Evening Star Newspaper, August 5, 1937, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Partly cloudy, possibly night and tomorrow; not temperature; gentle variable winds. Tem- peratures today—Highest, 89, at 2 p.m.; lowest, 72, at 5:30 a.m. Full report on page A- Closing N.Y. Markets—Sales—Page 18 85th YEAR. No. 34,064. local showers to= much change in 19. Entered as second class matter post office, Washingtor, D. C. BANGER I LEA OVER ALF MILE AFTERFIRSTTURN Grabs Early Advantage as Endeavour Crosses Line Ahead of Signal. VANDERBILT SETS MARK FOR TEN-MILE BEAT Both Vessels Set Big Genoa Jibs and Staysails as Defender Pulls Away. BULLETIN, ABOARD COAST GUARD CUT- TER ARGO. off Newport, R. I, August 5 (P)—Harold S. Vander- bilt's Ranger, heading for her fourth and deciding victory over T. O. M. Sopwith's America’s Cup challen- ger Endeavour II, rounded the sec- ond mark in today's race over a 30-mile triangular course leading the blue-hulled British sloop by about three-quariers of a mile, By the Associated Press. ABOARD COAST GUARD CUTTER | ARGO, Off Newport, R. I, August 5.— | Taking advantage of a premature start | by his rival, T. O. M. Sopwith, Harold | S. Vanderbilt brought his America’s | Cup defender Ranger around the first | mark on today’s 30-mile triangular course at 12:57:46 pm. (Eastern standard time) to lead Sopwith’s En- deavour II by more than half a mile | and set a new record for a 10-mile windward Official timing gave the white-hulled | American sloop. which yesterday set a | new mark for a 15-mile beat to wind- ward, her second record by a margin | of 33 seconds. Her elapsed time for | the 10-mile beat was 1 hour 17 minutes | 46 seconds and displaced the former | record of 1:18:19 set by Sopwith's| Endeavour I in her second victory over | Rainbow, also skippered by Vander- | bilt, in 1934 Endeavour II turned the mark at| 1:01 trailing by 4 minutes and 5 zeconds. as Ranger appeared headed for her fourth straight triumph and the one that will end the current series for the “old 2 Set Genoa Jibs. Ranger set her big double-clewed Genoa jib and retained her staysail as she began the second leg, a 10-mile broad reach east by south. Endeavour | glso displaced her quadrilateral with & big Genoa. H The defender, getting an appreciable advantage when Sopwith crossed the | starting line ahead of the signal and was recalled to start again, was eight lengths in front by the time Endeavour | had come about and started again.| From then on to the mark Ranger | kept Endeavour covered on every tack | and drew away steadily. Endeavour belatedly set a stays: inside her Genoa as Ranger contin- | ued to draw away, and Sopwith's chances of winning at least one race in this series drew away with her. | At 1:32 pm. (Eastern standard time) Ranger had negotiated a shade more than 6 miles of the second leg, | indicating she should break the angular course record providing the wind held. There was little change in the relative position of the contenders. The record for a 30-mile triangular course was set at 3 hours 9 minutes 1 | sccond by Endeavour I on Seplembex" 18, 1934, in her second victory over Rainbow. After that race Vanderbilt| won four straight with the defender, and thus, if he crosses the line first again today, not only will have com- | pleted three successful defenses of the | cup, but won eight consecutive races as well | History Making Break. Tt was the first time in cup history | that a contender was recalled rnr‘ “beating the gun.” The start was in gharp contrast with yesterday’s, when | Vanderbilt timed his getaway to the split second and cross the line several boat lengths in front of the British &loop. Endeavour crossed the line approxi- mately 10 seconds ahead of the start- ing signal, which was hoisted promptly at 11:40 a.m. (Eastern standard time). That bit of misjudgment probabiy scuttled any chance Sopwith had of taking one race in the series. The start followed 10 minutes of Jockeying. At the starting signal Ranger was so close aboard Endeavour that the British skipper probably had little choice but to cross the line or risk fouling Ranger, which would have given the race to the defender any- how. Sopwith had piloted Endeavour into 8 cul-de-sac, with the white-hulled American sloop on one side and the buoy, marking the end of the start- ing line, on the other, The southeast-by-south breeze mod- erated to about 12 miles an hour, and the sea was only sparsely flecked with whitecaps. A bright sun meanwhile had burned off the morning mists. Breeze Picks Up. Half an hour after her disastrous start, Endeavour appeared to be foot- ing faster, while Sopwith gave the! challenger her head in a spanking breeze estimated to be blowing at ap- proximately 14 miles per hour. The cutter Argo, keeping pace with the contenders, was doing 11.5 knots as an indication of the fast windward | pace. At 12:16 pm. (E. S. T.) Endeavour began a short-tacking duel, coming about three times in five minutes. Ranger continued to cover her rival easily, holding safe a lead of approxi- mately 400 yards. Endeavour tacked nine times, aver- aging about 2 minutes between each such maneuver. Ranger covered the challenger every time, while establish- ing a lead of about a quarter of a mile. o Visibility at Pole Zero. SOVIET NORTH POLE CAMP (By Wireless to Moscow), August 5 ().— Ceiling and visibility were zero today. The temperature was just freezing, 32 degrees above zero Fahrenheit. ch WASHINGTON, 600-Pound Shark Caught Capt. Noah Hazard returned from his pound nets in Chesa- peake Bay near Galesville, Md. story. He had found a monster proof. ning at you while swimming? , yesterday with a whopping fish shark in the nets and here is the Incidentally, how would you like to see the above grin- Hazard and George A Bowles of this city with the monster, which measured 8 feet 2 inches in length and weighed about 600 pounds. —Star Staff Photos. WOMAN RESCUED IN BRIDGE LEAP Painter Runs From Auto to Leap in River and Save Her. A woman identified as Carolyn Brown, 36, of 5108 Fifth street leaped 50 feet into the Potomac River from the causeway on the west side of Ar- lington Memorial Bridge this after- noon and was rescued by a passing motorist, whe left his car and jumpad into the river at the same place to save her. James William Cogswell, 41, unem- ployed painter and salesman of 217 | | F street, was driving down the cause- | way when his son Raymond, 11, saw the woman jump from the stone bridge | railing. Cogswell stopped his car on the op- | posite side of the causeway, dashed | across to the railing, took off his shoes and jumped into the shallow water. The woman, he said, was almost afloat, “moaning and groaning,” when he reached her. He held her up until two men came in a rowboat, from the Nor- folk Dredging Co. dredge in the middle of the river and took them to shore. The Fire Department rescue squad rushed the woman to Emergency Hospital Cogswell told police at the scene that he had noticed the woman sit- ting on the concrete railing, writing a note. He had turned his eyes away when his son saw her jump. Police found a note in her pocketbook, left on the railing, but its contents were not immediately disclosed. Cogswell, slender and short, said he was an experienced swimmer and had “lived on the water” all of his life. “I shouted at a speedboat for help after I reached the woman, but the pilot did not stop,” Cogswell said. “Two men from the dredge rowed to us quickly and took us to shore. I administered artificial respiration, but there was hardly any water in her lungs. She was unconscious, how- ever.” —_— LOAN OF $100,000,000 TO CHINA REPORTED U. S., France, Belgium and Britain Said to Be Interested in Project. By the Associated Press. LONDON, August 5.—China, through her finance minister, has reached agreement in principle in London on a $100,000,000 loan to his country that may be world-wide in scope, a Chinese Embassy spokesman said today. It would be secured by Chinese cus- toms revenue and probably be raised by general subscription. The spokes- man said interest in the project had been shown in the United States, France and Belgium, Great Britain, A 1 HUGE STILL SFIZED INBETHESDA RAD Four Men Held After Largest Post-Prohibition Distillery Is Found. | The biggest illicit distillery discov- ered in the metropolitan area since the days of prohibition was raided early today in a two-story cottage on Bat- tery lane, Bethesda, Md., by Federal agents, who arrested four men and seized much equipment, including a truck and an automobile. The huge 775-gallon still had just completed a run when five internal and broke through the door. Two men were in charge of operations at the time, the agents said. They identi- fied themselves as Joe Hopkins, 29, and Lacy Bracknell, 19, both of whom were said to live on the premises. The agents then laid in wait for other suspects who were expected to return to the distillery. Some of the agents remained indoors with te two prisoners and another took up a lo- " (See RAID, Page A-5) Summary of Comics - Drama Editorials Finance Lost & Found C- --B- hort Story__B-§ c-1 B. C -3 -3 -5 | FOREIGN. | Moors repulsed with heavy losses south of Madrid. Page A-4 NATIONAL. | Ickes bids for control of housing ad- | ministration. Page A-1 Philadelphia police seek out ‘“union outlaws.” Page A-2 ‘Wirephoto's new receiving set doubles picture service’s fleld. Page A-2 Sugar bloc to push bill despite warn- ing of veto. Page A-2 Lehlbach funeral scheduled tomorrow in Newark, N. J. Page A-6 C. I O. marks anniversary of split with A. F. of L. Page A-12 WASHINGTON AND VICINITY. Fate of Fidelity may be decided in few days. Page A-4 Labor Department ruling on painters’ dispute expected. Page A-4 Autopsy reveals Bryant victim of poison, not bullet. Page A-6 Detectives capture burglary suspect in Chevy Chase. Page A-14 Forty-two sites considered for Naval Hospital. Page A-16 Wage board member pledges protec- tion to women workers. Page B-1 Senate may act today on Copeland airport bill. Page B-1 Favorable report expected on D. C. real estate bill, Page B-1 D. C. fax bill as well a3 in| Roosevelt may leave city before signing Page B-1 Q. revenue agents closed in on the house | WITH SUNDAY MORNING EDITION D. C, THURSDAY, WAR WILL EXPAND 10 YELLOW RIVER CHINESE ARE TOLD Tokio Advises Warnings to Foreigners, Nanking Circles Hear. FIVE-PROVINCE AREA IS NORTH OF STREAM | Most of China's Troops Pre- sumably Are Still in South- ern Zone. By the Associated Press. NANKING, China, August 6 (Fri- day) —Official foreign circles in the central Chinese capital heard today that the Japanese Army had informed diplomats at Tientsin that Sino-Jap- | anese hostilities would be pushed to the banks of the Yellow River North of the Yellow River lies the | five-province territory in which Japan | desires a dominant economic influ- | ence: Hopeh, Chahar, Shansi, most | of Suiyuan and the northern third of | Shantung. Most of the Chinese cen- {tral government's troops presumably | are still south of the river. Most of | the fighting so far has been in Hopeh. | The information received here said | | the Japanese consul at Tientsin, at| | the instance of the Japanese Army,!| | bad told the senior foreign consul | there “Continued concentration of Chinese | | troops north of the Yellow River means hostilities in that region | “Therefore, the Japanese military | suggests that foreigners in that area | be warned accordingly.” | AMERICANS READY TO FL | e | Consuls Organize Population for Any | Eventuality. | BY the Associated Press SHANGHAIL August 5 —United | States Consular officials in all China | organized the whole American popula- tion tonight to guard their lines and get them out of possible danger zones | while China's generalissimo, Chiang Kai-shek, suddenly proclaimed “We will fight to the death.” By nightfall the month-old clared war brought these ments 1. Columns of motorized Japanese troops rolled north to halt a Chinese | advance from behind China's Great | | Wall. 2. Generalissimo Chiang Kai-shek. | China's “strong man” leader of the | Central Government, flew to Kuling to tell the nation's chief educators that China will resist the Japanese advance unde- develop- AUGUST “even though it means fighting in- | adequately prepared and to the death.” 3. American missionaries, recalling | previous Japanese conquests, feared | | Japanese domination of North China | | would wipe out missionary and educa- | tion work representing millions of | | dollars in American investments, and | years of the hardest toil. 6,000 Americans in Danger. | 4. Consul General Clarence Gauss at Shanghai directed formation of an | American Residents' Emergency Com- | | mittee to safeguard lives of 4,000 Americans there. Similar committees were started by the 2.000 Americans in Chekiang and Anhwei Provinces. and by officials elsewhere. The committee attempted to estab- lish communication with all Ameri- cans in the area, and issued instruc- tions on the procedure of concentra- tion if the crisis reaches Shanghai. Means of evacuation to safer districts were outlined. Other consular dis- | tricts took similar precautions. | (The United States Navy has avail- table 39 ships in Far Eastern waters. | They could be used to protect or evac- |uate Americans from danger zones.) 5. Gen. Chiang met with his min- | isters and army commanders in emer- | gency session at Nanking after his flight to Kuling. 6. In Tokio the Japanese war min- | ister told Parliament he is preparing | further “punitive measures” against | Chinese, and warned the* Japanese | Diet to be prepared for an emergency | session to provide additional funds. | Automobiles carried Japanese troops through Peiping to the north " (See CHINA, Page A-5.) Today’s Star EDITORIALS AND COMMENT. Editorials. Page A-10 This and That. Page A-10 Questions and Answers. Page A-10 Stars, Men and Atoms. Page A-10 David Lawrence, Page A-11 H. R. Burkhage. Page A-11 Mark Sullivan. Page A-11 Jay Franklin. Page A-11 Delia Pynchon. Page A-11 FINANCIAL. Rail bonds improve (table). Cadillac boosts prices. Construction down. Stocks irregular (table). Curb specialties gain (table). Clearings increase. SPORTS. Hildebrand hex prevails as Nats bow to Brownies. Page_ C-1 Yankees and Cubs bear out prophets in pennant races. Page C-1 Jacobs takes over Garden to play old role of Rickard. Page C-2 Young California tennis star to join Capital colony. Page C-3 Great golf future seen for Didrikson by Tommy Armour. Page C-3 MISCELLANY. Washington Wayside. Traffic Convictions. Shipping News, Vital Statistics. City News in Brief. Nature’s Children. After Dark. Dorothy Dix. Betsy Caswell. Cross-word Puzzle. Bedtime Stories. Letter-Qut. Page A-17 Page A-17 Page A-17 Page A-18 Page A-19 Page A-19 Page Page Page Page Page Page B-11 Page B-12 Page C-5 Page C-5 Page C-10 Page C-10 Page C-11 A-2 B-6 B-6 B-6 B-6 | House resumed consideration | | O Bl G S e e e | day, AUTOIST ESC Page C-11 Page C-12 0 4 It Winning Contract. Young Washingten 51 ¢ Foening Star 1937—FIFTY-TWO PAGES. The only and Wire; (8ome retur: ¥¥¥ in Washington wit| Associated Press (#) Means Associated Press. evening paper the News photo Services. Yesterday’s Circulation, 136,899. ns not yet received.) TWO CENTS. TAX RAISE ASKED 10 END AVOIDANCE BY HOLDING DEVICE Congress Group Urges Pro- gram to Plug Loopholes, Raise $100,000,000. {PLAN WOULD STRIKE ‘PERSONAL COMPANIES’ THE CONSTITUTION IS WHAT THE ATTORNEY GENERAL SAYS IT IS! PAGES ACCUSED | IN HOUSING TILT Clark Complains Employes | Used to Distribute Propaganda. BACKGROUND— One of the principal goals at which the Roosevelt administration has aimed is that of adequately housing millions of families living under the poorest of conditions in both urban and rural communities. A principal proponent has been Senator Wagner, Democrat, of New York, who has been umiaver- ing in his demand for an ambitious program to clean up city slums. Op- ponents have attacked the plan as socialistic. Complaint by Senator Clark, Dem- ocrat, of Missouri, that Senate pages were being used to distribute propa- ganda on the $726,000,000 housing bill to Senators’ desks on the floor caused a brief flurry of debate today, as the of the measure. Clark voiced the complaint soon after Secretary Ickes, on the other side of the Capitol, told the House Banking Committee that administration of the housing measure should be placed | under the jurisdiction of the Interior | Department because of its experience | with low-cost housing projects. | Arising to a parliamentary inqu Clark declared a statement from the American Federation of Housing A%- thorities, represented by Langdon Post, opposing the cost limitation amend- | ment placed in the measure yester-| was being distributed to Sena- | tors. He inquired if there was an| authority in the rules under which | Senate employes “can be engaged in| passing out propaganda on the floor.” Called Dangerous. “I have no desire to reflect on Mr. Post. whom I know,” Clark said, “but | this is a dangerous precedent. If it| can be done in this case, we may have proponents and opponents of the anti- lynching bill, of sugar legislation or other subjects doing the same.” Senator Pittman, Democrat, of Ne- vada, presiding, said he knew of no rule or precedent on the subject, but expressed the belief employes would be subject to censure unless they were asked to distribute the material by a Senator. Clark interposed that he had no desire to criticize the page boys. Senator Wagner, Democrat, of New York, author of the housing bill, said that if distribution of the statement was improper, “I take the responsi- bility rather than any employe.” He added he thought the statement was information the Senators would like to have. Would Offer Statement. Minority Leader McNary of Oregon said the statement of the New York Senator did not completely cover the matter and that if no rule against it exists, he will offer onejat the next meeting of the Rules Committee that (See HOUSING, Page A-12.) APES CROSSING DEATH Landover Man Leaps From Stalled Machine Just Before Train Strikes. Py a Staff Correspondent of The Star. LANDOVER, Md, August 5— Clyde White, an employe of the Washington Gas Light Co. living here, narrowly escaped death early today by leaping from his stalled automo- bile a few seconds before the machine was demolished by a fast passenger train on the tracks of the Pennsyl- vania Railroad at the Landover cross- ing of the Marlboro road. Bringing the machine to a stop as he came to the crossing, White said he started up again and his engine stalled on the tracks. While he was attempting to start the motor again he heard the roar of the fast train and jumped to safety just before the train crushed his car. Before the wreckage had hardly had time to settle back onto the tracks, White told neighbors, another fast train bore down upon it on an- other track, but the engineer was sble to bring his train to a stop be- fore striking the wrecksge. ] | from tubercular | would perform an operation as soon Physicians W ait Death of Woman To Deliver Baby Court Overrules Hus- band’s Objections | | to Operation. By the Associated Press PHILADELPHIA, August S—Ph_\'-‘ sicians at the Philadelphia General Hospital stood by today waiting for | Mrs. Mary Boccassini to die so they | may deliver an expected baby | Mrs. Boccassini, 27, suffering meningitis, for which they said there is no cure. The doctors told the husband, Dom- inick, of the situation and that they as death came to the mother, to| save the child. They hoped the baby would arrive before the mother passed away. | The husband objected, telling the doctors that if the wife must die to let the baby go with her. The physicians sought legal advice and the matter was taken before | Judge Harry E. Kalodner. He de- | cided that when the time comes ihe Even | an unborn babe has its rights,” he | said. BOY ELECTROCUTED IN ALEXANDRIA HOME Plumber’s Assistant, D. C. Resi- dent, Found Dead, Electric Cord in Hand. BY a Staff Correspondent ot The Star. ALEXANDRIA, Va. August 5.—Ap- | parently electrocuted while at work | in the basement of an Alexandria, | Va,, residence today, Milton Pearson, | jr., 18-year-old plumber’s assistant, of 237 Eleventh street southeast, Wash- ington, was found dead this morning by a co-worker in the home at 220 West Howell avenue. The youth was | pronounced dead after the Alexandria Rescue Squad attempted to resusci- tate him for an hour and a half. According to Edward Melton, 31, of 616 Mount Vernon avenue, .Alexan- dria, who had been installing drain- age pipes with the victim, young Pear: son was clenching an electric exten sion cord in his right hand when dis- covered. Police believe that the youth, wh was sitting on the wet floor of the cellar, received a shock through a | short circuit or by touching some ex- posed part of the wire. An inquest will be held in the Alexandria Police Court at noon tomorrow. Young Pearson is survived by his | parents, Mr. and Mrs. Milton T. Peac- son, and two brothers, Freddie, 12, and Robert, 11. Pearson is a mechanic in the Pullman Co. The mother is em- ployed in the General Accounting Of- fice. | | | Wallace En Route Here. CALDWELL Idaho, August 5 (#).— After speaking here yesterday after- noon and at Boise last night, Secre- tary of Agriculture Henry A. Wallace was en route to Washington today. Wallace came West two weeks ago for a vacation at his Colorado Summer home. POLICE CONSIDER NEW SAFETY PLAN May Expand Force to Make Public “Conscious™ of Traffic Rules. A drive to make motorists “police conscious” by strengthening the force of patrolmen and motor cycle officers in the city’s most hazardous sections appeared likely today as a possible cor- | rective measure in the latest war on | careless driving in the District. Such a plan has not been definitely decided on, and every conceivable rem- | edy for the epidemic of highway | crashes here is being considered by traffic officials. | Aiarmed by the mounting fatality | and casualty toll, the Police Depart- ment has been instructed to redouble its vigilance for traffic violators in an | effort to reduce the number of mis- | haps. A special order issued by Acting Police Chief L. 1. H. Edwards warned officers to give particular attention to enforcement of the regulations gov- erning turns from lanes, hand signals and parking near busy intersections. Blamed for Majority. Violation of these regulations, it was emphasized at a meeting yesterday of the Commissioners, traffic heads and police officials, has resulted in a ma- | jority of the accidents reported this year. Another development interpreted as a safety move was an order from the | police department for 50 motor cycle radios to be installed as soon as the consignment is delivered, expected to be within the next two months, ‘With this modernization of the mo- tor cycle corps it is hoped by officials that the number of hit-and-run ac- cidents will be diminished, since a motor cycle could be dispatched to the scene or head off a fleeing mo- torist much more quickly than a scout car, Study Being Made. Pointing out that a study of “danger areas” is being made, Traffic Director | William A. Van Duzer stressed that | most of the accidents this year have occurred in the section controlled by | the first, second and third precinets or on main arterial highways in other zones. If it is feasible to withdraw officers | from other precincts, the force in the | three carrying the heaviest traffic loads may be increased to make the | driving public pay more attention to regulations. In connection with the purchase of the motor cycle radios, Inspector Ed- wards said they also should prove val- " (See SAFETY, Page A-5.) KIDNAPING CASE RESTED Ten Defense Witnesses Called in O’Connell Case. BINGHAMTON, N. Y., August 5 (#) —The defense in the trial of eight men for the 1933 kidnaping of John J. O'Connell, jr., rested its case today after calling 10 witnesses in surre- buttal of Government testimony. Federal Judge Frederick H. Bryant recessed court until tomorrow and ex- cused the 14-man jury until Monday, | Motions will be argued tomorrow and summations are expected to begin Monday morning. Papa Dionne Gets Dander Up About Emilie’s Sore Throat “CALLANDER, Ontario, August 5 (Canadian Press). — Papa Oliva Dionne got his dander up today about quintuplet Emilie’s sore throat. He said he read Dr. Allan Roy Dafoe's statement that Emilie caught her cold from an ‘“outside source” and made up his mind that Dr. Dafoe “was blaming us because Emilie got sick.” Besides, the quintuplet father com- plained, “we didn’t even know she had it until some of those tourists told us Monday.” Dr. Dafoe answered that he didn’t mean it that way. Although he said he was certain the infection came from “some one outside” the nursery, he added that “I certainly didn’t say one of the Dionne fdmily.” Papa Dionne, who lives with his wife and six other children just across the road from the nursery, explained that he and Mrs. Dionne hadn't vis- ited the quintuplets for more than & ¢ week before Emilie caught cold. Fur- thermore, he said, none of his family had been sick. . The father said that when he heard only four of the quints were being “shown” Monday he hurried to the nursery. “A nurse told me Emilie was sick with & sore throat and had a little fever,” Dionne said. “I saw her through a screen.” It stood to reason, the father ex- plained, that strangers who might be disease carriers brought Emilie her cold on one of the tourist excursions to the quintuplet nursery. Also, Dionne said, he found out once that Yvonne had mumps and he wasn't told about it. “That isn’t true,” Dr. Dafoe replied. Unaware of the squabble, Emilie was able to sit on the veranda today. Dr. Dafoe said her temperature was back to normal and that she was getting along well. . i Stiffer Treatment for Incorporated Yachts and Estates Sought by Committee. BACKGROUND— Failure of Federal revenues to come up to erpectations led to congressional investigation to de- termine reasons for tar shortages Under direction of President Roose- velt, the probers went into taz- evasion tactics of the wealthy dragged many mnotables into the limelight. By the Associated Press A Senate-House Tax Committee rec ommended today drastic increases in domestic personal holding company taxes as one means of preventing tax avoidance The committee, proposing for enact- ment at this session a $100,000,000 eight-point program of legislation to lug income tax leaks mended an innovation in the taxation also recom of foreign personal holding companies. It suggested that undistributed net income of such companies should ba figured im the gross income of the American owners of the companies just as if it actually had been distributed to them Treasury officials, who co-operated with the joint committee in making an investigation which brought in the names of many prominent citizens, es- timated roughly that enactment of the committee’s recommendations would mean an increase of $100.000,000 in Federal revenues. Higher Taxes on Yachts. In additiorn to the domestic and foreign personal holding company pro- posals the committee recommended stiffer tax treatment for the following methods used by wealthy persons to reduce their taxes: Incorporated yachts and country estates, incorporation of personal talents (such as acting), arti= ficial deductions for interest and busi= ness expense, multitrusts, non-resident aliens and artificial deductions for losses from sales or exchanges of prop- erty. Represeentative Vinson, Democrat, of Kentucky, said the committee had left unchanged provisions permitting deductions for racing stables and losing wagers. The committee report to the House and Senate followed an investigation extending over several weeks and un- dertaken at the request of President Roosevelt. The President said in a message to Congress that a compara- tively small number of wealthy persons was reducing tax payments by methods which he considered should be checked by legislation. During the investigation the Presi- dent’s son James, who also is one of his father's secretaries, appeared on the witness stand to deny that he ever had been connected with a foreign per-~ sonal holding company, a connection which had been hinted at by Repre- sentative Fish, Republican, of New York. The committee proposed to lift the surtaxes on domestic personal holding corporations to 65 per cent on the un- distributed net income not in excess of $20.000 and 75 per cent-on the amount above $20,000. The present rates are 8 to 48 per cent. “No Low Minimum Rate.” “No low minimum rate can be pro- vided,” the report said, “without en- abling wealthy individuals to escape | substantial taxes through the forma- tion of multiple personal holding companies.” In addition, the committee sug- | gested that deductions allowed such | companies be altered broadly, and some revoked entirely. With regard to taxing undistributed net income of foreign personal hold- ing companies as though already dis- tributed to American owners, the com- mittee said it was recommending “a method of taxation which is a de- parture from any previously used with respect to corporate income.” “The committee feels, however,” the report added, “that this innovation is necessary to protect the revenue and prevent further use of one of the most glaring loopholes now existing.” Thereupon the committee proposed that tax laws should be revised to en- courage dissolution of foreign personal holding firms “as promptly as pos- sible.” The major recommendation here was that in the liquidation of any for- eign personal holding firm not com- pleted by the end of this year, 100 per cent of the gains from the liquidation should be taken into account in com- putting net income, Under existing law it is possible for as little as 30 per cent of the gain to be taken into account in computing net income. Asserting it found no jus (See REPORT, Page A-5 GRAVE DIGGERS STRIKE Burial of Ten Bodies Halted in Closed Shop Demand. KANSAS CITY, August 5 (P).—A strike of grave diggers halted burial of the dead in Kansas City today. Mortuary receiving vaults and ceme- tery abbeys and mausoleums were used as temporary shelter for 10 bodies. The grave diggers, members of an American Federation of Labor affiliate, ordered pickets to the city's cemeteries. Their demands included a closed shop, union recognition, a 20-cent-an-hour wage increase and an eight-hour day. Approximately 150 men were sffected by the strike, 1