Evening Star Newspaper, March 26, 1940, Page 1

Weather Forecast Fair, continued cold, lowest about 25 to- night; tomorrow cloudy, slowly rising temperature; rain tomorrow night and Thursday. *‘empentures today—High- est, 39, at 1 p.m,; lowest, 25, at 7 am. From the United Stares Weatner Bureau report. Full details on Page A-2. Established in 1852 ¥ Most people in Washington have The i Star delivered to their homes every evening and Sunday morning. WITH SUNDAY MORNING EDITION Closing New York Markets. Page 16. 88th YEAR. No. 35,028. 8. Labor Unions Held Subject fo Anti-Trust Act D. C. Court Upholds Indictment of Teamster Heads BACKGROUND— Proceeding against restraints in the building industry, 2he Justice Department in the past few months has obtained indictments in number of cities against union and industrial officials and organizations. The drive has been bitterly opposed by the American Federation of Labor, whose powerful building trades unions are involved. Labor unions are subject to the Sherman Anti-trust Act, Justice Peyton Gordon of District, Court ruled today in sustaining an indict- ment against American Federation of Labor Teamster Union officials growing out of a row with operating engineers over the allocation of work which tied up large Government building projects here several months 0. Giving an important victory to the Government in the current-anti- trust drive against the building in- dustry, Justice Gordon overruled a demurrer to the indictment and de- nied a motion to quash the accu- sation. It was the first time the Sherman Act had been invoked against tie-ups flowing from inter- union wrangles. Justice Gordon gave the defense | 20 days within which to plead to| an- | nounced that plans would be made | the indictment, and counsel to go to trial. Defendants Listed. Named as defendants are Driver Chauffeurs and Helpers Local, N 639, of the International Brother- hood of Teamsters, Chauffeurs, Stablemen and Helpers of America; Thomas O'Brien, representative of the international; Stuart M. Keyser, recording secretary and business representative of the local, as well as Charles J. Bell, president and business representative; Linwood A. Trainham, secretary-treasurer, and Aubrey W. Stream, business repre- sentative of Local Union No. 639. The indictment charged a criminal eonspiracy by the defendants to re- strain trade and commerce in con- junction with the construction of buildings and other public and | private works here. In his memorandim opinion. Justice Gordon hit at the union contention that the Clayton Act frees labor from prosecution under the Sherman Act. He said: “I find nothing either in Section 6 or in Section 20 of the Clayton Act which makes legitimate and lawful either the object of this conspiracy or the means, set forth in paragraph four of the indictment, to attain that object.” Two Groups in Dispute. The Government indictment charged the defendants had a dis- pute with the International Brother- | hood of Operating Engineers, Local No. 77, who for years had been employed as driver-operators of concrete-mixer trucks, and that the members of Local No. 639 contended that they, rather than members of the engineers’ union, should be employed by companies operating mixer-trucks. The Justice Department charged that the defendants tried to induce companies operating the mixer- trucks to employ mrembers of the teamsters’ union rather than the engineers; coerced the companies to break contracts with the engineers’ local; coerced drivers to resign from the engineers’ local and join the teamsters; called and assisted in ealling strikes on a number of con- struction projects here with a view to stopping construction work and prevent or threaten to prevent deliv- eries to construction projects by trucks driven by non-members of the teamsters’ union. “Direct Restraint.” In his opinion Justice Gordon #aid: “Defendants further rely upon the provisions of the Norris-La Guardia Act, which extends the prohibitions of the Clayton Act in respect to the Jurisdiction of Federal Courts to grant injunctions in labor disputes. ‘This act is limited by its terms to civil injunction suits, the purpose of the act being further to limit the use of the injunctive remedy, and prevent possible abuse of that rem- edy in labor controversies. “Irrespective of whether the con- troversy which appears from this indictment is or is not a ‘labor dis- pute’ within the broad interpreta- tions which have been upon Section 13 of the Norris-La Guardia Act, and regardless of whether the conduct set forth in paragraph four of the in- dictment is enjoinable or not, such conduct is unlawful, and when an indictment alleges a conspiracy by any persons formed to employ such unlawful conduct as a means to at- tain an object, legal or illegal, and (See LABOR UNIONS, Page A-5.) Philippines Couldn’t Repel Aggressor, Quezon Admits By the Associated Press. MANILA, P. I, March 26.—Presi- dent Manuel Quezon today admit- ted the Philippines’ inability to re- pel aggression by a first-class power, but urged that his.country “face the music” and proceed toward inde- pendence. Present relations with the United States render the islands powerless to seek their own economic salva- tion, President Quezon told the graduating class of the Philippine Normal School. The relations he said are one-sid- ed—American goods enter the islands freely, but trade in the other direction is hampered by many re- strictions. “Let’s face the music,” he con- cluded, “and go ahead with inde- pendence.” s { - | tania, bent on a secret war mission, 4 . WASHINGTON, D. C, TUESDAY, MARCH 26, 1940—THIRTY-SIX PAGES. *** Allied Drive to Obtain Dollars Sends Pound to Wall Street Rate Plu Modern Low nges More Than 7 Cents; Some Bankers See ‘Deliberate Policy’ in Fall By the Associated Press. NEW YORK, March 26.—A spring drive by the allies to obtain dollars for war needs sent the open-market quotation for the British pound sterling into another wide decline in terms of the American currency to- day. The Wall Street rate for the pound, as distinguished from the official price by the British War- time Exchange Control, plunged more than 7 cents to below $3.62. Exchange men said this was the lowest of modern times on basis of gold and was equivalent to about 217 in terms of the dollar before it was revalued in 193¢ through raising of the United States price for gold to $35 from $20.67 an ounce. The British control buys sterling at $4.02!; and sells at $4.03',, mak- ing a spread of around 40 cents be- tween the official and the so-called “free” rate, the latter determined by supply and demand in the open! market. | The French franc, tied into allied | economic strategy, skidded with the | | pound. The Canadian dollar, how- | ever, was comparatively stable at a djscount of about 191; cents under the American dollar. ‘ Some bankers said the fall of the open-market sterling rate, making the wide spread-between that and the official rate, appeared to be part of a “deliberate” policy designed to aid the allied war chest in Europe’s economic warfare. The effect, they said, was to “sub- sidize” certain British through depreciation of the ex- change rate. They added that, from the British view, this policy apparently was justified by neces- sity of raising dollars to pay for war purchases, particularly aircraft, which threatened to throw allied payments to this country out of balance, Foreign trade circles talked of a still lower rate for “free” sterling and watched to see what influence it would have on competition between American and British sellers in the world markets. At any rate, said one banker, the allies stood to win more dollars on both the export and import ends of the exchange control policies, which were judged to be tied directly into war strategy. 'Mauretania Passes Through Canal on War Mission British Liner Believed On Way to Australia to Serve as Troopship By the Associated Press. CRISTOBAL, Canal Zone, March 26.—Britain’s big new liner Maure- | went through the Panama Canal to | | the Pacific Ocean today. The 35.739-ton liner was believed | to be en route to Australia to carry | troops from there to the Near East. She began her passage through the | canal at 9:45 am. | The Mauretania completed her| passage through Gatun Locks aboul; noon. She will stop at Balboa, on | the Pacific side, to take on sup-| plies. Her agents said “The Maure- | tania is headed across the Pacific | and is sailing tonight.” Stripped of her usual elaborate | furnishings, with which she normally | carries 1,500 passengers in style, the Mauretania’s capacity as a troop- ship is presumed to have been in- creased about tenfold. The gray liner presented a som- ber aspect against the tranquil back- ground of Limon Bay as a squadron of United States Army pursuit planes circled briefly overhead. Three canal pilots were aboard as she passed through the locks. The Mauretania reached here last | night, dark except for her running lights, after a voyage from New York. She left New York last Wed- nesday under sealed orders. Last Thursday the 81,235-ton Queen Mary followed the Maure- tania out of New York, also on a | secret mission. She, too, was be- | lieved to be heading for Australia to | | serve as a troopship, but, because of her size, she is unable to pass through the canal. If she is bound for | Australia, she will probably round | the Cape of Good Hope. | Both the $25,000,000 Queen Mary and the $20,000,000 Mauretania are | on Germany’s official list of vessels to be attacked as armed raiders. Percy’s Disappearance Remains Mystery By the Associated Press. NEW YORK, March 26.—The dis- appearance of Richard Truman Percy, 70, noted organist and choir- master, remained a mystery today to his family and friends and to police, ‘who were unable to ascribe any mo- tive for his absence. Mr. Percy, a native of Norfolk, Va., who studied music at Yale, was organist and choirmaster at the Marble Collegiate Church, Fifth avenue, for 46 years. He recently retired. Last Wednesday he left home as usual to go to Carnegie | Hall., where he had a studio for teaching voice. Detectives believe he boarded a| train for Chicago and left it at Buffalo. Carabinero Revolt Quickly Put Down By Bolivian Army Country Reported Calm As Leaders Surrender Without Bloodshed BULLETIN. LA PAZ, Bolivia, March 26 (#). —The Bolivian government to- day declared a nation-wide state of seige (a form of martial law) after an early-morning revolt by a regiment of fusileers had been put down as the reoels were marching on the government pal- ace. By the Associated Press, LA PAZ, Bolivia, March 26.—The Bolivian government this morning put down a short-lived revolt by 2,000 members of a regiment of car- | abineros (national police) which government spokesmen said was due to discontent with the outcome of the recent presidential election. Government sources said the ris- ing and its suppression were blood- less. The regiment is quartered in suburban Miraflores and apparently the rebels never left their barracks. No shots were heard in La Paz. Gen. Enrique Penaranda, former head of the army, was victorious in the election of March 10 and is scheduled to assume office April 16. Leaders Surrender. The government announced that the rising had been defeated and its leaders had surrendered. Their names were not disclosed. Maj. Celestino Pinto was the regimental commander. Government sources indicated that leaders of the rising might face death sentences. Provisional President Carlos Quin- tanilla ordered Gen. Icazo, army chief of staff, to inspect all mili- tary units. Gen. Icazo reported that all elements of the army, totaling about 30,000, except part of the carabinero and the federal guard, were loyal to the government. President Quintanilla announced’ at noon that conditions were peace- ful throughout Bolivia. Crowds Cheer Quintanilla. Crowds gathered outside Govern- ment House and cheered Quintanilla and Penaranda. Penaranda was the only govern- ment-recognized candidate in the recent election and polled more than 70 per cent of the votes. Others were split between Jose Antonio Arce and Gen. Bernardino Bilbao Rioja. The government declared the elec- tion was intended to restore consti- tutional government to Bolivia. Quintanilla established the present regime last August 23 after Dictator- President German Busch had died of a bullet wound said to have been self-inflicted. Busch had suspended portions of the constitution; Quintanilla re- stored some parts and ordered the election to complete the process. Dutch Trawler Sunk AMSTERDAM, March 26 (#)— The Netherlands fishing trawler Protinus, 202 tons, was sunk today by a mine in the North Sea. Page. Obituary _.__A-8 Radio - -B-16 Sports - Society Woman'’s Page Amuse- ments -___B-18 Comics _ B-16-17 Editorials _.A-10 Finance -__.A-15 Lost, Found _B-13 Foreign Pound declines to lowest in modern times. Page A-1 Mauretania passes through Panama Canal. Page A-1 ‘War conduct issue at Canadian polls today. Page A-2 British cabinet of five to press war rumored. Page A-2 “Propaganda front” action touched off by sharpshooters. Page ‘A-5 Mexican government ready for silver buying end. Page A-5 Nationa) Labor unions subject to Sherman law, judge rules. Page A-1 Dies to probe reports of Soviet es- pionage. Page A-2 Overton and Smith propose drive for third-term ban. Page B-2 Mrs. Borah plans to carry on fight for U. S. isolation. Page B-2 Washington and Vicinity Barlow bomb lives up to promise in preview test. Page A-1 Commissioners may ask raised D. C. income tax rate. Page A-1 Two earth shocks felt in Shenendoah Valley. Page A-3 ) Summary of Today’s Star Page. Man shoots at two burglars; bandit suspect captured. Page A-5 Senator King opposes bill legalizing racing. Page B-1 Two killed when trailer overturns on car near Alexandria. Page B-1 Editorial and Comment This and That. Answers to Questions. Letters to The Star. David Lawrence. Alsop and Kintner. G. Gould Lincoln. Constantine Brown. Jay Franklin, Sports Dodger fans warned to “wait until next season.” Page A-12 Cold weather hazard to Bimelech's Derby hopes. Page A-12 Nats' failure to hit leads to hints of trades. Page A-12 Golf hall of fame planned by P.G. A. to honor famous. Page A-13 Boys’ Club to benefit as stars roll in Brookland ’stakes. Page A-14 Miscellany Vital Statistics. Nature’s Children. Bervice Orders. Bedtime Story. Letter-Out. Winning Contract. Uncle Ray’s Corner, Puszsle. Page A-10 Page A-10 Page A-10 Page A-11 Page A-11 Page A-11 Page A-11 PageA-Ul Page A-7 Page B-S Crossword exports | Harrison Sees Adjournment By June 1 Tax Legislation Not Probable,He Says After Talk With President By JOHN C. HENRY. Expressing himself as hopeful that Congress will be adjourned by June 1, Chairman Harrison of the Senate Finance Committee told White House reporters after a conference with President Roosevelt today that he is not expecting tax legislation at | this session. Although he said he had not dis- cussed the tax problem with the President, Senator Harrisom said he |had been studying the question closely himself and felt that the in- crease in tax receipts over estimates | offers a good chance that no new | revenue measure will be needed this year. The Mississippian said he had called on the President primarily to | discuss reciprocal trade treaty leg- islation now pending before the Senate. He described the Chief Ex- ecutive as intensely anxious that extension of the legislation be ap- proved without revision. “I think we'll win,” Senator Har- rison said. “We've got a close fight in the Senate, but the chances are that all amendments will be de- feated and the resolution passed without change.” Principal test will come, he said, | on the pending amendment of Sen- ator Pittman, Democrat, of Nevada, which would subject the agreements to Senate ratification by a two- thirds majority as now required for | formal treaties. If this amendment | should be adopted, he added, it would be “impossible to carry on the | | reciprocal trade program.” ! Senator Harrison said he expected | & vote on the Pittman amendment | this week and passage of the resolu- | tion itself in about 10 days. No | desire to filibuster has been indi- | cated by the opposition, he said. 'U. S. Airlines Complete | Year Without Fafality | BY the Associated Press. Commercial airlines in the United | States completed a year of flying| today without a fatal accident or | serious injury to passengers or crew members. The record was made a few min- | utes before 4 am. To signalize the event, Chairman Robert Hinckley | of the Civil Aeronautics Authority dispatched this message to airmen |over the agency's teletypewriter | | eircuit: | “Heartiest congratulations to all| airline, Civil Aeronautics Authority | |and Weather Bureau personnel upon completion of an entire year of airline safetv. This is one of the outstanding achievements in the history of transportation.” This message was retransmitted by radio to 208 airline planes then | in flight. Passengers traveling in | the planes were given copies as souvenirs. ~The Authority also noted that for |the fwst time passengers carried by | the airlines exceeded the 2,000,000 mark in a 12-month period. The total for the year ending today was 12,028,817, against 1,389,818 the pre- vious year. In the last 12 months passenger miles of travel amounted to 814,906,250. The last fatal crash occurred March 26, 1939, at Oklahoma City, Okla. Seven passengers and one member of the crew were killed. Fireman Dies in Rail Wreck in lllinois- By the Associated Press. CRYSTAL LAKE, Il1,, March 26.— The Chicago & Northwestern Rail- road’s passenger train, the Viking, was deratled near here last night, killing the fireman and seriously in- juring the engineer. At least one passenger was injured. All the coaches of the train, en route from Minneapolis to Chicago, left the tracks but only the locomo- tive overturned. The fireman, Carl Miller of Bara- boo, Wis., was scalded to death. The engineer, Thomas Conway of Madi- son, Wis., was taken to a Woodstock, 111, hospital. Railroad officials said Mrs. E. A. Sorenson of Chicago was slightly injured and some other passengers were shaken up. An official said the train “entered & misplaced switch.” Hospital attendants said Engineer Conway’s condition was “fairly good.” Hugh G. Grant Named Minister to Siam President Roosevelt nominated Hugh Gladney Grant of Alabama today to be Minister to Thailand (Siam), Mr. Grant, secretary to Supreme Court Justice Black during Mr. Black’s service in the Senate, was Minister to Albania before that country’s absorption by Italy. This story is taken from a dossier just incorporated into records of the United States Ma- rine Corps. Only the names are Actitious. By the Associated Press. KANSAS CITY, March 26.—Elmer Dowdy was 19. Everything looked rosy. He had a job on a huckster’s wagon on the North Side. He loved Bella Ann, who was 17, He thought of her as a sweet little thing despite her 140 pounds. Some~ times she lapsed into baby talk. Elmer thought that meant inno- cence. They were married. But things got tough. Elmer lost his job. § 'Barlow Bomb Hailed fMter Test as Safe | SHA! AS MY THREE CENTS. DONT TELL 'EM YT, GEORGE KEEP "EM GUESSING ! LL APPOINT SUCCESSOR— And Destructive Bullets Fail to Explode It But Power Eats Away Hillsides r Cromwell Goes || Back to Post; Plans in Doubt By the Associated Press. SOMERVILLE, N. J., March 26.— | James H. R. Cromwell, Minister to Canada, was reported by an aide today to have returned to his post at Ottawa. | His sudden departure, without | visiting Washington, left behind al | | By CARTER BROOKE JONES, Star Staff Correspondent. MIDDLE RIVER, Md. March 26. —A bomb so powerful it eats away hillsides, yet so safe a rifle bullet can be fired through it without ex- ploding it, was demonstrated here today by Lester P. Barlow, the in- ventor who -excited the House Mi! itary Affairs Committee recently by describing in executive session his experiments with liquid oxygen ex- plosives. The demonstration was given for the press—a contingent of scme 200 reporters and cameramen from Eastern cities—on the proving grounds of the Glenn L. Martin Co., airplanes manufactures, 13 miles east of Baltimore. After seeing the demonstration, nobody, however meager his knowl- edge of explosives, could doubt some of the claims which Mr. Barlow made for his new explosive when he appeared before the congres- sional committee. Bullets Strike Device. For instance, he placed an 8-ounce sample of his lethal device, cased in a white jacket, in plain view of his audience, who peered over and around a barricade of sandbags on a steep hill. Mr. Barlow, standing be- side the newsmen, fired rifle bullets at the bomb. Two bullets struck it, each knocking jt to one side. Then Mr. Barlow's secret detona- tor—an electric device—was tached to this same somewhat bat- | tered bomb. An assistant pressed a button, and it exploded immediately, sending up a cloud of earth from the | dugout in which it had been placed. | There were other sample bombs of various sizes and capacity. When they exploded, they wreaked plenty of damage to whatever was near. One tore up a pole, tossing fragments high into the air. But Mr. Barlow’s chief purpose was to prove the safety of this type of explosive, since, he pointed out, it has been considered too hazar- dous to handle, he tossed one of the oxygen-carbon ‘“capsules” into a fire. It blazed up fiercely, but failed to_explode. He had another shot out of a mor- tar. It soared into the air and fell harmlessly. not far from where the correspondents stood on the hilitop. Called Deadliest Type. Mr. Barlow, who is a consultant to the manufacturers of Martin bombers, said the liquid-oxygen type of bomb was more deadly than any yet developed. It first was used in warfare, he added, when the Franco forces bombed Barcelona during the Spanish civil war, and, when one of these bombs hit the ground, the shock shattered an apartment house, killing hundreds, without a direct explosion. But he expressed belief, as he chatted while his assistants staged the demonstration, that the Ger- mans, who were credited with un- leashing the Barcelona bomb, had not mastered the safety feature. ‘The oxygen bombs which Mr. Bar- low detonated with this special de- vice ranged up to 5 pounds. The 5-pound bomb tossed high into the air the sandbags which had been placed against the dugout from which the explosives were loosed. 20 Planes Over Reich LUXEMBURG, March 26 (#).— Residents of Remich on the Luxem- burg-German border reported that 20 unidentified planes passed about noon today flying east. Later, they said, they heard fire from German anti-aircraft batteries. Bella Ann dropped her baby talk. “What the hell? I'm hungry.” Elmer talked to his Ma, who had divorced Pa and married a cook. Ma was no help so Elmer went to “Join the marines,” Pa suggested. “They feed you well. I will certify that you are single.” Bella Ann heartily approved after Elmer promised he'd send her his pay every month. Bella Ann wrote punctiliously— Just before every pay day: “Oor itty bitsy pie misses 0o * * * don’t forget the check.” L] Elmer didn’t. But one day, miss- ing Bella Ann more than usual, he stuck the check in his pocket, [l K| at- big question- mark about his re- | ported plans to seek the Democratic nomination for United States Sen- ator from New Jersey. | It had been reported reliably that | Mr. Cromwell had hoped to see| | President Roosevelt before making | any announcement. He came to | Somerville last | which brought a public reprimand | from Secretary of State Hull. | | Mr. Cromwell's New York oftice, | | to which inquiries were referred | tfrom Duke Farms, the Cromwell | estate here, said he left for Canada | by train last night and had no im- | mediate plans to return to this country. 'U. . Excess of Exporis (Is Largest in 12 Years By the Associated Press. War distorted American foreign trade in February to produce the ilargest margin of exports over im- | | ports for any month in nearly 12 years. The Commerce Department said today that merchandise sale abroad |totaled $346.779.000 and imports | $199,775,000, an export balance of | | $147,004,000. Officials had to dig |Into the records back to November, 1928, to find a difference as great. For the first two months of 1940 | exports surpassed imports by $273,- | 689,000 compared with $95,276,000 in | the same months last year. Exports were 6 per cent less than | in January, partly due to the shor month, but the export excess was | greater than January's because im- | ports dropped 17 per cent. Curtailed ] purchases of foreign rubber and silk were primarily responsible for the decline. | Export balances usually are re- | garded with welcome, but their size in recent months has caused some official worry because they indicate that foreigners may have to curtail purchases here for lack of accept- able money, or may have to send more gold to be stored in Govern- ment vaults. Savage, New Zealand Prime Minister, Dies By the Associated Press. WELLINGTON, New Zealand, March 26.—Michael Joseph Savage, 68, Prime Minister of New Zealand since 1935, died today. Mr. .Savage, New Zealand's first Labor Prime Minister, effected a sweeping program which raised basic wages, increased unemploy- ment relief allowances, introduced the 40-hour five-day week to indus- try and brought the New Zealand Reserve Bank under government control. P He found time for participation in foreign affairs, actively advocating that the League of Nations have stronger punitive and coercive pow- ers after its application of sanctions failed to halt Italy’s invasion of Ethiopia. In his youth Mr. Savage worked on a sheep ranch, was a miner and organized a co-operative store and bakery after ming interested in the co-operative movement. Mr. Savage never married, and when he moved to Wellington as Prime Minister he took with him an Auckland famjly who had given him & home ever since he had come from his native Australia in 1907, ‘Itty Bitsy’ Wife Twice Turns In Marine for hopped a freight and came home. Bella Ann was surprised and so was Ma. Then in walked the marines. They dropped a remark about it being worth $50 to any one who informed on a deserter. A strange gleam came into Bella Ann’s eyes. Into Ma’s, too. Elmer spent some time in the brig, but he’d no more than got out until he got a letter from Bella Ann: “Oor itty bitsy pie is knitting oo know what wif her own itty hands. Why dont’ you desert, Elmer? You ought to be by my side in this emergency.” One from Ma, too: i Mathews Quits S. E. C. To Join Northern Power Company Commissioner ‘Regrets To Leave When System Is Under Fire,’ He Says By the Associated Press. George C. Mathews has resigned { from the Securities and Exchange | Commission, effective April 15, to take a position with the Northern States Power Co. The resignation was announced Wednesday _after | today by the S. E. C. with a state- | making a pro-ally speech at Toronto | ment by Chairman Jerome N. Frank | that the Government was “losing one of the ablest public servants.” | Mr. Mathews is one of the origi- nal members of the commission and previously had served with the Federal Trade Commission. He was appointed as one of the two Republican members of the S. E. C and is from Wisconsin. Expressing regret that Mr. Mathews felt it necessary to leave, President Roosevelt said in a letter to him that “your service with the Gov- ernment has not only been a long one but one of great usefulness.” He added a word of appreciation for what he said Mr. Mathews had done to make the S. E. C. “an instru- ment of constructive helpfulness.” Regrets to Leave Now. In a statement the retiring com- missioner said that he already had been in Washington longer than he expected to be when he accepted the,original appointment. He added that he regretted that his plans to leave the S. E. C. “should mature at a moment when the basic system | of Federal securities regulations is under attack.” “That system is fundamentally so sensible that it is inconceivable to me that the country would permit | it to be destroyed or seriously weak- ened,” the commissioner said. ¢ * * Basically, all of the statutes administered by the S. E. C. are sound laws. They are capable of improvement as conditions warrant. But if there is to be real improve- ment of these laws their revision | jhguld be undertaken as a scientific job. “It will be unfortunate for the country if a program of revision is undertaken in the heat of a political controversy.” Presumably this part of the state- ment was a reference to two reso- lutions for congressional investiga- tion of the S. E. C. introduced in the House yesterday by Representatives Crawford, Republican, of Michigan, and Thorkelson, Republican, of Montana. Demands for such an in vestigation were made last week b; the Investment Bankers' Associa- tion in a public letter addressed to Mr. Frank. Mr. Mathews said that “no sen- sible person wants to weaken the | prohibitions against stock manipula- tion. % Valuable Business Asset. “The disclosure of financial and corporate information which has been brought about over the past six years has proven to be a valuable business asset. As for regulation of public utility holding companies, it unquestionably was and is called for. In that field one of the com- mission’s biggest tasks is the section of the law calling for integration and simplification of holding com- pany systems. “I think the most constructive job will be done if the utilities recog- nize the importance of compliance and help to work out the program. Any other policy means that the commission must do the job alone. Self interest alone ought to cause the companies—as some of them are doing—to try to assist in the ap- | plication of the law.” Cash Reward “I sure wouldn't stay with them ole marines. Come home and get a new flat and they won't find you.” Elmer replied, “Nuts to the marines. If it's a boy we will call him Elmer, jr,” and hopped an- other freight. . Bella Ann locked him in a back room. Ma and Bella Ann lived in the same block. Out they popped at almost the same minute early next morning. Bella Ann was fatter, but she was younger. She led for several blocks. Then her ma-in-law caught her on a downgrade. But that last block to the recruiting (See “ITTY BITSY,” Page A-4) 4 Commissioners 'May Suggest Income Tax Hike Revision to Include Clarification of Those Exempt Also Hinted BACKGROUND— House District Committee re- ported out combination sales and income tax bill after Ditsrict Court of Appeals, in recent de- cision, held that a Washington Federal worker could not be re- quired to pay intangible property tar if he maintained a legal resi- dence in some State. Congres- sional leaders believed that this decision, if upheld by Supreme Court, would apply equally to present income tar law, which supplanted former intangible tar. Belief that it may be necessary to revise the present District income taxes, perhaps as to definition con- cerning those subject and perhaps to provide for increased rates, was suggested today by the Commission- ers after they had consulted with key District officlals on the District’s new financial crisis. Earlier, the Commissioners had said that whether it would be neces- sary for them to increase the Dis- trict’s $1.75 real estate tax rate, effective July 1, would depend on whether the District received, by October 15, as much as $3.200.000 from the District’s present personal and corporate income levies. Maj. Daniel J. Donovan, District auditor and budget officer, s skeptical as to whether that total would be achieved. The Commissioners took no im- | mediate action, but indicated that, | if necessary, they would be pre- | pared to submit a proposed new District tax program to Congress at the opening of the session next Jan- uary, in view of the refusal of the | House yesterday to act favorably on | the proposal for a combination of a 2 per cent sales tax, with an income tax on the higher brackets. as a sub- stitute for the present income levies. | Program Twice Rejected. In their formal statement the | Commissioners said: | “In 1939 the Commissioners sub- mitted to the Congress a tax pro- gram which was believed to be suit- able for the District, and which, with the present Federal rate of contributions, would have raised ample revenue for the operation and development of the Nation's | Capital. The Congress has rejected | this program twice and has clearly indicated a preference for the pres- 1ent form of tax structure. | “It is believed that it will be nec- | essary to revise the present tax law |1n order to raise sufficient revenue to meet the requirements. The in- come tax may have to be revised as | to definitions and possibly as to rates. The proper course to pur- sue, particularly as to the income | tax, can better be determined after | receipt and analysis of income tax | returns due to be submitted by | April 15. ! “The present tax law may not raise sufficient revenue to meet the budget submitted to and now under consideration by the Covgress. While | the recent act authorizes borrow- ing from the Federal Government to meet cash requirements due to deferred income tax payments, the act of June 29. 1922, requires the Commissioners 1o fix such tax rate on real and personal property which, together with other reve nues, will meet the payment of ex- penses under appropriations made by Congress, Depends on Revenues. “Whether or not an increase in the real estate and tangible personal property taxes will be necessary depends on the revenues produced by the present law and the appro- priations to be made by Congress. “It is proposed to analyze the forthcoming income tax returns and to formulate a revised tax program | for submission to Congress on the | first day of its next session, if uch action is found to be neces- sary.” Following today's conference with two key District officials, Commis- sioner Allen said that if the re- turns from the income levies amounted to as much as $3,200,000 even though no further tax legis- lation were passed at this session, he did not believe it would be nec- essary for the District to boost the real estate tax rate above the pres- ent figure. Report on Receipts. Tax Assessor Edward A. Dent re- ported today that his latest repor| on receipts from the income levie: showed the payment of a total of something more than $682,000. Of this $473,000 has come from the personal net income levy, on which the District has received nearly 29000 taxable returns and more Photos That Might Peril Military Secrets Banned By the Associated Press. President Roosevelt formally pul into effect today a tight ban on unauthorized photographs whick might imperil Army or Navy secrets On the eve of the fleet's annual war games in the Pacific he signed an executive order detailing nu- merous places and objects which may oe photographed or mapped only with official permission and censorship. Included were all military and naval posts, closed naval harbors areas required for fleet purposes factories turning out material for the armed services, and all equip- ment and documents officially rated “secret,” ‘“confidential” or ‘“re.. stricted.” The order made effective a twoe. year-old act approved by Congrest at the request of the War and Navy Departments. Some provisions haé been put into effect earlier. Viola- tions of the act are punishable by & maximum fine of $1,000 and im- prisonment up to one year, *