New-York tribune. [volume], August 11, 1921, Image 1

About New-York tribune. [volume] (New York [N.Y.]) 1866-1924

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ALL MERCHANDISE .
ADVERTISED IN THE
TRIBUNE IS GUARANTEED
Vol. LXXXI No. 27,297
First to Last ? the Truth: News ?Editorials ? Advertisements
THE WEATHER
Partly cloudy to-day; unsettled and
cooler to-morrow ; moderate
to fresh south winds
Full Report on Last Page
(Copyright. 1081,
New York Tribune inc.)
THURSDAY, AUGUST 11, 1921
* * * #
TWO CENTS
In Greater New York
THREE CENTS
Within 200 Miles
FOI R CENT?
FJaewher?
Further Cuts
In Tax Levies
Agreed Upon
House Committee Votes to
Repeal Transportation ?
Tolls; Family Heads toij
Get Double Exemption
555 Mi??k^ Will
Be Saved Yearly
45 Million Revenue Is;
Expected From Change \
i? investment Tariff
WASHINGTON, Aug. 10.?Even more
extensive changes in tax levies than
were agreed upon at the White House
conference between President narding
and Republican leaders of the House
of Representatives were voted tenta
tively to-day by the majority members
n?" the Ways and Means Committee.
The reductions, amounting to $355,
000,000. were made possible by a de?
cision to repeal the excess profits tax.
remove the tux on transportation, and
double the exemption allowed under
the normal income tax for dependent
persons.
These cuts, worked out in an all-day
session, took the committee a long way
toward fulfilling its promise to report
the tax hiil to the House next Monday.
Additional ?mailer reductions may yet
be agreed on. and passage of the meas
ure by the House is now expected be
fore August 20. If it goes through by
that time, and the far.n export bill also
i passed by the House by that date,
Congress will take a thirty-day recess.
Recess Plans DIscubsed
- lators Lodge and Curtis discussed
rec, ,? plans with President Harding
to-day at the White House. They
found the President insistent that the
House pass the tax and export bills
before recess, in addition to the grain
futures conference report, the emer
, ncy tariff resolution and the anti
bill conference report. The rail
it is understood, will go over until
a m cc=j.
reductions agreed to by the com
: . as summarized in a formal
? ment, included:
Repeal of the excess profits tax,
?. ctive January 1, 1921.
An increase of the income tax on
Mitions from 10 per cent to 15
per cent with the SJ.000 exemption
retairted, effectue January 1, 1921.
Repeal of all taxes on the trans
portation of freight and passengers
eats and berths, effective
January 1, 1922.
An increase in the exemptions to
- of families on account of de?
pendents to S400 for each dependent,,
.,! of $200 as at present, effec?
tive January 1, 1921.
K-peai of the so-called luxury
on clothing apparel, effective
January 1, 1922.
Exemption from income tax of tho
$500 of income from stock held
in building and loan associations.
Revisions of existing taxes included:
Repeal of the tax on fountain
and ice cream and the sub
stitution of a flat tax of 10 cents a
gallon on all fountain syrups, to bo
paid direct by the manufacturer or
maker.
Repeal of Stamp Taxes
Repeal of the stamp taxes on per
rxtracts, tooth paste and
toilet preparations and propri
etary medicines and the substitution
of a manufacturers' tax of 5 per
cent on the sale price.
Removal of the 15 per cent manu
facturers' tax on cereal beverage and
the levying of a manufacturers' tax
of 15 cents per gallon.
titution of a manufacturers'
tax of 2 cents a gallon for the present
10 per c nt ?>n the sale price of un
fermented juice beverages and car?
bonated waters or beverages or other
-oft dril old in containers.
The leyying of a manufacturers'
tax of '?, cents a gallon on certain
classes of grapejuice and 2 cents a
?a?;on on other classes, in lieu of
-. tax of 10 per cent on
the tale ??rice.
It also vas agreed to levy five cents
?t pound on carbonic acid gas, sold to
Manufacturers of carbonated waters.
Members of the committee estimated
. tha:, these changes would re
??lt in a net reduction of $555,000,000
'n the total v?ar!y tax bill. This is
000 below the estimate reached
?t the White House conference, but it
; that the estimated rev
rations would be $45,
.: ter than heretofore; reck
rcason of the repeal of the
emption of $:;.000 plus
mm '. e,jua! to the 8 per cent of
foi tin ta cable jcar.
>?w Changes Made
ew proposals were put
tarottgh to-day and other changes made
I lite different from those agreed
' >??: the White House conference,
- *r!v the repeal of all of the
ortation taxes next year instead
them. The question of
? th< burden of men having
as brought up bv Rep
!'.^charach, of New Jersey,
id that both sinsrle and
whoi e net income v.ac
i.000 ;.e granted an additional
;.r, or else the
lowered from
" '?t.
ejI was voted down, but
' ?? ??'%-, ruwu uuniit
' : "'?;.<?:?. was reached to
? exemption of heads of
500. Th i action was re
. however, and the e:-.
dependent? was doubled.
? ? ? .- the other change?
I tood to have argued thut
relitv?. those more U1 need
than would the other pro
e Chrn.r, Texa?, the
? or, the Waj i .-i- 'f
? '"! .-> ?tatemen!
' ? - ' ??
? - agreed ,. at th<
:? i /!?'
' Republican?
"?pea! hi., the rieh man'?
****, <?'?. ??i-!, "i favo?/repeal of a?
" M'.C'llmieou? ->;*r Uxee, but
2?WS would continue the cxccmb
' r-*z for thin calendar year and
/^'?iibiy t<lT B#zt fWt Ui uj,a e?tt fif
* wer aftermath emergeneiei which
??:"''? * wrauntnt chtrg? ?e?ln?t the
*???rRm?ftt."
Six Bedraggled Americans,
Freed by Reds, Reach Reval
Prisoners, Whose Liberty Is To Be Paid for With
Food for Starving Russians, Dine and Clothe
Themselves in Esthonia's Capital
REVAL, Aug-. ip (By Tlic Associated !
Press).?The six Americans released
from Moseo-v ? prisons at the demand
of the American Relief Administration
ai rived here this morning. They
[Hissed the day shopping and outfitting
themselves after shedding their prison
clothes and undergoing the cleansing
tue?, ssary to comply with health reg?
ulations.
The men who have received their
freedom are Captain Emmet Kilpat
rick, of Uniontown, Ala.; William
Flick, 11. J. La Marc and Dr. W. B.
Estes, of New York; X. B. Kalmatiano,
of Racine, Wis., and Russell Pat
tinger, of San Francisco. All voted
to remain in Reval for several days
before going to R?k?, and sent cable?
grams to relatives in the United States
asking for replies in care of the Red
Cross at Reval.
The Americans presented a differ
ent appearance after they had been
relieved of their shaggy beards, fur
caps and bedraggled Russian uni?
forms. They were all greatly reduced
in flesh and ravenously hungry and
were unable to pass a food shop with?
out stopping in apparent ainazAiem.
The Bolsheviki sent the Americans
by special car from Moscow to Narva,
where the barbed wire gates dividing the
Soviet Republic from Esthonia swung
open and permitted the car to be
transferred to Esthonian territory.
When the disheveled and ragged
American:-; looked from the car win?
dows and s:;w tho half-starved Bol?
sheviki guarding the cast side of the
line, while well-fed and well-uni?
formed Esthonians controlled the west
side, they chaffed the Bolsheviki, tell?
ing them that that is what communism
docs for people.
By courtesy of the Esthonian gov?
ernment the Americans were not
(Continuftf on pase thre?>
Administration
Insists Embargo
OiiDyesRemain
Senators Warned America
Must Not Be Only Nation
Unprotected When Con?
ference Opens Sessions
Harding Applies Pressure
Tariff Called Futile as Bar
Against German Supplies
Waiting to Flood Country
By Carter Field
WASHINGTON, Aug. 10.?The Har?
ding Administration in the next few
flays will line up squarely for the
continuance of the dye embargo. The
Administration is alarmed at the pros?
pect of Congress removing the embargo
on the evo of the armament limitation
conference, thus making the United
States the only nation at the meeting
which has not made ironclad arrange?
ments to protect its potential gas and
explosive factories from German com?
petition.
The Tribune correspondent is in?
formed, on unimpeachable authority,
that President Harding will take a
hand in behalf of the embargo, which
has been losing in the battle on Cap?
itol Hill. In fact, it is generally ad?
mitted and has been flatly stated by
many observers that the embargo is
dead. To-day's news, however, that
?President Harding will act to pre?
serve the ban changes the picture, anc
?the prospects to-night are again ver>
bright for the continuance of thi
barrier.
Weeks and Denby Help Harding
Secretary of War Weeks and Serre
tary of the Navy Denby last werk cam?
I out in favor of the embargo in letter
to Senator Penrose, chairman of th?
Finance Committee, which is consider
ing the proposal as one of the provi
sions of the tariff bill, and which ha
been holding hearings for more than ;
week on the subject.
These letters, however, did not ac
complish what was desired, in tha
there has been little evidence of ;
change of sentiment either in th
Finance Committee or in the Senate
Following up tho appeal Secretar
Weeks to-day wrote strong letters in
dorsing the plan to Senator Wadswortr
as chairman of the Senate Militar,
Committee, and Chairman Julius Kali
of the House Military Committee,
This is one of the moves of th
eleventh-hour drive of the Administra
tion to make hure that there will b
American dye plants to make gas an
explosives for the army and navy i
the event of war. It is an eleventh
hour move because the House of Her
resentatives has already voted on th
proposition and turned it down col<
while it was to be strangled to deat
in the Senate. Even to-day, before the
learned of the President's intention
Senators who usuaUy are accurate i
their estimates of the strength of mea:
ures declared that the dye embargo di
not have a chance.
So the task confronting the Preside!
is not only to win enough Senators no
opposed to the embargo for one re?
sou or another to make a majority i
the upper house, but he must brin
enough light or pressure according t
! V/hether the person using the word
forward looking or practical to b?i
on the House to Induce that body 1
! change its attitude.
The Administration, however, fee
, strongly on the situation, and mar
i important advisers of the Presidei
| are convinced that the embargo is tl
i only plan by which the American dj
j industry can be preserve?!.
Huge Stock? Ready in ttermany
A Cabinet member told The Tribu?
' correspondent today that the Adrni
I i-;tration had information to the e
; feet that the German dye interests hi
? supplies piled up in their ports rea?
t?, ..hip to America the moment ti
embargo expires, which would simp
; swamp the market in the United Stat
j and make it impossible for any Ame)
ran dye manufacturer to do businc*
'The embargo expin i by law on A
gust 27, unlca ; it is extended by a
of Congress. The British, French ai
Italian governments have protect
their own dye inter**:'- by embargo?
[ ?nd the Japanese by what amounts
the lame thing.
The Administration doe.j not belie
| the tarif? duties, no matter how hi<
' will meet the problem, for it is thoug
that the German dye interests, back
'? by their government, will be willing
', take any reasonable amount of los:'
j for a time in order to put the Arne
\ can manufacturers out of business a
I obtain a monopoly in this field.
The British, French, Italian and Jj
ar?"ne governments have ucen thi?,
was pointed out, and have placed p
bibitiv? walla around their own d
?nterei I , nol pi ?mai lly to protect
,,,. , try ii. "" ordinary ? n e, but
account of the fact that dye factor
nr<- the experimental laboratories
; which many explosives and gases ?
i mad?", and are capable of being Imti
i r!ia;.'-iy convertible, In the ??vent
I war, into factories ff>r munition i
poisonous ganen.
WI)?" jo? think of wiltlnr,
I Think ? ' WWWVti, A
H. P. Davison
To Be Operated
Upon To-day
Surgeons Will Treat Ear?
Affection Which Has;
Caused Financier Trouble |
for Several Months
-
Suffers From Headaches
Decision Reached After
Consultation Among
Four Prominent Doctors i
-,?
Henry P. Davison, member of J. P. ;
Morgan &. Co., who is to undergo an \
operation for an affection of his right \
ear, was removed from his homo at !
Glen Cove, L. I., yesterday, to Roosevelt
Hospital, where the operation will be ?
performed to-day.
The decision to operate at once fol- ?
lowed a consultation of physicians at '
Glen Cove. One of the consultants was j
Dr. Franklin Llewellyn Barker, prqfes- '
sor of clinical medicine at Johns Hop- ?
kins University, Baltimore, according !
to information obtained last night.
A :'tatcmeilt as to the 'condition of I
Mr. Davison was issued yesterday by j
Thomas W. Lam ont at the Morgan of- j
lices, Broad and Wall streets. Mr. La- j
mont said:
"Members of Mr. Davison's family ?
have asked us to explain that owing |
to affection of one of his ears, the hear- j
ing of which has been for some time !
impaired, an operation having to do:
with conditions affecting the auditory i
nerve will be performed. Mr. Davison's,
general health is good."
Mr. Lamont said Mr. Davison had
been suffering with his ear for sev?
eral months. It had not been consid?
ered of a serious nature, but because
of the inconvenience it caused him and
because the operation involved was
said to he of a comparatively simple
nature it had been decided to submit
to immediate surgical treatment.
Mr. Davison's medical advisers have
included Ur. Frederick Tilney, of 22
West Sixty-third Street, and Dr. Har?
vey Cushing, of Boston. Both have
been in constant attendance on the
financier at his Peacock Point home in
Glen Cove, L. I. Dr. Medwin Leale, of
20 West Fiftieth Street, whose sum?
mer home is near that of the Davi
Bons, has also been among the attend- \
ing physicians.
It was said 'at the Davison town
house, 690 Park Avenue,, last night that
the principal annoyance suffered b>
Mr. Davison has been due to headaches,
said to have been caused by inflamma?
tion of the auditory nerve. .As a re?
sult, of this condition, the financier
suffered loss of sleep for many months.
It was thought that removal of a slight
growth which it was feared might
cause further inflammation should re?
sult in permanent improvement.
Dr. Leale last night refused to dis?
cuss the nature of the operation to be
performed, but later issued this state?
ment:
"Mr. Davison's condition is satisfac?
tory. He is resting well now and is as
well as could be expected under the
circumstances.''
_ - . - ? ' ?
Crazed Plane Observer
Fights Pilot in Midair
Attacks British Officer When
Driven Mad by Failure of
Oxygen Apparatus
From The Tribune's European Bureau
Copyright, 1921, New York Tribune Inc.
LONDON', Aug. 10.?An airplane ob?
server went temporarily insane through
failure of the oxygen apparatus at a
high altitude to-day and battled with
his pilot as the latter struggled to
! bring his plane to earth. The pilot,
i Lieutenant Pau! W. S. Bulman, man
' aged to make a safe Landing at Alder
; snot, where he was trying to set an
! altitude record.
After the. plane ha?l mounted high
the oxygen tank was turned on, but a
fla.',',- developed and the observer
tainted. Lieutenant Hulm?n then !>?
gan to descend. As the machine, glided
toward earth Bulman suddenly received
?a terrific blow on tho head from be?
hind, dealt by his companion, who had
I revived bun evidently was deranged.
)?.'.?' n after landing the observer con?
tinued his attacks on the pilot until he
was : ubdued by mechanics.
While
You're Away
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Tribune every morning by ;.sk
in?? your newsdealer to ? .'ke
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fer telephone Beekman 3000.
NtmQmk ?ribmu
U. S. Supplies
ToBeHurried
Into Russia
Freeing of Six and Guar?
anty All Americans Can
Leave Soviet Territory
Cause Hoover to Act
Harding Approves
Course Adopted
Harvey Will Tell Allies
of Plans Made to Send
Food to Starving Hordes
WASHINGTON, Aug. 10. Events
moved swiftly to-day in the plans of
the American Relief Administration to
succor Russia's .starving millions and
obtain the release of nil Americans
held in Russia against their will. The
chief developments were:
Herbert Hoover, chairman of the
American Relief Administration, after
a conference with President Har?
ding, announced that the actual dis?
pensing of n-lief would proceed im?
mediately.
America and Russia came into
their closest contact since the Red
revolution with the opening confer?
ence in Riga between Walter Lyman
Brown, European director of Amer?
ican relief, and Maxim Litvinoff, the
Soviet envoy.
Mr. Brown insisted that all Amer?
icana now in Russia, whether in or
out of prison, be permitted to leave
as a condition to the continuing of
negotiations. Litvinoff pledged that
this would be dour.
Six Americans liberated from Rus?
sian prisons', most of them half
starved and in rags-, reached Reval,
Esthonia, making the total of Ameri?
cans thus far liberated seven.
Ambassador Harvey, representing
tiie United States in the Allied Su?
preme Council meeting in Paris,
agree to present to the Council full
dt tails of the American relief plans
to aid the Council in determining
its course in relation, to famine re
lief,
May Use German Roads
Secretary Hoover expressed the opin?
ion to-day. after he had received news
of the arrival at the Russian border of
six more Americans and the pledge of
the Soviet to release all others, that
the Bolshevik government had dis?
played sufficient good faith to warrant
moving American supplies into Russia
Difficulty would be encountered, Ik
said, in transporting foodstuffs inte
localities in Russia where it was dir?is
needed, owing to lack of railroad anc
transportation facilities. He indicatec
that attempts will be made to pen??
trate Russia through Germany,
Another side of the Russian problem
was presented by Mr. Hoover in i
cablegram to former President Adoi
of Switzerland, in which he declare?
that famine in Russia was beyond thi
reach of charity and would recur year
ly until that country's economic systen
is changed.
Mr. Hoover's cable was in reply ti
a-i invitation sent by Mr, Ador to al
associations interested in Russian re
lief for a conference at Geneva 01
August 15. The American Relief Ad
ministration would endeavor to sen?
its representatives, he said.
"The famine in Russia,-' Mr. Hoove
said, "is of an extent entirely beyoni
the resources of all available privat,
charities of the world, especially ii
these times of economic hardship
Even were funds available for fooi
the relief of Russia involves the re
habilitation of transportation, of agri
culture and industry, nccessitatini
measures again beyond the reach o
charity."
Relief a Heavy Task
However, he continued. priva;
charity should not be remiss in savin
all the lives possible, though the fund
in this country had been subscribe
almost exclusively for children an
medical supplies.
"We have," Mr. Hoover stated, "o
the assumption of satisfactory arrange
ments with the Soviet authorities, a
ready initiated largo shipments t
save as many children as our resource
will permit. We can also secure sum
support to adults."
Secretary Hoover's plans for famin
relief in Russia have as yet been oui
lined only in very general forn
officials said to-day in commentin
upon dispatches from Paris statin
that Ambassador Harvey had agree
to present the plans to the Allie
Supreme Council. It. may be month
they added, before final details of t!
methods, to be employed arc workt
out.
Bicknell to Go lo Geneva
PARIS. Aug. m fBy The Associate
Press). - Colonel Kme M P. Bicknell, d
rector-general of civilian relief for tl
American Red Cross, und IM-. Albert 1
Hill, director of the American R<
Cross in Europe, will proceed Lo (j
neva Saturday to represent the Amer
jean Red Cross at the conference of t!
(Continual on pugs tlirw)
Germans Win
So. American
Trade of IL S.
Combine Cuts Prices 50
P.C.,Compels Exporters
lo Bring Merchandise
Back and Cease Rivalry
Stinnes Is Backing
War for Business
? _,_
Piers Are Crowded With
American Goods; Many
Branches in Liquidation
From The Tribune's Washington Bureau
WASHINGTON'. Aug. 10.?Surprising
information, now in the hands of Sec-?
retary of Commerce Hoover, shows, it j
ivas declare?! to-day, the remarkable '
success the German manufacturing ex- ;
porters' combination is meeting in re- i
building the foreign trade of their
country in South America and other j
iields by ousting American business.
The effectiveness of the German in
dustrial eanipoign to capture GO per j
cent of the world's commerce by the ;
time the war indemnity is liquidated i
is reflected in a number of recent re- '
ports sent to Secretary Hoover by
agents of the Commerce Department.
The latest of these tell of the disap?
pearance of American salesmen, liqui
dations of American branch houses and
the congestion and return to the
United States of goods piling up in ,
South American custom houses.
The slump in the trade of the United
States is reported to be particularly
keen in Argentina. The. reason is at- '
tributed directly to underselling by 1
Germans and Belgians, who have re"- i
ceived large orders, particularly for !
textiles, steel, paper and hardware, at
prices averaging 00 per cent below
the Americans' best quotations.
A report from the government's com?
mercial representative at Buenos
Ayres, dated July 27, declares "there
is little prospect of placing orders for
American goods except for necessities !
such as oil well equipment, railroad ;
supplies, textiles and office supplies. I
There are few salesmen from the
United States and many American
branch houses have gene into liquida?
tion,
"The American goods that have been j
congesting the custom house are being !
liquidated slowly or returned to the |
United States."
Underbidding in Brazil.
Underbidding by German firms is j
also reported to be having deadly ef?
fect in Brazil. During July forty-nine
ships brought cargoes to "Rio do Ja?
neiro. Of these five had general car?
goes from the United States, while
seven were from Germany.
"Conditions of extreme depression
have continued during the month of
July." declares a late report from the
commercial attach? at Rio dc Janeiro.
"German imports have been reduced,
but the trade representatives are very
active. They continue to offer prices
"iO to 7-") per cent lower than those
offered by American firms, especially on
electrical goods, iron and steel products
and chemicals.
"Although five important American
houses are closing their offices at Kio
de Janeiro on account of the depres?
sion, this policy does not seem to be
advisable."
These turns in the South American
commercial field are all said to be
traceable to Hugo Stinnes, Germany's
picturesque industrial dictator, who is
welding all the industries of his coun?
try in one huge machine designed to
capture the world's commerce. More
evidence o? the length of Stinnes's ac?
tivities is contained in another report
dealing with the acquisition by a Ger?
man company, said to be backed by
him, of an oil concession on the coast
of Argentina about, forty-live, miles ?
north of the famous Comodoro I'iva!
davia fields. German equipment a!
reaciy has been unloaded on the spot
ami preparation:-: for the exploitation
arc stated to be going forv'ard rapidly.
That Secretary Hoover':' department
is keeping its fingers on the pulse of
Germany's huge industrial attempts is j
shown in another report recently sent
him from Berlin telling of the large
expansion of German shipbuilding com?
panies during the last financial year.
Many Increase Capital
? The combined capital of these twen-1
ty-six companies is about '2"0.000,000
marks, their loans and mortgages about
61,000,000 marks and reserves about
52,000,000 marks. Many of these com
panies recently have increased their
capita! greatly -for example, the Atlas
Werke, from 7.500.000 to 25,000,000
marks; the Deutsche Werft, from
moon.000 to 30,000,000 marks", the Ho
waldswerke, from 10.000,000 to 21,000,
000 marks; the Vulkan-Werkc, from
15,000,000 to 20,0110,000 mark.-, and the
Schiffswerft, und Maschinenfabrik A.
G. (foi-merly Janssen ?S* SohmiHnski),
?'rom 8.000.000 to 11.000,000 marks. Sev?
eral of these companies recently have
issued preferred shares, with as many
as twenty voting rights in some cases,
?n order to prevent foreign control.
It has been shown that the dividends
?hiring the last financial year increased
considerably on the average, in some,
cases being from ."> to 100 per cent
higher.
King George Scrimps to Meet
Increase in (lost of Living
LONDON, Aug, 10 (By The Associ?
ated Press,.- Kin^ George has hern
bard hit by the increased cost of liv?
ing during and since tjhc war. This
statement '.?as made in the House of
Commons to-night by Austen Cham?
berlain, Lord Privy Seal, who said I
that the Ring's civil list (the sum pro
vided from public funds for "the ex- j
penses of the royal household) had
shown a progressive deficit for several ?
years.
The deficit in HMO was ?24,500 and
in 1920 '.'i;.,hod. and it probably would
be greater in If*21, despite n reduction
in the state functions und the strictest
?i onomiet ? hicli the h ? ng had initi?
ated, t
King George, Mr, Chamberlain suid,
had been meeting the shortages from ]
h fund he had accumulated for such
an emergency and hud refused to give
his assent to a suggestion that'the
government temporarily increase the
civil list, being unwilling to involve,
the public with an additional charge
i in view of the serious state of the ,
j national finances. j
Mr, Chamberlain declared that King
George also had favored a material re?
duction in the ceremonial splendor
traditionally associated with the Brit?
ish thr>r,e, but the government had
advised him that Parliament and the
greal mass of the population of the
empire would prefer to maintain the
customary dignity of the arown.
Mean time great economies had been
introduced in the royal household, and.
although costs had doubled, the royal
expenditure '.vas only 14 per cent great
er than in 1910, and the King believed
further economies were possible and
?..as appointing a committee to examine
into the question of salaries, mainte?
nance i>( pulaces and other expenses,
hoping that an appreciable reduction
would enable him to avoid ashing for
an increase in the civil list.
Mr. Chamberlain, recalling that the
King m 1916 voluntarily contributed
i'100,000 to the national treasury, said
that his majesty wished to make fur?
ther contributions, but that the gov?
ernment liad advised that he contribute
to public charities, instead of the ex?
chequer.
Hylan Admits City Tax
Levy Is 24 Millions Over
Legal Limit This Year
"Ask the Comptroller," Says Hylan
When Hard Pressed on the Stand
Here are some of the pet phrases used by the Mayor yesterday
during his examination before the legislattive committee investigating
the Hylan administration:
"You'll have to .see the Comptroller about that."
"It's not fair to ask me these questions about these figures. You
can get them from the Comptroller."
"The examination of the Mayor or anybody else in connection with
these figures can't bring about any reliable information. It's a left
handed method of getting at the facts.''
"I didn't know I was to be put through a civil service examination."
i''You and I passed the Bar examination once, Senator, but we
might not be so lucky if we tried it now."
"I am here, and I'work every day."
Murphy Drops
Talley as Slap
At ?1 Smith
Tammany Gets Even* With
Former Governor for Re?
fusal to Name Swaiin to
General Sessions Bench
Banton for Prosecutor
Julius Miller Designated
for Manhattan President:
C, F. Collins for Court
Charles F. Murphy and Thomas F.
("Big Tom") Foley, in the selection oi'
the Tammany borough and county
ticket yesterday administered a sting?
ing rebuke to former Governor Smith
by turning down Judge Alfred J. Tal?
ley. of the Court of General Sessions,
for renomination.
This incident, together with Mayor
Hylan's showing on the stand before
the Meyer investigating committee,
and the fact that Comptroller Craig
had refused to come to the assistance
of the Mayor, created an atmosphere
of apprehension at the Wigwam yes?
terday afternoon when the district
leaders gathered to learn the ticket
Murphy had arranged for them.
This ticket follows:
President of the Borough of Manhat?
tan Julius Miller, former State Sena?
tor.
District Attorney?Joab II. Banton,
now First Assistant District Attorney.
County Clerk James A. Donegan,
at present County Registrar.
Registrar ? Miss Annie Mathews,
woman leader of the loth Assembly
District.
Sheriff?Major Pcrcival E. Nagle,
leader of the 20th District.
Judges of General Sessions -Joseph
F. Mulqueen, to succeed himself; Cor?
nelius F. Collins, justice of the chil?
dren's court, and City Magistrate Fran?
cis X. Mancuso.
Judges of City Court ? Uouis A.
Valente and Edward B. La Fetra, to
succeed themselves.
"AI" Smith's Friends Indignant
J^ie furn-down of Judge Talley, ap
ited by Mr. Smith on the last day
lie was Governor, against the protests
of Murphy and Thomas F. Folcy, who
demanded the appointment of District
Attorney Swann to the General Ses?
sions bench, caused intense indignation
on the part of Smith's friends in Tam?
many Hall.
Not in years has there been such an
exhibition of eleventh-hour shuffling of
names to meet political exigencies as
took place when the district leaders
got together yesterday to hear what
?uek they had had in drawing desig?
nation prizes from Murphy's hat.
The Tammany leader side-stepped re?
sponsibility for th" heartburnings by
directing attention to the fact that the
executive, committee on Tuesday had
turned responsibility for final selec?
tions over to a special committee of
-even. When Mr. Murphy was asked
tor an explanation of the rejection of
Judge Talley he said :
"The special committee in chaiTr* of
nominations went over the entire situa?
tion anil made their r<:port. They chose
a ticket which, in their judgment, was
the strongest that could be named."
Why Talley Was Rejected
The refusal of Murphy to place Judi;*
Talley on the ticket was the sole topic
of discussion ater the announcement of
the d?sign?es on the borough and
county slates had been made by former
Representative Thomas F. Smith.
According to some of the district
leaders, who heard all that was said in
the conferences leading to the naming
of the d?sign?es, there were three main
contributing causes to the rejection o?
Judge Talley by the committee on nom?
inations, dominate?', by Murphy.
First, Murphy and Foley desired tc
give an object lesson of the danger in
curred by any one who disregards the
(Continued ?n next p?gi>)
Third Vessel Seized as
Possible Liquor Carrier
Fishing Schooner Thoniastoii
From Bahama Waters Held by
V. S. Officers at Philadelphia
PHILADELPHIA, Aug. 10.- Custom:
officials to-day seized the fishing
schooner Thomaston upon its arriva
here and placed the captain and mat<
under surveillance, They are charge?
with violation of customs regulations
In announcing the seizure the ^ff?cc
of the Collector of the Fort wouh
neither deny nor confirm a report (ha
the two-masted vessel was suspectod o
being a liquor ?muggier.
The Thoinaston, which is of Ameri
can registry, is the third auxiliar;
schooner coming up from the Bahanu
Islands to be seized within two weeks
The Pocomoke, at Atlantic City, anc
the Henry L. Marshall, at New York
are the other two.
Haskeil Blocks
Triple Alliance
Against Fusion
Offer? Instead to Abide by
Referendum of Republi?
can Jurors, if Bennett
and La Guardia Will Also
Comic, Says Ex-Senator
Each Blames Other for the
Failure of His Rivals"
Plan to Combine Force?
The conference of opponents of
Borough President Henry IT. Curran
for the Mayoralty nomination proposed
by Major F. H. La Guardia was called
off yesterday when County Judge Reu?
ben L. Haskell, who is running on a
wet platform, submitted a counter pro?
posal.
Former Senator William M. Bennett,
who had accepted the invitation o?
Major La Guardia to attend the con?
ference, on condition that Judge Has?
kell be present, was somewhat skeptical
and sarcastic last night after learning
of the Brooklyn jurist's act.
Major La Guardia on Tuesday tele?
graphed Haskell and Bennett, asking
them to confer with him at his head?
quarters in the Hotel ?etherland yes?
terday at, 1 o'clock to devise ways and
means of uniting their forces against
Curran. ?
Until yesterday, when -Judge Haskell.
in a telegram to La Guardia, rejected
the proposal and submitted his substi?
tute plan, it looked as though the three
candidates who are opposing Curran
might get together immediately and
agree upon a ticket which would have
one of their number for Mayor, an?
other for President of the Board of
Aldermen, and a third for Comptroller.
Haskell Suggests Jurors Select
Haskell's counter suggestion -.vas that
the matter be. submitted to the Re?
publican members of the July grand
juries in the live counties in the greatei
city, to let them determine who should
be the candidate for the nomination
for Mayor in opposition to Curran.
''I am still hopeful that there will
he a combination of our respective
forces," said Major La Guardia, aftej
he had received the Haskell telegram
"My only object is to see that ?.11 tho;(
in the Republican party who are op
posed to the Miller machine get to
gether before. Primary Day and get be?
hind one man."
Bennett was anything but hopeful o
such an outcome, and said so franklj
He dragged a huge bundle of paper
from his safe and remarked:
"There are my petitions for Mayor
all signed and attested."
He added:
"I would like to see a combinatioi
such as Major La Guardia proposed,
thought yesterday that the talk of sucl
a combination was serious, but now i
looks like comic opera stuff."
Haskell, in a statement after he hii
replied to La Guardia's proposal, es
pre sed t ?te belief that, a conferenc?
such as suggested by the Aldermani
president might yet take place, an?
placed the blame for the failure of th
three to get together on Bennett. 11
said; _
"Mr. Bennett saw a copy of the tele
gram ! sent to Major La Guardia an
declined to go into the conferenc
on th,? basis I proposed. The confei
ence at Major La Guardia's headquai
ters is off for the day, at least."
Judge Wires His Proposal
?Tudgc Haskell's counter propositioi
which temporarily at least, destroye
all plan.- for the triple alliance, wa
contained in the following message t
Major La liuardia:
"Your telegram received.
"Why not obtain advice from a jur
of citizens as to whether you, Bei
nett or myself should run for Mayor?
"My only interest is to secure a
efficient city administration which wi
among other things stop Hylan's supe
tyranny through the police in sea re 1
ing citizens and their homes withot
search warrants.
"If you and Bennett agree, 1 wi
accept and follow majority recon
meiiilation of Republican grand juro
Tiow serving in the several counties ?
the city, or Republican members ?
last grand jury in any instance who
no grand jury is at present serving,
they will act unofficially as a jury i
citizens to determine this question.
"No speeches or long drawn out pr
ceedings should occur. The ballots
jurors voting should be cast with
twenty-four hours after we submit tl
matter.
"My preference would be for
majority of the Republican Coun
Committee men and women of th
city to determine the question if tin
; allows."
It was learned last night that ca?
paign managers of Haskell had visit
; Bennett and La Guardia with a vie
to convincing them of the excellen
of the Haskell plan. It did not look
dispussionato observers as though t
Haskell emissaries had been succe.c
ful. Politicians of all shades of bel i
are wondering what the next mo
will be.
Expenditures of Present
Administration Threat*
en Financial Disaster,
Says Brown at Inquiry
! Walker Attempts
To Help the Mayor
i Committee Counsel May
Resign as Result of Bick?
ering at Second Session
In the course of his second grilling
before the legislative committee in?
vestigating his administration May?
or Hylan admitted yesterday that
the city had levied in taxes for thi?
year $124,000,000 more than it had ?
constitutional right to impose.
Elon R. Brown, the committee'*
thief counsel, declared it was the
first time in the history of the city
that such a thing had come to pass.
He also said that the assessment this
year was the highest ever made and
indicated a financial condition fore?
shadowing a great shrinkage in
valu*!.
It was also developed that th?
city's debt-incurring power's had
teen reduced by $53,000,000 durjng
the Mayor's tenure of office because
of excessive expenditures.
Hylan Has Many Clashes
The Mayor in defense said that the
city had exceeded its proper tax lev?
because of the action of the Legisla?
ture "in .sending us down mandatory
legislation." He said that the $53,
000,000 lopped off the debt-incurring
powers of the city had been spent for
schools, transit and other such things.
The Mayor showed a greater air of
confidence than he possessed the first
d;:y of his appearance on the witness
stand, with the result that his ques?
tioning was marked by continual tilt.:,
and clashea between himself and tac
committee's counsel. Senator Walker
a Democratic member of the commit?
tee, linaily joined in the bickering.
His "stump speech" so aro?E?d Mr
Brown that the latter threatened I.
resign as counsel if the interruptions
are permitted to continu? .
It -as a day of give and take, with
the Mayor delivering long statement*:
at every opportunity. He fourni him?
self high and dry when he had at?
tempted to obtain sume information
from Comptroller Craig which Mr
Brown had requested. The Comptrol?
ler wrote a note to the Mayor, setting
forth that many of his office force "had
gone on vacation" and that if the com?
mittee desired the information they
could come and get it themselves.
Switching from Duncan Maclnnes, to
whom he referred the committee the
previous day for all statistics and
ligures on the tinances of the city, the
Mayor yesterday hit upon the Comp?
troller.
Brown Told to Co '<i> Craig
"You can get that from tin Comptrol?
ler," he would say, or "If you -ant re?
liable information* on that point you
c=i:i get ?t only from the Comptroller
Why don't ?ou get him on it'.'"
'I he Mayor insisted that il -a , not
fair for counsel to ... u,
figures which could be obtain-?) more
ace .irately from department head.-, bu;
Brown pointed out that tl,; Mayor wa
in the habit of recei\ i >? n - from
his department chiefs and that uu?_?r
the charter ?1 was his duty to be con
versant with certain detail.; of tm
lily'.'- financial affairs.
The Mayor generally dodged al
complex questions with an easy ref?
erence to the Comptroller, but when _
simple query about sinking ?und- wat
put to him, he complained.
"I didn't know I wa to be pul
through a civil service examination."
When Mr. Brown pointed out thai
the city's budget had been increase?
50 por cent since 1917, that $30,000.000
had been added to the cuy'- siiar;
and wape expenses between 1919 ami
1920. and asked the Mayor what wa?
being done to reduce expenses, the lat?
ter said that ti c matter of consolidating
various force.- in departments had been
"thought of." hut that nothing had ac?
tually been done, nur did he have any
plan in mind by which the city's
budget might be reduced.
Wage Question in Discussed
He said, however, that a savings could
he effected if the direct tax of .*__..
000,000 imposed on the city by tin
state were removed and the chartei
amended giving the -ame power? t?
conduct its affairs accorded to stconc
and third class cities.
When Mr. Brown suggested that th?
cost of living had ?Iropped and that pi"
?iiem wages had been reduced 10 t'
27 per cent all over the country, ti
Mayor said that the matter of wape
was being investigated, but that he wa
in favor of keeping i-alaries at tin
present ?eve!.
In connection with the $27,000,00!
which the Legislature required the cit;
to lay out for school salarie-, th?
: Mayor said he objected to the man
i datory aspect of the case, but tha
? he was in favor of giving the teacher
the extra money.
The discussion over the 2 per ccn
? which the city is permitted to tax rea
and personalproperty for its runnirt
i expenses was brought about by th
; Mayor's contention that the tax wa
: levied on the assessment of the cut
rent vear. while Mr. Brown incit-ie
' that under the law the tax is levie
; on the assessment of the year pr?
T?O??.
. Brown said:
"The limit is 2 per cent of tic a?
sesBed valuation of the real and pel
sonal property, to be ascertained i
I the same manner as it i? ascertain?
| in determining the city's debt, limi
j and that is ascertained by fixing 1
j per centum of the assessed valuation c
j the real estate of such county or cit
subject to taxation as it, appeared b
the assessment rolls of said county c
city on the last aasessment for utat