Evening Star Newspaper, June 23, 1937, Page 1

WEATHER. (D. 8. Weather Bureau Forecast.) Fair tomight; tomorrow fair, rising temperature; gentle north winds, becom- ing variable. Temperatures today—High= est, 78, at 2 p.m.; lowest, 61, at 5 a.m, Full report on page A-12 Closing N.Y. Markets—Sales—Page 18 &th YEAR. No. 34,021, Entered as second class matter post office, Washington, D. C. ch WASHINGTON, ‘'WRITS OUT FOR PICKETS AS CUMMINGS DEMANDS ‘MAIL MUST GO THROUGH’ 6 Are Accused of Hindering Deliveries. MISS PERKINS | SEESHEADWAY “Fine Progress” Is! Credited to Medi- ation Board. = BY REX COLLIER. Declaring “the mails must go through,” Attorney General Cummings today announced that Federal war- rants have been issued at Warren and ‘Youngstown, Ohio, charging six pickets with obstructing delivery of mail to ¥teel plants there. “The whole power of the Federal | Government,” Cummings told report- | ers at a press conference, “is behind the position that the mails must be delivered.” He declined to make public the hames of the pickets or to disclose . Whether they were members of the C.1.0o. “It doesn't make any difference to me who these men are” the Attorney General said emphatically. “All that concerns me is the charges that they Interfered with United States mai Issued by Commissioner. Cummings said the warrants were obtained this morning by United States Attorney Emerich B. Freed of Cleveland, who swore to the papers before a United States commissioner. ¢ The warrants were turned over imme- diately to deputy marshals for service. Three of the alleged law violators are at Warren and three at Youngs- town, Cummings said. The incident on which the complaints were based | occurred within the last two or three days in the strike-torn area, The Attorney General disclosed he acted quickly after receiving definite complaints yesterday, and instructed Freed to learn the identity of the al- leged offenders and institute proceed- ATTORNEY GENERAL CUMMINGS. GROLERTOTESTIFY ONC. . 0. CHARGES Steel Executive to Appear Before Senate Group to Answer Murray. BACKGROUND— Alleged interference by strikers with attempted mail deliveries of food and clothing in strike-torn Ohio cities led to investigatiom by Senate Post Office Committee to determine facts of the case. Once under way. the committee decided to probe charges of violence in the Strike area as well as mail inter- Jerence. BY JOHN H. CLINE. ‘Tom Girdler, aggressive representa- tive of the independent steel execu- tives, will appear before the Senate Post Office Committee tomorrow to against him by organized labor. This will be the first time an ex- ings against them under the Federal | ° criminal statute The warrants charged violation of | the section of the code making it & criminal offense to “knowingly and deliberately” obstruct the passage of any person or vehicle carrying United | States mail. Penaity upon conviction | is imprisonment for not more than six | months or a fine of not more than $100, | or both. “Deliveries Must be Made.” Cummings, when questioned as to| whether there were any limitations on the kind of mail which must go through to the steel plant, said it 1s the Justice Department’s attitude that ny mail which the Post Office De- partment sees fit to deliver” must go | through unhampered. “Such deliveries must be mad Cummings said. “The mails must be delivered without interference under all eonditions.” Some hope for settlement of the| costly steel strike was put forth, mean- while, by Secretary Perkins, who said | “definite headway” had been made in peace negotiations. | She refused to state the nature of | the progress that has been made, how- | ever, asserting a disclosure at this time might hamper negotiations. “Fine Progress” Reported. Miss Perkins said the Federal Me- | diation Board has made “fine prog- | considering the “very definite | " taken by one of the parties. | She was referring to an announcement by Tom Girdler, chairman of the board of directors of Republic Steel Corp., that he would not sign a contract with | the C. 1. O. After Miss Per] had said labor leaders had made two concessions, she | was asked if Girdler had shown any signs of “flexibility.” “Flexibility is a very flexible word,” sghe replied. “I can't answer the question.” Miss Perkins indicated the progress she had reference to was in the di- rection of bringing the opposing parties together, not in inducing either side to “back down.” “But I feel sure,” she added, “that ¥ reasonable men can be brought to- gether in conference, a settlement can be worked out.” WARRANTS ISSUED IN AKRON. . | Postal Employes Describe Mail Inter- ference. AKRON, Ohio, June 23 (£).—War- rants for the arrest of six men eharged with obstructing the mails at Warren and Youngstown steel struck plants were issued today by United States Commissioner W. J. Taub. The warrants, signed by five postal employes who said they were pre- vented from making mail deliveries to steel struck plants were turned over 80 Assistant United States Marshal Robert G. Gawne, who left imme- diately for Warren and Youngstown to serve them. Taub said the names of the six men would not be announced until they ‘were arrested. The warrants charged that on June 12 Arthur Stocksteel and Paul Ricker, special delivery messengers at Youngs- town, were prevented from making deliveries at the Brier Hill plant of Youngstown Sheet & Tube Co. and at Stop 5 on Poland avenue, near the Brier Hill plant; on June 17 special delivery messenger, Bernard Leaf, was stopped at the Brier Hill plant; on May 28 a mail bag carried by Ezra Chadwick was opened and inspected at the Republic Steel Co. plant in Warren, and on the same date an- other Warren mail carrier, John ‘Wyndham, was haited by two men at the Republic plant. i now lockea in & bloody, paralyzing | strike with the C. I. O. has appeared | publicly to answer allegations that the corporations have imported hired thugs and stored huge quantities of guns, ammunition and gas in their strike-bound plants. Girdler, head of the Republic Steel was called an ‘“outlaw” Philip Murray, chairman of the Steel ‘Workers' Organizing Committee, - hen the C. I. O. labor leader appeared be- fore the committee last week. Mur- ray told the committee that Girdler, Eugene Grace, head of the Bethlehem Steel Corp, and executives of the Youngstown Sheet & Tube Co., and the Inland Steel Corp., had created a “reign of terror” in the strike area by { their “ruthless and willful defiance of law.” Right to Answer Granted. Girdler was summoned before the committee by Chairman McKellar at the insistence of Senators Bridges, Re- publican, of New Hampshire, and Bai- ley, Democrat, of North Carolina, who questioned the accuracy of Murray's | charges and said they believed the steel executive should be given an op- portunity to answer them. After hearing Girdler's testimony the committee, designated originally to probe charges of interference with mail deliveries by strikers, will look into the Memorial day fight between strikers and city police at the Republic mill in Chicago. Ten persons have (See MAIL, Page A-4) NON-AGGRESSION PACT IS PUSHED BY ENGLAND By the Associated Press. LONDON, June 23.—British Foreign Secretary Anthony Eden told Com- mons today that Great Britain will proceed with efforts for a non-ag- gression pact binding the powers bor- dering the Pacific Ocean. “Suitable opportunities for consult- ing those primarily concerned,” in- cluding Japan and the United States, will be taken on the suggestion of Premier J. A. Lyons of Australia, the secretary said. y The Lyons proposal “was approved in principle” by the recent imperial conference of Dominion representa- tives. - Canton Mayor Calls on Davey ' For Public Honesty By the Associated Press. CANTON, Ohio, June 23.—Mayor James Seccombe in a letter to Gov. Martin L. Davey. of Ohio today on steel strike violence wrote: “Has the time not come when we who hold public office, major or minor, should be honest with the public?” ‘The Mayor responded to & letter which the Governor said he sent to him last Saturday. The Ohio chief executive said unionists who were re- ported to have detained ngn-strikers at their headquarters after an at- tempt to run the picket lines a Republic Steel plant here Friday should be charged with kidnaping. Mayor Seccombe said he had not received a copy of the letter, and knew nothing of it except what he read in the newspapers. = “I assume the absence of intentional discourtesy by you,” he told Davey. “You and I well know,” said Mayor Seccombe's letter, “that the C. I. O. and its affiliates feel that they have the sympathy and active backing of the Federal administration, “Is there any doubt in your mind 4 answer charges of terrorism preferred | ecutive of the four steel corporations | by | 'C.1. 0. Calls 28 Locals on Strategy. WARREN PLANT ‘Taft Is Arranging New Talk With Steel Heads. BACKGROUND— Strike of steel workers, called by John L. Lewis' Committee for In- dustrial Organization as result-of refusal of four major independents to sign collective bargaining agree- ments, began mnearly month ago after most of companies in the field reached accords with the Steel Workers’ Organizing Committee. Violence marking strike at Re- public Steel’s plants at Chicago and Youngstown have taken 12 lives and caused injuries to scores more. B the Associated Press. | WARREN, Ohio, June 23.—C. 1. O. leaders today sent out emergency calls to 28 union locals, summoning them to C. I. O. headquarters for a conference to map counter-strategy against evac- uation of workers from the Republic | steel plant under the protection of Na- tional Guardsmen. A general strike has been threatened in Warren in retaliation for a court injunction against picket activities at the Republic steel plant. C. I. O. leaders, however, would not disclose whether they planned to call such a strike. About 850 men and women em- | ployes of the Sunlight Electric Co. | walked out on strike today in protest | against the Republic Steel evecuation | under National Guard bayonets. Shortly thereafter, 45 W. P. A workers laid down their tools and quit work on a street project. C. I. O. spokesmen claimed 10.000 members out of the 14,000 organized workers in the Warren district | The unionists are employed in 12 industrial plants and they include | | steel, telephone, electrical and W. P.| A. workers. | | Among the plants affected by any | general strike call would be Republic Steel, Packard Electric, Brainard Steel | Youngstown Pressed Steel, United | | States Gypsum, Warren Tool and Helt- | | zel Steel Form & Iron Cos. | Some of the union locals are Ameri- | can Federation of Labor affiliates. Meanwhile the evacuation movement went ahead. | BOARD RENEWS EFFORTS. 4,400 State Troopers Guard Mahoning | Valley Cities. By the Assoclated Press. CLEVELAND, June 23 (&).—Presi- dent Roosevelt's Federal Mediation Board renewed efforts today to arrange a settlement of the Great Lakes steel | strike. While strike-paralyzed mill cities in Ohio’s Mahoning Valley watched hope- fully, under surveillance of 4,400 Na- tional Guard troopers, Charles P. Taft, 2d, Federal chairman, arranged con- ferences with executives of the four strike-involved independent steel com- panies—Republic, Bethlehem, Inland Steel and Youngstown Sheet & Tube. President Roosevelt himself was keeping in close telephonic communi- cation with principals in the con- troversy, he disclosed at a White House conference. Four representatives of the Na- tional Labor Relations Board entered the picture today and a fifth investi- gator was on his way from Washing- ton. Data Being Gathered. Mark Lauter, member of the Labor Relations Board's legal staff, sald the group would proceed with “all haste” to gather data on the charges filed June 18 by John L. Lewis' C. I O. against the steel companies. The charges included alleged dis- crimination in the discharge of union employes, coercion through the shut- down of a Canton, Ohio, plant of Re- public Steel, the use of “armed thugs and gunmen” and alleged ‘‘collusion” with Sheriff Ralph E. Elser of Youngs- town to interfere with picketing. Quiet reigned along the valley mill front, where steel executives yester- (See STEEL, Page A-5.) in Strike that the latter intends to unionize all labor, whether desired by labor or in- dustry, as part of a national social- economic program? There is none in mine.” The Mayor asserted the alleged kid- napings did not occur in Canton's city limits. He said, however, “the victims were rescued by city police.” He added: “I am not & member of your political party (Davey is a Demo- crat, Secombe a Republican), the Pproscuting attorney and the sheriff of this county, however, are of your party, and I suggest you give them the bene- fit of your advice upon law enforce- ment.” ‘The letter continued: “I suggest that you read the Wagner act and also reflect upon the fact that for the first time in American history, at least to my knowledge, the mail trucks of the Government have been interfered with and without stern pro- test from the Government. “Surely it does not surprise you that technical kidnaping should occur in this country where the violation of Federal statute and interference with the mall is condoned.” WITH SUNDAY MORNING EDITION D. C, WEDNESDAY, JUNE 23, SLAUGHTER HOUSE AGTION DELAYED Vote on Reporting Anti- Nuisance Bill Put Off for Inspection Trip. BACKGROUND— After preliminary construction work had been undertaken, Gobel packing firm was denied permit to build slaughter house in Benning district. Upon revising plans, per- mit was granted. Bill then was introduced in Con- gress which would block contem- Plated structure; House declined consideration until hearings had been held. BY NELSON M. SHEPARD. The House District Committee today postponed action until next week on the controversial zoning bill designed to block the threatened encroachment of so-called nuisance industries in the National Capital. A vote on reporting the measure was delayed to enable members of the com- mittee to make an inspection trip at 10 am. Monday through the disputed area in Benning where Adolph Gobei, Inc., plans to build and operate a re- gional slaughter house unless circum- | vented by the proposed legislation. This delay forestalls the possibili of bringing up the bill in the House:! next Monday, the regular District day. It was regarded as highly improbable the House would take any action before July 12, the next date on which legis- lation pertaining to the District is con- sidered. Hearings Ended. The District Committee concluded two full days of hearings on the bill late yesterday. Similar hearings are in suspense before a Senate subcommic- tee until the return of Senator Pat McCarran, who is in Nevada. It was expected Senate hearings might re- open next week. Acting Chairman Palmisano told the committee today a suggestion had been made that members view the premises in Benning “to see if the bill should be passed.” Corporation Counsel Elwood Seal, he sald. had acquiesced in the suggestion. President Roosevelt's plans to meet with Congress Democrats at Jefferson Island thi played a part in de- HOUSE, Page A-3.) Summary of Page. Amusements A-14 5 Comics _.C-10-11 | Short Story__B-12 Editorials ___A-10 | Society . B-3 Financial - A-17 | Sports Lost & Found C-5 | Woman's Jbituary ___A-12 FOREIGN. French cabinet faces depletion of gold stabilization fund. Page A-1 NATIONAL. Cecil De Mille Corp. described at tax- evasion probe. Page A-1 Tom Girdler to testify tomorrow in steel inquiry here. Page A-1 ‘Taft conferring again with steel heads on strike. Page A-1 C. I O. and auto union probe unau- thorized strikes. Page A-5 Congressional relief disputes continue after Senate passes bill. Page A-5 Rail Retirement Board seen possible labor battleground. Page A-2 Cambridge Canning Co. strikers stone three policemen. Page A-2 ‘WASHINGTON AND NEARBY. Vote on nuisance industries bill de- layed by House group. Page A-1 Bill to seek city council of advisers for District. Page A-1 D. C. Supply Bill Before Conferees Tomorrow. Page A-2 D. C. heads to let business prove flat- rate tax inequity. Page A-2 Higher Transit Co. patronage seen in added motor taxes. Page A-2 Maximum work day seen fixed by wage-hour bill. Page A-6 Prisoner runs from detective, shoots self dead. Page A-6 Forbush, “blackface” bandit, identi- fled by 10 merchants. Page A-6 Church Féderation terms new jail “absolute necessity.” Page A-8 Death in D. C. area lifts traffic toll to 53. Page B-1 Government will take loss on rents from Greenbelt project. Page B-1 BSchool ends today for more than 90,000 D. C. pupils. Page B-1 [ 4 Radio WHY nave They GOTTA MAKE Sp MUCH NOISE ABOUT 1T 7 KEPT IN! MARCH IS THREATENED Parade to Capital by W. P. A. Workers Threatened. MILWAUKEE, Wis,, June 23 (#).— David Lasser, president of the Work- ers' Alliance of America, said the group, in convention here today, con- templated a Nation-wide march on Washington “by tens of thousands of W. P. A. workers” if President Roose- velt did not cancel a lay-off of 427,000 relief workers proposed for July 15. A telegram was dispatched to the President asking him to “exercise your executive power” to prevent the lay- off. No convention action was taken on a protest march to Washington, DEADLY VIRUSES PROVE CHEMICALS Dr. Wyckoff's Experiments | Hold Out Hope for Cures of Strange Diseases. BY THOMAS R. HENRY, Possibility of eventual specific cures for the host of filterable virus diseases, | including some of the most deadly | maladies known to man, was held | out here today by Dr. Ralph W. G. Wyckoff of the Rockefeller Institute for Medical Research. | The molecules of several malignant | viruses, he announced, lose entirely their capacity to cause disease when treated with some simple chemicals. This has been demonstrated, Dr. | Wyckoff said, for the virus respon- sible for tobacco mosaic and the one which produces a form of papilloma, a wart-like growth on the skin, in rabbits. Admittedly none of the human viruses have yet been obtained in pure form, but their behavior follows the same rules as that of the substances causing plant diseases. Dr. Wyckoff at the same time described experi- ments which throw an entirely new | light on the mechanism of virus in- (See SCIENCE, Page A-6.) o 250 Nominated for Dail. DUBLIN, June 23 (#)—More than | 250 candidates were nominated today | for election to the Irish Free State ! Dail (Parliament) July 1. Today’s Star New elevator code for D. C. to be submitted. Page B-1 Living Costs Highest in District, Sur- vey Shows. Page B-1 House group favors bill to limit D. C. taxicabs.. Page B-1 EDITORIALS AND COMMENT. Editorials. Page A-10 This and That. Page A-10 ‘Washington Observations, Page A-10 Answers to Questions, Page A-10 David Lawrence. Page A-11 H. R. Baukhage. Page A-11 Dorothy Thompson. Page A-11 Constantine Brown, Page A-11 Lemuel Parton. Page A-11 FINANCIAL. Junior rail bonds up (table). Page A-17 Power output down. Page A-17 Stocks lose part of rise (table). Page A-18 Page A-19 Page A-19 Page A-19 Curb list mixed (table). Steel demand slackens, Earnings improve, SPORTS. Louis gains ring throne by right-hand K. O. of Braddock. Page C-1 New champ’s success attributed to de- feat by Schmeling, Page C-1 Long lay-off beat Braddock is Demp- sey's view. Page C-2 Nats surprise fans by winning, al- though crippled. Page C-2 HefIner, Johnson face big net assign- ment today. Page C-3 Helen Dettweiler shows national title golf caliber. C-4 MISCELLANY. Young Washjngton. Shipping News. Traffic Convictions. Vital Statistics. City News in Brief. Dorothy Dix. Betsy Caswell. Men’s Fashions. ‘Winning Contract. Service Orders. Nature's Children. Cross-word Puzzle. Bedtime Stories. Letter-Out. A-7 A7 A-7 A-7 A-7 Page B-10 Page B-10 Page C-5 Page C-5 Page A-7 Page C-10 Page C-10 Page C-11 - PageC-11 A ¢ Foening Sfar 1937—FORTY-FOUR PAGES. ##%% The only evening paper in Washington with the Associated Press News and Wirephoto Services. Yesterday’s Circulation, 138,435 (Some ‘returns not yet received.) [N BLLTOASK D.C. OTY COUNGIOF Kennedy’'s “Home-Rule”| Measure Would Create Ap- pointed Advisory Group. BACKGROUND— House District Committee last Winter authorized subcommittee, headed by Kennedy of Maryland, to draft new tax program for Capital and to study possible reorganiza- tion of local government to eflect economies and greater efficiency. At present, District is governed directly by Congress with Commis- sioners as instruments. BY JAMES E. CHINN. Representative Kennedy, Democrat, of Maryland disclosed today his plan for reorganizing the District govern- ment contemplated creation of & city council of five members to advise the Board of Commissioners and also to serve as a liaison to the public. A bill providing for the reorganiza- tion is now being whipped into shape and will be introduced in the House sometime next week. Originally Kennedy proposed to substitute a city manager for the pres- ent commission form of government. He said he abandoned this plan, how- ever, because he is confident Con- gress would not approve such a radi- cel change in the municipal set-up. The Kemmedy bill will propose that the advisory council be composed en- tirely of long-time residents of the | District and be representative of the | various classes of the city's life— business, civic, labor, educational, re- ligious and industrial. The members would be appointed by the President. ‘Would Frame Budget. The advisory council would be subordinate to the Board of Commis- sioners, but will be given sufficient authority in the bill to relieve the Commissioners of many of their varied duties. For instance, the council would frame the annual budget, pre- pare needed legislation for Congress and perform other similar functtons vitally affecting the public. The Commissionerss, however, would have final authority to approve, reject or alter the recommendations of the council. Kennedy pointed out the details of duties to be outlined in the bill for the proposed council have not been definitely determined, nor have many of the other changes he hopes to make in the municipal government. Escorts Bill Through. The tax bill, bearing Kennedy's name, has been passed by the House. Its passage completed one of his jobs, although Kennedy intends to “live” with the bill until it is sent to the White House for the signature of President Roosevelt. In fact, he al- ready has arranged to take an active part in the forthcoming hearings on the measure before the Senate Dis- trict Committee. Experts on municipal government are aiding Kennedy with the prepara- tion of the bill. Kennedy, however, will insist that the District Committee hold hearings on the measure so that the public and the municipal officials may have an opportunity to suggest changes before it is reported to the House. Aside from providing for a city council, the bill will be designed to give the Commissioners increased powers as & me.ns of relieving Con- gress of many of the somewhat trivial duties it now has to perform for the District, such as enacting legislation to name a street or to lay & pipe line. “The bill,” said Kennedy, “will go as far as I believe Congress is willing to go at this time in giving the vote- less residents of the District an ele- ment of home rule.” LOYALIST PLANES RUSHED T0 GUARD BRITISH FREIGHTER Craft Appeals for Aid Against Italian Warship, Officer Reports. HITLER AND MUSSOLINI LEAVE SEA PATROL Angrily Withdraw as Britain and France Reject Demand for “Demonstration.” BACKGROUND— With outbreak of Spanish war last July resuiting in other Eu- ropean powers taking stands with Loyalists or insurgents, action was launched to prevent conflict en- gulfing all Europe. Non-Intervention Committee of 27 nations formed neutrality patrol last May. Since that time two German ships have been shelled and Nazis in reprisal have bom= barded Loyalist port of Almeria. By the Assoctated Press. BARCELONA, Spain, June 23— Gen. Sebastian Pozas, commander of the Catalan forces of the Spanish central government, said today he had ordered warplanes to protect a British freighter that had appealed for aid against an Italian warship. Gen. Pozas declared the freighter appealed for protection within Span- ish waters near this port. charging an Italian warship attempted to stop her and conduct a search. He said he did not know the name of either vessel supposedly involved. | The British merchantman, Gen. Pozas said. reported that the war ves- sel was acting as a unit of the non- s Associated Pre intervention control fleet from which | taly withdrew today. QUIT NEUTRAL PATROL. Germany and Italy Withdraw a8 Demands Fail. LONDON, June 23 (#)—Germany and Italy ordered their warships com- pletely out of the international neu- trality patrol of Spain today. Rebuffed by Britain and France in & German demand for a naval demon- stration by all four powers to “warn” the Spanish government away from neutral patrol warships, the Nazi and Fascists states quit the non-inter- vention eontrol scheme in frigid con- cert. Foreign Secretary Anthony Eden announced the German decision to the House of Commons. Cpunt Dino Grandi, the Italian Ambassador, then informed him of Italy’s concurrence. The Germans. Eden was informed, “would confine themselves to this ac- tion.” Eastern Coast Left Unguarded. The Italian and German ships have patrolled the eastern or government- held coast of Spain. Their with- drawal left that coast unguarded by vessels watching for violations of a 27-nation ban on the sending of for- eign arms and fighters to Spain Britain and France are the other powers in the neutrality sea patrol. They refused to join a naval demon- stration against the Spanish govern- ment following an alleged torpedo at- tack on the German patrol cruiser Leipzig. Despite the withdrawal of thelr warships, both Italy and Germany will remain in the European Non- intervention Committee, which has directed the four-power neutrality patrol. Both insist they wanted a “peaceful” conclusion of the Spanish c.vil war, in which they are on the side of the Fascist insurgents. Order From Rome Reported. In Rome it was reported reliably that the Italian warships had been ordered completely out of Spanish waters as a result of the four-power deadlock over the German “demon- stration” demand. German warships assigned to Span- ish waters moved eastward through the Mediterranean, their destination undisclosed. The British foreign secretary told the Commons members that German Foreign Minister Konstantin von Neurath had informed him of the recall of German ships “with the specific intention of avoiding the pos- sibility of aggravating the situation.” Previously, Berlin had heard uncon- firmed rumors of a possible Italo-Ger- man blockade of the Spanish govern- (See EUROPE, Page A-3) BUDGE WINS EASILY 8. Net Hope Clears Second Round of English Tourney. WIMBLEDON, England, June 23 {#).—Don Budge, America’s chief hope for the title, trounced George Patrick Hughes, British Davis Cup player, in the second round of the all-England tennis championships today, 6—2, 6—2, 6—2. Frankie Parker of Milwaukee joined Budge and Mako in the third round, scoring easily over the veteran French- man, Jacques Brugnon, 6—0, 6—3, 6—1, . Millards Flee Burning Boat Near Point Lookout in Bay The ill fortune that befell Maj. Homer B. Millard and his wife more than a year ago, when their yacht Kaydet almost sank off the Carolina coast, was repeated early today when their recently-purchased schooner Cachalet burned in Chesapeake Bay near Point Lookout. The Millards and the four members of their crew- were rescued from a small boat, in which they had put out from their blazing boat, bu the steamer District of Co- lumbia. { Maj. Millard, headmaster of the Millard Preparatory School for West Point, 1912 N street, and his party were bound for Solomons Island when a blaze was started from a back- fire of the engines. The flames were so fierce and spread so rapidly, ac- cording to an Associated Press dis- patch from Norfolk, that none of those aboard was able to save any belong- ings. Maj. Millard fled the vessel in his bathing suit. When the District of Columbia, (8ee MILLARDS, Page A-4.) e} TWO CENTS. TAX PROBE TOLD DE MILLE SOUGHT 10 EVADE LEVIES Treasury Aide Says Film Producer Set Up Own Holding Company. INCORPORATION CALLED “EARNING PERSONALITY” Salary Paid by It Declared Far Less Than He Could Secure as Director. BACKGROUND— Disappointing income tar returns of last March led Treasury to make quick survey into cause. Upon finde ing disprovortionate shortage in centers of greatest wealth, investis gators uncovered several ertensiv schemes for reducing tax liability. President then asked Congress to make public inquiry and enact lege islation which would close loop= holes, By the Assoclated Press, Commissioner Guy T. Helv the Internal Revenue Bureau tol congressional tax inq today that the Gov Cecil B. De Mille, m. made a “purposeful attempt to evade surtaxes’ on his rough crea- tion of a perso A g company. Helvering testified that De Mille some time ago formed a corporation “which he completely dominated, consisting of himself, members of his family and his attorney.” “This,” he added, “was an incor: poration of what may be called | power was almost the sole corporate asset, “De Mille, the individual, then went to work for De Mille, the corporation, at a salary far less than he knew he could command as a director. “The corporation then sold De Mille's services to producing companies. The difference between Cecil De Mille's salary from his own corporation and his actual earnings as a motion picture director was put into the corporation.” ‘To the Government's claim that the accumulation of this surplus was un- reasonable and for purposes of evading surtaxes, Helvering said, De Mille re- plied that his corporation was sa up money to go into the production of motion pictures at a later date. Book Cited By Treadway. Representative Treadway, Repub- lican, of Massachusetts, suggested ss today’s hearing opened, that one po bility of “beating the Government" of taxes was ‘‘pretty accurately de- scribed” in a book Roswell Magill, Undersecretary of the Treasury, aided in writing. The white-haired Congressman, member of the joint tax inquiry com- mittee, asked Magill if the assertion was not correct. Magill replied bluntly and with a smile: “No He said the book merely had out- lined that it was possible in some in- stances by obtaining loans on legiti- mate insurance policies to effect re= ductions in taxes by deducting interest on the loans. Treadway said the book apparently contained y the logic” of the method by which New Yorkers, named at the hearing yesterday, at- tempted to cut down income taxes with insurance loans from a Bahama Islands firm. The names of the six were intro- duced into the hearing by Mason B. Leming. Treasury attorney, who ex- pected to wind up his testimony to- day. Laughter Enlivens Session. The reference to Magill's book, “Federal Taxes on Estates, Trusts and Gifts,” in preparation of which the Treasury official collaborated with Robert H. Montgomery, brought a round of laughter and an exchange (See EVASION, Page A-5) D. C. MAN AND FOUR DETAINED IN SPAIN Documents, Apparently in Code, Reported in Villar J. Find- ley's Baggage. By the Assoclated Press. BARCELONA, Spain, June 23.— Five United States citizens were res ported held by police for questioning today after they allegedly entered Spain from Prance. One of them was said to be Villar J. Findley. The names of the others were not disclosed. MADRID, June 23 () —News dise patches received today from Barcelona reporting an American described as Villar J. Findley, 38-year-old native of Washington, had been detained quoted Government authorities as saying their suspicions were aroused when they found a large number of hats and caps in his baggage. He was held after questioning at Portbou, where he entered Spain. Border officials were reported to have found documents, apparently written in code, in the linings of his hats, as well as a photograph of a “plan” in & hollow-sectioned walking stick. No Washington identification of Villar J. Findley could be established today. $1,800 FOR CATHEDRAL Sum Presented to Bishop Free- man at Benefit Tea. CONCORD, N. H, June 23 () — Richer by $1,800, Right Rev. James E. Freeman, Bishop of Washington, re- turned today to his Summer home at Sorento, Me. The money was cone tributed yesterday by 44 New Hampe shire women, who attended an invie tation tea at 8t. Paul's School here for the benefit of the Washington Ca- thedral.