Evening Star Newspaper, May 28, 1937, Page 1

WEATHER. (U. 8. Weather Bureau Forec Falr tonight and tomorrow; cooler tonight; gentle northerly winds tonight, becoming variable tomorrow. Temperatures—Highest, 89, at 5 pm. yesterday; lowest, 65, at 9 a.m. today. Full report on page A-17. ) slightly Closing N.Y. Markets—Sales—Page 16 85th YEAR. No. matter second Washington, D. C. PRESIDENT ASKS NEW ACT TO END BIG TAX EVASION "Will Urge Law to Stop Losses of Millions. CHARGES OF FRAUD TO BE PREPARED U. S. Maps Legal Action Against Scores of Wealthy, BACKGROUND— After March 15 income tax re- eeipts fell 17 per cent short of original estimates special Treas- ury survey was ordered. Survey revealed many evasions, especially among large tarpayers. Study for last several weeks has eoncentrated on methods of clos- ing loopholes in income tar law. Officials now erpect to collect around $500.000.000 in second- quarter income taxr payments next month. BY the Associateq Press. President Roosevelt said today he would ask for legislation this session to check what he termed both evasion and avoidance of income taxes running into mil- lions of dollars by a small group of wealthy persons. | He told a press conference he had received reports from the Treasury of glaring evasions and avoidances which had raised an important moral issue, and that there was no question there | would have to be additional legisla- tion to plug loopholes. Earlier today Treasury officials dis- | closed they were mapping legal action | against scores of large taxpayers. [n‘ some cases, they said, civil proceedings will be undertaken. Fraud Charges to Be Presented. In others, fraud prosecutions will be recommended to the Justice Depart- ment. Every day, the President said, new types of cases are being revealed. He emphasized that a great ma- Jority of taxpayers were making ethi- cal returns, and that the evasion by | the small group was not only hurting | themselves but hitting other taxpayers. | At the Capitol, Chairman Doughton, | Democrat, of North Carolina, of the | House Ways and Means Committee | sald he did not think “there is any | doubt” but that tax evasions by | wealthy individuals was responsible | for the failure of Government revenue to come up to estimates. Asked whether he thought tax dodging by the wealthy accounted for | all the difference between revenue re- turns and estimates, he replied: “I believe that, but I don't know {t. If they had paid all the taxes the law intended to impose, I believe we would have received all or more than was estimated.” Mostly Individuals Concerned. In his discussion of the question the President said most of the cases turned up so far concerned individ- uals. He added the Treasury was not ready to study the corporation phase because so many corporations had asked for extensions. Giving an example of what he be- lieved to involve a moral question, Mr. Roosevelt said if Congress passed a law in good faith and then some one, through the aid of a high-priced | lawyer, invented a new loophole, that raised the question if it was a moral thing to do even though legal. He cited one case of an owner of an expensive yacht who had created a corporation through which he could rent the boat and thereby avoid pay- ment of certain charges for upkeep. The President said if the owner ran the yacht out of his own in- eome he could not deduct crew wages and depreciation and the like in| making his return. He said more cases of this kind undoubtedly would be disclosed, but that it was not up to him to publish the names. Losses Run Into Millions. Asked to estimate the amount of voldance, he said that while the in- quiry had only scratched the surface of sample cases it runs into millions of dollars. Mrs. Roosevelt said the social se- eurity taxes were being evaded in some cases, and that ‘while the whole ractice has been increasing in the (See FINANCE, Page A-4) Griffith Offers Jacobs Job on Nationals’ Farm Newton 8. (Bucky) Jacobs, who pitched three no-hit, no-run games for the University of Richmond this Spring, will land a job with a Wash- ington club farm if his parents agree to an offer made by Clark Griffith, head of the Nationals, After an impressive workout at the ball park here yesterday, Jacobs was told there was an opening for him at Charlotte, the Nationals’ farm club in the class B Piedmont League. Terms have not been revealed, but Jacobs, ‘who is not yet 21, can not accept with- out his parents’ approval. ‘The slender pitcher, a right-hander, displayed his entire repertoire in his ‘workout here. On the receiving end was Shanty Hogan, Washington catcher, who was quoted as saying: ““That boy has everything—speed, con- trol and a fine curve.” Manager Bucky Harris said “he looked good enough to sign without even watching him pitch in batting practice.” Jacobs won 18 games in a row for Richmond in three Springs before the streak was broken by the University of Virginia May 12. The Athletics and Tigers are said to be bidding for ‘ his services. “ Finds Evasions ROSWELL MAGILL. CABINET IS NANED BY CHAMBERLAIN Baldwin Is Honored by King George as He Quits Premiership. BACKGROUND— Stanley Baldwin rose from practical obscurity 16 years ago to become one of Britain's most renowned prime ministers. He succeeded Bonar Law as leader of the Conservative party. He resigns the premiership to retire to private life, leaving his post amid the acclaim of the British people. One of the noteworthy accomplish- ments of his career was the han- dling of the abdication crisis last December. By the Associated Press. LONDON, May 28.—Stanley Bald- win, “savior of the monarchy,” re- tired today as Great Britain's prime minister after historic service and was succeeded by Arthur Neville Cham- berlain, his chancellor of the ex- chequer. King George VI conferred on Bald- win the highest distinction within the gift of the crown—a Knighthood of the Garter—tonight after the smooth- ly managed switch of governments. The King received the new na- tional government, still a coalition administration, in a special audience at Buckingham Palace after the change-over from “Honest Stan” the King-maker, to cool, efficient Chamberlain, “as practical as a plumber.” Chamberlain quickly reorganized the cabinet, to fill vacancies created by Baldwin's resignation, the eleva- tion of Walter Runciman, erstwhile | president of the Board of Trade, to the peerage and the advancement of Baldwin ministers to higher posts, The new cabinet: Neville Chamberlain—Prime min- ister. Sir John Simon—Chancellor of the exchequer. Viscount Halifax—President of the Council. Viscount Hailsham—Lord chancellor. Sir Samuel Hoare—Home secretary. Anthony Eden—Foreign secretary. Lord de 1a Warr—Lord privy seal. Malcolm MacDonald — Dominions office. . Marquess of Zetland—India office. a William Ormsby-Gore—Colonial of- ce. Sir Thomas Inskip—Defense co- ordination. Alfred Duff Cooper—Admiralty. Leslie Hore-Belisha—War office. Viscount Swinton—Air. Walter Elliot—Scotland. Oliver Stanley—Board of Trade. ‘W. S. Morrison—Agriculture. Earl Stanhope—Board of Education. Sir Kingsley Wood—Health, Ernest Brown—Labor. Leslie Burgin—Transport. The honor to Baldwin, free now to retire to his books and his favorite hobby, the breeding of pigs, was given .him in addition to an earldom which he accepted for himself and his de- | scendants. The Order of the Garter dates back to King Edward III, who, in 1348, limited it to the sovereign, princes of the blood, foreign monarchs and 25 knights-companion, .which Baldwin becomes. The 69-year-old statesman handed over one of the world’s biggest jobs to conservative Arthur Neville Cham- berlain, his right hand man who is only one year his junior. b WASHINGTON, STEEL ORGANIZERS TIGHTENING STRIKE ON 3 MAJOR FIRMS Picket Lines Strengthened | About Two Republic Plants. WIDESPREAD REDUCTION IN OPERATIONS FORCED Auto and Other Unionists to Aid | Drive—U. S. Intervention Envisaged. BACKGROUND— John L. Lewis' Committee for Industrial Organization has car- ried drive into mass production industries, striking first at auto- mobile manufacturers and, after winning contracts with General Motors and Chrysler, have inau- gurated campaign against steel industry. Large number of steel companies, including subsidiaries of United States Steel, which have per- sistently in past refused to bargain collectively, have entered agree- ments. Three major independent producers have held out, however. Widespread strike has resulted. Ey the Associated Press. YOUNGSTOWN, Ohio, May 28.— John L. Lewis' militant steel unit gird- ed on several fronts of a broad Great | Lakes sector today to tighten strike | lines around three major producers who have constantly refused to sign union contracts. Seventy thousand were idle—47,000 in Ohio and 23.000 more in Chicago's | Calumet area, key producing centers of the far-flung major industry which employs upward of 550,000 workers at its fiery-hot open hearths and blast | furnaces. Great lofty smokestacks poked emp- | tily skyward from closed mills of the | | Youngstown Sheet & Tube Co. and the Inland Steel Corp. Many Re- public Steel Corp. plants also were | shut by husky pickets. But two big plants of Republic— largest of the three independent pro- { ducers locked with the Steel Workers’ Organizing Committee in its greatest | test of a year-old organization drive— | continued curtailed operations in South Buffalo, N. Y, and South Chicago unite, Picket Forces Expanded. It was against these that Lewis'| steel chieftains mobilized expanded picket resources. Hugh Thompson, organizer for Lewis' | Committee for Industrial Organization, | embracing automobile, garment, mine, | rubber and other union workers, de- clared that 3,000 C. I. O. auto and other unionists would swell picket lines around the South Buffalo mills. “They will form one of the biggest picket lines this part of the country has ever seen,” he said. Pickets moblilized for a fresh drive | to close Republic's main Chicago area | plant after police broke up two at- tempts to mass around company gates. Strike leaders expected reinforce- ments from other plants. John Mayo, sub-regional director for the S. W. O. C. in Youngstown's | Mahoning Valley area. told a group of | strikers near Republic's mills: “Ninety per cent of the battle is | over and your work will serve the { working man in generations to come. | If you all get out on the picket lines there will not be a drop of blood shed.” Republic Units Operating. Smoke that normally clung black and heavy, dwindled to thin scattered wisps in Northeastern Ohio’s steel centers as Republic claimed it also had units operating at Warren and Canton, “Previous to the strike Republic had been operating 60 of its open hearth furnaces in plants where strikes were called,” the concern said in a statement issued from its gen- eral offices at Cleveland, where its four plants employing 7,000 were closed. s “With the steel plants at Warren, Canton, Chicago and Buffalo working, there are a total of 23 open hearths in production,” it stated. S. W. 0. C. sources asserted the number operating was less than one-third of Republic's claim. U. S. Intervention Envisaged. ‘The scene was comparatively peace- ful as Federal intervention from Washington was envisaged by an au- thoritative source as the only chance for a quick break in the five-State steel strike deadlock. Declining to be quoted by name, the source in contact with both sides pointed out that the youthful S. W. O. C. and independent producers were locked in a conflict over how to proceed to negotiation of a strike settlement. As the biggest steel strike since 1919 moved into its second day around the sprawling plants from Chicago to Buffalo, there was no immediate in- dication from the official that Wash- ington would seek a quick settlement. | stories. Two Pages of Comics in The Star Every Day Beginning Monday * k% TWENTY-TWO COMIC FEATURES TO ENTERTAIN AND AMUSE YOU x* % % Follow the antics of your favorite comic char- acters and meet the six newcomers—all ready to greet you on these new pages next Monday ‘WITH SUNDAY MORNING EDITION D. C, REBEL RAID KILLS 200 IN VALENCIA; U. 5. CONSUL SAFE Wells Escapes Rain of De- bris—British Boat in Harbor Is Sunk, FIVE ITALIAN CAPRONIS DROP 50 BOMBS ON CITY FRIDAY, At Least Half a Hundred Build- ings Shattered—Paraguay Office, Flag Destroyed. BACKGROUND— While European powers confer on ways and means to end Spanish civil war, slaughter of non-com- batants goes on apace. Aerial raids are among more spectacular meth- ods of inflicting death on unpro- tected or ““open” towns. Loyalists say planes and men have been contributed to rebel army by Italy and Germany. By the Assoclated Press. VALENCIA, Spain, May 28.—Five insurgen. planes, described by com- petent observers as Italian Capronis, carried out a terrific bombardment of Valencia before dawn today and killed an estimated 200 persons. Droning in from the sea and down on this temporary capital of the Spanish government an hour before daybreak, the planes dropped 50 300-pound bombs. By noon 76 of the dead had been identified. The American Consul, Milton K. Wells, was caught in a rain of debris, but was unhurt. Several Americans, including Norman Thomas, the United States Socialist, and his wife were | housed a few hundred feet from where three bombs fell. The building | housing the American Embassy was damaged, but not the embassy itself. No American was reported hurt. English Ship Reported Sunk. An English boat, the Cadin, an- chored in the harbor, was reported | sunk, with seven crew members killed and eight injured. Other reports said a bomb also fell on the English | steamer Pinzon, but that no serious damage resulted. Sleeping men, women and children were blown from their beds to a terrible death. Some of them were pitched into the street from upper At least 50 buildings were wrecked. Bombs falling into the streets ripped steel shutters from windows. Some of them demolished only the front walls of houses. Thousands of win- dows were shattered. Many were injured and many were unaccounted for, with rescue work- ers finding more bodies hourly as they | cleared away debris. The building housing the Paraguay- an consulate was wrecked and seven occupants killed, but Consul Carlos Dupuy and his wife, mother, sister and four children escaped injury. The consulate office was destroyed, and the Paraguayan flag on the building was torn to shreds. ROME, May 28 (®.—The Italian government said today a bomb land- ed near an Italian warship during a Spanish government bombardment of insurgent Palma, capital of the Island of Mallorca, in the Medi- terranean. Details were not known. BILBAO OFFENSIVE HALTED. HENDAYE, Franco-Spanish Fron- tier, May 28 (#).—Gen. Emilio Mola's new offensive south of Bilbao was “completely paralyzed” today, the Basque command asserted, while in- surgents accused the Basques of firing MAY 98, Orduna, their southern outpost, pre- paratory to retreat. Summary of Page. Amusements_B-16 Comics C-6 Editorials ..__A-8 Short Story-..B-6 Society - B-3 Financial ___A-15 | Sports _ ... C-1-3| Lost & Found A-3 | Woman's Pg...C-5 Obituary ____A-10 | FOREIGN. Baldwin turns premiership over to Chamberlain. Page A-1 Rebel air raid kills in Va- lencia. Page A-1 Rescuers dig for 100 buried by silt as dam bursts, Page A-1 Royal title reported denied Mrs. ‘Warfield. Page A-5 NATIONAL. Steel organizers tightening strike on three major firms. Page A-1 Cutter rushes serums to rich banker with peritonitis. Page A-1 President to seek legislation to stop tax evasions. Page A-1 Merrill to be honored at Aviation day dinner. Page A-2 Alterations proposed for wage-and- hour bill. Page A-2 President hits earmarking of third of relief fund. Page A-4 Congressional leaders to appeal to Roosevelt on relief. Page A-4 Roosevelt vetoes war risk insurance extension. Page A-4 Farm price stabilization cost brings clash at hearing. Page A-11 Gladys MacKnight and boy friend convicted of slaying. Page B-5 WASHINGTON AND VICINITY. A. B. C. Board to decide on liquor li- cense near churches. Page A-1 Drafting of D. C. income and business privilege taxes begun. Page A-1 ‘Tomlinson robbery case is given to Jury. Page A-2 Romance and Latin complicate life of 200 middies’ color girl. Page A-3 Way now clear to eliminate syphilis, Yale professor says. Page A-5 A.F. G. E. “rebel lodges” plan protest mass meeting. Page A-5 Bicycle mishaps cayse fatality, i juries Poin W1 ¢ Foening Starp 1937—FORTY-EIGHT PAGES. #%% o/ 77 2 2 7 Liquor Permits Near Churches To Be Decided Overriding the wishes of organized church and civic leaders, the Commis- | sioners today gave the Alcoholic Bev- | erage Control Board carte blanche to | exercise its discretion as to whether | liquor stores may be licensed in close | proximity not only to churches, but‘ to public and private schools and col- leges as well. The Alcoholic Beverage Control | Board had asked the Commlssmners; for an amendment to the regulations | which would empower the A. B. C. Board to decide if a Class A license, for the sale of bottled liquor goods, | may be granted to a store within 400 | feet of a church which was located in | a business zone, as defined by the | zoning regulations. The Commissioners rejected that proposal after considering the prob- | lem at numerous board meetings That proposal had been protested in | vigorous fashion by spokesmen for the Washington Federation of Churches and the Federation of Citizens' Asso- | ciations. by Board Alone Instead, the Commissioners today approved a new recommendation from the A. B. C. Board for the entire elimination of section 3 of the liquor regulations. This means that if the | A. B. C. Board decides a place is ap- | propriate, and unless the majority of the property owners within a radius of 600 feet file a written protest, the A. B. C. Board could issue a liqu permit to a place immediately adjoin- ing a church or school. The A. B. C. Board told the Com- missioners there was general authority in the act governing the issuance of | licenses and referred to the legal pro- vision, which states that among other | things the A. B. C. Board must decide, before issuing a license, is that “the place for which the license is to be ssued is an appropriate one, consider- ing the character of the premises, its | surroundings and the wishes of the persons residing or owning property in the neighborhood of the premises for which the license is desired. QUEZON SUFFERS COLD Philippine President Confined to New York Hotel. NEW YORK, May 28 (#)—Suffer- ing from a slight cold, President Man- uel Quezon of the Philippines Com- monwealth remained in his hotel room today, “afraid of the weather,” which was cloudy and damp. Gen. Basilio Valdes, a member of the President's party, said President Quezon did not know how long he would remain in New York or whether he would make a trip to Washington. EDUCATOR SILENCED Nazis Ban Public Addresses by School Head. KOENIGSBERG, Germany, May 28 (®)—Principal Hans Joachim of a boys’ school at Bloestau was ordered today never again to make a public address because he criticized the gov- ernment before the East Prussian Protestant Confessional Synod. He also was denied the right to reside in East Prussia, Today’s Star Abolition of business area parking here urged. Page B-1 District Airport Commission to meet today. Page B-1 Garbage plant employes deny knowl- edge of abuses. Page B-1 New Anacostia bridge urged at supply bill hearing. Page B-1 More Japanese cherry trees aim of Fine Arts group. Page B-12 EDITORIAL AND COMMENT. Editorials. Page This and That. Page Political Mill. Page Washington Observations. Page Answers to Questions, Page David Lawrence. Page Paul Mallon. Page Dorothy Thompson. Page Constantine Brown. Page Headline Folk. Page SPORTS. Addition of Gray, return of Bolton booms Nats’ catching. Page C-1 Manero and Cooper provide natural golf struggle. Page C-1 Welsh defaults New England title for Star tourney. Page C-2 Cottoon bolsters English team for Ryder Cup golf. Page C-3 Towns called greatest of all hurdlers by Robertson. Page C-4 EEEEEEEEE» bbb Dbk ®Rm FINANCIAL. Bond trend improves (table). Business forges ahead, Freight loadings rise. Stocks advance (table). Curb list gains (table), Earnings favorable,, MISCELLANY. Shipping News. Winning Contract. Nature’s Children. ‘Young Washington. Bedtime Story. Dorothy Dix. Betsy Caswell. Crossword Puzzle. Letter-Out, City News in Brieh Traflc Qonvictions, Seyvice Ovders, Page A-15 Page A-15 Page A-15 Page A-16 Page A-17 Page A-17 Page A-10 Page B-8 Page B-8 Page B-14 Page B-17 Page C-5 Page C-5 Page C-6 Page C-1 Page C-12 Page C-12 A PageC-13 PROF ADLERNOTED SCIENTIST. 15 DEAD Former Associate of Freud | Stricken on Street—Ex- pires in Ambulance. Py the Associated Press. ABERDEEN, Scotland, May 28— | Prof. Alfred Adler, 67, Viennese psy- | chologist and long-time associate of | Dr. Sigmund Freud, collapsed in the street today and died in a police am- | bulance while en route to a hospital. | Prof. Adler had been lecturing at | Aberdeen University. He was asso- | ciated with Dr. Freud in the develop- | ment of many of his behaviorist | theories. The psychologist's secretary said Prof. Adler had not complained of ill health until recently. Notice of his death was sent to his daughter, Dr. Alexandra Adler, a research fellow at Harvard University, Cambridge, Mass. | Lectured Here January 11. | Dr. Adler lectured here before the Town Hall of Washington last Jan- uary 11, discussing the system of “Indh‘idufll_}’syghology"‘ which he (See ADLER, Page A-3.) —_ Moonlit Rainbow Seen. SPOKANE, Wash, May 28 (®)— The rare spectacle of a rainbow by The only evening paper in Washington with lt)he Associated Press News and Wirephoto Services. moonlight was reported today at the | Northwest Alrlines office. 4 (Some retur; (®) Means Associated Pr Z A7 ';2;2::" v/ s RESCUERS SEEKING 00 KILLED BY DAM Barrier Bursts, Spewing 3- Million-Ton Avalanche on Sleeping Village. By the Assoctated Press. MEXICO CITY, May 28.—A hur- | riedly reinforced army of rescue workers dug through millions of tons | of rock-studded mud today in a frantic effort to reach the more than 100 dead | estimated to have been buried beneath an avalanche that crashed down on the mining town of Tlalpujahua. A bursting dam, high in the moun- | tains of the Tlalpujahuila Sierra of Northwestern Michoacan state, loosed the 3,000,000-ton mass on the sleeping city shortly before dawn yesterday. | Reports from El Oro, 15 miles | away, said the death toll might go as high as 500 when the last of the once golden silt had been cleared from the 3 square miles it buried. 1 The dam held back the “tailings” | left after gold had been washed out | in the cyanide metal processing opera- 1 tions of the Dos Estrellas Mining Co. | Dispatches to the newspaper EI, Excelsior said the slide buried or de- stroyed more than 400 houses in the town which has a population of 10,000. Water backed up behind the mass | increased the damage. | Thirty bodies had been recovered at dawn while Rafael Reyes, secretary | to Hoken E. Niberg, general manager | of the company, said the dead could be “conservatively estimated at more than 100.” | All operations of Dos Estrellas, the | | second largest mine in Mexico, were | halted and nearly 5,000 employes | joined Red Cross and labor depaFrt- | ment detachments from Mexico City | in relief work. They turned great jets of water from pressure hoses and pipes on the silt to tear it away so the buried bodies could be reached. ‘Three days of pouring rain had weakened the dam which buckled about 3 a.m. yesterday, sending the accumulated mud of years roaring down the bed of a narrow ravine upon the sleeping town, a scant half-mile below the workings. e o Miss Goulding Engaged. CANNES, France, May 28 (#).—The engagement of Miss Ivis Ethel Gould- ing, daughter of Mrs. Charlotte Gould- ing of Los Angeles, and Frederick Wil- liam Proctor, son of Mrs. Sanford Proctor of New York, was announced yesterday. The wedding was set for | about June 20. BY JOHN J. DALY. A collection of rare old currency from the estate of the late Hetty Green, once rated the wealthiest woman in the world, went up in smoke at the Treasury Department yesterday. Redeemed by the Government for $198,176, its face value, the collection is claimed by collectors to be worth close to a million on the open mar- ket. A check for actual redemption value of the money was made out by Wil- liam A. Julian, United States Treas- urer, and turned over to the lega. rep- resentatives of Col. Edward H. R. Green, son of the late financier. Currency collectors all over the country will be chagrined when they learn of the fate of the old bank notes —silver and gold certificates, perfo- rated, cut in half, and destroyed. Only one case note out of the col- lection was saved—and that went to Uncle Sam’s permanent collection in the Treasury. It is & $500 national bank note, printed by the Bureau of Engraving and Printing as one of the first issues authorized by the banking act of June 3, 1864. Because the specimen was in much better condition than the one in the Treasury exhibit, M. E. Slindee, ad- ministrative assistant to the Treasurer, ordered it held. The bill retained at the Treasury since 1865 was burned in its stead. Treasury experts, who know the value of old and rare currency, were amazed at the casualness with which the Green transaction took place. A man with & little black bag, closely guarded by two private detectives, walked fiuvun%bc Fitteenth street | Old Money, Valued at Million, (Cashed for $198, 176 and Burned entrance of the Treasury yesterday and asked for “the man who redeems old currency.” The captain of the guard sent him to the office of F. E. Reppert, chief of the redemption di- vision. Reppert was out, so the negotiator for the Green estate put his proposi- tion to Assistant Chief W. D Beatty, who immediately got in touch with Slindee. Every one who heard about the transaction wanted to know why any one possessing money worth five times its face value would turn it over to the Government for mutilation. Even the fact that Col. Green had inherited $100,000,000 from his moth- er's estate did not supply an answer Nearest approach to a solution came from A. M. Nevius, vice president of Riggs National Bank, the gist of whose explanation was: James Wade of Chase National Bank, New York, who is an expert on old currency, was called on to advise the Green estate in the disposal of certain rare documents, stamps and money. He came upon two collections ot i United States currency, complete from the time Uncle Sam first issued paper money. Since there were some “thirds,” or extra notes, he advised that these be turned in to the Gov- ernment. Right or wrong, the theory advanced today was that the notes mutilated yesterday were put out of circulaion with a purpose—to defeat the ends of professional collectors. If they had fallen into the hands of collectors, it was said, the value of the oollections now in possession of Col. Green I'HA have depreciated. Yesterday’s Circulation, 140,734 ns not vet rceived.) TWO CENTS. .G HEADSOUTLINE REVISED TAX PLAN 10 MEET BUDGET Tentative Approval .Given to Business Privilege and Income Levies. DETAILS ARE MAPPED FOR TWO NEW BILLS Rates Still Undetermined as Com- missioners Rush to Complete Task by Tuesday. BACKGROUND— Increasing obligations and de- creasing Federal assistance have brought the District face to face with threatened deficit of from $6.000,000 to $8.000,000 for 1938. New tax levies apparently in- evitable, problem was placed in hands of House subcommittee, with most intense controversy centering on desirability of sales or individual income taz as major revenue raiser. Yesterday committee favored ine come tax as part of five-point pro= Acting with haste in their fight against time, the Commissioners to- day approved, tentatively at least, & revised budget-balancing tax program which would produce $3.000.000 from a business privilege tax and $2,000,000 from a District income levy This informal decision was reached this morning after the Commissioners had conferred with their Tax Revenus Committee, which then immediately began preparation of details of the two new bills. The rates and other details to be ine corporated into the income and busi= ness-privilege tax measures had not been determined, but speedy action was promised because the tax subcommite tee of the House District Committea has ordered the program must be Teady for its consideration by Tuesday morning Special Highway Fund. The Commissioners’ committee ane nounced the weight tax on automoe biles, designed to bring in $1,500,000, will be framed so that the revenues would go into a special highway fund, and not the general fund. This plan was adopted because the House sube committee ruled out of consideration the proposed increase of the gasoline tax from 2 to 3 cents. Capt. H. C. Whitehurst, director of highways, has made a strong fight for increased funds for highway purposes, and, according to word at the District Building, some members of the House subcommittee will support the move to turn this new tax on motor vehicle owners to the exclusive use of highway improvements. Present Intention, The Commissioners also had d termined that the existing intangible personal property tax should be ree tained and should not be confused with the operation of the proposed incoms tax. As the program now stands the Commissioners will seek, rather, to amend the intangible tax law to put more teeth into it. Specifically they plan to ask that the District assessors be authorized to examine books and records of banks and other parties dealing with the intangible holdings of residents of the District. The House subcommittee has been advised by Assessor Fred D. Allen that such changes should be made if the intangible tax was retained. He has predicted the District might be able to collect as much as $1,000,000 addi= tional if this power were granted. Other District officials think this estie mate too high. = Carrying out a suggestion made by the House subcommittee, the Com= missioners also will propose that fore eign corporations doing business in the District be required to register with the District government, pay a registration fee and to designate a | resident agent upon whom legal | process might be served. The Come | missioners’ committee has not yet de= termined what the registration fee would be. Aim at Gas Importers. While the House subcommittee has turned thumbs down on the proposed | gas tax increase, the Commissioners hope to salvage from the bill proe visions which would require the | licensing and bonding of all gas im= porters who serve as the fiscal agents in the District in the collection of the gas tax. Furthermore they hope to have in | such a measure additional provisions iwhi(‘h would establish more definitely | the “chain of title” of the gas owne | ership £s an aid to a check on collec« tions of the due taxes. The assessor's office has had numerous cases in re« cent years of alleged attempted eva- sion of the gas tax payments, The present plan is to incorporate these (See TAXES, Page A-4) NAZIS TO PUSH TRIALS OF CATHOLIC PRIESTS Public Prosecutions Will Be Held at Koblenz—Offer to Pay ‘Writers’ Expenses. By the Assoclated Press. BERLIN, May 28.—The Nazi regime announced today a new public series of trials of Catholic priests and lay brothers on immorality charges. Apparently determined to fight out the church-state dispute to a finish, officials said the trials would begin at Koblenz on June 3. Foreign corree spondents received special invitations to travel from Berlin to Koblenz at government expense. A number, how= ever, declined. - Tonight, Propaganda Minister Paul Joseph Goebbels, in Deutschland Halle, will “answer” George Cardinal Mundelein’s anti-Nazi Chicago speech. The Chicago cardinal, calling Goeb= bels *“crooked” and Adolf Hitler an “Austrian paper hanger,” assailed Nazi publicity of such' “immorality trials” as G‘WM P