Evening Star Newspaper, November 22, 1936, Page 1

(U. 8. Weather Bureau Forecast.) Fair and colder today; tomorrow mostly cloudy and slightly warmer; diminishing northwest winds. ‘Temperatures—Highest, 61, at 1 p.m. yesterday; lowest, 46, at 7 a.m. yesterday. Full Associated Press News and Wirephotos Sunday Morning and Every Afternoon. Full report on page B-4. () Means Associated Press. No. 1,653—No. 33,808. Entered as second class matter post office, Washington, D. C. POWER 10 CLOSE MADRID EMBASSY GIVENU.S. OFFICIAL Wendelin Instructed by State y Department to Study F Need for Evacuation. LOYALISTS TO LAUNCH COUNTER OFFENSIVE Map Plans to Surround Insurgent . Force Across River From ! Madrid. r BY CONSTANTINE BROWN. The State Department last night nstructed Eric C. Wendelin, secretary n charge of the American Embassy §n Madrid, to seriously consider the desirability of closing the embassy in the Spanish capital and proceeding with the American nationals who de- sire to follow him to whatever port they could reach most easily. Following the precedent set last April, when disturbances occurred in Addis Ababa as the Italian armies approached the Ethiopian capital, the State Department has authorized the American diplomatic officer in charge of the embassy to use his judgment sbout the evacuation of the capital. The State Department is showing real anxiety over the possibility of dangers confronting the personnel of the embassy and the 76 Americans who have found refuge within the walls of the embassy bullding in the | event of hand-to-hand fighting in | Madrid. Furthermore, despite the as- surances given by Gen. Francisco Franco that the rebel air force will do its utmost to avoid bombing foreign embassies and legations, there is a strong possibility that some aviator Longer Sentences BY REX. COLLIER. Longer sentences for intoxication and vagrancy and fewer releases on probation and parole have combined recently to aggravate already “intol- erable” congestion in local penal in- stitutions, A study of sentences meted out in Police Court during the past &ix months reveals a drastic shift from a policy of apparent leniency toward liquor imbibers to one of stiff sen- tences and fewer probationary terms. ‘The result has been a deplorable increase in the overflow populations at the District Jail and the Occoquan Workhouse, with inevitable multiplica- tion of health, social and morale-de- stroying hazards at these out-moded institutions. Harassed jail and workhouse offi- cials are known to be thoroughly alarmed over the increasingly critical | situation, and apparently their only | hope is that some provision will be he Sundiny WITH DAILY EVENING EDITION Shar WASHINGTON, D. C, SUNDAY MORNING, NOVEMBER 22, 1936—126 PAGES. Minor Offenders Jam Prisons; D.C. Penal Authorities Alarmed for “Drunks” and “Yags” and Fewer Paroles and Proba- tion Cases Help Create Problem. made for an expansion of ‘penal fa- cilities when Congress convenes. ‘While the Police Court bench un- doubtedly is aware of the fact that’ inmates of the jail are forced to sieep on floors and those at the workhouse are packed into dormitories in sar- dine fashion, the judicial attitude ap- pears to be that jail congestion should not be taken into consideration in ad- ministering justice. The Corrections Committee of the Council of Social Agencies, deeply con- cerned over the penal crisis here, is endeavoring to arrange a conference of Police Court judges, prosecutors, penal authorities, probation officers and others interested in good law en- forcement, with a view to bringing about a co-ordination of penal pro- cedures in the District of Columbia. It is reported some of the fudges have indicated they would co-operate (See PRISONS, Page A-20.) ROOSEVELT PARTY LEAVES TRINIDAD {Speeds Down East Coast of South America on Way to Peace Parley. BS the Associated Press. ABOARD U. S. S. CHESTER AT SEA, November 21.—President Roose- velt and his party sped down South | America’s east coast tonight for Rio | de Janeiro, on thé way to the Inter- | American Peace Conference at Buenos | Aires. The cruisers Indianapolis and Ches- by mistake may drop a bomb and kill some American national. The State Department in its desire to avoid any possible conflict with either of the Spanish factions -prefers to have the embassy removed to some Spanish port until order is restored in the capital. 4 Statement Is Quoted. Last night the State Department | ter, bearing the United States group, left mountain-rimmed Port-of-Spain, | Trinidad, at 2:15 p.m., after an eight- hour stop for refueling in Paria Bay. During the day President Roose- velt went fishing in a whaleboat, but | returned empty-handed three hours | later. He wore old gray trousers, a | sleeveless blue sweater and a soft, | | the BANK BOARD HINTS | { Federal Reserve Concerned Over Steady Inflow of Gold. BY the Assoclated Press. Apprehensively watching a steady inflow of gold, the Federal Reserve Board gave a strong indication yester- day it may increase reserve -require- ments again, to curb credit expansion by “freezing” more than $1,000,000,000 of excess bank reserves. After a week of conferences about the effect of heavy gold imports on national credit situation, the board, through Chairman Marriner 8. Eccles, announced that “careful con- sideration” was being given to the .quesnon “with a view to taking such | | action at such time as appears to be ! necessary in the public interest.” Reserve officials said this indicated NEW CREDIT CURB, G. 0. P. PONDERING ATTITUDE: TOWARD ROOSEVELT PLANS Party Reorganization Also Problem Confronting Republicans. HAMILTON IS FAVORED TO STAY AS CHAIRMAN Latest Popular Vote Returns Show Roosevelt With 60.9 Per Cent of Ballot Total. BY G. GOULD LINCOLN. Republicans have scarcely had time to catch their breath since their over- whelming defeat in the national elec- tion, but already are facing new problems, notably: What is to be their attitude toward the Roosevelt program in the coming session of Congress? What, if anything, they &re to do about party reorganization? The burden of deciding the Republi- can stand on the legislative proposals of the New Deal President and his aides in Congress will fall more particularly on the thin G. O. P. line in the Senate and in the House. Party reorganization, if there is to be any, will lie within the province of the Republican National Commit- tee, and to a lesser degree, the chair- men of the Republican State Com- mittees. Hamilton Back in Capital. John Hamilton, chairman of the Republican National Committee, has returned to Washington and taken charge of the headquarters. It is to | be expected that demands for a re- organization of the national commit- tee, with a new chairman, will come from some quarters in the Republican party. They came after the Hoover I.ss:: !.her e;cl'xllltow!:?‘t }::"::;r‘:n:ch ox: white-visored hat. Two Secret Service offi ied him. military operations to Madrid, the fif;‘;“'y°°‘a';"’:“‘,‘_ wfn Seymour of Department of State has become In-| Trinidad visisted the President aboard creasingly concerned for the safety | the Indianapolis, and James Roose- :g'.fim;f;.fi'.:h&.g?fl.fifl [ elt, the President’s son, returned the e el e visit with Capt. Paul Bastedo, a pres- an e considerable number idential aide. American nationals now in the em-| Barefoot colored vendors did a land- it e, e G, Wendeln, T |t Gunmiues ATCUE thors partis oo 5 3 3 e docks wl e American vessel charge of the American Embassy, that | were in the harbor. . it feels he should give immediate| At a press conference aboard the consideration to Phe desirability of | Indianapolis, Mr. Roosevelt said he closing the embassy and proceedlnu“ with his American staff and such cember 11 on his way back from American nationals as wish to take | Buenos Aires, to do some Christa:as advantage of the opportunity to leave ' snopping. Madrid under his escort to whatever ~The American cruisers, which are port they can most easily reach. The expected to reach Rio de Janeirc department does not know what facil- | November 27, steamed tonight through ities for evacuation are available to alternately cloudy and clear weather. Mr. Wendelin and no final decision Those aboard wore tropical clothing. will be reached until he has replied | = i probably would land at Trinidad De- | to requests for information regarding the practicability of leaving for the| coast.” Of course, Secretary Wendelin is allowed to use his discretion regard- ing the advisability of proceeding with 76 American in the embassy and |RAILWAY TO RESTORE SALARIES DECEMBER 1| Nashville, Chattanooga and St. a probability that, unless the present | situation changes, reserve require- | ments may be further increased in January or February, withdrawn for the holiday season flow back into the banks. On August 15, the board increased requirements by 50 per cent to elimi- nate about $1,500,000,000 of excess re- serves as a basis of “possible injurious credit expansion.” Under the law, it could increase re- | quirements by another 50 per cent of the level existing prior to August 15. Excess reserves are banks’ idle funds over and above those held as a re- | quired reserve behind deposits. Eco- | nomists estimate that every dollar of ! excess reserves can support from $8 to $10 of credit. Thus, to guard against “runaway” credit inflation, the Federal Reserve Board seeks to (See RESERVES, Page A-7.) |SIX DROWN, 10 SAFE IN SINKING OF BOAT after funds | the 100 other Americans who still are in Madrid to some sea port like Valen- cia, where he will remain until the situation is clearer and the fight over | Madrid is ended. The situation in Barcelona seems less strained. But here again, expect- Louis Goes Back to Pre- Depression Level. Br the Associated Press | NASHVILLE, Tenn, November 21. | —President Fitzgerald Hall of the ing some bitter fighting in the course of the next few weeks, the State De- partment has communicated with Mahlon Fay Perkins, American consul general in that port, authorizing him to leave the city with the American nationals still there, should the situ- ation warrant it. Instructions Sent Perkins. Nashville, Chattanooga & St. Louis | Motorship Founders in Georgian Bay, Ontario, While on Last Trip. | By the Associated Press. OWEN SOUND, Ontario, November defeat in 1932. They come after every defeat of a national political party. In the Winter of 1928-29, after Al Smith had been disastrously defeated, the clamor of Southern Democrats, in particular, for the scalp of John Raskob, then Democratic national chairman, was heard from coast to But Everett Sanders, chairman of the Republican National Committee during the Hoover 1932 campaign, held on for a couple of years, and Raskob was still .chairman of the Democratic National Committee when the Demo- cratic National Committee met in Chicago four years after Smith's defeat. Hamilton, it would appear, can hold on to the Republican chairmanship if he 8o desires. Indeed, some of the members of the national committee have already declared themselves in favor of his retention as chairman coast. | The present national committee has been elected to serve for the next four years, or until the next Republican national convention. Hamilton 18 will- | ing to continue as chairman, provided he has a united backing. If there were any serious breach in the party leadership over his continuance in office, his own personal desire might be to step out. He is quite willing to (See REPUBLICANS, Page A-10) HOUSEKEEPER IS HELD ON CHARGE OF MURDER 45-Year-Old Maine Widow Ac- cused of Shooting Farmer After Row. B the Associated Press. HOUDINI HARRISON TAX FRAUDS CASE TRID ON PAROLE Former Revegue Employes and Attorney Serve Less Than Year. ‘Two former Internal Revenue Bureau | employes and a New York tax con- sultant, convicted of conspiracy to de- Aunt Drops Dead at Bier Of Fay Webb Floral Tribute “From Rudy” Conspicuous | | at Funeral. By the Associated Press. SANTA MONICA. Calif., November FIVE CENTS FLYINGSQUADRONS FORMED FOR CHEST Will Attack $620,000 Short- age in Drive for Goal of $1,969,000. 21.—Miss Winifred Webb, 60, fell dead “Flying squadrons” will swing into today as she passed the bier during full action today to help wipe out the funeral services for her niece. Faj | $620,000 shortage in the Community | fraud the Government in settling an | Webb, former wife of Rudy Vallee, income tax case, were paroled yester- | musician and singer. day after serving less than a year in Most conspicuous of Jail. | the Board's action were John W. Hard- and clusters of orchids, with a fringe | grove, former associate chief conferee of heather, which rested against the of the Internal Revenue Bureau; head of the casket. It bore a card Henning R. Nelson, a former auditor of the bureau, and Frank M. McElhill, tax accountant of New York. They were found guilty of conspiring to “settle” an income tax assessment | against Thomas N, McCar- for & fee of $10,000, and on December 20, 1935, were sentenced to from four | months to two years in jail. McCarter reported the proposal to the Treasury Department, the tele- | phone wires of the suspects were tapped and the arrests followed. Banked Large Sums. One of the most damaging bits of | testimony against Hardgrove during the trial was that he had banked | $81,000 in excess of his Government salary between 1924 and 1933. He denied the accuracy of this testimony, but said he had won $15,000 at the races during that time. The board last June refused to parole | “From Rudy.” A _crowd of more than 1000 over- flowed the private funeral home. Miss Webb died Wednesday from | complications after an abdominal | operation, NATIONAL MISSION OPENS HERE TODAY Capital Called to Take Lead in Bringing Spiritual Awakening in U. S, Calling upon the National Capital the prisoners, emphasizing the im- portance of insuring “scrupulous to take the leadership in a struggle to | bring a spiritual awakening through- honesty” in Government officials. In ‘i out the .Nation, a distinguished group reversing this position yesterday, how- | of world religious leaders gathered in ever, it was pointed out that all three | washington today for the opening of | men, in addition to serving nearly a|the - four-day National Preaching Railway announced today that sal-|21 (Canadian Press).—The 100-foot aries and wages of all officers and | motorship Hibou heeled suddenly and émployes will be back to pre-depres- | sank in Georgian Bay today, drown- sion levels December 1. “Effective December 1, 1936,” Presi- | dent Hall said today, “complete sal- | |ing the captain, the stewardess and five seamen. Ten survivors reaclied shore on rafts | ary restoration to everybody will have | which they paddled with their hands been made, this last action to in-|for half a mile to Squaw Point, about | crease pay rolls about $7,000 per four miles north of Owen Sound. They were taken to a hospital, suf- The following instructions were sent ' month. Not considering material in- to Mr. Perkins: | creases in employment, wage resto- “We have weighed the various fac- IAtions are equal to more than $60,~ fering from exposure. Capt. Norman McKay, who was tors in the general and local situation | 000 Per month above the reduced | taking the Hibou on her last voyage of affecting our interests and feel that there remains only the question of the | safety of our staff, as all practicable | steps have already been taken to pro- tect our other interests. We interpret | your telegram under reference to | mean that from the point of view of your personal safety, conditions in! Barcelona itself are not yet in your | Judgment such as to warrant your (See SPAIN, Page A-4.) . RETIRED PASTOR SLAIN IN OFFICE Shooting Occurs at Isolated Coal Mine of Which He Was President. By the Associatea Press. SCRANTON, Pa., November 21.— E. E. Shumaker, 70, retired Congre- gational minister, was found shot to death today in the isolated office of the Pure Coal Co. of which he was president, and police said they be- lieved he may have been killed resist- ing a robbery. Chief County Detective Joseph Rafter said Shumaker probably was slain by a robber who surprised him in the office, on a mountain near Blakely Borough, and shot him twice in the back. There was no sign of a struggle in the room. No weapon could be found. Telephone wires leading to the building had been cut. Police 'examination disclosed Shu- maker had a gold watch and $40 in Fifteen minutes earlier, investiga- tors said, an employe, Joseph Dash, 16, of Blakely, had been in the office and talked with Shumaker. levels of 1932.” HOME TO CLAIM LEGACY IF LEFT TO WOMAN, 84 Possible Heir to $300,000 Ran Away From Iowa Home When a Girl. BY the Associated Press. HERNDON, Pa., November 21.—An 84-year-old woman who ran awa; { from her Iowa home as a girl, may | inherit a $300,000 fortune, officials of |the Burd Memorial Home for the Aged disclosed today. But as mat- ters stand she has signed it away. Mrs. Mary Hoover, a guest, said she was the sister of Mrs. Florenda Clark, who died recently in Iowa, leaving the fortune. Mrs. Hoover entered the Burd Home after the death of her husband 10 years ago. Rev. 8. E. Heisey, super- intendent, said the home would claim the fortune. | | i BY the Associated Press. NEW YORK, November 21.—Amer~ jcan aviators were pictured by the ning for each other. ‘Those fighting with the insurgents, the Sun says, are not aware that they E3RE 2 2 < f g g the year to Georgian Bay and Mani- toulin Island points, was on the bridge with First Mate James Agnew when the vessel listed. Both were thrown | into the water. Nome of the survivors ! could explain the foundering. - CRASH KILLS FOUR Fifth Man Near Death After Car Collides With Truck. | FORT WAYNE, Ind, November 21 | ().—Four men are dead and another | was near death tonight following an | automobile-truck crash on U. S. Road 30, 10 miles west of here today. The dead: Carl 8ills, 36, of South Bend; Charles Butler, 48, of Warsaw; Scott Aiken, 34, of Chicago, and Phil Seifer, 45, also of Chicago. Seifer, owner of the Champion Laundry in Chicago, died tonight of a skull fracture. The other three men were killed instantly. John Foster, 38, also of Chicago, suffered a skull frac- ture, and physicians here said tonight his condition was critical. U.S. Flyers Reported Fighting On Opposite Sides in Civil War of $1,500 & month, the Sun says, plus a bonus of $1,000 for every enemy brought down. “It is hard to estimate how many American pilots now are taking part in the battles above Madrid,” the article continues. “Most of those re- STONINGTON, Me., November 21. | —A 45-year-old widow, Mrs. Amelia Merchant, who, Sheriff Harold Hodg- kins said, shot down Roland Weed, 34, a farm laborer for whom she acted | as housekeeper, during an argument | last night over another woman, faced a charge of murder tonight. Arrested today after Weed died at his home on this island community where the shooting bdccurred, Mrs. Merchant was taken by Hodgkins to| the county jail at Ellsworth on the mainland. Prior to being lodged there to await Superior Court action next April, she pleaded innocent to the charge of Weed's murder. Hodgkins said his investigation showed Mrs. Merchant and Weed, for whom she worked for the past seven years, quarreled earlier yester- day over his alleged attentions to another woman. year, had been punished severely by the damage to their otherwise good reputations. The parole announcement Was ac- companied by the following statement from the board: “In our decision of June 18, 1936, | we denied parole to these applicants, mainly on the ground that they had not served a sufficient time for con- spiracy to defraud the Un:ted States Government. We there pointed out that nothing is more importan: than preserving the honesty and integrity of our Government and insuring | scrupulous honesty in dealings be- i tween Government officials and the | public. |” “The practical difficulty confront- ing us is the short sentence which these men received. The court im- posed a minimum sentence of four months and & maximum of 24 months, this being the statutory maximum. This seems to the board to be a short maximum term for such a serious of- fense. “These prisoners have now served approximately three times the mini- mum gentence imposed by the court (See PAROLE, Page A-20.) Northwestern and Marquette . Toppled in Day of Upsets 12,000 persons saw Georgetown defeat Mary- land for the first time in the three years of their modern rivalry at College Park, 7-6, thousands of other Washington fans shared the surprise of the Nation as two hitherio undefeated and untied major elevens suffered their first de- feats of the season amid a steady Lehigh, 18; Lafayette, 0. N.Y.U,25 C.C.N Y, 1T Penn State, 14; Bucknell, .0. Geneva, 3; Washington and Jeffer- son, 0 North Carolina, 14; South Carolina, 0. Georgia Ohio State, 21; Michigan, 0. Illinois, 18; Chicago, 7. Baylor, 13; Southern Methodist, 7. Texas Christian, 13; Rice, 0. ; Texas A. & M, 0. California, 20; Stanford, 0. Oregon State, 18; Oregon, 0. Colorado State, 19; Colorado Col- lege, 12. SECRETS ' of the SEGRET SERVICE A thrilling series of articles on the exploits of the Secret Service based on official records. BEGiNS TODAY On Page 6, Part 4 | Mission. Inaugurated in September after two years' preparation by Protestant pastors, writers, evangelists, educators and laymen in this country, the Na- tional Preaching Mission arrives in the focal point of the Nation, ac- claimed throughout the country as the greatest religious revival of a genera- tion. Every Protestant clergyman and church-goer in this city and its vicinity will be asked to join with the visitors in a series of revival services and mass meetings beginning today and cul- minating in a great double mass meet- ing in Constitution and Memorial Continental Halls Wednesday night. Youth Meeting This Evening. This afternoon at 3 o'clock the initial session will be held in Calvary Baptist Church, Eighth and H streets, with Dr. Jesse M. Bader, director of the mission, presiding. A half hour later, at 4 o'clock, another mass meet- ing will be held at the Washington Cathedral and at 7:30 p.m. a youth mass meeting i§ slated for the Na- tional City Christiah Church, Thomas Circle. Twenty-one ministers and laymen of the various Protestant denomina- tions from this country and Europe— part of a band of 55 eminent speakers participating in missions in other cities—will play prominent roles in the activities here. They will be aided by ministers and lay leaders of Wash- ington churches. Among those whom Washington will be privileged to hear will be Dr. E. Stanley Jones, famous missionary to India, and Miss Muriel Lester, leading British social worker, each of whom Chest campaign. Composed of some of the most “tactics,” to take up the slack, in- crease old subscriptions and inject new spirit into the fight. The Chest goal of $1,969,000 lacks more than 30 per cent of being com- plete. With only two more reports ahead—Monday noon, and Tuesday night—the Chest “board of strategy” is devising new ways and means of attack on the problem. Campaign Chairman Coleman Jennings and his strategy board labored all day yes- terday and far into last night on resh “war plans.” ‘This board, consisting of the Chest Campaign Committee and prominent workers, agreed, according to an offi- cial announcement, that “one serious drawback is the failure of the people to realize that they are giving to the support of 65 organizations and not to one agency, the Chest.” Many people, it was said, “would give $10 | to an individual agency for help, | carelessly toss the same amount to a Chest solicitor and consider that they have done their duty, although they could easily have given many times | the amount.” Obligations Realized. others are realizing their it was admitted. This Still obligations, was demonstrated in a typical letter | received yesterday. “I had worked for the Chest and had read about it,* the writer said, “and thought I knew somthing about it. I had been thinking of the Chest in terms of one agency and thought my gift of | $50 was fairly generous. When I realized that $50 is less than $1 per year for each of the 65 agencies, I de- cided that I ought to do more. “I am inclosing a pledge for $150. I cannot pay all now, but I can pay it throughout the year. I am glad to learn of this plan that I may share a little more generously with those who need help.” In addition to the work of the flying squadrons, solicitors in every unit plan to resolicit those who have decreased donations. Workers of the Metropolitan Unit and of the Special Assignments Unit planned to work all day today, visit- ing people they have been unable to reach at their homes during the week. Many churches will return to the subject of the Chest, which was the center of much ecclesiastical atten- tion on last “Community Chest Sun- day.” From many pulpits, according to pledges from the D. C. Federation of Churches, prayers will ascend to- day in behalf of the Chest. From Chest campalgn headquarters came last night another official denial of the “same old stories about excessive overhead and high salaries for the Community Chest staff.” This was aimed at “one Govern- mental department report that people were refusing to contribute to the Chest ‘because 80 per cent of the money goes for overhead and ad- ministration.’ " will speak on six occasions during the Scotching this misstatement, Herbert (See MISSION, Page A-5.) (See CHEST, Page A-8.) Two Rag-Pickers Are Jailed In Six Beheading Mysteries BY the Assoclated Press. CLEVELAND, November 21—Two men, described by police as eccentric, occupied cells today while detectives searched a dilapidated dwelling they shared for possible clues in the city’s six headless killings. > The men were arrested in a ram- shackle house near an isolated dis- trict in which several of six de- capitated bodies were found within the last year. A nondescript painting in the house depicted a medieval execution, & headsman holding up a severed head with decapitated bodies lying nearby, Detectives Ralph Kennedy and Leo Duffin said. The officers found five razor-edged butcher knives. An axe and hatchet, both stained, were found in & lean-to 1 Police chemists said the spots were wo small to determine whether they were human blood. One suspect as- serted they resulted from *chopping mahogany.” Chemists planned to examine also a soiled butcher's apron. Officers said three large mongrel dogs were quar- tered in the poorly-lighted dwelling. A concrete basement -floor was broken, the detectives said. Ken- nedy and Duffin claimed earth be- neath these appeared newly disturbed. Police dug into the soil, but found nothing. Books and pamphlets, the detectives said, included works on sex and an- archy. The officers recalled that the five male victims were emasculated. The suspects said they were rag- pickers and junk dealers. B ALLEN INSISTS L. §. PAY PREMIUM FOR D. C. DICTATORSHIP Asks More Than $5,000,000 From Government for Support of City. COMMISSIONERS ASK EQUITABLE ADJUSTMENT Lack of Political Equity for Cap- ital Residents Pointed Out to Fiscal Probers. BY JAMES E. CHINN. Commissioner George E. Allen told President Roosevelt's special fiscal re- lations investigating committee yes- terday that if the Federal Govern- ment desires to continue its dictator- ship over the District a premium should be paid for the privilege far in excess of the $5,000.000 the Na- tional Government paid toward the support of the city this fiscal year. Allen made a vigorous plea for permanent adjustment of ‘the fiscal | relations problem on the basis of | justice and equity. He was supported by the two other Commissioners, Mel« vin C. Hazen and Col. Dan 1. Sultan, and Maj. Daniel J. Donovan, District auditor and budget officer. All three |cited facts and figures showing that the United States is not now paying |& fair share toward the cost of op- ieuunx and maintaining its Capital city. The conference, held behind closed doors, developed into a round table | discussion of the District’s serious financial plight, resulting chiefly from the failure of the Federal Govern- ment in regent years to bear its equitable burden of municipal ex- penses. | U. S. Control Allen’s Theme. ‘The control exerted by the United | States over the District was Allen’s theme. He pointed out that not only floral | successful solicitors in the Chest Or- | do the residents lack political equity, tributes in the little funeral chape: | ganization, these squadrons have been but they have no vmgc wmte\ergr ir; The beneficlaries of the Parole was a large pillow formed of gardenias | formed as part of a new system of the expenditure of their tax money. | The Budget Bureau, a Federal agency, he declared, first determines the amount the District should spend, and then Congress dictates how and when it shall be spent. “Such a situation constitutes dic- tatorship” said Allen. “I believe if the Federal Government desires to continue such an arragement, it should pay, and pay well, for the privilege. The $5,000,000 turned over |10 the District this year, certainly does not represent a fair and just amount.” | Allen’s statement obviously made an impression on the committee. Several members made penciled notes when he finished. Commissioner Hazen argued for a :F!denl payment of at least $12,000,- 1000 on the theory that this sum rep- | resents the value of the services it re- ceives from various municipal depart- ments, Two Other Points Stressed. Two other points also were stressed by Hazen: 1—The loss in tax revenue to the District of the ever-increasing taxe exempt property holdings of the Fed eral oGvernment which have an as- sessed valuation of $649,728,158, and amount to about 30 per cent of the total area of the city. 2—That every parcel of land taken | from the tax rolls by the Federal Gov- | ernment adds to the burden of the | taxpayer. | A chart prepared by Fred D. Allen, | tax assessor, was introduced by Hazen |to show that the United States will | own about half of the total area of the District within the next 13 years, if it acquires property at the same rate of the last decade. | Col. Sultan, Engineer Commissioner, | discussed various activities under his | supervision and explained their pare | ticular value to the Federal Govern= ment, while Maj. Donovan devoted his | testimony primarily to District financ- {es and the condition the municipal government faces in the coming fiscal year unless additional revenue is forthcoming. Donovan also digressed from the financial angle to point out that the proposal for reorganization of the municipal government in the interest of efficiency and economy has no re= lationship to the fiscal relations study. Just prior to the conference J. L. Jacobs, director of the fiscal rela- tions investigation, received a three- page typewritten statement from | Rufus S. Lusk, president of the Wash= ington Taxpayers' Association, urge |ing that continued study be made of the reorganization proposal. He de- clared a study of this subject would be helpful in reaching a solution to (See ALLEN, Page A-4.) RAIL LABOR ACT UPHELD BY COURT U. S. Appeals Bench Approves Measure on Union Dues Deductions. By the Associated Press. DENVER, November 21.—Constitu- tionality of the railway labor act, as amended, was upheld by the Federal Circuit Court of Appeals today. The suit was brought by the Broth~ erhood of Railway Shop Crafts of America, Rock Island system, against trustees of the Chicago, Rock Island & Gulf Railway Co. and the Chicago Rock Island & Pacific. It involved union dues deductions. The act forbids railroads to deduct union dues from eployes’ wages. The case was appealed from the Kansas Federal District Court. The company deducted dues from pay envelopes until 1934, when it called the union’s attention to the provision in the railway labor act, the suit said. The union contended the amend- ment infringed upon the fifth amend- ment to the Constitution. The come pany notified the union it would maks no more deductions unless ordered by court. | | ’ e