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H. 0. L C. MENACED BY POK AGAIN Efficiency Threatened by Pending Amendment in Congress. BY DAVID LAWRENCE. Politics—the cancer that is eating into the worth-while things in the New Deal and rapidly bringing them to the level of the Old Deal—has reared its selfishness once more in an attempt to break down the efficiency of the Home Owners' Loan Corp. Nothing could be more important than integrity and honesty in the management of a governmental agency which refinances billions of dollars in home mortgages and collects many millions of dollars a month in interest. If politics gets the upper hand the officials in charge will?; find them selves pressed by local poUticil bosses to grant favors to their frienas, either in giving them preferential treatment in the handling of their applications lor mortgage loans or in making easier terms in collecting interest. Amendment Pending. But, unless public opinion says no, there will be adopted by the Senate and House very soon an amendment which on its face looks innocent, but which is a bold-faced attempt to put the Home Owners' Loan Corp. into the hands of the politicians, notwith standing the courageous fight made by Chairman John H. Fahey to con duct the affairs of his institution on a business-like basis. The amendment reads as follows: "No person shall be appointed or retained as an officer, employe, agent, or attorney, in any regional or State office of the corporation who was. at the date of the establishment of such office, not a resident of the region or State served by such office. The amendatory provision shall go into effect within 90 days after the date of the enactment thereof." On its face this appears as a simple effort to give the personnel in local areas a chance at the jobs in the regional and branch offices. But the facts are that 100 per cent of the employes of the State offices of the H. O. L. C. and about 90 per cent of the employes of the regional offices, including all executives and admin istrative officers, are actually from the States or regions where they now ârp pmnlnvwi Aimed at Managers. What, then, is the aim of the amendment? The answer is that out Of 11 regional managers, all but 2 are from areas other than those in Which they are serving. This was deliberately done by the management In order to eliminate all possibility of local influence or pressure and nearly all of these regional managers were appointed only after they had been trained in the Washington head quarters of the H. O. L. C. For obviously the H. O. L. C. in its effort to decentralise and make decisions in the field had to depend on the advice and recommendations of the regional anagers. There is too much at stake follow any other plan. ; So the amendment really is aimed ft the nine regional managers who constitute the heart of the H. O. L. C. Once they are in control of the politicians, the rest of the personnel ■will become political, too. It has been suggested that the H. O. L. C.. rather than lose the services of its nine trained regional managers, would shift them around «ο as to conform to the new require 'ment. but this would seem to mean s complete rearrangement and pos sible demoralization of the work of the offices at a time when every effort is being made to accelerate action on applications and to handle the interest-collecting problem efficiently. H. O. L. C. Fortunate in Two. In the two regions where the pres ent managers come from the same areas in which they operate, the H. O. L. C. has been fortunate in getting men of independent means and great ability, who are giving their time to 'the public service. ' The sifting of 10 per cent of the 'employes of the regional offices who •were not originally residents of the •regions where they now are employed .would mean considerable confusion and probably the discharge of many technically trained employes. Senator Norris of Nebraska, inde pendent Republican, warned his fel low Senators when the Home Owners' Loan Corporation law was first before Congress that it must not be made the foot ball of the patronage hunters, but his words were of little avail. Mr. Norris has high ideals of government: he believes in Government control of many activties, but he has been consistent in arguing for a non-poli tical public service. The reason, however, why the gov ernmental control idea usually falls to the ground is that the politically minded in Congress regard the new officials and bureaus as their own par ticular property and as the oppor tunity for the award of special privi lege. Congress thus has another test of the virtue of the New Deal, and so has President Roosevelt in the amend ment pending now, which would de stroy the morale and the efficiency of one of the few governmental agencies that seems to have been run on a businesslike basis, free from party politics. (Copyright. 1D35.) (Congress in Brief Êt the Associated Press. TODAY. Senate. ■_ In recess. '"Interstate Commerce Subcommittee resumes consideration of Guffey coal Ml. Munitions Committee hears William 8. Shearer in denial he threatened to scandalize shipbuilding industry. Hob»e. .Interstate Commerce Committee Questions witnesses on holding com tftfi y regulations. . Agriculture Committee holds hear ing on A. A. A. amendments. -Banking Committee continues hear big on omnibus banking measure. - Ways and Means Committee studies toeial security legislation. --Indian Subcommittee works on ad ministration Indian bill. YESTERDAY. Senate. Ordered investigation of N. R. A. by '£ftiance Committee. ν Elections Committee named subcom Sttee to study challenge of Cutting ction. Territories Committee voted to in feistigate the administration of the Ytrgin Islands. Hnuse. ."!Ways and Means Committee dis eased constitutionality of social se curity bill. •Judiciary Committee approved meas Xtèes te permit States to enter into compacte to obtain uniform labor laws 8J)d to allow codification of executive fdert. "ÎPoet Office Subcommittee approved MQ to increase rates for airmail car· riere. 4 What's What Behind News In Capital Industries and Labor Advance—Nervous Talk Resumed. BY PAUL MALLON. The best balanced business picture since the depression started is pre sented by the chart this month of official Government figures. Industry has surged forward steadily since last September, During the last 60 days it has maintained the level of about 90aper cent of normal operations. This has brought factory employment up to 81 per cent of normal and wages to 67 per cent, leaving wages, however, still somewhat out of line. Retail business has remained about the same during this five month industrial surge, operating at about 75 per cent of normal. The railroads are still lagging around 65 per cent of normal, but are showing improvement. The general price level has been mount ing for five months, but onlp be cause foods affected by the drought are soaking temporarily. Other prices have not shown much change. All this you may see by a glance at the following chart. It contains figures compiled by various Govern ment and private agencies, brought up to date by expert private estimates for February. Kress Heiress Is Married Copyright, A. P. Wirephoto. Mr. and Mrs. Charles Wesley Frame after their marriage yesterday at the Park Lane Hotel, in New York. The bride is the former Miss Rosalind Kress, daughter of the Kress Chain Stores' owner. She is 24 and Frame is 28. They are motoring to Miami. Each figure (except prices) is based on the 1923-25 averages as 100. All figures except pay rolls are adjusted for seasonal variations so that they accurately reflect where we stand without regard to seasonal trends. Industrials Easing l'p. Behind this bright picture Is the i fact that certain industrial lines have been easing up slightly during the last two weeks of February. This is noticeable particularly in steel, but not in industry generally. At the same time there has been a renewal of private talk among busi ness men about uncertainty. This time it is based on Congress. The in definiteness of N. R. A reorganization, the latest bank bill, the rail bills, the holding company legislation and the possibility of further tax proposals arc more or less responsible. This feeling of uncertainty may not be entirely justified, but it exists. Whether it will have any important effect on March and April business involves a guess on which competent observers are divided. Autos Leveling Off. The reason steel dropped was be cause automobile production is leveling off. Therein you have the best exam ple of why it is difficult to gauge the immediate prospects of Industry. Steel production reached a maxi mum of 55 per cent three weeks ago. but it will soon be back around 45 per cent. Automobile production increased by fewer than 500 cars for the week ended February 23. Yet those inside the automobile trade will tell you that production for the first quarter of the year will be around 1.000,000 cars. It was 293,000 for January, probably 350.000 for February and need be only 350.000 for March to approximate 1,000,000 for the quarter. After that, motor car output will depend entirely on sales. No one can hazard even a good guess as to what these will be. The best indication that industry generally is holding up well lies in electric pou er consumption data. It has varied less than half a point during the last four u:eeks. An other hint of underlying strength is the car loading figure, which has been showing slightly more than seasonal improvement lately. Building Very Weak. The one almost hopeless factor is building. After the first brief flush of P. W. A. activity a year ago, build ing has failed to show anything but slight occasional flurries, which never developed into a trend. The latest favorable flurry is in residential build ing. January contracts were up to $22,400.000. a 50 per cent improvement over December. The amount, of course, is insignificant. P. W. A. contracts awarded by Sec retary Ickes in January amounted to $36,000.000. which was about one third of the volume in that month last year. There will be hope for building after the pending work-relief bill passes, but not before. Three Prices Near 1926. The prices of only three commodi ties are relatively higher than farm and food prices now. That is, only the prices of building materials, hides, leather, and metals are nearer the 1926 level. And food prices are still going up. Tlje food price level for the January 12 week was 79.7 and by the February 16 week it was up to 83.1 in the official figures. But for the same weeks, all other prices actually decreased slightly, from 71 to 70.2. All of which Indicates that nature has her own commodity dollar. The table referred to in Mr. Million's rnhi m η fnllnw $20,000,000 Set as Book Value of Joint Account With Brother. By the Associated Press. PITTSBURGH, March 1—More de tails of Andrew W. Mellon's wealth were brought into the records of his $3,089,000 income tax hearing today. Howard M. Johnson, for two decades confidential secretary to the financier. said the book value of a "joint ac count" kept by Andrew Mellon and his brother. R. B. Mellon, was $20,000,000 in 1931—the year the Government claims the banker underpaid his in come lax. Witness IVscribes Holdings. The witness deft'jibed for the Tax Appeal Board the properties owned by this account, which were listed at $8,053,325.66. showing it controlled the $1,200,000 Pittsburgher Hotel, along with numerous other plots of land. The book value on Andrew Mellon's personal holdings after he had trans ferred to his children's holding com panies between $68 000,000 and $100, 000.000 had been placed by Johnson previously at $97,000,000. This in cluded his interest in the joint ac count. Today's testimony was given under ! cross-examination by F. R. Shearer, attorney for the Bureau of Internal Revenue. Witness and Lawyer Clash. Shearer and Frank J. Hogan. Mellon attorney, clashed once over Shearer's reference to the joint account as an "organisation." It is the Government's contention that this joint account actually is a partnership and that certain securities Mellon obtained from it were subject to more income tax than he reported. Among the assets of the joint ac count was a one-half interest in the "J. M. Gufiey Coal." Johnson said this concern held extensive acreage in North-Central West Virginia and had been held for many years. CANADIAN RADIO BOARD LAYS EXPANSION PLAN Construction Program Is Project ed to Give Complete Coast to-Coast Coverage. By the Associated Press. OTTAWA,. Ontario, March 1.—A construction program designed to give the National Radio System complete coverage from coast to coast is con templated by the Canadian Radio Commission. The program, if ratified, would en tail erection of new stations or in creasing the power of existing sta tions in Nova Scotia, Montreal and Toronto districts to cover Northern Ontario, Saskatchewan and British Columbia. Action on the plans has been de layed, it was said, owing to a lack of funds. The program could be carried out, it is claimed, for some thing under $1,000,000. With it would be associated a plan to extend hours of national broadcasting. Protection for Children. SACRAMENTO, Calif.. March 1 OP). —Children born out of wedlock would be able to conceal that fact in the event their parents became legally married later, under a bill before the State Legislature. The bill provides for amendment of the birth certificate to delete all record of illegitimacy when the parents wed. k <1926 equals 100.) Pactyem- might Dcot «tore BW*. Whoiwaie ployment. Pay rolls, loadings. »aiei. contract·, prices. 104.8 109.1 106 111 117 954 91.5 88.7 92 102 92 86.0 77.4 67.5 75 92 63 73.0 64.2 45.3 56 69 28 64.3 Industrial Tear production 1929 average 119 1930 average 96 1931 average 81 1932 average 64 1933— January 65 February 63 March 60 1934— January 78 February 81 March 85 September 71 October 73 November 74 December 85 1935— January 90 February (est).. 90 61.4 39.5 56 61.7 40.2 54 58.9 Ϊ7.Γ 50 75.1 54.0 64 78.4 60.6 64 81.0 64.8 66 73.9 57.9 59 76.7 61.0 57 76.7 59.5 59 79.0 63.2 64 80.4 64.1 64 81.0 67.0 65 (Copyright. 1935.) 60 22 61.0 €0 19 59.8 57 14 60.2 68 49 72.2 71 4 736 77 33 73.7 75 29 77.6 74 31 76.5 72 31 76.5 76 83 76.9 72 30 78.8 74 30 79.4 Retired Manufacturer Dies. WINSTED. Conn., March 1 (JP).— John Bateman Adams, 67, a retired manufacturer and nsitlve of Rich mond. Ind., died Wednesday. He had lived here for the past 37 years and was president of the Franklin Moore Co., bolt manufacturers, until the «»»np»ny llyildatfd I 6,000 Babbits Caught. , Six thousand rabbits were caught in a recent drive in the Cummins dis trict of Australia. *·' Coffee Crop It Huge. Nicaragua expects its present coffee crop to weigh over 1,000,000 pounds. MISE TOWNS LOOTED BY REDS Wholesale Executions Mark Flight of 25,000 Be fore Chiang. (Copyright, 1»36, by th« Associated Press) j SI AN, Shensi, China, March 1.—A reign of terror, accompanied by whole sale executions and looting of towns, marked the passage of 25.000 Com munist troops through Southwest Shensi Province during the last fort night, missionary reports disclosed today. The Reds poured into the district from Northern 6sechwan Province, whence they were driven by Gen. Chiang Kai Shek s Nationalist gov ernment forces. Some 25 missionaries abandoned their posts to escape the menace and fled through ice and snow covered mountains in quest of sanctuary. Only two of the fugitives. Miss R. V. Thompson of Nevada. Iowa, and Miss Aima R. Artibey of Chicago, were believed to be Americans. A portion of the scattered Christian workers, many of whom carried their children in their arms as they aban doned their stations, has been ac counted for. About one-half their number was reported to have reached Pengs Lang, to the westward, and An kang. in Southeastern Shensi. A group of missionaries left here to enter the mountains in search of their missing associates, while Shao Li Tzu. provincial governor of Shensi, ordered Chinese authorities to afford them every assistance. Despite the period of chaos in Southwest Shensi, Chinese authorities here contend the Nationalist govern ment will soon exterminate the Red Invaders. TWO AMERICANS SAFE. PEIPING, Chin*. March 1 OP).— The United States Legation was in formed today that the two missing American missionaries. Miss R. V. Thompson of Nevada, Iowa, and Alma R. Artibey of Chicago, had arrived safely at Fengsiang, 90 miles west of Sian. DOUBLE CANDIDACY BY LONG POSSIBLE Observers Say He Could Bun for Senate After Gov ernorship. By the Associated Press. BATON ROUGE, La , March 1 — Political Louisiana speculated today over Senator Huey P. Long's an nouncement that he would be a candi date for Governor in January, 1936. As the special session of the Legis lature prepared to speed 23 new bills an to final passage tomorrow, ending another of the momentous five-day gatherings of law makers, conversa tion In State House circles centered around the Senator's announced candidacy. The gubernatorial primary is set for January, 1936. the same date as the primary for the United States Senate seat Long now holds. Some observers thought it unlikely that Long would wish to relinquish his seat in the Senate, particularly in view of his presidential aspirations. The senatorial election formerly was scheduled for the Fall of 1936, but by a recent law It was moved up to Jan uary. It was said, however, that It would be an easy matter for Long to set the Senate date back again so that he could run for Governor in January and then, if he wished, for Senator later in the year. The House yesterday readily passed all of Long'· measures and sent them aver to the Senate-whlch promptly re ferred them to its Finance Committee, which in turn immediately reported them favorably· The Senate Is scheduled to receive the approved bills from the committee tonight. WHOLESALE PRICES RISE Increase Raises Index to 79.β Per Cent of 1926 Average. A continued rise in wholesale com modity prices last week was noted yesterday by the Labor Department Prices during the week were 79.6 per cent of their 1926 average, compared with 79.4 the previous week, 73.4 the corresponding week last year and 59.7 the corresponding week in 1933. The food index number was 83.2, compared with 83.1 the previous week and 67 the correapoodlng week lut year. » POLITICAL TRENDS CLASH IN MIDWEST President Exceedingly Pop ular, but Many of His Policies Are Disliked. Thii it the fifth and final article of a series contrasting conditions in the Northern Statet of the Mid vest as Mr. Roosevelt of the edi torial staff of the New York Her ald Tribune found them on a re cent tour and in the Autumn of 1933. . BY NICHOLAS ROOSEVELT. Politically the Middle West is full of apparent contradictions. President Roosevelt is overwhelm ingly popular. But many of his poli· cies are unpopular. The radicals are theoretically strong. But they are divided as to leaders and objectives. In Minnesota Oov. Floyd Olsen, who ran last Autumn on an ultra-radical State-socialistic platform, is losing ground—due in part to the strikes last year, which he had to put down with force. In Wisconsin the La Follettes are popular, except among conserva tive business men. Everywhere Father Coughlin is regarded as an oracle. Even the redoubtable Huey is begin ning to arouse interest—apparently for the reason that of all the alluring economic gold bricks yet offered to the American people none has been so ingeniously designed to appeal to the economically uninformed as his suggestion that the topmost limit of personal fortunes be set at (3,000,000, but that everyone be assured of a minimum of at least $15,000. This knocks Townsendism and the forced distribution of wealth into a cocked hat. Conservatism Coming to Fore. But even if the prophets of radical ism still have their millions of fol lowers. there are signs that the basic conservatism of the land-owning peo ple is again coming to the fore. I had an interesting discussion on this point with one of the local leaders of the Progressive machine in Northern Wisconsin. He was a small business man who had never been in politics. He said that he had come to the con clusion that the salvation of America lay in the active participation of the small town business men and farmers in the political life of the country. He saw on the one hand the danger from the great corporate interests and on the other the dangers of State socialism. The only defense against these dangers was, in his mind, the organization of the men and women of small property to protect their own interests against these two threats. With this as an appeal he had built up a machine which not only had been instrumental in selecting and electing better types of local political leaders, but which was also carrying on a process of political education through bi-weekly meetings in differ ent parts of the State to discuss cur rent political and economic problems of interest to the local community. Feeting Widespread. The feeling expressed and trans lated into action by this man is wide spread throughout the country. It is basically a conservative movement, even though It may prefer radical candidates like the La Follettes to the representatives of the old parties. These people, many of whom were for merly Republicans, and would be glad to support a moderate, conservative party, have the feeling that the pres ent Republican party is the party not of moderate conservatism but of re action. They are particularly dis trustful of its Eastern leaders—so much so that for an outsider merely to mention such names as Henry Fletcher. Ogden Mills or Dave Reed is to risk unpopularity. Vandenberg of Michigan is regarded as more "rea sonable." and a reorganization under his leadership might well meet with a larger favorable response, but the Middle Western Republicans demand Western leadership, not Eastern; pro gressive, not reactionary. Finding Leaders Is ProbJem. The great problem of the Repub lican party In the Middle West, as elsewhere, is to find men to take the lead. The Issues will ultimately be come clearer as the New Deal be gins to crystallize and it will then be easier for the Republican party to create an effective opposition. For the present, however, opinions differ so sharply as to whet the party should stand for that personalities inevitably are very much to the fore. The old familiar leaders are. for the most part, in bad odor. In Wiscon sin and Illinois important groups of younger Republicans are hoping to obtain a larger share in the direction of party affairs. They cannot, how ever, dispense with or completely sup plant the old leaders. But they feel that most of these leaders have been so frequently and effectively de nounced as blind and reactionary during the last few years that they have come to be regarded as "dam aged goods." and as such must be gradually replaced by other men. Democrats Seise Opportunity. The Democratic party, of course. Is making the most of its opportunity. It has captured States, counties and towns in districts which for genera tions had been solidly Republican. Mr. Parley is not a man to let the grass grow under his feet. As a result he has extended the Tammany system of organization and assistance through· out all of these Republican strong holds. His task has been facilitated by the tendency of business leaders to support the successful Democratic machine instead .of the Republican party, to which, while it was in power, they usually contributed liberally. The Republicans are thus not only with out leaders, but also without funds, and, into the bargain, are believed to be the party of reaction. Roosevelt Insures Supremacy. The unknown factor in this situa tion is how strong the new Demo cratic machine in the Middle West will be when Franklin Roosevelt is no longer in the picture. So long as he is in the White House his great personal popularity and prestige in sure Democratic supremacy. If he were a man of less political astuteness and personal charm it would be easier to predict bow long it will be before he loses his popularity as completely as did Mr. Hoover. At preseitf this date seems In a dim future. The more things that he does which are unpopular the greater the tendency to exonerate him from all responsibility for his acts. Mr. Roosevelt ie Kill supreme. His magic radio voice can always recall the erring sheep to his fold. His readi ness to discard unpopular advisers and unsuccessful policies keeps always a little ahead of popular criticism. The people have faith in Franklin Roose velt. And that faith is still ""«hpfcrn Hoarding of Goods Ended. Hoarding of consumption goods in Germany has been almost completely •topped, » I Roosevelt Enters Last Half Of Term in Confident Spirit Healthy and Cheerful, President Leads Staff Through Maze of Work. Routine Well Ordered. BY J. RUSSELL YOUNG. Franklin Roosevelt Is entering upon the last half of his administration, Just as confident and hopeful as be was on that historic March 4, two years ago. when he took office, despite the obstacles and reverses he has en countered recently. He has lost none of his good na ture or his ability to joke and laugh even when things are not breaking so well. This side of the President's nature is void of sham. He is just as ready with his laughter and story telling behind the scenes as he Is In public. Of course. Mr. Roosevelt has his serious moments and many times during his days of toil the smile fades away, replaced by a frown, but this is not for long. He Is gifted with an uncanny ability to cast off his wor ries and cares, and from all outward appearances to have completely re moved from his mind anything of a depressing or serious nature. To those who are close to him this character istic is one of his greatest assets. Condition Is Excellent. Were it not for this ability to transcend troublesome matters threat ening to overwhelm him. he would lack the splendid physical and mental condition he retains today as he en ters the home stretch of his epoch making term as Chief Executive. Fortunately for one of his nature, he is surrounded by a group of Inti mate associates who possess somewhat the same characteristics of "the boss." Probably this is not a coincidence. No doubt these men. who form the presidential secretariat, were selected because of this, as well as other quali cations. Although Lewis MeHenry Howe, the principal secretary, Is 10 years the President's senior, and does not enjoy robust health, he is gifted with a rare sense of humor. His dry and keen wit affords the President. many a hearty laugh in moments when there might be cause to feel blue and de jected. Col. Man-in Hunter Mclntyre, four years the President's senior, and Stephen T. Early, who is in his late 40s. these being the other two members of the secretariat, are fun-loving and ready with a laugh. It is agreed by each in this inter esting little group that were it not for their more jovial moods, they scarcely could have endured the strain this long. President Inspires Aides. Although everybody around the White Jlouse has been working under a strain, no one seems to mind. The President sees to that. He knows how to keep them, as well as himself, in a good humor. The work of the secretaries is heavier than ever before, the execu tive staff is more than twice as large as was President Hoover's, and the work of Rudolph Porster. the execu tive secretary, and that of Maurice ι Latta. his assistant, has doubled, but the President even has them smiling as they ML The mail is three times as great as it was during the previous adminis tration, but Ira Smith, the chief of the mail division, can smile, as can Capt Clarence Ingling. head of the file room, w hich has broken an White House records. ! WMPt ζ3 ; MOUSE } In other words, the good humor, the laughter, the cheerfulness of the President, premeates the entire place. It is well, too. because there have been some very dark periods, and the work ing hours have been long, as well as trying. President Sound Sleeper. Mr. Roosevelt has stood it all re markably welL The strain has left fev marks upon him. He may have an extra wrinkle or two. A few more gray hairs are noticeable, but if any thing his bodily health is better today than when he took over the reins of government. Dr. Ross Mclntire, the White House physician, who keeps a constant eye on the President, said only a few days ago that Mr. Roose velt is in perfect health. Besides ι having the faculty to jest under all conditions, he has no trouble sleep ing. With him it is not a question of being able to sleep, but one of get ting to bed. Seldom, if ever, does he turn in before 11 o'clock. Gen erally it is near midnight, frequently later. When his head hits the pillow he begins his sleep and wakes up re freshed and rested. up around 7 or 8, he does not actually get out of bed much before 10 or 11. He has mastered the art of doing a good job of work in bed. After his breakfast has been served, he reads his mail, and frequently does some dic tating and conferring with associates before getting dressed and going to his desk in the executive office. It is before he rises that the Presi dent has his first conference of the day with his secretaries. With Col. Mclntyre he works out at this early hour a schedule of engagements of the day. With Steve Early he goes 1 ft over the news of the day and con siders what may be discussed with While House correspondents at his daily press conference. With Col. Howe each morning he goes over the political situation, at least to the ex tent of discussing strategy in dealings with Capitol Hill. Sees Associates in Bed Room. Besides conferring with his secre taries. the President frequently sees members of his Cabinet and other key associates of the New Deal while in his bed room. Postmaster General Jim Parley seldom misses seeing the "Boss" each morning before the lat ter leaves hie bed room. Mrs. Roose velt and other members of the family generally come in during this period to say "Good morning." This includes the grandchildren, as well as the grown-ups. Mr. Roosevelt has fre quently said that a 10-mlnute romp with these lively youngsters starts his day off just right. When Mr. Roosevelt gets to the ex- | ecutive office, which is generally around 11 o'clock, he remains there ; until dark. Unlike his predecssors, he ! doej not return to the White House mansion for luncheon. At 1 o'clock in the afternoon he has a desk lunch served in his office. Always he has one or two friends or associates as guests, and often takes this occasion to hold a conference without loss of time. The President's daily office en gagement list is usually made out for calls of not more than 15 minutes' duration. Sometimes he can dispose of a caller in five minutes, but he is more apt to run over the 15-minute period, thereby delaying other en gagements. Usually when the Presi dent leaves his office and starts back for the White House, which is gen erally about 6 o'clock, he takes a swim in the specially-built pool. This is his principal exercise, although occasionally he breaks his daily rou tine by going for an automobile drive in the afternoon. Reste Before Dinner. Then follows a brief rest in his study on the second floor before mak ing ready for dinner, usually held at 7;45, after which there is an hour or two of motion pictures or music. Usually there are guests for dinner. Along about 10 o'clock the President goes to his study. If he has visitors with whom he wishes to talk business he will sit them in easy chairs in front of the open fire. If not. he will sit at the desk, pore over papers, write, or dictate. Mr. Roosevelt is as happy as a schoolboy if there is nothing pressing and he can nestle deep in a big chair in the study, read a good book or maga zine, or perhaps review his stamp collection. He has been known to smilingly remark when indisposed for a day or two with a cold: "Now I can get in some good reading and look over my stamps." But while Mr. Roosevelt and his group of smiling, loyal assistants al ways appear to be happy, and can always take time to tell or hear a good story, they have the faculty of working hard and noiselessly—that is. to get their work done without much fuss and without those about them knowing it is being done. HOAX THEORY OUT IN MURDER PROBE London Police Begin Search for Remainder of Corpse in Trunk Mystery. By the Associated Press. LONDON. March 1—Scotland Yard today discarded the hoax theory re garding the human legs found last week ta a train in Waterloo station, deciding they had a murder mystery to solve. An exhaustive check of hospitals, morgues and medical schools showed that no bodies or parts of bodies were missing. A large force of detectives was as signed to make a minute search of the many parts in the London area in the belief that the torso of the man's body from which the legs were chopped may be hidden there. The hue and cry arising from the mysterious dismemberment killings which started with the Brighton trunk crimes of last Summer will be brought formally to the attention of the House of Commons next Thursday. Japanese Shakespearean Dies. ΤΟΚΙΟ. March 1 G4>>.—Shoyo Tsu bouchi. noted scholar who translated Shakespeare's entire works into Jap anese, died yesterday of pneumonia. 1 Price $1 at The Evening Star Business Office, or by mail, postpaid « ©lie Hunting &iar Offert Its Reader» This Worth-While BOOK It explains the permanent departments of the Federal Government and the Alphabet Bureaus of the New Deal. Every American should read it. Order today. 1 Order Form j Name I } Street I I City State ι New Policy in Dealing With Congress Believed Indi I cated by Report. By the Associated Press. * 1 Plans are being made )*>J' President Roosevelt to send two separate special messages to Congress raiding for laws to regulate utility holdlr^B œmpanie» and all forms of transportation, ac cording to reports frt°m official quarters. This intention was described as _ further illustration of a'new policy ι adopted by the Preisdent ln dealing) with Congress. Officials said the! President probably would' not send! the menage· urging passfge of the" legislation until after thC congres- ] sional committees, working,°n special, reports regarding the measures, had formulated the bills. Criticism Recalled* The method followed by Μξ Roose velt in the last Congress of Ending special messages and drafts of legis lation to Congress at the same N.me aroused in legislative circles the criti cism that he was relegating CongressV into a "rubber stamp" category. Whether his message on utility holding companies will ask Congress to lay a complete ban against such organizations or will simply suggest a prohibition of certain practices was not made clear. It is on the former principle that congressional groups are looking, however, after conferring with him. Already considerable opposition has been aroused against the Rayburn bill under which such holding companies would be abolished by 1940. Robert E. Healv. a member of the Security and Exchange Commission and former counsel of the Federal Trade Commission, told a House Commerce Committee yesterday he would propose changes ln that section of the bill which calls for holding company abolishment In the next five years. He did not say what changes he would propose other than that they would call for "liberalization" of that section. Views on Transportation. Officials who have followed the transportation proposals during their progress through the several separate committees and Government agencies which studied the problems said they expected the President to send a broad mesage outlining in consider able detail his views on what should be done. While no official would talk for quotation, these experts confidently predicted that the President would ask for the establishment of a trans portation Commission which would have authority over all forms of iand, sea and air carriers. Into the Presidential message they expected to see written portions of the findings of almost half a dozen different agencies which have made long studies of the varying phases oi the whole picture of hauling. SCORES TO TESTIFY IN MATRICIDE CASE 1 Typist on Trial in Death of Mother—Former Employer Also Accused. By the Associated Press. LAUREL, Miss., March 1.—The first of threescore State witnesses was called today in the trial of Ouida Keeton. 30-year-old stenographer, charged with murder in connection with the death of her w idowed mother. W. M. Carter, Laurel business man and former employer of Miss Keeton, also has been indicted in connection with the slaying. The State contends Carter struck Mrs. Keeton over the head with a poker on the night of January 21, carried the body away and dismem bered it It further contends Ouida carried the victim's legs to a spot on a lonely country road where they were uncovered by a hunting dog. A jury of 12 fanners was completed last night after a day during which the defendant, seated in a wheel chair, apparently collapsed. Doctors revived her. Jailed for Shooting Dog. OKLAHOMA City. March 1 Sam Tatum must serve six months in jail because he shot a neighbor s dog. although the dog recovered. Tatum was sentenced yesterday after he had pleaded guilty to charges oi cruelty to animals and carrying concealed weap ons. He said he had a grudge against the neighbor. Deduction for Losses Other Than From Sale or Exchange of Capital Assets. Deductions for losses are divided into four classes, and to be allowed must follow closely the wording of the inrome-tax law. Losses are deductible if incurred (1) in the taxpayer's trade, business or profession: (2) in any transaction entered into for profit; (3) from fires, storms. shipwTeck, or other casualties, or from theft, and (4) from wagering transactions. Business losses result, usually, from the purchase and sale of merchandise. Such losses usually are ascertained by means of inventories, which are re quired whether in the opinion of the commissioner of internal revenue their use is necessary to determine the in come of any taxpayer. The term "transaction entered into for profit" means any kind of busi ness proposition. For example, a tax payer purchases an automobile to be used solely for business purposes, and which is sold at a loss. As this Is a business proposition from start to finish, the loss is deductible. But If he had purchased the automobile to be used for pleasure or convenience, the deduction would not be allowed; it was not a transaction entered into for profit. A loss sustained in the theft of an automobile purchased for pleasure or convenience is deductible, as it falls in class 3. If, because of faulty driving but not of "willful negligence." an au tomobile maintained for pleasure Is damaged, the taxpayer may claim the loes sustained, as it cornea within the meaning of the word "casualty.1* Where damage results from the faulty driving of an automobile with which the automobile of the taxpayer col lides, the loss occasioned the tax payer likewise is deductible. Losses from wagering transactions, whether legal or illegal, are deductible only to the extent of gains from cuch transactions. The excess of such k*»r§ over the gains is not deductible. All losses are deductible only to the extent to which they are not com pensated for by insurance or other wise. f