Evening Star Newspaper, June 3, 1940, Page 5

Roosevelf Reported Feeling Out Allies In Peace Move Indirect Approach From Berlin to Sound Out French Reported By CONSTANTINE BROWN. There are rumors in reliable quarters that President Roosevelt is | trying to feel out the Allies regard- | ing an early conclusion of the Euro- | pean war. These rumors have not yet been substantiated. It is reported that the American Government has been approached indirectly from Berlin to sound out the French regarding cessation of hostilities. From which quarters this approach has been made cannot be positively ascer- tained. But is is known that Mr. Roose- velt has been in constant communi- cation with Premier Mussolini for the last 10 days. The Italians, de- spite the bellicose tone of the gov- ernment-inspired press and of all their leaders, have not yet entered the war, although Germany—their potential ally—has scored spectacu- lar victories. The Italians continue | to threaten the French with words, | but they have not translated words into facts. | These considerations lead well- | informed quarters to believe that the suggestion for another attempt | to put an end to the war may have come from Mussolini himself. It is| admitted in these quarters that | “something is goin on” and that “a | situation similar to that of 1916 exists again.” But outside these general statements nothing more Dositive could be learned in the last 24 hours. Modified “Hitler Terms.” In diplomatic circles it is be- lieved Il Duce has made a sugges- tion to Washington to become the intermediary between the belliger- ents on modified “Hitler terms.” It is believed the Fuehrer is willing to coat the pill of victory by having his own way, but offering the French parts of Belgium in exchange for substantial territorial concessions to Italy, the recognition of all the conquests Germany has made and “disarmament” on the basis of dis- mantling the Maginot Line. No one in Washington volunteered the spec- ulation on what Hitler would want from the British. That Mussolini is willing to sell Italy's non-intervention at present for a settlement of the war on Ger- many’s terms seems probable. He knows Mr. Roosevelt is anxious to bring about peace negotiations. The President still believes much good could be achieved at the conference table where nations could discuss their problems after having had a taste what modern warfare means. Mussolini is said to want to exploit this feeling of Mr. Roosevelt's by pointing out that Italy’s entry into the war now would mean the execu- tioner’s last blow to the Allies. French Reported Cool to Idea. ‘The same unconfirmed reports say the French are cool toward such proposals. They know that unless the Germans sue and do not merely offer peace, a peace discussion at this time is nothing but a camou- flaged surrender, the British, battered as they have been during the last three weeks, are convinced Germany has made her supreme effort, already the main strength of the hurricane has been spent, and that with the support of American industries they can put &n end to the Hitler regime. They mppear unconcerned over Italy's threat to join the fighting. They seem to regard Italy’'s entrance as the tail end of the hurricane and | believe they could weather it with- | out trouble. They might be induced to consider peace conversations, but not on Herr Hitler's camouflaged | terms. Defense (Continued From First P_age)_ Jerome Frank, chairman of the Se- | eurities and Exchange Commission.‘r Mr. Rayburn told newspaper men | after the conference that the legis- lative chiefs still had hopes of ad-l Eurning before the start of the epublican national convention on June 24. The President’s luncheon guest | was Secretary of the Treasury Mor- genthau, a regular Monday visitor. Sacrifices Pointed Out. In asking for a broader income tax base, Mr. Sargent said it is un- derstood that nationa' defense needs require sacrifices, and the step he proposed would bring to all groups &n awareness of that fact. The witness did not oppose a pend- sng bill calling for a 10 per cent supertax starting with this year's earnings, but asked the committee to correct what he termed inequities | in the basic structure to which this | supertax is to be added. Mr. Sargent urged the Io]lowing‘ ehanges in the present corporation tax structure, on which the new supertax would be imposed: 1. Remove the ban on consolidated returns by parent companies and their subsidiaries. 2. Exemption of intercorporate dividends from taxation. 3. Lower present high surtax range from the 4 per cent to 75 per cent range to a 4 per cent to 59 per cent Tange. Incentive for Capital. Under questioning by Represent- ative Cooper of Tennessee, the wit- ness estimated the first two changes might mean a loss of $115,000,000 in revenue, but contended a lower sur- tax schedule would not reduce the return in the long run because it ‘would stimulate investment of capi- tal for expansion of industry. He also estimated that broaden- ing the base of individual income taxes would bring in between $300,- 000,000 and $400,000,000 more. Earlier, the committee received a letter from the Distilled Spirits In- stitute, Inc., stating its members will make no objection to the proposed increases in liquor taxes for pre- paredness. The letter, from Wesley A. Sturges, executive director of the institute, read in part: “The members of the institute hope that the proposed increases in the rate of the Federal tax on dis- tilled spirits from $2.25 per gallon to | #3 per gallon and on brandy from $2 per gallon to $2.75 per gallon, will contribute their full share of the additional yearly revenue of $85,000,000 which the Government seeks to realize from alcoholic bev- erages. “We respectfully urge, however, The French and | | and a House Appropriations Sub- that these increases in the Federal rate of tax involve certain hazards " THE EVENING STAR, WASHINGTON, D. C, MONDAY, JUNE 3, 1940. BOMB HITS HOSPITAL TRAIN—A wrecked hospital train after it was hit by a Nazi bomb re- cently some where in France, according to French sources. Some of the cars were completely demolished and others had windows blown out. i » Interior of a car on the hospital train. Photos passed by French censor.—Wide World Photos. | of which the Congress should take | cognizance. Bootleggers Pointed Out. “We further ask that the Con- gress shall not be unmindful of the | ever-threatening competitor of the legal industry, namely, the bootleg- ger. To the extent that our taxes are increased, the margin of profit for the bootlegger is made more at- tractive. The granting of additional funds for law enforcement should be given consideration we believe, to insuré the public revenue.” As the Ways and Means Com- mittee sought to complete tax hear- ings by tomorrow, the Senate took up the naval expansion program committee began consideration of the | administration’s latest request for more than $1,375,000,000 for national defense purposes. The money would be used for expanding the Navy | and enlargement of the mechanized | forces of the Army. | Meanwhile demands were voiced | in Congressional circles that the Government avoid greater deficits| by boosting special defense taxes beyond the figure of $656,000,000 set last week by the Ways and Means Committee before President Roose- velt's second message asking ex- pansion of the defense forces. Amount Seen Insufficient. Senator George, Democrat, of Georgia told reporters the country would be in ‘“a serious condition” unless $750,000,000 to $1,000,000,000 annually is provided in the pending tax legislation. Senator Brown, Democrat, of Michigan urged in a speech last night: Senator Vandenburg, Republican, 7-Hour Service Every 6 or 8 Exp. Roll and As a special service, we are in- These prints are just about double 8 exp. roll film de- oversize prints___ wn_ Electrie Ce. N. “Let us meet the challenge (of of Michigan proposed ‘“complete Printed 25 troducing oversize prints, the the size of the prints you usually veloped and print- ACE PHOTO SERVICE sconsin Ave. N.W. defense)) by paying the bill.” — A 5x7 Enlargement With Developed Oversize Prints newest photo finishing feature. get from your camera. Any 6 or ed complete with Apex Radio Co.. 709 8th St. N.W. at G Geori Films left 9:30 A.M. Ready 4:30 P.M.| reorganization of the Government’s finances,” and called the defense tax bill “a mustard plaster on a cancer.” Meanwhile, Senator Pepper, Dem- ocrat, of Florida was understood to have suggested to President Roose- velt that the Army and Navy be authorized to “trade in” older war- planes to the makers, who then could resell them to the Allies for quick delivery. Critics argued that the United States should not weaken its own air forces at this time. Holton Arms Graduafes 45 Students Today Holton Arms School will graduate 45 girls this afternoon in the school auditorium in the closing phase of its three-day commencement which yesterday saw the awarding of spe- cial prizes to honor students. After the presentation of diplomas by Mrs. J. M. Holton, principal, a senior class reception will be held on the campus. A banquet tonight concludes graduation exercises. An award yesterday went to Peggy 8 Davis of Kansas City, Mo., for being the outstanding athlete of the school year. Frances Acher of Winter Park, Fla., received the alumnae iprize for being the outstanding }senior. Two Washington girls received honors for their work on the school afnual. They were Margherita Stirling, daughter of Dr. and Mrs. W. Calhoun Stirling, and Alice Lalor Molten, daughter of the late Capt. Robert P. Molten and Mrs. Molten. Miss Davis and Mary Katherine Schutts of Lake Charles, La., grad- uate this afternoon magna cum laude. 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WORTH « DALLAS Commuter Service to NEW YORK Stewardess Service |Shipbuilding Workers Back at Jobs After Three-Day Strike Agree to Company Plan For Pay Raises Pending Further Negotiations By the Associated Press. KEARNY, N. J,, June 3.—Thous- ands of workers ended in the huge yards of the Federal Shipbuilding & Dry Dock Co. today a three-day strike which had delayed construc- tion of six United States warships. Some 400 came back at midnight and then 5,000 more returned for the 6:30 o'clock shift. The remainder of the 8,000 employes report back for the evening shift. The sudden walk- out Thursday midnight halted work on two cruisers and four destroyers, part of the Nation's defense pro- gram. Agree to Company Plan. Members of Local 16, Industrial Union of Marine and Shipbuilding Workers of America (C. I. O.), the employes agreed yesterday at a mass meeting to accept a company pro- posal for 2% to 4 cents an hour sal- ary increases, pending further ne- gotiations, John Green, national president of the union, who announced the vote, said employes would go back to work “to avoid charges of obstructing the national defense program.” In addition to the warships, three cargo vessels and two tankers, also units of the augmented defense pro- gram, are under construction at the yards. Union spokesmen previously had said naval construction would not suffer because of the walkout since, they claimed, work was well ahead of schedule. Four Points Remain, A union statement said four points remained to be settled: A 10-cent- an-hour salary increase, one-week vacations after a year's employment and two weeks after three, a union pecial preferential shop seniority clauses. J. H. Love, industrial relations manager of the company, said the company would be willing to con- tinue negotiations on the disputed points. Approximately 4,500 -accredited members attended the union meet- ing yesterday at Jersey City and authorized a committee of six to go to Washington today and “lay before the appropriate Government agencies the men’s demands for further adjustment in the -new agreement.” Orchestra Leader Light Badly Hurt in Crash By the Associated Press, IPSWICH, Mass, June 3.—One man was killed and Enoch Light, 34-year-old Danbury (Conn.) or- chestra leader, and three other men were seriously injured yesterday in & head-on automobile collision near here. The dead man was Perley D. Eaton, 28, of Boston. Mr. Light suf- fered a fractured skull, shoulder and ribs. State police at first reported he had been killed. The others injured are: Fowler G. Hayes, 30, of Jackson Heights, N. Y., and Arthur Lombardi, 33, New York, both passengers with Mr. Light, and Dominic K. 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