Evening Star Newspaper, June 21, 1936, Page 2

CONGRESS PASSES /SHIP SUBSIDY BILL Filibusterers Score Victory ' by Holding Up Appro- " priation Bill, By the Assoctated Press. A victory for Senate filibusterers was record yesterday with final congressional approval of legislation to .expand the American merchant marine through direct Government subsidies. With that measure started to the White House for President Roosevelt's signature, a Senate group which had blocked, by hours of talk, approval of a conference report on the $982,620,- 872 Treasury-Post Office appropria- tion bill, sat smiling while the supply bill was voted. The Senate adopted in connection with the bill a resolution by Senator Barkley, Democrat of Kentucky, for an investigation by a special commit- tee «f five Senators on ocean trade routes between the United States and South America: Purpose of Inquiry. ‘The inquiry would seek to deter- mine the necessity of additional ships, contracts between the United States and any steamship line and what obli- gations the Government owes toward security holders of any steamship line or other operators on account of ex- isting ocean mail contracts. The speech-making—aimed at hold- ing up final action on the appropria- tion measure until the House acted on the subsidy bill—went on for sev- eral hours Priday and threatened plans to adjourn Congress last night. It started early Friday afternoon when the Senate passed a substitute to a House ship subsidy bill. The Senate measure provided for Govern- ment grants up to 50 per cent of the cost of building vessels. Shortly thereafter, Chairman Glass of the Senate Appropriations Com- mittee sought approval of a confer- ence report on the Treasury-Post Of- fice appropriations bill, which in- cluded $26,500,000 for ocean mail contracts under the present mail sub- sidy system. A number of Senators headed by Black, Democrat, of Alabama and Clark, Democrat, of Missouri prompt- ly voiced a determination to talk as long as necessary to keep the appro- priation measure from becoming law before the House had acted on the ship subsidy bill i Opposed Present Practice. ‘The filibusterers, vigorously opposed to the present practice of awarding contracts for transporting ocean mail, feared that if money for continuing it was provided the House would not pass the subsidy measure. Under procedure which required a two-thirds vote, the House FPriday| night refused, 118 to 83, to agree to the Senate amendments. Yes‘erdsy,}MRA. ROBERT BAINES, smerl however, it approved the Senate measure, 225 to 21, with one minor | group of eight at a bridge luncheon | |at & popular suburban tea room the | amendment. Quickly, Senator Glass, who had been awaiting that moment for sev- | eral weary hours, asked approval of | manner in which she wanted t.he‘ the appropriation bill conference re- port. That measure was sent to the ‘White House without debate or rec- ord vote. During the House debaie Chair-| man Bland of the Merchant Marine Cogmittee said he was authorized by Secretary of Commerce Roper to say he wanted the bill “in order that we may get away from ocean! mail contracts and get down to a| basis providing employment in every State of the Union.” The measure would create a United States maritime commission of five| members to administer the program, which is intended to increase the amount of commerce handled by American ships and to provide ad- | ditional vessels for use in the event| of war. With the Government paying up to 80 per cent of the cost of ships, the operators would be required ordinarily ®0 put up 25 per cent of the cost in cash. The Government would lend the remaining 25 per cent at 3% per cent interest to be repaid in 20 years. The Government, however, could build a vessel itself and charter it to reputable operators. Subsidies also ‘would be paid for operating the vessels, the amount to be determined after an investigation of the relative costs here and abroad. Limit on Salaries. Salaries paid officials of subsidized companies would be limited to $25,000 & year. Holders of ocean mail contracts can- celed under the new legislation, as well as the Government, would be per- mitted to appeal to the Court of Claims from any award by the Maritime | Commission. All net profits in excess of 10 per cent realized by the shipbuilder on a vessel constructed with the aid of a Government subsidy would be subject to recapture by the Government from the shipbuilder. All net profits in excess of 10 per cent earned by a private owner on | vessels aided by the operating subsidy are to be shared equally between the Government and the private owner. SENATE CONFIRMS TWO The Senate last night confirmed the homination of Richard L. Disney of Oklahoma and Miss Marion J. Harron of California for 12-year terms on thie Board of Tax Appeals. Disney, former member of Congress Succeeds Herbert F. Seawell, and Miss Harron takes over the post of Miss bat Annabel Matthews. The terms of both outgoing mem- bers had expired. Parole (Continued From First Page.) on payment of $10,000. The utilities executive immediately communicated with Secretary of the Treasury Mor- genthau, who ordered an investigation and thanked him for his public service. ‘The inquiry showed that McElhill, Hardgrove and Henning conspired to have the matter decided in favor of McCarter. Although the three men did not ap- peal from their conviction, they vigor- ously denied their guilt when they ap- peared before the Parole Board. The board stated “it has neither the right nor the inclination to go behind the conviction. It cannot substitute its judgment on the facts for that of the jury. Applicants pleaded not guilty and were given a jury trial which lasted approximately a week. They were represented by eminent counsel. The sentence imposed seems rather light in view of the nature of the " The prisoners have 14 months more o serve. Washington Wayside Tales Random Observations of Interesting Events and Things. PRIVATE LIVES. HE combination of s tipsy wife and a jealous husband beat an innocent taxi driver out -of his fare the other night. . The hacker was hailed in front of ‘a downtown hotel by a well- dressed man and woman, and the man said before disappearing: “Take this lady home to—Con- necticut. avenue.” The lady, quite obviously ready to go home, was delivered forthwith at the indicated address. She asked the hacker to ring the*bell for her. The driver complied and was met by an irate husband. He had to talk fast to keep the man from swinging on him. After he explained the hus- band said: “Take her back where she came from!” N “But that's impossible,” prousud} the hacker, “the gentleman she was with is not there.” “Where do you take people who can't pay the fare?” “To the police,” the hacker said. “Well, take her there,” the husband said, closing the door. But the hacker decided he'd rather take a three-zone loss. He helped the M4dy up the steps, aided her with the latch key, closed the door behind her and drove away before the fireworks got under way. % * % * % UNTHANKFUL. If Gov. Landon, sitting out there in Topeka, Kans., knew what a Washington tari driver knows, he would start making speeches in be- half of Franklin D. Roosevelt. The driver, who has made a thorough study of the presidency, wouldn’t take it on a bet. “It's the most unthankful job in the world,” he summed up to a fare the other afternoon. “Absolutely unthankful.” * x ok % PARTY. Spring, planned to entertain a other day. She gave explicit direc- tions concerning the menu and the | session. This year’s more significant THE SUNDAY STA For Permanent Legislation Soil Conservation, £ Neutrality, Bonus Rural Electrification and Relief Mea- sures Among Those Enacted. By the Associated Press. The Seventy-fourth Congress rolled up a record for permanent legisia- tion rivaled by few, if any, peace- time Congresses in American history. While the Seventy-third Congress, in the first half of the Roosevelt term, devoted most of its time to emergency laws, the Seventy-fourth turned to long-range legislation of a perma- nent nature. 5 In this year's session, the Congress added half a dozen' major laws to those enacted last year in its first crop included the new farm and soil conservation act, additional neutrality legislation, the cash bonus law, the rural electrification and re- lief, in addition to the tax law. Major laws enacted last session in- cluded the social security act, the Wagner labor law, the already invali- dated Guffey coal act and the stiffer taxes on the wealthy. . Long Debate Lacking. Despite the importance of this year’s legislative program, the ses- sion was marked by the absence of long Senate debate which has delayed most major legislation in years gone by. Veteran Senators noted there was not a single prolonged debate this session comparable to those which have made the Senate famous. Some attributed the change to the one-sided party line-up in the Senate, where the Democrats have a two- thirds majority. Others contended there was a growing disposition to settle controversies in committee. Even political debate was less in evidence this year than in the normal presidential election year. There were no more than one or two of the “rough and tumble” exchanges of the kind which Senators like Harrison of Mississippi and Watson of Indiana used to stage. Calm metheds also prevailed for most of the session in the House, where Speaker Byrns presided until his recent death. The only revolt from administration leadership was on the cash bonus bill. The second session was scheduled to be a brief and routine affair, winding up in early Spring, long before the 1 political conventions. But the Supreme | Court upset this program by invali- dating the agricultural adjustment act, which threw the budget out of kilter. Bonus Passed Over Veto. By the time the administration caught its breath from this blow, Con- gress had disposed of the cash bonus bill and the neutrality legislation which had looked like the only two major battles of the session. The bonus bill was passed over President Roosevelt's veto. Working swiftly, Congress patched up the farm gap with the soil conserv- ation act, authorizing benefits of $500,- 000,000 annually. But the budget prob- | | | table decorated. Appearing with her group on sched- uled time, she found a party of eight already at her table and about half way through the menu. Inquiry de- veloped that another reservation for eight was made by a man named Baines, who had simply asked that a nice luncheon be prepared. “Mr.” Baines arrived first and his perty received the special treat- | ment. | * X X % WELL-KENOWN MAN. What is fame? For mearly three years R. Walton Moore of Virginia has been Assist- ant Secretary of State, and yet the Democratic National Committee, in its roster of delegates to the con- vention in Philadelphia, lists his address as House of Representa- tives. He quit Congress siz years ago. * x * % GAME. TH!: heavy afternoon traffic was halted at Fifteenth and I streets yesterday—not by a red light—but by a tiny Pekinese, who suddenly decided he was tired of riding in his master’s truck and jumped out. Once out, he evidently became piqued by the idea that it was a grand time and a grand place to play hide and seek. Under the truck he went, crouched low, until his master’s hand almost grasped him—out the other side he went and under a big limousine. Again he wiggled from under the reaching hand and under another car. After about five minutes the Peke gave up and the grinning crowd ON'!: of three young men dictating a letter to a public stenographer at a Washington hotel gave utterance to an idiom that left him quite flustered and the stenographer quite indignant. He had just finished the paragraph upon which he was expert when he turned to one of the others and re- marked: “Well, Jerry, it's your turn at the ‘The next few paragraphs, on which the girl took no notes, were full of his apology. * x * % SPIGGOT. TflEevflo{dflnkhokmoddfu‘m at a filling station at Georgia and Kanses avenues. Funny form, too, if you could only have been there to see it. lem proved more difficult. ‘While the House drafted the new | revenue bill, the legislative mill slowed | | almost to a stop. For two months not |a major piece of legislation went to the | ‘White House. The Senate busied itself for a couple | "or weeks with the grial of Judge Hal- | | stead L. Ritter of Florida, who was | convicted, 56 to 28, on impeachment charges brought by the House. President Roosevelt submitted his | request for a new $1,500,000,000 relief fund and the House went to work on that. Meanwhile, Senator Norris, Re- publican, of Nebraska, worked out a! compromise with the administration on the rural electrification bill. It was finally passed, authorizing s 10-year $410,000,000 program. Investigating committees at both ends of the Capitol heiped to fill the gap. A House committee, investi- gating Dr. Francis E. Townsend and his old-age pension organization, wound up with contempt charges against him. Lobby Probe Controversy. The Senate Lobby Committee be- came engaged in a controversy over its right to subpoena the telegrams of persons and organizations it was in- vestigating. It finally shut up its hearings, as the Munitions Committee had done earlier when it became in- volved in a backfire over Woodrow Wilson's record. Between other measures, Congress slowly ground out the regular annual appropriations bills, carrying funds totaling almost $10,000,000,000, in- cluding the extraordinary bonus ex- penditure. . When the House finally passed the tax bill, still somewhat short of the revenue asked by the Rresident, the Senate rewrote the measure from top to bottom and sent it to conference. A bitter deadlock there was broken only Thursday afternoon.. The relief appropriation, cut to $1,- 425,000,000, was carried in & deficiency appropriation bill which totaled $2,.- 375,000,000, including huge appropria- tions for the social security act and governmental Jepartments. While Congress fumbled with the tax and relief bills, the Supreme Court invalidated the Guffey coal law and pressure grew for new legislation on ‘The Wagner housing bill, ealling for a four-year program involving $460,- 000,000, was passed by the Senate, but ran into trouble in the House. A substitute Guffey-Vinson coal bill was pushed through the House and ran into- a Senate filibuster. A bill for the registration of lobbyists passed both houses, but the House turned down the conference report, killing it. New Protection Demands. Floods in the East brought demands for new protective measures. An omni- bus $320,000,000 flood-control bill was passed, almost simultaneously with a $272,000,000 measure for protecting the lower Mississippi Valley. The London naval treaty, limiting the size of ships, but not the num- ber, was negotiated in London and submitted to the Senate.. It was rati- fied almost without discussion. Some of the other important legisla- jon passed at this session includes: Repeal of the tobacco, cotton and potato control acts, in view of the | Supreme Court decision on A. A. A. ‘The $197,000,000 agriculture appro- priation bill, carrying a “death sen- tence” for President Roosevelt's West- ern “shelter belt” tree project. Extension for one year of the Hous- ing Administration’s authority to in- sure loans of private institutions for home and building repairs. New tobacco legislation to permit State compacts to regulate crops. Authority for unlisted securities trading to continue. Extension of the Pederal aid high- way act, authorizing appropriations of $125,000,000 for 1938 and 1939, to be matched by the States. Simplification of the liquor tax laws, with lower duties on domestic sweet wines and creation of a separate alco- hol administration. Anti-price discrimination legislation to protect small merchants from com- petition from big chains. Congress (Continued Prom First Page.) | portant subcommittee in charge of drafting tax bills, including this ses- sion’s big revenue measure. Soon after the Senate had adopted, |42 to 29, the conference report on the revenue measure, the coal bill was | called up and the filibuster was on. Senator Holt announced he was ready to filibuster all night if neces- | sary. On his desk was a 1,500-page book on natural gas, which appeared to corroborate the statement. Leaders Pass Word. Leaders privately passea the word they were willing to let the measurs £0 by the boards should adjournment be threatened. Senator Guffey, Democrat, of Penn- sylvania, co-author of the legislation, told the Senate “the present measure will be practical and effective in regu- lating the coal industry, that its ad- vantages will far outweigh its dis- advantages and that its enactment at the present session of Congress will definitely aid in the restoration to a great national industry a reason- able degree of that peace and pros- perity which it so richly deserves.” Senator Vandenberg, Republican of Michigan, one of the first speakers sgainst the bill warned that “the entire and complete world experience in price fixing on basic commodities points squarely to ultimate suicide of the commodity.” During the afternoon, when the tax bill had cleared the Senate, leaders hailed it as signalizing the end of the session. Two big hurdles on the road to adjournment had been cleared earlier in the day when Congress stamped its approval on the ship sub- sidy bill and the Treasury-Post Office appropriation measure. Byrd Assails Bill. During the tax debate Senator Byrd, Democrat, of Virginia, assailed the bill on behalf of a group of Republicans and Democrats irreconcilably opposed to & high tax on undistributed corpora- tion profits. He called the measure a “mongrel, hybrid compromise.” He said it would damage the Demo- cratic party and the entire Nation and “completely revolutionize the philos- ophy of corporate taxation in this country.” spiggot. The expression was that of a man who could hear water running, but could neither feel nor taste it. He 10,000 Cyclists Assemble. Ten thousand cyclists from all parts of England attended the annual service of remembrance at the National Cy- Arguing that it would prevent cor- porations from building up surpluses, the Virginian roared that the bill “will do more to entrench monopolies of this country than anything else we have ever done.” Senator Gerry, Republican, of Rhode Island, jumped into the attack on the legislation with the statement that the Treasury had not given the new tax plan the amount of study “that would Lafollette Offers Defense. But from Senator Lafollette, Pro- gressive, of Wisconsin came a sturdy'| defense for the compromise bill. He called it “an honest and just ecom- clists’ War Memorial in Warwickshire. ' promise of fundamental differences.” | representatives. 4 Next he sought to refute arguments of Byrd that the measure would injure small corporations that are compelled to retain all their earnings for busi- ness purposes. The Virginian, Lafollette said, sup- ported a tax bill in the Senate which would have increased the tax for a $2,000 corporation keeping all its earn- ings 71 per cent over exisiing law. whereas the compromise would sin- crease the tax for such a firm only 15 per cent. Sharp as the debate was, it ended promptly at 2:30, when the time came, by prior agreement, to yote. The roll was called and the bill was finally enacted. The bill represented the answer of Congress to President Roosevelt's re- quest for $620,000,000 of permanent additional revenue to finance the new farm program and the extra vost of paying the bonus in advance of the 1945 due date and for $517,000,000 of temporary funds to plug the gap ieft in this year's Federal income by invalidation of A.A.A. processing taxes. Graduated Tax Suggested. On March 3 Mr. Roosevelt suggested that the $620,000,000 be produced by a graduated tax on undistributed cor- poration earnings, which, he said, were being used by stockholders to avoid comparatively high income taxes. The House passed a bill providing for levies graduated up to 42! per cent, depending on the percentages of undistributed corporate earnings. The Senat= balked immediately, and drastically revised the measure so as to include a 15'% to 18 per cent tax on all corporation income and a 7 per cent tax on undistributed corporate profits. Then in conference, the final form of the corporation tax plan was worked out. It included a tax of 8 to 15 per cent on all corporation income, with & supertax of 7 to 27 per cent on undistributed income. WASHINGTON, Record Set by 74th Congress ROOSEVELT'S HOLD ONPARTY ASSURED D. C, JUNE 21, 1936—PART O F Two-thirds Rule Repeal Due| to Cement Control of Delegates. BY JAY G. HAYDEN. PHILADELPHIA, June 20.—If James. A. Farley and the other Democratic managers have their way—and there is every evidence that they will—the creation of the national convention meeting here on Tuesday will be as completely the personal party Franklin . Roosevelt as fascism is of Benito Mussolini or Naziism of Adolf Hitler. The candidatt will be Roosevelt; the platform will be Roosevelt; and, far more important, perhaps, from the standpoint of the party’s future, its rules will be 20 changed as to make it easy for President Roosevelt, in the event of his re-election this year, either to nominate himself for a third term or choose. his successor. As respects the latter proposition, the cat slipped from the bag Friday when Farley admitted that the Roose- velt proposal to repeal the two-thirds rule, which has governed sll Demo- gratic nominations since the time of Andrew Jackson, does not contemplate Tepeal also of the “unit rule” The States, he said, would be left to decide :?ur themselves as respects the unit le. This would mean, in effect, not nomination by a majority of individ- ual delegates, as is the practice in Republican conventions, but nomina- tion by a group of State majorities, possibly controlled by much less than & majority of the individual dele- gates. Control Held Assured. Under this condition, it is hard to conceive of an administration in power, with its hoard of pay roll sat- ellites, failing to econtrol a national convention, The rule of Democratic conven- tions ajways has been that a unit rule, applied by a State eonvention, is recognized unless there is a pro- vision of State law to the contrary. | The only States with laws on the| | subject are those which elect their | delegates in popular primaries, and even in the latter group California is an exception. In California the entire delegation is elected en bloc by | & majority of the voters participating in the primary. In 1932, for example, John N. Garner received all of the California votes, although his dele- | | gates won over the rival slates of | | Roosevelt and Alfred E. Smith byi much less than a majority of the; total vote cast, and both of the lat- | ter carried several congressional dis- | tricts. | In all but & handful of the States| the unit rule still prevails in the Democratic party and serves to si- lence recalcitrant minorities. This is the main reason why the Democratic conservatives this year quickly gave up all hope of register- ing their opposition in the national convention. They might have elected 8 scattering of anti-Roosevelt dele- | gates in a number of States, but, un- | | der the unit rule, these would have| been barred from expressing them- | selves. In the face of this situation most of the conservatives chose to stay at home. G. O. P. System Different. The Republican system is entirely | different. That party has no two- thirds rule and no unit rule. A Re- publican State convention can in- struct its delegates to vote as a unit, but, if any individual so in- structed chooses to vote otherwise, his vote is recorded. Thus, every decision in & Republi- can convention is made by an actual majority of the individual delegates. The move to repeal the two-thirds rule seems likely to provide the one fight of the present eonvention, but | the administration is sure to win, and this again because of the existence of the unit rule. Farley, for months, has been busily traveling over the country, making sure that as many of the delegates as possible were for Mr. Roosevelt and whatever Mr. Roosevelt wants. When the test comes on the two-thirds rule, he has only to see that the unit rule is slapped on delegations from enough States to insure him the victory. The one region which Farley has| apparently been unable to line up on this proposition is the South, the veto Power of which in Democratic conven- tions, under operation of the two- thirds rule, dates back to slavery days. In the eyes of the Southern delegates, the proposal to repeal this rule now is just another feature of the Roose- velt drive to wipe out States' rights and to concentrate all power in the Executive, both of the party and the Nation, and it is chiefly on this ground that the battle will be waged against its adoption. (Copyright, 1936. by the North American Newspaper Alliance, Inc.) TEACHERS URGED TO REFUSE REPLY Ux:ion Committee Asks They Prove Loyalty to Con- stitution. Washington teachers .were urged yesterday by the Executive Committee of the Teachers’ Union “to prove their loyalty to the Constitution” by declin- ing to answer the Blanton question- A special provision was made for small corporations by allowing a 7 per cent undistributed tax to apply to the first 10 per cent or first $5,000 of undistributed earnings, whichever ‘was greater. - Corporate dividends, in the hands of stockholders, would be subject_to the 4 per cent normal income tax. In addition, the bill would retain the existing excess profits and capital stock taxes, but with the rate of the latter cut from $140 to $1 per $1,000 of stock. { TAX BILL DENOUNCED BY BUSINESS COUNSEL James A. Emery, general counsel of the National Association of Manufac- hes:tened business men,” 2 a statement, “will understand its terms, but they not fall to understand the reckless irresponsibility e naire, inquirgin into their religious, Ppolitical and economic beliefs: The questionnaire brought the strong condemnation of the Board of Educa- tion, parent-teacher organisations and various members of the House. . added an exposition of the legal prin- ciples involved. It stated ‘that questions & teacher’s religious or mwn-f are in direct violation of the Con- stitution and the Bill of Rights. No law requires answers to the Blanton igures in Jewel Hold-Up No. 1—Mr. and Mrs. Carl Peterson in their jewelry store, where they were held up, bound and gagged late yesterday. No. 2—Joe Suraci, a barber, who, with C. B. Spates, assistant building superintendent (No. 3), broke into the shop and re- leased the Petersons. Hold-Up (Continued From First Page.) Peterson, the others were tying up her husband behind the counter. After securing the money from the register, the bandits took all the dia- monds and watches in the store. They left the boxes behind, putting all the Jjewelry in their pockets before leaving. Peterson finally removed enough of the tape to call out of the window for help. His cries were heard by a barber emploved in the building, Joe Suraci of 1110 L street, and Virgil Galotta, 1410 N street. Summoning C. B. Spates, 4338 Chesapeake street, assist- ant building manager, the two broke in the glass door and released the Petersons. Suraci kicked in the panel and Spates received a slight cut on finger when he intercepted a sharp ' % —Star Staff Photos. to penetrate Suraci'’s leg The store proprietor said none of his stock had been insured since he moved his business to the second floor. Every srticle taken belonged to him and was paid for, he stated. At the time of the first call. the man said he was going to purchase a ring and gave his name as “Mr. Sla- vin.” Peterson said. He also said this man spoke with a decided foreign ac- cent, while the others had the ap- pearance of Americans. All were well dressed. Of the money taken, $9 was from Mrs. Peterson’s pocketbook. She said the bandit who bound her said he would “blow her brains out” unless she | told him the location of the money. Police made a thorough investiga- tion of the store and took photo- graphs in an effort to locate finger- prints, Summary of Tax Bill Present 12Y2-15% Corporation-Income Tax Re- placed With 8-15% Rate—Undistributed Corporate Dividends Receive Levy. BY the Associated Press. 1 Here is an outline of the tax bill which received final congressional ap- proval yesterday. I Corporation taxes: | 1. Repeals present 12!, to 15 per cent corporation income tax and sub- stitutes a schedule of 8 per cent on the first $2,000, 11 per cent on the| next $3,000, 13 per cent on the next $25,000, 15 per cent on all over $40,000. 2. Provides an entirely new tax principle by taxing corporation in-| come withheld from distribution in| dividends to stockholders at 7 per cent on the first 10 per cent withheld, 12 per cent on the next 10 per cent, 17 per cent on the next 20 per cent, 22| per cent on the next 20 per cent and 27 per cent on all over 60 per cent. To avoid a “tax on taxes,” the un- | distributed profits tax would apply | only to corporate earnings remaining | after payment of the normal income | tax. “Cushion” Provided. ‘To provide a “cushion” for corpora- tions with net incomes of less than $50,000, the minimum 7 per cent tax on undistributed earnings would apply to the first $5,000 of income, regard- less of what percentage the $5,000 might be of the adjusted net income. 3. Applies the 4 per cent normal in- | come tax to corporation dividends, now | subject only to income surtaxes. 4. Taxes banks and insurance com- panies at & flat 15 per cent rate and exempts them from the undistributed profits tax. 5. Applies the normal corporation income tax to corporations in receiv- ership and exempts them from the | undistributed profits tax. 6. By a system of credits, give spe- cial treatment to corporations with contracts not to pay dividends or con- of dation of corporations so as to facili- tate simplification of corporate struc- tures and produce more revenue. Tax on Foreign Firms. 9. Taxes foreign corporations en- in the income from American sources, except that in accordance with treaties the rate for Canadians and Mexicans may not be less than. 5 per cent. tions “improperly accumulating sur- piuses” for all corporations subject to the undivided profits tax 11. Cut personal holding company X rates 12 per cent. 12. Reduces present tax exemption of 90 per cent of intercorporate divi- dends to 85 per cent. “Windfall tax"—Imposes 80 ta. per | cent tax on persons described as “un- justly enriched” by noa-payment of old A. A. A, processing taxes. Provides Tax Refunds. Refunds—Provides for refunds and authorizes $42,000,000 appropriation, | of the A. A. A. tax on processed com- modities exported or sold to tax- exempt instititions. Also provides for refunds of taxes on floor stocks on hand whea the A. A. A. was invali- | dated. Claims for less than $10 would not be permitted. Import taxes—Subjects imported fish and vegetable oils to excise taxes of 2 to 42 cents per‘ pound. Miscellaneous—Repeals jewelry tax; reduces fur tax from 10 to 3 per cent and lifts exemption of articles sold for less than $75; directs the President, under certain specific conditions, to | limit importation of red cedar shingles | from Canada; limits the tax on sale |of oil or gas properties or interests in them to_30 per cent of the selling B price. Tightens the “irrevocable” provision of the trust law. Canals Under ‘German Cities. Underground canals extend more | MA than 400 miles under the streets of | Munich, Germany. Tax Bill Yield $630,000 Expected From New Corporate Levy— Total $795,000,000. Py the Associated Press. The yield of the 1936 revenue bill, which cleared Congress yesterday, was broken up as follows in rough | § estimate of Senate-House conferees: | B New corporation tax system, $630,- 000,000. Changes in taxation in cases of liquidation of corporations, $33,- 000,000. Tightening of law applying to taxation. of “irrevocable trusts” Reductien of tax exemption of intercorporate dividends, $10,000,000. Import taxes on fish and vegetable oils, $10,800,000. “Windfall” tax on persons Who avoided payment of A. A. A. process- b specified | ROOSEVELTTOILS - AT PILE OF BILLS Works Far Into Night Sign- ing Measures—Makes Draft of Speech. BY J. RUSSELL YOUNG. In the quiet of his study President Roosevelt last night worked at his desk while he kept in close touch with his lieutenants on Capitol Hill during the closing hours of the Congress At 11 o'clock the President remarked that he had just put his signature to his ninety-fifth bill of the day. He still had nearly a hundred more bills, passed at the fag end of Congress, to dispose of. Along with this work the President devoied attention to making a rough draft of the speech he will deliver next Saturday following his renomination by the Democratic National Conven=- tion. He also gave further study to fhe drafting of the platform to be pre- | sented to the Philadelphia convention. | Among the many bills signed last night by the President were two of interest to the District. One was a Senate joint resolution which rati- fies appointment of Issac Gans to |another term on the Alcoholic Bev- erage Control Board This legisla- tion was necessary because Gans was past the retirement age. The other local bill was a Senate joint resolution which declares a legal holiday in the District on De- | cember 26 next. This was enacted | because Christmas will fall on Pri- |day and it was the purpose of Con- |gress to give Government employes |a full holiday with pay on the day | tollowing. In the course of the day, the Presi- dent signed the Robinson-Patman measure which proponents said was intended to give independent mer- chants an equal price advantage with chain stores and other big buyers in purchases from manufacturers; shook ! hands with bright-badged members of | the California and Arizona delega- tions to the Democratic National Con- | vention, and held a long conference | with Frank Murphy, American high commissioner to the Philippines. The President also sent another batch of postmaster nominations to the Senate. He has 10 days in which to act on | last-minute bills, making it unneces- sary for him to go to the Capitol for this task. ’ Trading _1Conlu}u& Prom Pirst P‘.‘f:l . ! permitted to trade for themselves only on a “cash basis,” putting up the full | piece of falling glass as it was about | amount of a purchase. | Specialists on the floor would be exempted from the restrictions in those securities in which they special- ize. Otherwise they would be subject to the requirement for full margin in | trading for their own account within limits on excessive trading already prescribed for specialists. Exchange commission officials said some modifications may be worked out | to adjust the program to comditions on the smaller exchanges. Chiefly affected are the New York Stock Ex- | change and the New York Curb. ‘The problem of extending similar | reforms to dealings off the organized exchanges, in what are known as | “over-the-counter markets,” was left |for further study. It was noted the | commission is working out detalls for | Federal control of over-the-counter markets. Mopre specifically, the program | reaches toward professional dealings {of an “in-and-out” nature, dubbed | “daylight” trading, on the floor. These are transactions completed within the day’s trading hours. \ Much Trading on “Shotstring.” | Landis, in a press conference on the market, explained the commis- | ston’s study of the broker-dealer prob- |lem had shown that much fast “in- and-out” trading was done on a “shoe- | string.™ | Prom a recent survey of transac- | tions in selected stocks, the commis- | sion found about 24 per cent of total | reported purchases and sales on the New York Stock Exchange and the | New York Curb originated in members | trading, about 5 per cent of it from | members off the floor. Landis conceded the effect of the proposed reforms probably would be to |reduce the volume of transactions | But he insisted it would be in the | public interest and would not impair the liquidity of the market. Member trading would be restricted, he said, from imposition of full mar- gin requirements upon “dealers” and | prohibiting “brokers” from trading for | themselves. Senate Roll Call Tax Bill Is Passed by Margin of 42 to 29. The Senate roll call on passage of | the tax bill follows: FOR THE BILL, 42. DEMOCRATS. 35. McGILL MinTeH MURRAY. O’'MAHONEY POPE. ASHURST BACHMAN R BARKLEY u‘m:x‘%gs' B! N LENBAC! THOMAS Tokla A 0k1a ) TfiguAl (Utah). TRUMAN, REPUBLICANS. 4. NORRIS. rmug&‘m 2. ™ pmoczs . LA POLLETTE. AGAINST THE BILL—29. DEMOCRATS, 18, Senators favoring the bill: Bankhead, Costigan, Long, Logan, Overton, Norbeck. Those paired or announced as against it: Austin, Barbour, Dickinson, Couzens, White, Keyes, McCarran. Those paired, but whose positions were not announced: Gore, Dieterich, George and Lewis, Seven Senators not paired or whose | positions were not announced: Caraway, Coolidge, Donahey, Johne son, Loftin, Smith and Wagner, There is one vacancy in the Senate from Florida. 4 4