Commissioners. The same measure would prohibit the judges of the various courts of the District from teaching in law schools | and would fix academic requirements | for law degrees. Blanton’s proposal, first suggested by him last April 14 and upon which he conferred at length last Friday with the Commissioners, was inter- preted by school authorities as a “smoke screen” in his fight against the Sisson bill to repeal the “red rider.” It also was seen as another shot in the fight of the Texan against Dr. Frank W. Ballou, superintendent, against whom he has waged a con- stant battle since the last session of Congress. Declines to Be Quoted. Blanton declined to be quoted on his proposal today. The resolution provides that the present Board of Education be abol- ished July 1 and that there be sub- stituted a new board, appointed by and responsible to the Commission- ers, to be known as the “Trustees of the Public Schools of the District of Columbia.” The present board is ap- pointed by the justices of the District Supreme Court. ‘The new board would be composed of nine members, as at present, three to be appointed each year for three- year terms. They would have power to appoint & “supervisor of education” to take the place of the present superin- tendent of schoois. Instead of the sal- ary of $10,000, now paid to Dr. Ballou, (See BLANTON, Page 3.) ——— TOUR IN GERMANY 44 American Students Off on Bus Trip. BERLIN, May 18 (#).—Forty-four American exchange students from 36 colleges in the United States started on a week's bus trip through Germany today. The journey, under the auspices of the Carl Schurz Society, commemo- rates the tenth anniversary of the organization's founding. The trip will end May 23 with a visit to Schurz’s birthplace near Cologne. The students are attending 18 dif- erent German universities. Walkout by House Conferees On D. C. Supply Bill Revealed BY JAMES E. CHINN, ‘The supplemental report on the 1937 District supply bill, released today by the House Subcommittee on Appro- priations, revealed that House con- ferees on the measure walked out of a recent conference with Senate con- ferees because the Senate group refused to have a stenographer take down the testimony of Lovell H. Parker, promi- nent tax expert, who made a tax survey for the Washington Board of Trade. Representative Blanton, Democrat, of Texas, chairman of the House Ap- I made the May 13. Parker, who said he was in an anteroom when the House committee walked out, claimed he did not know the reason for it. He admitted he testified before the Senate committee after the conferees left, but declined to disclose whether & steno- graphic record was made of his state- ments on the ground that he testified at an executive session. The supplemental report showed Blanton questioned Parker at length about his employment by the Board of Trade as a tax expert, for which he was paid $5,500. Neither Blanton nor other members of the subcom- mittee, however, questioned him about the features of his report which showed Washington's high tax burden in comparison with 43 other cities. Intsead, Blanton, through a series of questions brought out his usual argument that Washington has a low real estate tax. fired at questions Parker obviously were intended to dis- as a tax expert as well as he prepared for the Board LATESTTAXPLAN YIELD 642,000,000, TREASURY THINKS Senate Committee Still Is Groping for Ways Out of Revenue Maze. THREE SUBCOMMITTEES NAMED BY HARRISON Word Passed President Desires Congress to Stay in Session Until Bill Is Passed. BACKGROUND— President Roosevelt last Febru- ary recommended substitution of tax on undistributed corporation profits for existing corporate levies, stressing “simplification” possible by following this procedure. Two months later, House passed bill fol= lowing suggestion, but so compli= cated that few members understood ramifications. Senate Finance Committee is now considering raising extra revenue through higher rates for eristing corporate and individual tazes. By the Assoctated Press. The Tareasury estimated today that the latest compromise tax plan of the Senate Finance Committee would proe duce $642,000,000, of which $173,000,~ 000 would come from individual ine come taxpayers. Indicative, however, of the fact the committee still is groping for an agreement on how to rewrite the tax bill as it passed the House were re- quests for additional estimates on other ways of raising the $623,000,000 of permanent revenue sought by Presi- dent Roosevelt. Chairman Harrison named three subcommittees, to report Wednesday morning on the “windfall” tax feature of the measure, on a provision for re- funds on floor stocks on hand at the time of invalidation of the A. A, A, and on “the question of insurance that might be applied to pay the Goverment's taxes.” Adjournment Must Wait. ‘The committee planed no further sessions until Wednesday. In the face of the delay in reaching an agreement on the tax controversy, word was passed in responsible Capitol Hill sources today that President Roosevelt considered tax legislation es- sential and believed Congress should stay in session until a bill goes on the statute books. ‘The Treasury, Harrison told newse men, handed over figures today to show also that, by retaining permae nently she present excess profits and capital stock taxes, which would be kept only temporarily and at half rates under the House bill, $168,000,000 of annual revenue would be produced. In addition, the Treasury estimated that $107,000,000 in additional income would be brought in by putting a 35 per cent tax on undistributed corporate income in excess of half of total ine | come. Individual Burdens Increased. The compromise tax plan would place an 18 per cent tax on corporae tions’ statutory net income, which the Treasury said would yield $244,000,« 000; a 7 per cent tax on undistributed adjusted net income, which would produce $255,000,000, an increase thae present normal income tax from 4 to 5 per cent, which would bring $173,« 000,000. Corporation dividends: to stockhold« ers would be subjected to the latter tax from which they now are exempt, and this alone, Harrison said, would account for $113,000,000 of the $173, 000,000. Although he said last week he thought the bill would be reported out by the middle of this week the chairman told reporters today he had “an optimistic hope” for the end of the week. Split on Individuals’ Tax. On the proposal to increase the normal tax rate on individual income from 4 to 5 per cent, the committes was split so badly that it appeared uncertain whether it could obtain & place in the bill. There also was division in the come mittee as to how high the surtax on undistributed profits should be, but sentiment was veering toward a stiffer levy than was contained in the compromise which committee members considered last week. That compromise would have placed a 7 per cent surtax on income which corporations fail to distribute to stockholders in the form of dividends, Some members of the committes argued privately that the compromise plan would meet with no more favor, and perhaps less, among business men, (See TAX, Page A-2) U. S., FINLAND SIGN 1 TRADE AGREEMENT Pact Will Become Effective for Three Years If Ratified by Countries. [ By the Assoclated Press. The United States and Finland to« day signed a reciprocal trade agreee ment designed to expand their come mercial relations. The pact, marking the fourteenth 1ong | to be negotiated by this Government with a foreign nation, was signed at the State Department by Secretary Hull and Eero Jarnfelt, Minister from Finland. Details of the agreement tempo- rarily were withheld, although the State Department said it would be- The supplemental report covering '—“—;5,@. WANKOUT, Page A-2) come effective for an initial period of three 30 days after it i3 ratified two countries,