Evening Star Newspaper, April 20, 1937, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair and somewhat colder, lowest tem- perature about 45 degrees tonight; tomor- row mostly cloudy followed by showers at night; moderate winds, mostly northeast. Temperatures—Highest, 73, at 3 p.m. yes- terday, lowest, 52, at 6:30 a.m, today. - The only evening paper in Washington with the Associated Press News and Wirephoto Services. Closing New York Markets, Page 18 85th YEAR. No. P 33,957. Enceréd as second class matter post office, Washington, D. O. RESIDENT’S MESSAGE ASKS U. S. SPENDING CUT, TIGHTER RELIEF PURSE k2 | 1,500 Million Is New Deal A gain Considering Crop Production Control Set as ’38 Aid Fund Limit. HINT OF LATER TAXRISE GIVEN Boost Due Now if Outlay Increases, Capitol Told. BACKGROUND— Free-spending habits and disap- Ppointing revenue from tares have caused deep concern to Government Mnanciers as unemployment relief burden loomed in background. For weeks, President Roosevelt has discussed problem with leaders in financing, relief and legislation. Predicting in budget message last Winter that long-awaited balancing would be possibility for 1938, Presi- dent is now erpected to revise esti- mates. Strong influence in relief picture {8 organized pressure from State and local authorities. Text of President’s message on Page A-8. BY G. GOULD LINCOLN. President Roosevelt today sent to Congress a strong message urging economy in Government expenditures 50 there may be & balance of “actual | the so-called “dust bowl” area, the ‘ House Group Favors | 927 Million for Depart- ment for Next Year. B: the Assoclated Press. The administration again is con- sidering “definite and positive produc- tion control” as part of a broad farm program. Secretary Wallace and H. R. Tolley, agricultural adjustment administra- tor, made that disclosure to a House subcommittee in hearings on the Ag- riculture Department appropriation bill, submitted today to the House. The House committee recommended that Congress supply $927,398,548 to the Agriculture Department for the next fiscal year Of the total, $620,000,000 was tagged for the Agricultural Adjustment Ad- ministration. The committee chopped $5,078,407 from the amount, asked by the Bud- get Bureau, but the department still would receive $143,402,149 more than | its appropriation for the present year. | “Dust Bowl” Emergency. To meet the “present emergency” in committee stipulated that up to $5,- 000,000 should be made available im- mediately from funds previously ap- ch WITH SUNDAY MORNING. EDITION ¢ Foening Star WASHINGTON, D. C, TUESDAY, APRIL 20, 1937—THIRTY-EIGHT PAGES. propriated for soil conservation work. The bill would provide 822,225,000“ for the demonstration projects and | other activities of the Soil Conserva- | tion Service during the coming-fiscal | year, which begins July 1. This was | $628,485 less than the appropriations | income and outgo for the fiscal year 1938." “I appeal to you,” he said to Con- gress, “to join me in a determined ef- fort to bring about that result.” The President frankly stated that his budget estimates for the fiscal years 1937 and 1938 had been thrown out of kilter by a failure of tax re- ceipts to reach the totals expected. His recommendation to Congress for work relief appropriations for the fiscal year 1938 was held at $1,500,- 000,000—the amount which had been forecast. The President, hcwever,] plans the most rigid economy in Gov- ernment expenditures and actual re- ductions in the amounts appropriated or estimated for various Government agencies during the remainder of the present fiscal year and during the fiscal year 1938, which begins July 1. Byrnes Seeks Deep Cut. No sooner had the Presisdent’s | message been read in the Senate than | a proposal was advanced by Senator | Byrnes of South Carolina, Democrat, | and frequently an administration | spokesman, that relief funds be cut to $1,000,000,000. “It is my purpose,” said Byrnes, “to urge that not more than $1,00 000,000 be appropriated.” | His proposal was advanced after Benator McNary of Oregon, Repub- | lican leader, had pledged the co- operation of Republicans in any ad-; ministration effort to keep down Government expenditures. “I would like to know,” added Sen- | ator Byrnes, “if the Senator from Oregon will go along with that” (the reduction of the relief appropriation to a billion dollars). McNary replied that the message | had just been read and he had had no chance to study it. He expressed the opinion, however, that the coun- try could get along with a billion- dollar relief appropriation. McNary Pledges Aid. The debate was started by Senator | Robinson of Arkansas, Democratic | leader, as soon as the reading of the message had been concluded. He said | it was desirable and “almost impera- tive” that Government expenditures | be held down. “Some think that this relief ap- propriation could be diminished,” said Robinson, “while others, includ- ing some Governors and Mayors, think it should be higher. The time has come when persons inside and outside the Government should do all they can to improve the Govern- ment credit.” Senator McNary commended the message, saying he believed he could speak for all Republicans in pledging aid in cutting Federal expenditures. (See RELIEF, Page A-8.) Inspectors Seek Sender of Threat OnSenator’sLife Postal Heads Tracing Letter Swearing to Kill Truman. By the Associated Press. Post Office inspectors sought today to trace authorship of a threatening letter received by Senator Truman, Democrat, of Missouri. - Edgar C. Faris, assistant secretary to the Senator, said he took the letter to Justice Depaitment officials, who referred him to Post Office inspectors. The letter, postmarked Independence, Mo. (Truman's home town), April 17, was addressed to “Dear rat and other rats like you.” “I will be in the Nation’s Capital April 22 and when I leave, Missouri Wwill need a new United States Sen- ator,” it said. “I will get you if it costs me my life, sometime between 12 noon and 11:59 p.m. Thursday.” Faris said Truman, who has been guarded by Kansas City police working in conjunction with Post Office in- spectors, was travellng east today ‘without a guard. Truman is scheduled to speak tonight at Larchmont, N. Y., | have required the Executive to em- | bargo goods consigned to a belligerent for this purpose in the current fiscal | year. ; A total of $470,000,000 was recom- | mended for ‘“conservation and use of agricultural land resources.” Funds for the Bureau of Public Roads were increased $110,500,000 over those of the present year, to $178,500,000. The increase included two new items—8$10,000,000 for elimi- " (See AGRICULTURE, Page A-2) | H.R. TOLLEY. | NEUTRALITY BLL AGREEMENT NEAR Senate Conferees Recede on Mandatory “Cash-and- Carry” Provision. By the Associated Press. Senator Borah, Republican, of Idaho announced today that Senate conferees had receded on the man- | datory “cash and carry” provision in | the proposed permanent neutrality bill, leaving application of the plan to the discretion of the President. The Senate neutrality bill would nation, unless title to the goods had been transferred to the belligerent and the goods were to be shipped in the belligerent’s vessel. The House measure, which Borah said the conferees had agreed to ac- cept, would permit American ships to carry American goods unless the President should proclaim otherwise. Borah made the announcement after leaving a session of the confer- ence committee, which he said had agreed on all major differences be- tween the two houses. Majority Leader Robinson, Democrat, of Ar- kansas said only minor differences remain to be composed. Other major differences were set- tled when the House conferees ac- cepted Senate amendments making mandatory a, prohibition against American travel on belligerent ships in time of war and prohibiting Amer- ican ships from bearing arms while transporting goods to belligerents. . The neutrality bill would permit the President to list contraband ma- terials which could not be carried to belligerents by American ships and would permit him to embargo arms, ammunition and implements of war in event of hostilities. & 9 GUNMEN SENTENCED Convicted of Attempt to Assassin- ate Chinese Officials. NANKING, April 20 (#).—Nine Chi. nese gunmen, convicted of attempting to assassinate three government lead- ers in 1935, were sentenced to prison or death today by the Nanking Metro- politan Court. Three were sentenced to die for assassination attempts against Dr. T, V. Soong, former finance minister; Premier Chiang Kai-shek and Wang Ching-Wei, who was premier at that time. Six accomplices received prison terms of from 5 to 12 years. Three others were exonersted. Those convicted filed sppeals. By the Associated Press. NEW YORK, April 20.—The people who make Popeye the Sailor Man's muscles ripple and Betty Boop’s eyes roll with her notes in the movies want more “spinach” for their work and no boop-boop-a-doop about it. That was the decision reached at a meeting of more than 100 employes of the Max Fleischer Studios last night when they voted to appeal to the on national defense. National Labor Relations Board for an election to force Fleischer to rec- Popeye and Betty Boop Film Makers Want More “Spinach” HITLER MAY FAVR END OF ARMS RACE Der -Fuehrer Is Declared Satisfied With Own Military Power. Br the Assoctated Press. | BERLIN, April 20.—Chancellor Adolf | Hitler, hailed on his 48th birthday anniversary by the massed might of the German Army he recreated, was believed today to be ready to join in calling a halt to the crushing world Trearmament race. Foreign observers considered the German Army finally had reached a strength satisfactory to Der Fuehrer, as demonstrated today by the greatest military review ever staged in the German - capital. They drew their conclusions from two things: Hitler's statement yesterday that “Germany would be very willing to partake of a united effort to establish mutual understanding between the na- tions of the world” through a confer- ence called by President Roosevelt or the head of some other world power. The declaration of Dr. Hjalmar Schacht, economics minister, in Mun- ich that “Rearmament forced the gov- ernment to withdraw certain raw products from consumption. but raw material restriction has now passed its highest peak.” ‘Together, these things were taken to mean Der Fuehrer's earlier plans for his army have now been completed (See HITLER, Page A-12.) FARMER A SUICIDE AFTER KILLING PAIR West Virginian Blamed Victims for Estrangement From His Wife Two Weeks Ago. By the Associated Press. UNION, W. Va., April 20—State po- lice said today Haven Little, 53-year- old Zenith farmer, killed himself after he had slain Fred McMahan, his broth- er-in-law, and Mrs. Gilbert McMahan. Trooper C. E. Thompeon said Little, father of seven, seriously wounded Gilbert McMahan, 32, another brother- in-law, and shot Gilbert's mother, Mrs. Lulu McMahan, 60, in the hand and leg. ‘The officer said neighbors told him Little blamed the McMahans for his estrangement from his wife two weeks 280. ognize the Commercial Artists’ and Designers’ Union as collective bargain- ing agency. James Hulley and Arthur Post, pres- ident and organizer, respectively, of the union, said they would take the appeal to Mrs. Elinore M.. Herrick, regional director of the board. Post said two conferences with Flei- scher had failed to bring a satisfactory answer to the union demands for a 35- hour week and & 13 per cent general wage increase for BRITISH T0 BOOST INCOME TAX 2% 10237 FOR ARMS One Dollar of Every Four Made by Earners to Go for Guns. GASPS OF AMAZEMENT ARE HEARD IN COMMONS Jammed Aisles Hear Chamberlain Report Present Levies Do Not Produce Enough. By the Associated Press. LONDON, April 20.—Chancellor of the Exchequer Neville Chamberlain told a tense House of Commons today that British income taxes will be in- creased 2.5 per cent to 25 per cent to pay the nation’s rearmament bills. Gasps of astonishment greeted the chancellor’s declaration, made as he read his sixth budget message before a parliamentary assembly packed to the roof. The specific increase, he said, Is three pence a pound. which brings the rate to five shillings a pound—or one dollar to very four earned by British taxpayers. The tax will produce an expected £275,000,000 sterling (approximately $1,375,000,000), Chamberlain said. Britain's armament bill eventually will be $7,500,000,000. Great Crowd Hears Speech, The chancellor, carrying the little red dispatch box which fiscal experts have used since Gladstone’s time, mounted the speaker’s stand before &n audience of members, diplomats and distinguished visitors. Commons aisles were jammed. Many members were forced from their regular benches into the gal- leries by the crush. Chamberlain’s audience included three former chancellors of the Brit- ish exchequer—David Lloyd George, Winston Churchill and Sir Robert Horne. He began to speak shortly be- fore 4 pm. “This year and several ture for defense,” he said. The chancellor followed his usual custom of reviewing the nation's finances for the last year before launching into proposals for the fu- ture. He announced officially that the 1936-1937 deficit was 5,597,000 pounds sterling ($27,985,000). “If it had not been for the big ex- penditure for ' military services, the nation’s balance sheet would have shown a $1,000,000 surplus” Cham- berlain told the House. “This would have been after debt redemption of $65,000,000." The chancellor disclosed that in- come tax revenue fell nearly $9,000,- 000 short of that expected and that, likewise, income surtax proceeds were less than had been hoped. He cited an increase in British post (See BRITAIN, Page A-2) FASTS 42 DAYS STOOPING OAK, Tenn. April 20 (#).—Lean Jackson Whitlow, 45-year- old mountaineer, today entered the forty-second day of what he calls a fast “at a call from the Lord.” He insists he will not break the fast until he “hears from the Lord.” He has lost 29 pounds. years to come our national finances must con- | tinue to be dominated by one over- | | shadowing feature—the vast expendi- | UNITED*STATES 787 WE 14 E OF The U:IT]FE%PXLE 'N ORDER Yo Fumqu‘"s] MORL PERFECT UNiop, [STQ.BLISM \JUZ:YRE 3 L T 1Y “.ow, 5 oG LABOR PEACE PLAN SOUGHT AT PARLEY Miss Perkins Makes Per- | sonal Plea to Business and Union Leaders. BACKGROUND— Validation of the labor relations act last Monday by the Supreme Court was followed almost im- mediately by a call of Secretary of Labor Perkins for an industry-labor conference to establish guiding principles in the preliminary stages | of collective bargaining. | With Wagner law not applicable to intrastate commerce, State legis- lation has been suggested; Wiscon- sin and Utah already have State labor relations laws. | BY the Assoctatea Press. | Secretary Perkins made a personal | | appeal to leaders of capital and labor | today to get together on a national | policy aimed at reducing the number | of strikes and lockouts. She asked 27 representatives of unions and industry to draft their own program, in the light of the Supreme Court decisions upholding constitu- tionality of the Wagner labor relations act. “It is to be hoped that out of this | conference and other similar ones in | the future,” the Secretary said, “that !labor and management, can work out | procedures and safeguards that can | be mutually agreed upon in the inter- est of stabilizing labor relations.” Asserting many employers and work- | ers had no experience in collective | bargaining, Miss Perkins said, “You who are here today can suggest a | plan, perhaps, which will serve to lessen the tension and minimize stop- pages of work through misunderstand- ing by one or the other group.” Miss Perkins explained that the con- ferences were not summoned to take up any legislative program or mat- ters of wages, hours or working con- ditions. She said she hoped they would be able to reach some informal agree- . Mine Explosion Probed. BELLINGHAM, Wash., April 20 (#). —An explosion 900 feet down in the Bellingham Coal Mine, which killed Frederick T. Lancaster, 35, fire boss, yesterday just as 140 miners were en- | tering the shaft to go to work, was investigated today by mine officials and J. E. Bergin, chief State mine in- spector. Summary of Page | Amusements B-18 Com#cs ___._B-13 Editorials ___A-10 Financial -__A-17 Lost & Found A-3 Obituary _. A-12 STRIKE SITUATION. Secretary Perkins urges capital and labor to get together. Page A-1 FOREIGN. Hitler believed in favor of ending re- armament race. Page A-1 Nations enforce Spanish blockade to- day. Page A-9 NATIONAL. Farm production control plan is be- ing studied. Page A-1 Court bill menace to education, college head charges. Page A-1 Roosevelt urges economy in message on relief. Page A-1 Colored U. M. W. miner beaten in Har- lan, committee hears. Page A-2 Kidnaper repents, releases boy, 5, on West Coast. Page A-2 Clark Gable testifies in denial of paternity charge. Page A-2 Gen. Denhardt called to trial in mur- der of flancee. Page A-3 D. A. R. delegates hear report of president general. Page A-4 Critics of F. B. L answered in G-man slaying. Page A-6 Barkley urges support for Wagner labor act. Page A-7 F. B. 1. seeks impersonators of Brien McMahon. Page A-20 WASHINGTON AND VICINITY. Hazen opposes taxes over actual budget needs. Page A-1 Virginia deputy arrested for fatal shooting of prisoner. Page A-8 Naval Academy announces program for Board of Visitors. Page A-20 Rev. H. F. Butt appointed West Point chaplain. Page B-1 Defense testimony to begin in Rhodes trial. Page B-1 Ten new directors are named by Board of Trade. q Page B-1 Short Story . B-8 Sports .. A-13 Woman's Pg. B-12 £ sty (See PERKINS, Page A-12.) Lisbon Feels Earthquake. LISBON, Portugal, April 20 (#).—A | slight earthquake here early today sent Lisbon residents scurrying into the streets in panic. No casualties or damage were reported. The shock oc- curred at 12:25 a.m. (7:25 p.m. Eastern standard time Monday). Today’s Star 900 cherry trees being planted in East Potomac Park. Page B-1 Dr. Stokes asks $150,000 be sought for “‘employables.” Page B-1 Senate takes up four-department sup- ply bill Page B-1 EDITORIAL AND COMMENT. Editorials. Page A-10 This and That. Page A-10 Answers to Questions. Page A-10 Political Mill. Page A-10 Stars, Men and Atoms. Page A-10 David Lawrence. Page A-11 Paul Mallon. Page A-11 Mark Sullivan. Page A-11 Jay PFranklin. Page A-11 Delia Pynchon. Page A-11 SPORTS. Sub-par punch mars Nationals’ season opener. Page A-13 Major campaigns get in full swing today. Page A-13 ‘Walter Young, “unknown,” wins Bos- ton marathon Page A-13 Big league season due to hit attend- ance mark. Page A-14 Young Bobby Dunkleberger looms as “another Jones.” Page A-15 Marty Gallagher held to draw by young McDonald. Page A-15 City pin tourney starts with' 2,000 entrants. Page A-16 FINANCIAL. Rail bonds improve (table). Page A-17 Banks sell U. 8. bonds. Page A-17 Stocks move up (tab®). Page A-18 Curb list mixed (table). Page A-19 Cotton mills set faster pace. Page A-19 Corporate profits jump. Page A-19 MISCELLANY. ‘Washington Wayside. Service Orders. Traffic Convictions. City News in Brief. Bedtime Story. Betsy Caswell. Dorothy Dix. Crossword Puzzle. Page A-2 Page A-6 Page A-6 Page A-18 Page B-9 Page B-12 Page B-12 Page B-13 Nature’s Children: Letter Out. PageB-14 PageB-14 AFTER ONE HUNDRED AND FIFTY YEARS IT LOOKS BETTER THAN EVER?, Fake Slaying Story Solves Real Murder | | Two Youths Confess Shooting Man in Hold-Up. By the Assoctated Press CHICAGO, April 20.—A story of a fake slaying told to two teen-aged | robbery suspects was credited by de- | tectives today with solving a real one. | The youths, John Mikosz, 18, and | Walter Pekovitch, 18, detectives said, | confessed shooting George Kussan, 21, | in an attempted hold-up. “I don't suppose you know that | | Kussan died,” faked Detective John d Hanrahan. The suspects blanched. Then fol- lowed the reputed confessions to a series of robberies. including that of | Edward Nieweroski, 40, who was shot | while resisting. | They didn’t know, the officers said, that Nieweroski died several hours | after the shooting April 6. COURT BILL HELD EDUCATION BLOW College Head Says Party | Must Not Be Allowed to Reign Supreme. BACKGROUND— Hoping to secure decisions more favorable to his legislative program, President Roosevelt dropped his Supreme Court enlargement plan on a startled Congress February 5. In substance, he sought authority to name siz new justices unless those over 70 retired. Opposition was strong from the outset and was bolstered by liberal decisions of the court in Washing- ton minimum wage and Wagner cases. President, however, rejected compromise suggesgions, insisting court bill be passed in its original form. BY JOHN H. CLINE. President Roosevelt's Supreme Court plan today was interpreted as a menace to education by Wiliam A. Eddy, president of Hobart and William Smith Colleges. Dr. Eddy appeared before the Sen- ate Judiciary Committee following an assertion by Attorney General Cum- mings in a radio address last night that labor’s victory in recent Supreme Court decisions is in danger of being whittled away under the present court set-up. Dr. Eddy, who spent 16 months in 8 hospital after being wounded while (See COURT, Page A-6.) BATH INJURIES UPHELD Slip on Cake of Soap Declared Compensatory. DETROIT, April 20 (#).—A bath “on the road,” Circuit Judge Ira W. Jayne insisted today, is part of a traveling salesman’s work and, there- fore, compensatory. Judge Jayne, as administrator for the estate of Harry C. Wakeman of Pontiac, Mich,, said he would appeal from a Cleveland judge’s decision re- fusing compensation for Wakeman’s fatal injuries when bathing. Wakeman, the suit claimed, slipped on a cake of soap in a bathtub in a Cleveland hotel in 1934. News of Yesterday’s Circulation, 144,648 (Bcme returns not yet raceived.) a5 2k e FORTY SIXTH ANNUAL CONTINENTAL CONGRESS F THE DalGATERS F TwE AMERICAN REVOLUTION P/ D.A.RHEAD HAILS CONSTITUTIONRITE Urges Active Celebration of Sesquicentennial of Signing. Active celebration of the sesqui- centennial of the signing of the United States Constitution, framed in 1787, was urged today upon all mem- bers of the National Society of the Daughters of the American Revolu- tion by its president general, Mrs. William Becker. ay of trial” Mrs. Becker told the Forty-sixth Continental Congress of the society in Constitution Hall as she read her annual report to the dele- gates. The celebration opens Sep- tember 17. “History is being written today as in the past and today is our opportunity,” she added. without defining her mean- ing of the word “trial” “A new year is ours and may its pages ring with service and with truth.” ‘The president general's report was the high light of the second-day pro- gram of the Congress, which opened last night in a stirring setting of pageantry, with martial music and a colorful program whose watchword was patriotism and whose special in- terest was “Youth.” Cites Order’s Purposes. “On the threshold of a new year, we pause to take account of the progress made in the year that is gone,” Mrs. Becker said in beginning ‘her message to the members of the society she had headed for two years. “Well may be compare our accom- | plishments with the purpose for which we exist. ‘To preserve’ and ‘to edu- cate’ are the measuring rods. and to these two standards all our activities relate.” Since last year's Congress Mrs. Becker has visited 30 State con- ferences or State meetings and “strengthened the bond between the national and State -ocieties,” she said. She also represented the D. A. R. national society at the annual con- gress of the Sons of the American Revolution, at the fiftieth anniversary of the unveiling of the Statue of Lib- erty and on the Women’s Participat- ing Committee of the 1939 New York World’s Fair, which is to mark the 150th anniversary of George Wash- ington’s becoming President. Bring the young into the society, Mrs. Becker urged. She said: “Your president general urges the formation of junior groups within your chapters and that whenever possible they be organized on the college campus. Give the younger woman a definite part in the chapter'’s work that they may find expression for their own initiative. “The importance of the credtion of student groups was impressed n your president general through don- tact with Oregon's two college chap- ters. As co-hostesses of the State can- ference, these young women were al- together inspiring.” The society’s financial position is healthy, Mrs. Becker sald. An unexpected, vigorous attack from MessmoresKendall, president of the Sons of the American Revolution, on the Roosevelt court plan brought loud applause from the women who | packed the hall for the opening cere- monies. “The drafting of six unneeded mem- bers of the Supreme Court won’t make us walk better and may instead cause us to lose our balance,” Kendall said, during .his elaborate rhetorical dis- cussion of the “health” of the society (See D. A. R, Page A-4) D. A. R. Full reports of the D. A. R. Convention, April 18 to 25, inclusive— Mail—Postage Prepaid U. S., Mexico and Leave orders with Star representative at Constitu- tion Hall or The Evening Star office, 11th St. and Pa. Ave. N.W. (P) Means Associated Press. “Preserve our America in this its TWO CENTS. LEGISLATORS SEEK CURB ON EVASION OF DISTRICT TAXES House Subcommittee Gives Indications of Action to Stop Practice. ACCOUNTS’ TRANSFERS NEAR JULY 1 DETAILED City Officials Admit Thousands Are Lost Annually by Inability to Enforce Law. BACKGROUND— District appropriation bill for 1938 as passed House with $5,000,- 000 lump sum Federal payment in- dicated revenue shortage of $6,- 000,000 in coming fiscal year. Chairman Collins of House Sub- committee on District Appropria- tions introduced taxr bills to raise revenue to offset deficit. District Legislative Committee on House appointed special subcommittee to study these bills as well as means of effecting efficiencies and eco- nomics in municipal government through reorganization. (Pictures on Page B-1.) BY JAMES E. CHINN. Surprised by admissions from Dis- | trict officials that thousands of dol- lars in revenue are lost every year in tax evasions, a special subcommittee of the House District Committee gave indications today it would recommend legislation to curb the practice. The admissions were made by Com- | missioner Melvin C. Hazen and Tax | Assessor Fred D. Allen, first of a | group of witnesses called before the Subcommittee in its dual study of the | Collins tax bills and the proposed re- organization of the municipal govern- | ment in the interest of effictency and | economy. Allen revealed that evasion of the tax on intangible personal property |1s widespread because the District “just can't get at it." He also point- |ed out that under existing law it is possible for persons and corporations | to transfer bank deposits to another Jurisdiction June 30, the day before | the annual assassment is levied on | personal property, return them July |2 and thus escape the tax Big Discrepancy Shown. Bank deposits on the call date last year, Allen explained, showed $270,- 000,000 on deposit, but the personal property tax returns indicated there wes only $6,000,000 of that amount on deposit July 1. “We have no way of knowing,” he | declared, “whether the money is taken out or whether people fail to report it.” The second hearing of the subcom- mittee will be held Thursday at 10 a.m. The committee room today was jammed with District officials, busi- | ness men and civic leaders as the hearing opened, and radio micro= phones picked up the proceedings for | broadcasting over WMAL. Commissioner Hazen, as well as | Allen, was subjected to a barrage |of questions about the District tax | system and its weaknesses. Particular stress was placed on alleged widespread evasion of the intangible personal property tax. Hazen Opposes Tax Program. Commissioner Hazen, called as the first witness, immediately registered | opposition to adoption of a tax pro- | gram that would raise more than the | $6,000,000 needed to meet the ex- pected deficit. “The Commissioners realize that | $6,000,000 will have to be raised.” he | declared. *“We are not entirely in | sympathy with all the tax bills that have been introduced. We don't see | any necessity of raising more than | that amount. We don't see any neces= | sity of taxing the peonle an addi- | tional $6,000,000 when we don't need it | “Hazen said the Commissioners were prepared to submit a complete tax program, which would include bills they believe should be adopted. Interrogation of Hazen was sud- [denly interrupted and Tax Assessor Allen called to the witness stand. Immediately Representative Dirksen, Republican, of Illinois asked him if property assessments in the District is made at the fair value. Assessments Made Yearly. “What we are trying to do,” he an- swered, “is to assess land value at a fair sale price and buildings at cost of construction, using reproduction cost now. New assessments are made on all properties every year and on new | buildings twice a year.” Dirksen next questioned Allen about fluctua- tion in assessments. He explained | that the assessments totaled $1,226.- 000,000 in 1932 and $1,144,000,000 in 1937. The peak was reached in 1933, he testified, when the assessments totaled $1,229,000,000. Asked about the amount of uncol- lected real estate taxes, Allen said there is only $65000 outstanding, which represents less than one-half of 1 per cent of the total collections. Questioning of Allen veered to the intangible personal property tax, which one of the Collins bills pro- (See TAXES, Page A-2) CAPT. WKEE NAMED NAVY ATHLETIC HEAD BY the Associated Press. ANNAPOLIS, Md., April 20.—Naval | Academy authorities today announced the selection of Capt. E. W. McKee, Academy graduate of 1908 and famous Navy crew man, as director of athletics at the Academy. He succeeds Capt. Robert C. Giffen who goes on sea duty. Capt. Giffen, who has been stationed at the Academy for the past three years, will leave Annapolis August 15 for sea duty after two months leave. Capt. McKee now is in command of the Navy transport Chaumont. |