Evening star. [volume], April 07, 1935, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

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(A3) Means Associated Press.
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_ • ’ 2_1————— pOWt offic>‘- Washington, L>. i.__ _IN WASHINGTON AND SUBURBS ' ELSEWHERE
1 . , ~ I I - ’ 1 """"l 1
ALLIES ARE DIVIDED
ON AIM AT STRESA
AS ITALIANS FIGHT
GENERALACCORD
Rome Annoyed by British
Reluctance for Alliance
and Growing Influence
Upon Attitude of France.
TRIPARTITE PARLEY
TO OPEN THURSDAY
__ I
Italy's Program Expected to In
clude Proposal for 0. K. of Re
armament of Austria. Hungary
and Bulgaria to Assure Inde
pendence—Entente Opposed.
tCopyright, 1935, by the Associated Press )
ROME, April 6.—High Italian quar
ters tonight expressed irritation with
England and doubt of France in con
nection with the tri-power conference
at Stresa which opens Thursday.
At Stresa foreign ministers of the
three nations will consider Germany's
rearmament. European problems aris
ing in its wake and the old problem
of security.
Italy’s Attitude Summed I'p.
Italy's attitude can be summed up
thus:
1. Annoyance won c<ngiana Decause ;
England apparently believes in a con- \
dilatory attitude toward Germany. |
wants a general European accord and
does not want an alliance.
2. Doubt of France because France. 1
believed here to be under England's
influence, is seemingly moving toward ;
the idea of a general accord.
3. Belief that some definite stand,
such as an alliance, must be taken
by the three Western powers with
out regard to any general pact.
The Italian press agrees that
Italy's program at Stresa, which 1
Premier Mussolini is drafting in his 1
"mountain of meditation” at Rocca
Delle Carminade, Forli Province, will i
be:
1. An accord to uphold Austria’s
Independence, in which Germany may
or may not participate.
2. Scrapping of the idea of the j
"Eastern Locarno” treaty, which Ger- ;
many and Poland have rejected,
rather than let it stand in the way
of an agreement in the west.
3. Conclusion of an aerial conven- j
tion, with Germany included if pos- J
Bible, otherwise without her.
4. Provision for a treaty with Ger
many to limit her armaments, which
would be substituted for part of the i
yersailles treaty (that restricting
Germany’s armaments), this instead
of a disarmament treaty.
Return to League.
5. Germany's return to the League
of Nations.
6. Approval of rearmament in Aus
tria. Hungary and Bulgaria.
The proposal that Germany's three
allies in the World War be allowed
to rearm will be accompanied by
the proviso that the action be after
negotiation with other powers.
The treaties of St. Germain. Trianon
and Neuilly limited the armies in
Austria. Hungary and Bulgaria, re- ,
spectively, to 30.000, 35.000 and 20.000
men.
In backing their hopes for more
troops, Mussolini realizes that he will ;
meet opposition. This will come
(Continued on Page 3, Column iji
D0G IS HERO OF FIRE
Endangers Life to Save Three |
and Is Later Rescued.
BLOOMINGTON, 111., April 6 (ffi). \
—A small dog who dashed into a
flaming house and aroused his young ;
master, only to be rescued himself, ;
was the hero of Hey worth, 12 miles
south of here, today.
The dog climbed the stairway to
awaken Creel Barnhill, who then
aroused his aunt and uncle, Mr. and
Mrs. Jack Barnhill. Barnhill jumped
from a second-floor window, obtained i
a ladder and rescued his wife, nephew
and the dog. The house was de
stroyed.
Guide for Readers
Page.
PART ONE—General News, Sports,
Autos, Short Story.
PART TWO—Editorial, Organizations,
Civic Activities, Aviation.
PART THREE—Society, Fashions.
PART FOUR—Special Features.
Amusements. Music, Radio, Books,
Art Notes, Children’s Page, Travel,
Serial Story, Cross-word Puzzle.
PART FIVE—Financial, Classified
Advertising.
French Man Forts
On Frontier With
60,000 Conscripts
Forces Occupy Steel
Concrete Structures
Facing Reich.
By the Associated Press.
PARIS. April 6 —Prance, taking no
chances of a surprise invasion of her
eastern frontier, is manning her con
crete-and-steel defense fortifications
with 60.000 soldiers who today were
ordered held under arms for three
months beyond the normal period of
service.
As part of the program to bring the
treat fortress barrier against Germany
do full strength, trained men are to
ne kept in the ranks, while their
,’ounger brothers, called up under the
tew army program, will get prelim
inary training.
Today's decision, which will keep
the active army in France at a
strength of 350,000 trained men for
Dhe next three months, was reached
it a meeting of the ministerial coun
cil. It came on the heels of an
nouncement yesterday that the army
is proceeding with occupation of the
iefense system, with troops being
moved up from Southern Prance into
eastern danger area.
Ililffl
me n bill
House Leaders Capitulate
to Demands for Stern
Measures.
- !
By the Associated Press.
House leaders capitulated yester
day to insistent demands for stern
taxation provision* in the bill to out
law war-time profiteering and opened
the way for their insertion in the
Senate.
After insisting for three days that
such amendments could not be of
fered, Chairman McSwain of the
Military Committee, author of the
measure, himself proposed and had
accepted a 100 per cent tax on excess
profits.
The amendment provided no basis
for the determination of what should
constitute "excess profits” but it
served to tear down the constitutional
barrier which would have prevented
the Senate from including tax fea
tures.
Senate May Write in Rate.
Under the Constitution all tax pro
posals must originate In the House.
On the basis of the broad amendment
adopted yesterday, the Senate may
now write any tax rates it chooses
into the measure, possibly those pro
posed by its own Munitions Commir
tee.
It has awaiting Introduction a
measure which would limit industrial
profits to 3 per cent of the invest
ment involved. Chairman Nye said
yesterday he was planning to turn
the committee's hearings to the bill
itself this week prior to introduction.
The youthful independents who led
the fight for a stern anti-war profits
pill were jubilant at what they con
sidered a victory, but were not entirely
ready to abandon an effort to re
vommit the measure.
Draft Clause Criticized.
This attempt will be made tomor
row. aimed at the elimination of pro
visions empowering a draft of man
power in the event of war. which led
;ome opponents of the measure to
ienounce it as a “draft bill with a
iugar coating.”
The authorization of conscripted
\rmy was voted into the bill while a
treat display of military strength was
nassed outside the Capitol in prep
iration for the annual Army day
parade, this time commemorating the
ighteenth anniversary of America’s
ieclaration of war against Germany.
Twice the House emphatically re
used to strike from the bill a pro
vision authorizing a conscripted war
Vrmy and then it increased the up
)er limitation on eligible age from 31
o 45 years.
Newspapers Exempted.
The opponents were successful in
writing into the draft provisions
anguage making them applicable to
;he heads of commerce, industry, com
nunications and transporation. On
;he insistence of Representative Ma
verick, Democrat, of Texas newspa
pers and press associations were ex
pmpted.
Chairman Connery, Democrat, of
Massachusetts of the Labor Commit
*e, who Friday forced through an
imendment designed to remove the
possibility of the conscription of labor
(Continued on Page 4, Column 2.)
City May Take Over Plant.
CENTRALIA, HI., April 6 OP).—
Irked by a strike of utility workers
which closed the gas plant here
Wednesday, city officials today dis
cussed plans to take over and operate
the plant until the strike has been
satisfactorily settled.
Nation’s Bank Deposits Gain
$3,000,000,000 in 6 Months
By th« Associated Press.
A (3,000,000,000 increase in bank
deposits in the last six months of 1934
was disclosed yesterday by officials of
the Federal Deposit Insurance Corp.
The corporation gave no explanation
of the increase in deposits, but per
sons familiar with banking and busi
ness trends contended it was due
largely to heavy Government expendi
tures for emergency purposes.
Total bank deposits in the United
States on December 31 were put at
slightly less than $50,000,000,000. The
corporation reported insured deposits
of $38,994,264,000 on that date in the
14,135 Insured banks.
Mortimer J. Fox, chief statistician
of the corporation, estimated deposits
of mutual savings banks, not included
in the report, amounted to $10,000,
000,000, while the 1,060 uninsured
hanks had deposits of $506,000,000, and
private bank deposits were estimated
»t abOUt $400,000,000.
This total of $49,900,264,000 com
^ pared with a total of $46,672,119,0jp
on June 30. last, for all banks, as re
ported by the controller of currency
In his last annual report.
Insured bank deposits rose $1,800,
000,000 and inter-bank deposits leaped
$1,000,000,000.
“An important factor in these in
creases was the year-end accumula
tion of checks deposited, but not yet
collected,” said Leo T. Crowley, chair
man of the corporation.
Total cash and funds due from
banks rose 20 per cent during that
period. Banks increased their hold
ings of Government securities by
$1,400,000,000 or 14 per cent. There
was also an increase in “other securi
ties” held of $260,000,000. or 4 per
cent. As compared with the midyear
figure, loans and discounts were re
duced by $600,000,000, a drop of 4 per
cent.
The statement showed stock pur
chases were made in 5,400 of the in
sured banks by the Reconstruction
Finance Corp. These
amounted to $822,000,000.
FOURTH MAN HELD
IN LYDDANE CASE
Search Ends When Witness
Is “Spotted on
Highway.
PLOT ON DARNESTOWN
WOMAN LAID TO TRIO
Bank Secretary Placed Under
$10,000 Bond on Charges of Con
spiracy on Lives of Two.
The Lyddane case furnished another
surprise development last night when
Harry E. Thomas, for whom police
of three States had been searching,
was apprehended by Washington de
tectives after a brief chase in Balti
more. The officers had gone to the
Maryland city on another case.
Thomas was brought to Rockville
and lodged in jail pending an inves
tigation of several “valuable leads" he
is understood to have given detectives
concerning the strange case. Mont
gomery County officials indicated he
probably would be a State's witness in
the case.
Thomas’ seizure followed a kaleido
scopic chain of events yesterday dur
ing the course of which Mrs. Anne
Lyddane, 29-year-old RockvUle bank
secretary, was formally charged, along
with two alleged male accomplices,
with another conspiracy to murder.
Mrs. Lyddane, previously charged
with a plot to slay her husband,
Francis S. Lyddane of Rockville,
young dispensary bookkeeper, was ac
cused of conspiring to murder Mrs.
Josephine Beall of Darnestown in a
warrant obtained by police yesterday
afternoon.
Named with her were John H.
(Googy) Carnell, bartender in a Rock
ville tavern and erstwhile Washington
policeman, and Edwin J. Davis, with
both of whom, the police say, she
discussed a plan to murder the
Darnestown woman.
Status of Principals.
The status of the principals in the
case, which has stirred Montgomery
County, follows:
Mrs. Lyddane, at liberty under $10.
000 bond on charges of conspiring to
murder ner husband and Mrs. Beall.
Carnell, held In jail in default of
$10,000 bond on a charge of con
spiracy to murder Mrs. Beall.
Davis, held In Jail in default of
$10,000 bond on a charge of con
spiracy to murder Mrs. Beall.
John Boland of Washington, held in
jail in default of $10,000 bond on a
charge of conspiracy to murder Lyd
dane.
wmiam crown, 11, oi Alexandria.
Va., at liberty under *500 bond as a
State witness.
Thomas, held for questioning in
the two cases.
Thomas, driving toward Baltimore
last night, was spied by Detective
Sergt. Van Doren Hughes, who at the
time also was en route to the Mary
land city to assist in the arrest of a
man wanted for questioning in con
nection with a Canadian bank rob
bery.
Hughes trailed Thomas into Balti
more and, driving alongside the latter's
car, ordered him to halt. Thomas at
tempted to speed away, but the police
man forced his car into a fence and
placed him under arrest.
A hitch-hiker, who was with
Thomas at the time, was released.
Brought back to Washington shortly
after midnight, Thomas denied any
knowledge of the Lyddane case and
contended he had never met Mrs.
Lyddane.
Montgomery County Policemen
James S. McAuliffe and Le Roy
Rodgers took Thomas to the Rock
ville Jail for questioning shortly after
the man had been retflrned to the
Capital.
While police were reluctant to dis
cuss the story told by Thomas, they
said that the man admitted knowing
“several of the principals in the case,”
and that he had been “approached”
regarding the bank robbery, which po
lice say was to have taken place as
part of the conspiracy.
Thomas told Montgomery officers
he and a girl friend, who was with him
at the time of his arrest, but who was
released in Baltimore, were “on the
lam,” knowing Thomas was being
sought in connection with the Rock
ville case.
The second conspiracy charge was
placed against Mrs, Lyddane, Carnell
and Davis yesterday afternoon after
Davis had been questioned for sev
eral hours by States Attorney James
(Continued on Page 2, Column 67)
LABOR HELD DRIVING
TOWARD CIVIL WAR
Col. Knabenshue, Fort George
Wright Commandant, Hits
A. F. of L.
By the Associated Press.
SPOKANE, Wash., April 6.—Col.
Frederick G. Knabenshue, comman
dant at Fort George Wright, said in
an Army day address today the
American Federation of Labor is
“driving us into civil war” through
section 7-A of the national recovery
act.
The Colonel, addressing civic lead
ers, Army officers and others at a
luncheon, mentioned the strike at the
Kohler plant at Sheboygan, Wis„
where, he said, “2,000 hoodlums" came
in to wreck the place.
Dealing with the general strike in
San Francisco last Summer, he said
the Californian National Guard queued
it. but “next time they will have to
caU out the Regular Army.”
"There is buUdlng up In this coun
try a dictatorial empire that is under
taking to tell Congress and the.Pres
ident what to do and when to do it,"
he said. “We have heard complaints
about capitalists dictating to the
Government; but capital never thought
of going one-hundredth the distance
toward dictating to the Government
that labor has gone.
“All this leads to but one thing—
civil wax.” £
F3
_ T! |
10 PAY J
— --—
Northeast, Washington and
Potomac Institutions
Announce Plans.
Additional dividends to depositors in
three insolvent banks here were an
nounced last night by Receiver Nor
man R. Hamilton, to be paid from
the Northeast Savings Bank. Wash
ington Savings Bank and Potomac
Savings Bank, in the total sum of
more than $400,000.
Payments of 10 per cent additional
to depositors of both the Northeast
Savings Bank and the Washington
Savings Bank will begin next Wednes
day morning, but a dividend of 12’/2 1
per cent from the Potomac Savings
Bank is not yet ready, and may not
be paid until some time In May.
Notices have been sent out to de
positors of the Northeast Savings j
Bank and the Washington Savings |
Bank to come in beginning Wednes
day. The notices tell depositors in
dividually when to call.
Northeast Dividends.
Northeast dividends will be paid
at the corner of Eighth and H streets
northeast, now the northeast branch .
of the Hamilton National Bank. The
10 per cent paid to these depositors
is on the original deposit, and brings |
to 85 per cent the total dividends
out of this institution.
Depositors of the Washington Sav
ings Bank will be paid at the office of
the old District National Bank. 1406
G street. This also is based on the
original deposit at time of closing,
and brings up to 80 per cent the divi
dends paid from this institution.
Dividend of 12per cent to the
Potomac Savings Bank depositors. ,
while authorized, is not yet ready for
payment. Proofs of claim are in
the course of establishment with
the work well under way, and checks
for the new payment to Potomac j
depositors will be drawn in the next
few weeks, but it probably will oe !
late in May before these payments j
can be made. Depositors will be
notified when payments are ready.
To Avoid Delays.
“In order that all possible delay
may be avoided in the payment of j
Potomac Savings Bank dividends.” i
said Receiver Hamilton, “those de-!
positors of this bank who have not j
yet responded to requests for filing
of their proofs of claim in corrected
form are urged to act at once.”
Total deposits at the time of closing
of the three banks in which divi- j
dends are now being declared were :
as follows: Northeast Savings Bank. 1
$1,070,101.89; W’ashington Savings ‘
Bank. $355,692.17, and Potomac Sav- j
ings Bank. $2,091,165.91.
The total now to be paid to de
positors of the three banks in new
additional dividends amounts to
$403,975.23, as follows: Northeast
Savings Bank, $107,010.18: Washing
ton Savings Bank, $35,569.21. and
Potomac Savings Bank, $261,395.84.
Payment of these dividends was
made possible by loans obtained for
the closed banks by Controller of the
Currency J. F. T. O'Connor from the
Reconstruction Finance Corp.
Cars to Be Marked
“Traffic Violator”
To Halt Fatalities
By the Associated Press.
LOS ANGELES, April 6.—In
an effort to halt increasing traf
fic fatalities, city officials sanc
tioned today a plan to mark the
automobiles of reckless drivers
with a sign “traffic violator.”
Already this year 135 persons
have been killed in motor car
accidents, a marked increase over
the same period of 1934.
TO U. S. IDEALISM
Relief Zeal in War Cited as
Way to Recovery—Let
ters’ “Spawn” Hit.
By the Associated Press.
NEW YORK, April 6.—Former
President Hoover tonight called for
a revival of “the great spirit of ideal
ism" of relief workers in World War
days to solve current unemployment
problems.
Addressing the American Relief
Administration Association at its
eleventh annual reunion. Hoover re
ferred to the N. R. A. as “the first of
the great alphabetical series."
"I'm not sure we are proud of all
the spawn from that series of letters,”
ne said. "But, then, this night is one
of reminiscence about the time when
a work was done of which our country
can always be proud."
Volunteer Aid Held Best.
His experience with the relief ad
ministration in foreign countries dur
ing the World War revealed, he as
serted. that the best service came
from volunteers in the various com
munities who believed in the work.
“If we could revive the great spirit
of idealism that made that work a
success," he said, “we would find the
whole solution of the present."
Smiling, he avowed his California
home is most satisfactory because it
is more than 3.000 miles from Wash
ington. He did not comment further
on national policies.
The association elected Hoover pres
ident. It is composed of men who
served in this country and abroad
in administering relief during the
World War.
COURT ORDERS SPANKING
Youth Prefers It to Jail Term
for Drunkenness.
LOS ANGELES. April 6 (A*).—Fran
cis Nebergall, 20-year-old bellboy,
chose an old-fashioned spanking to
day in preference to a jail term for
drunkenness.
The youth will appear In Municipal
Judge Irving Taplin’s court Monday
to receive a thrashing from his father.
Judge Talpin gave him that alter
native for suspension of sentence.
MELLON ART TAX
RULING IS DENIED
I -
“Irrevocable” Gifts Would
Be Exempt, Helvering
Declares.
By the Associated Press.
The Treasury tossed back to An- '
drew W. Mellon yesterday what may
be the next-to-the-last word in their
| tiff over taxes in connection with the j
latter's projected $50,000,000 national
art gallery here.
Conceding that the Treasury had
reversed itself once, but declaring
there had been public misconception
of its position, Guy T. Helvering, i
commissioner of Internal Revenue,
took this position:
Andrew W. Mellon will be entitled
to claim, and will be granted, the
right to make any and all tax deduc
tions on account of gifts of money or
art for educational or charitable pur- '
poses which are allowable under the
existing laws—if given Irrevocably.
Decision Unannounced.
Helvering asserted, however, that
“neither the Treasury Department
nor the Bureau of Internal Revenue
has announced any ruling or made
any decision that the projected gift
of a national art gallery would not
be exempt from taxation.”
The situation was precipitated by
a report from Pittsburgh that the
Internal Revenue Bureau has notified
Mellon that it did not consider his
projected art gallery a tax-exempt
organization, as it was regarded as
simply a nominal transfer to some
corporation controlled by himself. I
Helvering, explaining how the mix
up came about, said:
"It has been asserted that by a
certain reversal of decision the Treas
ury Department holds that the pro
jected gift to the Nation of $50,000.- j
000 by Andrew Mellon for a national j
gallery of art would not be exempt :
from taxation, and it is stated that I
this ruling places the project in seri- I
ous jeopardy.
Ruling on Trust Only.
"The ruling made by the Bureau of
Internal Revenue and the Treasury
Department has been solely on the
question (1) of the liability to tax
ation of the A. W. Mellon Charitable
and Educational Trust, and (2) as j
to the right of Andrew W. Mellon to
claim deductions from Income for j
taxation purposes on account of do
nations made to the A. W. Mellon
Charitable and Educational Trust.
"As to the first, the bureau has
held, in a letter to Mr. Donald D.
Shepard, a trustee of the A. W. Mel
lon Educational and Charitable Trust,
that (his trust is not a trust organized
and operated exclusively for educa
tional and charitable purposes, as
(Continued on Page 2. Column 1.)
PRESIDENT ASSURES
ADEQUATE DEFENSE
Roosevelt Acknowledges Amy
Day Observance From
Yacht at Sea.
By the Associated Press.
MIAMI, Fla.. April 6—President
Roosevelt tonight assured “national
defense must and will be adequately
maintained” in a message from his
fishing yacht acknowledging the Army
day observance.
Mr. Roosevelt sent his radio mes
sage through Rear Admiral Reginald
R. Belknap, chairman of the Army
Day Committee at Fort Monmouth,
N. J.
Admiral Belknap transmitted to Mr.
Roosevelt at sea a message received
from New York by carrier pigeon of
the Army Signal Corps reaffirming
the “unwavering support of every
measure designed to promote the Na
tion’s welfare, security and honorable
peace.”
The message from the President
follows:
“Received message at sea and at
long range joined with you and count
less others in observance of Army day.
National defense must and will be
adequately maintained. Promotion of
the Nation’s welfare and security de
pends upon the patriotic support of
the citizenry as a whole as well as
the traditional loyalty of the armed
services. As commander in chief I
extend my appreciation to the serv
ices and to those countless thousands
of American citizens who participated
today in a demonstration of loyalty
and devotion to j|ie flag.”
District Work-Relief Program
Being Drawn for Quick Action
School and Library Projects Among
Those Considered as Officials Await
Administration's Word to Start.
BY J. A. O’LEARY.
District officials, as well as the re
lief agencies of all the States, are
awaiting with keen Interest announce
ment by the administration of plans
for going forward with the $4,880,000,
000 work-relief program, as the huge
appropriation measure was being car
ried South last night to receive the
President’s signature.
The underlying object of the bill
is to get several million employable
persons throughout the Country off
direct relief and on to work-relief
projects, and here, as elsewhere, of
ficials already have been shaping up
tentative lists of useful improvements.
The bill vests broad discretion in
the President to determine how much
shall be devoted to each of the vari
ous types of projects, and to prescribe
the duties and functions of govern
mental agencies in carrying out the
program. Until the Chi^ Executive
makes public the procedure, programs
of the District and of the States will
be more or less tentative.
In Washington, the Board of Edu
cation has forwarded to the Com
missioners a list of school building
projects that could be considered, and
the Board of Library Trustees has
submlted a list of five branch libraries
that could be built as work-relief
projects on sites already owned by
the Government. The National Capi
tal Park and Planning Commisson
also has been engaged in co-ordinat
ing a schedule of proposed local proj
ects.
With regard to highway construc
tion and railroad grade crossing elimi
nation, the States and the District
will receive as a grant a definite pro
portion of whatever sum is set aside
by the President for these two types
of work. The President may allo
(Continued on Page 4^ Column 3.)
WORK-RELIEF DHL
NEW DEAL’S PLANS
—
Rural Rehabilitation Scheme
Especially Jeopardized
Some Leaders Fear.
COMMUNITY BUILDING
AND LAND BUYING HIT
Measure in Final Form Sent
President, Now Starting
Back to Capital.
BY ERNEST K. LINDLEY.
(Copyright. 19.15.)
The *4.880,000.000 work-relief bill
was on its way South last night to
to receive the signature of the Presi
dent. presumably as soon as he lands
from his fishing excursion Monday.
Swift action to set up the adminis
trative machinery for the expenditure
of the money is expected as soon as
the President returns.
Widespread relief over the fact that
the blU at last emerged, after 75
days, from the slow-grinding congres
sional mills was tempered in certain
quarters of the administration by
grave doubts that the bill in its final
form will permit the use of funds
for some of the most Important pans 1
of the President's program.
The building of rural industrial
communities and the acquisition of
submarginal land are the ele- j
ments in the program which ap
pear to have been jeopardized by the
bill. In fact, one administration of
ficial who had examined the bill ex
pressed doubt that any long-range
work in rural rehabilitation could be
done except on a purely individual
basis or through the States. Other
officials, including two lawyers, took
a more hopeful view but admitted
that the bill, as drafted, might inter
pose some difficulties in the way of
the whole land utilization and rural
rehabilitation program.
McCarl in Key Position.
The ultimate determination will rest
with Controller General J. R. Mc
Carl. And the presumption there is
unfavorable to the administration be
cause his office recently advised
the Senate Committee on Appropria
tions that the classes of projects
listed in the bill could not be in
terpreted to cover rural industrial
communities and submargina’ lend
acquisition. The controller general
would not discuss the matter today,
except to say that he would have to
pass on each specific problem as it was
raised.
Some work on rural industrial cen
ters has already been begun under
subsistence homesteads division of
the Interior Department and by the
Federal Emergency Relief Adminis
tration through State rural rehabiU
tation corporations. The land-pur- |
:hsse program is already going at full
slast under special appropriations
which will be exhausted within the
lex; few months.
It was admitted that unless more
funds are made available the land
program will be in a rather bad sit- :
nation, as in many areas the pur
chases are in the form of separated
plot» which have not yet been con- i
solidated. Land is being purchased
,'or the life refuges, the use of the
Indians, for the rehabilitation of
sharecroppers and evicted tenants,
rec national purposes, grazing, re
forestation and allied purposes.
Plains Area Eroded.
The administration was preparing
to move into the wind-eroded areas
:f the Western plains and buy aban
doned land on a large scale for re
planting grass. Its broad rural re
habilitation program in the South
will involve the purchase of worn
lut lands and the moving of families
to plots of better land. Some 40.000
families are living on submarginal
land which already has been bought
Dr optioned and are awaiting removal
o better land—much of which has not
fee been bought.
I.ikewise the development of rural
industrial communities and of satellite !
cities was considered one of the chief I
lonf-range phases of the works pro- ]
gram—and a phase, moreover, in I
which Mr. Roosevelt had exceptional
personal interest. Both the land pro
gram and the building or rural in- |
dustrial centers were expected to be
in the hands of Dr. Rexford G. Tug- 1
well. Undersecretary of Agriculture.1
Whether the President will seek fur- j
ther legislation to remedy the defects j
in the bill or whether the administra
tion lawyers will be able to work out |
some kind of arrangement with the ;
controller general were questions
awaiting the return of Mr. Roosevelt.
Elliott Wrote Opinion.
When the classification of projects
was first added to the bill about six j
weeks ago, lists of the things that j
could be done under each heading
were submitted by F. E. R. A.. These
lists were referred to the controller
general by Senator James J. Byrnes.
The reply, signed by R. N. Elliott as
acting controller general in the ab
sence of Mr. McCarl. took exception
(Continued on Page 4, Column 1.)
MS IN HOUSE
POINT TO BITTER
FIGHT ON SECURITY
Rumbles From Both Sides
Greet Committee Re
port on Bill.
MEASURE ASSAILED
BY MINORITY GROUP
Seven Republicans Denounce
Measure as Inadequate and
Unconstitutional.
By the Associated Press.
The acrimonious House Wfcpute over
the social security bill and its value as
a depression remedy turned into a
battle royal yesterday.
No actual physical blows have been
struck, but the situation was tense
and strong words were used. The
talk was stimulated by submission of
a formal report on the bill yesterday
by the Ways and Means Committee.
The 17 Democratic members of that
committe insisted the new bill was
the complementary and essential sec
ond half of an attack on social in
security. naming the $4,880,000,000
work-relief bill as the other half.
They definitely placed the social se
curity bill on the President's “must”
legislative lists.
But the seven committee Repub
licans, in a minority report bristling
with criticism, termed the measure
not only "unconstitutional” and “in
adequate," but argued "it might, in
fact, retard economic recovery.”
At the same time the intra-party
disputes continued. The 103 House
Republicans were unable to agree on
a unified attitude. The 319 Democrats
were definitely divided into two
gioups, one favoring and the other
opposing a suggestion that the bill be
brought up this week under procedure
forbidding amendments from the
floor.
Gag Rule an Issue.
Ways and Means Committee Demo
crats wanted the gag rule to forestall
liberalization of the bill. House lead
ers opposed it. There was a possibil
ity that the question would be taken
to a Democratic caucus tomorrow and
initial floor consideration of the bill
delayed until Wednesday or later.
Amid all this contention, Townsend
ites in both parties looked for an
opportunity to offer their proposal as
a substitute for the old-age pensions
in the approved bill.
The Democratic Committee report
gave an exhaustive explanation of the
bill and continued:
“On every hand the lack of
social security is evidenced by
human suffering, weakened morale
and increased public expendi
tures. * * *
• We must relieve the existing
distress and should devise measures
to reduce destitution and despon
dency in the future. • • •
'Work for the employables on
relief is contemplated in the work
relief bill: a second vital part of
the program for security is pre
sented in this bill. * • •
“As the President recommended,
this bill should by all means be en
acted into law at this session.”
The Republicans termed old-age
pensions “inadequate.” said the old
age compulsory contributory annuity
financed by a tax on pay rolls and
earnings was not constitutional and
asserted:
“These titles impose a crushing
burden upon industry and upon
labor. They establish a bureau
cracy in the field of insurance in
competition with private business.
They destroy old-age retirement
systems set up by private indus
tries. which in most instances
provide more liberal benefits than
are contemplated under title II
tthe old-age pension sections.)”
Bitter Language I'sed.
Scores of members were talking
bitterly about the situation, but in
the hope that the intra-party dispute
would not be emphasized, most of
them declining to let their names
be used.
For instance, a close friend of
Speaker Byrns remarked: “If the
Ways and Means Committee really
favored this bill It could bring it out
on the floor and pass it without a
rule. But the committee members are
afraid to talk openly for the bill."
Chairman O'Connor, Democrat, of
New York, of the Rules Committee
contended that the demand for a rule
was simply an attempt to “pass the
buck to the leadership.” He expressed
anew his opposition to a gag.
One member of the Ways and
Means Committee said that if Byrns
did the right thing “he would bring
this bill up under a suspension and
pass it.” Byrns had refused to agree
to that procedure, which would limit
debate to 40 minutes and prevent
amendments, on the ground that the
bill was entitled to more consideration
than that.
The committee Democrats appar
ently changed their previous decision
to rap the Townsend $200-a-month
(Continued on Page 4, Column 6.)
Hazen Appoints 10 to Study
Changes in Traffic Control
Proposals for major changes In the
District’s system for traffic control,
enforcement and prosecution will be
subjected to serious study this week
Sy a committee of 10, named yester
lay by Commissioner Melvin C.
Hazen.
This step was taken as a direct
result of the recent proclamation by
President Roosevelt for more effective
means of cutting the Nation's traffic
toll. It also is tied in with studies
Df the Home Crime Committee into
methods of law enforcement here.
The committee will discuss propos
ils for establishment of a number of
magistrate courts to handle traffic
ind other minor cases; suggested de
centralization of the Police Traffic
Bureau; Impounding of automobiles
parked so as to create hazards; me
chanical inspection of automobiles:
jay-walking; whole subject of
parking regulations, and the possi
bilities of cutting out some of the
legal machinery involved in civil law
suits over traffic cases.
Hazen hopes for preparation of a
“master plan” for traffic control and
enforcement which may be submitted
to the Board of Commissioners for
approval and then to Congress at this
session.
The Commissioner has asked the
following to constitute the Survey
Committee, which is to meet for the
first time Wednesday at 2 p.m.:
Frederic A. Delano, chairman of
the National Capital Park and Plan
ning Commission; Corporation Coun
sel E. Barrett Prettyman, Police Supt.
Ernest W. Brown, Traffic Director
William A. Van Duzer, Inspector B.
A. Lamb, in charge of the Polio*
Traffic Bureau; Presiding Judge Gua
(Continued ^n Page 4, Column 6.)~