The evening world. Newspaper, April 12, 1920, Page 3

UNFAIR EXCESS PROFITS TAX COST$33,000,00070 COLLECT. OO YEARS NEEDED 10 AUDIT IT BO Per Cent. of kof Ciietitines » Of Income Tax aa ‘| Goes for This Le’ CORPORATIONS DODGE. Repeal Would Mean Elimina- tion of 9,000 Highly-Paid Government Employees. By Martin Green. (Staff Correspondent of the Evening World.) WASHINGTON, April 12.—In the House debate on the peace resolu- tion last Friday, each of the scores of oratorical statesmen taking part in .the proceedings declared his yearn- ing for peace and all agreed—whether for or against the purposes of the resolution—that the war against Ger- many is over, The Republicans, in their programme of legisla- tion given to the public a year ago, promised to repeal the ex- cess profits tax and revise the taxa- tion system. The Democrats intro- duced in Friday's proceedings what amounted to a resolution repealing all revenue measures which were passed under the stress of war, and although they knew their proposal) was futile at the time, it stands as a pledge of party principle. Therefore the Republican ma- jority in Congress and the Dem- ccratic minority in Congress are, as a matter of political window dressing, in agreement that the war is over and committed to the repeal of taxation legislation enacted because of the extraor- dinary demands of war cond tions. Unity of purpose is_in- dicated by expression of desire to serve the people, but let us observe the actual situation as it is revised by practical poli- tics. In the light of such indicated unity of purpose it will be interesting to record next June what the Republican majority and the Democratic minority will have done about the repeal of the excess profits tax. The excess profits tax is a war measure, whether we view it from the angle of those who claim it falls upon the consumer or thoge who claim it falls upon the predatory rich. Corporations know much about it, legislators know some) about it, and the average taxpayer knows nothing about it. is, in intent, an effort to instruct the taxpayer. THE HIGH COST OF COLLECTING TAXES. The excess profits tax brings into the treasury about $1,250,000,000 a} year, That sum was spent for pur- poses created by the war this year, and will be spent for the same pur-| (Continued on Fourteenth Page.) LIVES IN A COOP IN HIS BACK YARD Ohickens and Pig Kept in House, but Court Gives Peraldo Chance to Reform, Although John Peraldo was adjudged guilty to-day in the Court of Special Sessions of what was called most horri- ble neglect of the duties of husband and father, it was decided to give him an opportunity to escape a sentence of three years in the penitentiary. Peraldo, thirty-five, a Swiss, who had been in this country a dozen years, was convicted of endangering the health of Linda, six; Edith, three, and Joseph, eieven months old, his children. ‘The accusers were his wife, several neigh- bors and agents of the Society for the Prevention of Cruelty to Children. In 4 tumble-down house on the Grant estate, in River Road near Inwood, he kept chickens, dogs and a pig. He did odd jobs for apartment house tenants and brought home age, out of which he made sel for the family before feeding the p' ‘There was no water in the house and ng fire. The probation officer said that Pe raldo now lives in a coop in the back yard while the family has the house, - a garb- Ons ig. Burr Takes Seat on Hench. William P. Burr, former Corporation Counsel, was to-day installed a Supreme Court Justice, taking his seat in Trias Part VI. Addresses were made by Cor- poration Gounsel John P. O'Brien, Jus- Burr's successor, who present to him; er Benno Lew ipohn, a THE LAST STRAW. ‘This article | ep a TET One Armed Columbia 1 War Herden To Be Aided by Co-Eds in Revue GRAFT AND WASTE IN CAMP BUILDING PUT AT $78,537,000 House Sub-Committee, by In- ference, Accuses Men Re- sponsible of Treason, (Special | From a Staff Correspondent the Evening World.) WASHINGTON April 12.—The re- port of the sub-committee on camps, one of the five sub-committees of the select committee on expenditures of the War Department which has been investigating war expenses for nine | months, was submitted to the House to-day by Chairman John C, McKen- zie. It is a sensational document, bristling with accusations of graft, waste and favoritism and bitter at- tacks of Col. W. A Starrett, of New York, who as Chairman of the Emer- | gency Construction Committee of the Courcil of National Defense, was in| |echarge of letting the contracts tor| construction of the cantonements for | the reception of the draft army, | Inferentially the majority members |of the committee, Congressmen Mc- | Kenzie and Roscoe C. McCulloch ac- |euse the men responsible for es state of affairs described by the port, of treason, and they pelle an amendment to the Constitution to make such offenses reece a aiso recommend that the Depa: jof Justice institute an iaveglgtioe | |wth a view of bringing suit for the recovery of sums illegally paid and | of penalities amounting to millions of | dotars, Congressman Frank E. Doremus, | Democratic member of the commit- | tee, submitted a minority report con- tradicting all the statement of the| majority. He said that the construc- tion of the camps under the cost plus | | system was in point of speed and ef- | ficiency one of the greatest achieve- ments of the war. | The majority report declares that | the taxpayers of the United States! |were robbed of approximately $78,- | 531,521 in the construction of the six- | |teen camps used for housing and training the draft army. | (LOOSE AUDIT PREVENTS AC- | CURATE FIGURES OF COST. “Accurate figures” says the report, “showing the actual cost of canton- | ment construction are not available and probably never will be” because, the report explains, of loose methods | of accounting and audit ‘The gist of the report is that the | extravagance and graft was due to | the adoption ‘by the War Department | {of the cost-plus system in awarding | |contracts for cantonment construc- tion, Of $22,000,000 paid in fees to contractors $11,000,000, it is charged; went into waste of material and pay for services which were not per- formed. Col. Starrett is blamed for the ac-| |tion of the War Department in aban- doning the competitive bidding sys- tem and adopting the cost plus sys- tem. It is charged that under his| direction the supervision of letting of contracts and the work of construc- tion was taken away from the En-| result that there was no effective) supervision on the part of the Gov-} ernment. The report oharges that| Col, Starrett had the cost plus system adopted in order that he might be} aided in throwing immense contracts | to favored friends, He is charged with using his influence in getting contracts for the George A, Fuller Company, in which his brother interested. Others who served the Emergency Construction Com- mittee are charged with profiting by construction work, either as actual contractors, following their severance of active relations with the commit- was tee, or as participants in profits of| contracting firms with which they P ited. ' The majority report alleges that! Col, Starrett dominated the proceed- ings leading up to the adoption by | the War Dopartment of the cost plus! construction system, which was adopted June 1, 1917. By the terms} of this system contractors were paid from 10 per cent. down to 6 per cent. | on the cost of their cantonment con- struction jobs, the percentage ishing with the size of the « The dimin- ontract limit was set at $250,000 for one job, but the committee charges that the limit was exceeded by the exer- cise of various devices which are set forth at length in the report The sub committee found it could not go into an investigation of all the sixteen cantonments and picked out two as typical, Camp at Chillicothe, Ohio, and Camp Grant at Rookford, Ill, (ncidentally it may be noted here that the most expen- sive cantonments were Camp Lee, at | Pete reburg, Va. which cost $19,000 000) Camp Mouds moar Warbington, with | 4 Sheridan | Men of Columbia University who saw service in the World War and returned disabled, are to _Bive a “Come-Back Revue of A CHORUS GROUP IN COLI Zope to Right 9 TATON-NA pr eowands ‘ant RUT Serie. Cc: BACK ARNEY- WITHER: ON TERNATIONAL 1920” at the Waldorf-Astoria and | Hotel Astor. Chorus parts in the revue will be taken by fifty co- |_eds of Columbia who are aiding — BA ©, SEER ATTEN EY XA” "Dy VUE... S WOOLFORD- MARGUERITE KOCH HOLD-UP IN BRONX; - STOREKEEPER, GIRL AND CUSTOMER TIED Goods bonded a Ley Auto on Street as Dozens Pass. Irving Maxwell, who keeps a haberdashery shop at No. 2803 Third Avenue, within a block of the busiest corner in the Bronx, was straighten-! ing up his stock about 10.30 this morning, when two poorly dressed men entered and drawing pistols commanded Maxwell to hold up his hands, One of the robbers stuffed a neck- tie into Maxwell's mouth, and with a couple of leather belts bound the storekeeper’s hands and feet. The two men then carried Maxweil into a rear room where they took $15 in cash, a gold watch and a diamond ring and stickpin. Returning to the salesroom, the robbers encountered Miss Rhea Abralowitz, sixteen years old, a niece of Maxwell, who had come’ to the store to visit her uncle. The girl was seized and bound in a similar manner. After taking $3 from her purse the robbers carried her into the rear room. While the robbers were selecting the most costly articles of Maxwell's stock, a customer entered. He, too, was seized, bound and carried into the rear room. The two robbers then jeisurely carried out about $500 worth of silk shirts, gloves, ties and other articles, which they put into a tour- ing car, ‘After the robbers had looted the store they jumped into the auto- mobile which started south on Third Avenue. which cost $18,614,000 and Camp jUpton at Yaphank, Long Island, which cost $15,000,000, The loss to taxpayers on Camp Upton, according to the report, was more than $6,000+ gineer Corps of the army, with the| 990, Camp Sherman cost $13,000,000, of h $4,000,000 was expended in Dullding, ub-contractors who work ed on the cost plus system did most if not all the work at Camp Grant and were also en- gaged in the construction of other camps. The report the cost plus ed Governn points out that under system the time-honor ent rule of reward a contractor for speed in con and penalizing him for delays was ,andoned, It js shown that on this account workmen deliberately loafed The report charges that at Camp sherman the work of heating the hospitats Was not completed until Naver r 1917, although soldiers received there in September in freeaing weather ny Duildings, the report states, ere torn down after they had been completed and built ov ain, ‘The ittee charges that more than 2 r cent. of the lumber purchased |for the cantonments was deliberately burned and 60 per cent, of the nails waste timony is quoted to show ‘that the carpenters at Camp Grant got new tools every week, Thousands of men were put on the payrolls by politicians, it is charged, and did no work. Trucks and teams, the report alleges, were used almost universally in camp construction for purposes. he sub-committee recommends a radical change in the method al awarding Government con which would place ali construc re work in charge of the Engineer C orps | of the army In the matter of inferential cho ges | of treason the committee recommends amendment to read in giving y injuring the or financial resources of States In the minority report it is pointed vut that Col, Starrett was not sub: ‘pocnaed by or vequested to appear before the comumitice. ted at this eamp and | grafting | LANDLORDS LOSE | FOR FAILURE 10 ~— GHERENT LAWS lone Removed From Court for Protesting Decisions—Police and Firemen Complain. | | were | man before in the 2d Municipal least 200 insta failed to cite the revolution in this country?" Justice Hoffman ordered moved from the court. He new laws. of Justice Davis in the Municipal Court that w are charged more than increase over he rental of la AM, Extra Speci.1 for Maple Walnut Fudge-—on, Fuag be ali het u about this ¢ Then just it UM yo stud the Fudge. You' Milk Chocolate Nutted Royal Like all mouths." ber the And these truly royal dies are further appetized by the ad- Extra Special tins SO¢ Pound Box Net Welght Honey in You remem of course Tyekinan & Ant WhiteRose Deservedly The Largest Selling Ceylon Packed Tea | in the More than 600 tenants and landlords Justice Benjamin Hoft- District Court to-day, who found that in at es the landlords ‘had | new rent laws, and {threw their complaints out of court. | Approximately 100 cases were ad- Choked and Tried to j journed for future hearing and the Tie Her Up. | remainder probably will be settled | John Williams, his wife, Grace and ohn ams, e, ni later to-day, | nts brother, Frank, were taken to the Davis Rosenkrantz, landlord ot Yorkville court this morning for | Nos, 114-116 First Street, when the| raignme twenty complaints he had filed] attempted robbery on the complaint of against the same number of tenants| Mrs. Nettle Horowitz, No, 261 East 50th| were thrown out of court as dofe: reet Caan Counsel Sullivan, and| plaint, she. hirod-Wittams:ana bie itet shouted: |as Janitors, but discharged them tast! “Dhis ain't right. Do you want a him re-| will have, * to draw up new petitions citing the In order to try out the recent ruling anhattan Year 51st Stree ILLER “Better Chocolates ata Lower Price” CANDIES day and To-morrow 1 then MILL : i STORES | in putting on the entertainments by the disabled veterans, The heroes taking part in the revue have lost arms, legs and eyes in __the fight for democracy. they are, under the new laws, entitled | to a counter claim against their land- | lords and a reduction of rental, Jus- | tice Robitzek in the Bronx Municipal | Court continued until Thursday the | case of five tenants of No. 2327 Wal- | ton Avenue, the Bronx. Justice Robitzek after listening to the plea of the tenants, among whom | were a number of firemen and police. | men, questioned the correctness of | their stand, which was based upon | the decision of Justice Davis. The owner of the property is the Klear- fleld Realty Company The tenants claim that their rent vas illegally raised from $82 in April, , to $50 in March, 19 More than 300 landlord-tenant cases | came up before Justice Robitzex to- | day. He settled 9 per cent. of them | jon the basis of 25 per cent. increase, the remaining going over for further | hearing, stot Fags JANITOR ATTACKED HER, WOMAN SAYS ‘Owner of House Charges He t on charges of assault and | night. This morning, she says, the three came to her apartment, where the two! men are alleged to have choked her and{ d to tie her up with sheets, she ‘amed for help, and the three fled. | Horowitz's cries were heard by! J. Walsh of Hook and Ladder No. 2,| who caught the trio and turned them over to Detective Hughes of th att St station 4 Hawt | Walsh igured last week in a sesa- tlonal rescue at a fire at No. 60 West! ac Mrs. ! You just bet we can Did you taste it? at these Walnuts that 29c Pound Box jet Weight Bitter Sweet After ts—Just the 1 to make your meal a success. Mints that icately combine the most spicy com- Extra Special bination of 49c we nd Box Weight tness undatouch 5, of bitters. World tions can be based. 1S. WL INVOKE WAR TIME LAW IN +RAILROAD STRIKE, Lever Act Still in Force on Ac- count of Delay on Peace Resolution. PALMER TAKES ACTION. Returns to Washington and Examines Evidence of Con- spiracy on Part of Workers, * By David Lawren:e. (Special bea yr traehf of The Eve- ning World.) WASHINGTON, April 12 (Copy- right, 1920).—Open rebellion on the railroads of the country has given the Government a problem even more complicated than the coal strike. It ‘was not a sudden revolt. Trouble has been brewing for many weeks and the Department of Justice has been watching certain radical leadera who have been fomenting mutiny. As & matter of fact, the Department expected a break in another industry to occur before the railroad men struck, It.was a day of “I told you so" at the department of Justice, where the railroad strike was attributed entire- |ly to the conspiracy of “radicals” and “Bolshevists” who have begun a pro- leess of “boring from within” in an effort to overthrow the more sensible and consorvative leaders of organized labor, “We have been warning the coun- try against the activity of radicals,” said one official of the department, “but we have been accused of ‘seeing things’ and exaggerating.” Officials pointed out that while the number of men out on strike was not considerable it was possile for any smal! number to tie up the transpor- j tation system of the country espect- ally when adopting guerrilla warfare tactics of suspending work without notice, PALMER SIFTS EVIDENCE OF A CONSPIRACY. Attorney General Palmer got back to Washington from Georgia and be- gap examining the reports of con- fidential agents to see what evidence Ve Tt tt ts found t a conspiracy exists, indictments will be asked against the leaders who participated, but it is also quite pos- sible that the Government may pro- ceed against individual strikers on the ground that they have interrupt- ed the transportation of the Nation’ food supply. The Lever Act still holds good and it is @ lucky thing that the peace resolution framed by the House has not yét passed the Senate or been put on the statute books, for the De- partment of Justice will try to make use of some war-time laws in han- dling the present situation on the railroads, Inquiry at all the Government de- Partments where information might possibly be collected concerning the strike develops the fact that the out, break on the railroads was premedi- tated and that the dismissal of a con- ductor on a Western railroad was simply a pretext. Inside the railroad brotherhoods, & persistent effort has been made to dislod, William G. Lee, veteran leader of the railroad men, and the failure of the latter to secu in- creases in wages in his negotiations with the Railroad Administration and railroad employers has given the in- surgents food for revolt. NO DOUBT OF SINCERITY OF LABOR CHIEFS. ‘This situation is hardly parallel to the coal strike, though in many of its aspects there are points of sim- ilarity, The Government then pro- ceeded by injunction against a group of leaders who presented radical de- mands, but had the rank and file in their control. There was some doubt of the sincerity of the union leaders when their men refused to go back to work in spite of formal notice that the strike had ceased. There is no doubt to-day of the sincerity of the appeals of the brotherhood chiefs who are successfully urging the majority Millions,—men, women and children— depend upon Munsingwear to give them the utmost in underwear sai Munsingwear satisfies’ every underwear tfect in workmanship, ‘abric, its lasting Talitice requirement: fit, finish and continue to surprise you. There's a correct size and style for every- one—tall, stout, short or thin, —the satisfaction lasts had been collected on which prosecu- tay") No) lejatls Tay "Feaj ey Tae ah; ri Ney ie: ie fe} eT ey Franklin Simon a Co. Fifth Avenue, 37th and 38th Streets pe} ih be! rie WOMEN’S ot thetr suon to atay Toray at i In formulating « policy the G ment, therefore, finds it nec be careful not to oot measures that will off the 1] union men. Any effort to ; individuals will be ge many dangers. The would prefer to do eiplini and it is drastic conferences will be wi v4 loyal leaders of the railway mon an effort to do the thing “3 produce results without contented railroad men an ‘ad grievance. It is significant that bog House jet it be known that on aes Toa ‘not been by personally before ille "the Department ot Yustiee. | could not say definitely that any ae- tion would be taken within the pest twenty-four hours. TRYING TO UPHOLD HAN! or BROTHERHOOD LEADER: Governmeht officials are cautiously and are endeavoril hold up the hands of the hee tee leaders who have the majority of the men at work not- withstanding the tempting appeals of radicals. The latter have dangled « Programme of higher wages and piher alluring demande ae the certain reward of a strike at this psychologi- cal moment when the railroads are being recovered by thete owners amd * there is an evitable confusion jn un- scrambling the tangles of Govern- ment control. Unqueatignably the effect of the present disturbances wil be @ further investigation of the true situation among the railroad workers of the country and the immediate establish- ment of the Railroad Labor provided by recent legislation. . Prosident Wilson is expected mo- mentarily to announce the personnel of the Board. This will afford a tri- bunal before whieh the whole case can. be tried. ————_—— 250 Ivery Sharpshooters In Court. Two bptres and fifty crap shooters ppeared auiatrate | Sh tRe tridae Plata Court today. the, fuspended sentences, syite her 125 were fined from $1 The teen, Rog evening tn the wasters oon Petenday district and Greenpoint sections. action. Healy, rey they! bearer lei! NAVY BLUE TRICOTINE or POIRET TWILL SUITS 55.00, This is the first time it has been pos- sible to produce these suits to sell for less than 75.00 to 98,50. They are the last word in style and have just been received from our tailors. HE number of suits is limited — the styles are not, as there are thirty models in this collection. The smartest fashion details of the moment are expressed in suits with coats belted or unbelted, braided or em- broidered. Their workmanship be described by eerind that custom tailored for can best ey were ranklin Simon & Co. WOMEN'S SUIT SHOP—Balcony Floor