Evening Star Newspaper, August 13, 1936, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Generally fair and slightly warmer to- night; tomorrow mostly cloudy; gentle to moderate southwest winds. Temperatures —Highest, 89, at 3:30 p.m. yesterday; lowest, 71, at 5:30 a.m. today. Full report on page B-10. Closing New York Markets, Page 18 Entered as second class matter post office, Washington, D. C. No. — DUGHLIN PERMITS TOWNSENDTOTALK AT END OF SESSION Pension Leader Invited to Speak After Convention Finishes Business. 33,707. OPEN LETTER IS SENT TO MEETING DELEGATES “A Gomer Smith” Is Expected by Priest to Appear During Cleveland Assembly. B the Associated Press. CLEVELAND, August 13.—Rev. Charles E. Coughlin, arriving today for the first convention of his National Union for Social Justice, settled a disagreement over whether the dele- gates should hear Dr. Francis E. Townsend and explained he intended no specific reference to the indi- viduals in a letter he addressed to the delegates. He announced Townsend, old-age pension plan founder, had been in- vited to address the delegates Satur- day afternoon after conclusion of official convention business. Walter D. Davis, convention marshal, has opposed Townsend's appearing at the meeting. The convention will open tomorrow. Referring to his open letter to dele- gates, which appeared in his weekly publication, Social Justice, Father Coughlin said at a press conference he meant it to be “metaphorical.” He wrote the delegates: “If 1 out of 12 apostles were a Judas Iscariot, it is an even bet that 1 out of 1200 delegates to the national convention will be a Gomer Smith.” Phrase Used Metaphorically. Smith, Oklahoma City lawyer and member of the Townsend pension or- ganization’s Board of Directors, at- tacked Coughlin and upheld President Roosevelt at the Townsend convention here a month ago. Dr. Townsend im- mediately sought Smith's removal as a director. “I used the phrase ‘a Gomer Smith’ simply as a metaphorical ex- pression,” Father Coughlin said. “My reference in the same letter to the ‘stock yards of Chiecago’ was in the same sense.” The priest said the fact that Presi- dent Roosevelt would arrive here to- morrow as his convention opened “is just news to me. It will make no difference to the convention that the President is visiting here. Our people have come from many States to put the National Union on record. As far as I know the President comes to visit Cleveland and to discuss such subjects as farm relief and condi- tions of Ohio.” Father Coughlin, discussing the pro- eedure of the convention, said: “After it opens, it is up to the delegates. [ have been more or less a dictator of the union’s policies, since it was my idea, but, as I said a year ago, this convention will shape the future policy of it. I wrote the constitution which will be submitted, but after it is introduced it is their baby. They may amend or revise it as they wish.” No Coalition Planned. ‘He was insistent that no coalition of the union with the Townsend or “share the wealth” movements was contemplated. “There is absolutely no chance for an alliance with other groups,” he declared. “If the union does not retain its own identity, I shall step out. It must remain just as it is.” One action of the convention will be selection of a wational president, he said. “I assume that I will be re- elected, but I shan't try to persuade the delegates in any way,” he said. Father Coughlin said that “oratory will not dominate this convention” and that addresses by outsiders would be only after business of the conven- tion is concluded Saturday. “I am not even going to speak, ex- eept for the part I may take in de- bate,” he said. Representative William Lemke and ‘Thomas C. O'Brien, candidates of the Union party for President and Vice President, respectively, will share the time Sunday afternoon with Father Coughlin before a mass meeting of delegates. Neither will address the convention, he said. Membership Held 6,000,000. Estimating the total membership of his organization at 6,000,000, Father Coughlin said 1,600,000 were active working members, and declared it was his belief “85 per cent of our mem- bership could be delivered to a ‘third party’ candidate.” He reiterated, however, his union would not indorse any party as a party. Father Coughlin said he understood (See COUGHLIN, A-2) NEW HEAT WAVE DUE FOR DISTRICT TODAY High Temperatures Will Prevail Next Few Days, Declares ‘Weather Bureau. Another heat wave, accompanied by excessive humidity, moved into Wash- fngton today and threatened to send the temperature to 95 degrees during the afternoon. For the next few days, at least, high temperatures will prevail, the forecaster says. - The official forecast for the next 48 hours is partly cloudy this after- noon, generally fair and slightly warmer tonight, and mostly cloudy and continued warm tomorrow. At 10 o'clock this morning, witk the temperature at 83 degrees, the humidity was more than 60 per cent. This is twice what it should be for comfortable conditions. The humidity also was excessive yesterday when & high temperature of 89 was recorded at 3:30 pm. The mean temperature during the day, however, was only 78, about 2 degrees above normal. The “low” this morning was 71, at $:30 o'clock. ) Madrid Ousts Ramon Franco, Attache Here " y AJ. RAMON FRANCO, famous MAJ, RAMON FRANCO. Spanish trans-Atlantic fiyer and hero of the 1931 revolt M against King Alfonso, was dismissed today by the Madrid gov- ernment from his post of air attache of the Spanish Embassy here, accord- ing to an Associated Press cable. Maj. Franco was not surprised at the news, although he has not heard officially of the action from his su- periors. i ha}'_e begn expecting the dismissal (See FRANCO, Page A-8.) U5, WOMAN WINS PLATFORM DIVING {Chicago Man Sets Record in Olympic Back-Stroke Trials. Point Totals Men’s Swimming. 38| Germany ... 36 France - Hungary --.14| G. Britain_ Women'’s Swimming. | Denmark ... 6 Argentina .. 5 G. Britain .. 2 K 4 1 Germany -202 Japan -...15 ! (Points, which are unofficial, are based on 10 for first place and 5, 4, 3, 2, 1, respectively, for the next five places.) By the Associated Press. BERLIN, August 13.—America’s aquatic stars continued today to hold a full share of the Olympic swimming spotlight, but her representatives in most other branches of competition, notably rowing, faltered badly. The United States' dominance in diving was further emphasized by Mrs. Dorothy Poynton Hill's successful defense of the platform championship, the Los Angeles expert winning as Velma Dunn of Monrovia, Calif., took second place. A sweep, similar to those achieved by the men and women in the spring- board diving competition, was pre- vented by Germany's Kaethe Koehler, who nosed out Cornelia Gilisen of New York for third place. In the women's 100-meter back- stroke final, Uncle Sam’s contenders, Alice Bridges of Uxbridge, Mass., and Edith Motridge Segal of Los Angeles, did as well as expected, finishing third and fourth, respectively, behind Hol- land's stars, Dina Senff and Rita Mas- tenbroek. Miss Senfl’s winning time was 1:18.9, considerably slower tham her Olympic record of 1:16.6 set in the trials. Sets Backstroke Record. Adolf Kiefer of Chicago established himself more than ever the man to beat in the men's backstroke event, winning his semi-final heat in 1:06.8, one-tenth of a second faster than the new Olympic mark he made yes- terday, while Al Vande Weghe of Paterson, N. J., and Taylor Drysdale of Detroit also gained the final. America’s trio in the men's 1,500- meter free style and 200-meter breast stroke events successfully passed pre- liminary qualifications, Jack Medica, Ralph Flanagan and Jim Christy qualifying for the semi-finals in the longer event, and Ray Kaye, Jack (See OLYMPICS, Page A-5.) MAN SAVED FROM WELL Texan Faces Death 18 Hours as Pumpers Battle. IRVING, Tex., August 13 (#).—Ed Roberts, about 50, trapped in a well bottom, faced death for nearly 18 hours while fire department pumpers fought a steadily rising stream of water. He was semi-conscious when a final desperate effort of workmen freed him today. He was rushed to a Dallas hospital. Roberts was cleaning the well when a cave-in buried him to the shoulders. Youths’ Parole @b WASHINGTON, D. C, FRANCE FORBIDS MASS RECRUITING FOR SPANISH WAR Proclamation Is Issued as Drive for Neutrality Pact Is Renewed. MUSSOLINI'S QUESTION ANSWERED BY ACTION Britain Fearful for Success of Accord as Half Dozen Planes Speed to Spain. BACKGROUND— Spanish civil war nearing end of fourth week with Fascist insurgents and Cummunist-Socialist govern- ment in virtual deadlock on three fronts—north of Madrid, on the north seacoast mear San Sebastian and Irun and in south around Cor= doba, Seville and Granada. Rebellion began last month in Spanish Morocco, when army took leadership of land-holding and cap- italist classes in movement to over= throw the popularly-elected Leftist government, ostensibly to prevent advent of a full Communist regime. Neutrality agreement spansored by France has received adherence “in principle” of 13 European na- tions, BULLETIN. (Copyright, 1936, by the Assoclated Press } IRUN, Spain, August 13.—Five rebel planes bombed the seaside resort of San Sebastian today, in- flicting heavy damage in a final desperate offensive for possession of the city. By he Assoclated Press. France today barred recruiting for Spanish armies as the Quai D'Orsay renewed its drive for a general Euro- pean neutrality accord. The dictum was announced formally after a cabinet meeting. The Blum goverament could not prevent Salengro, minister of the be permitted. sideration of questions propounded by Premier Mussolini of Italy on the proposed non-intervention agreement. Mussolini specifically had brought up the question of recruiting and the collection of funds to help either side in the Spanish rebellion. British Fears Aroused. A half dozen airplanes reported to be destined for belligerents in Spain roared southward from British air- ports, while his majesty’s govern- ment expressed fears that the pro- posed European neutrality accord might never be put into effect. Four British planes took off fram Heston Airport, two described by field officials as bound for delivery to Ma- drid’s Socialist government and two for rebel headquarters at Burgos, Spain. It was stated authoritatively Great Britain was becoming extremely anx- ious over the delay in reaching a neutrality accord. Official qugrters in London regarded Italy as the main stumbling block since no sign of com- plete agreement was forthcoming from Rome. Collapse of the Fascist revolt within a few hours was forecast by the Span- ish government. Advances against the rebels, who have fought for almost four weeks to establish a dictatorial government in Spain, and repulse of rebel offensives on varlous fronts were pictured in of- ficial quarters as heralding the end of the civil war. Rebel military activity in areas ad- jacent to Gibraltar was renewed when insurgents began a march from the | north upon Estepona, & community 41 miles southwest of Malaga, to attack government troops barricaded there. Two thousand rebel soldiers were due at the shell-torn town of Alge- ciras, a target for government war- ship shells, from Cadiz. Fifty trucks loaded with bombs and shells ac- companied the rebel forces march- ing on Estepona. Even as the government launched a three-way drive to wipe out its op- position, rebels in the far north pressed on towasd San Sebastian, on the Bay of Biscay, in an effort to break the hold of government troops on the northern seaboard. Rebel forces were within 8 miles of San Sebastian. Reinforcements were moving up to the attack. Tolosa fell to them Tuesday, and rebel soldiers sang and danced in the streets last night. Tolosa is one of the key cities just south of the bay in the path of the rebel advance. Miners Besiege Oviedo. The second major theater of war was on the same seaboard in the north- west, where miners sympathetic with (See SPAIN, Page A-7.) on Grounds Of Overcrowding Is Refused Judge Robert E. Mattingly today turned down a plea for the paroling of two youthful prisoners made by Capt. M. M. Barnard, superintendent of penal institutions, in directing the at- tention of the Police Court judge to the growing difficulties in taking care of “worthless prisoners” at the Occo- quan Work House because of over- crowded conditions. The boys are Harry L. Smith, 18, and Joseph N. Bresnahan, 17, sen- tenced to 11 months for turning in false fire alarms. ‘While regretting the conditions set forth by Capt. Barnard, Judge Mat- tingly said he did not think the two are entitled to any greater considera- tion than others who have committed similar offenses. Iy 1n addition to the overcrowding of prisoners at Occoquan, Capt. Barnard had pointed out in a letter to the Police Court judge that there was a shortage of officers to care for the prisoners. Capt. Barnard's letter, while deal- ing in detail with administrative prob- lems at the penal institutions, called Judge Mattingly's attention to the cases of Bresnahan and Smith, who were sentenced by Judge Mattingly to serve 30 days each on each of 11 charges of pulling false alarms, crossing the Spanish border, Roger | WITH SUNDAY MORNING EDITION 1 HASTEN TO HEARTILY AND SINCERELY WISH YOU WELL! Blum’s Modified New Deal Has Public Works Program Controlled by Communities Unemployment France’s Most Internal Pressing of Problems. Premier Advocate of Peace. Note—The Star's famous international political commentator, Constantine Brown, is nmow in Europe making a survey of conditions which are generally lelieved critical and which may lead to war. The following is the first o] a series of articles to appear in The Star, in which he will discuss France's position, internally and internationally, BY CONSTANTINE BROWN, Staff Correspondent of The Star. PARIS.—There is no red tape or awe-inspiring formality in reaching ‘There you | | | In the meantime you are not likely to individual volunteers from | Leon Blum, the first 100 per cent Soclalist Prime Minister of France. You just drop in at the Premier's official residence, the Hotel Matignon, interior, | an aristocratic mansion of the eighteenth century which has served as said, but mass recruiting would not | residence and office to the French Premiers since the establishment of the - | Third Republic in 1871. . | Cabinet,” and if the Premier has not gone to lunch or to ‘The decision followed directly con- | s oo g oy g e iy :“’m - the Chamber of various ministers, you have a chance to see him. wait your turn $) see his “Chef de get tired | waiting. The usher, a dignified gentleman with in 1756. never gives interviews. are “subjects of President Roosevelt.” methods of the New Deal in France, banks and the industry in France. a tail coat, knee breeches and a huge silver chain around his neck will tell you that the rug which covers the huge waiting room is a genuine Savonerie rug made in 1749, Gobelins on the wall were made a little later, and the Mr. Blum is a Socialist who still adheres to certain traditions, one of them being that he But he is willing to talk to newspapermen, especially when they For the Prime Minister is endeavoring to apply certain and the French people regard his efforts with sympathy, because they have the hall-mark of the richest country in the world—the United States. “You see,” said Premier Blum with a twinkle in his eye, “Paris is quiet. ‘There are no patrols in the streets and no barricades on the Place de la Con- corde. We had trouble—grossly exaggerated in the press—at the outset of my administration. We came into power by an overwhelming popular vote. The workers of this country and the bourgeois voted the Socialist ticket because all the previous administrations had failed to keep their electoral promises. They all played into the hands of the “two hundred families,” which controlied the And these electors were somewhat over- anxious to obtain, without delay, relief for their economic distress. They went on strike and occupied temporarily the premises where they were Constantine Brown (See BROWN, Page A-2.) NAZIS SEEN ENDING U.S. TRADE BARRIER Luther Note Believed Pledg- ing Discontinuance of Sub- sidizing Exports. (Copyright, 1936, by the Associated Press.) An early lowering of trade barriers between the United States and Ger- many was forecast in reliable quarters today following presentation by Am- bassador Hans Luther of an important note on the subject to Acting Secretary of State Phillips. The content of the note has not been revealed officially, but it was learned authoritatively that it conveyed the German government's” agreement to discontinue wide subsidizing exports to the United States. This practice im- pelled the United States, more than a month ago, to levy extra duties against German imports into this country. The German government’s action was expected in well-informed quarters here to result in a withdrawal of the Treasury decree imposing the excess taxes in the form of “countervailing duties.” The German move, it was stated, would apply to all contracts for ex- ports to the United States concluded since August 3. Although the German government's decision generally is expected by in- formed quarters here to remove such artificial obstacles to German-Amer- ican trade, it was predicted, never- theless, that an increase jn commerce between the two countries might not resiult, due in large part to the scarcity of foreign exchange in Germany. Henceforth, German. purchases in the United States must be paid for n marks convertible into foreign ex- change, whereas formerly, through a system of export bounties paid to ex- porters, German industry was able to buy in the United States with so- 25,000 MEN FIGHT MINNESOTA FIRES Adverse Winds and Low Humidity Handicap Forces in Woods. BULLETIN. ST. PAUL, August 13 (#).—Un- limited powers to protect life and property in the fire-ravaged North ‘Woods area were vested in Grover Conzet, State forester, by the State Conservation Commission today. Conzet told the commission one district alone was reporting on 41 fires daily. By the Assoclated Press. ST. PAUL, August 13.—Towering flames spread swiftly through a Northern wilderness today despite the efforts of 25,000 grimy men who la- bored under increasing hazards. Official pessimism grew. Adverse winds and low hamidity handicapped the fire-fighting forces. But they struggled to stem the fiery onslaughts as Minnesota State Forester Grover Conzet warned: “Anything may happen.” Hundreds of men were picked up on the streets of International Falls, Minn,, and enlisted along adjacent highways. They joined 1,000 others striving to head off an uncontrolled blaze on the international boundary north of Kabetogama Lake, which broadened after blackening 6,000 acres, ‘Trucks rushed C. C. C. reinforce- ments and 9,000 feet of hose to the Tom Lake front in the Grand Portage State Forest in Northeastern Minne- sota. The crest fire there remained unchecked after charring 6,000 acres of virgin timber. Some 1,000 men failed to check (See FIRES, Page A-8.) — Chosen Floods Fatal. SEOUL, Chosen, August 13 (#).— Heavy floeds in South and Central Bresnahan and Smith were sen- [called “aski” marks, which were not| chosen on the heels of drenching tenced in July on their pleas of guilty to pulling seven false fre alarms dur- ing that month and then admitting that they had pulled four others in (See PAROLE. Page A-S.), actually taken out of the country. The reported German action toward discontinuing ‘export subsidies was said to include prohibition of the use of such marks in the future. 4 rains have taken at least 96 lives, the government announced today. Twenty- one persons are missing. A thousand houses were destroyed and more than 4,000 inundated. ) ¢ Foening Star THURSDAY, AUGUST 13, 1936.—FIFTY-TWO PAGES. > ! EMOCQAT $ WIELCOME NEW BATTLE SEEN IN ASTOR CASE {Persons Accused by Film Actress Expected to Fight to Clear Names. BULLETIN. LOS ANGELES, August 13 (P)— Superior Judge Goodwin J. Knight said at court-opening time today he would require “hours” to study a settlement lawyers agreed upon last night in Film Actress Mary Astor’s child custody suit against her ex-husband, Dr. Franklyn Thorpe. By the Assoclated .Pl'!_il- LOS ANGELES, August 13.—An agreement sealing shut Mary Astor’s | frank diary of film colony life and | granting the pretty actress partial | custody of her little daughter started the curtain downward today on a court drama—but disgruntled others | threatened more fireworks. Cutting short a bitter court battle, | attorneys for Miss Astor and her for- mer husband, Dr. Franklyn Thorpe, completed for a judge's considerstion an agreement consigning to myste- rious hiding the purple-inked diary. Its contents, Dr. Thorpe’s counsel had said, would have exploded in the faces of several prominent persons. The diary, it was understood, will | be impounded st Judge Knight's di- | rection, never to be used in litigation between Dr. Thorpe and Miss Astor at any future time. New Sensations Seen. But Miss Astor’s accusations, in at- tempting to break the full custody order held by her husband, that the physician had associated with other women left open the possibility of | new sensations. Paul Schofield, film writer, whose wife’s name was linked with Dr. Thorpe by an Astor witness, said em- phatically “Depend upon it—I'm going to take legal steps to refute that slanderous testimony. I can prove it's untrue.” Schofield added that his wife had sent him several “sizzling” telegrams when it seemed her side was not to be heard. Mrs. Lillian Lawton Miles, accused by Miss Astor of being Dr. Thorpe'’s wife at the time Miss Astor married him, also demanded the right to state her case. Miss Astor’s battle for the right to have 4-year-old Marylyn Thorpe with her part of the time neared victory after Dr. Thorpe had at first resisted with the contention she was an unfit parent. Opposing counsel, while withholding details of the agreement last night, indicated frankly that partial custody would be granted the actress, who was (See ASTOR, Page A-5.) EXPECTS SECOND CHILD Crown Princess Marie Jose Stay- ing in Castle Near Turin. NAPLES, August 13 (#)—Crown Princess Marie Jose is expecting the birth of her second child early next year, sources close to the royal family said today. The tall, gray-eyed Belgian princess is staying in a royal castle near Turin. Her husband, Crown Prince Humbert, joined her there today upon his return from the Olympic games in Berlin. The only evening paper in Washington with the Associated Press News and Wirephoto Services. sk skokok ok () Means Associated Pre: Yesterday’s Circulation, 129,677 (Some returns not yet received.) TWO CENTS. TAX CUT IS SEEN IN CONF AT WHIT ERENCE E HOUSE Morgenthau and Congressional Leaders Assur e Country No New Levies Will Be Needed. IMPROVED BUSIN ESS CONDITIONS ARE CREDITED BY CONFEREES Gains Will Enable New Deal to Balance Budget “Much Earlier,” Senator Harrison Declares. BY J. RUSSELL YOUNG. A prediction that taxes will not be increased within the next year and may, in fact, be “slightly reduced,” was made today by Secretary of the Treasury Morgenthau and congressional tax leaders following a conference with President Roosevelt at the White House just before the Chief Executive left on his flood control inspection tour. Morgenthau and Chairmen Harrison and Doughton of the Senate Finance Committee and House Ways and Means Committee, respectively, stated at a joint press conference that followed the meeting with the Pres- ident, that improved business conditios balanced budget much earlier than we No definite time was fixed when tax structure or the balancing of the and that within the next two weeks h Finance Committee to meet to study said he would call his Ways and Me: purpose when the time arrives. Spring placing corporate taxation on which may result in the elimination of taxes.” Roosevelt Leaves For Trip Through Flood-Hit Section ; Fy the Assocliated Press. Off on a swift-moving flood control survey trip through Pennsylvania and New York, President Roosevelt today set himself to view personally before dusk some of the area inundated by last Spring'’s overflows. moved across Maryland and into Pennsylvania, Mr. Roosevelt had be- fore him not only the subject matter at Cleveland and Chautauqua, N. Y.— the latter on foreign affairs—but also | a tax revision suggestion by Secre- tary Morgenthau. Almost immediately, the President motored to his special train, which left the Capital shortly after 10 am. JOHNSTOWN AWAITS PRESIDENT. Chief Executive Will See Rehabilita- tion Work. JOHNSTOWN, Pa., August 13 (P).— The partially rehabilitated Cone- maugh River Valley was preened to- day for an evening visit by President Roosevelt, who will drive 60 miles about the area devastated by the St Patrick’s day flood. The President, whose special train arrives about 6 p.m., will inspect eight completed or contemplated rehabilita- tion projects, then view the tentative $14,000,000 flood control program. This program would provide a huge dam across the Conemaugh Valley, about 11 miles south of Johnstown, to create a new reservoir supplement- ing the Quemahoning Dam, which held last Spring despite tremendous weight of flood waters. Sites of three coal-mining com- munities, Holsopple, Seanor and Foustwell, will be inundated under the plans of Army Engineers under Col. E. V. Covell, Engineer chief for | the Pittsburgh district, embracing | Monongahela and Allegheny water sheds. Final administration approval of this project has not yet been obtained. In an interview, Lee H. Walker, Pennsylvania, said the President would be taken to see four completed proj- ects costing $1,576,000, which employed more than 7,000 persons at the peak. Four other projects, some under way, some yet to be requested, and costing about $431,000, also will be shown the Chief Executive. A late afternoon stop today at Johnstown, where damage esti- mated at $28,000,000 was caused by a St. Patrick’s day flood, was the first on the President’s three-day trip. City officials arranged to show him where high waters surged through the business district. Disclosures to Be Delayed. Any steps to prevent recurrence of flood damage at points to be viewed on the tour apparently wili not be The couple have one child, Maria Pia, born September 24, 1934, Marriage of Du By the Associated Press. . WILMINGTON, Del, August 13.— Mr. and Mrs. William du Pont, jr., announced yesterday the marriage of Du Pont’s sister, Mrs. Marion du Pont Somerville, to George Randolph Scott, actor. ‘The wedding occurred March 23 in Charlotte, N. C. Scott is in moving pictures. Mrs. Somerville is the daughter of the late Mr. and Mrs. William du Pont of Wilmington. She spends most of her time at her Montpelier, Va., resi- dence, where she maintains extensive stables. She and her first husband, Thomas H. Somerville, were divorced at Reno in October, 1935. Scott is a native of Orange, Va. Will Maintain Home. ORANGE, Va., August 13 (P).— Mrs. Marion du Pont Somerville, A (See ROOSEVELT, Page A-. Pont Heiress To Film Actor Is Revealed whose marriage last March to Ran- dolph Scott of the films was an- nounced by the Virginia-born actor in Hollywood today, will continue to maintain her palatial residence near here, her secretary said. The secretary, Maj. H. B. Craig, said that the nationally-known horse- woman whose stables house 100 thor- oughbreds and steeplechasers, will still live at her estate, Montpelier. It | is the old home of President James | Monroe. Scott's announcement of the wed- ding at Charlotte, N. C.,, on March 23, surprised citizens of historic Or- ange County, where the 33-year-old actor was born and spent much of his | | life. He said today that his wife was ex- pected to arrive in the California city within & few days, but Craig did not (See SOMERVILLE, Page A-2. ) As the presidential special train | of addresses to be delivered tomorrow | director of W. P. A. operations for | ns had so fortified the Treasury that no new or increased taxes will be needed at the next session of Congress. “Business improvement is at such a pace that we are going to reach a expected,” Senator Harrison said. to expect this promised scaling of the budget, Harrison said he will put to work immediately ewperts of the Joint Committee on Internal Revenue Taxation to study the subject of tax revision e will summon members of the Senate the subject. Representative Doughton ans Committee to meet for the same This study of the whole tax structure will include the law enacted this a new basis. The sturdy would seek, it was said, the elimination of “inequities” and “administrative difficulties™ some of the miscellaneous or “nuisance 4 At a later press conference, Mor= genthau said no cut in liquor taxes was contemplated, but beyond thag declined to say what taxes were spe cifically in mind. “Lots of taxes cost almost as much money to collect as they bring in in revenue,” the Secretary said. Morgenthau asserted changes in the 1936 tax bill, imposing levies on the undistributed earnings of corporae tions, would depend on what the ex- perts find. He noted, however, that the bill had not yet become effective. Morgenthau Explains Figures. Asked if an officially reported $38,- 000,000 increase in revenues since the fiscal year began on July 1 was the basis for the program, Morgenthau replied that the figures on which his statement rested were those received every month from the Treasury ex- perts, dealing with estimates of future receipts, based on business conditions. Today's conference in the private study of the President on the second floor of the White House was the out- growth of a communication to Mr. Roosevelt from the Secretary of the Treasury several days ago in which Morgenthau called attention to the steadily increasing business and revé- nues and suggested a conference to discuss the subject. This letter from the Secretary fol- lows: = “At your request, the Treasury De- | partment since the adjournment of | Congress has been giving careful ate | tention to the adequacy of the tax | structure to meet the revenue needs of the Government and generally to the | desirability of additional tax legisla- tion. “We have reached the conclusion that no new taxes and no increases in present tax rates are necessary. Due to continued improvement in business conditions, the yield of existing taxes is steadily increasing. “Total revenues from sources other than the outlawed processing taxes in the fiscal year 1936 were substantially higher even than our estimates of last January. In addition, the tax struc- ture was strengthened by the revenue act of 1936, which constitutes a major improvement in our tax system. “With continued recovery we are steadily approaching a revenue yield which will be entirely adequate to cover the expenditures of government and to reduce the public debt. “Any changes in the tax structure should, therefore, not be in the direc- tion of increased taxes. But this very situation makes it possible and timely | for us now to consider revision of the | tax laws with the purpose of removing any inequities or unnecessary adminis- trative difficulties that may be inher- ent in the law and abating or modify- ing taxes that create unfairness to consumers or to trade or have other disadvantages which outweigh their revenue yield. “I suggest the desirability of your asking Senator Harrison and Repre- sentative Doughton of the Joint Com- mittee on Internal Revenue Taxation to discuss with you the advisability of undertaking soon a thorough examina- tion of the tax laws with the object of making improvements of the char- acter I have outlined. “It goes without saying that we shall (See TAXES, Page A-2.) Readers’ Guide After Dark Amusements Answers to Questions._ Cross-word Puzzle. Death Notices Editorial Finance Lost and Found Melcher in Hollywood...B-19 News Comment Features A-11 Washington Wayslide.....A-2 Women's Features.