Evening Star Newspaper, January 26, 1942, Page 7

New Tax Field Sought To Yield Bulk of :9-Billion Increase ¢ Sales and Withholding i Levies Are Mentioned By Senator George . By the Associated Press. * A month’s intensive study has . convinced most congressional fiscal . experts that the bulk of a proposed $9,000,000,000 addition to Federal - revenués will have to be raised by . some new form of taxation, Chair- man George of the Senate Finance Committee said today. “The great problem,” he declared, “ix to determine whether this would be a sales tax, a withholding tax | on pay rolls or some other system. | There has been no definite decision | made on that point.” | Senator George told reporters, | however, that “satisfactory prog- ress” toward the formation of a new tax program was being made in | daily conferences between the Treas- | ury officials and representatives of | the Joint Congressional Commitee on Internal Revenue, ; Sees Three Weeks of Work. 1 Nevertheless, he believed three | more weeks of work would be nec- | essary before definite recommenda- | tions could be agreed on and pre- | sented to the House Ways and Means Committee, which then will start public hearings on the new tax measure. ‘The chief problem now, Senator George said, is to find a form of new taxation which would yield & substantial share of the $7.000,- 000,000 in general taxes called for in President Roosevelt’s budget. Consideration will be given later to a proposed $2,000,000,000 addition to social security revenues. | “We have found.” Senator George | said, “that we can't depend on the | individual and corporation income | . tax to yield the major share of the | additional levies. We are going to| have to get a substantial part of them from some form of taxation which the Federal Government is| COMMAND PERFORMANCE—Edward Arnold, one of the Hollywood stars who will contribute to the Washington celebration of the President’s Birthday, is shown with Mrs. Arnold entering the National Theater last night to view the comimand performance of “Watch on the Rhine.” (Story on Page B-14.) Churchill s Warned Of Intrigue in Own Party fo Unseat Him Press Demands Cabinet Changes and Other Steps in War Effort By the Associated Press. LONDON, Jan. 26.—The strange 1 | R AL AR P e not now trying.” Other Tax Possibilities. He then mentioned the possibility of sales taxes, payroll taxes or some other method. The Senate committee chairman said there were obvious difficulties to be faced in an attempt to drain off more revenues from business con- cerns, particularly since the revehue of a great many of these firms al- ready had been reduced by the loss of materials through priorities. “Many of the smaller corporations, and some of the larger ones as well, are going to be badly crippled by this war program.” he said. “Not all of them can be converted to war work - and many of them are going to have to be shut down.” “Supertax” on War Profits. He said there was room for the imposition of a “supertax” on war profits made by those industries holding direct or indirect contracts with the Government. While this might raise a substantial amount of revenue. he predicted that it would be offset in part by the loss of rev- enues from corporations which did not obtain such contracts. Senator George said recently that he was opposed to any reduction in the present personal exemptions on individual incomes, now set at $750 | for single persons and $1.500 for mar- | ried couples. He said then, however, | that increases in both individual and | corporation rates were almost cer- | tain to be made. Explosive Mines Course Opened at Penn State By the Associated Press. STATE COLLEGE. Pa.. Jan. 26— A course in explosive mines used in warfare took its place in the curriculum of Pennsylvania State College today. Instruction in how to construct a | death-dealing mine and how to de- molish one are included in the study started by the department of min- g, and Prof. David R. Mitchell said they were intended to prepare students for service in the armed forces. ! The knowledge also would come in handy in civilian defense, Prof. Mitchell asserted Methods of blasting oil. gas and water wells—the scorched earth pol- iey demonstrated in Russia and the Netherlands Indies—are included in the course. 3 Feared Dead in Fire At Quebec War Plant Ev the Associated Press THETFORD MINES, Quebec. Jan 26.—Fire, followed by several ex- plosions, broke out in a war indus- tries plant here todav. First reports £aid three girls were killed Police of this asbestos-mining town. 50 miles south of Quebec. said others might be missing. Pan American (Continued From First Page.) lution to sever relations as soon as the conference adjourns. Only Two Would Be Left. Argentina and Chile then would be left as the only South American countries not breaking their ties with Germany, Italy and Japan. Paraguay's decision was announced | by the fereign ministry at Asuncion | last night after a cabinet meeting. | At the same time, Uruguay quickly | gave effect to her action by preAJ senting passports to Axis diplomats «" At Montevideo and notifying her . own representatives in those coun- | tries to leave immediately. | In Lima. Peruvian authorities | * took what were called “severe meas- | ures against Axis propagandlns"} " and tightened their control of radio stations. | Nations’ Speed in Acting | Commended by Hull } Secretary of State Hull today de- . &cribed the increasing rapidity with " which South American nations are breaking off relations with the Axis nations as encouraging to those bearing the brunt of resistance to the forces of barbarism. ‘The significant and important stefs being taken by the Latin American republics severing rela- tions with the Axis in line with an agreement reached at the Rio de Janeiro Conference are entitled to | the highest praise by other nations which are going forward with co-[ operation for the common defense | spectacle of Communists and | other Leftists—with whom Winston | Churchill has shown scant patience —warning the Prime Minister | against intrigues within his own Conservative party to unseat him, unfolded last night as the nation awaited the three-day war debate in Commons. As time approached for the show- down between Mr. Churchill and his critics, the press without a dissenting voice called for new faces in the cabinet, creation of some form of | Imperial War Council to satisfy | Australian demands, concentration of all war production under a single head and assurances of greater effort | in the western Pacific region. From almost every critic came assurances that Mr, Churchill never was more popular personally, but there was the equally widespread feeling. in the unvarnished words of one editorial, that “our war machine still carries too many duds and deadheads.” Australia’s pleas for quick help and & greater voice in the empire's war strategy brought varied reactions, including dismay in some quarters. “I hate to see the dominion’s pre- | mier «John Curtin) appealing simui- | taneously to the President of the! United States and the Prime Min- ister of Britain.” Beverly Baxter, a| Will the Government continue to will be in Norfolk. Conservative member of Parliament, | commented in a newspaper lrlicll} “It breaks tradition of a century ! and cuts the cord of unity . . sorry Mr. Curtin has seen fit to make | a direct appeal to Washington.” The widely-read Reynolds News suggested that Mr. Churchill's de- fense against criticisms of setbacks on the Pacific front will be made easier by “America’s frank admi sion of the failure of her Pearl Harbor chiefs” because. it said, “it has been an open secret that our own setbacks were in large measure due to the absence of promised sup- port from America.” “This fact,” it added. “explapns why the Malayan coast was left open to Japanese attack and was partly responsibie for the lack of protec- tion for the Prince of Wales and the Repulse.” Mr. Churchill's decision to ask for a vote of confidence if his govern- ment were challenged gained signif- icance through reports that Con- servative wheelhorses were trying to dissuade him from such a course. D. N. Pritt, member of Parliament whose Leftist views brought a de- mand less than a year ago from the | Labor Party that he resign from it, told a Help-for-Russia meeting that “intrigues are afoot to get rid of Mr. Churchill and install in his place a reactionary Prime Minister | who would later on make a bargain with German reactionaries claiming to be free of Hitler's bad qualities.” One columnist. referring to what he called an “ultimatum” from the Conservatives, declared he might “become again a man with a public and no party” if he rejected the threat and - “like Chamberlain. a man with a party and no public,” if he accepted it. The lobby correspondent of the usually well-informed Press Associ- ation predicted, however. that no more than 60 votes against the gov- ernment can be expected and that | Mr. Churchill. therefore, will come out with an impressive showing of support. Library Group to Ele;t Election of three trustees and adoption of a budget are sched- uled at the annual meeting of the Silver Spring Public Library Asso- ciation tonight at the Dispensary Building. Delivery of Night Final Edition The Night Final Edition of The Star, with two addi- tional pages of last-minute news, is delivered through- out Washington and nearby suburbs, together with The Sunday Star, at 85c per month. This edition gives the latest developments of the day in International, Na- tional and Local news, with complete Financial Reports. Special delivery is made between 6 p.m. and 7:15 p.m. THE EVENING STAR, WASHINGTON, D. C., MONDAY, JANUARY 26, 1942 Voorhis Says Nation Won't Find Normalc After This War Catholic Industrial Parley Warned of Period of Joblessness to Follow ' The Nation will not be able to re- turn to so-called “normalcy” after this war as it did after the last con- flict, Representative Voorhis, Dem- ocrat, of California today told the opening session of the two-day Washington regional meeting of the Catholic Conference on Industrial Problems. Calling for thorough study look- ing toward post-war adjustments, Mr. Voorhis said the preservation of our liberties — personal, economic and political—will depend on our | being able to meet the post-war crisis. The two-day conference opened at Carroll Hall, 924 G street N.W., where sessions will be held all day today and tomorrow. Inherent dangers in the period following the war, wherein there may be temporary unemployment of many persons, will provide oppor- tunities for unscrupulous men to seize control of the Nation, the speaker warned, adding that all types of totalitarian philosophies must be guarded against. Head of Contractors Speaks. —Star Staff Photo. | of the War Production Board: Fran- | | cis P. Fenton, director of organiza- | tion, American Federation of Labor, | and the Right Rev. Prancis J. Haas, director of the school of social sci- ences, Catholic University. \Capt. Duncan Wood Dies; 'Was Refired Navy Veteran Capt. Duncan Mahon Wood, U. S. N., retired, died yesterday at the Naval Hospital in Norfolk, the Navy ' Departmgent announced today. He was 65 years old. A native of Maryland, Capt. Wood was appointed to the Naval Academy in 1892 from Alabama. He saw duty on several vessels before going to the Norfolk Navy Yard in 1915 as aide to the commandant. After a course in the Naval War College in 1917, he took charge of fitting out the U. S. S. Marietta and took command of that vessel when she was commissioned. He assumed command of the U. S. S. Pocahontas with the temporary rank of cap- tain in January, 1918. Later he com- manded the U. S. S. Takoma and was given a special letter of com- mendation from the War Depart- ment for World War services with that vessel. The officer reverted to his former rank of commander after the war and was for a time assistant to the commandant of the 13th Naval District. On_being placed on the retired list, June 30, 1926, he was ordered to continue in command of | | solicitation also flagrant, Social Hygiene Group To Hear McNutt Speak At Observance Feb. 3 Session Here One of Many Sponsored by National Health Authorities FPederal Security Administrator McNutt will be the speaker at the | Washington observance of the sixth- annual Social Hygiene Day, at 12:15 pm., February 3 in the Y. M. C. A. | At the thousands of meetings sponsored by the Public Health | Service and the Federal seeurltyi Agency’s Division of Social Protec- tion during the firsi week of Feb- | ruary, special attention will be given | to informing the public about meas- ures for protecting the armed forces and civilian population from ve-| nereal disease and its major source | of infection, prostitution. The Junior Board of Trade, the National Youth Administration, the | Syphilis Journal Club and the Dis- | | trict and Arlington County Health | Departments will send delegations | here to the luncheon, sponsored by | | the District Social Hygiene Society. | Maj. Gen. Merritte W. Ireland heads the Committee on Arrangements, which includes Judgé Fay Bentley, U Capt. Rhoda Milliken and Mrs. Maurice D. Rosenberg. “With Washington's selectees showing a higher incidence of syphilis than any city in its popula- tion group throughout the United States—41,. times as high, for in- | stance, as the selectees from New | York City—and with prostitution | our com- | munity stands to profit greatly from these educational efforts,” said Ray | Everett, executive secretary, | Social Hygiene Society. | “We hope they will aid in securing | needed personnel and facilities to enable the District’s Health and Po- lice Departments better to cope with | conditions that have brought so| much discredit on this city—the | strategic center of democracy’s de- | Plans fo Py Up’ Camps Mapped by District Group Legislation “to protect soldiers and sailors from liquor and vice” will be brought forward at a “strategic” time, a rally of the District United Dry Forces was told yesterday. Calling for such legislation, Mrs. D. Leigh Colvin, vice president of the National W. C. T. U., charged at the rally that liquor helped de- feat the French Army in World War II Sharing the program with Rep- resentative Guyer of Kansas, Mrs. Colvin urged early passage by Con- gress of the Sheppard-Johnson bill, which would bar sales of beer, liquor and wine in and near Army and Navy posts. ‘The measure was tabled in the Senate on January 16, but the dry forces said they were waiting for a “strategic” time to bring it up again. . ‘The Rev. Thomas E. Boorde, pas- tor of Anacostia Baptist Church and president of the District United Dry Forces, presided at the meeting. held | at First Congregational Church. Manning Named to Council Harold Manning has been elected | Councilman from the second ward in Edmonston, Md., to fill the un- expired term of Councilman R. W, Frere, which expires next Ma; Dr. John J. Field DENTIST 406 7th ST. NW. MEt. 9256 Third Floor, Woolworth Building £ -i‘o"v;;.'sTfi.. With idney Trouble You can assist kidneys to normal function- ing by following the health resort method at home. Drink Mountain Valley Mineral Water from Hot Springs Ark. Indorsed b physicians for over 30 years. 1062 for informatign and booklet Mountein Velley Mineral Water ME(._1082. 904 _12th W | RUG Brexry Our Duty L8ANED AND $TO (a/l Mr.Pyle na.3as? | Associated Contractors of America. Another speaker on the morning ; the U. S. S. Relief, and was commis- program was Harry J. Kirk of the | sioned & captain on the retired list | from June 21, 1930. Capt. Wood held who also posed problems that will | the Navy Cross. Philippine Campaign | fense.” | | sANITARY CARPST & | | »ve.cLzanine co. 106 INDIANA AVE. TO MEET DEMAND LATE EVENING CLASSES SPANISH 9 10 10 P.M. STARTING MONDAY Berlitz School Hill Bldg. 13th AND EYE Spain-U. S. Sailings To Resume on Feb. 7 By the Associated Press VIGO, Spain, Jan. 26.—Direct steamship service between Spain and the United States, interrupted by the war, will be resumed on Feb- ruary 7, when the Spanish liner Marquess de Comillas sails for New York. Authorization for the voyage was granted yesterday. The liner will call also at Havana Operating officials announced a 75 per cent increase in passenger fares. Thickness of British railway tickets, which has remained stand- ardized at a 32d of an inch since 1838, will be reduced to a 42d. WASHING MACHINES NA. o230 “ of all the Western Hemisphere, Mr. Hull said. o daily. i face the country after the war. What will be done with $9.000.000.000 worth of imdustrial plants the Fed- eral Government is constructing? operate them or will they be turned over to private individuals? he asked. Mr. Kirk also looked for vast . T am | changes in the economic life of the | Nation because of the construction of so many airplanes, and he fore- cast their use by at lease 1 out of every 10 persons. The Rev. Wilfrid Parsons, S. J. professor of socialogy and politics at Catholic University, was a third speaker, taking as his subject “The Encyclicals’ Appraisal of the Eco- nomic Order.” The encyclicals, he said, criticized the existing sociel order principally | on the way it is divided horizontally by classes, instead of vertically by orders. Society is divided into those who own and whereas, for the benefit of all. it should be divided according to voca- tions, which would cut through the class line and put workers and‘man- agers in the same groups. he said Msgr. Shehan Is Chairman. Msgr. Lawrence J. Shehan, pastor those, who work. Medal. Spanish Campaign Medal | and the Mexican Service Medal. | His widow, Mrs. D. M. Wood, lives in Portsmouth, Va. Funeral services | Hikers Make Trip Led by Dr. A. J. Buscheck of the Trail Club of Hawaii and Paul Magill, 59 members of the Wander- bird Hiking Club of Washington yes- | terday went into the Shenandoah National Park near Skyland. Va. The club crossed Thorofare Mountain to Indian Run then back to their buses on the Skyline Drive. WANTED 1940 PONTIAC WILL PAY HIGH PRICE FLOOD PONTIAC 4221 Conn. Ave. WOodley 8400 Oudest Pontiac Dealer in D_C . of St. Patrick’s Church, is chairman | of the conference. Speakers this afternoon were to be Dr. George T. Brown, department of economics, Catholic University; W. R. Ogg, research director, Amer- ican Farm Bureau Federation, and | the Rev. Dr. John M. Hayes, social | action department, National Cath- olic Welfare Conference. Appearing on the program to start at 8:15 o'clock tonight, will be J. C. | Aspley, industrial relations adviser THE ABBEY 51st ST. 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