Evening Star Newspaper, July 28, 1937, Page 1

WEATHER. (U. 8 Weather Burea: Fair tonight and tomorrow, warmer tomorrow, light becoming gentle south or peratures today—Highest, 82, at 2 p.m.; lowest, 61, at 5:30 a.m. Full report on page A-14. ‘Clnling N.Y. Markets—Sales—Page 20 85th YEAR. No. 34,056. u Forecast.) slightly variable winds, southwest. Tem- Entered as second class matter post office, Washington, D. C. ah WASHINGT! CHINESE FIRE REPULSES FOE’S MUNITIONS SHIPS; U. S. CITIZENS MAY FLEE Four Were Trying to Reach Port of Tientsin. PUNITIVE STEPS TAKENBY TOKIO| “Issue of Battle” Is Accepted by Nanking. BACKGROUND— Fighting between Japanese and Chinese troops started July 7 at the Marco Polo Bridge near Peiping. Japanese troops, on night maneu- vers, were part of force maintained to keep road from Peiping to sea open. Japan has insisted upon her pref= erential rights in the economic de- velopment of North China. In turtherance of this demand Japan has insisted upon ousting of anti- Japanese elements of 29th Chinese Army stationed at Pciping. BULLETIN. PEIPING. July 28 (®) (By United States Embassy wireless to Shang- hai)—The majority of the 672 American civilians in Peiping took refuge in the United States Em- bassy compound tonight at the close of the first day of major Chinese-Japanese hostilities in this area, BY the Associated Press. TIENTSIN, China, July 28.—Chi- nese mortar fire tonight forced four Japanese munitions ships to turn back from the mouth of the Hai Ho River after attempting to reach Tangku, port of this Japanese military head- quarters in the undeclared war be- | tween China and Japan Westward, sanguinary fighting, with eonflicting claims of success, made an all-day battlefront of the Peiping area. At the Hal Ho mouth, Chinese troops opened fire from the banks as soon as the four Japanese steamers | hove in sight. After they had turned | back into the Gulf of Chihli, Japanese i eutters appeared, returned the Chinesa | fire, and escorted a transport safely | . into Tangku. ‘Then the Japanese command | warned all shipping to take shelter pending punitive activities on sea and | land. Japanese troops moved up to | drive the Chinese from Taku, on the opposite bank of the river from ‘Tangku. The two places are about 25 miles ‘east of Tientsin. Report Barracks Taken. The Japanese high command claim- ed complete occupation of the Chinese barracks at Nanyuan, a stronghold in .the Peiping defenses south of the for- mer capital. They asserted that superior Japa- nese artillery and aviation proved the deciding factors in a bitter battle in wigh the Chinese yielded two undis- closed key positions north of Peiping. | Chinese reports that their 29th Army took Fengtai, Japanese military * base south of Peiping, and recaptured Langfang were denied by the Japa- nese. They admitted, however, that a Chinese attempt to surround Lang- | fang, which commands the Japanese military railroad line midway be- | tween here and Peiping, necessitated | hasty reinforcements there. Reliable foreign sources esti- mated that the Chinese quickly could call about 420,000 troops to the Peiping front from the central government army and armies in and bordering on the Hopeh-Cha- har Provinces. The central gov- ernment, they said, also possesses 300 first-class fighting planes at scattered bases throughout China. The Japanese were said to have concentrated 18,000 or 20,000 sol- diers in the Tientsin-Peiping area, with sufficient reserve guard strength to throw all their effec- tives into battle at once. About 90 Japanese planes have been col- lected here. More Flyers Are Dispatched. Foreshadowing swift extension of | Japan's aerial warfare, additional Japanese aviation officers flew here today from Japan to organize a gen- eral air corps headquarters, The Nanyuan barracks, Japanese military communiques declared, were | demolished by a combined mass aerial bombardment and all-day| artillery pounding which took a heavy | toll of Chinese lives. Reinforcements of Japanese troops, | oqulpmem and supplies, meanwhile, (See TIENTSIN, Page A-5.) 15 DIE AS PLANE FALLS IN BELGIUM | Three Americans Reported Among , Victims in Crash of Dutch Airliner. By the Associated Press. AMSTERDAM, July 328.—Fifteen persons, three of them identified by airline attaches as Americans, died today in the flaming plunge of a Netherlands airliner at Hal, Belgium. ‘The airline identified the Americans only as “Whitehouse, Canton and Gold- bloom,” and said it had no other in- formation about them presently. ‘The transport, a Douglas, crashed in flames after an explosion in midair. Its 10 passengers and fine crew mem- bers, including a stewardess, were killed | instantly. The ship left Amsterdam at 9:20 s.m. and crashed on a flight to Paris & Wounded PVT. JULIUS F. FLISZAR. The Navy Department an- nounced today that Pvt. Flis- zar of the mounted Marine detachment at Peiping had been wounded by unaimed rifle fire from Chinese troops near the American Embassy. Fliszar was the first—and only—American wounded so Jar at the scene of hostilities between troops of China and Japan. —A. P. Photo. 1. TOKID ENVOY Prevent Spread of Conflict. Br the Associatad Press, TOKIO, July 28.—United States Ambassador Joseph C. Grew appealed | to Japan today to prevent the spread | of the North China conflict between the Japanese and Chinese Armies His action came as Japan formally declared its intention to resort to arms | provocation against Japan Ambassador Grew called on Foreign Minister Koki Hiroto this morning and requested an explanation of the situ- | ation in the Peiping area where heavy | fighting started just before dawn. After his visit the foreign office spokesman said Grew had joined with | the British Ambassador in an appeal to the government not to let the situ- ation get out of hand. At the same time the Domei (Japa- nese) News Agency reported Lawrence Salisbury, secretary of the American Embassy in Peiping. had presented a | joint American, British, French and Italian memorandum to the Japanese Embassy asking that the legation quarter not be used as a base for mili- tary operations. Urges Care for Embassy. Ambassador Grew requested Hirota to exercise great care that the Ameri- can Embassy in Peiping did not fall in the war zone and that American lives and property were not endangered. Hirota assured the American diplo- | mat the Japanese Army would leave nothing undone to protect Americans and other foreigners and added that Japan had not yet abandoned hope of an amicable settlement of the situa- tion. The newspaper Asahi reported from Peiping that two American soldiers of the Embassy guard had been wounded while on patrol duty. Chinese troops of the 29th Army opened fire on them with machine guns, Asahi said, wound- ing one seriously and the other slightly. (Chinese dispatches said one American soldier had been wound- ed when he was caught between the fire of Japanese and Chinese troops fighting in Morrison street, (See TOKIO, Page A-5.) Babies vs. Jobs Question Before State Workers Old Post Will Not Be Held Open During Maternity Leave. Br the Associated Press. BALTIMORE, July 28.—State, Em- ployment Commissioner Harry C. Jones looks at it this way: ““We're not in the business of having babies, but of running the State gov- ernment Result: Bulletin No. 28, which pro- vides that a female employe of the State of Maryland, who requests ma- ternity leave of absence, will have it granted under the following condi- tions: Leave of absence vmhout. pay for not less than a year. At the end of the leave the employe will make application to. have her name placed on the employment list for the classification in which she was formerly employed. Under no circumstances will posi- tions be held open pending expirations of leaves. When a position is vacated by a maternity leave, it wiil be filled imme- diately by a permanent employe. Jones, the father of four children, doesn't want to discourage mother- hood, he points out, but, when baby after having landed at the Evere Air- port in Brussels. Alrport employes at Brussels said they noticed “queer engine noises” as the liner took off. » interferes with office routine, mother must choose between the two. And motherhood, he thinks, , requires a year. Hence the minimum leave period. T SEEKS WARLINIT Grew Appeals to Japan to to punish China for repeated acts of | |{Hull Weighs Plan to Order Them From Peiping. {672 AMERICANS LIVING IN CITY |Possible Invocation | of Neutrality Law Considered. Secretary Hull said today that pos- sible evacuation of American civilians from Peiping was being considered as one eventuality to be met in the pres- ent Chinese-Japanese crisis. He made the statement at his press conference shortly after it became known that President Roosevelt was keeping in constant touch with Far Eastern developments to determine, among other things, whether the neu- trality act should be invoked. The Secretary said no decision had yet been reached on the question of evacuating American nationals. He added, however, the question of pre- serving the safety of all foreigners in Peiping was a subject of continuous conferences among American Embassy | officials and the representatives of other forcign governments. 675 American Residents, ‘There are approximately 675 Amer- icans listed as residents of Peiping, most of whom are affiliated with re- ligious and educational institutions. | In additicn, 2 force of 500 men and of- | ficers comprises the American Marine guard for its Embassy. Hull told newsmen the question of evacuation of foreigners from Peiping has arisen now for the first time since adoption of the Boxer protocol of 1901, which was written to care for just such | an emergency. Following the Boxer rebellion in which many foreigners were slain in the old Chinese capital, foreign na- tions agreed with China under a for- mal compact that thev would main- tain military forces sufficient to main- | tein intact the railroad line between | Peiping and Tientsin, the nearest sea- | | port, so that there would be no doubt | of the ability of foreigners to flee in times of danger. { Says Assurances Given. Hull emphasized that the Japanese | government has given assurances that | \Io*elg'n lives and property would be protected and that the Nanking gov-| | ernment of China had assumed the { | same general attitude. He indicated \that because of this, only reasons of | utmost urgency would impel the United States Government to suggest | | that American men and women in Peiping leave that city, Stephen T. Early, press secretary, told newsmen the President was in telephonic communication last night and this morning with the State De- i partment and would continue to watch every development in the critical sit- | uation. During the morning Mr. Roosevelt conferred with Undersecretary of State Sumner Welles on various international questions, including Far Eastern con- ditions. Welles advised the President of the latest information furnished by State Department dispatches from the Orient. Declaration Not Necessary. He recalled that under the law the President does not have to wait for a formal declaration of war to put into effect the neutrality provisions prohibiting arms, ammunition and credits to belligerents. The President, it was added, must decide for himself when a state of war exists, and then he is obligated to invoke the law against belligerents on both sides. Although numerous clashes have oc- curred between Japanese and Chinese troops in the vicinity of Peiping, neither Japan nor €hina has made a formal declaration of war. Invocation of the neutrality act against them likely would be the first formal international recognition of the fighting unless the League of Nations should act before this country. The situation conceivably could be similar to that which arose during the TItalo-Ethiopian trouble when President Roosevelt's invocation of neutrality, designating a state of war in Ethiopia, was the first official recognition of the fighting then in progress. Formal Declaration Not Necessary. Discussing the time at which a war actually begins, authorities on inter- natioral law said a formal declaration by warring states was not necessary to inform neutrals of the conditions of affairs. Ultimatums as precedents to actual hostilities, however, are re- quired by the accepted rules of war. Experts said that when the “normal relation” of peace between nations became strained it was customary for (See PRESIDENT, Page A-4.) APPEAL TO CHURCHES :MADE BY HAILE SELASSIE Emperor Asks Them to Voice “Horror at Suffering” Imposed by Italy on Ethiopians. By the Associated Press. LONDON, July 28.—Emperor Haile Selassie of Ethiopia appealed today to “the Christian churches of the world” to “express their horror and condem- nation of the suffering imposed upon my people and the abominable out- rages permitted and condoned by the Italian government.” The exiled Emperor’s statement ac- | cused Italian soldiers of killing hun- dreds of men and women. It asserted thousands were “executed after sum- | mary trial.” The Emperor said he had appealed in vain to the League of Nations, but “I shall not give up hope of restora- tion of my country’s independence.” | ON, D. C., | BACKGROUND— i | By the Associated Press. | to a night of terror in which custqms | Jackson defends ‘WITH SUNDAY MORNING EDITION WEDNESDAY, IT'S A SWELL JULY 28, ¢ Foening Star 1937—THIRTY-EIGHT PAGES. ##% The only in Washington wit Associated Press and Wirephoto Services. evening paper the News Yesterday’s Circulation, 137,060, (8ome returns not yet received.) () Means Associated Press. TWO CENTS. COMPROMISE TAX LONG FIGHT BODED “RoPosEp it NATIONAL LAYOUT, BOYS, BUT SEEMS TO BE HAVING EVEN WORSE LANDING TROUBLES THAN THE SHIPS ! AIRPORY STILL AN UP-IN-THE-AIR-PORT! TERRORIST BOMBS CREETKINGEEORG Railroad Span Dynamiting Blamed on Republicans. Gas Main Explodes. Catholic-Protestant friction has marked Belfast history for half a century. Northern Ireland, as con- trasted with the Irish Free State, is predominantly Protestant, but an anti-Crown minority of Ulster Re- publicans has been vigorous and openly deflant. BELFAST, Northern Ireland, July 28.—Terrorists shattered the peace of Belfast and Ulster's Free State border with bombs, arson and gunfire today in hostile greetings to King George VI and Queen Elizabeth. Police blamed the outbreak on Irish Republicans. While the King and Queen, on a coronation visit, were driving to the | Belfast city hall through crowded streets. a gas main explosion a half- mile away boomed through a wide area of Belfast. It came as a climax houses were burned and a railroad bridge was dynamited After the British sovereigns were re- ceived at the city hall, attended a state luncheon and a garden party, and saw a parade of youth organi- zations, investigators belleved the gas explosion probably was accidental. However, the Royal Ulster Con- stabulary at Belfast said they were investigating the possibility that the blast might have been caused by a land mine. 28 Customs Houses Fired. Other explosions and disorders, in- cluding the burning of 28 customs houses between Carlingford and Bun- doran, were attributed to a “big plot,” rumors of which had reached the ears of authorities last week. Crowds lining the streets cheered the King and Queen on their drive through the city. The throngs started gathering last night and hundreds ate picnic breakfasts in the streets to keep their places. At the city hall the King replied to an address of welcome by saying: “We cannot thank you enough for the kindness and warmth of the wel- come you have given us. We are de- lighted to find ourselves among you once again to rénew our acquaintance with our loyal people of Northern Ire- (See BELFAST, Page A-4.) Summary of Page. Comics ..B-14-15 Drama B-16 Editorials A-12 Finance ...-A-19 Lost & Found B-9 Obituary ____A-14 FOREIGN. Chinese fire repulses four Japanese munitions ships. Page A-1 Ambassador Grew urges Japan limit war in China. Page A-1 Roosevelt scans developments in Far East. Page A-1 Terrorist bombs greet George and Elizabeth at Belfast. Page A-1 Rival armies at Madrid battle with big guns. Page A-2 Thirty-two from Washington area re- ported in Peiping. Page A-3 NATIONAL. Vandenberg opens attack on wage- hour billl Page A-1 Minton court proposal threatens to prolong session. Page A-1 Pirst part of reorganization program approved by House. Page A-2 Cummings terms Reed available as Van Devanter successor. Page A-2 Republic, C. I. O. open court fight after riot. Page A-4 WASHINGTON AND VICINITY. Conferees meet today in effort to agree | on D. C. tax program. Page A-1 actions in Mrs. Roosevelt tax case. Page A-2| Number of policemen per capita, crime | factor, says Hoover. Page A-14 | D. C. drive on high infant mortality rate planned. Page B-1 Senator King asked to help Fidelity reopening. Page B-1 D. O. firemen lrwu-l to lubeonmnm for five-day week. Pags B- < Serial Story.. B-9 Short Story-A-21 Sports ___A-16-18 Society -- B-3 Woman's Pg. A-15 {of polar Roper Hints Mattern Pole Hop Gets O. K. Permit Issuance to Await Probe of Its Value. By the Atsociatea Press. Secretary of Commerce Roper today indicated the Bureau of Air Com- merce would grant the application of Jimmie Mattern for a permit to fly across the North Pole to Moscow. He said. however, three Govern- ment agencies would investigate what of value might result from the flight, before any permit is issued. The Secretary, discussing the mat-| ter at his press conference, said the | bureau lacked authority to withhold permits technical and other requirements. This Government lacks “knowledge conditions,” he said, would have the Navy, Army lnd the " (See MATTERN, Page A-5) TREASURY DIVISON DEFENDS FIRMS Declines to Ask for Wage and Hour Ruling in Paint- ers’ Strike. BACKGROUND— Union painters struck more than week ago against Treasury Depart- ment projects in protest at labor practices of two open shop firms from out of town who had been given four contracts here. For 24 hours, all organized paint- ers in city were on sympathy strike, but since then strike has been lim- ited entirely to Treasury jobs. Labor Board and three Government departments have been appealed to by union, Declining to ask at this time for any further ruling on wage and hour standards for four disputed painting contracts on Government buildings, the Procurement Division of the Treasury Department this afternoon reported to the Labor Department that the firms handling the work T (See PAINTERS, Page Al3) Today’s Star Johnson urges passage of bill to enlarge Washington airport. Page B-1 EDITORIALS AND COQMMENT. Editorials. Page A-12 This and That. Page A-12 ‘Washington Observations. Page A-12 Answers to Questions. Page A-12 David Lawrence. Page A-13 H. R. Baukhage, Page A-13 Jay Franklin. Page A-13 Constantine Brown. Page A-13 Lemuel Parton. Page A-13 SPORTS. Appleton regains berth as Nats' slab regular. Page A-16 Budge rated key to golden net era for U. 8. Page A-16 British glum over international tennis outlook. Page A-16 Yacht racing too technical for amateur scorers. Page A-17 Ranger bucks jinx tuning up for En- deavour II test. Page A-17 Vets dominate qualifiers for U. 8. ama- teur golf. Page A-18 FINANCIAL. U. S. bonds improve (table) Power output lags. General Motors net drops. Aircraft stocks rally (table) Curb list mixed (table) U, S. Steel profits jump MISCELLANY. Shipping News. Traffic Convictions. Vital Statistics. Dorothy Dix. ‘Winning Contract. Young Washington. Nature’s Children, Cross-word Puzzle, Bedtime Stories. Letter-Out. Page A-19 Page A-19 Page A-19 Page A-20 Page A-21 Page A-21 Page A- 9 PageA- 9 Page A- 9 Page A-15 PageB- § PageB- 7 Page B-14 Page B-14 Page B-15 Page B-15 VANDENBERG HITS WAGE- HOUR BILL Says It Gives Authority Over All Industry to Five Men. BULLETIN, The House Labor Committee drastically revised the administra- tion's wage-hour bill today to give the proposed Labor Standards Board power to establish minimum wages as high as 70 cents an hour and a maximum work week as short as 35 hours. when proposed flights met | and | By the Associated Press. Senator Vandenberg, Republican. of | Michigan criticized the Black-Connery | wage-and-hour bill today as delegating | | to “five men the authority to decide for | | themselves the proper minimum wage and maximum work week for all the vast and diversified industries of this countr\ ‘4 Vandenberg opened opposition de- | bflN‘ to the measure to create the board after President Roosevelt had defended actions of another labor agency. The | President said the National Labor Re- | | lations Board was impartial and that criticism from both capital and labor was an indication of its fairness Launching the first real attack on the Black-Connery measure, Vanden- berg warned the Senate that ‘the | American system of industry may be at stake.” “I emphatically concur in the main objectives to which this bill is ad- dressed.” Vandenberg said. “Good in- tentions and high motives alone are not enough “Practical legislators must ask them- selves practical questions. “Will the bill do what it pretends to do? In doing that, will it not create more problems than it solves? Will it not create bureaucratic hazards sug- gestive of a tyrannical dictatorship? “If by magic of a vivid wish, or by mandate of a pious statute, we could universally give American labor a 40- cent-an-hour wage and a 40-hour maximum work week it would have my unrestrained approval. “However, that is not what happens. What actually happens is that five men are given delegated authority, based on vague criteria and degenerat- ing exemptions.” The President made known his views on the Labor Relations Board at & press conference a day after Repre- sentative Rankin, Democrat, ofM is- sissippi had accused the board of con- spiring with Communist influences to destroy Southern industries. Hugh Johnson, former N. R. A. administrator, recently called the board a one-sided ‘‘pressure” group. Senator Nye, Republican of North Dakota, said “the average man re- gards it as an adjunct” to John L. Lewis' Committee for Industrial Or- ganization. From other persons, Mr. Roosevelt said, have come assertions that the board was biased in favor of industry. In reply to a query, the President said he did not know whether the ‘Wagner labor relations act oould be strengthened by inserting provis- ions to make unions more responsible in keeping agreements. He said, however, he believes the act is not one-sided, and expressed the opinion many employers have violated agreements in the last 10 years. He referred to the British trade union act as containing a fair de- gree of mutual responsibility, although he suggested the United States could not adopt it verbatim. Union responsibility was an issue in Senate consideration of the admin- istration wage and hour bill. Senator Vandenberg was ready with an amendment ereating such responsi- bility. Chairman Black said, however, his Labor Committee had agreed the wage-hour bill should not enter the fleld covered by the Wagner act. Among other proposed amendments was one by Senator Johnson, Demo- crat, of Colorado, eliminating the bill's child labor provisions. He prefers separate legislation. Presents Credentials. ROME, July 28 (#)—Pedro Garcia Conde, the new Ambassador to Italy | when he moved to recommit | procedure. AS MINTON PLANS COURTEBILL CHANGE Hoosier’s Proposal to Make Two-Thirds Vote Needed to Nullify Laws. PRESIDENT, LEADERS CONFER ON PROGRAM Support of Barkley Is Hinted. | Wheeler Terms It “Vio- lation.” BACKGROUND— With court reorganization bill re- duced to form believed non-contro=- versial, administration is nmow at- tempting to keep Congress in se sion long enough to pass few pieces of major legislation. First of these to get consideration is labor standards bill, by which elimination of sweatshop hours and wages and regulation of child labor are being sought, BY G. GOULD LINCOLN. The Senate, instead of heading for the final round-up, today gave indica- tions of heading toward another fierce round. A proposal that the new court bill shall be amended 50 as to provide the Supreme Court can declare an act of | Congress unconstitutional only by a two-thirds vote or greater, stirred the Senators. Senator Minton, Democrat, of In- diana, announced he would offer such an amendment, thereby threatening a contest which might prolong the Congressional session. Soon after Minton made his disclo- sure, it was learned that President Roosevelt had summoned congres- sional leaders to the White House for a late afternoon conference to discuss the legislative program. Those asked to talk with the President were Sena- | tor Barkley of Kentucky, new majori leader; Speaker Bankhead and Repre- sentative Rayburn of Texas, the House floor leader. Held a Violation. Following Minton's announcement, Benator Wheeler of Montana, leader of the opposition to Mr. Roosevelt's | original eourt bill and his program for more justices on the Supreme | bench, said flatly he would consider any attempt to legislate on the Su-| preme Court at this time a viola- tion of the agreement entered into | with the administration leaders. Majority Leader Barkley left the issue in doubt as he would not say whether he considered such an amend- ment a violation of the agreement. He pointed out that the agreement, which had been entered into at the time of the recommittal of the Pres- ident's court bill, was made in the Senate Judiclary Committee anyway, Senators, he said, were at liberty to | offer any amendments they desired on the floor. However, it was recalled that Sen- ator Logan of Kentucky, one of the supporters of the Roosevelt bill, had | declared on the floor of the Senate | that bill last week that, “The Supreme | Court is out.” Barkley's Support Seen. Senator Minton expressed the opin- | ion that Barkley would support his | amendment. He said he did not con- | sider that it violated any agreement ! and certainly none into which he himself had entered. After all, he| said, his proposed amendment did nat‘ in any way change the personnel of | the Supreme Court or provide for an increase of members All it did, he s¢ It wo challenging con act the burden of two-thirds of the Supreme Court that the law was un- constitutional. Minton said he believed his amend- ment would pass unless some of the Serators felt the agreement entered into in the Judiciary Committee pre- (See ADJOURNMENT, . Page A-4) Cleveland Hunts Band of Vandals Defacing Homes to change the person Newly Painted Dwell- ings Are Sprayed With Stain. By the Associated Press. CLEVELAND, July 28—Glaring blotches of stain on newly-painted homes led to an intensive investigation of vandalism today by Eliot Ness, city safety director. Night vandals, operating with spray guns and bicycle pumps, have dis- figured 30 Cleveland homes in the last two months. The victims were home owners who painted their own dwellings. The de- fled threats and paid. The night vandals came. “An undercover investigation to get evidence against the perpetrators is under way,” Ness, 34-year-old former Pederal alcohol tax agent, said today. “In each case the painting was done either by the individual who owned the home or by a painter who was not affiliated with & painters’ union. “In some cases the home owners were approached, while the painting was in progress, by persons purportedly from unions and asked to give them the job—and refused,” Ness said. Simple devices, as simple as a boy’s bicycle pump, are employed to spray red stain and paint against newly- painted homes. “It is the practice,” Ness added, “to issue some sort of certificate to place on the outside of dwellings if the painting is being done by union men.” The attacks have occurred for two from the insurgent Spanish regime of Gen. Francisco Franco, presented his credentials today to King Vittorio Emanuele. . or three years. Their increase in the last two months Ness attributed to “better times with more painting go- ug on.” kS | compromise on a modified form ON BUSINESS SEEN FROM CONFERENCE D. C. Realty Rate Less Dras- tic Than Land Assessment May Be Adopted. SOME PARTS OF BILL ARE NOT IN DISPUTE Measures to Strengthen Collection of Personal, Inheritance and Aute Levies Are Sure. BACKGROUND— As District deficit became ape parent several months ago, Con- gress decided to impose additional tazes on local residents rather than increase Federal contribution to support of the Capital. After vari- ous delays and controversies, one of latter being precipitated by in- dignation of House members at suggestion they tax their oun in- comes, both branches passed a tar bill. Two versions, greatly different, went into conference this week, BY J. A. O'LEARY. House and Senate confereas are expected to gather this afternoon for the first time in an effort to agres on a tax program to meet the cit | $7.000,000 deficit for the current fiscal year. Definite plans for the meeting, how- ever, await the return of one of the House conferees who is due back in the city at 3 pm. There was a pos- sibility the conference might have to be' postponed again until tomorrow morning The action of the Senate in substi- tuting a heavy land tax and an incoms levy for the House program of a busie ness privilege tax with an increase in the present uniform rate on real estate and tangible personal property has become the chief issue in conference, Although there are other tax features in the bill, these are the main revenue sources and the most controversial ones. In view of House opposition to the income tax and to the new land levy, it is believed efforts will be made to of business privilege tax with some ad- justment in the real estate rate that would be less drastic than the land tax. Estimates indicate adoption of either the House or Senate tax sched- ule without change would produce more money than is needed, which opens the way for compromise on some middle ground. Business Tax Favor Seen. Meanwhile, the District Commis- sioners, impressed by the Board of Trade's report on the proposed busi- ness privilege tax, are prepared to emphasize to Congress that this torm of levy has stronger popular appeal han the proposed income tax, Come missioner Hazen said today. “We were rather surprised when the Board of Trade came out in fa- | vor of the business privilege tax yes- terday,” Hazen said. “Since the tax | will affect business men principally, the support of the 4.000 members of the Board of Trade is an important factor. There has been no such sup- port of the proposed income tax. We intend to acquaint the conference com- | mittee in charge of the tax bill with these facts when we appear before i Hazen said the Commisioners have not yet received any indications as to when they will be allowed to appear before the Conference Committee, Chart Presented. A committee of the Board of Trade called on the Commissioners yester- day and presented a chart of proposed new taxes which would raise $8.500,000 to meet the city’'s deficit. Outstanding among the new revenue sources pro- posed by the committee were the busi- ness privilege tax and a 20-cent in- crease in the current real estate tax. On some parts of the bill there is little or no difference of opinion be- tween the two houses. These include: Provisions strengthening collection of personal taxes, expecting to bring in $500.000; inheritance and estate taxes, $800.000, and the weight tax on motor vehicles. While the weight tax will raise $1.500.000, it does not figure in the deficit problem, because this money will go into the special highway fund along with gas tax revenues. The deficit is in the general revenue fund. The Senate is proposing to boost the tax rate on land., improved or unim- proved. from $1.50 to $2.50 per hun- dred of value, continuing the $1.50 rate on buildings. This, however, would put $4,800.000 of the deficit burden on property owners, despite the fact property taxes already form the major part of the city's reve- nues. The House, on the other hand, is proposing to adhere to a uniform rate on real estate as a whole, with the rate raised from $1.50 to $1.70. This would make the property own- ers’ share of the deficit $2,500,000, and is believed to have a chance for adop- tion. Income Tax Opposed. There are no indications the House will weaken in its opposition to the income tax, which would produce about $2,500,000 after allowing credit for intangible taxes paid. The busi- ness privilege tax at the House rate of three-fifths of 1 per cent on gross receipts has been estimated to raise anywhere from $4,000,000 to $6,000,« 000, but the Senate felt this was ine aquitable. A bas’. of settlement may be sought on a lower business privilege rate, which, with the 20-cent increase on real estate and the other tax sources in the bill, would meet the deficit. Chairman King of the Senate group had hoped to start conferences yes= terday, but three Senate members were engaged in drafting the new judicial reform bill. That task was completed yesterday afternoon. . Italy to Launch Warship. GENOA, July 28 (#)—Italy’s second 35,000-ton battleship, the Littorio, will be launched here August 22 in the presence of Premier Mussolini. >