Evening Star Newspaper, March 30, 1937, Page 5

REASURY BEEINS STUDY OF TAKE Designed to Gather Data on How Levies Are Operating. BY tte Associated Press. Informed authorities said today the Treasury has begun a broad study of the Federal tax structure They emphasized the study is mot pointed toward changes in existing tax rates, but is designed primarily to gather new data on how efficiently various levies are operating and their | velative value as revenue producers. Centered on Profits Tax. The canvass, directed by Under- secretary Roswell Magill, was reported to be centering on the new undistrib- uted profits tax. This levy, effective for the first time on 1936 corporation incomes, has drawn criticism from business in- terests, which contend that it un- fairly penalizes corporations in debt and retards industrial expansion. Officials said 1936 tax returns would be studied carefully to ascertain whether inequities existed. Th that no recommendations for chang- Ing the law would be made until the | study is completed. several month As one phase of this study, Secre- tary Morgenthau said late yesterday that revenue agents were investigat- ing to determine why requests making delayed income tax returns this month increased 33 per cent over last year. Computing Returns Difficult. Some business spokesmen have con- tended that complexity of the profits tax made it difficult to compute re- turns. Morgenthau said the levy may have been a factor in the increased requests for extensions. Taxpayers may file tentative re- turns by the March 15 deadline—if one-fourth of the estimated paid—and receive a 30-day extension for making final returns. The extension requests may have whittled March revenues substantially. Morgenthau's statement indicated Treasury concern over whether in- This may require come tax receipts would come up to | the $2,372,000,000 estimate for this fiscal year. With only three months remaining before the end of the fiscal period June 30, collections are about $880,000,000 short of this figure, —_— Lump Sum (Continued From First Page.) submitted. As a result of these studies, the following conclusions have been reached: “First. That the three or four point formula contained and recommended in the so-called ‘Jacobs report’ to be used to solve the fiscal relations prob- lem is unsound, both from the stand- point of equity and workability. Itsap- plication would tend to increase mate- rially rather than decrease the contro- versy as to what constitutes an equit- able fiscal arrangement between the two governments. It would further complicate budgetary procedure, in- crease personnel, and multiply execu- tive fingers in the governmental opera- tion with its resultant loss of efficiency and, consequently, increased govern- mental costs. The measuring and valuing of each specific item of serv- foe the District performs for the Fed- eral Government, and the Federal Government performs for the District, as recommended in point 1 of the three or four point formula, would entail a vast amount of statistical work, increased personnel, and the re- sult would be anything but satisfac- tory. There would be no limit as to what the District government could charge in their bill for each service and each bill for such service would cause much controversy as to the cor- rect charge, thus making a multitude of disputes instead of the one problem as at present obtains under existing Pprocedure. “The other two or three points recommended by the Jacobs report are as visionary and fantastic as the one just mentioned and will be dis- cussed at length later. See Weak Tax Structure. “Second. That the entire tax struc- ture in the District is decidedly weak and fails to produce nearly the rev- enue that & modern tax system would raise. That is especially true of its specific and license tax system. Mil- lions of dollars annually in revenue are lost to the District because of this condition. There is an utter lack of equality in the imposition of license taxes and the rate, in most instances, is ridiculously low. The owners of the base ball park pay an annual license | tax of only $5, while the owners and operators of amusement parks, not used for base ball or athletic purposes, pay an annual tax of $65, and the owners of indoor or outdoor swimming pools pay an annual tax of $15. Per- sons engaged in manufacturing bed mattresses pay a tax of $75 per an- num, while the owners of dry clean- ing and dyeing establishments pay oniy $5 per annum. Many more in- stances might be cited. Owners of regular theaters where dramatic per- formances are given, and where operas are sung, pay a license tax of $50 per annum, while the owners or operators of large and profitable moving pic- ture theaters pay only $30 per annum. “The committee believe that the en- tire tax system in the District should be thoroughly investigated with the | view of materially broadening the tax base and equalizing both property and specific tax levies. This is absolutely essential to balancing the District budget. Either that must be done or Congress will be asked to contribute much more than it should to the sup- port of the District government. “‘Having given full and careful con- sideration to the various elements in- volved in the question of the fiscal re- lations between the two governments, the committee believes that a Federal payment adjusting fiscal relations and to be used toward the expenses of the District government of $5,000,000 woulld be a fair and equitable arrange- ment and recommends accordingly.” e RESORTS. ATLANTIC CITY, N. J. The Ambassador ATLANTIC CITY ATLANTIC CITY. N. J. World’s Premier Health and Pleasure Resort. Hotel accom- | tions, Cottages and Apts. (furnished nfurnished) _at_very reasonable cost. VIRGINIA BEACH, Va. EW WAVERLEY HOTEL, Virginia Beach, va. Now open for your Spring vacation. with every convenience. Ask for booklet S. T STEAMSHIPS. BERMUDA VIA FURNESS, $65 up. round trip, with private bath on Monarch of Bermuda and Queen of Bermuda. Fre- travel agent. quent sailings. Ask your TRAVEL. | Mccarran, v added | for | tax is | | | | of the area, today. lEditor-in-Chief, 9, Attends ‘Supreme’ Court Hearing Scribbles Notes Busily After Hawking a Few Copies of Own Paper. By the Associated Press. Nine-year-old Nicky Arundel turned up at the Senate Judiciary Committee hearings today to report “the court business” for his four-page Nicky’s News. Perched on the knee of Senator Democrat, of Nevada, Nicky, who lives at 4310 Cathedral avenue, sold fistfuls of his leaflet to the frock-coated committee members. Its story was headlined: “Supreem Court Hasn't Been Made Bigger Yet. Still Try.” The flaxen-haired youngster, dressed in serge knee breeches and an Eton collar, sat at a press table and scrib- bled notes industriously. The table top came up to his shoul- der, which bore a home-made press badge reading “Editor-in-chief.” “The big news on the radio this week is the Supreem Court,” read the current issue of Nicky's journal. “Also big news is the awful strike. The President wants the court bigger, but this has not been done yet. “From now on Nicky's News will have scoops about this busines: A footnote to that “there are no adds this week because nobody paid for their adds last week.” Nepotism (Continued From First Page.) ice. The total income all of them amounts to $23.500 a year. The names of several police officials are included in the list. Among them are Inspector William E. Holmes, who was reported to have a brother and an uncle in the police department and a brother in the fire department. Their income totals $13,440 a year. Capt. H. H. Groves of the Tth pre- cinct was reported to have a son in the police department, another |son in the fire department, a brother {in the police department and a son- |in-law in the fire department, the | salaries of all of them amounting to $11,300 a year. Many Husband-Wife Cases. Many cases were noted of husbands and wives working for the District. The list also showed that seven cousins are employed at the work- house at Occoquan, Va. Maj. Donovan prepared the infor- mation for the subcommittee, and pointed out it may contain errors or omissions, and that he would not assume any responsibility for its accuracy. He explained it did not | contain the names of laborers, | mechanics or per diem employes. The relationship of those listed is by blood and marriage to the second | degree removed from a common an- | cestor. Maj. Donovan also pointed out that in 25 per cent of the cases, one relative would fail to report any relative, or as many relatives as the relative or relatives reported. STANDARD OIL GIVES 900 PAY INCREASES Boosts in Delaware-Maryland- D. C. Division Will Be Effective April 1. A substantial pay increase for some 900 clerical and other employes o the Delaware-Maryland-District of Columbia division of the Standard | Oil Co., effective April 1, was an- The wage increases, Evans said, | were co-incidental with the series of pay raises negotiated with thousands with the company management. vance who are now receiving $1,800 or less per year will get a flat monthly increase of $15 each. Employes re- ceiving salaries from $1,800 a year up to executive levels will be con- sidered individually by departments, Evans said. Bill “Howled” Through. COLUMBUS, Ohio, March 30 (#).— While Representative R. J. Kiefer pleaded in the Ohio House of Repre- sentatives last night for passage of his bill laying a $10 bounty on wolves and coyotes, other members sounded howls designed to provide an appro- priate background. The House ap- proved the bill, 107 to 1. Spring Genui Suits in tinctive ...oall Radio Joe and His Budget BTEAMSHIP TICKETS Travel Depariment o AMBRICAN EXPRESS COMPANY Bunch. WMAL Tues. 7:30 P. M. his paper disclosed | THE EVENING STAR, WASHINGTON, COURT DECISION GIVEN APPROVAL Wide Discussion Is Given Opinions and Proposed Judiciary Changes. By the Assoclated Press. | CORAL GABLES, Fla, March 30.— | Frederick H. Stinchfleld, president of | the American Bar Association, said { last night the action of the Supreme | Court in reversing its position on the right of States to prescribe minimum wages for women was evidence that justices consider the social aspects of questions as well as the legal. The decision, he’ said, reflects an appreciation by the court of public sentiment. “Most wise people, wishing for the welfare of society, not believing them- selves infallible and having faith in a widely expressed opinion of many persons, will be influenced by that opinion." Stinchfield came here from Min- | neapolis to attend the Florida State | Bar Association Convention which | opens Thursday. COURT PROPOSAL DEFENDED. Dr. Charles Beard Predicts No Harm in Change. NEW YORK, March 30 (#).—De- fending President Roosevelt’s proposal to alter the membership of the Su- preme Court, Dr. Charles Beard, noted historian, said last night that “on at least three occasions, all under the auspices of the Republican party, Con- gress has changed the number of jus- tices for the known purpose of affect- ing the decisions ‘and policies of the court.” “In making these changes the Re- publicans did not violate the Consti- tution,” Dr. Beard said in an address broadcast by a radio chain. “They did not destroy the Constitution. The country did not go to pieces. may venture the opinion that the Constitution, the court and the coun- try will not be ruined if Congress in- creases the number of justices in 1937." OPPOSES AMENDMENT. | Should Be Last Step Resorted to, Says Senator Thomas, ST. LOUIS, March 30 (#).—United States Senator Elbert D. Thomas, Democrat, of Utah declared in an ad- dress here last night that “No one can seriously contend the President's Supreme Court proposal is not strictly within the Constitution.” The Senator said the “real trouble with the Supreme Court is that it has made a definition in the past”; termed the President’s proposals ‘‘moderate,” and declared the constitutional amendment process ‘“should be the | last resorted to.” | “An amendment to the Constitu- tion,” the Utah Senator asserted, “is | a leap in the dark. You never know what you have until the amendment | 1s passed in review. And then again, | some amendments have fallen by the wayside. There is the example of the child labor amendment, which has been before State Legislatures for some time, “It is possible for a small group of | States to effectively block an amend- !mem, thus resulting in casting aside the wishes of the majority. Thirteen States can stop the amending process. And you just about know those 13 States which would throw their weight to blocking an amendment relating to the Supreme Court.” COURT DISCUSSION HEATED. ¢ | Ex-Senator Reed Voices Bitter Opinion | in Florida. PALM BEACH, Fla., March 30 (). —A fashionable audience last night nounced by W. H. Evans, manager heard two speakers attack President | | Roosevelt's court plan and booed one of their number who deplored lack of “the other side of the story.” | James A. Reed, former United States Gannett, New York publisher, assailed All office and other salaried em- | the President’s proposal in harsh terms | ployes not participating in this ad- | before 500 persons in the Everglades | Club. After they had finished, Edward Wy- coff Harris, a New York attorney, arose to “register my regret this is not an open forum and that only one side of the question has becn presented.” Harris, who later described himself as a ‘“progressive Republican,” had only time to add “much good” would have been accomplished “if both sides” were heard, before he was halted by | the boos. J. Leonard Replogle, prominent | Florida Republican and toastmaster at | the Everglades Club affair, ruled Har- | ris was ‘“out of order.” The lawyer | subsided. v | Reed said “no one would dream any one but an anarchist would attempt 250 Hand Tailored BeauBsti 45" 3 Suits ne $45 hand-tailored pure worsted imported and domestic fabrics . . . dis- patierns and colors sizes . . o @ rare op- portunity. Only One to a Buyer SAVE $7.25 ‘In the light of that experience we | to tear down the judiciary of the United States. There never was a dike so strong but that a crawfish could not dig in and undermine it. “The so-called New Deal,” he said, “is the same old deal handed out by Louis XIV. It is the old deal of gov- ernment controlling human beings. Given a constitution and a people can- not be enslaved so long as incorrupt- able courts are open for redress.” Publisher Gannett said “dictators always take the shortest cut.” He denied the Supreme Court stood in the path of progress and accused the ad- ministration of endeavoring to conceal “mistakes” by blaming the court as | the cause. 'FOREIGN STUDENTS COMING TO A. U. Brazil, Mexico, Czechoslovakia and Nicaragua First to Be Represented. In a new move to foster improved international relations, Brazil, Mex- ico, Czechoslovakia and Nicaragua will be the first four countries represented by young government administrators as students at the Hall of Nations of American University, it was an- | nounced today by Henry L. Stimson, former Secretary of Sta who is of the Hall of Nations. Stimson, who attended the ball of nations held at ‘he Mayflower Hotel Jast night to raise funds to help bring foreign students to Washington, ex= plained first the Brazilian co-opera- tion. “Through the co-operation of Os- waldo Aranha, the distinguished Am- bassador from Brazil,” Stimson said, | “we are glad to annovice that there will come to Washington next Fall a selected group of five of the younger members in the Brazilian government service to study in the School of Pub- | lic Affairs of American University.” Czechoslovakia and Nicaragua were selected by lot to send students from proceeds of last nigh's ball. Mrs. J. Borden Harriman, chairman of the Ball Committee, presided at the draw- ing. Finland and Colombia were | drawn as alternates. ‘The Hall of Nations is a unit of the | graduate school of smerican Univer- | sity. A bequest has been receivéd for | the hall and a building will be con- structed as soon as additional funds have been raised, Stimson said. '5 DIPLOMATS WAIT APPROVAL OF SHIFT Senate Confirmation Expected To- day—Steinhardt Gets Post in Peru. Senate confirmation of the shift of an Ambassador and four Ministers from present posts was expected to- | day. The men affected are Laurence A. Steinhardt of New York, Minister to Sweden, to be Am- | bassador to Peru. H. F. Arthur Schoenfeld of the Dis- | trict, nominated Minister to Finland. | He is now Minister to the Dominican Republic R. Henry Norweb of Ohio, Minister | to Bolivia, to be Minister to the Do- minican Republic. Fred Morris Dearing of Missouri, Ambassador to Peru to be Minister to Sweden. Edward Albright of Tennessee, Min- ister to Finland, to be Minister to Costa Rica, succeeding Leo Stack, resigned. FINANCIER DIES ASHEVILLE, N. C,, March Thomas D. Rhodes, 80, retired rail- | road official and financier of Cihgin- | nati, died yesterday at the home" of a son. He was a director of the Cincinnati, Portsmouth and Virginia and the Cin- cinnati Belt Line Railroads and once | had served as receiver of the Detroit, | Toledo and Ironton Railroad. In 1905 he moved to New York to take ). — of wage earners in joint conferences | Senator from Missouri, and Frank E.|cnarge of the New York, Westchester and Boston Railroad. |Don't be miserable with EXCESSIVE ACID . . . digestive upsets . . . aches .. . | pains . . . stomach distress. Why be sick? . . . Eliminate the exces- | sive uric acid acccumulations which may bring really serious trouble. Mountain Valley Mineral Water | from Hot Springs, Ark., helps ity . . . alkaline .. . pleasant tasting and helps the kidneys, too. Don’t be sick. Phone MEt. 1062, today, for a booklet or write Mountain Valley Water Co., 1405 K St. NW. D.J. KAUFMAN, Inc. 1005 Pa. Ave. 14th and Eye Sts. 1744 Pa. Ave. PARKING at All 3 Stores chairman of the Advisory Col .mittee | D. C, TUESDAY, MARCH 30, 1937. COURT REVERSALS FEW IN BIG CASES Records Show Only Several Changes Made in Major Decisions. B3 the Associated Press. A search of records disclosed today that the Supreme Court has reversed itself only a few times on important decisions. Its action yesterday in overruling previous opinions and upholding the right of a State to fix minimum wages for women was one of the major re- versals. By & 5-to-4 decision it sustained a Washington State statute after vot- ing 5 to 4 against a similar New York State law last June and 5§ to 3 against & District of Columbia statute 14 years ago. Justice Roberts voted against the New York act and for the Washington State measure, Other Reversals. Reversals on less important litiga- tion have been more frequent. On last March 15 the court dis- | approved previous rulings to hold that | the Federal Government could not tax | the salary of William Whitlock Brush, | former chief engineer of the New York | Bureau of Water Supply, on the ground that he was engaged in a Gov- ernment function Perhaps the most famous case that was reversed involved validity of the legal tender act passed to provide money for conducting the Civil War. By a 4-to-3 vote, the court in 1870 held the legislation partially uncon- stitutional. That same day President Grant sent to the Senate nominations to fill two vacancies. Soon after the new justices were confirmed, the court ordered a new argument and the law was upheld, 5 to 4. The new justices had joined with the previous dissenters to form & majority. President Grant was charged by many persons with “packing” the court to obtain a favorable decision. He de- nied, however, that he had known of the ruling when he submitted the nom- inations. Another celebrated decision, result- ing from a justice changing his vote, held the entire income tax law invalid in 1895, after only a portion of the act had been declared unconstitutional. The first decision was by a 4-to-4 vote, owing to the illness of Justice Jackson. The court soon reconsid- ered and with Justice Jackson voting for the legislation, held it unconstitu- tional by a 5-to-4 vote. Identity of Justice Mystery. That showed one of the justices who originally had voted for the legis- lation had reversed his decision. His identity never was established. Severe criticism followed and re- sulted in adoption of the sixteenth amendment to the Constitution au- thorizing a Federal income tax. The most recent case of wide in- terest which was reconsidered—but which did not constitute a reversal— involved Charlotte Anita Whitney, convicted of violating the California criminal syndicalism law by assisting in 1919 in organizing the Communist Labor party in that State. The high tribunal dismissed the case on October 19, 1925, for want of jurisdiction. It then granted a re- | hearing, heard the dispute reargued, and on May 16, 1927, sustained her conviction. SWALLOWS TEETH Physicians Find Plate When Man Complains of Pains. URBANA, Ohio, March 30 (#).— Miles Goodwin of Kansas City was mystified by disappearance of his false teeth, but located them when he be- gan to have stomach ache. A phy- sician said Goodwin swallowed the plates while asleep, and recom- mended today an operation for their removal. 3 VIRGINIA FIRMS | nearly 3,000 workers. | West Virginia Pulp & Paper Co. plant | 10 BOOST WAGES Increases Announced for Pulp P2per, Oil and Tex- tile Workers. BY the Associated Press. RICHMOND, March 30.—Three | additional Virginia industries pre- | pared today to increase the pay of | Fifteen hundred employes of the | at Covington will receive hourly in- creases of 5 cents on April 16, the management announced yesterday, with time and a third for all work be- tween 7 a.m. Sunday and the same hour Monday. H. W. Ellerson, president of the Albemarle Paper Manufacturing Co., | said approximately 1,000 employes of three plants would receive a 10 per cent increase April 1. One of the three plants is located in Richmond and two at West Point. The latter two are operated by affili- | ates of the Richmond company, the | Albemarle Chesapeake Co. and the Chesapeake Corp. The Virginia sales division of the Standard Oil Co. of New Jersey an- nounced “a substantial pay increase” for 430 clerical and other salaried em- OLD GOLD ANIP SILVER wa‘ bring you TEASH AT, han, manager, sald other office and salaried workers not sharing in this advance would be considered individ- ually. Approximately 750 employes of the Consolidated Textile Corp. at Lynch- burg received notice yesterday of an upward pay revision, along with sim- ilar increases for workers in plants at Burlingtor and Shelby, N. C, INDIAN FIGHTER DIES HAVERHILL, Mass, March 30 (#).—Alvah C. Frink, 82, cited for bravery against the Sioux and Chey- ennes during Indian wars in the old West, died here yesterday. Frink enlisted in the Army in 1878 and served five yea: He was cred- ited with having saved the life of Lieut. Gen. Nelson A. Miles during an engagement in Montana. He returned to Haverhill in 1898 and was employed by a construction company for many years. 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