Evening Star Newspaper, March 21, 1940, Page 1

Weather Forecast Increasing cloudiness; light rain or snow late tonight and tomorrow; not quite so cold tonight; lowest about 3¢. Temper- atures today—Highest, 41, at 1 p.m.; lowest, 29, at 6:45 am. From the Dnlua Full Closing New York Markets, Page 20. States Weat) etails on Page A-2. r Bureau report. 88th YEAR. No. 35,023 ch WITH SUNDAY MORNING EDITION Reynaud Forms New Victory' Cabinet Premier to Retain Foreign Ministry; Daladier War Chief CLOSER SOVIET TIE to Nazi- @ Fascist axis expected in Berlin; Russian envoy believed carrying message to Stalin. Page A-4 AMERICAN VOLUNTEERS con- tinue to arrive to aid Finland; unit stays indefinitely, assigned to patrol and reconstruction work. * Page A-4 NEW BOMBING STYLE set by British in Sylt raids, says Maj. Eliot; attack hour after hour first of kind in this war. Page B-9 s "B the Associated Press. PARIS, March 21.—Energetic Paul Reynaud today formally took the helm of the French government as Premier and Foreign Minister in a broadened “win the war“ coalition cabinet drawn from the Socialists on the Left to groups of the Right. Edouard Daladier, whom M. Rey- haud succeeds as Premier, stayed in the new ministry as Minister of &ational Defense. M. Reynaud’s former portfolio in the Finance Ministry went to Lucien Lamoureux. Five in Inner Cabinet. M. Reynaud and five other minis- Sters constitute the inner war cabi- net. The five are: Daladier; Camille Chautemps, Vice Premier; Cesar Campinchi, "Navy Minister; Senator Laurent Eynac, Air Minister, and Raoul Dautry, Armament Minister. M. Reynsud also set up a “war committee” Chautemps, Daladier, Colonial Min- ister Georges Mandel and Finance Minister Lamoureux. A separate ‘‘economic council” also was established, similar to Britain’s ministerial economic war- fare group. Members include La- moureux and all ministers whose duties are concerned with national | economy. M. Reynaud called his first cabi- net meeting for tomorrow morning, to be followed by a council of min- isters—the cabinet meeting with President Albert Lebrun. These sessions will be followed by gov- ernmental declarations before the | two chambers of Parliament. Two Rightist Groups Out. The new government failed to pre- sent the national union character at first expected because of the refusas of two rightist groups to support it, the Republican Federation, led by | Louis Marin, and the Republican Alliance, headed by ex-Premier » Pierre-Etienne Flandin. The cabinet, therefore, depended strongly on M. Daladier’s Radical- Socialists, who furnished seven mem- bers, and the Socialists, largest group | in the Chamber of Deputies, repre- | sented by three ministers. The rest of the new cabinet are: | Henri Roy, Interior. Louis Rollin, Commerce. Albert Serol, Justice. Lucien Lamoureux, Finance. Georges Mandel, Colonies. Albert Sarraut, Public Instruction. Henri Quequille, Provisions. Paul Thellier, Agriculture. Georges Monnet, Blockade. Anatole de Monzie, Public Works. Charles Pomaret, Labor. Jules Julien, Communications. Louis Frossard, Information. Alphonse Rio, Merchant Marine. Marcel Heraud, Public Health. Albert Riviere, Pensions. The Socialists have been without representation in a French cabinet since M. Daladier took power in April, 1938. Their three ministers in the new government are Monnet, Riviere and Serol. Socialists 0. K. Selections. Socialists in the Chamber of Dep-~ uties, after receiving a report from former Socialist Premier Leon Blum on three of their group chosen for ministerial posts and three others as undersecretaries, approved the selections by a vote of 80 to 7. Pressed for speed, M. Reynaud steered France quickly past her first cabinet crisis of the war while the nation kept a wary eye on Germany. After accepting the President’s bid yesterday, M. Reynaud worked until 2 a.m. today consulting with leaders. When he stopped he had seen M. Daladier, M. Mandel, former Premier Edouard Herriot, president of the chamber; Jules Jeanneney, president of the Senate; Lucien Lamoureux, former Finance Min- ister; Rollin, former Commerce Minister, and two other veterans of Daladier’s cabinet, Henri Queuille, Minister of Agriculture, and M. Chautemps. Appointment Well Received. ‘The designation of peppery, 61- year-old M. Reynaud, whose reor- ganization of French finances is rated as one of the greatest achieve- ments of the Daladier cabinet, was well received in Parliament. Legislative circles, whose demands for more strenuous French war ef- forts led to M. Daladier's downfall, considered M. Reynaud well quali- fied to lift the war out of stalemate with British-French initiative. As a member of the Left-Repub- lican party, M. Reynaud is slightly to the right politically, but Deputies considered him in the best position to organize an “action” ministry in- cluding the Socialists, the largest party in the Chamber, who had no representation in M. Daladier’s cabinet. Daladier Resignation Held.German Victory ROME, March 21 (&) —The resig- nation of French Premier Daladier was described by the Bologna news- paper Resto del Carlino today as a “battle won by Germany.” “Daladier is an enemy of Italy, shortsighted and a provocateur,” it said. “Daladier is one of those mainly responsible for the war and history will judge him severely.” composed of himselt, | No Democratic Secretary Is Cautio! By NELSON M. SHEPARD. Secretary of the Interior Ickes, a leader of the Roosevelt third-term movement, said today that none of the prominently mentioned Demo- cratic candidates for the presidency can control enough votes at the convention to win the nomination. He made the statement in reply to a question as to his opinion of the chances of Vice President Gar- ner, Secretary of State Hull, Post- master General Farley and Federal Security Administrator McNutt. In reply to another question, Mr. Ickes declined to give an opinion whether the Democratic National Convention would draft President | Roosevelt. “You might ‘want a girl to marry you,” he parried, “but that is no assurance she would have you.” Third-Term Effort to Go On. Mr. Ickes reiterated his belief that the liberals in the party would con- tinue their efforts to secure a third term for the President. “I haven't any second choice,” he said. “I'm very constant. The peo- ple who want the President for a third term will continue their efforts regardless of any other candidates.” Secretary Ickes, recently returned from a California trip, where he was forces in that State behind conven- tion delegates to be pledged for Mr. Roosevelt, commented facetiously on politics and candidates generally in the first press conference he has held in more than a month. He re- fused to be pinned down, however, credited with uniting Democratic | ¢ Foening Star WASHINGTON, D. C, THURSDAY, MARCH 21, 1940—FIFTY-SIX PAGES. %% Candidate Has Enough Votes, Ickes Says us About Farley, But Sees Third-Term Efforts Continuing to a definite expression of his own views on the “unconditional” can- ;Hdacy of Postmaster General Far- ley. “Mr. Farley is all right,” he satd, cautiously. “Any one has a right to be candidate, He is a fine fellow.” He also declined to say whether Mr. Farley should resign the chair- manship of the Democratic Na- tional Committee if he carries out the nomination at Chicago. All he would say was, “Jim will do the appropriate thing in any situation.” Denies He Wants Chairmanship. Asked if Mr. Farley’s announce- ment came as a surprise or a shock to the Roosevelt third-term backers, sought to convey that impression. Mr. Ickes disclaimed that he was seeking to be chairman of the Democratic National Committee, and in this connection took a wallop at L. W. (Chip) Robert, committee official, with whom he has had many tilts in the past. Mr. Robert had spoken in somewhat derogatory fashion regarding the Secretary and such rumors. “I wouldn't have the chairman- ship if it were offered to me on a silver platter,” Mr. Ickes said. He added that Mr. Robert was “merely sounding off” again. He also in- timated that Mr. Robert, whom he referred to as the “Georgia cracker"” and the “Georgia peach,” was “wear- ing bells in his cap.* 'Ship Mysteriously 'Fills With Water 'In Balfimore Harbor Bernstein’s Panamanian, With Cargo for England, Lists and Hits Bottom Police to Round Up Numbers Backers Also Calls for Arrest Of Persons Who Bail Out Small Operators his expressed intention of seeking | as indicated in some-quarters, Mr. | Irke§ replied that “self-serving re- | porting in some newspapers” had | Justice Gordon Asks | By the Associated Press. BALTIMORE, March 21.—The 27,000-ton steamer Panamanian, with which Arnold Bernstein, Ger- | man-Jewish shipping magnate, | plans to inaugurate direct freight service to England, lay helpless and partially filled with water in Balti- more Harbor today. The Panamanian, here to take on cargo, shipped great quantities of | water in an unexplained manner last night while lying at her Locust | Point pier. Today she listed at a 10-degree angle, her keel touching bottom. There were reports that the vessel took on water through side ports refused to confirm or deny them or to comment on the possibility of sabotage. The engine room and the after cargo holds were filled with water. more - West Indies Corp., local agents for the Compania Trans- Atlantica Centro Americana, company that Mr. Bernstein heads, went aboard the Panamanian to in- vestigate, but refused comment pending his inquiry. | | | F. B. 1. Agents Won't Talk. the Baltimore office of the Federal Bureau of Investigation, likewise while pumping oil, but agents here Malcolm G. Denton of the Balti- | the | E. A. Souci, agent in charge of | Justice Peyton Gordon in District Court today called on the enforce- ment authorities to bring to justice the backers of the numbers game and persons who post bonds for the smaller operators. When Lelon M. Boone, colored, who had pleaded guilty to vtollungj the numbers law, appeared today for sentencing, Justice Gordon noted that the accused contended he did not know the names of the pickup men who took the numbers slips from him, the names of the backers, or those who put up bail. Attorney Denny Hughes, repre- senting Boone, said this is not un- usual. Boone received a sentnce of from six months to two years and was placed on probation. Later, when James D. Smith, col- ored, appeared before him, following a guilty plea to violating the num- bers law, Justice Gordon observed that Smith identified the higher-ups and those who put up money for { bond. | “I expect to see the backers and those who pay the bondsmen in this | court in the near future, if the en- forcement officers do their duty,” declared Justice Gordon. Smith was given a sentence of 6 | to 18 months and placed on proba- tion. declined comment on reports the F. B. 1. was investigating the pos- ! sibility of sabotage. e public was barred from the pier. It was about 5:30 a.m., crew mem- bers said, when the Panamanian was discovered listing. Some crew- men said they awoke to find them- selves “almost rolling out of the bunks.” One said water was pour- ing through the porthole of his quarters. The fireboat Deluge was called but did not go into action. Fire only interest was in saving the ves- sel if she was in danger. Pumping her out would be a salvage job, not ours.” Ship’s Fires Out. Harbor Engineer Fred M. Kipp said the Panamanian appeared to be down by the stern and up by the bow. Firemen aboard the Deluge said the water in the vessel's en- gine room was up to the cylinder heads. The ship’s fires were out and her dynamos decommissioned, world’s largest cargo vessel in dis- placement tonnage, had been par- tially loaded with goods for Eng- land. She had been expected to take on 15,000 tons of freight. The vessel is 395 feet long and has 950,000 cubic feet of space in the hold. Flooding of the engine room blocked plans to move the ship from her pier to a deeper anchorage. The steamer took on water through side port holes last night while pumping oil. She was listing at a 45-degree angle, but, with her keel on the bottom, was in no dan- ger of sinking. The Deluge was called to pump her out. The Panamanian fired the first American shot in the World War— & blast that sent a German U-boat to the bottom. She was called the Mongolia then and as a troopship carried more than 25,000 American soldiers from Hoboken to France. As the President Fillmore of the defunct Dollar Line she was fa- mous for round-the-world cruises. Solly Seeman Is Given Two Years in Bond Plot By the Associatc Press. NEW YORK, March 21.—Solly Seeman, one-time contender for the world lightweight boxing title and alleged co-leader of a $1,000,000 Na- tion-wide stolen-bond ring, was sen= tenced to two years in prison today by Federal Judge John C. Knox. ] Chief Howard Travers said, “Our | The Panamanian, described as the | ? | Guard Officers” Qusfer \By 6. A. 0. Attacked | By the Associated Press. | The Senate Military Affairs Com- | mittee heard charges today that the | General Accounting Office and con- :troller general, in a “high-handed” and “un-American” manner, had | forced the resignation of National | Guard officers for technically poor | bookkeeping. Adjt. Gen. Milton R. Reckord of Maryland testified that the ac- counting office had been set up as a final authority so that not even in- | tercession by the War Department could prevent the forcing out of | disbursing officers when mere tech- nical irregularities were found in | their accounts. | Gen. Reckord and Adjt. Gen. E. |A. Walsh of Minnesota urged the ;commmee to approve legislation for a uniform accounting system for the | Guard. Present law is such, they said, that the accounting office had been able to suspend payments of Federal funds for some infraction of - regulations which had taken place 10 or 15 years previously. Summary of Page. Obituary ...A-12 Page. Amusements, C-4-5 Comics _..C-6-7 Editorials .__ A-10 Finance . ._A-19 Lost, Found.D-§ Woman’s Page, D-4 Foreign “Win-the-war” cabinet is formed by Reynaud. Page A-1 British cabinet reform likely during Easter vacation. Page A-3 Berlin expects closer Soviet tie to axis. Page A-4 National Democratic candidates lack conven- tion votes, Ickes says. Page A-1 Farley statement held blow to third- term drive. Page A-1 Queen Mary and Mauretania sail on mystery woyage. Page A-3 Allied interest in new U. 8. warplane questioned. Page A-6 Creation of peasant class seen in farm bill debate. Page B-5 Washington and Vicinity Utilities Board aide found hanged in cell. Page A-1 Violent deaths of three local men be- ing investigated. Page A-2 Salisbury chiropodist gets six months in campaign bribery. Page A-4 \ House Unit Cuts Wage-Hour and N.L.R.B. Funds Labor Board Called ‘Overstaffed’; Bili's Total Sliced 19 Million By the Associated Press. Contending the National Labor Relations Board was “overstaffed” and that a “confused administrative problem” existed in the Wage-Hour Division, the House Appropriations, Committee asked Congress today to trim next year'’s fund for those agencies. The committee proposed an appropriation of $2,843,000—$337,000 under President Roosevelt’s budget estimate—for the Labor Board, and $5,105,000—or $1,080,000 less than budget figures—for the Wage-Hour Division. The recommendations were in- corporated in a $954,189,700 bill for needs of the Labor Department, the Federal Security Agency and four other related agencies during the fiscal year beginning July 1. The total was §11,798,942 below the Pres- ident's recommendations and $19.- | 118,170 less than the amount avail- able for the current fiscal year. State Grants Fund Cut. Most of the reduction below the budget was accounted for by a $10,- 000,000 cut in a $245,000,000 item for grants to States for old-age assist- ance. Testimony of Chairman Arthur J. Altmeyer before an appropriations subcommittee made public today, re- vealed that the Social Security Board favors variable Federal grants to States for old-age assistance, in- stead of the present system of | matching State payments. | Mr. Altmeyer told the subcommit- | tee that the board felt the grants | should be related to the economic ca- | pacity and need of the individual States. ‘We do not favor a free fund to an administrative agency which must | then determine for itself and on such | basis as it deems reasonable how | | much each State should get,” he said. | Anti-Lobbying Ban. | The committee disclosed that new | | phraseology had been put in the appropriation bill to strengthen the present law against use of “del‘lli | funds to influence Congress. “While this is already the law, the committee is not entirely satis- | fled that it is being observed as such in all its applications,” the report said. Charges that the Labor Board had “lobbied” for its own appropriations and against Wagner Act amend- ments have been made before the special House Investigating Com- mittee. Evidence on this subject was referred by the committee to the Justice Department, which now is investigating. Whereas the Appropriatichs Com- mittee has made deep cuts in other | supply bills this session, it said that | statutory requirements — such as those for social security payments— prevented any greater economies in this measure, It reported that President Roose- velt’s reorganization program had effected already a saving of $5,400,- 000 in the new Federal Security Agency. Other Major Items. Other major items in the bill: 1. Eighty-five million dollars for the National Youth Administration’s program—the same as the budget figure but $15,000,000 less than for the current year. 2. C. C. C. camps—$230,000,000, as recommended by the budget, but $64.955,000 under the current fund. This program calls for 1,282 camps next year, compared with 1,500 this year. 3. Funds for 10 additional Labor Department conciliators. The com- mittee said it “earnestly hoped” that labor and industry would use the increased staff. 4. Five million dollars for venereal disease control work, $2,000,000 more than President Roosevelt recom- mendejp The Appropriations Committee pro- posed that the Lapbor Board save $45.600 annuelly by eliminating the Econdmics Research Division headed by David Saposs. Counsel for the (See APPROPRIATIONS, Page A-3) Colliery Blast Kills 8 LONGTON, Stoke-on-Trent, Eng- land, March 21 (#).—Eight men were killed and four were injured today in an explosion and fire in the Moss- field colliery here. Today’s Star Planners meet today to act on new park acquisitions. Page B-1 St. Mary’s Seminary marks centen- nial today. Page B-1 House due to consider D. C. sales tax next week. Page B-1 Trade Board subcommittee hits sex education in schools. Page B-1 Dentists indorse bill to tighten den- tistry regulation here. Page B-1 Editorial and Comment This and That. Answers to Questions. Letters to The Star. David Lawrence. Alsop and Kintner. G. Gould Lincoln. Jay Frgnklin. Constantine Brown. Page A-: Page A- Page A-10 Page A-11 Page A-11 Page A-11 Page A-11 Page A-11 Miscellany After Dark. Reputation. Vital Statistics. City News in Brief. Bedtime Story. Letter-Out. Winning Contract. Cross-Word Puzzle. Uncle Ray’s Corner. Page A-15 Page A-17 Page C-1 C-2 C-6 T RECORDS oF CAMPAIGN TO ENLARGE U.S.SUPREME. COULRT I L ’vfIJJ;IfIJ La Guardia Arrives To Ask Billion and Half InW.P. A Funds Mayors’ Conference Sees 1,400,000 Forced Off Rolls July 1 By the Associated Press. Mayor F. H. La Guardia of New | York came to Washington today to ask Congress and President Roose- | velt to provide at least $1,500,000,000 | for the W. P. A. in the coming fiscal year. The Mayor said that a survey by the United States Conference of Mayors, of which he is president, indicated that at least 1,400,000 | workers would be forced off the W. P. A. rolls around July 1, “and we have never guessed wrong,” he added. “There isn’t a city in the United States that could absorb those peo- ple,” Mr. La Guardia declared. | “Every Mayor is worrying and help- less in providing for this additional The Mayor noted that President Roosevelt’s budget message, recom- mending $1,125,000,000 for the W. P. A, stated that amount would be sufficient only if the trend in em- ployment at that time were con- tinued. “We find that is not the situa- tion,” Mr. La Guardia said. Under the current W. P. A. appro- priation of $1477,000,000, he con- tinued, 800,000 W. P. A. workers will have to be dropped by June 30. That will leave 1,500,000 on the rolls, he said. Since proposed appropriations | would provide for only 1,350,000 on | ar average, he explained, the W. P. | A. would need to drop an additional 600,000 immediately after July 1, in order to spread the money over the peak months of unemployment. | Consulate Picket Ban Hit After New York Batile By the Associated Press. NEW YORK, March 21.—A pro- test against Mayor La Guardia’s or- der prohibiting picketing of foreign government offices was the immedi- ate outgrowth today of a police bat- tle with pickets before the French consulate. Mounted patrolmen rushed sev- eral hundred demonstrators yester- day, pumnieled them as well as passers-by, and loaded 22 pickets into patrol wagons. None was hurt seri- ously. The demonstration, sponsors said, was a protest against “the expulsion of Spanish refugees from France.” Through Director Roger Baldwin, the American Civil Liberties Union asked the Mayor that “orderly and peaceful picketing” be permitted “before consulates as elsewhere.” “We are just following Federal practice,” Mayor La Guardia said. “A congressional act has established the rule for Washington and we fol- low it. There is no desire to sup- press. There is a request to mod- erate. In New York there is ample space for people to express them- selves.” Fire Razes Log Cabin In Rock Creek Park Fire of undetermined origin last night destroyed the log cabin lo- cated in the recreational center of the Maryland section of Rock Creek Park, at the East-West highway and Beach drive, near Chevy Chase, Md. Damage was estimated at $1,000. Chevy Chase Fire Department answered the alarm, but the fire gained great headway before it was discovered, and the building could not be saved. ‘While the Chevy Chase company was battling the fire at the cabin a brush fire broke out near Rossdhu Castle, in Chevy Chase, and the Bethesda Fire Department was called out to extinguish it. REPUTATION, By Vida Hurst A new, gripping serial story of a young girl's fight to clear her father’s name, spiced with her own tangled emotions, start- Nature’s Children. Service Orders. ing todsy on Page A-7. IT'S A FINE PROPOSITION, MARY, (F You CAN GET IT ACROSS. | = /- Yy, King Personally Presents Maundy Money to Poor By the Associated Press. LONDON, March 21. — King George VI for the first time in his reign personally distributed Maundy money t.diy to 45 poor men and a ske number of women at the an- cient ceremony at Westminster Abbey. Queen Elizabeth accom- panied him. The sovereign usually is repre- sented by the Archbishop of Canter- bury and the only previous personal appearances in recent times were those of George V in 1932 and Ed- warc. VIII n 1936. Church dignitaries accompanied the King to the church, where he walked between two lines of recip- | ients. To each he handed a tiny | crimson and white leather bag con- taining 45 pence (about 75 cents) in specially minted silver, and two, three and four penny pieces. The number of recipients and number | of pennies given equals the King's age. He will be 45 next Decem- | ber 14. Utilities Board Aide Is Found Hanged In Pelice Cell George H. Wilson, Chief Accountant, Booked For Intoxication (Picture on Page A-3.) George H. Wilson, 36, chief ac- countant for the District Public Utilities Commission, was found hanged in a cell at the ninth pre- cinct early today. Police discovered the body about 5am. A shirt had been tied around the man’s neck and made fast to the cell pars near the ceiling. A | Casualty Hospital ambulance doctor said he had'died of strangulation. Mr. Wilson, who lived at 910 Cres- cent drive, Alexandria, Va., had been arrested near First and D streets NE. at 3:50 am. and booked on a charge of intoxication. Left in Police Cell. He was lodged in the cell and was not seen again until Acting Lt. T. M. Poland went back to the block and found the body. Coroner A. Magruder MacDonald | issued a certificate of suicide. Mr. Wilson is survived by his widow Ida, and a son, Wayne, 1% years old. Mr. Wilson's father is Lee R. Wil- son, associate accountant and aud- itor of the Federal Power Com- mission. The elder Mr. Wilson is stationed in the field but maintains a home at 1238 Franklin street N.E. Riley E. Elgen, chairman of the Public Utilities Commission, said Mr. Wilson worked in his office until around midnight last night prepar- ing a statistical report for Chairman Caldwell of the House Subcommittee on District Appropriations. Officials Shocked at News. Commission officials were shocked by the news. Mr. Elgen said Mr. Wilson was a “brilliant” accountant —one of the best he has ever known. He said he had never known him to drink. Mr. Wilson first came to the com- mission as an accountant in 1931. Three years later he left to take a position as valuation accountant with the West Virginia Public Serv- ice Commission, but returned to the local commission as senior account- ant late in 1937. Last fall, when B. M. Bachman resigned as chief accountant of the commission to become deputy tax assessor, Mr. Wilson was elevated to his position. Commission officials said Mr. Wil- son’s work as chief accountant has been “exceptionally good.” Texas Officials Favor Cut in Oil Quota By the Associated Press. AUSTIN, Tex., March 21.—Two of the three members of the Texas Railroad Commission said at the State-wide oil proration hearings yesterday they favored a substan- tial reduction of the State’s oil pro- duction allowance, effective April 1. Commissioner Ernest O. Thomp- son asserted that latest crude oil stock figures indicated Texas was producing about 183,000 barrels more oil per day than was needed. The current Texas allowable is ap- g:;ximuly 1,560,000 barrels per Estoblished in 1852 Most people in Washington have The Star delivered to their homes every evening and Su UP) Means | Farley's Statement Considered Blow fo Third-Term Drive Announcement He Will Stay in Race Elates Garner Backers By G. GOULD LINCOLN. |out reservation” announcement of | his presidential candidacy in Spring- field, Mass., yesterday threw the big- | gest monkey wrench into the Roose- Postmaster General Farley's “with- | inday morning. Associated Press. THREE CENTS. Income Tax Yield Up 31% Over Last Year Still Won’t Equal Spending Needs, Morgenthau Says By the Associated Press. Secretary Morgenthau said today that preliminary estimates of annual income tax collections were running 31.2 per cent ahead of last year and “comfortably ahead” of President Roosevelt's budget estimate. The Treasury Secretary said at a press conference that telegraphic re- ports from regional collection offices showed collection of $621,000,000 of income taxes in the first 20 days of March, compared with $473,000,000 in the same period last year. March collections are always the biggest for income taxes because an- nual returns and at least first- quarter installment payments are due on March 15. Senator Morgenthau declined to say by what margin the collections would exceed budget estimates, which are made only on an annual and not a monthly basis, but added that there was “not a chance” of the excess equaling the $460,000,000 of additional revenue asked by the President to pay for emergency na- tional defense costs and to help keep the Treasury under its $45,000,000,000 statutory debt limit. Still Favors New Taxes. Asked whether he still favored new taxes despite comments of leading Congress members that the higher tax collections obviated the need for new taxes, the Secretary asserted: “In words of one syllable, I stand on the President’s message until he changes it.” He added that he had no reason to believe that the President would withdraw his request for new taxes. At the same time, Secretary Mor- genthau repudiated proposals to use some of the $2,000,000,000 in the Treasury’s stabilization fund to avoid the debt limit. “I certainly am not going to use the stabilization fund or any other trick method to avoid the debt lim- | velt third-term drive that has oc- curred since Vice President Gamer“ |let it be known he would run even | if President Roosevelt were a candi- | date for renomination. | Anti-third-term Democrats today | talked with greater confidence than | they have for months. | Third-term supporters, on the| other hand, belittled the possible effect of the Farley determination to be a candidate “without reserva- tion.” it,” the Treasury head said. “It is strictly up to Congress and and if they vote to spend money, which will exceed the limit, 1t is up to them to do something about the limit. “I don't think the $45.000,000,000 limit is very important. There is no reason why it should not be 46, 47 or 48 billion dollars. I would not worry if it was $50,000,000,000 “But it shouid be done in an open, legal way by Congress.” In some quarters it was argued that Mr. Farley had made his an- nouncement, not in oppositiont to the President or any plans he may have for running again, but in the belief the President has no intention of running. Garner Backers Elated. ‘The more general interpretation of the move, however, was that the Postmaster General has finally thrown down the gauntlet to the third-term boosters, and will go through with a fight against a re- nomination of the President. The Garner-for-President sup- porters were obviously elated. While Mr. Farley made it clear he was to Also, Secretary Morgenthau said, he does not regard avoidance of the debt limit a justifiable use of the stabilization fund, which he termed a “nest egg” to be used in some “un- foreseen national emergency.” “In this crazy world,” he con- tinued, “the time may come when we will get down on our knees and thank God that we've got this nest | egg to use in an emergency.” Slight Distortion Possible. | Returning to March income taxes, Secretary Morgenthau commented that the early collection figures might appear a little better than they actually are because some small taxpayers as well as approxi- | mately 1000000 State and local be a candidate in his own right and | governmental employes, paying Fed- did not intend to ally Jimself with | eral taxes on their salaries for the any other, it was obvious to them | first time, may have paid all their that if the Postmaster General is t0 | annual tax at this time, instead of fight against a third term nomina- | taking advantage of the quarterly tion, he and Vice President Garner | jnctaliments permitted. will be in the same camp. Senator Johnson, Democrat, of Colorado praised Mr. Farley’s frank statement of his position. He said: “I am very proud that Jim Farley has spoken out. There has been too much pussy-footing. We need more forthright statements like his to clear the atmosphere. I am taking what he said seriously.” Praised By Holt. Senator Holt, Democrat, of West Virginia said: “Mr. Farley's statement that he will be a candidate without reserva- tion will give the third-term drive a jolt. The first-term drive for Mr. Roosevelt, without the aid of Jim Farley, would not have gotten so far. I know that a large number of Mr. Farley’s friends believe he has not been given proper consideration at the White House for the work he has done for the party.” Senator Holt added that Mr. Farley has a great number of friends throughout the country and also among Democratic members of Congress. Questions on the lips of Demo- cratic leaders in Washington today included: 1. Will Mr. Farley continue in his cabinet office? 2. Wil Mr. Farley remain as chairman of the Democratic Na- tional Committee? Third Term Question. 3. Will a rising tide of third term opposition in the Democratic party of itself cause the dropping of the third-term movement, on the theory that a split in the party would mean dgfeat for the President at the polls in November, even if he were nom- inated? The opinion was expressed here today, in the absence of any com- ment by Mr. Farley himself, that he would not retire from the chairman- ship of the Democratic National Committee, certainly not before the meeting of the Democratic National Convention in July. Whether he will remain in the cabinet depends, it was said, on the President himself. However, if he were ousted from the cabinet now, the President would be regarded as an active candidate for renomina- tion. ‘The President is in a position, it was pointed out, to quiet the grow- ing dispute in the Democratic party at any time he sees fit, by merely announcing he will not run. Immediate Effect in State. The Farley announcement that his name would surely be presented at the Democratic National Conven- tion apparently had an immediate effect in Massachusetts, according to " (Bee POLITICS, Page A-4) [ After getting the news on taxes, Secretary Morgenthau decided to take a vacation of a week to 10 days at Sea Island, Ga. He will depart tonight. | Anti-Japanism Blamed |On U.S. Government By the Associated Press. TOKIO, March 21.—Foreign Min- ister Hachiro Arita,answering a ques- tion in the Diet yesterday, said he thought feeling in the United States against Japan was the result of the | American Government's policy. | A member in the lower chamber asked whether relations might be improved through the dispatch of a special envoy to Washington. Arita replied, “I do not believe much benefit can be derived from this method because sentiment in the United States toward Japan is | & condition resulting from Govern- ment policy.” The project of a special envoy, he said, had not been discarded en- tirely but would require more con- sideration. Government Use Of Taxis Urged As Money Saver Transportation worries of the Gov= ernment might be ended if it got rid of its automobiles and relied on Washington's “ubiquitous horde of taxicabs,” Representative Engel, Re- publican, of Michigan suggested to a House Appropriations Subcommit- tee, it was revealed in hearings made public today. “They have more taxicabs in ‘Washington than in any other city in the country, according to popu- lation,” said Mr. Engel, pointing out that the fare to any building in the Government zone was 20 cents, while it cost around $5.50 a day to operate a Government car. The subcommittee also learned that Paul V. McNutt, Federal se- curity administrator, donated to the Government a seven-year-old auto- mobile. The committee was ine formed, however, that the car’s up- keep, was $400 annually, or double the average for Government cars. Secretary Ickes, in a letter to the subcommittee, objected to the label- ing of Government cars with the names of their departments or bu- reaus. Government employes, he pointed out, often have to use de- partment cars after working hours on official business, and casual obe servers may misconstrue this use of official vehicles.