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WEATHER. (U. 8. Weather Bureau Forecast.) ‘Thundershowers this afternoon or to- night, followed by generally fair tomor- row; moderate temperature. Tempera- tures—Highest, 87, at 5:30 p.m. yesterday; lowest, 65, at 6:45 a.m. Full report on Page A-5. Closing New York Markets, Page 18 No. 33,663. today. Entered as second class matte! post office, Washington, D. C. ah ¢ Foem WITH SUNDAY MORNING EDITION ny Star WASHINGTON, D. C, TUESDAY, JUNE 30, 1936—FORTY-TWO PAGES. ##* LEHMAN TORUN [ vwtas ] [LEAGUEINUPROAR FOR THIRD TERM AT PARTY'S CALL Tells Newsmen He Will Yield to Pressure in State and Nation. DECISION COMES AFTER LETTER FROM PRESIDENT Declares His May 20 Statement| Was Made With Earnest Desire to Return to Private Life. By the Assoctated Press. ALBANY, June 30.—Gov. Herbert H. Tehman announced today he would | yield to party pressure and run for a third term. The chief executive of President Roosevelt's home State called news- paper men to his office and gave them a 200-word statement declaring he could “no longer resist the pleas of my party, both in the State and the Nation.” GOV. HERBERT H. LEHMAN. HAMILTON DERIDES LEHMAN DECISION The Governor's decision came with | Says Democrats Forced “to surprising suddenness and within a few days after the Democratic Na- tional Convention had staged a wild 17-minute demonstration for him and the President had invited him to Hyde Park for the week end. Has Reconsidered. The decision means that Gov. Leh- man nas reconsidered his announce- ment of this Spring that the time had come for him to ask relief from the cares of office. He also was yielding to pressure of a Democratic Nation-wide movement to induce him not to retire. Democrats in 35 States joined in the movement. The Governor summoned newspaper men to his office shortly after the noon hour. “Regardless of personal considera- tions, however compelling,” he said, “I feel that I can no longer resist the pleas of my party both in the| State and in the Nation or of those | with whom I have worked in closest association for many years and with | whom 1 have waged the fisht for equal opportunity and social security.” ““Therefore if my party in this State chooses to nominate me again and if the people of the State again call on me for service I shall proudly accept the call and will during the coming two years devote myself wholehearted- 1y to the interests of the people of the Btate.” Earlier Decision Sincere. Plant Gubernatorial Can- didates” in Fight. BY G. GOULD LINCOLN. John Hamilton, chairman of the Re- publican National Committee, when informed today that Gov. Lehman of New York had agreed to be a candi- | date again, said: “This is the first time in history that a national party ever had to go out and plant gubernatorial candidates to pull its presidential candidate through. “It makes no difference whom the Democrats get for their gubernatorial candidate in New York or in Michigan, ,Icr I understand they are trying to | persuade Frank Murphy to be a can- | didate for Governor in that State. They still cannot elect Roosevelt.” Hamilton is leaving Washington to- | day to go to Columbus, Ohio, where he is to make a speech. He Wil answer President Roosevelt's accept- ance speech made in Philadelphia, and also comment on the Democratic national platform. Hamilton to Travel. The Republican chairman will travel throughout the country from now until September 1, building up the party organization. He plans a trip into New England, visiting Maine July 14, New Hampshire and Ver- mont July 15, Rhode Island and Con- Smiling and in an unusually re- | sponsive manner with reporters, the Governor said his decision on May 20 | to not seek re-election was made “with | an earnest desire to be relieved of | the cares and responsibilities of the | governorship in order to return to| private life and the enjoyment of my | family.” “My decision of May 20 was reached | after long and careful deliberation; | 1 considered it final,” he said. “Since then I have been deeply | touched and stirred by the many ex- | pressions of confidence and friendship | that have come to me from all parts of the country. I shall always be grateful for them.” ROOSEVELT HEARTENED. Lehman’s Announcement to Run Fol- lows Telephone Conversation. BY J. RUSSELL YOUNG. President Roosevelt was heartened today by news that Gov. Lehman of New York had formally announced he would seek re-election. The New York Governor's an- nouncement followed a conversation with President Roosevelt by long-dis- tance telephone, before the latter left (See LEHMAN, Page A-3.) W.P. A. WILL SEEK CHANGE IN RULING Desires Reversal of McCarl Deci- sion Against Sick Leave and Vacations. The Works Progress Administra- tion announced today that it will seek a change in Controller General McCarl’s recent ruling against sick Jeave and vacations with pay for 5,000 administrative, supervisory, research and clerical workers on project pay yolls of the Federal agency. ‘W. P. A. authorities conferred yes- terday with 14 representatives of five unions anxious to have the McCarl order withdrawn. The matter will be discussed further tomorrow, when McCarl steps out of office. The W. P. A, wishes, if possible, to reopen the question before General Accounting Office officials with fuller presentation of the workers’ side of the matter. ILLNESS OF DAUGHTER KEEPS MUSSOLINI HOME Townspeople of Tivoli Pray for Child Feared Suffering From Infantile Paralysis. By the Associated Press. TIVOLI, Italy, June 30.—State af- fairs have awaited two days and nights as Premier Mussolini and his wife attended the bedside of his t daughter, Anna Maria, who is feared to be suffering from an at- ‘ack of infantile paralysis. Vittorio and Bruno, Il Ducc’s eld- &st sons, were summoned also from Rome Saturday, when lung compli- cations were gravest for their sister, Sut the official Stefani News Agency said the crisis was over. Townsfolk prayed in churches for e health of the girl. Fascist sources said Romano, 8- year-old son of Il Duce and his wife, &'so was ill, but they did not specify the nature of his sickness. A num- ber of parents in Rome, especially those in the foreign colony, were taking their children from the city c of Fumors of an epidemic. [ necticut July 16, and Massachusetts July 17. The meetings that he will hold in these States are to be strictly organization meetings with the State chairman and other Republican party officials and workers. Representative Joseph W. Martin, jr., of Massachusetts is in New York ready to take charge of the Republican Eastern headquarters there. The Eastern division of the party organi- zation, which will be handled from these headquarters, includes the New England States, New York, New Jer- sey, Delaware, Pennsylvania, Mary- land, West Virginia, Virginia, North and South Carolina, Georgia and Flor- ida. Representative Hancock of New York is to be in charge of the Speak- ers’ Bureau for the Eastern division. Hamilton himself will make his main headquarters in Chicago. They will be located in the Railway Exchange Building. In the organization work, a great effort will be made to line up the new voters, men and women who have become of age since the last (See HAMILTON, Page A-3.) MISSING FIREMAN IS BELIEVED SLAIN Head Found in Concrete Box Identified as That of For- mer Captain. By the Assoclated Press. CARROLLTON, Ky., June 30.— Through a packet of matches the mys- terious disappearance June 11 of Harry Miller, former Cincinnati fire captain, and the equally puzzling case of an unidentified man’s torso were believed partially solved today. Three persons last night identified a head found encased in a_ concrete box in a lake here Sunday as that of Miller. Sheriff Walton Banks of Shelby County expressed belief the head and hands, also imbedded in the concrete box, belonged to the head- less and handless body found several weeks ago in & culvert near Eminence, in adjoining Henry County. Authorities awaited arrival today of Miller's sister, Miss Flora Miller of Cincinnati. She was reported hysterical last night after being informed of the identification, and declined to com- ment other than to say she expected to go to Carrollton Tuesday. The finding of the matches was not disclosed until last night when Banks announced Alfred Suntz, hired hand on Miller's farm near New Trenton, Ind.; O. B. Baird and Frank Sacha- leter, both of Harrison, Ohio, had identified the head. AS NEGUS STARTS PERSONAL APPEAL Five-Minute Demonstration Begun by Fascists. Delegates Join. “SACRED MISSION” SEEN BY ITALY IN CONQUEST Assembly Steering Committee Up- holds Selassie’s Right to Present Appeal. BACKGROUND— Conquest of Ethiopia by Italy forced Emperor Haile Selassie to flee his kingdom. Italy proceeding to pacify and “civilize” the country as former Emperor makes repeated demands that League of Nations restore him to his throne. Finan- cial and economic sanctions having failed to halt Italy, League called into session to discuss termination. France and England leading drive to free Italy of them. By the Associztea Press. GENEVA, June 30.—Delegates to the Assembly of the League of Na- tions broke into an uproar today when Haile Selassie, defeated Fm- peror of Ethiopia, went before them to plead his cause against victorious Ttaly. Before he went to the rostum he heard the conquest of his nation de- scribed as “a sacred mission of civili- zation.” This declaration was contained in & memorandum from the Italian gov- ernment. It was read to the Assem- bly while the little man who had been “King of Kings” sat in the fifth row. The Italian note said Italy “views the work she has undertaken in Ethi- opia as a sacred mission of civiliza- tion” and the work will be carried out “according to the principles of the | League covenant.” Advances to Rostrum. Huile Selassie, granted the right to speak, went forward from his chair. | As he reached the rostrum a flood of shrieking and whistling swept across the assembly from the galleries. Within a few moments the big hall was filled with confusion. Attendants attempted to eject Fascist demonstrators, but were un- able to restore order. For five minutes the hall devoted to the cause of peace was chaotic, then a platoon of police arrived. The policemen at once began weed- ing out the trouble makers. The demonstrators taken into cus- tody were carted away from the League palace in taxicabs and jailed, previous to an investigation. | When order had been restored in- | side the hall, Hajle Selassie began to speak. | The Italian note to the League ex- pressed the conviction that “the League requires adequate reform” and said Italy is willing to participate in this reform. Belgian Reads Note. The note, read by Premier Paul van Zeeland of Belgium, President of the Assembly—no Italian delegates being present—stated the people of Ethiopia needed to be directed like other Afri- cans in the forms of civilization and economic, social and cultural progress. Italy announced that natives would be seated in the council of the govern- ment in Ethiopia. Italy pledged that natives would not be compelled to perform other military duties than local police work and ter- ritorial defense. ‘The Assembly convened to the ac- companiment of rousing cheers for Selassie after its Steering Committee had firmly upheld the right of the conquered Negus to make a desperate appeal for “justice.” The committee decided there could be no question of Selassie’s right to address the Assembly. De Valera in- sisted at the steering meeting that the subject of the Negus' right to speak could not even be discussed. ‘The Hungarian delegation had moved (See GENEVA, Page A-4.) —_—— 500 TAXICAB DRIVERS RENEW DALLAS STRIKE Six Companies Affected by Third ‘Walkout in Month—Union Charges Dismissals. By the Associated Press. DALLAS, Tex., June 30.—Approx- imately 500 taxicab drivers were idle today in the third strike in slightly more than a month. Six companies, operating about 300 cabs, were affected. W. R. Williams, Southwestern rep- resentative of the American Federa- tion of Labor, charged operators dis- charged union cab drivers and re- placed them with non-union men. Williams also said the operators failed to carry out an agreement with em- ployes recently reached by arbitra- tion. W. H. Clark, jr., attorney for two of the cab companies, said the union “probably is looking for an excuse to bring about & closed shop agreement.” IN SPITE OF THE FACT THAT | HAVE THE GREATEST DEBT IN MY LIFE-IT WASNT Y YOUR FAULT. GOOD LUCK JoYou! AFTER FIFTEEN LONG YEARS! COLLINS IS MADE POLICE INSPECTOR Captain’s Promotion First in Series of Changes in Three Districts. Capt. Maurice J. Collins, seventh precinct commander, was promoted to the rank of inspector by the District Commissioners today as the first of a series of changes planned to restore the Police Department to three in- spection districts, instead of two. Inspector Collins was assigned to | be night supervisor, replacing Inspec- | tor William E. Holmes who will be in { command of the new third inspection district. Succeeding Collins in the seventh precinct will be Capt. John E. Bow- ers, transferred from the command of No. 8 precinct, which will be super- vised by Lieut. H. R. Lohman as act- ing captain. Lieut. Lohman, from the standpoint of service, is the oldest policeman in the department. Districts and Commanders, | Upon recommendation of Ma). }pohr:e. the new inspection districts | and their comanders will be as fol- lows: First, Inspector J. F. Beckett, pre- cincts 1, 2, 3 and 7. Second, Inspector Edward J. Kelly, precincts 6, 8, 10 and 12. Third, Inspector Holmes, precincts 4, 5, 9, 11 and harbor. The reorganization is a return to the status of April, 1934. At that time, because of a reduction in the personnel of the department, the in- spection districts were reduced to two. ‘Tomorrow 43 additional privates will be added to the force, restoring the number prior to the change in 1934. Within the next few days Maj. Brown expects to announce reassign- ment of the inspectors, possibly with some shifts in the administrative staffs (See POLICE, Page A-3.) COTTON'S 134 TOPS - FRENCH GOLF FIELD Briton Is 12 Under Par for Two Rounds—Goggin, U. S. Con- testant, Is Fourth. By the Associated Press. ST. GERMAIN, France, June 30.— Two sub-par rounds of 65 and 69 for an aggregate of 134 today gave Henry Cotton, former British open champion, the lead at the halfway mark in the French open golf championship. His total represents 12 strokes under par, 73, for the two rounds. Willie Goggin, San Francisco pro- fessional, put together rounds of 73—72 for a total of 145, good for fourth place. Ted Turner of Pine Valley, N. J., adding a 75 to a morn- ing-round 71, was tied with Pierre Hirigoyen of France for fifth place at 146, e TOKIO REPLIES TO U. S. Apologetic Tone Declared Taken in Treatment of Americans. PEIPING, China, June 30 (#).—The Japanese Embassy replied today to United States Government representa- tions concerning unceremonious treat- ment of Americans, including an Army captain, during Japanese flag presen- tation exercises on June 23. The reply, which was forwarded to ‘Washington, was understood to be con- ciliatory and apologetic in tone. King Edward Races 60 M. P. H.|| Readers’ Guide In Tiny British Torpedo Boat By the Associated Press. PORTSMOUTH, England, June 30. —King Edward put to sea for half an hour today in his majesty's newest fighting ship—a tiny torpedo motor boat with the death-dealing power of a submarine. It was the King’s first naval in- spection since his accession. He went through the shore estab- lishments at Portsmouth, then board- ed the boat, the first of 12 designed by Scott Paine, the famous motor boat racer. The boat immediately headed out across the harbor. As it approached its maximum speed of 60 miles an ; hour great waves were thrown up by the prow. The stern was buried so low in the water that, from the shore, the after portion of the boat appeared submerged. Off Spithead an officer making up one of the crew of five, fired a torpedo to show the King the workings of the main armament of the craft. Naval experts said these torpedo motor boats costing one-thirteenth as much as & destroyer, may prove the navy's answer to the air menace. Their high speed and small dimensions make them difficult air bomb targets. Each boat carries two torpedoes, several depth bombs and & number of machine guns. 4 Amusements Answers to Questions Lost and Found News Comment Features.A-11 --A-14 A-13 B-10 Sports _ _C-1-2-3 Washington Wayside_...-A-2 Women's Features......-B-13 | Ernest W. Brown, superintendent of | Airline Mildly Upset to Learn Zioncheck Will Be Passenger| By the Assoctated Press. CHICAGO, June 30.—All branches {of the Chicago Police Department maintained an outward calm today | as Representative Marion Zioncheck, | Democrat, of Washington, sped toward | the city by train en route to his home in Seattle. Offices of the commissioner, head of the uniformed division and the De- | tective Bureau disclaimed knowledge of | a reported request from Supt. Ernest | W. Brown of the Washington, D. C., police for “protection” for the eccen- tric legislator, and professed little interest. Lack of excitement also character- ized the Baltimore & Ohio Railroad WILKINS MESSAGE REPORTED BY SHIP Explorer Tells of Delay, but Expects to Reach Nor- way in July. BACKGROUND— Sir Hubert Wilkins, noted ez- plorer, has caused grave concern because of his silence on Arctic trip. Sir Hubert, recently returned from Antarctica, saiking on the Wyatt Earp, the vessel used in present voyage. By the Assoctated Press. OSLO. Norway, June 30.—The Nor- wegian liner Stavangerfjord reported to Oslo today receipt of a message from the Wyatt Earp, exploration mo- tor ship of Sir Hubert Wilkins, which has been unreported for 12 days. The Wyatt Earp gave its position as 46 degrees north latitude and 40 de- grees west longitude, the master of the liner reported. Sir Hubert told the master he had been delayed, but hoped to reach Nor- ‘way, his destination, about mid-July. The Wyatt Earp, which left New York for Norway 12 days ago, was the object of a Navy and Coast Guard search last night after Sir Hubert’s wife appealed to President Roosevelt. The Coast Guard disclosed, after re- ceipt of the presidential order, it had sent out a wireless message “two or three” days ago for ships in the North Atlantic to keep a lookout for the Wyatt Earp. Position on Steamer Lanes. The Coast Guard communications office in New York said the Wyatt Earp's position, as given to the Nor- wegian liner, was approximately 1,600 miles northeast of New York and about 550 miles directly east of Cape Race, Newfoundland. (The ship’s position, as relayed by the Norwegian liner, would place the ‘Wyatt Earp in mid-Atlantic near the regular northern steamship lanes.) President Roosevelt ordered the search after he received a telegram from Charles Henry Freeman, jr., who said he was manager for Lady Suzanne Wilkins, the explorer’s wife. Wife Broken by Worries. Lady Wilkins, a former singing ac- tress, who was married to Sir Hubert at Cleveland, Ohio, in 1929, was rep- resented as ‘“completely broken up over worries for the safety of her dis- tinguished husband.” Business Ends .First Six Months The Star’s Midyear Financial and Trade Review Appears in To- day’s Issue on Pages A-15 and A-16. A Summary of Stock Trading on the New York Stock Exchange ‘Will Appear Tomorrow. Chicago Police Disclaim Knowledge of Report D. C. Asked “Protection” for Representative on Arrival Tonight. -| J. Norman McArdle, ringmaster. | offices, where it was said they did | not know, except for having read in | the papers, that Zioncheck was riding | their train, which was due in Chicage at 6:10 pm. (Eastern standard time). | | The calm was slightly interrupted at Northwest Airlines office, however, | | when their attention was called to | reservations on a night plane from | Chicago to Seattle for “Romney and | | Bishop.” The reservations were made | from Washington yesterday and said | the parties would arrive by train. The airline had not previously identified the names with Zioncheck, who left Washington last night with (See ZIONCHECK, Page A-4.) 1., LABOR BOARD AUTHORITY DENIED Company Upheld in Attack on Constitutionality of Act. By the Associated Press. CINCINNATT, June 30.—The United States Circuit Court of Appeals held today that the National Labor Rela- tions Board lacked authority to issue orders affecting companies whose business “does not directly affect any phase of any interstate commerce.” It dismissed a petition of the board asking enforcement of an order it is- sued to Fruehauf Trailer Co. of De- troit and directed that the order be sei aside. Constitutionality Hit. The Fruehauf company attacked the constitutionality of the national labor relations act in appealing from the order of the board. Authority for the national labor claimed under the commerce cause of the Constitution. Since the order is directed to the control and regulation of the relations between the trailer company and its employes in respect to their activities in the manufacture and production of trailers, and does not directly affect any phase of any interstate eommerce in which the (See BOARD, Page A-4.) MAN FOUND HANGING George Speakes, Father of Three, The only evening paper in Washington with the Associated Press News and Wirephoto Services. Yesterday’s s Associated Press. Circulation, 133,626 (Some returns npt yet received.) TWO CENTS. OFFICIALS DISCUSS HELP TO FARMERS IN DROUGHT CRISIS Hopkins Holds Parley in St. Paul on Emergency Measures. NEW DAMAGE REPORTED IN MIDWEST AND SOUTH Lightning, Strong Winds Hail Take Heavy Toll in Distressed Areas. and By the Assoclated Press. ST. PAUL, June 30.—Emergency measures (o carry drought-distressed farmers through a crisis of withered crops were considered by Government chieftains and officials of five North- west States today. National Works Progress Adminis- trator Harry Hopkins came from Washington to join spokesmen from the arid area in the task of drafting a program. Proposals for construction of farm- to-market roads and small dams for water conservation were shaped as Federal and State estimations indi- cated 83,000 families would require aid. The cost was unofficially calculated from $50,000,000 to $100.,000,000. Govs. Elmer Holt and Walter Wel- Dakota, respectively. W.P. A. Admin- istrator Victor Christgau spoke for Minnesota. South Dakota and Wyo- ming were represented. New Damage Reported. west, who had not enjoyed a good har- vest in six or seven years, were cited, reports of new drought damage came Xn';n the Midwest and South. hey prompted Secretary of Agri- culture Wallace to plan a personal inspection of the affected prairie States. While he arranged to leave the National Capital today, the ad- ministration’s special Drought Com- velt. Four rural resettlement agents started a tour of South Dakota. Showers, followed by lower tempera- tures, provided a temporary respite in the northern half of the Midwest yes- terday. More were forecast for today in parts of the same territory. But concern over inroads already made was reflected in an upswing in the corn market. Two Dead From Lightning. Lightning left two dead in Iowa and Illinois. Tornadic wind resulted in heavy property damage in Iowa. Hail battered grops in North Carolina and South Dakota. Highways were block- ed by storm-felled trees in the vicinity of Fort Wayne, Ind. The mercury reached record levels at some points in the arid States. Newport, Tenn, and Mattoon and Bloomington, Ill., reported 106 degrees; Augusta, Ga., and Mount Vernon, Ill, 105; Grand Island, Nebr., and Evans- ville, Ind., 103; Knoxville, Tenn., and Macon, Ga, 101, and Birmingham, Ala., 100. Commissioner of Agriculture J. B. McLaughlin calculated West Virginia's farm Iosses at $15,000,000. He said the situation was “alarming.” Tennessee, footing its bill at $50,000,000, entered its eighty-first day of dry weather. Pray for Rain in South. Southern agriculturists prayed for rain. Streams receded in Arkansas. A 25 to 30 per cent curtailment in milk supplies was reported in Southern protracted heat. Observers opined the rains and cool 1ull came too late to save small grain in the drought belts of the Dakotas, Montana, Wyoming and West-Central Minnesota. A new invasion of grasshoppers spread more ruin through fiields and gardens and in some sections of South Dakota. — KIDNAPER TO DIE Hitler's Death Decree Is Invoked for First Time. BONN, Germany, June 30 (®)— Reichsfeuhrer Hitler’s new decree of Had Been Il George Speakes, 38, father of three children, was found hanging by a clothesline from a beam under the back porch of his home, at 3108 Mon- roe street northeast, at 8 a.m. today. Efforts of the rescue squad to revive him were unsuccessful. The body was discovered by Mrs. Speakes. Speakes, an employg of the Embassy Dairy, was said by his family to have been in ill health for some time. death for kidnapers today was in- voked for the first time. Hans Giese, 32, was condemned to be executed by the ax for kidnaping the 11-year-old son of a Bonn mer- chant whose name was not made pub- lie. The boy was kidnaped June 14. Giese demanded a ransom equivalent to $700. Police caught him by trail- ing the messenger. The death decree was announced June 22, but made retroactive. By the Assoclated Press. GAINESVILLE, Tex., June 30.— This city's “home-made” circus is hit- ting the tanbark and canvas trail for another Summer—bringing about its annual metamorphosis of housewife to aerialist, judge to clown and every- day cif to glamorous performer. ‘The -in-Gainesville” dircus played to crowds at the Texas Cen- tennial Exposition in a three-night stand last week. The whole thing really is built un.u‘nd c- Ardle otherwise is & serious fellow de- voted to cotton trading. But when the sun sets, McArdle dons the regalia of a ringmaster and officiates for sundry other folk who knit and bake and preach and practice law, but come out of their workaday cocoons at night. The Gainesville community circus is an institution of amateurs. Since a dramatic club sponsored a burlesque circus back in 1930, Gainesville has been circus-conscious. In the Spring schooigirls, house- - A Housewives Become Aerialists In Texas Community’s Circus wives, doctors, bankers and storekeep- ers, not to mention messenger boys and stencgraphers, spend leisure hours in the back yard practicing on the fiying trapeze and tumbling mat. Then, ‘when, Summer breezes start caressing the on the circus lot, Gainesville'’s performers blow up their big top. David O’'Brien, the show’s secretary, says the Community Circus has given 67 performances in a score of South- western cities and towns for nothing more than the plaudits of the audi- ences. When tents are pitched for a show in a neighboring town, the per- formers commute between the show and their daily tasks at home. Ray Winder, & clown who is shot from a cannon, presides by day as judge of the County Court. Frank Morris, jr., snare drummer in the cir- cus band, is president of a Gainesville bank. Geraldine Murrell, bareback rider and trapeze artist, trims hats in & millinery shop. Any bona fide Gainesville resident, who has amateur standing, is eligible to perform. ford sat in for Montsna and North | ‘While cases of farmers in the North- | | mittee prepared to lay relief recom- | mendations before President Roose- Iilinois. Pastures wasted there under | TREASURY T0 CITE GAIN IN REVENUE AND DEFICIT CUT Morgenthau Report Tomor- row on Nation’s Finances to Be Optimistic. RECEIPTS ESTIMATES DUE TO BE FULFILLED | Total Income Through June 26 $4,080,000,000—0nly $67,- 000,000 Processing Levy. BACKGROUND— Administration estimates of the year’s ‘financial showing have been upset by payment of soldiers’ bonus and invalidation of procession tar law, bringing greater erpenditures and decreased revenue. Other fac- tors, however, have contributed to offsetting these major developments. With public debt close to $34,000,- 000,000 at end of this year, it com- pares with war-time high of $25,- 482,034,419, Since 1930 there has been gradual increase, New Deal in- heriting debt of $22,538,672,560 at close of 1933 fiscal year. By the Assoctated Press. A brighter picture of the state of the Nation’s finances than had been drawn in previous official estimates appeared in prospect today as the Treasury tal- lied its books for the fiscal year ending at midnight. Secretary Morgenthau will give the official statement tomorow night on a dual Nation-wide radio hook-up in what he characterizes as his “annual” speech, but in the meantime some in- dication of the final figures may be ~ gained from the Treasury’s daily state- ment of condition, latest of which is through the close of business June 26. For instance, it appears definite that budgetary estimates of receipts will be Imort‘ than fulfilled, excluding the in- | validated processing taxes, and that | Secretary Morgenthau's amended fore- | cast of a deficit of $5,966,600,000 on | June 30 would not materialize. $4,080,000,000 Income. President Roosevelt's revised budget | last September called for receipts of | $4,406,800,000 during the fiscal year, including $529,000,000 of processing | taxes, which, in the meantime, have | been ruled unconstitutional by the Su- | preme Court. Through June 26, and despite receipts of only $67,000,000 in processing taxes, the Government's total income has been $4,080.000,000. On the other side of the ledger, | President Roosevelt estimated that | expenditures during the year would | total $7,645,000,000, resulting in a | deficit of $3,234,000,000. This, howe ever, was before passage of the sol- diers' bonus measure providing for immediate payment of the 1945 claims. This, Morgenthau testified recently before the Senate Finance | Committee, would add $2,237,000,000 to the current year's expenditures which, taking into consideration ade justed expenditures due to the A. A. A, decision in the amount of $495,100.000, would bring the deficit to $5,966,« 600,000. $8,793,0000,000 Expenditures. Expenditures through June 26 amounted to $8,793,000,000, the largest in any peace time year, but the deficit was only $4,712,757,000, which is $1,- 253,843,000 short of Morgenthau's latest estimate, with only four days to run The gress public debt on June 26 amounted to $33,950,000,000, with a | total of $2,931,000,000 remaining in the general fund of the Treasury to meet this indebtedness. UTAH COUPLE SLAIN AS CHILD WATCHES Granddaughter, 8, Sees Man and Wife Beaten to Death in Their Beds. B3 the Associated Press. OGDEN, Utah, June 30.—Adam Snyder, 62, and his wife, Mrs. Mabel Scott Snyder, 52, were beaten to death in their beds today as their 8-years 5ld deafmute granddaughter looked on. Mrs. Emma Scott Rose, 80, mother of Mrs. Snyder, was beaten so badly she was not expected to live. A visitor, Mrs. Grace Mortensen, 35, of Salt Lake City, was badly cut and bruised. Police could obtain little help from the child witness to the brutal crimes, curly-haired Betty Becker. They sald they were seeking George Mortensen, 37, husband of Mrs. Grace Mortensen, for questioning. — LIBERTY LEAGUE MEETS Speculation on Campaign Stirred by Committee Session. NEW YORK, June 30 (#).—A meet- ing of Alfred E. Smith and.other leaders of the American Liberty League today increased speculation over the position of the league in the campaign. At the office of former Gov. Smith, it was stated the meeting was a monthly one of the league’s Executive Committee, and that it was not ar- ranged for any special purpose. In additior to Smith, among those who attended were Irenee Du Pont, Jouette Shouse, president of the league, and Capt. W. H. S. Tayton, the secretary. Nicaraguans Capture Ship. SAN JUAN DEL SUR, Nicaragua, June 30 (#).—Nicaraguan soldiers to- day captured the motor schooner Pinogana of Panama on a charge of smuggling. The Pinogana was ane chored in Masapa Bay, about 60 miles from here, and army officers sald ¢ was carrying a cargo of 84 bales of ‘merchandise,