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2 MORGAN REFUSES TO DISCUSS LOAN j declares, on Return From Europe, 1 He Is Hot Ready to Talk About $100,000,000. f ; HUST CONFER WITH OTHERS ■ ■■ ■' Financier and Wife Narrowly Escape Injury on Boat. _______ By the Associated Press. INEW YORK. May 9.—ls J. P. Mor gan has entered into, definite nego tiations concerning a loan of *IOO,- <910,000 by American bankers to Ger many to help rehabilitate that coun try he is not ready to talk about it or give the outline of the deal to the public. The banker arrived yesterday on the Homeric after an absence of sev eral months in Europe. Speaking of the proposed German Wan. Mr. Morgan said: "Much as I ■would like to go into this matter it is obvious that my usefulness hinges on silence at this time.” He was told Owen t). Young, one of the reparations commissioners, had said the loan might easily be floated here. "That was very nice of Mr. Young.” he said, "but so many issues are in volved, so many governmental phases would have to be discussed with bankers before such a loan was tak en up, that 1 cannot discuss it now.” He pointed out that the American government was neither officially nor in a.ny way connected with the Ger man loan proposal, but he indicated there were others besides associates of J. P. Morgan <t Co. who would have to be consulted. "We are bankers, you know, and as stjch reserve the right to consider a proposition among ourselves before making its terms publ.c,” Mr. Mor gan continued- "t must be fair to my business associates. I haven’t discussed this loan with them. I must be discreet." He admitted that, since the govern mant was not to participate in float ing the *100.000,000 bonds, J. P. Mor gan & Co. was the one private firm In America most likely to dispose of such a huge issue. Asked how much time might elapse before his firm would consider the terms of the loan plans and publicly announce whether it would undertake to float the *IOO.- 0 Of).000 issue in America, he said bluntly. “I don't know." Mr. Morgan corroborated reports from Paris that the *100.000,000 his \ firm advanced that country recently i to halt the plunge of the franc on the exchange was loaned on condition 1 that the French would undertake to I float no mere government bond issues than were, already outstanding. Thought Matter* Known. 'T thought that was a well known fact." he said, “It was quite under stood at the time.” He declared also that his arrival in Paris Just as the Dawes report became public and his ensuing con ferences with Bradbury, the British, and Barthou. the French expert on the reparations commission was “purely circumstantial”; that “they learned I was in Paris and asked that I confer with them, in a pro- 1 fessional and individual capacity. | about the financial provisions of the | report.” The Morgans narrowly escaped | injury this morning as the Homeric' hove to at quarantine to take aboard a pilot They were standing near the rail, when a gangway bridge, weigh ing several hundred pounds, was loosened from Us moorings by the sudden tossing of the vessel and crashed at their feet Mr. Morgan leaped clear, pulling his wife to safety with him. LANGLEY DEFENSE IS BEGUN IN TRIAL Prosecution Ends Case—Represent ative May Take Stand, Counsel Indicates. By the Associseed Pua. COVINGTON, Ky., May s—The United States government today closed Its case against Representa tive Jehn W. Langley of Kentucky, on trial in federal court here with two codefendants on charges of con spiracy to defraud the government of tax on whisky Illegally removed from a distillery. United States District Attorney Sawyer Smith announced the gov ernment had concluded Its evidence shortly after court convened today. Bangley, with Milton Lipschutz and Albert P. Slater, both of Philadel phia, arc charged with illegal whisky transactions in 1921, and have been on trial since Tuesday. Two other men, Indicted with them, yesterday I watered pleas of guilty. Defease Opens Case. Counsel for Langley Immediately fbogan his defense. While it has not definitely been decided, Langley’s counsel say it is probable that the representative will be placed on the stand. Attorney W. K. Gray, Philadelphia, representing Lipschutz and Slater filed a motion to take Slater’s case from the jury on the ground that only one witness had testified against the defendant and that the testimony offered was not such a» to make a case. Counsel Henry Davis. Washington. D, C-, filed a like motion on behalf of Langley, alleging Langley whs indicted only for conspiracy and the charge had not been sustained The jury was withdrawn while' mo tions were argued. Judge A. M. J. Cochran overruled bpth motions and also one filed In behalf of Lipschutz. Judge Cochran announced, however, that he would permit only the sec ond and third counts to be passed on by the jury. The second count charges conspiracy to sell and the third charges conspiracy to trans port. The first count charged con spiracy to defraud the government. SENATE RENT PROBE .i DATA TURNED OVER \\ TO U.S. PROSECUTOR from First Page.) »he passing of the emergency which |>rompted the enactment of the Ball gent act. Attention of the court was also directed to the statement con tained In the recent decision of the United States Supreme Court in the Uhastelton case, in which the court etrongly intimated that If it were deciding the question cf the present existence of an emergency it would be inclined to "hold that the law had become inoperative. Chapin Brown, counsel for the Rent Commission, declared the statement of the United States Supreme Court Justice in his opinion, on which coun sel relied, was “mere dictum,” as the coestion of a present emergency was not Involved in that case. Ho sub mitted sworn answers by the mem bers of the Rent Commission In which they assert that the housing short age still exists and in which they re fer to the recent action of the House «f Representatives after an exhaus tive Investigation in passing an ex tension of the act for an additional two years. The House vote is given as 194 to 64. Mr. Brown also di rected the attention of the court to an affidavit of Atlee Pomerene, then a senator from Ohio, as to the in quiry ky the Senate concerning a boixsmg emergency when the act was extended in 1922. “-£ •'«» i. .. Wants to Be Senator p- ■■■" , ■ * Tv:- wmw SPEAKER FREDERICK H. UILLKTT. SPEAKER GILLETT TO RUN FOR SENATE (Continued from First Page.) cure, additional recognition should they retain a substantial voting strength after this years election. In point of seniority the Republican ranking next to Mr. GUlett is Repre sentative Cooper of Wisconsin, a member of the La Follette group, but it Is doubtful whether a serious effort will bo jpade, because of his in surgency, to place him in the Speak er’s chair. Ranking next to Mr. Cooper are Representative Greene of Massachu setts, chairman of the merchant ma rine committee, and Representative Butler of Pennsylvania, chairman of the naval committee, each of whom has served In fourteen consecutive Congresses. Speakership booms. In the event of a Republican majority in the next House, already are de veloping also for Representative Longworth of Ohio, the present Re publican floor leader, and others. Mr. GUlett announced his candidacy in the following statement: “I have been urged for some time to permit the use of my name as a candidate for the senatorship. I felt, however, that Gov. Cox should re ceive the support of the party if he desired the nomination, and refused to become a candidate. While deeply conscious of the high honor which has been accorded to mo by the mem bership of the House, I believe that there is a broad field for service in the Senate In sustaining the poli cies of ITesideni Coolidge, and I therefore announce my candidacy for the Senate.” At the office of Representative Dal ■ linger it was said that the decision of [ Mr. Gillett to be a senatorial candi- I date would In no way affe,ct Mr. Dal [ linger in his announced intention of j contesting for the nomination. COX NOT CANDIDATE. Definitely Announces He Will Not Seek G. 0. P. Nomination. BOSTON, Mass, May 9.—Gov. Chan ning H. Cox in a statement yesterday definitely announced that he would not he a candidate for the Republican nomination for United States senator in place of William M. Butler, who withdrew from the contest after his selection by President Coolidge ae Republican national chairman. Louis C. Coolidge of Boston at present is the only candidate actually in the field for the Republican nomi nation for United States senator. Rep resentative Frederick W. Dalllnger has announced that he will be a candidate if Gov. Cox does not seek the nomination. Other members of thb Massachusetts delegation in Con gress whose names have been men tioned are Speaker Frederick H. Gil lett and Representative John Jacob Rogers. Samuel E. Winslow and Louis A- Frothingham. ASK OIL SUIT DISMISSAL. LOS ANGELES, May 9.—Dismissal of the government’s suit to cancel naval oil reserve leases granted to the Doheny Interests in Kern County, Calif., was asked in an answer filed in federal court yesterday by attorneys for the Pan-American Petroleum Com pany and the Pan-American Petroleum and Transport Company. Denying categorically all allegations of Il legality and conspiracy in connection with the leases, the answer states that expenditures of approximately *10,000,- 000 have been made or provided for by the defendant companies in the con struction of refinery, storage and other facilities in order to carry out their contract with the government, and points out that if these are annulled great depreciation would result. PIMLICO ENTRIES FOE SATURDAY. FIRST RACE—The Glenmare steeplechase; nm. *2,000; feur-yoar-olds and ay; claiming; handicap; two mile* and a * carter. tParlays I*l Rampage 138 rwiaast Feel.... 138 SSeoTUstor .... lit Vex Populi 8d,... 133 Reek 138 *KaU C Day 132 IHerriard 133 LeUlsop 142 iHuonera 143 Fertnsmenl 142 SGlmme 138 tJ. E. winner entry. tlaurel Park Stnd-J. MeZ. Bowman entry. §J, S. Ceaden entry. SECOND RACE—Two-year-eld maiden Miles; purse, fl. 300; four and one-half furlongs. fStarraatia 110 Derothr Gilpin .. 110 tTlory Flight.... 110 Thiatleweed 110 Raokmerne 110 Anna Jordan 110 Urkaana 110 Ultimately 110 tWlser 110 Golden Leeks 110 fPretty Business . 110 tEd ward F. Whitney entry, tSamuel Reas and W. T. Seipp entry. t rerun RACE—The Pikorville; puree. *1.500: two-year-olds; four furlong*. Ml Ksoe 118 Earla Baby ..... Jl4 +Pretty Business. 100 RoivUls *OO +Arbitration 112 Reduaz 112 twiner 100 Urbanna 100 Harlan 118 Ball Gee 11* Crumple 112 Bother 112 Jehn F. Kleaver.. 112 tV. T. Seipp and Samuel Rees entry. FOURTH RACE—Three-year-olds and up; purse. 81,380: claiming; six furlongs. •Reprisal 109 *Fohrah $3 Harry land 106 "Sir Galahad 11.. 103 Guvuer 115 Speedy Girl 100 •Tioacey 100 •Admirer 109 Spartan 108 *Xlr«h 88 Dr. Chat. Wells.. 108 •Moehade M Joseph Brandt... 108 Reakst IftS Jaeksen 107 ‘Son Turret 107 Clinging Tine 85 Our Flag m FIFTH RACE—Purse. $1,300; tkren rear olds and op; claiming; wae mile and a for ient ■ •Bevorwyck 115 ‘War Mask 113 •Thomaalne 88 ‘Vagal Jay XM •Rochabite 117 <lulci Tkne 1« •Dellaham 118 * Bounce ug •Old Faithful.... 118 Ashland uj •Lsrd Wrack 118 »Altis*im* 1.///, *7 •Lady Zeus 108 SIXTH RACE —The Pimlioe spring Imndieap ■ $7,508 added; three-year-olds and up; one mile and a sixteenth. My Own 188 Suppliant 86 *agr;;.:::::Ss K. Solomon's Seal IIS Senator Karris... 188 Mad Hatter. 120 Rejection $8 Transmute 103 Modest 103 SEVENTH RACE—The Arundel puss. $1,500; three year-olds and up; aim fnrbngs. Blue Keen 82 Champlain US Mm 07 Deputy MB Sen Snnd 116 tHooi Taps 188 Big Heart ... 115 Cave Woman SB tMainmast 118 Sun Flag. lag tEdward P. Whitney eater. •Apprentice allowance of five pounds claimed. Weather, (dear; track, muddy, ; t .. THE EVENING STAR, WASHINGTON, D. 0., FRIDAY, WAY* 9, 1924. TAX ON CORPORATION EARNINGS IS SCORED Business Men Say Forced Dividends Will Undermine Promrity of Country. FOUGHT BY ADMINISTRATION Proponents Hold Measure Combats Tax Evasion. UiapoNlng rapidly of pending amendment!., (Re Seattle today brought (Re revenue bill up for final passage. Before (be final vote, however, sepnrale action nan naked for on • number of Important amend ments, which had been adopted in committee of the whole. BV DAVID KAWRENCK, The biggest issue that has yet been raised in the taxation contro versy in Congress—and one that may bring a veto from the President fast er than anything else in the pending bill—is that provision adopted by the Senate which would force corpora tions to distribute virtually all their earnings. Business men who have studied the provision are almost a unit in de claring that not only would the pros perity of the country be undermined if such a thing became law, but that interest rates would be forced up ward. and the business expansion of the United States would be seriously impaired. A ooalition of Democrats and In surgent Republicans has forced the proposal into the Senate bill, and the administration will make a determin ed fight in conference to have it eliminated. Bars Accumulating Fund*. Reduced to its essence, the provi sion means that big corporations, which have always retained a large portion of theelr earnings as a mar gin of safety against fluctuating con-, ditions In the world of industry, would be compelled to pay out their ac cumulated funds in the form, of divi dends. Then, if they need money for expansion or for emergencies, they would have to borrow. Undoubtedly they would be com pelled to ask bankers to float large bond issues from time to time. This means a commission to the lenders, together with interest rates that would compete with other investment offerings, and it is acknowledged that some private businesses must pay more for their money in the open market frequently than others, de pending upon' the character of the business and its appeal to the public as a safe investment. The cheapest way to borrow money haa been for corporations to accumulate a surplus and use their own funds for ex pansion when needed- The proposed tax law would deprive them of that opportunity. Vrcw Taxable* Escaping. The theory pf the proponents of the measure is that a large sum of money annually eecapes taxation b«ause it Is not distributed in the form of dividends. Senator Jones of New Mexico contends that for seven years, from 1916 to 1922, inclusive, the total incomes of corpora tions upon which no surtax was paid amounted to $27,000,000,000. Only *IS.- 000,000,000 out of a total of *45,000.- 000,000 earned in that period was dis tributed in dividends. 4 .. , Senator Smoot, however. doe« not think that is necessarily abnormal or done with an idea of escaping taxation, for he cites figures from 1910 to 1916, be fore the high surtaxes were In effect, the corporations averaged 53 In per cent of their profits in distributed dividends, while from 1917 to 1922 about 140 of the largest industrial corporations of the country averaged 65 per cent of their profits in dividends distributed Held* Innocent Snffer. He points out that a Treasury docu ment shows that for all corporations during the year 1922 the distribution of profits amounted to an average of 60 per cent of earnings. On that ac count. he declares, the industrial com panies which would be penalized by the new law are the very ones who are innocent of the wrongs which the Senate is trying to correct. The provision already incorporated in the bill is a graduated tax. Thus, if 30 per cent of the earnings of a corporation are not disturbed there will be imposed a 5 per cent tax on the undistributed 30 per cent. This is entirely aside from the 9 per cent on all net income which is distrib uted. The tax runs upward to a maximum of 40 per cent if the un distributed income of a corporation is more than 58 per cent of what is known as “the surtax net Income.” Fought by Treasury. The Treasury Department is vig orously opposed to all this on the ground that the present revenue law contains a sufficient safeguard against this form of tax evasion. The Secre tary of the Treasury is Impowered to impose a penalty whenever he dis covers that corporations are holding in their possession more funds than : they actually need for their business. This means that the burden of . proof is always on the corporation, I and the power of imposing a penalty I is not mandatory but discretionary. BLOCKED BY BLOC. Tax Bill Threatened With Farm Relief Rider. Pressing toward a final vote on the [ revenue bill, the Senate today faced a stumbling block in the plan of [ advocates of farm relief legislation 1 to tack the McNary-Haugen bill to the measure as an amendment. Two attempts made during a ten hour session yesterday to restrict de bate on the bill today and agree to vote on it for passage at 5 o'clock were blocked by objections from both | sides of the chamber. , All of the committee amendments , were disposed of yesterday with 1 adoption of a gift tax, one of the t two new taxes In the bill. That im posed on mah-Jong sets, of 10 per cent, is the other. Amendment after amendment also was accepted yesterday as members of both parties put forward proposals, 1 mostly aimed to clarify the language ; relating to exemptions and to liberal -1 ize the rules affecting' collections of ; taxes and claims for refunds. In ad -1 dition, the Democrats, again aided by 1 Republican Insurgents, voted to open further the Treasury records to 1 publicity of tax questions, putting in an amendment to make public all hearings of the proposed board of tax appeals. CMlitiM Effects Changes. [ The three outstanding changes ; made In the bill by the Senate, all with the vote of the Democratic-Re publican insurgent coalition and all 1 against the wishes of the organisa tion Republicans and the expressed 1 desire of President Coolidge, are: [ Substitution of an income tax schedule calling for leas of a reduc [ tion on surtaxes and a greater cut In normal rates than proposed in either the House bill or by Secretary . Mellon. « Opening Os tax returns and the hearings of the proposed board of tax appeals to the public. t Substitution of a graduated tax on undistributed profits of corporations for the present flat corporation levy. Around ’these provisions. If finally J CO-OPERATION IS VOTED. B. & O. Shopmen Indorse Collab oration With Management. PHILADELPHIA, May 9.—Unani mous indorsement of the “policy of co-operation” between the “bona fide” ehoperafts unions and the manage ment of the company was voted yes terday by Baltimore and Ohio rail road shopmen in annual convention. Representatives of 25,000 union shop men of the system attended the meet ing. Steps also were taken to intensify the campaign of the shopmen to ob tain business for the railroad. Wil liam McGee, president of the Balti more and Ohio Shopmen’s Federation, said that within a few clays he ex pected to enlist the services of the entire “American labor movement and Its friends” in the business-getting program. Mr. McGee declared that more than a year's trial of the policy of co operation had demonstrated its bene fits both to the employes and the com pany. VETERANS SEEKFUND TO DECORATE GRAVES G. A. R. and Allied Associations Start Drive Tomorrow for Tributes. HONOR 75,000 DE£D HERE Many Lending Aid for Memorial Day Observance. The Grand Army of the Republic and allied veterans’ associations tomorrow will bpgin their annual drive for memo rial funds to decorate the 75,000 graves of veterans of all wars in the Arlington cemetery and other cemeteries in the District of Columbia on Memorial day. May 30. Arrangements have been made to place boxes—in the shape of tombstones—for contributions in stores and at various localities throughout the city. DdMiate* 7&JMO Green. On the boxes will be printed: "In memory of the nation's defenders of the Grand Army of the Republic, United Spanish War Veterans. Veterans of For eign Wars, the American Legion and the brave nurses who served in the wars with them." Inscribed also on the box is: “There are seventy-five thousand of these graves to be decorated on MemoriaJ day, and a smaJl donation from you will do It. Will you please help?” Henry A. Johnson of the G. A. R. i s chairman of the memorial day finance committee, in charge of raising the funds, and which also is authorized to arrange for decorating the graves. Other members of the committee in clude Andrew J. Kimmel of the United Spanish War Veterans, vice chair man; Col. O. U. Oldroyd and E. J. Nolan. Many of the chain stores and others in the city have promised to co operate with the committee. All are urged to give. PHONE RATE PROBE ASKED New York Group Urges Congress Investigate Companies. NEW YORK. May 9.—A congres sional Investigation of telephone rates throughout the country and into the relationship between the American Telephone and Telegraph Company, local companies and the Western Electric Company was requested by the community councils of this city today. Resolutions asking such ail investigation were forwarded to Pres ident Coolidge, Senator Cummins and Speaker GUlett. The request for an inquiry was based on complaints against the 10 per cent increase in telephone rates recently allowed in New York and the installation of the Dial system, which, the resolutions said, had made “tele phoning onerous and difficult for the general public.” The resolutions also stated that “there is a national dissatisfaction with rates and service that is receiv ing the attention of the American people.” Contest Coolidge Defeat. JUNEAU, Alaska. May 9.—Election results by which it was announced adherents of President Coolidge had lost generally in Alaska primary and municipal elections April 29 will be contested, according to indications. The ground of the fight will be that several hundred Indians, or native Alaskans, voted Illegally. accepted, will center the fight in con ference with the House and the question of party supremacy. Each was made a party issue. Veto I* II omo red. In connection with the announced opposition of President Coolidge to these provisions, Senator Reed. Dem ocrat, Missouri, during debate last night, declared “it has been whis pered about that President Coolidge is going to veto this revenue bllL” His remark brought no response from the Republican aide. Republican organization leaders have been preparing since their in corporation In the bill, for a final attack on the Democratic income schedules, with the hope of Inserting the House rates In their place as a compromise substitute. Efforts to change the publicity and corporation tax provisions, however, has been left for the conference. The House de cisively rejected a proposaJ to open tax returns to public inspection, while no change was proposed in that chamber affecting the corporation tax. The provision for a 25 per cent re duction in income taxes payable this year has stood in the Senate without opposition. Those who talk of a presidential veto recadl that Mr. Coolidge and the Treasury Depart ment sought removal of this ( section from the measure for enactment In a separate resolution before the first installments fell due, March 15. See Difficulty for OooUdge. Others argue that a veto of the bill would be difficult, because it would nullify the repeal or reduction of many of the excise rates, as approved both by the House and Senate These reductions would go Into effect thirty days after enactment of the bill into law. Exemption from taxation of amounts paid as a state pension was voted on motion of Senator Trammell. Demo crat. Florida. He pointed out that many southern states paid pensions to Confederate soldiers, and argued these sums should be allowed the same exemptions given federal pensions. PLEASE , Ak LEAVE the > i. < yQQ6woop ft MACKENZIE MEETS . DUNPHY IN FINALS Former Goes Nineteen Holes With McAleer in Placing Round. VOIGT DEFEATED. 1 DOWN Closest patches Ever Witnessed on Local Courses. Roland R. MacKenzlo and Chris J. Dunphy are playing this afternoon in the final round of the Indian Spring Club's annual golf tournament. In two of the tightest semi-final matches ever witnessed on local golf courses Dunphy defeated George J. Voigt of East Potomac 1 up, and MaoKenXie, who won the Washington tournament last week, defeated Earl MoAleer of East Potomac on the nineteenth hole. Ail square going to the seventeenth. Dunphy placed a fine iron shot 12 feet from the pin and won the hole when Voigt missed a six-foot putt for a half. Volgt again missed a four-foot putt to win the hole and carry the match to extra holes on the eighteenth, where Dunphy hooked his second shot into a bunker. MacKenzie lost the sixteenth to become one down by taking three points. A fine iron shot which gave him a putt for a two won the seven teenth when McAleer missed a four foot putt. The eighteenth was halved in five, although Roland took three to get down from the of the green. The youthful Columbia player won the nineteenth hole and the match when he laid a high mashie shot 10 feet from the cup, while McAleer half topped the second shot. Tom Moore and John F. Brawner are playing in the final of the first flight consolation. They reached the final round by victories over Albert H. MacKenzie and W. A. McGuire. » Star* Eliminated. The two public links players, who leaa-ned their game on the course at East Potomac Park, played against the two men who have shown them selves so far this year to be the erwuu of local golfing circles. George J. Voigt of East Potomac Park, who met Chris J. Dunphy of Columbia this morning, while Earl McAleer, southpaw golfer from the park, who crossed clubs with Roland R. Mac- Kenzie, Columbia’s young star, won their way into the semi-final by out slugging their opponents through mud and water yesterday in one of the soggiest golfing days in recent years. The first round of match play yes- j terday witnessed the defeat of two 1 golfing staJwarts in the persons of j Walter R. Tuckerraan, the District j champion, who lost to Roland Mac- ( Kenzie, and Albert R. MacKenzie, the 1 .Middle Atlantic champion, who lost | to Votgu The finest match of yesterday and \ one of the best in many days was I the afternoon engagement between 1 Roland and Miller B. Stevinson, who j won the medal round. Although | Stevinson won the first hole, the youngster caught him at the fourth, and they played through the turn all j square. Stevinson put an iron shot Into a trap at the tenth and lost the I hole. Every hole thereafter was halved until they reached the six teenth, where Roland laid an ap proach stony. The lad lost the seven teenth. however, by misjudging the shot, but won the eighteenth to win from Stevinson. 2 up. MacKenzie was 75 and Stevinson 76. Frist Flight Score*. Yesterday’s summaries follows: First flitht; first round—C. J. Dunphy. CoL. defeated Tom Moore. I. 8.. 3 uud 1; C. N.' A«- new, jr.. K. P., defeated J. M. Downey. E. P.. 5 «nd 3; G. J. Voljrf. E. P.. defeuted A. H. MacKenzie, Co!.. 4 »nd 3; K. F. Keller mzn. Jr., Col., defezted W. K. McCallum. 1 Wash.. 1 up; Hurry Krause, Bann., defeated A. F. William*, E. P.. 2 and 1; Karl McAleer, ; E. P.. defeated 3 F. Brawner, Col., 2 np; R. ‘ R. MacKenzie, Col., defeated W, R. Tucker- 1 man. C. C. C.. 4 and 3: M B. Stevinson, Col.. I defeated W. A. McGuire, E, P.. 1 up. Second round—Dunphy defeated Ajrnew, 3 | and 2; Voigt defeated Kellerman, 2 up; Mr- I Aleer defeated Krauaa. 6 and 3; MacKenzie defeated Stevinson. 2 up. Connotation—Moore defeeted Downey. 8 and 7: MacKenzie won by default; Brawner de feated Williams, 7 and 6: McGuire won by de fault. Second flight—J. M. Cotts. I. S,. defeated A. M. Porter. CoL. by default: K. W. Free man. Wash., defeated J. M. Brownell. I. S., 2 up; C. B. Asher. Col., defeated A. F. Pres cott. 1 up: J. W. Brawner, Col., defeated P. Y. Andereon. I. S.. 1 up; H. H. Saum, CoL. defeated J. B Murphy, E. P., 2 up; P. C. Clark. I. S.. defeated J. C. Davidson. Wash.. 2 and 1; C. A. Fuller. C. C. .. defeat ed W. M. Kennedy. Col., 3 and 1; C. B. Batch. OoL. defeated O. P. Orme. Col.. 1 np. Second round—Freemen defeated Cutts. 2 np: Asher defeated Brawner, 3 and 2: Siam defeated Clark. 3 and 1; Fuller defeated Hatch. 6 and 4. Consolation—Browner won from Porter by default: Preocott defeated Andereon. 6 and 5; Davidson defeated Murphy, 1 up; Orme de feated Kennedy, 3 and 2. Third Flight Rereolt*. Third flight—H. K. Cornwell. CoL. won from A. J. Grey, unattached, by default; P. J. Frizzell, I. S.. won from B. V. Beyer, I. S.. 2 up; W. B. Vogel. E. P.. defeated Thomas Hopkins, I. 8.. 3 and 2; D, C. Patterson, I. S. woe from Page Uufty, E. P.. by default; 8. R. Specimen. I. S., won from C. H. Baker, Wash., 3 and 2: G. C. Minnegerode, C. C. G., won from W. R. Crarapton. Col.. 3 and 1; F. E. Early, I. 8., defeated J. W. Richards. B. P., by default; A. L. Christman. CoL. won from C. C. Griffith, ON., by default. Second round—Frtoell defeated CormseLl, 1 up: Vogel defeated Puttersoo. 6 and 5; Speci al an defeated Minnegerode. 3 and 1; Early defeated Christman. 3 and 2. Consolation—Beyer won from Gray by de fault; Hopkins woo from Hufty by default; Baker woo from Crumpton by default; double default. Fourth flight—J. A. White, jr., Bonn., de feated E. L. Bono, rutan., 2 up; J. T. Harris, Bann., defeated M. D. Gieseking. I. 8.. 1 up; V. W. Van Fleet, I. 8., and L. W. Perce, Balto. double default; E. B, Tißey. I. S-. de feated J. R. Do Fargea. L 8.. 6 and 4; H. T. Shannon. Col., defeated 8. B. Rain. Ws&h., 4 and 3; J. K. Collins, E. P.. defeated Edgar Markham, I. 8., 2 and 1: G. E. Truett, Wash., defeated C. A. Slater. CoL. 5 and 4. Second round—White defatted Harris. 4 and 3; Rose wan by default! Tißey defeated Shannon. 4 and 3; Truett Brfeated Collins. 1 up. Consolation —Bono defeated Dieaekmg, by de fault; double default; Bain defeated De Fargee, 6 and 4; Slater woo by defanlt. Fifth flight—N. O. Mackay. L 8.. defeated 0. 8. Silaby. I. 8.. 2 up; C. A_ Watson. Obi., defeated Jules Qenderaon. I. S., 3 and 1; W. H. Montgomery, unatt-, defeated G. B. Chris-' Hen jr., CoL, by default; T. M. Foley, C. C. C-, defeated L. Stabler, I, 8., 1 up in 19 boles; O. R. Hough. Coogreartonal. defeated W. B. Jeffries, 1. 8.. by defanlt; H. 8. Pope, 1.8., won from W. n. West, Col. 3 and 2; W. E. Baker. Col., defeated J. HeOonnck, I. S.. 3 and 2; T. F. Scott. I. 8., defeated L. M. Benedict, unatt., 4 and 2. Second round—Mackay defeated Watson, 4 and 2; Foley defeated Montgomery, 6 and S; Pope defeated Hough, 6 and 5; Baker de feated Scott, 4 and 2. Consolation —Henderson defeated SUsby, by default; Stabler won from Christian by de fault; McCormack won from Benedict by de fault. Sixth flight—EL E. Harrison, unatt,. defeat ed W. L. Moore, I. 8.. 2 and 1; F. Bf. Lewis. I. 8.. defeated W. Campbell, I. 8.. by de fault: A. B. Campbell. I. 8., defeated J. M. Porter. I. 8.. by default; T. J. Rowe, Talbot, defeated W. J. Finley. Col.. 3 and 2; F. P. Waggaman. C. C. C.. defeated C. R, Taylor, T. 8., 4 and 3; F. 8. Motoe, Baas., de feated H. M. Bemis. Col., by defanlt; C. 8. Watts, Col., defeated L W. McKernan, Wash., 2 up; J. P. Gilmore. E. P., defeated C. A Daly, I. 8., 2 and 1. Birds and Women Unite in Fight on Caterpillar Army By th(> Associated Press. LOS ANGELES, May 9.—Black birds and housev/ives today we e fighting- against an army of bil lions of caterpillars moving against the southwestern out skirts of Los Angeles and devour ing plants and flowers. The housewives, complaining that their children cannot come home from school without walk ing on worms, were caterpillars off their sidewalks and spraying them oft their lawns and flower beds with insecticides. The blackbirds were gulping with happy appetites and arriv ing in new swarms hourly for the feast. CHARGE REAIfOR GOT LOW RENT BY FRAUD Jefferson Apartment Owners Al lege 0. B. Pitts Pays S2OO Rental for 17 Rooms. ‘SECRET AGREEMENT’ IS SEEN Court Asked to Declare Lease Null and Void. The Jefferson Corporation, which describes itself as owner of the Jef ferson apartment, 16th and M streets northwest, today filed with the Rent Commission a petition charging G. Bryan Pitts, vice president of the F. H. Smith Company, with a "secret agreement," by which ho received special consideration and special rental of his seventeen-room apart ment in the Jefferson Apartment, "defrauding" stockholders of the Jefferson Corporation and resulting In "an unfair and unequal distribu tion of rents among the other ten ants." The alleged "secret agreement," the petition avers, was between "W. A. Kills, then president of the Jefferson Corporation; C. Elbert AnadaXe, sec retary of the Jefferson Corporation; the F. H. Smith Investment Company, the P. H- Smith Company and Q. Bryan Pitts.” It is also set forth that the K. IT. Smith Investment Company handled ; J 500.000 first mortgage bonds of the Jef i ferson Corporation, that the F. H. \ Smith Company fixed the rents among i the other tenants occupying space ‘ equivalent to Pitts’ apartment at “and i for a sum in excess of $750,” and that I the “reasonable value of the apartments ; occupied by the defendant is not less ! than SI,OOO per month.” Pitt’s lease, it is shown, is at rental of S2OO a ! month. The petition, signed, by L. M. Am i sted, president of the Jefferson Cor i poration, aaka that the lease between Pitta and the corporation "be de j dared null and void as contrary to | Law and in fraud of the rights of | your petitioner and in fraud of the I rights of the other tenants in the | apartments, and that the said lease be rewritten In accordance with law." Question Commission Deal. | Pitts and “his associates in the F. ] H. Smith Company” are also charged with having received SIO,OOO which j was to have been paid to W. A. Mills, I agent. The contract for sale of the $500,- 000 first mortgage bonda at par, It is set forth, provided "that of this amount there was to be deducted the sum of $55,000 to be paid to the F. H. 1 Smith Company and the sum of $lO,- ! COO to be paid to W. A. Mills, agent.” In this connection the petitioner | aharroet “that the SIO,OOO aforesaid. ! provided to be paid to W. A. Mills. |as agent, was in reality to be paid and was thereafter actually paid to I G. Bryan Pitt* and his associates In 1 the F. H, Smith. Company.” I Pitts’ apartment in the Jfflspsim is I described as consisting of "seven | teen rooms and five baths,” which | were formerly supposed to have been apartments No. 704, 706, 708, 710, 712 and 714. PHIPPS’SECRETARY REPLIES TO BLANTON Questions Texan’s Criticiim of Realty Taxes Paid by D. C. Residents. Answering Representative Blanton's personal criticism of real estate taxes paid by certain residents of the Dis trict, the secretary to Senator Phipps today pointed out that "any reason able man. who docs not desire to give false impressions or becloud the issue, must admit that there is nothing to the charge.” Senator Phipps, how ewer, said that he did not care to com ment on Mr. Blanton’s statement. Senator Phipps’ secretary said that the only real estate taxes paid by the senator in the District are on his home here, which amounted last year to $1,237. "If Mr. Blanton wishes to think that on account of a possible increase in taxation which would cost, at most, a few hundred dollars. Mr. Phippe wonld view District matters from a selfish standpoint, the repre sentative is welcome to that opinion. Ne Commercial Interests. “Does Mr. Blanton mean to inti mate that a member of Congress should not own his own home in the District, and that if he does, he is precluded from expressing an in terest in Congress on District mat ters? Please note also, that Senator Phipps has no money Invested here for commercial purposes or from which he receives a return. It ap pears that, instead of being criticised, he should be commended for becoming a property owner in the District and for doing his share in paying taxes toward the upkeep of the District government.” Senator Phipps’ interest in District affairs. It was said went still further, as last year his contributions to charitable organizations here totaled $22,800. This figure includes an item of $4,200 to Garfiield Memorial Hos pital, and one of $6,000 for a grand stand for the athletic field of Waiter Reed Hospital. "Surely these contributions,” said the secretary, "prove that the sen ator's motives are entirely unselfish.” ICEBOUND STEAMER, 56 ABOARD, REACHES PORT Northwest Gale Abates and Six- Mile Blockade at Duluth Gets Belief. By the Associated Press. DULUTH, Minn., May #.—Breaking the second serious ice blockade at the bead of the lakes this spring, ten ships, including the Canadian passenger liners Hamonic and Moronic had reached the Duluth-Superior harbor at 10.46 a.m. today. W ith the northwest gale abated, the Huronic. icebound for three days with fifty-six persons aboard, was the first break through with the aid of a tug. She was followed closely by a freighter. A score of freighters were cattered along the six-mile front of the block ade early today, with a fleet of tugs struggling to break up the ice. ST. PAUL, Minn., May 9.—Chilly spring weather, with a mixture of snow and rain, greeted the northwest today. In the vicinity of the Twin cities snow fell early, melting at once. Reports from other sections of the state and North and South Dakota told of snow, with temperatures around freezing. j BOARD OF TRADE PLANS GALA DAY FOR SHAD BAKE Entertainment Committee for An nual Outing at Quan tico Named. Plenty of entertainment for the Washington Board of Trade on its annual shad hake, which will be giv en this year at the Marine base at , Quantico, Va., is T promised by th* entertainment committee, headed members arc go in* down by steamer, the en tertainment com mlttee has the ex of providing six ■ ■ •; r«-.« > * h v a the boat. The Washington Dr. Fntah t. Otksss. Canoe Club Jaxz Orchestra will furnish the music during the onting. Dinner will be served by the marines as soon as the vessel arrive*, and then there will be an serial circa*, followed by an athletic program, and more entertainment on the return trip. During the voyage down the river the steamer will be escorted by three seaplanes from the marine air base. The entertainment committee's per sonnel wan announce! today as fol lows: Dr. Frank E. Gibson, chairman; T. Brooke Amiss, vice chairman; Warren Cochran, vice chairman; Fred Ailen, vice chairman: C. B. Asher, Walter B. Avery, M M. Barnard. Frank F. Bell. Jr., P. H. Birch. Harry M. Bralove, Thomas Raymond Burr. William D. Clarke, Roy W. Crampton. V. B. Deyber, Fred Drew, William John Bynon, William G. Galllher, W. W. George*, Chris J. Gockeler, J. C. Hard ing, Dee I<. Herrel. George W. Hngpely, Richard W. Hynson, Robert J. .%nee, James T. Kenyon. Harry A Kite. B. K. McCloeky, Earl M. Mackin tosh. Avon M. Nevlos, Hubert Newsom. R. K. Otterback, Cleveland Kinker, William C. Wedding, Roger J. White ford, John R. Wrlglp. GRAND JURY SEEKS TO FORCE SON OF DOHENY TO TESTIFY ■ Continued from First Page.) in the method aforesaid, one Edward It Doheny, Jr., having been duly sum moned to appear and testify on be half of the United States before the grand jury aforesaid, and having been_*ummoney by process dnly and personally served by the United States marshal of the Southern District of Caiifornia in the city of Dos Angeles, on or about the second day of April, 1924. appeared before the grand Jury aforesaid. “And thereupon in substance the following proceedings were had: "Present: The grand Jury, Hen. Peyton Gordon, United States At torney for the District of Columbia, Hon. ALLee Pome re ne and Hon. Owen J. Roberts, special assistants to the Attorney General of the United States. Proceedings Are Cited. "Edward D. Doheny, Jr., was called and was sworn by the foreman of the grand jury, whereupon the following took place: ‘ Special assistant to the Attorney General, Mr. Roberts; ‘What is your name?* ’’ " ‘A. Edward I* Doheny, Jr.’ ** ‘Q- Where do you reside?’ “ XA Dos, Angeles, Calif.’ “ ‘Q. How old are you?’ "A. Thirty years and six months.’ “ ’Q. Will you tell us about the transaction you had with Albert B. Fall on or about November 30, 1921?’ “A. I am sorry, sir, but I came before this committee in answer to a subpoena in a proceeding in which it is or may be alleged that my father, or myself, or a company In which we are interested, may be made defend ants. Neither my father nor myself, nor the company in which we are interested have been guilty of any wrongdoing or transgression* against the law. My father has made certain statements which have been made the basis of certain charges against him. While I assert that nothing which I might say would be evidence of any wrongdoing on my part, I realize that any evidence that I might give or any testimony I might give might be used against me. I must, therefore, decline to answer that question on the advice of my attorney, on the ground that what I would say might tend to in criminate me. With all due respect to tb» jury and to the counsel for the government, I claim my privilege against self-crimination. Prosecution Not 1 1 traded. ” 'Q. While you are thus refusing to testify on the ground that anything you would say might tend to in criminate you, and are, therefore, claiming your constitutional privi lege, do you not have in mind that before you came in to the grand Jury you and your counsel were both as sured that counsel representing the government had no thought that you had been guilty of any criminal -mis conduct, and that there was no pur pose or intention on their part to at tempt any criminal proceedings against you personally?’ “ ‘A. Yes, I have In mind that the counsel for the government gave to me and my counsel, Frank J. Hogan, those assurances. lam sorry, sir. but I must adhere to ray original position and refuse to testify for the reasons and on the grounds stated,’ "And the grand jurors aforesaid, though mindful of the obligations of -secrecy Imposed upon them by law in the discharge of their duty, are nevertheless compelled to ask that this honorable court forthwith Issue a rule against the said Edward D. Doheny, Jr., that it may be by the court determined whether or not the said Edward D. Doheny, Jr., shall answer the questions propounded to him as above set forth, and for such other action as the court may deem legal and proper In the premises.” LANDSLIDE BURIES 14. Mexican Village Near Jalapa De serted by Residents. VERA CRUZ. May 9.—Fourteen persons were burled under a huge landslide in the village of Misaatla, near Jalapa, yesterday, according to reports received here. The slide oc curred on a steep hill, known as El Pilon, and Is believed to have been due to the effects of the earthquake which occured a few days ago. Many persons are leaving Misantla, fearful that other slides will occur. S_ HOUSE MEMBER DEFEATED Representative Moores, Indiana, Tails in Primary by 3,000. INDIANAPODIS, Ind., May 9.—Mer rill Moores, ■ Republican representa tive from the seventh Indiana dis trict, which comprises N Indianapolis and* Marion County, apparently is defeated for renomination by Ralph Ralph E. Updike. Returns from 196 of the 206 precincts In the district to day gave Updike 27,643 and Moores, 24,122. Moores is the second Republican Representative to fail of renomina tlon, Lohls W. Fairfield being defeat ed in the twelfth district by David Hogg. * Crow Yesterday's 9:30 Sdltias of Th- SUr HOUSE VOTES TO END CLASSIFYING BOARD Lehlbach Bill Traniffiring Duties to Civil Service Passed, 172 to 26. MEETS STIFF OPPOSITION Proposal to Create New Govern meat Agency Is Defeated. By a vote of 172 to 26 the Hou yesterday afternoon passed the Dehi bach bill abolishing the personnel da-- - sifleation board and transferring its duties to the Civil Service Commis sion. The measure now goes to th- Senate. This action was taken after tv attempts had been made by Represen tative Toip D. McKeown, Deraocra* Oklahoma, and Representative Martin B. Madden, Republican, Illinois, chair man of the Hoaae appropriations com mittee, to amend the bill by substi tuting for the personnel classifies - tlon board a board of three members not now In the government service and not now residents of the District of Columbia, to be appointed by the President. The McKeown amendment would authorise the Preuident to hi the salary and the Madden amn,c ment would have fixed the salarv ~f the three board members at s7,3o''. Both were defeated. Vp Bader .Special Rale. The legislation was brought up under a special rule, which wa* adopted by a vote of 387 to Jl. Representative Blanton had pr<*. vlooaly protested that Congress ough> not to entertain legislation to abo'ieb the board, which was already func tioning. Chairman Dehlbach of the civ. I service committee explained that pre vious to the passage of the reclass ification act there was no co-crd naton or co-operation and no elemer • of Justice In the fixing of salaries. He pointed out that Congress for seme time was cognizant of the fact that the salary and wage rate fo positions Involving like duties arti responsibilities and calling for th same qualifications showed wide variations and marked Inequalities He told the House that the salary and wage rate for positions of th» same class were different for differ ent departments and in independent establishments, and that for man: classes the salaries were inadequate It was to remedy that situation tha> the classification act was passed au thorizing and directing the organ zation of a personnel classificat.or. board. . . „ , In spite of provision* of the lav Representative Dehlbach said, th board refused to classify and sn out the provisions of the law. Cites Beard Tesihwssy. He Insisted that the board did no. subdivide the grades into classes anti furnished no titles and definitions, published no statements as required by the act for the guidance of de partmental beads, and, in fact, made no classification at all. "As a result we have employes do ing like work receiving different sal aries,’’ Representative Dehlbach said. "The purposes of th* act are being defeated by the refusal of the board to perform its work. The question is whether the expressed mandates of Congress are to be carried out or disregarded. The board willfully and deliberately set aside the pro vision of the law. "Each member of the personnel clas sification board testified at the hear ing held by your committee that the board is not functioning properly and urged that it should be abolished," said Representative Dehlbach, in con - clusioin. Others, in addition to Mr. Blanton who spoke in opposition were Repre sentative Colton. Republican, Utah Representative McKeown, Democrat Oklahoma; Representative Jcarpi Byrns, Democrat, Tennessee, ranking majority member on the House appro priations committee, and Representative Martin B. Madden, Republican, Illinois chairman of the appropriations com mittee; Representative Black, Demo crat, Texas; Representative Wood, Re publican. Indiana, and Representative Chlndblom. Republican. tUinoie. Others who spoke in favor of the Dehlbach bill were Representative Daman Jeffers. Democrat, Alabama, and Representative Sellers. Democrat, New York. From Yesterday 1 * 5:30 BfiOoe of T*e«tar ARNSTEIN AND COHN SURRENDER IN COURT End Long Fight Here Today. Facc Two-Year Bond Bob bery Sentence. Jules, alias Nicky, Arnstein and Isa dora, alias Nick, Cohn, both of New York, late yesterday afternoon ended their three-year fight to evade a {sen tence of two years in the penitential-' which was imposed on them in the spring of 1921 by Justice Frederick 1.. Siddons of the District Supreme Court The men, with Norman S. Bowles Washington lawyer, and David W. Sulli van and Wllen W. Easterdav, stock brokers of New York and Wasting - ton, were convicted of conspirao to bring into the District of Columbia so - hypothecation with local banks a por tion of the $5,000,000 Wall street securi ties stolen from messengers of brokers in the metropolis. All five are no" in the District Jail awaiting transporta tion to a federal penitentiary. Arnstein and Cohn also have a fine of $10.00 ( ' to pay, and Bowles has a fine of $5 000 Surrenders to Hits. Neatly dressed. Arnstein and Cohn entered Criminal Court 1 and sur rendered to Justice William Hit*, who was presiding- William E. Deahy who prosecuted the case with United States Attorney Gordon, called the attention of the court of the refusal of the United States Supreme Court to review the action of the 1 Coun of Appeals affirming the conviction of the men, ana asked that they be per mitted to serve their sentences. Arastein recognized some of the court officials and newspaper men who covered his trial, and greeted them with a smile. Mr. Deahy told the court that Arastein Is In poor health, and asked the Justice to co operate in having him sent to prison at once, preferably to Atlanta, Ga The court remarked that the place of confinement Is optional with the De partment of Justice. Justice Hitz last Monday forfeited th< bond of SIO,OOO each when Arnstein ard Cohn failed to appear for commitment. It is expected the court will be asked tomorrow to relieve George W. Ray the bondsman, from the penalty of the forfeitures. Neither Cohn nor Arnstein was will ing to offer any explanation of where they had been when newspaper men questioned them. Jordan to Be Harnessed. NEW YORK, May 9.—The Jordan River, in Palestine, is to be harnessed for the creation of electric power and light. Work will start this year, » according to an announcement by f the Palestine development council. “