The Key West Citizen Newspaper, March 17, 1933, Page 1

Associated Press Day Wire Service VOLUME LIV. No. 65. House And Senate To Confer: On Beer Bill. To Adjust Difference Two Branches Will En-|ENDORSEMENT OF Endesvor To Straighten! SALES TAX GIVEN |. Covermene wit nov re Out Mattérs On _ coholic Content (By Associated Press) WASHINGTON, March 17.—House democratic leaders decided today to send the beer legislation to conference with the senate to adjust the dif- ference between the two branches on alcoholic con- tent, the house bill having allowed 3.2 percent and the senate bill limiting it to 3.05. Democratic Leader Byrns said proponents of the bill desired that the house disagree to the sen- ate amendments, _ Chairman Doughton, of the ways and means com- mittee, said Representa- tive Cullen, New York, ‘and McCormack, Massa- chusetts, democratic spon- sors of the measure, fav- ored 3.2 percent alcoholic "The matter will have to be put to the house which apparently is ready to differ with the senate. INCREASE SHOWN IN INCOME T OVER oi Gaal MORE IS TAKEN IN OVER SAME ‘PERIOD LAST YEAR (My Associated Presa) AL IN MISSISSIPP DECISION REACHED FOLLOW- ING SURVEY MADE BY SCHOOL OF COMMERCE AND U. ADMINISTRATION (Special to The Citizen) UNIVERSITY, Miss,, March 17. —In order to determine whether or not Mississippi had made a wise choice in electing to use the gen- eral sales tax to rescue herself from financial embarrassment, a survey was undertaken by the school of Commerce and Business Administration of the University of Mississippi. After considering all phases of the tax it was given complete indorsement. In the printed summary, issued by the university, “‘Mississippi’s general sales tax—how it works,” the following conclusions were reached: “The tax is exceeding estimates @ Tevenue producer, J “According to the opinion of the majority of merchants inter- viewed the tax is being generally paid; that is, there is not an ex- cessive amount of evasion. “The tax is being economically administered. The cost of col- Jection for the first eight months operation -of the law-was' only 8.8 percent, This is a‘ good record for a new tax. The in- come tax, which has been in op- eration nine years, costs 3.8. per- eent to administer. The ad va- lorem property tax, which has been in operation continuously since 1870 costs approximately 5 percent. “The sales tax has proved it- self possible of administration. “Taking ‘into consideration the fact that the tax is a new one for the present generation of _ Mis- sissippians it is not an unpopular tax. A substantial majority of merchants and manufacturers ap- prove it. The consumer registers far more approval than disap- proval. The spread of the tax over the year and the small size of the payments appeal to the taxpayer. “In the main merchants. shift the tax. “There is little loss of business: in the state due to the tax, “The incidence of the tax is primarily on the consumer. “Failure to Shift the tax is due either to the lack* of co- operation among the merchants} or to small sales of certain types! of merchandise, “The Sales Tax, judged by its) efficiency as a revenue producer, and by its reaction on business in the state at a time of great busi- YOU AND YOUR MON No. 5---How De-Hoarded Gold| By J. R. BRACKETT (By Asacelated Press) ‘ “NEW YORK, March 17. —The most valuable money in the world is rapidly be- coming a money that can’t be spent. vents its ordinary use, and govern- ment pressure brought some $100,- 000,000 of it out of hoarding with- in a week. And by the mere movement of these private hoards into official resting places in bank vaults the Federal Reserve system can — in- crease the $100,000,000 in gold money to $250,000,000 in Federal Reserve notes redeemable in gold. Gold The Measuring Stick This is an example of what gold jhas become in the long evolution of money. “impractical as a mon- ey for everyday use because of its scarcity and fragility, it is a base and a measuring stick for other money. Federal Reserve notes are the nation’s most widely used curren- ey. When the bank holiday began about $3,500,000,000 worth of them were in circulation. By law these notes are backed with 40 percent gold and 60 percent gov- ernment bonds or business men’s. notes. Thus, by law, $1,400,000,- 000 in gold (40 percent) and $2,- 100,000,000 (60 percent) in bonds and notes was all that was needed to support the $3,500,000,000 of Federal Reserve notes. Benefit From De-Hoarding The new Federal Reserve bank notes need no gold for backing, since they are issued on bonds and other collateral deeméd sufficient by the Federal Reserve » banks. ‘Three billion-or-mere-could be is- sued in this form of money. But the more gold in the banks the greater the possible issuance of Federal Reserve notes and the MURDER CHARGE LODGED AGAINST THREE IN OREGON DEALS WITH TRIO HELD IN CONNECTION WITH SHOOT- ING OF MEDFORD CONSTA- BLE ON SERVING WARRANT (Ny Annociated Presny MEDFORD, Oregon, March 17. Three persons faced charges of first degree murder today follow- ing the fatal shooting of George Prescott, Medford constable, when he attempted to serve a war- rant on Lewellyn Banks, 62, polit- ical crusader and editor. Banks was indicted with sever- al others on a charge of stealing and destroying 10,000 ballots from the Jackson county court- WASHINGTON, March 17.—| ness distress as a result of the Income tax collections for March| ™°8t Severe depression the busi- 15, exceeded the amount col- lected March 15 a year ago, by approximately $1,011,000. In making public the figures to- day the treasury said also that collections for this month thus far will be approximately $2,000,-| 000 more than for the same num- ber of days last March. USE MODERN LIGHTS IN LONDON SQUARE (By Aspoctated Presa) LONDON, March’ 17:—Trafal- ger Square, whence a dozen streets feed heavy traffic in and} out, is to go modern. Twonty-two stop-and-go lights ness world has ever experienced, has justified ‘itself, at least, as' an emergency measure.” BILLS PENDING IN VARIOUS STATES CHICAGO, March 17.—Gen- eral sales tax bills are now pend- ing in twenty-seven states. In- diana has just adopted a sales tax with a rate varying from one- quarter of one per cent to one per cent. A sales tax bill, carry- ing a rate of 3 per cent on all sales, has passed the Illinois sen- fate. The two states with a gen- eral sales tax bill in operation are Mississippi and Pennsylvania, }zona, California, Colorado, Con- The states considering general) sales tax bills are Alabama, Ari-| house February 20, while he was in jail at Grants Pass. Police said he admitted firing the shot that pierced Prescott’s heart. His wife and E. A. Fleming, who police said were with the edi- tor, were also charged with mur- der. The shooting climaxed an ex- tended political strife in Jackson county. ‘IVY RETURNS TO PORT LAST NIGHT The lighthouse tender Ivy re-, turned last night from the west coast where the ship went to re- The Kep West Citen — For KEY WEST, FLORIDA,- FRIDAY, MARCH 17, 1933. A ids Recovery Shown above are some of those who rushed their gold to the Federal Reserve banks after the government had warned those hold- ing it. The sketch suggests why Uncle Sam wants the gold taken out of hoarding. gold piece to the bank, it may be Federal Reserve notes are 40 percent gold and 60 percent bonds or business men’s notes. If a hoarder put with the bonds ard no! $25 in currency issued, thus aiding business. less need there would be for the new money. Gold in itself cannot now be used for hand-to-hand money. For that matter, up to the bank holi- day, the United States was the only major nation which freely coined gold for the public, I France, Belgium, Holland an 7 the remaining fre! gold standard nations, gold’is kept only in bars worth about $8,000 each. i No one knows how much gold Sey Written In “ Key West By England Will Appear In May George Allan England has just received word that “Short Stories Magazine” has accepted, for pub- lication in its second May issue, one of his novelettes to be entitled “Diamond, Diamond!” This novel- ette was written in Key West, the past winter, the scene being located here and along the keys. “TI hope that by laying more stories in the Key West setting,” says Mr. England, “I can _ help familiarize a larger public with | the beauties and advantages of this section. To my mind, no background is more suitable for fiction than the Florida reef and keys. If more writers would give attention to this terrestrial para- dise, the world at large would have a more appreciative idea of south Florida in general and Key West in particular, and wise- cracks would become such as the one recently emitted impossible} jthere is in the world, Authorities estimate that since 1492 some $22,000,000,000 has been brought to some form of use. There is to- day something more than $12,- 000,000,000 held by government and central banks. Billions more are in the form of gold ornaments, billions: ate*in” huge~ hoards in the fat East. About —_1,100,000,00¢ troy ounces of gold have been mined since 1492. AKRONPASSES OVER KEY WEST DURING NIGHT HUGE DIRIGIBLE VIEWED BY MANY; ROARING MOTORS GAVE WARNING OF BIG AIRSHIP’S APPROACH The twinkling lights of the giant air liner Akron, of the Unit- ed States navy, was the sight that greeted hundreds of Key _Westers who were fortunate to. see this queen of the air as she soared over the city about 10:50 g’clock last. night. Returning from Panama where the dirigible went for a brief visit the vessel was sighted when about 25 miles from Key West by the | watchman at the naval station. by the sapient ‘Miami Herald,’ to}” Shortly afterwards the lights on the effect that the new highway {the radio towers were turned on 58 Years Devoted to the Best Interests of Key West PRICE FIVE CENTS EY Break In Diplomatic Relations Between England And RussiaNow _ Anticipated At Most Réosevelt’s Employment. Plan Next Measure To Be Considered By Congress [J. FRED DION a IN D permanent banking bill and rail- Ree a ereene LATE WILLIAM CATES IN FIRM FORMERLY KNOWN AS K. W. INVESTMENT CO. (iy Associated Press) ‘WASHINGTON, March 17.— Having set congress to work on legislation to lift farmers income, President Roosevelt planned to-|, day to dispatch his employment plan next and then perhaps road plans. He conferred with Senators Byrnes and Bulkley on the de-j sirability of having congress go right on through without recess until ‘the entire special session program is enacted, possibly early in May. 3 ig !the real estate corporation for- The outlook is for the employ-jmerly known as the Key West In- ment plan to.be sent to the capi-jvestment company. He succeeds tol Monday. the late William Cates., Chairman Steagall of the house| y,,7H, companies represented | by banking committee, said he ex- in Southern Florida, being the pected the amendment to the! Southern Key Land Company, emergency banking measure ex-' Key West Properties,* incorporat- J, Fred Dion, city tax collector and assessor, has been appointed as the Key, West representative of JURY WILL GET CASE SOME TIME TOMORROW; COURT TAKES RECESS UNTIL TO- the: house] Jy appointing»Mr. Dion, Mil his selection from among a list of IN LEWIN CASE shortly after 10 o'clock last night. years Ke has been in the real es- collector-assessor for .the city of MORROW MORNING regular meeting tonight and for- tending its benefits to state banks|}eq, and the End City Holding that are not members of the Fed-! Company. béfore adjournment this aftér-| Schwartz, representative of the noon, New York office, who has been in ———————— Key West for the past week, made LAST EVIDENCE about 15 names that had been sub- ‘mitted for his consideration. Mr. Schwartz made the appointment ! The appointee should be ably IS CONCLUDED qualified to handle the multifar- ious affairs of the business, For tate business and since the resig- nation of Tax Collector Arthur Sheppard has held the position of Key West. Mr. Dion will personally appear before the city council at their mally ténder his resignation as collector-assessor. At long last, the last of the evi- dence in the case of the state against Roy Lewin has been tak- en and the case will go to the jury some time tomorrow. This case has been long drawn out, beginning Tuesday morning 10 o’clock and shortly after 12 e’clock today the last witness left the stand. Arguments on _ technicalities and points of law have taken up much of the time and the lengthy; RECEIVER IS HEARD DEAL- inati f wit di-} examination 0! itnesses on is ING wiTH INSTITU’ rect evidence, cross examination and rebuttal has taken up the ea WHICH CLOSED DOWN IN DECEMBER, 1930 er. The representative of Orange State Oil company the accused have been subjected the and An Any Moment and remained lighted until the ship had passed over the city on her voyage north. The communication station at the naval station has been in- con- stant communication with the | Akron during the voyage. | ALASKA PORT MAY BE FISHING FLEET BASE (By Associated Press) KETCHIKAN, Alaska, March 17.—Enactment by the state of Washington of an income tax law may result in the eventual trans- fer of the Alaskan fishing flect’s would eventually connect Key} West with America!” Mr. England’s enthusiasm for; Key West remains undiminished by the current depression. “Nothing can beat Key West’s million-dollar climate,” he as- serts, “Million-dollar climate? Make it a billion, and then some!” APPORTIONMENT OF SCHOOL FUNDS THREE port, TWELVE THOUSAND TO Ketchikan interests are organ- to grilling examinations and have (My Associated Pree) 'FOUND YESTERDAY HUNDRED AN Dwinter base from Seattle to this| found yesterday afternoon in one been called back to the stand sev-. MIAMI, March 17.—Testimony eral times. : that the City National Bank in __When the last witness had tes-| Miami was insolvent by nearly tified this noon time, Judge Har-| $2.990,000 when it closed in De- ris announced a recess until 19/cember, 1930, was given today by o'clock tomorrow morning when! i. J. Spurway, receiver, in de- the attorneys will address the} position testimony before the fed- jury. eral court examiner. ALIEN STOWAWAYS . evidence in a suit filed in New York against J. C. Penney, chair- tan of the bank's board of di- Tectora, seeking to hold him per- sonally responsible for the bank's deposits, MANY RACE HORSES Two alien stowaways were of the race horse cars arxehigy from Havana. They were taken! The testimony was taken for| Arrest Of British Sub- jects At Moscow Cause; Ambassador Likely To Be Recalled Associated Press) Lo DON, March 17.— A break in diplomatic re- lations between Great Britain and Soviet Rus- sia was anticipated today in both business and polit-. ical circles. This is the second crisis in the affairs of the two countries within five months. This time it was the ar- rest of six British sub- jects employed in Moscow, which is considered likely to cause a recall ‘of the British ambassador. goods is also viewed as.a possibility to take effect when the present trade agreement with the two countries expires April 16. In the meantime hope of world disarmament and relief from the threaten- ing tension on frontiers of European countries turned toward Rome as final preparations. were made for a British-Italian CAMP FEEDING LARGE NUMBER OVER FOUR THOUSAND TAK- EN CARE OF AT ONE CENT PER MEAL (DY Ansociated Press) OKLAHOMA CITY, March 17. A state relief amp, operated here under direction of Gov. W. H. Murray, is feeding *pproxi- mately 4,400 persons daily at an average cost to the state of one cent per meal. Gifts of food by restaurants and hotels aid in keeping down the cost. i Flour and meat are paid for by voluntary contributions. Mest is purchased for 4 cents a pound, and bread in baked at a cost of 1 cent « loaf. In return residents of the camp do what work im rt quired by Capt. &, D. Kritlow, in charge. are being erected to regulate a izing vocational and recreational] 8 custody by Willard Russell, of | traffic which is estimated at 7,- winter-time pursuits to encourage, the xz S. Immigration Border) the move. Patrol ! atti ishing| . The men will be examined by; (By Associated Press) _ By outfitting here the fishing) . ead TALLAHASSEE, March 17—| industry would eeeape the pay-/the local immigration euthorities| ie t of the income tax. The change is due by April 7, | South Carolina, Tennessee, Texas,| Ferry Parrott came in at 5:10] The state department of public) SON'S | : Vermont, Washington, Wisconsin! from Cuba with seven cars of) instruction today announced ap- RETURNED TO JAIL | REFUSES DIVORCE PLEA {the racing meet in Havana. DANCE TONIGHT Mo.— When Jasper| | Im the train “were five express; and Wyoming. jhorses, one car of mail, six mis-| portionment of $312,026 among! 2 jcellancous cars and 37 passen-| the public school systems of var-) LEBANON, H Under naa - tek Crew. of OLD FIRE FIGHTER j gers. | ious counties to aid in financing) Berry emerged after digging his! 5 pcg Bly Peal Sra wrrasongiee joo two box CUBAN CLUB EUGENE, Ore.—Thirty years gloves’ thie aacahee tren Camas a ow oy pede > sate oer. pn fam husband tpent all his money) There are only = IGENE, Ore.— } | grades ' ; i ; Admission 40 From 9 Till ? i) member of the fire departnient of | City with a cargo of sea food) *24 clementary - sheriff, the prosecuting attorney| going to dances with other Wor; anit te come white Music By HOWARD WILSON | this city is the record of Chief W.) products for shipment north viaj Checks will be mailed within 24 twe deputies, whe put bim!men but ber plex for a divorce) these are expected Refreshments Served Free |'/E. Nashbaum. Mallory Tine. lthe mext few days. back im jail. was refused, jor ee BE EXPENDED ON SPECIAL TRAIN ‘The third special train of the week left over the East Coast last necticut, Georgia, Idaho, Minois, | charge the light at Indian Key. 000 vehicles an hour. Iowa, Kansas, Maine, Massa-| The steamer Cuba sailed 12:30) The lights are to replace the|husetts, Michigan, Minnesota,| Yesterday for Havana with 34 present police system by which six| Nebraska, New Mexico, New York,| Passengers, 256 sacks of mail and “bebbies” are on constant duty.|North Dakota, Ohio, Oregon,} one automobile. [groups who have been attending See Page 4 for Reader On This Pictsre ———alse———— BLONDIE JOHNSON Matinee, 15 Night, 25 No Children Allowed