Evening Star Newspaper, May 9, 1937, Page 1

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WEATHER. (U. 8. Weather Bureau Forecast.) Fair and warmer today, showers tonight; tomorrow generally fair and cooler; gen- tle to moderate southerly winds, shifting to northwest. Temperatures — Highest, 64, at 5 p.m. yesterday; lowest, 53, at § Full Associated Press News and Wirephotos Sunday Morning and a.m. yesterday, Full report on Page B-2, {(#) Means Associated Press. No. 1,677—No. 33,976. Entered as second class matter post ofice, Washington, D. C. WASHINGTON, CORONATIONRITES 10 BE PREVIEWED BY LONDONTODAY Gay City Awaits Events Ex- pected to Rival Actual Ceremony. HOLIDAY THRONGS FILL RESTAURANTS Xing and Queen Leave City for Quiet Week End at Royal Windsor Lodge. By the Associated Press. LONDON, May 8 —London, splendid with the blue, the red, the white and the silver of bunting and flags and bulging with the regal and commoner visitors of an expectant world, plunged tonight into breathless celebration for the coronation of & king. Tomorrow comes “little coronation day"—and with it a spectacle, even to the immense crowds and a preview of the coronation procession that will rival in its way the fanfare of next Wednesday—the real coronation day of George VI and his Scottish Queen, Elizabeth. London, sparkling with gaiety to- night, will glow in splendor tomorrow night. The first real test of the flood- lighting of public buildings will il- luminate such landmarks as Bucking- ham Palace, Westminster Abbey and the Tower of London, silhouetting the city’s clustered roof tops as a back- drop for a blaze of blue-white light. Holiday crowds jammed restauranis and theaters tonight. Top-hatted men escorted women in silver fox evening | capes in the West End, while humblei throngs, many of them visitors from the provinces and abroad, came out to share vicariously in a celebration they could not afford. The King and Queen left town for a quiet week end at the Royal | Windsor Lodge, intending to rest for | the strenuous week ahead of them. ‘They will attend church services to- morrow, but have made no other engagements. Good Show Expected. Yet for Londoners generally the | week end promised no slack in the whirl of pre-coronation festivit; They looked ahead to a good sho for many of them the best they will get. The final rehearsal of the corona- tion procession will be held in the early hours and hundreds of thousands of spectators are anticipated. The government grandstands—far beyond the reach of John Bull's poorer rela- tions next Wednesday—will be thrown “thruppence” (6 cents) a Coronation officials, aware of the | dress rehearsal’s significance to many of its witnesses, have paid special at- tention to the mounted units in order E to make it a good show. | Millions of other Londoners who | eannot hope to see the real coronation procession Wednesday are ready to put on a perade of their own tomorrow | through streets garlanded and deco- rated at the cost of tens of thousands | War Admiral Gallops Home In Second Best Derby Time : e War Admir gets a wreath after his victory in the Kentcky Derby yesterday as Jockey Charley Kurtsinger gets the plaudits of the crowd. —Copyright, A. P, Wirephoto. BY ALAN GOULD Associated Press Sports Editor. CHURCHILL DOWNS, VILLE, Ky., May 8—War Admiral, a chip off the old thoroughbred block, Tan one of the biggest of all Kentucky “Derby fields dizzy under balmy skies | this afternoon with the second fast- est triumph in the 63-vear history of America’s most colorful horse racing spectacle. The litlle brown son of Man O' War came home in front a-galloping, Jjust the way his daddy used to do, LOUIS- | after leading from the start to the finish. There never was muth, if any, | doubt about the outcome as War Ad- | miral beat Pompoon by two lengths and Reaping Reward by 10 lengths | before a near record crowd of 63,000 | Spectators who acclaimed a new 3-year-old equine king with an ear- splitting ovation. War Admiral, the favorite at ap- provimately 5 to 2, stepped the mile ! and a quarter under the guidance of Louisville’s own Charley Kurtsinger in " (Continued on Page B-6, Column 1) PIMLICO HORSES BURNEDTODEATH Fire Sweeps 44-Stall Stable. Number of Racers Lost Unknown. By the Associated Press. BALTIMORE, May 8 —Fire swept & 44-stall shed at the Pimlico track tonight, killing an undetermined number of horses and at one time threatening the grandstand at Mary- land’s foremost racing plant. Early estimates of the number of horses burned to death ranged as high as 14, but Matt L. Daiger, sec- retary of the Maryland Jockey Club, operators of the track, said he did not of dollars. | Even in the somber workers’ dis- | tricts in the east end, now gayly deco- | rated, there are now and will be tomorrow spirited celebrations by ' pageant-loving thousands. Special, enlarged details of police‘ received instructions for handling the | “little coronation” crowds. Stringent | precautions were ordered at ralway | terminals for the still-streaming in- | flux of foreign royalty, diplomatic celebrities and plain sightseers. Mounted police were assigned to Hyde Park and Kensington Gardens where—with complete military en- campments as an added attraction— the densest crowds were expected. Tonight, latticed streaks of light criss-crossed in the sky from the searchlights of home fleet vessels moored in the Thames. Ocean Liners Illuminated. ‘The river itself sparked with many colored gleams from illuminated ocean liners wedged in close ranks at anchor- River'police, buzzing hornets among the great black hulls, dashed up and down the river in speed boats assign- ing the visiting ships their places. A hundred thousand tons of ship- NEW WAGE SCALE OPENS COAL MINES Alabama “Holiday” Affecting More Than 20,000, Was Started March 31. 7 the Associated Press. BIRMINGHAM, Ala., May 8.—Ala- bama’s coal “holiday,” affecting more than 20,000 workers, ended today with agreement between union rep- resentatives and operstors on a new ‘wage acale. M. C. Hughes, conciliator for the Btate Department of Labor, an-| nounced the settlement after minor | differences were ‘ironed out” conference this afternoon. Mines have been shut down since the old wage contract expired March 31. Under the new contract, inside workers will be given 50 cents a day increase, making their basic pay $4.50 for & seven-hour day. The same ‘wage scale applies in commercial and “captive” mines. Most of the “cap- tive” operators had agreed to the ‘wage acale before commercial opera- tors and the union reached an agree- ment today. “Captive” mines are those whose, products are used in coke, iron and steel making. Hughes conducted negotiations ‘which have gone on intermittently since March 31, when the mines Closed. The wage increase will add spproxi- mately’ $2,000,000 annually to the pay roll of the Alabama mining area, bas- ing estimates on 200 working days for ‘each miner. L} at & v believe that many perished. Daiger said an accurate check could not be made until the surviving horses, some of burned, were herded togsther an counted. He said this might not be done until tomorrow morning. There were 35 horses in the shed when the fire broke out. Daiger said the owners and the number of horses they had in the shed were: J. W. Y, Martin, 17; C. P. Miles, 7; Dick Johnson, 8, and E. G Brennan, 3. Horses Driven Out. The horses were driven from the stalls as soon as possible after the fire was discovered. Great confusien followed as they charged out and were driven into the infleld. Martin's Triple Action, only Preak- ness candidate quartered here, was saved, as were his Dark Hope and | Miles’ Master Lad. Dark Hope ran| today in the Dixie Handicap, a race in which he holds the record jointly with ‘Gallant Knight. Dalger said there would be plenty | of room in other stables for the horses | coming here next week for the Preak- ness, which will be run next Saturday. ! Near Betting Booths. The stalls swept by the flames were located about 200 feet from the betting booths behind the grandstand. The roof of the shed was destroyed. The fire broke out shortly before 8 o'clock, about two hours after the day’s program had ended. Four quick alarms summoned fire- men to the track and they had the blaze under control half an hour after the fire broke out. Thousands of spectators were at- tracted by the blaze. —_— Troops Hunt Convict. WINDSOR, Vi, May 8 (#).—Na- tional Guardsmen were called out to hunt for Robert Cook, 23, of Enos- burg, who escaped today from Windsor State Prison after attacking and slightly injuring Warden James Mc- Dermoy. * them painfully | PROBERS INSPECT HINDENBURG HEAP ! Death Toll Reaches 35 With 31 in Hospitals for Injuries. By the Associatea Press. LAKEHURST, N. J., May 8.—Mem- ybers of a naval board of inquiry | prowled today through the junk heap that was once the dirigible Hinden- | burg. They sought an answer to the baMing question of why the German zeppelin burst into flames and crashed 1,000 feet from the end of its trans- | Atlantic voyage, bringing death to 34 | of those aboard and one member of the ground crew preparing to land it ; at the United States Navy Air Station here. The Hindenburg death total mount- | ed to 35 when two men, Capt. William | Speck of the crew and Erich Knocher, an importer, succumbed to injuries | early today. Thirty-one persons re- | mained in hospitals, two of them in | serious condition. | With Capt. Gordon W. Haines as | presiding officer, the three-man board | began this afternoon a “thorough investigation of all the circumstances | surrounding the disaster.” Named by { Capt. F. C. Martin of Philadelphia, j acting commandant of the fourth | naval district, on orders of the Navy Department, it was directed to “report its opinion as to the cause of the dis- | aster and the responsibility therefor.” To Parallel Commerce Probe. Capt. Haines said the inquiry would | parallel one ordered by Secretary of | Commerce Roper. Public hearings in | both will start at the air station Mon- day. A third inquest, to look into the death of Allen Hagaman, a civilian | ground crew member, was ordered by the station’s commanding officer, Comdr. Charles E. Rosendahl. Officers announced the reservation would be closed indefinitely. Regular | Army troops and Marines from other posts doubled the usual personnel of 400 to handle 24-hour-a-day patrol duty. The crumpled, blackened duralumin which once formed the framework of the great skyliner lay in full view of the administration building where the Naval Board convened. After arrang- ing procedure, the board made a pre- liminary inspection of the wreckage, climbing through the twisted mass of metal, pointing this way or that, con- versing quietly. With Capt. Haines, commandant of the Naval Ammunition Depot at Fort Mifftin, Pa,, on the board were Lieut. Comdr. Roland Mayer of the Naval Aircraft Faétory at Philadelphia and Lieut. Cémdr. Cornelius V. 8. Knox " (See HINDENBURG, Page A-8.) Two Women Lose Leg Each » In Baltimore Elevator Mishap By the Associated Press. BALTIMORE, May 8—Two young women were in serious’ condition to- night in Union Memorial Hospital as police investigated events leading to their injury in a hotel elevator acci- dent early today. As the police inquiry went on, sur- geons amputated a leg of each of the young women. They are Miss Mary Edith Meade, 21, of Ellicott City, and Mrs. Grace Clas, 27, of Catonsville. Leaving a dancing party,-the two were part of a group who entered an elevator on the thirteenth fioor of the hotel. At a lower floor, the elevator went out of control, its operator, Leroy Hobeck, 19, told police. Hobeck said he had previously pro- tested against overcrowding the ele- nm.mnlzmwdm.huf he managed to stop % st the eleventh fioor level. Hobeck said he then called out to the passengers to leave the elevator. There was a rush and he was forced out, he asserted. The elevator then began to rise, he said, and the two Fire rescue apparatus, ambulances and police rushed to the hotel as the young women screamed in agony. With crowbars firemen pried away part of the elevator and inclosing walls to free them. The rescue efforts, however, lasted more than an hour for the first victim and about two hours for the second. Miss Meade's right leg was ampu- uudmdmx,wmu,otm. Clas was taken off. WITH DAILY EVENING EDITION D. C, KING BILL PASSAGE T0BLOCK ABATTOR Will Back Views of Citizens at Hearing to Open Tues- day “Afternoon, SEAL READY TO SHOW MEASURE IS VALID Officials Uncertain on Pollution of Anacostia and Potomac, De- spite Plans Changes. BACKGROUND— Disclosure that foundation permit had deen issued by city for mew abattoir in East Washington last vear precipitated an immediate fght by civic leaders and high Government officials. Commis- sioners denied superstructure permit and were sued for $50,000 each. Abattoir plans were revised and Commissioners later issued building permit. Contest then was carried to Congress, Blocked by lack of adequate regu- lations to prevent erection and opera- tion of a slaughter house in the Dis- trict—as proposed by the Adolph Gobel Corp.—the District Commis- sioners on Tuesday will add their voices to those of scores of local citi- zens and Federal officials in urging enactment of the King bill, designed to protect the Federal city from estab- lishment of nuisance industries. Hearings on the King bill are sched- uled for 2 p.m, Tuesday before a special subcommittee of the Senate District Committee, of which Senator McCar- ran of Nevada is chairman. The Commissioners, it was learned yesterday, will be prepared to present a formal statement in behalf of the King bill as a measure necessary to protect orderly development of Wash- ington as the Capital City. They will be accompanied by Corporation Coun- sel Elwood H. Seal, who is prepared to show that the carefully drawn King measure is valid beyond question. Pollution Question Raised. Inquiry at the District Building yesterday revealed that although the plans for the slaughter house have been changed to conform with plumb- ing specifications and studied over and over again, there is still some un- certainty among officials regarding the amount of pollution of the Anacostia River that may be expected to result from operations of the slaughter house. | While there will be connections from | the slaughter house to the sanitary | sewage system, where refuse is pumped | to the disposal plant, drainage from the part of the space occupied by me; animals would be into a settlement | basin, which, in turn. would empty into Popes Run, a small stream which | flows into the Anacostia River not far away. Apparently no provision | has been made, however, for other than surface drainage of runways | leading from the nearby Union Stock- yards to the pens at the slaughtering house. The drainage from such area would apparently flow to Popes Run | and then to the river. | Questioned at the District Building yesterday, officials admitted that no | provisions have been made, as far as | they knew, for sewage connections | to take care of drainage of the run- | ways connecting the stock yards with | the slaughter house. As the District has spent about $4,000,000 on a sewage-disposal plant to eliminate some of the pollution from the Potomac River, it was sug- gested yesterday that the establish- ment of new sources of pollution of | the Anacostia River was fantastic, in- | deed. It was indicated that the whole B) b.0.P. AIDPLEDGED 10 CUT SPENDING Country Facing Inflation in Big Expenditures, Snell Says. BACKGROUND— Alarmed by falling tar receipts and apprehensive of an inflation- ary movement, President Roosevelt called on Congress and department heads last month for stringent economy in governmental expen- ditures. Result has been a House proposal for a 15 per cent dis- cretionary cut in appropriations, President to exercise the discretion, and a Senate movement for a flat 10 per cent cut in all appropiration bills ercept those covering fired charges. BY J. A. O'LEARY. ‘Warning that the country stands at the portals of inflation because of continuation of the Government's spending policy, Representative Snell of New York, House minority leader, last night pledged Republican co-ope- ration to the Democrats to check the trend through wise economy. At the same time, a member of the Republican Policy Committee of the House, Representative Halleck of In- diana, promised support “in obtaining sufficient money to aid the deserving needy,” but attacked the present sys- tem of administering work relief as | having “added greatly to the cost of relief without actually giving the as- sistance to the needy which the ex- penditures would otherwise permit.” The two Republican speakers gave their views in a joint radio broadcast, as a House Appropriations Subcom- mittee prepared to reach a decision this week on the President recom- mendation for a $1,500,000,000 relief fund for the coming fiscal year. Reaffirms Stand for Billion. Meanwhile, Senater NcNary of Oregon, Republican leader, reaffirmed his belief the relief problem can be met with $1,000,000,000, a view shared by some of the Democrats in both Houses. NcNary pointed out that if, after the " (See ECONOMY, Page A-4) Seal Proposes District Resume Minimum Wage Law on July 1 To Recommend Fund Be to Administer M Appropriated for Board easure Revived by Supreme Court. BACKGROUND— The District’s original minimum wage law for women and children was invalidated by the Supreme Court in 1923 in the now famous Adkins case. This decision, which had prevented several States from enacting similiar legislation, re- mained in eflect until the recent ruling by the high court on the Washington State minimum wage legislation, which specifically re- versed the Adkins case decision. Administration of the District min- imum wage law for women and minors would be resumed on July 1 next after & 14-year lapse, under plans to be recommended to the District Com- missioners by Elwood Seal, corporation counsel. ‘The plans call for: 1. A request that Congress include in the pending District appropria- tion bill a. “moderate” sum—perhaps less than $15,000—for administrative expenses during the next fiscal year of & yet-to-be-created Minimum Wage f the old la 2. A “working test” of d law before consideration of modifications to bring it up to date, if necessary. 3. A study of the advisability of a new law governing minimum wages of men, to be administered by the board under an amplification of its powers, To Submit Plans. Seal said yesterday he will lay these plans before the Commissioners at an early date. ‘The corporation counsel’s action will be the first definite official move aince President Rooseveli’s request, more than a month ago, that appoint- ment of the Minimum Wage Board be delayed until it could be determined whether amendment of the old law is Decessary. Earlier the President had indicated & desire that attention be given the ~ % question of including men as well as women and children under the mini- mum wage act. In letters to Vice President Garner and Speaker Bankhead, April 6, the President suggested that in view of the long period in which the law was dormant, “Congress may desire to consider whether the act should be administered in accordance with its present terms or whether any amend- ments or other changes are desirable.” He added he had suggested that the Commissioners delay organization of the board “at least until the first of May.” Possible Course Cited. “Should no action be taken by the Congress,” the President said, “I as- sume that the Commissioners of the District of Columbia will appoint a minimum wage board and that such other steps as may be necessary to administer the act will be taken, in- cluding the preparation of estimates for a suitable appropriation.” Congress has given no formal con- sideration to the District wage law, however, the attitude at the Capitol apparently being that any move for revision of the law or for new legis- lation should be made by the District authorities. Chairman Norton of the House Dis- trict Committee has stated repeatedly she is willing and ready to introduce any measure in this connection pro- posed by the Commissioners. The Commissioners, overburdened a8 they are with tax problems, have given only scant attention to mini- mum wages. It is said they were uncertain, anyway, as to whether the President wished them or Congress to initiate action. The Justice Department washed its hands of the problem after reporting to the President that the 1918 law was still in effect, thanks to recent (See WAGE, Page A-5.) e iy Stare SUNDAY MORNING, MAY 9, 1937—124 PAGES. # THE AIR AROUND HERE 1S THICK ENOUGH WITHOUT THAT! [, Roosevelt Voted | Medal to Reward ‘ Service to Jewry By the Associated Press. NEW YORK, May 8—Presi- dent Roosevelt will receive the tenth award of the Richard J. H Gottheil Medal for distinguished service to Jewry, Harold Riegel- man, past president of Zeta Beta Tau Fraternity, announced to- night at the order's annual e Every FIVE CENTS A——"\‘l- A APARTMENT FIRE FATAL TO WOMAN Mrs. Ruth E. Knafifl‘ Burned | to Death—Husband Also Trapped. founders' day dinner here. The award, based on recom- mendations of a jury of distin- guished American editors, was announced simultaneously at alumni gatherings in 39 other cities. FILM STARS FACE PICKET LINE DUTY Strike Possible This Week, Guild Lists Big Names to Back Up Demand. BACKGROUND— Federated Motion Picture Crafts, striking for closed shop and com- plete union recognition, has accept- ed offers of labor organizations to begin boycotting theaters. F. M. P. C. and Screen Actors’ Guild each has announced outcome of separate negotiations with produc- ers will not aflect strike plans of the other. By the Associated Press. HOLLYWOOD, May Actors' Guild officials planned to- night to put high-priced stars in picket lines Monday if producers do not meet their demands and no fur- ther conferences are agreed upon. A ballot authorizing the strike was virtually complete tonight. The guild will meet tomorrow night to hear the report of its committee which conferred this week with motion pic- ture producers’ representatives. If the members vote to strike, a walk- out can be called immediately. 8.—Screen But if producers ask for further | conferences, or if the guild proposes further discussions, there may be another delay or a settlemnt. Meanwhile Guild officials prepared for any eventuality. Aubrey Blair, Guild business manager, said if a walkout is voted “we are prepared to form picket lines in which the stars and extras will march shoulder to shoulder.” He named Clark Gable, Franchot Tone, Joan Crawford, James Cagney, Robert Montgomery, Chester Morris, Boris Karloff, Frank Morgan, Ralph Morgan, Jean Muir, Carole Lombard, Robert Taylor, Jean Harlow, Louise: Rainer, Gary Cooper, Pat O'Brien, Willlam Powell, Joan Blondell, Elissa Landi, Fred Astaire and Ginger Rogers as among stars available for | picketing. The Guild, whose primary demand is recognition as the sole bargaining agency for film players, claims 5,600 members. Others who might be called to picket studios include Edward Arnold, Jean Hersholt, Edward G. Robinson, Robert Young, Lyle Talbot, Spencer Tracy, Francis Lederer, Warren William, Ma- rion Davies, James Dunn, Norman Foster, Miriam Hopkins, Hugh Her- bert and Lee Tracy. Mrs, | and her husband. Charles H. Knauft, | I‘l’a.: burned early today when fire | | Swept. their apartment on the second | | floor of 1630 Lyman place northeast. | The fire, which was confined to tne‘ Knauff apartment, drove 13 families from the two-story building. but they | later returned. Seven babies were | carried out by their mothers. | First firemen arriving broke down | the door of the Knauff quarters and | found Mrs. Knauff on the floor in the living room through which the flames Lwere sweeping. Her husband, Lhey‘ said, was under a bed in another | room where there was no fire. Knauff, | who is 47 years old, is a laboratory attendant at the National Institute | of Health. He was taken to Casualty | | Hospital where it was sald that his | burns, about head and shoulders, are | not very serious. Cause Undetermined. There was nothing to indicate the | cause of the fire in the preliminary | investigation. | Mrs. Knauff, who was about 35 years old, and employed in the Gov- | ernment, stood at a window scream- | ing before she was finally overcome witnesses said. | Herbert Taylor, 22, of 1619 L street northeast, heard the screams and saw her “sitting” in a window. He said he rushed into the house but was | | overcome by smoke before he reached | the apartment. He was revived at the | scene by the Fire Rescue Squad. ! Raymond Montgomery, attendant at a nearby filling station, first saw | |the fire and calied the fire depart- | | ment. Montgomery and John Wheeler, | a companion, shouted to Mrs. Knauffe | to jump, he said. For a moment, he | said, it looked as though she were pre. paring to leap, but then she disap. peared from the window. 'FAKE L0 TTERY RING FOUND IN NEW YORK | 350,000 Tickets Seized by Federal Authorities—Canadian Link Seen. By the Associated Press. BOSTON, May 8.—While postal in- | spectors pushed their investigation into | activities of a fake lottery ring, word came tonight from Ste. Anne De Beaupre, Que , denying the Shrine | there had any connection with a | sweepstake lottery. | A raid in New York City Friday, | metted 350,000 fake sweepstake tickets | and 25,000 stamped addressed enve- lopes. Federal authorities said evidence | in the case will be presented to a | Boston Federal grand jury, because | the investigation was initiated here | Henry M. Leen, assistant United States attorney, declared the fake lot- tery was operated by “notorious rack- eteers in New York,” whom he said had been “connected with lotteries in Canada for a long time.™ Postal Inspector Tennyson Jefferson, | who led the raid, described the seizure as the largest ever made in the United States. Daylight Saving for District Is Favored by Commissioners | to the estimates, would yield a total Adoption of daylight saving time for the District will be favored by the Commissioners in a report to Con- gress on the measure offered by Rep- resentative Sacks, Democrat, of Pennsylvania, Commissioner Hazen announced yesterday. Prom statements and petitions re- celved by the Commissioners, they have decided a majority of Wash- ington residents apparently favor moving the clock an hour ahead dur- ing the warm season, Hazen added. This view is to be expressed in a report on the bill which is being pre- pared for the Commissioners by Corporation Counsel Elwood H. Seal. The House District Committee plans to consider the measure as soon as the Commissioners make a formal report. Chairman Norton of the Dis- trict Committee has asked that action be_expedited. The bill has )gt about split the pal men and women of the District and nearby Maryland and Virginia, who have taken the trouble to write to the House District Committee about it. Women, as a rule, have opposed the measure for various reasons. Men, on the other hand, have been almost unanimous in favoring it on the ground it would give them an added hour of daylight to play golf, fish or engage in some other favorite outdoor sport. With the men out playing golf or fishing, the women fear a daylight- saving schedule would keep them in the kitchen an hour longer. And on that ground most of their objections are based. Incidentally, the bill has produced more mail for the committee than any other local measure introduced at the | B¢ Ruth E. Knauff lost her life Afternoon. | TEN CENTS TAX ON BUSINESS TOYIELD $25000 CONSIDERED HERE D. C. Commissioners May Ask House Group for “Privilege” Levy. PROPOSAL TO ASSESS INCOMES IS RETAINED Revenue From All Measures Sug- gested by City Heads Would Ex- ceed Needs by $2,600,000. BACKGROUND— Radical revision of the District tax structure was recommended by Chairman Collins of the House Dis- trict Subcommittee on Appropria- tions after the District budget, as passed by the House, indicated a minimum deficit of $6,100,000. With the budget bill pending before the Senate, the Kennedy subcommittes of the House has been holding hearings on numerous measures proposed to meet the threatened deficit, BY JAMES E. CHINN, The Commissioners are expected to pull a brand-new tax rabbit out of the hat Tuesday when they go before the special Tax Subcommittee of the House District Committee to present their complete scheme for keeping the District out of the red in the next fiscal year by boosting local taxes $6.000,000 or more. The new plan reported vesterday to be under consideration is a business tax, the principle of which is to levy & one-half of 1 per cent tax against gross receipts of all businesses and corporations in the District, with proe visions for special taxes, or “license s on professional men. such as doctors. dentists and lawyers. Re= ceipts from the tax, the details of which are being closely guarded until presentation to the committee, are estimated at $2.500,000 The proposal is described as a com- bination “business privilege and gross receipts tax” Nothing like it has been proposed here before. Income Tax Also Proposed. The Commissioners, according to re- ports yesterday, also plan to include a local income tax in their program. Considered as a substitute for the pres= ent tax on intangibles, the income tax would produce a net additional yield of 32,500,000. The local income tax has been opposed by the Federation of Citizens® Associations and other groups, one reason for opposition being the diffie culties of administration under the population conditions peculiar to the District of Columbia. The Commis- sioners’ tax, however, may modify some of the provisions of the Collins income tax bill, already introduced. Total vield of the measures proposed by the Commissioners. it is stated, would be about $8.600,000—or $2,600,~ 000 in excess of the current revenue needs as shown in the District bill 85 it passed the House. Members of Congress as well as local citizens have stated repeatedly that new taxes should be levied to produce only the amount needed to prevent a deficit, Five Plans Already Offered. The Commissioners already have submitted five proposals for raising the needed additional revenue, but several of these probably will be al- tered somewhat due to the prospective Inclusion of an income tax in the program. The principal change, it was said, will be designed to prevent diversion of taxes paid by motor vehicle owners to support activities other than those related to the high- way department Corporation Counsel Elwood Seal, it was learned at the District Building, is working out the details of the in- come tax. Changes to be proposed in the original tax plans are being hane dled by Richmond B. Keech. vice chairman of the Public Utilities Com- mission, and Capt. H. C. Whitehurst, director of highways, both members of a committee of District officials created by the Commissioners to develop a new program of taxation. The Commissioners will meet with the Tax Committee tomorrow to take formal action on the new tax proposals 50 they can be whipped into final shape for submission to the House Subcom- mittee the following day. New Auto Tax Considered. TRe tax plans which may be recom- mended by the Commissioners and the estimated amount of revenue yield follow: 1.—An increase in the gasoline tax from 2 to 3 cents a gallon—$1,100,000. 2—A weight tax on motor vehicles, eliminating the present $1 registra- tion fee, but continuing the personal property tax—$1,500,000 3 —An estate or inheritance tax— $800,000. 4—An increase from 15 to 2 per cent in the net premium receipts tax on insurance companies—$200,000. 5.—A combination business privis lege and gross receipts tax on various forms of business—s$2,500,000. 6.—A local income tax—$2,500,000. Altogether, the six plans, according of $8,600,000, or about $2,600,000 in excess of the original $6,000,000 goal, The Commissioners, however, are said to contemplate recommending that all revenues from the gasoline tax and the motor vehicle weight tax, to« taling an estimated $2,600,000, be set aside exclusively for the support of the highway department, the trees and parking department, and certain ac- tivities of the office of the director of vehicles and traffic. Originally the Commissioners proposed that the rev~ enue from the motor vehicle tax go into the general fund of the District, where it would be used for sundry municipal purposes. If motor taxes are regarded as cone stituting a special fund, tl (See TAXES, Radio i’rognms, P:ge F-3. current session of Congress. Cmplm'lnllex. Page A-2,

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