Evening Star Newspaper, June 15, 1937, Page 4

CORPORATE PROFIT TAX'1S REQUESTED Falr Tax Group Indorses 7V Pct. Income Levy on Businesses. A tax program designed to raise about $7,800,000 to cover the deficit in the District of Columbia budget for the next fiscal year was recommended last night by the Citizens’ Committee on Fair Taxation at a meeting at the Y. W.C. A ‘The program, presented by a special committee headed by Alex G. Nord- holm, chairman, included a corporate net profits tax, an individual income tax and inheritance and estate tax. The corporate tax would be 7!2 per cent on net income of corporations, as determined on Federal income tax returns by the commissioner of in- ternal revenue. This would take the place of hoth the business privilege tax and also the corporation tax of 5 per cent pending in the Kennedy omnibus tax bill. Income Tax Up to 15 Per Cent. The individual income tax would be greduated from 1 to 15 per cent *on individual net income, provided no combination of Federal and Dis- trict of Columbia income tax should exceed 85 per cent total. Exemptions would include $2,000 for a single per- | “son, $3,500 for A married couple and $500 for each dependent. The committee defeated a proposal | “of Benjamin Marsh, of :Lobby, to fix exemptions the same as fthe Federal income tax, $1,000, $2,500 +and $400. Marsh also was defeated in ‘his efforts to have the committee rec- ommend a tax of one-half of 1 per «cent on the “unimproved value of land in the District of Columbia.” 5 Estate Tax Indorsed. * The inheritance and estate taxes swere approved as included in the :Kennedy omnibus bill. The Special Tax Program Commit- tee, whose report was approved with- sout change, included Chairman Nord- | ~holm, Hepbert Wood and Arthur Bernstein, Sidney R. Katz, chairman of the ‘Crganization Committee, laid plans to extend the scope of the work by in- viting co-operation from citizens' as- &pciations, welfare and fraternal kodies, Government workers and or- ‘ganized labor. The Citizens' Committée on Fair | “Taxation, it was explained, is opposed 1o the sales tax as a heavy levy on the average man, and opposes the -business privilege tax here as a gross | sales tax too easy to pass on to the consumer. Taxes (Con#nued From First Page.) ~or twice as much as the original esti- | +mate of the Commissioners. “The goal of the subcom: ee was | “%0 raise $6,000,000,” he said, “and if ithe business privilege tax can raise that amount, I don't see the neces- | sty for an income tax.” Unless Kennedy's bill is enacted into 1aw before July 1 the District will be | RePresentative PeobIe’s | yhole—a move that would have lim- {law without Sure-Fire Strategy THE EVENING STAR Is Riddled As Tax Forces Shift Generals House Upsets Plan to Get Action on D.C. Program as Palmisano Takes Leadership on Short Notice. Even “the best-made plans of mice and men often go awry.” And that's exactly what happened in the case of the six men who wrote the new ill-fated tax increase pro- gram’ for the District—Representa- tives Kennedy of Maryland, Nichols of Oklahoma, McGehee of Mississippi and Allen of Delaware, Democrats, and Cole of New York and Dirksen of Dllinois, Republicans. Instinctively, these six men, who constituted the Special Tax Subcom- mittee of the House District Commit- tee, knew the tax bill was headed for a stormy voyage through the House. Their service in Congress had taught them the opponents would adopt every approved form of parliamentary strategy to either block or delay ac- tion. So, like experts on military science and tactics, the aix subcommittee members gathered in secret conclave before the House convened yesterday to map out an offensive. It was de- cided that Kennedy, who served as chairman of the subcommittee, and who was well informed on the various features of the 80-page bill, should pilot it through the Hous~. ‘The strategy was to have the House con- | sider the measure in committee of the ited debate on a bill that obvious] was controversial and would have as- sured some action on it before ad- journment. Palmisano Enters Plans. The plan looked all right on paper. But the subcommittee members oves looked the fact that Representative Palmisano, Democrat, of Maryland was acting head of the committee in the absence of Chairman Norton. Palmisano had not been taken into the subcommittee’s confidence. And what happened? Just as the House was about to convene, Palmi- sano was advised of the strategy. The plan was all right as far as he was concerned, but he decided, as acting chairman of the committee, it was his duty to ateer the bill through the House rather than Kennedy. Palmisano had not sat with the subcommittee during the long and te- dious hours it struggled with the tax program. He did not know its multi- farious details and was not in a posi- tion to explain them intelligently to & House that undoubtedly would ask many questions. Members of the sub- committee, however, failed to make an impression on Palmisano with that argument. The result of the subcom- mittee’s strategy, of course, speaks for itself. The procedure was something like this: ‘When Palmisano was recognized by Speaker Bankhead to call up the tax bfll, Representative Dies, Democrat, of Texas asked unanimous consent to speak two minutes out of order. There was no objection, not even from Pal- misano. Gets in Attack en Bill. And what does Dies do? He used those two minutes to make a scathing denunciation of the tax program and to point out it proposed to tax the income of members of Congress as well as their constituents who work in Washington. When Dies finished, Representative Smith, Democrat, of Virginia asked for the same privilege. There was no objection to his request. Smith fol- lowed the same tactics by condemning the income tax proposal in so far as it concerned taxing salaries of non- residents. By that time the opponents had laid the foundation for the action that followed. Palmisano’s motion for the House to begin consideration of the tax bill was voted down amid a din of applause and cheers. Representative Nichols jumped to his feet. “I had no idea the House misunder- stood this legislation,” he shouted. “If I had, T would have attempted to ex- Pplain {it.” Nichols was too late, however. The tax subcommittee had been outwitted and the tax bill remains to plague the House at some future date of Illinois, however, severely criti- cized the House for “summarily” dis- posing of the tax bill. He is a mem- ber of the tax subcommittee which framed the measure, and championed the income tax plan. The income tax plan, Dirksen pointed out, was modeled after the Mapes income tax bill, which passed the House in 1931 without opposition. “I wonder why all this uproar now,” he said. “So little was said about the income tax in 1931, and so much is being said at this time. “The crux of the matter is the in- come tax would tax members of Con- gress. You can't enact an income tax including members of Congress and Federal employes. Non- residents who work here should pay 8 fair share toward the expenses of the District as a contribution toward the benefits they receive.” Nichols also ‘de- faced with a depleted treasury and a | Dounced the action of the House in serious fiscal situation. mMmissioners have warned repeatedly that without additional revenue to meet the anticipated $6,000,000 budget deficit an increase in the real estate tax would be inevitable. It has been estimated a 60-cent rise in the levy | from $1.50 to $2.10 would be needed o offset the prospective shortage. The only other alternatives would be to have Congress, through recom- mendations of the conferees on the | 1938 appropriation bill, slash a suffi- “elent number of items from this meas- ure to preclude the deficit, or give the Commissioners authority to borrow “Federal funds until a tax program is “mpproved. The Senate Appropriations Committee already has turned down & proposal to permit the District to get advances from the Federal Treas- | The Com. | [Ailing to consider the bill “If this bill does not pass Congress by July 1” he warned, “you may force the District to operate with half a police force or fire department. The responsibility then will be squarely | upon your shoulders.” Attitude Held Inconsistent. Pointing out thav only two methods remain for meeting the $6,000,000 deficit—an increase in taxes or a higher Federal payment toward Dis- trict expenses, Nichols said: “You have said by your action today you don't want the citizens of the District to pay the taxes for the main- tenance of the city and at the same | time that you are willing to take | money that your constituents pay and | give to the District of Columbia.” Representative Thomason, Demo- ury on the theory it would preclude | crat of Texas, joined Nichols in his enactment of new tax legislation. Senate Proposal Made. A possible method of getting the | District revenue program started in | the Senate by adding it to the Federal nuisance tax bill was suggested by :ennmr Thomas, Democrat, of Okla- oma. Thomas, who has charge of the Dis- trict appropriation bill, emphasized that he has not decided to take that Course, but merely pointed out that he believed it could be done, from a parliamentary standpoint. The Sen- Bte cannot originate tax bills, but it €an amend House revenue measures. . Senator Thomas plans to proceed as ,Joon as possible with conferences to reach an agreement on House and “Benate differences in the supply bill, the final total of which will indicate Zthe amount the District will have to _Taise in new revenue. Under the iEouse bill the impending deficit is $$6.000,000. With Senate changes it “48 close to $7,500,000. 5 The revolt against the tax bill ®tarted soon after the House convened vyesterday and continued spasmodical- 3y throughout the day, even after its #eonsideration was blocked on the 227 +0 75 vote. The attack was directed Ut the income tax plan primarily be- scause of a fear that the levy would ~be placed on the $10,000 salary of members of Congress. =~ Representatives Smith of Virginia nd Dies of Texas, both Democrats, were largely responsible for prevent- «dng consideration of the bill. Both +Ppposed the provision that would tax ythe incomes of non-residents who ‘Work 1n the District. Representative Dirksen, Republ | protest. “It’s inexeusable that mem- | bers of Congress come here and take out $1 automabile license tags” he declared, “and then refuse to increase taxes on these cars.” The tax program not only called for an income tax, & motor vehicle weight tax, a business privilege tax, but an increase in the tax on net premium insurance receipts and an in- heritance and estates tax. Estimates of the amount of additional revenue it would raise ranged from $6,000,000 to $14,000,000. NUDE PROTEST FAILS NELSON, British Columbia, June 15 (#)—Two Doukhobor women were imprisoned yesterday after one dis- robed in the jail yard. The women were arrested during a brief demonstration outside the court room where Judge W. A. Nisbett had adjourned until Thursday a hearing of Peter Verigin the Younger's appeal from a Police Court conviction for reckless driving. The woman slipped into the pro- vincial jail yard, threw off her shawl and dropped her dress. She was hustled back into her clothing by po- lice. Allens Foot:Ease SRAXE IT INTO YOUR SHOES Makes new or tight shoes feel easy. Boothes tender, swollen, ‘aching feet and stops the pain of ‘ctns, bunions sod ealuves. Free Sample and Walking Doll, \dress Crippled Veteran Is Found as Wife Takes Same Train Luck rode with Mrs. Steve Apergis when she boarded a train for Cleve- {land in search of her husband, a legless World War veteran, who left their home at 1212 K street Sunday with $1,900 in cash and without say- ing good-by. She met her husband riding the same train at Harrisburg, Pa., and they continued the journey to Cleve- land together, she informed local police, whom she had enlisted in the search. When Mrs. Apergis returned from church Sunday to find her husband gone with the family cash, she feared he had been duped in his hopeless quest for a cure to the strange malady that has cost him his legs and pos- sibly had met with foul play. Police discovered, however, that he | rode alone in a taxicab to Union Sta- tion. There a porter recalled that a man answering Apergis' description had boarded a train for Cleveland Sunday afternoon. Mrs. Apergis started for the Ohio city Sunday | night in the hope she might find her husband among old friends ‘there. Then luck stepped in. Apergis | stopped off in Baltimore a few hours and it s0 happened that the couple rode on the same train from Balti- more to Harrisburg. Their presence was unknown to each other until they met by chance at Harrisburg. RODEO STEERS SCARCE GILLETTE, Wyo. (#).—The Gillette American Legion Post found wild steers scarce when it sought, as in past years, to borrow some for its 4th of July rodeo. The fact a steer loses about 20 pounds a day during a rodeo might ex- plain the reluctance of ranchers to lend their animals, one Ilegionnaire said. | Anyway, there'll be wild steers at the show. The legionnaires bought a car- Superbly matched BRIDAL RINGS artistically styled in the modern manner. Avail- able in either white or yellow 14-kt. gold. 5.Genuine dia- monds in Wedding ring— Beautiful 3-diamond Engage- ment ring. COLORED PERSONS FINISH COURSES Nearly 200 Awarded Eighth Grade Certificates at Armstrong High. Eighth grade certificates were awarded more than 170 colored men and women between the ages of 25 and 45 at graduation exercises last night of the District elementary night schools at Armstrong High School, In delivering the commencement address, Dr. J. Hayden Johnson of the Board of Education, told the group not to waste time seeking apologies for ignorance where it exists but rather to face the facts and reach every day toward greater accomplishment. Certificates were presented by Gratz E. Dunkum, another member of the School Board, and Dr. Gamet C. Wilkinson, first assistant superintend- ent of schools, presided. The follow- ing received certificates: Armstrong Graduates. Ashton. William A. Jackson, Marian Blackwell. Lucius Midgett. Ruby L. Rozier. Preddie W. Rogers, Mary Travis scoe. Anne Tate, Roy Agee. Mildred ussell, Carrie M. Bazemore. Augustine Seabrooks. Minnie Clark. Maxine Rae 8priggs, Rosa Belle Hamiiton, Helen Ann White, Flora Bell Jackson. Georgianna Franels Graduates. Hagar. Busie Thomas. Anna B Hester. James Brooks. Magdalene Purceli. John Green. Annie Thomas, Felton Jackson, Frances Thomas Rayfield Johnson Elizabeth Wilson. Rudolph Lee. Bertha Fox. George Laws. Annle Duffin. Shirley Pagan. Annie Knight. Bertha Neal. Madaline Montgomery, H. Peter. Edmonia Smith, Helen Parker. Margaret Garnet-Patterson Graduates. Dees. Lemuel Miles, Willlam Harkum. Ernest Robinson. Cassell Taliaferro, James dic. Murphy Qook. Virginia Earle. Ola Pitch. Katharine Flood. Hattie Butler, Arthur Dade. ‘Alfred Graham. Raymond Leatherwood. T. Lindsey_ Daniel Green,” Elizabeth Green’ Pearl Handy. Joezell Hudson, Amelia Jeftries. Dorothy Johns: Jackson. Fannie E. Foreman William Moere. William Nickens, Leroy Arnold. James Moten,” William Brown. Gilbert uth Gabriel. Benjamin Pearls . Tohn Fdna Jackson, Bowles. Morse, Carrie Butler, Beatrice Carter. Eligabeth Evelyn Pranklin ' Henrietta Prev. Pearl White, Howard Artis.” Estelle Pord. Lola Hamilton. Margaret King. Alice Martin, Bertha Mae Moore. ' Imogene e Jackson. Gladys Johnson. Rachel Wheaton. Elien Burt. Mary Dixon. Annabelle Flliott. Learma Jackson. Addie Brown. Ruth Kleanor Carter. Alice A Carter. Elisabeth B. Duncan. Juanita Jackson, Marinda B. Mullen. Sarah F. Robinson Emma M. Rucker. Ruby M. Denmark. B. E Montague_ Frances Adeline A, Prather. Edna Rickenbarker. H. Roland. Jean Skinner. Clarice Thompson. Ethel Vaughn. Beatrice Wilson. Alberta Leveloy Chandler. Wilmot Clark. Joseph W Gadson. Elijah Step Blakeney. Florence Jackson. Jenniie Miles, Juanita Randall Graduates. Carr. Mary E. Bundy. Mary E Thomas~ Rebecca hn Jackson, Dora Marie Jackson, Wiiliams Robinson Pearl M. Williams, Fannte Washington, H. E. Graduates. McGee. Beulah Pave. Minnie Scott. Mattie Lena Thompson. Annie E. Wood, Lauretta EE Fannle E. COLORED MAN DROWNED Robert Jordon, 50, Falls Into Channel From Wharf. Robert Jordon, 50, colored, drowned early today when he fell into the Washington Channel while fishing from the Munieipal Fish Wharf, His | body was recovered by harbor precinct | police. Witnesses told police Jordon lost his balance while adjusting his fish lines and toppled backwards into the water, He could not swim. PONTIA Sixes & Eights IMMEDIATE WE NEED USED CARS Flood Motor Co. Direet Factory Dealer 422) Connecticut Ave. Clev. 8400 8-DIAMOND ENGAGEMENT SET Regular $45 Value $39.85 WASHINGTON, D. C, TUESDAY, JUNE 15, 1837. Cycling Southerners Here ... Harold Hollingsworth, 15, and his cousin Dizon, 16, of Geor. gia, being received by William Harris, secretary to Representa- tive Hugh Peterson of Georgia, at the Capital, yesterday, after a bicycle trip of 657 miles to the Capital. left Georgia at 6 a.m. June 7, and averaged about 90 miles a day. They are the duests of Representative Peterson. MURDER SUSPECT IS ADJUDGED SANE Alonzo Turner to Go on Trial With Elmer Fulk in Slaying of Mrs. Mary Maier. In a sanity hearing preliminary to trial for murder and criminal assault & District Court jury late yesterday adjudged Alonzo Turner, 33, of sound mind. As a result of the verdict, he is expected to go on trial next week with Elmer Fulk, 39, for the slaying June 6, last year of Mrs. Mary Maler, 36, of 628 Independence avenue south- west. Both men are charged with first- degree murder and criminal assault Mrs. Mafer was killed with a Atick allegedly after having been crim- inally assaulted in a woodshed to the rear of 626 Independence avenue, ‘Turner's attorney, Josiah Lyman, requested the inquiry into his sanity. PLUMBING FIXTURES COST NO MORE THAN OTHERS Pour feet square yet it provides full-size bathing end convenient seats In two opposite comers. Ez back in the roomy, full-size tub ... sit The two lads —Star Staff Photo. Despite the adjudication that he is sane at present, insanity is expected to be his defense when he goes on trial. The proceedings yesterday were concerned only with his present state of mind, rather than at the time of the crime. Assistant United States Attorney Cecil Heflin will prosecute the case against both men. The exact date fo: trial has not been set. STRIKE THREATENED Street Car Men's Union Objects to Warrant Pay. SEATTLE, June 15 (#).—The Execu- tive Board of the Street Car Men's Union announced today its members would discontinue working on the municipally-owned system unless paid in cash instead of warrants which banks refuse to accept. Rallway Supt. A. E. Pierce began impounding re- ceipts a week ago to pay bond install- ments, REBEL LODGES PLAN MEETING ONC. 1. 0 Revolting Federal Unions Work- ing Out Problems of Affiliation. ‘With conferences started with offi- cials of the Committee for Industrial Organization on the question of af- liation, the seven “rebel” lodges under suspension from the American Federa- tion of Government Employes will meet tomorrow night at the Hamilton Hotel to plan further action. Representatives of the seven met yesterday afternoon with C. 1. O spokesmen at the offices of John L.| Lewis in the Tower Building, but the only statement forthcoming was that agreement had been reached on “lots of points,” and that some definite action could be expected shortly. Other conferences are anticipated. Lewis was not present at meeting. The gathering at the Hamilton will bring the lodge membership together for the firat time since the suspension was upheld Saturday by a committee from the Executive Council of the Pederation, which also voted to recommend to the council that the seven be expelled at the annual con- vention in Philadelphia, in September. the ‘Woman Robbed of Rings. Miss Anne Beth Harris, 1527 I sireet, | was robbed of her purse containing two rings worth $30 early today, she told police. According to Miss Harris a youth about 18 years old leveled a gun at her in front of her home and forced Rival Fisherman Serving in Senate In Garner’s Chair Pittman Hopes to “Outs angle” Vice President During His Absence. By the Associated Press. When Vice President Garner “ad- Jjourned” for a bit of fishing in Texas | streams he left his job here to a | slender, dignified man in white linen | who hopes to rival Garner's catch. Senator Pittman, Democrat, of Ne- vada, officiating as president of the | Senate in Garner's absence, will try | for blue fish and croakers on week | ends at the secluded Jefferson Islands | Club not far from the Capital. Pittman sat cross-legged on the rostrum yesterday thoughtfully turn- ing a pair of horn-rimmed glasses between thumb and forefinger during debate, meditating on how much help Majority Leader Robinson would be with rod and reel. Robinson is president of the club and 1s expected to be Pittman's first fishing partner this season. Pittman is chairman of the club's board. Pres= ident Roosevelt and Speaker Bank- head, also members, may lend a hand toward the piscatorial undoing of Garner. Founded by “friends of the Presi- dent.” the club is & Summer retreat for Democratic leaders, situated on an uninhabited 20-acre island about 4 miles from the Eastern Shore of Chesapeake Bay. It is one and one= Berlin has 14 per cent more motor | cycles than a year ago. half hours’ sailing time from Annapo= her to give him her purse. - lis. Marija Jankovitch. aged 63, who| gave birth to a aaughter at Novil Pasar, Yugosls South Africa has many radio pro= has a son aged 38. grams in German OK FOR THE GOLD CLOCK s A WEEK FOR ONLY YOU CAN OWN A ROYAL PORTABLE Model Here $54.50 With Touch Control Royal has the greatest feature on portables today—TOUCH CONTROL! . .. It adapts the key-tension constantly to every- one’s finger pressure, Air Cooled! YOU'LL LIKE THE “Standard” NEO-ANGLE BATH tell you the cost, arrange time payments when desired, help you plan that new bathroom, recommend the fixtures and furnish the skilled workmanship so necessary to health protection, “Standard” Distributors are displaying & wide variety of “Standard” Plumbing Fix- tures in white and colors. Visit the nearest showroom listed below. 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