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WEATHER. (U. 8. Weather Bureau Porecast.) Showers tonight; tomorrow fair and not much change in temperature; mod- erate to fresh southwest shifting to west winds. Temperatures today—Highest, 86, at 1 p.m.; lowest, 71, at 5a.m.; 82at 2p.m. 'S The only evening paper in Washington witg ghe Associated Press News - @he Foen Closing N.Y. Markets—Sales—Page 14 TURDAY" SUNDAY'S 85th YEAR. No. 34,0 Zero Hour Is Tomorrow at 7 AM. WARREN FACES| HUGE WALKOUT Response of Union to Injunction on Pickets. BACKGROUND— John L. Lewis' campaign for unionization of steel labor under Committee for Industrial Organi- 2ation opened mearly two months ago, having as immediate result signature of collective bargaining agreements with a number of com- panies, large and small. Several independents, led by Republic Stecl, Bethlehem and Youngstown Sheet & Tube, refused to sign such agreements and Lewis called strike. Companies have at- tempted to keep operating with forces housed and fed within their plants to evade the activities of pickets. BULLETIN. CLEVELAND, June 21 (®).— Tom Girdler, chairman of Republic Steel Corp., today urged the Fed- eral Steel Mediation Board to make a full study of the steel strike “and report the facts to the public.” Br the Associated Press. CLEVELAND, June 21.— “Little| Bteel” issued defiant “back-to-work” marching orders today. With the zero hour sy\' steel ex- ecutives for 7 am. tomorrow, involv- ing about 24,000 men in the strike- ravaged Youngstown area, mediators strove desperately in Cleve- land to effect a settlement. Meanwhile, at Warren, Ohio. picket | lines began to mass in fast-thickening formation around the Republic Steel Corp. plant as threats of a general | througn | strike rumbled ominously that community of 40,000. The back-to-work challenge, nounced jointly president of Youngstown Sheet & Tube, and by Republic Steel, drew a swift counter-challenge. S O S Will Be Sent Out. “As soon as somebody goes in those plants,” said John Mayo, Youngstown director of the Steel Workers' Organiz- 1ng Committee, “the § O S will go out &nd there will be trouble. “There will be so many men (strikers) down there they won't go in. “We can bring in outside men, you know.” The Warren general strike threat developed immediately after Judge Lynn B. Griffith, in a court room crowded with grim strikers, granted the Republic Steel Corp. an injunction restraining the activities of strike pickets. “If a gencral strike is called, it will be done quickly and without advance notice,” said John McKeown, C, I. O. organizer at Warren. In defiance of the court order is- gued by Judge Griffith, the lines at Warren increased instead of dwindled as ordered. Will Take Necessary Measures. The strike executive committee, headed by McKeown, announced that despite the court order “we must take | all necessary measures to protect our fundamental rights.” Between 10,000 and 15,000 members | of organized labor were involved in the threat on a general strike. | John L. Lewis, the C. I. O. strike | generalissimo, stalked silent from the ! Federal Mediation Board conference after an hour an a half of discussion on the moot question of signed labor | contracts—the prime matter of dis- pute in the seven-State “batitle of steel” which has set more than 100,000 | men idle in the Great Lakes region. | Attending the conference with Lewis were Less Pressman, C. L. O. counsel; John Owens, Ohio C. I O. director; David McDonald, Steel Workers' Organizing Committee sec- retary-treasurer, and Van A. Bittner, 8. W. O. C. director. Unionists Are Silent. ‘The unionists refused to make any comment on the course of the medi- ation or the announcement by Re- public and Youngstown Sheet & Tube that they would attempt to reopen plants tomorrow. The Mediation Board, headed by (See STEEL, Page A-4.) SUMMER BEGINS TODAY; SHOWERS ARE EXPECTED an- Fair Skies Due Tomorrow With Little Change in Tem- perature. Summer begins officially at 3:12 today, when the sun arrives over the ‘Tropic of Cancer, but you won't be able to tell the difference, so far as local weather is concerned. The timing of the seasons by the sun’'s movements has only a general— and no particular—noticeable effect on the weather, officials at the Weather Bureau explained. Summer has been here, for all practical purposes, dur- ing the last month of hot weather, one official remarked jocularly. The forecast calls for weather con- ditions similar to those thét have prevailed here for several days. Showers are indicated for this after- noon and tonight, and fair skies to- morrow, with little change in tem- perature. A maximum temperature of 85 degrees, just 2 above yesterday's high, was expected this afternoon. a [J Federal | by Frank Purnell, | | Among his first Entered as second class matter post office, Washington, D. C. 19. w | By the Assoctated Press. VANCOUVER, Wash,, June 21.— The transpolar flight that carried | three Russian airmen over the top | of the world from Moscow opened a new air lane to tomorrow's prosaic commerce, the daring trio said today as they rested here at the end of their epochal adventure. Only 592 miles short of their goal at Oakland, Calif, the fiyers set their huge-winged monoplane down here at 8:22 a.m. yesterday (11:22 a.m., Eastern standard time) after 63 hours and 17 minutes of hazardous flight from the other side of the earth. A guard was quickly thrown about the plane. The flyers took off from Moscow at 8:05 p.m., Eastern stand- ard time, Thursday, with 6,000 miles | between them and their objective, a large part of it over impossible landing territory that no white man had ever seen before. Their actual flight was about 5300 miles. Victors over serfous weather diffi- culties above the barren Polar regions, and over nightmarish navigating con- ditions where meridians of longitude converge and compasses lie, they were cheated of full triumph by low visi- bility after reaching comparative safety. Obviously worn from their ordeal, but reporting themselves in good con- dition, the three men of iron rose after a few hours sleep to participate last night in a celebration broadcast, during which Russian Ambassador Alexander Troyanovsky acted as in- terpreter. Earlier the Ambassador had said the flight proved the feasi- (See FLYERS, Page A-3) "Chaulemps Seeks Prede- cessor’s Aid— Guards Posted About Senate. | BACKGROUND— Leon Blum, who took office more than year ago as premier of France as result of Popular Front victory at the polls in May elections, re- signed yesterday. Government has been occupied under his regime with program of social and eco- nomic reform in France. Blum cabinet has been friendly toward the Spanish loyalists and led the movement for establish- ment of the Non-Intervention Committee of the powers in the Spanish civil war. By the Associated Press. | temps, Radical Socialist ex-premier, | who is attempting to form a new People’s Front cabinet, today offered a portfolio to Leon Blum, the outgoing | prime minister. 4 The Socialist Blum, whose govern- ment fell early today, withheld his decion. It was indicated it would | be delayed until a meeting of the | Socialist National Council tomorrow. | Truckloads of mobile guards rum- bled through the streets as Chautemps sounded out leaders of various fac- tions, particularly the Socialists. Their | participation in the cabinet seemed | to depend on agreement on a financial | program. BLUM IS OFFERED MINE OWNER'SSON POST IN CABINET 15 HELD FOR TRIAL | PARIS, June 21.—Camille Chau- | mitting perjury last April 18 before the Ted Creech of Harlan Is In- dicted for Testimony to Probers, BACKGROUND— Ted Creech was arrested dra- matteally April 21 outside Semate Office Building after Senator La Follette had made him uneasy by telling him the Civil Liberties Com- mittee had no further need of his testimony. Creech had been given the lie by another witness bejore the committee, which was then investigating conditions in the coal mining country of “bloody” Harlan County, Ky. He has been free on bail since April 22. An indictment_charllng Ted Creech, husky 35-year-old son of a Harlan County, Ky., mine owner,” with com- Senate Civil Liberties Committee, was returned today by the District grand jury. Creech was arrested several days ! after the incident at the Senate Office Building, following reference of the | affair to United States Attorney Leslie | C. Garnett by the committee. He is ASHINGTON, STEEL SHOWDOWN NEAR AS FIRMS DEFY STRIKERS WITH PLANT REOPENING TPolar Plane to Be Dismantled As Flyers Receive Wide Praise, ‘ Craft Under Military Guard at Van- couver—Soviet Aviators Regret Land- ing 592 Miles Short of Their Goal. now at liberty under $2,000 bail. The charge is based on testimony | given by Creech concerning a conver- ! sation he had with Richard C. Tackett, another witness, during the noon re- | cess. In the course of the conversa- tion he is alleged to have threatened | i to see that Tackett was sent to jail | for 8 or 10 years on his return to! WITH SUNDAY MORNING EDI‘HONg D. C, MONDAY, THOUSANDS LEAVE AS NAZIS DISSOLVE CATHOLIC SCHOOLS Order Making Them Secular Institutions Follows Ba- varian _Election. UNFAIRNESS CHARGED IN POLL OF PARENTS Priests Removed as Teachers in 966 Church Schools in One Sector of State. BACKGROUND— Nazi regime, after four years of control of Germany, finds itself in growing conflict with church over determination of destinies of the German people. Anti-semitism has been a basic tenet of Naziism; the struggle with the Roman Cath- olic Church has long persisted, and Protestantism has suffered drastic restrictions. Evidence of growing Catholic hostility to Nazi rule has come forward in increasing measure in recent months. B the Associated Press. MUNICH, Germany, June 21.— Hundreds of thousands of Catholie school children quit their parochial achools all over predominantly-Catho- lic Bavaria today in obedience to a Nazi government order which dissolved the schools and made them secular in- stitutiors. In Munich and Upper Babaria alone, the decree converted 966 confessional schools into secular institutions. Only 100 secular schools had existed here- tofore in this area. Authorities insisted they closed the Catholic schools “with the parents' consent.” Elections Held in Districts. This is the way it happened: Elections, in which parents were asked to choose between parochial | and secular schools, were heid in various provincial districts. Such elections have been held recently in other parts of Germany and have resulted in the secularization of schools. The Bavarian result, the authorities announced, showed from 95 to 99 per cent in favor of secular schools. But Catholics have contend- ed the elections were unfairly and hastily conducted, and that parents in many cases did not have a chance to vote their real sentiment. The mayors and district leaders in Bavaria compiled the election figures and presented them to the state gov- ernment. The abolition of the paro- chial or confessional schools was tie | result throughout Bavaria. Adolf Wagner, minister of interior of Bavaria, signed the decree replacing 670 clerical teachers with laymen. Wagner outlined his sweeping move, affecting thousands of children, to 12,- 000 Nazi political leaders last night at Garmish. The secularization, he declared, had been done Saturday at the joint re- | quest of all the mayors of Upper | Bavarian towns. Proud of Triumph, “I'm proud of this triumph in my province, which is overwhelmingly Catholic and one of the-oldest Nazi Steel-helmeted guards deployed in|Kentucky for testifying against the | strongholds,” the interior minister told | front of the 3enate to prevent any demonstration against the body that | overthrew Seccialist Premier Leon | Blum and his People’s Front govern- ment yesterday by refusing to grant decree powers to deal with the finan- cial crisis. Acting with significant speed, President Albert Lebrun summoned the Radical Socialist Chautemps to the Elysee Palace before dawn and designated him to form a new gov- ernment. Chautemps, secretary of state in the retiring cabinet, immediately be- gan a round of conferences with party leaders to determine what sup- port he could glean for a cabinet probably uniting the same Leftist ele- ments that supported Blum. conferee§ Wwas Joseph Caillaux, head of the Senate Finance Committee, who led the fight against Blum's decree demands, from whom he apparently sought to deter- mine if there is a possibility of a new cabinet obtaining decree powers to deal with a rapidly emptying treasury. Chautemps said his visit to Caillaux would not ‘“surprise anybody after what happened last night.” He pre- viously had seen Blum. “I saw my predecessor, who may also be my successor,” he said. His success or failure seemed to hinge on whether he gained the participation, or, at least, the support, of he Socialists. NAVY PLANES POISED FOR 3,000-MILE HOP Dozen Twin-Motored Ships Will Take-Off Today for Coco Solo, Canal Zone. By the Associated Press. SAN DIEGO, Calif., June 21.—A dozen twin-motored Navy patrol planes Ppoised ready to take off today on the longest mass non-stop flight in United States naval history. ‘The sHips, carrying 16 officers and 56 enlisted men, were routed for Coco Solo, Ganal Zone, 3,000 miles away. The flight was described as merely “routine” delivery of the new ships, constructed here. These latest additions to the Navy's air armada have wing spreads of 104 feet. Navy authorities have guarded all details with customary secrecy. The route for the trip, set to begin sometime today, 1s almost entirely over water—down the coast of Mexico America, and Central \ mine owners. | Two days before, Tackett had ad- | mitted that he and others were em- | ployed by an association of coal mine | operators and owners in Harlan Coun- ty to intimidate United Mine Work- ers of America members and organ- | (See HARLAN, Page A-4) 3 DIE IN PLANE CRASH Names of Victims in Ontario Not Learned. GRANTON, Ontario, June 21 (Cana- | dian Press).—Three men were killed | near here today when their airplane fell from 1,000 feet and crashed. Their names could not be learned im- mediately. Granton is about 130 miles west of Buffalo, N. Y. Summary of Page. Amusements B-16 Comics _.B-14-15 Editorials A-6 Financisl __+A-13 Lost & Found B-11 Obituary __._ A-8 FOREIGN. Blum is tendered cabinet portfolio by Chautemps Page A-1 Mobile guards protect Paris in cab- inet crisis. Page A-1 Amelia Earhart sets plane down in Java. Page A-2 Bilbao-Santander road littered with refugee dead. Page A-1 Page. Short Story...B-5 Society B-3 Sports . A-9-10-11 ‘Woman's Pg. B-10 NATIONAL. Mystery shrouds slaying of woman found under house. Page A-16 Soviet fiyers land 592 miles short of goal. Page A-1 Steel firms defy strikers to reopen Youngstown plants. Page A-1 Roosevelt asks budget reductions for 1939 fiscal year. Page A-2 TFreight rate differentials hit at wage- hour bill hearing. Page A-2 Robinson relief stand puzzling; vote expected today. Page A-2 Four lose lives as violent storm sweeps Michigan, Page A-2 Roosevelt, afflicted . with cold, stays away from office. Page A-2 WASHINGTON AND NEARBY. Police kill “black-face gangster,” cap- ture companion. Page B-1 Effects of 5-cent faré to he studied by commission. Page B-1 ‘Winfleld acquitted on traffic ticket charges : { Page B-1 » the district party meeting. He emphatically denied the dissolu- tion of the Catholic schools violated the concordat between the Nazis and the Vatican, which, in part, guaran- teed the continued operation of the Catholic institutions. He declared that his decision was well within the law as no public schools were affected. “‘Conventual schools are private,” he declared, “and have held permission to { teach from the state only, permission i Which could be withdrawn at any time.” One reason for the quick decision, he added, was the prevalence of im- morality cases in the schools. The ban was declared to have fallen on schools operated by the orders of Marists, Pallatines, Augustines, Eremites and Brethern of the Christian School for that reason in particular. Today’s Star EDITORIALS AND COMMENT. Editorials, Page This and That. Page Washington Observations. Page Answers to Questions. Page David Lawrence. Page H. R. Baulkhage. Page Dorothy Thompson. Page Constantine Brown. Page Headline Folk. Page SPORTS. Braddock picked by Jack Dempsey to retain title. Page A-9 Betting' meager on eve of heavy title battle. g Page A-9 Willing feathers promise hot ring duel here tonight. Page A-9 Sington, Mihalic prove big aid to crip- pled Nats. Page A-10 Cards, Bosox stay hot as Giants go into skid. Page A-10 New boy. junior city net champs to be crowned. Page A-11 Astor Clarke noses out Tronsky as top U. S. duckpinner. Page A-12 Mid-Atlantic this week ends D. C. tourney gold. Page A-12 FINANCIAL. Corporate bonds down (table). Steel production lags. A-13 Pepco output gains. A-14 Stocks improve after drop (table). A-14 Curb list uneven (table). A-15 Dry goods gains smaller. A-15 MISCELLANY. Shipping News. City News in Brief. Young Washington. Dorothy Dix. Betsy Casweld. Winning Contract. Nature's Children. Cross-word Puzzle. Bedtime Stories. PRI GdbGdbhaansa A-13 Page A-16 JUN E 21, 1937—THIRTY-TWO PAGES. Stap | * %ok ation, T * MAYRE A LITTLE SIcK STOMACH! — Jicecn e A_i’f; REBEL FIRE FELLS BILBAD REFUGEES {Planes Spray Machine Gun Bullets on Santander Highway. Bs the Assoclated Press. CASTRO-URDIALES, Spain, June 21.—Exposed to ceaseless shelling from the sea and bombing from the air, the tattered remnants of the Basque Army intrenched themselves in the Gal- dames Mountains today for a fight to save Santander from the fate of | Bilbao, their lost capital. Insurgents crove them from Bilbao Saturday. the west. The Basques consolidated their weary forces in the hills which par- allel the highway about a third of the way from Bilbao to this city, which is 30 miles from Bilbao on the Bay of Biscay. Without sleep for five days and without food for almost as long. the Basque Army was hampered by thou- sands of refugees, who plodded along the road from the conquered capital. Ships Shell Road. ‘The insurgent warships Almirante Cervera and Velasco hurled shell after shell onto the refugee-packed San- tander road. A fleet of insurgent planes—esti- mated to number 100—sprayed the highway with machine gun bullets. The road presented a ghastly spec- tacle. It was littered in spots with dead and dying women and children. At other points there were dead mules and cattle and smashed wagons and automobiles. ent's automobile was struck by a shell splinter while he was taking this dispatch to a boat for relay by way of Bayonne, Prance. All available ships in the Nervion Estuary had been filled with refugees before the capture of Bilbao. Several of the ships, including the barge Go- bela, with hundreds on board, were believed sunk by insurgent shells. The Basque committee in charge of | defense stated commanders were con- fident they could stem the insurgent advance, but warned that the situa- tion would be desperate if food, medi- cines and anti-typhoid serums are not received quickly. The Basque Gen. Ullivarri directed construction of fortifications. He was in radio-telephonic contact with the central government commander, Jose Miaja, at Madrid. Mine Wrecks Hideout. MADRID, June 21 (#).—A huge gov- ernment mine exploded today in sub- urban University City, where 3,000 Spanish insurgent troops have re- sisted siege for three months. Government Gen. Jose Miaja an- nounced the explosion “split in half” the University City Clinical Hospital, insurgent hideout. The blast was heard all over Madrid, Immediately after the explosion both government and insurgent troops engaged in heavy fire, whickr died down as the morning wore on. In- surgents continued to hold the wrecked hospital building, but government offi- greatly weakened. Dispatches from the Bilbao front said Basque forces driven out of Bilbao had entrenched themselves 3 miles west ot the city for a new stand against insurgents. New lines of resistance were being organized outside the city by the government troop: to bar the insurgent advance toward Santander and the Province of Asturias. Officials here described the retreat as “orderly” and said “the posts previously prepared west of Bilbao” were being occupied, while several units of Basque troops were still op- erating south of the city. Santander Drive Sped. BILBAO, Spain, June 21 (#).—Im- provised. footbridges were thrown across the River Nervion today to speed the movement of the main body of Generalissimo Francisco Franco’s victorious insurgent army against Santander, last stronghold of the Basques. A line of advance guards was pushed out about six miles west of Bilbao, conquered Saturday in a whirl- wind elimax to a three-month siege. (Reports from Santander denied that Bilbao had been totally occupied by the insurgents and declared the Basques. were grimly disputing the crossing of the Nervion.) Santander 15 45 miles to The Associated Press oorrespond-! cers said their position had been | Crisis of Crown || Puts $1,250,000 || In British Till | Sum Given Anony- mously as Tribute to Baldwin. B the Associated Press. LONDON, June 21.—An anonymous donor has given £250.000 ($1,250,000) to the empire as a tribute to the way | Stanley Baldwin handled the abdica- tion crisis, it was disclosed in Commons lobbies today. | The donor said he wanted to make |a “thanks offering” for the former | prime minister’s “courageous, far- seeing and sympathetic handling of a supremely difficult situation, which | averted incalculable dangers for the | empire.” 5 | The money was placed at the dis- | posal of the premier's office for the | ipurpme of “endowing any object best | calculated to strengthen still further” | the ties that bind the empire. | As Prime Minister Baldwin, now Earl Baldwin. accepted the gift, in- | dependent trustees will administer the | | money as an imperial trust. | FEeIEEi e TROLLEY BANDITS FLEE WITH $13,000 [D. C. Bridges Guarded After Street Car Hold-Up in Richmond. | By the Associated Press. RICHMOND, June 21.—Four armed bandits held up a street car motorman | and two Virginia Electric Power Co. | cashiers shortly before noon today in | the West End section of the city and | escaped with $12,806.23, the company | reperted. Officials said the bandits aiso took | checks totaling $66.11, but left five | | money bags containing $2,300 in small | change as they fled from the street car, | which cashiers were taking Saturday | and Sunday 1eceipts to a bank. Washington police were asked by | Richmond authorities to watch out | for a sedan with five armed men, who | | staged the robbery. | The bandits, police were told, are | armed either with machine guns or sawed-off shotguns. | The fourth and seventh precincts | were ordered to pay close attention to traffic at bridges. EASY U. S. LOANS URGED | FOR SMALL BUSINESS Massachusetts Governor Says, “We Might as Well Go in It the Whole Way.” %5 the Associated Press. BOSTON, June 21.—Gov. Charles F. Hurley today urged immediate lib- eralization of governmental credit policies to enable loans to small busi- ness. < Speaking at the fortieth annual convention of the National Associa- tion of Retail Grocers, which opened here today, Hurley declared: “We are in this thing half way, the Govern- ment having loaned $4,000,000,000 to the banks, and we might as well go in it the whole way and take complete control of the credit facilities of the country.” Senator Royal S. Copeland, Demo- crat, of New York, scheduled for an address, sent word he would be unable to appear. Recounted at BY THOMAS R. HENRY, A first step toward conquering the’ curse of fatness, the cause of which has baffled medical science, was an- nounced before the American Asso- ciation for the Advancement of Sci- ence meeting in Denver, Colo., by Drs. Eaton M. Mackay and Richard H. Barnes of the Scripps Institution of La Jalla, Calif. By large injections of a new form of insulin preparation—the so-called protamine insulin—they produced abnormal appetites in white rats and *.made these ally slender and Y SLAUGHTER HOUSE HELD HOUSING BAR {Company Officer Declares Low-Cost Project May Be Abandoned. BACKGROUND— Protest against proposed new slaughter house in Benning area arose last Fall following request for building permit. At first re- fused, permit application was granted when company revised specifications to conform to reg- ulations. King-Norton bill to regulate nui- sance industries, including pro- posed slaughter house, received much support in Senate hearings and was reported favorably by House District Committee, but ob- jections tha. tiere had been no hearings in House led to recom- mitment. BY NELSON M. SHEPARD. Erection of a slaughter house in the Benning area would prevent the devel- opment of a $2.000,000 low-cost hous- ing project in the immediate vicinity, the House District Committee was told | today. This statement came from Myron Davy, vice president and general man- ager of a newly organized company, as the District Committee opened hearings on the amended Norton bill banning nuisance industries in Wash- | ington. District and Federal park offi- cials had previously testified in sup- port of the legislation. Davy read a letter from the Federal Housing Administration which said in- surance for the proposed housing de- velopment would be denied if a slaugh- terhouse is erected nearby. The National Insure@ Homes Corp., he said, had just applied to F. H. A. for apprcval of an insured loan. The answer came this morning, he told the committee. Homes Held More Important. The company had bought its land | about 300 yards from the site of Adolf Gobel's proposed slaughter house last | March. Davy was given “unofficial” assurances then, he said. that the packing plant would never be erected. Last April, however, the Commis- sioners were compelled to issue a building permit to the Gobel com- pany. “We are not asking protection for (See SLAUGHTER HOUSE, Page A-4.) TWO RARE BOOKS SOLD Philadelphians Purchasers at Sotheby's in London. LONDON, June 21 (#).—Two Phila- delphians bought two of the world's rarest books at Sotheby's today. A volume of the famous Gutenberg Bible was sold to Philip Rosenbach for £8,000 (approximately $40,000). Gabriel Wells purchased a first folio Shakespeare from the Clumber Li- brary for £5.600 (approximately $28,000). Rosenbach also bought a Boccaccio vellum of 1494 for £1,800 (approximately $9,000). QUEZON BOOMED Declared to Be Choice for Second Term. MANILA, P. I, June 21 (#).—The daily newspaper La Vanguardia said today a move was afoot to make Presi- dent Manuel Quezon of the Philippine Commonwealth eligible for a second term. A constitutional amendment would be necessary. Quezon began his six-year term No- vember 15, 1935. First Step in Cure of Fatness Science Session agile animals so fat that they barely could crawl and couldn’t turn over when laid on their backs. Until now ordinary corpulence has been confined largely to man and the pig. The kind of fatness due to a dfsease of the pituitary gland, a rare human malady, is something entirely different. All sorts of efforts to pro- duce the former condition, which now appears to be a definite disease—if the findings with rats prove ap- plicable to humans—have failed in animals. Dumb creatures wouldn't (See SCIENCE, Page A-5.) 5 132,174 e returns not UP) Means Associated Press. Circulation, 147,390 yet received.) TWO CENTS. CAPPER 0PPOSES HIKE N D. . TAX ON REAL ESTATE Small Home Owner Could Not Pass Increase On, Senator Says. APARTMENT RENTS HERE TOO HIGH NOW, HE HOLDS Thinks Sales Levy Is Preferable. Careful Committee Consideration This Week Indicated. BACKGROUND— The involved and hastily con- ceived District taz bill was drafted to meet a threatened deficit rang- upward from $6,000,000. District residents, citing many inequities, have opposed measure. House subcommittee recommend- ed income tar, including levy on salaries of legislators, but when bill reached House floor, members refused to accept plan to tax them- selves, BY J. A. O'LEARY. Another section of the House tax bill came under fire today when Senator Capper, Republican, of Kansas, rank- | ing minority member of the District Committee, announced opposition to | the 20-cent increase in the tax rate | on real estate, Two other committee members— Chairman King and Senator Austin of Vermont—previously had viewed | the business privilege tax, with a flat rate of three-fifths of 1 per cent on gross receipts, as fraught with inequalities, Senator Lewis, Democrat, of Illi= nois, also a District Committee mem- ber, declared today the problem should | not be so much as to the form of new | taxation, but a question of how much Congress is going t. require District residents to pay in taxes toward the | support of the Capital City. | Senator Bridges, Republican, of New Hampshire, made known “e has re- ceived complaints, principally against | the gross receipts and chain store sece | tion, and some against the increase | on real estate. He predicted this part of the program would affect the cost of living. The New Hampshire Senator said | he has opposed the sales tax at home, | but on the ground that it would tend to drive business across the State line into adjacent areas. He also said he favors the principle of the income tax, | but is aware of the difficulty of enact- | ing it for Washington because of the | non-resident problem. He suggested | that a combination of the sales tax and income levy would be desirable, | but will await the hearings before making up his mind. Senator Reynolds, Democrat, of North Carolina said he plans to study the House program carefully and to follow closely the Senate hearings. Meanwhile, he withheld comment. | Although Senate committee mem-= bers are waiting for the hearings to be held later this week before de- ciding to advocate any specific sub= stitutes for the House sources of reve- nue, their preliminary comments in- dicate they plan to give the program as it now stands careful study. Probable Yield Estimated. Meanwhile, the Commissioners put their legal and budget-making staffs to work estimating the probable yield of the House schedules before mak- ing recommendations to the Senate committee. Chairman King will start hearings as soon as District Building officials have analyzed the measure. In opposing the increase on real estate from $1.50 to $1.70 on full- value assessments, Senator Capper pointed out the individual small home owner could not pass the increase on. With regard to those who live in apartment houses, Capper indicated he regards the level of rents as al- ready too high. Like several of his Senate colleagues, the Kansan regretted failure of the House to accept the income tax. The boost on real estate was adopted at the last minute to offset elimination of the income levy. Capper, however, said he wants to hear the testimony to be taken by the Senate before deciding whether he would favor restoration of the income tax. Other Senators who prefer the income tax have indicated they do not wish to insist on it if it will endanger passage of the bill, in view of the financial difficulties in which the city would find itself after July 1. Sales Tax Considered. Senator Capper sald he has op- posed the general sales tax in the past, but realized a number of States have turned to it. The Kansas Leg- islature adopted a sales tax at its last session and in Missouri a similar tax was increased recently. While he has reached no conclu- sions, the Senator indicated he thought the sales tax would be pref- erable to the increase on real estate. The Commissioners proposed a sales tax to the House originally, but it was turned down in committee. The in- come tax next was proposed, and when that met opposition the real estate increase of 20 cents—amount- ing to $1,200,000—was injected. There has been less discussion thus far among Senators of the other House proposals, including an increase in the net premium insurance tax, the addi- tion of a weight tax to the present personal property tax on motor vee hicles, the inheritance levy, and the chain store tax, which was added to the business privilege levy. While a gross receipts business tax is used in a number of other places, the local proposal is believed to be more far-reaching in its provisions by applying a flat rate to virtually all types of business, and with only a $1,000 exemption. It is probable the Senate commit- tee will seek to figure out the cost of administering the House proposals, since the added personnel and collec- tion machinery that may te required would be an offset against the new revenue to be raised. ) ~a