Evening Star Newspaper, February 27, 1940, Page 1

Weather Forecast rain ‘Temperatures today—Highest, 52, at 3 pm.; lowest, 26, 'at 1:15 a.m, T o e By m"hl. 2 Closing' New York Markets, Page 14, ‘88th YEAR. No. 35,000. Roosevelt Plea |Roosevelt Urges For Canal Locks Funds Refused Report to House Denies 15 Million For Work in Panama B the Associated Press. ‘The House Appropriations Com- mittee, whacking away with its economy ax, turned thumbs down today on President Roosevelt’s re- quest for immediate appropriation of $15,000,000 to start a third set of Panama Canal locks. Instead, the committee recom- mended an $850,000 fund for pre- paring plans for the locks, assert- ing that “in the absence of such plans and specifications the ulti- mate cost must largely be con- Jectural.” The committee also followed up the House's recent action in refus- ing "to ‘appropriate $1,000,000 for a harbor project at Guam in the mid- Pacific by rejecting a $700,000 re- quest for dredging the channel at Wake Island. on the route from Hawail to Guam. “It feels constrained,” the com- mittee said, “to view the proposed Wake harbor improvement as part of a projected naval seaplane base there, estimates for which have been passed over twice by the House. Measure Sent to House. Both the Panama Cargl and the ‘Wake items$ were part of a $203472,- 867 appropriation bill for the War partment’s civil functions. The committee reported the measure to the House for action tomorrow. Although the President had re- duced the estimates for these func- tions, which include river and har- bor work and flood control, to $220,~ 082250 from the $305,12538¢ ap- propriated for the same purpose this ,‘;ll‘. the committee went still fur- er. It cut the total of the bill $16,- ©09,683, chiefly in the Panama and Wake items, below the presidential requests. ‘The $70,000,000 budget estimate for flood control, exclusive of the lower Mississippi, the Sacramento snd San Joaquin Rivers, was ap- proved in full, as was a $30,000,000 item for flood control on the lower Mississippi. . The sum sanctioned by the Com- mittee for Rivers and Harbors, in- cluding both improvement and maintenance, was $66,721,510, repre- senting a cut of $2,051,540 below the executive request. This cut was made up of the proposed.$700,000 for Wake and $1,351540 slashed from main- tenance funds. . Project Pushed Too Rapidly. As to the Panama Canal, the com- ~nm:m‘m-dm‘mu Jocks and a third was proposed both as s national defense measure and to meet future cornmercial needs. “The proposition,” the committee #aid, “is to commit the Government to a vast and costly undertaking two years in advance of the time when detailed plans.and specifications will be ready for accomplishing the structural features. “In the absence of such plans and specifications, the must largely be conjectural. “The project is urged at this time a5 a jdefense measure, but a project that cannot be completed for six | years has questionable standing as sn urgent defense measure. “Moreover, we are now engaged in building -protective works around existing canal facilities at an esti- mated cost of $39,570,000. If this work does not give the sought pro- tection, an auxiliary waterway elosely paralleling the present one and similarly protected would be of doubtful value.” The committee approved a $19,- 000,000 appropriation and con- tractual authority of $4,500,000 for continuing the protective works pro- gram for the canal. The Senate yesterday approved & $107,079,000 appropriation bill for the State, Commerce and Justice Departments. The total was $146,- 660 less than the House figure and represented an aggregate reduction of $2585010 below the President’s budget. Salary Deletion Blocked. Administration forces blocked a group headed by Senator Lodge, X blican, of Massachusetts, from deleting the $17,500 salary for the United States Ambassador at Mos- Sow. Before approving the bill, the S8enate rejected, 38 to 25; a proposal to increase from $384,500 to $546,500 s fund for business.experts on Sec- yetary of Commerce Hopkins® staff and for the promotion of Latin trade. Senator Lodge opposed the in- erease with the contention that the extra money would be used to em- ploy “twenty or more business ex- perts” who would be a “fifth wheel” on the governmentsal machinery. Deficiency Bill Passed. The House also passed an appro- pristion Lill yesterday, voting $90,- 069,139 for various deficiency funds, Included was $60,000,000 for addi- tional farm benefit payments. The bill’s total was $4,020,704 below the budget estimate. ‘The vote making $60,000,000 of next vear’s agriculture fund avail- able immediately to keep crop con- in response bl ogram from President Roosevelt, who is vaca- tioning in Southern waters. ‘Members of the House Appropria- tions Committee reported that the President had approved the trans- action in order to replenish the reg- ular $500,000000 benefit payment fund which has been depleted by increased farmer compliance with grop -control plans. A few minutes ater they wrote the $60,000,000 to »$30,000,130 deficiency bill designed to meet emergency needs of various Government agencies until July 1. Committee members announced An agreement had been reached with that an equal amount be deducted from the 1941 Farm A tion Bill Retore ‘the Benate Appropeistiens ‘Committee, ultimate cost | WASHINGTON, D. C., TUESDAY, - FEBRUARY 27, Lasting Peace In Letter Taylor Gives Pope Voices Hope of Accord Based on Freedom And ‘Integrity of All Nations Under God’ By the Associated Press. VATICAN CITY, Feb. 27.—Myron C. Taylor, special envoy from Presi- dent Roosevelt, today handed Pope Pius XII a letter expressing the President’s hope for “re-establish- ment of a more permanent peace on the foundations of freedom and assurance of the life and integrity of all nations under God.” The letter presented Mr. Taylor to the American President’s “old and good friend,” who as Eugenio Car- dinal Pacelll visited him in the United States in 1936. The President told the Pope he hoped “the common ideals of re- ligion-and humanity itself can have a united expression for the re-es- tablishment of a more permanent peace. Secrecy Marks Final Inspection of Canal By Roosevelt Cruiser Carrying Party Ordered to Proceed To Undisclosed U. S. Port By the Associated Press. BALBOA, Canal Zone, Feb. 27— The cruiser Tuscaloosa carried Pres- ident Roosevelt through the Pana- ma Canal today with orders to pro- ceed immediately to an undisclosed United States port. P The Chief Executive, complbting a first-hand tour of all Canal Z8ne fortifications, held conferences with numerous military, naval and avia- tion officers as the cruiser steamed from the Pacific side of the Canal to the Caribbean end. ‘Augusto Boyd, President of Pan- ama, and three of his cabinet mem- bers also were received on board. The Tuscaloosa arrived here at 7 a.m. escorted by a squadron of 18 Army planes. As she appeared at the Pacific entrance of the Canal, the President was given a 2l-gun salute from Fort Amador, where heavy coast artillery defenses are located. Inspects Army Bases. The fort was the first stop of & tour the President made of the Pacific defenses. He also inspected the Armys Albrook Field, Fort Clayton, where Field Artillery units are stationed, the naval ammunition depot, Howard Field, the new $38- 000,000 Army flying fleld on which construction has just begun, and Fort Knobbe,, whose big guns com- mand the Balboa Harbor. ‘While were permitted to accompany the Chief Executive on his earlier ins) of the Canal fortifications on the Atlanti¢c side, they were barred from today’s tour. It was made in the greatest secrecy. Before disembarking at Balboa the President talked briefly with the two rival candidates for the Panamanian presidential elections in June. The rivals, Arnufio Arias and Ricardo Alfaro, both said the visits were merely social calls. After his tour of the fortifications the President returned to the Tus- caloosa, which started through the Canal preceded by the destroyers Lang and Jouett. Those attending | the conferences en route were the same military and naval command- ers who talked with the President when he traversed the Canal in the opposite direction 10 days ago. President Expected To Return Saturday President Roosevelt is expected to return to Washington late Satur- day, it was said at the White House today, after his vacation cruise in southern waters. Carrying out an. annual custom, the Chief Executive will attend a special church service at St. John's Episcopal Church, Sixteenth and H streets N.W. Monday. Members of his cabinet, of the Supreme Court and congressional leaders have been invited to atténd the service, held in observance of the seventh anniver- sary of Mr. Roosevelt's first inaugu- ration as President, on March 4, 1933. At that time Mr. Roosevelt attended such a special service at St. John’s. = ° By LELAND STOWE, Chicago Daily News Poreign Corerspondent. HELSINKI, Feb. 27—Hehind the Finnish announcement of the abandonment of the Koivisto Islands, near the western coast of the Karelian Isthmus, lies & remark- able story of heroism and sustained military accomplishment against enormous odds. For almost three months the Finns’ Koivisto batteries held the Russians to an absolute standstill in the western shore: of the isthmus. Now it is learned, for the first time, that the Koivisto Islands’ garrisons were mldn(g small and that approximately I\ expert Finnish artillerymen held up the extreme left wing of an army of 300,000 for three months. In orders to blow up their batteries wlth?nv. e Reluctantly, obeyed, although officers and had pleaded to be allowed to. But the Finnish high ly decided to make no folly when men of such- ¥ The Vatican released the Presi- dent’s letter to the Pope together with one from Mr. Roosevelt to Mr. Taylor naming him his special am- bassador to the Pope. Both messages spoke of Mr. Tay- lor’s job as to serve as “a channel of communication” between the Président and the head of the Roman Catholic Church. The President told the Pope he was sending Mr. Taylor “In order that our parallel endeavors for peace and the alleviation of suffer- ing might be assisted.” The letter spoke ‘of Mr. Taylor's “humanitarian efforts in behalf of those whom political disruption has rendered homeless,” referring to his work as chief of the Intergovern- .. (8ee TAYLOR, Page Two Big Battleships Damaged by Nazis, Churchill Admits Barham Torpedoed, Nelson Hit Mine, Commons Told By the Associated Press. LONDON, Feb. 27.—Two of Brit- ain’s largest battleships, the 31,000- ton Barham and the flagship Nelson, 33.950 tons, are under repair in naval yards after being damaged by enemy action, Winston Churchill disclosed in the House 6f Commons today. ‘The first lord of the admiralty an- nounced also that five new battle- ships would join the fleet soon and predicted an intensification of Ger- man efforts to break the British sea stranglehold. Mr. Churchil] said the Barham, hit by a torpedo in September, and the Nelson, damaged by a magnetic mine in December, soon would be ready to rejoin the fleet. The secret of their crippling had been well kept, he said, and was learned by the Germans only after it had no dmportance. In a detailed statement to Com- mons the first lord announced that the British Navy had not had the use of Scapa Flow, the- great naval base north of Scotland, since the battleship Royal Oak was sunk there by a German submarine October 13 with a loss of 810 lives. Mr. Churchill said that Germany “lfn &t least 35 submarines during e first the last two miralty head, said “the spirit of our people is behind the Royal Navy.” The five new battieships—giving Britain 16 battleships, the largest battle fleet in the world—are the George V class, Mr. Churchill said. In addition Britain has three battle cruisers. Britain’s' five new battleships are 35,000-ton craft each carrying 10 14-inch guns and 16 guns of 5.25- inch caliber. They are designed to speed at above 30 knots and are especially armored against air attack. They carry no torpedo tubes. Mr. Churchill’s announcement was the first official clue to the time these craft would be put in service. ‘They all were launched last year as follows: King George V, February 21; Prince of Wales, May 3; Duke of Rain Tonight Forecast, Clearing Tomorrow A wet snow, rolling into Wash- ington from the south this morn- ing, was expected to turn to rain late today and continue through the night. Snow began falling shortly after 8:30 am., with the temperature at 28 degrees. By 1 p.m. less than an inch of snow had been recorded, while the thermometer read 30 de- grees. ‘Tomorrow will be clear and colder, the Weather Bureau said. L Today's low of 26 degrees was reached at 1:15 am. 3 100 Koivisto Gunners Held Off Red Army Almost 3 Months capacity could be far more useful elsewhere. It is understood that vir- tually the entire garrison escaped by night across the ice to the southern coast of Finland. The Finns are renowned in Eu- rope as the world’s most accurate artillerymen and the picked gunners on the Koivisto Islands had already set a record which gunmen have rarely equaled in modern times. A tiny and isolated little band, they had not only held the Red Army’s extreme left wing at bay since the end’ of November. They had sur- vived the combined assaults of Soviet desperately again and again to “WITH SUNDAY MORNING EDITION Welles Confers With Envoys of WarringNations Leaves Rome Tonight For Berlin Talk With Hitler By the Associated Press. ROME, Feb. 27~Sumner Welles, President Roosevelt’s special in- vestigator in Europe, today began a series of talks with ambassadors of belligerent powers by conferring for half an hour at the United States Embassy with Sir Percy Lo- raine, Britain’s envoy to Italy. The talk preceded a luncheon at which Mr. Welles was. to meet both 8ir Percy and Andre Francois-Pon- cet, French ambassador, at the res- idence of William Phillips, United States Ambassador. Later in the afternoon his pro- gram called for a meeting at tea with Hans Georg Viktor von Mack- enson, Gerraan ambassador, Prom these talks he was expected further to round out first-hand in- formation on what is going on in Europe before boarding a train for Berlin shortly after midnight. There he is expected to be received by Reichsfuehrer Hitler and Foreign Minister Joachim von Ribbentrop. May See Duce Again. His itinerary after leaving Rome has been fixed as Berlin, Paris, Lon- don and then home by way of Rome. Mr. Welles said he would break the Rome-Berlin trip for a night's rest in Berne, Switzerland, and partly to talk with the American Minister there. He is expected to proceed to Berlin Thursday. He told reporters that Mussolini “was good enough to invite me to call upon him upon my return to Rome. I hope to be able to accept that opportunity.” President Roosevelt's message which he handed to Il Duce yester- day, Mr. Welles added, was merely a personal letter presenting him to the chief of the Italian government. “I.have been very deeply gratified by the reception of the Italian gov- ernment,” Mr. Welles told a press conference at the American Em- “The conversations have been very helpful.” Declines Further Comment. Beyond that, he declined to com- ment, except to remind questioners he was not empowered to make any mouh or commitments in Eu- and had made none in his talks by re- .| Pedro Leao Velloso, s personal friend from the days when the Un- dersecretary of State was in charge of Latin American affairs at Wash- ington. Fascist newspapers, which at first had given scanty notice to Mr. Welles' mission here, carried front- page articles today on his “most cordial” conversations with Premier Mussolini and Count Ciano. They printed an Italian communique on the meeting with Mussolini without giving any inkling of the matters discussed, however. Hitler Believed Unlikely To Give Welles Peace Plan BERLIN, Feb. 27 (#).—Informed German circles expressed the belief today that Adolf Hitler would tell Sumner Welles in no uncertain terms that the Reich demands hegemony on the European conti- nent and return of her World War lost colonies. The Fuehrer, it was generally be- lieved, would propose no peace plan to President Roosevelt’s envoy. From the insistence of recently inspired press articles that non- belligerents maintain complete neu- trality rather than mere official neutrality, the opinion was advanced that Hitler and the American Undersecretary of State would dis- cuss the preservation of “more com- plete neutrality” by the United States. The view was expressed in in- formed quarters that Germany would insist on such “more complete neutrality” “before there could be any improvement in relations be- tween the Reich and United States. In November, 1938, the ambassa- dors of both nations were called home, presumably to report on con- ditions arising from the intensified Nazi anti-Jewish campaign of that time. ing Star > - 1940—THIRTY-TWO PAGES, *%* ‘The Boy Stood on the Burning Deck—' House Limits Debate On Finnish Loan Bill To Speed Vote Today Opposition Expected To Use of Money For War Supplies BACKGROUND— Passed by Senate two weeks ago today after delay in two committee hearings, bill to en- able Finland to get $20,000,000 ‘more non-military Government credit here was approved by House Banking Committee last week after rejection of proposals to lend Finns momey to buy needed war supplies. By J. A. O'LEARY. ‘The bill to make possible $20,000,- 000 of additional credit to Finland cleared its first hurdle in the House this afternoon when that body adopted a special rule likely to bring a final vote by evening. The rule limits to four hours de- bate on the measure, ‘would give the Export-Import Bank afs- cretion to advance the Finns that amount out of & total new authori- zation of $100,000,000 to encourage American exports. The rule was adopted without a record vote. Commerce Boost Desired. Chairman Sabath of the Rules Committee declared other big world powers spend millions annually to expand their foreign commerce, and pointed out the Export-Import Bank is seeking to do the same thing for American industry and agriculture. Representative Fish, Republican, of New York, criticising the fact that the bill does not make another loan to Finland mandatory, an- nounced he will offer an amendment to make sure at least $20,000.000 more will be advanced to that little republic. The bill as reported leaves the question to the discretion of the lending agency. Fish Favors Loan as Gift. “I would like to make it a direct gift to Finland, but I don’t believe that would be possible under the parliamentary situation,” said Mr. Fish. He said he would do the next best thing by offering ‘to earmark a loan to Finland. < Representative Allen, Democrat, of Pennsylvania asked if he had in mind an unrestricted loan. Mr. Fish said he doubted that the House would be willing to remove the re- strictions in the bill on the use of the loan. Mr. Fish was applauded by the Democrats when he praised Presi- dent Roosevelt’s recent speech to the American Youth Congress in which he sympathized with Finland. A moment later he also commended the record of Federal Loan Admin- istrator Jesse Jones, who supervisea the Export-Import Bank, and sug- gested Mr. Jones was the best quali- fled man the Democrats had for the presidential nomination this year. The New York Republican con- fined his opposition to the bill to (See FINNISH LOAN, Page A-3.) Summary of Today’s Star Page. Amusements, Obituary B-16 | Radio Comics __B-14-15 | Sports __A-10-12 Editorials _._A-8|Society .._.._B-3 Finance _._.A-13| Woman’s Page, Lost, Found, B-11 B-10 Foreign Roosevelt letter to Vatican urges sta- ble peace basis, Page A-1 Two Nazi ships sunk by allied Arctic. patrol. Page. A-6 mmmund' vt':lx'“eyxmpflm here. 4 Stadium here not in accord with annulm. Page B-1 “Dictatorial to A. B. C. Board. . Page B-1 Liquor dispensary opposed by lawyer. Page B-1 House approves $105420 D. C. de- ficlency items. Page B-1 Editorial and Comment This and That. Answers to Questions, Letters to The Star, David Lawrence. A-8 A-8 A-8 A-9 A-9 A-9 S A-9 Constantine Brown. A-9 Sports Crack milers to test Gordon, Philly . W High Sciool baskaters seking A-11 Page A-12 S B (sembly, 88 to. 65, approved 6 Parisians Hurt By Shell Fired At Nazi Planes By the Associated Press. PARIS, Feb. 27.—Six Parisians were wounded by an anti-aircraft shell fired last night at German planes scouting the environs of Paris for massed squadrons that followed them over the capital area early today. The air-raid incident, most seri- ous of its kind since three persons [ were wounded November 13, sent one of the victims, Leon Manach, 39, to a hospital for an amputation of his right leg. When the massed Nazi planes followed the scouts later this morn- ing, it prompted the first air-raid alarm of the year. The exploding shell, digging a hole 2 feet deep in the street, pelted buildings with frag- ments. It fell near the Left Bank’s Censier-Daubenton subway station. The persons wounded were in ‘the Rue Mirbel, a Latin quarter thor- oughfare. All were hospitalized, but only Manach remained. s D. C. Reorganization Hearings Are Slated To Open Thursday Local Suffrage to Be Included in Study By House Group Hearings on reorganization of the District government will open at 10:30 a.m. Thursday, a special sub- committee of the House District Committee decided today after an executive meeting with the Com- missioners and their “kitchen cab- inet.” Local suffrage—the right of Dis- trict citizens to elect an advisory or administrative municipal body—will be _considered during the hearings. Chairman Kennedy of the sub- committee announced the hearings after the session with District offi- He expressed hope the hearings could bg concluded in 10 days and action on reporting a reorgan- ization bill in time for passage at the present session of Congress, Procedure Decided. It was agreed at the meeting, Mr. Kennedy said, that the various pro- posals for reorganizing the District government would be taken up in this form: First, structual changes in the municipal setup; second, ad- ministrative changes; third, local suffrage. The Commissioners and _other officials will be heard first, Repre- sentatives of trade and civic or- ganizations then will testity, to- gether with any other citizens who care to be heard. Mr. Kennedy emphasized, how- Police Battle Wave 0f Crime Capped by Liquor Store Killing Proprietor Is Slain By Two Bandits; Reward Offered A vigorous policegdrive to stamp out Washington's current wave of crimes of violence—climaxed last night by the murder of a liquor store proprietor by two colored holdup men—was under way today. Maj. Emest W. Brown, superin- tendent of police, ordered police re- inforcements into the areas out of which the criminals are believed to be operating and declared “every ef- fort will be made teo stop this crime wave.” Plainclothesmen were assigned to duty tonight in the second and thir- teenth precincts — which center around a station house at Ninth and U streets NW.—and cruisers were ordered to patrol streets where rob- berles have occurred recently. Police Combing City. Special squads were searching the city, meantime, for the dead-eye marksman who put a bullet through the heart of Herman Sirkis in the course of a gun battle that followed the robbery of Herman's Liquor Store, at 4824 Deane avenue NE. at 8 o'clock last night. One suspect was arrested during the morning and was being ques- tioned at headquarters. Detectives were not hopeful of a quick solu- tion, however. The reward on the heads of the two who participated in the holdup was raised to $200 during the morn- ing. Police had posted a $100 re- ward and a similar amount was offered by a wholesale liquor dealer. Conference Called. Capt. Ira Keck, acting chief of detectives, was summoned to Maj. Brown’s office to report on progress being made in the investigation of the murder, as well as the series of robberies, assaults and safe-cracking jobs which have occurred during the past few days. Capt. Keck said that a special watch- was being kept at all local hospitals in the belief that the bandit who killed the liquor store owner may apply for treatment of a wound sustained in the battle last night. Mr. Sirkis, who was 42 and who roomed at 1520 Neale street N.E., was a former Baltimore policeman and had vowed always that he would shoot it out with any one who at- tempted to hold him up. He kept that vow, but was killed by a gunman who shot straighter than he did. Descriptions Secured. Police had obtained complete de- scriptions of the two bandits—who got away with a little more than $50 and several bottles of whisky— from three colored boys who saw them. From Calvin Pendleton, 17, col- ored, of 1056 Forty-eighth place (§ee REORGANIZATION, Pg. A-2) (See MURDER, Page A-3.) New York Legislature Votes To Seek Ban on Third Term BY the Associated Press. ALBANY, N. Y., Feb. 27—Repub- licans of Presidenit Roosevelt's home New York City Democrat, asserted the sponsor of the resolution, Senator John J. McNaboe, New York City Legis- | Democrat, was “apparently trying to and permitted the resolution to wlm:wmm-vmm?“ action today, 82 to 47, amid cheers from the majority and boos from the minority group. \ * “It is the hope and prayer of Re- publicans throughout the Nation that Mr. Roosevelt won’t run again,” shouted Democratic do a signal service for the Nation.” “But wouldn'’t it carry far more weight with Congress and with the President,” laughed Mr. Davidson, “if Mr. McNaboe wrote a personal request on this subject to Mr, Roose- Third Term Chief Issue In New Hampshire Primary " Established in 1852 Most people in Washington have The Star delivered to their homes every evening and Sunday morning. UP) Means Associated Press, THREE CENTS. Tax Exemption Plan Alarms D. C. Officials Freeing Payers of A State Income Leyy Would Slash Revenue BACKGROUND— Persons “domiciled” in District were subject to personal income taz in act of Congress last July. “Domicile,” Corporation Counsel Seal ruled, means residence for indefinite period and makes Fed- eral employes living here with voting residence elsewhere liable to taz. Some charge this will re= sult in triple tazation—Federal, District and State—in many in- stances. Municipal officials today voiced fears a considerabie aent would be made in anticipated receipts of the District income tax if Congress adopted the proposal of Representa- tive Cooley, Democrat, of North Carolina to exempt from the levy all persons who pay a State income tax “back home.” Maj. Daniel J. Donovan, District auditor and budget officer, said “it is impossible to determine the num- ber of persons who would be exempt under such an amendment. I be- lieve the loss would be considerable, but we do not know.” Some idea of the magnitude of the problem presented by Washingto= nians having legal residence in the States is obtainable from an estimate Jf the Absentee Voters’ Bureau of the District. The bureau, which aids Washington residents in voting where they have legal residence, to- day stated that at least 68,000 per- sons who live in the District vote in States. Budget Difficulties. Already, some city officials ex- plained, the District was facing diffi- culties in arriving at a balanced budget for the next fiscal year be- cause of uncertainty as to just how much revenue would be produced by the personal income levy and the corporate income tax. Estimates for these revenues have been revised more than once since the law was enacted last year. Much greater uncertainty would result from adop- tion of the Cooley exemption plan, they said. Maj. Donovan emphasized that the District now is facing a finan- cial problem by reason of the plan to permit a split in payment in the District’s income levies, although he Was not arguing against the wis- dom or fairness of this 'move, Under present law these taxes must be paid in full by March 15, but Congress has passed an amendmént to permit semi-annual payments, to be made by April 15 and October 15. The measure now is awaiting the signature of the President. Million Deficit Possible. District officials generally favored this change, but Maj. Donovan said it would mean that if all taxpayers take advantage of the deferred sec- ond-half payment the District would fail to receive in this fiscal year (which ends June 30) as much as $1,600,000 that would be collected in the next fiscal year. If this happened, and District officials be- lieve that not all taxpayers would take advantage of the semi-annual payment plan, Maj. Donovan esti- mates the present fiscal year would end with a deficit of more than $1,000,000, instead of a previously estimated surplus of some $500,000. To meet such an exigency, Con- gress has authorized the Treasury to make any necessary advance of funds. Maj. Donovan explained, however, that this would not alter the fact that the District was poste poning from one year to the next the collection of sizeable amount of revenues. Some District officials today turned to the Pond report on & study of District taxes in the hope of finding some light on how much revenue the District might lose if the Cooley plan were adopted. The Pond report proposed & combina- tion income and sales tax plan as a substitute for the old business- privilege tax and the old intangible personal property levy, both of which have been repealed. The Problem. These district officials quoted the lol!nwing_ paragraphs from the Pond “Data compiled by the Civil Serv- ice Commission on 93,047 positions in executive departments in Wash- ington are of some sssistance here (this referring to Pond Committee estimates of possible income tax receipts to the District and the Federal employe figure was for the year 1936). Assumed that these people represent 40 per cent of the taxable income derived from within the District due to the probability that a larger proportion of .non- Federal salaries would be below $1,500, & fact which would offset any failure to make adequate allowance their exemptions for dependents would counter: balance the lower CONCORD, N. H,, Feb, 27 U~ | the New Hampshire's first-in-the-Nation Democratic tial