Evening star. [volume], July 14, 1935, Page A-4, Image 4

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

Image provided by: Library of Congress, Washington, DC

                
101 HIT
Predicts Holding Company
Fight Will Be Main Is
sue in 1936.
By the Associated Press.
ST. PAUL. July 13.—The Nation's
youngest Senator, Rush U. Holt of
West Virginia, denounced "Hoover
ism” to younger Democrats of five
States today and predicted the hold
ing company fight would be a princi
pal Issue in the 1936 campaign.
"The theory of rugged individual
ism as proclaimed by Hooverism,”
Senator Holt told the flve-State
regional conference, "pushed agricul
ture down to its low level.
“Agriculture Is better off today
than in the days of Hoover and the
farmer should not be forced to sell
his products below the cost of pro
duction.
"Toryism is not confined to one
party,” he added. “There are some
Tories in the Democratic party who
want the liberty they had under
Hoover—the liberty to starve to death,
tinder Hoover rugged Individualism
meant a man had to be a very rugged
individual or he became a ragged in
dividual.”
Declaring the Washington power
lobby "stooped to every known
scheme” to defeat the President. Sen
ator Holt said it was his opinion "the
holding company fight would be one
of the principal issues in the 1936
presidential campaign.”
"I am certain,” he said, "that the
people will accept President Roose
velt’s views overwhelmingly.”
Taxes
(Continued From First Page.)_
of from possibly 10 to 17 per cent, the
smaller corporations paying the small
er tax.
Organized business has charged the
effect would be to check large, effi
cient corporations, in which the sav
ings of thousands of small stock
holders are invested, and nullify the
business of “the smart man, bringing
him down to the level of the man of
less business acumen.”
The argument against the grad
uated corporation tax which carried
most weight with the dominating side
cf the committee, a Democratic leader
confided, was the following by Noel
Sargent, secretary and statistician ol
the National Association of Manu
facturers:
“Henry Robinson invests $1,000 in
a $500,000,000 corporation, which
earns a 5 per cent profit, or a total of
$25,000,000. Considering now only the
first proposed table of corporation in
come taxes, we find that the $50
earned upon Robinson’s $1,000 Invest
ment would be taxed at 17 VJ per cent,
or $8.75. before he would be entitled
to receive any dividend.
Tax Less on Lower Income.
"Fred Adams, his neighbor, with the
same annual income, invests *1,000 in
a $100,000 corporation, which also
earns 5 per cent on its capital invest
ment, but because the total corpora
tion profit in this case is much small
er, the $50 earned on Adams' $1,000
Investment will be taxed only 12 per
cent, or $6. before he is entitled to
receive a dividend.
“Here are two men, with equal in
comes, equal investments and equal
earnings on their investments, yet
under this proposal the man will be
penalized who has invested in the
large company."
It w'as apparent that Chairman
Doughton and other Democratic lead
ers on the committee are sensitive
to the criticism that they are trying
to railroad the bill through without
adequate hearings. Chairman Dough
ton denied a bill has been “sent
down” to the committee by the ad
ministration and in this connection
fought to minimize talk of “must"
orders from the White House.
In the course of wrangling between
the chairman and the Ohio member,
Mr. Jenkins asked why the Ways and
Means Committee had waited since
January and done nothing on taxa
tion until recently. Chairman Dough
ton admitted he did not know why
the President had waited until re
cently to send in his tax message.
Revenue Guesses Continue.
As the hearings drew to an end,
guesses as to the total revenue to be
raised continued, but seemed to have
little more foundation than hereto
fore.
The final hearings today were
marked by vigorous attacks on the
proposals of the administration by
representatives of organized business.
The sliding scale corporation income
tax was especially attacked.
Appearing before the committee to
day representatives of the Chamber of
Commerce of the United States were
Fred C. Clausen, Horicon, Wis., man
ufacturer; Roy C. Osgood, Chicago
bcnker, and E. C. Alvord, economist.
Mr. Clausen warned that the Gov
ernment through loans and advances
had a $1,700,000,000 stake in corpora
tions of various kinds and that in
equitable taxes might endanger inter
est and principal payments.
Mr. Osgood proposed that present
estate taxes be lifted if new revenue
was needed instead of the Federal
Government going into the inheritance
tax. which, he said, if of confiscatory
character would “remove incentive to
thrift and endeavor.”
Plant Shutdowns Feared.
"In this connection I make bold to
■ay,” Mr. Osgood said, "that the best
Justification of a capitalistic system
Is the fact that, by and large, wealth
tends to come into the possession of
people who are the best custodians for
It.” He concluded with a warning
that such taxes might discourage en
terprise and cause shutdown of in
dustrial plants.
George McCaffrey, research director
Of the Merchants’ Association of New
York, contended that "enactment at
this session of Congress of any of the
proposed plans now under considera
tion by the committee or any other
proposal for the so-called distribution
of wealth would be most imprudent
and unwise.” He urged, instead, that
new taxes, which he recognized as “in
evitable,” be deferred “until such taxes
may be duly considered and enacted as
part of a properly co-ordinated plan
for balancing the Federal budget.”
‘‘In recommending to this commit
tee that It refrain form proposing any
tax program such as has been sug
gested during the present session,” he
said, “let us suggest very strongly that
this country solve the problem of bal
ancing its budget on the basis of
economics rather than under the whip
of politics.”
Mr. Alvord asserted the present
graduated personal Income tax “should
be preserved and not discredited by
rates or other provisions of Inequitable
or punitive character” in hitting at
4
Tax Program Under Fire
V
The air-cooled committee room of the House Ways and Means Com
mittee became heated again yesterday as additional business leaders took
the stand to express their views on the new administration tax program.
At left, from top to bottom: Fred H. Clausen of the United States Chamber
of Commerce, Representative Treadway of Massachusetts, a member of the
committee, and Roy C. Osgood of Chicago. At right: Chairman Doughton,
in a series of poses, first puzzles, then yawns and ponders as statistics
nil the air. —A. P. Candid Pnoto.
i increased income taxes in the higher
brackets.
Sullen Sentiment Grows.
In the House and Senate sullen sen
timent was developing against the
proposal to rush the bill through this
session. Counteracting this under
cover drive was a new move by House
liberals to sign up a majority ot the
membership to a "round robin"
against adjournment until the tax
legislation is acted on.
A source close to the White House
j said that the activities of the Chamber
of Commerce of the United States and
| the National Association of Manufac
i turers against the entire program was
! spurring the administration on to try
I ing to get the legislation through as
soon as possible.
Before the Ways and Means Com
mittee, the Chamber of Commerce
; representatives went into much detail
; in their objections and were closely
j grilled by Democrats of the com
mittee.
Mr. Clausen was asked his opinion
of an excess profits tax instead of a
graduated corporation levy He held
it would be impossible to administer
and should be utilized only in event
of war or similar emergencies.
He held the President's program
was "a social reform measure" which
would reduce size of corporations, lead
to reduction of employment and
higher cost of products of industry.
He held there was danger of the
Government becoming “a partner in
business” in the President’s program.
S Representative Allen T. Treadway. Re
| publican, of Massachusetts agreed
j with this view and said he was "tre
j mendously afraid of it.”
James L. Donnelly, representing I
i the Illinois Manufacturers' Associa
! tion, opposed the plan to graduate
! corporation taxes upward solely on
the basis of income.
Rabbi Backs President.
i
The President’s program was
strongly defended by Rabbi S. E.
Goldstein of New York, chairman of
the Commission on Social Justice of i
the Central Conference of American j
Rabbis. He criticized the stand of
the United States Chamber of Com
merce. He said:
"The President is correct in stating
that our present revenue laws do not
prevent an unjust concentration of
wealth and economic power. What
the President is endeavoring to do is
to deijiocratize our economic organiza
tion and income. What the Chamber
of Commerce is striving to do is to
maintain the autocracy In our eco
nomic life that is largely responsible
for our economic collapse. America
cannot tolerate an economic autocracy
together with a political democracy.
We cannot survive politically free and
economically enslaved. The Presi
dent's program of taxation wUl dis
tribute income Justly and aid us to
economic freedom.”
Herbert Benjamin of New York,
prominent Communist, in a statement
argued for increased taxation of
wealth and supported higher inheri
tance. income and corporation taxes.
Mr. Benjamin appeared for the Na
tional Joint Committee for Genuine
Social Insurance. He indicated there
had been an effort to shut him out
of a hearing and said he was not
notified until this morning he could
appear. He then rushed to a plane
and got here in time to speak this
afternoon, just before hearings closed.
Representative Samuel B. Petten
gill, Democrat, of Indiana, foe of the
“death sentence” in the utilities bill,
spoke for a moderate tax on holding
companies. He held this would grad
ually simplify the holding company
structure without undue hardship.
(Copyright. 193.S. by the New York
Herald Tribune.)
—
Congress
(Continued From First Page.)_
fusal to pay its obligations in gold,
when it had promised such payment.
This latter bill will lead to a lot of
talk about "repudiation” and about
the effort to shut citizens out of the
courts. And the Senate is still await
ing the banking bill, slated to be
t*ken up for discussion as soon as
the A. A. A. bUl, now the unfinished
business, has been disposed of.
The A. A. A. measure has run into
several snags In the Senate. It has
been amended in a number of par
ticulars not desired by the Wallace
Tugwell group, and the chances are
that It will be amended in more.
The administration may meet defeat
on Its proposal to prohibit and pre
vent the payers of processing taxes
from getting a refund of these taxes
from the Government, should the act
as originally drafted be held by the
Supreme Court to be unconstitutional.
The administration scored a victory
in the House during the last week in
connection with the bill amending
and increasing the powers of the Ten
nessee Valley Authority. The House
Military Affairs Committee lost out
there. The House a week earlier had
administred a drubbing to the Presi
dent on the “death sentence” clause
in the public utility holding company
bill. The Democrats in that body,
however, did not relish the Idea of
defeating Mr. Roosevelt twice in suc
cession on two separate measures.
After all, politics is thicker than
water, especially when the Democrats
know that a national election is to
be held next year, and they have to
run on the same ticket with the
President. To discredit the head of
their ticket would not be good poli
tics.
With this victory on the T. V. A.
to encourage them, the administra
tion leaders are trying now to bring
about final passage of the holding
company bill with the "death sen
tence” clause reinserted. The bill has
been sent to conference and the Sen
ate Conference Committee has been
packed 4 to 1 In favor of the death
sentence clause, although the Senate
voted that clause Into the bill by a
margin of only one vote. The House
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$120 to $25,000 for any worthy purpose.
MORRIS PLAN BANK
Under Supervision U. S. Treasury
1408 H Street M W. Washington. D. C
BE COURTS
Virginia to Determine Cost
of Operating Under Law
Passed Last Year.
By the Associated Press.
RICHMOND, Va.. July 13.—An
intensive audit is being made this
month of the 90-odd trial Justice
courts of Virginia, State Auditor L.
McCarthy Downs said today.
The audit was begun July 1, the
anniversary of the beginning of the
system, which was established by an
act of the 1934 General Assembly.
Every effort is being made to com
plete the study this month. Mr.
Downs said.
One of the objects of the audit is
to determine to what degree each
court paid for its own operation by
collecting fines and fees, as checked
against the operating expense.
The Assembly appropriated $200,000
from the general fund for the current
biennium—roughly $1,000 a year to
each of the courts—to help bear the
costs of the system during the forma
tive period.
A few counties have combined to
operate one court, and three counties
have not reformed their interior court
systems to come within the scope of
the 1934 act. These are Henrico,
Chesterfield and Arlington. Efforts
are being made to bring them within
the system, so that all laws that
might conflict with the 1934 statute
can be repealed.
A subcommittee of the Governor’s
advisory system is also studying the
trial Justice system In the light of a
year's experience, and is expected to
report its findings soon to the
Governor.
VETERANS IN HOSPITALS
ASSURED FAMILY AID
| Legion Auxiliary Perfects Plans
to Hasten Belief for Kin
in Distress.
By the Associated Press.
Families of disabled war veterans
will be given aid while the veterans
are recovering in Government hos
pitals under a plan announced yester
day by Mrs. Halsey D. Cory, rehabilita
tion chairman of the American Le
gion Auxiliary.
The plan announced from Legion
headquarters would work as follows:
A contact worker will call on a vet
eran within 24 hours after he arrives
In a hospital. Her report to a com
mittee in the home community will
initiate arrangements for the care of
the family, either through local re
lief agencies or by direct work of the
auxiliary members.
conferees, however, are 3 to 2 against
the "death sentence" clause.
The prediction was made last night
that either the bill will finally be
passed without the "death sentence,"
or it will fall to go to the President
and will die in the conference stage.
Tied up in conference for more than
two weeks, the economic security bill,
one of the major measures of the
Roosevelt program for this session, has
| continued to lag. The Senate wrote
I Into the bill by a substantial majority
; an amendment offered by Senator
I Clark, Democrat, of Missouri, per
1 mit'.lng the Retirement Board to ex
empt from the operation of the Fed
eral plan any company which has a
1 retirement plan of its own, as good or
better than the Government plan.
This is one of the principal matters at
issue between the Houses in confer
ence. Another is the final decision as
to how the law' is to be administered.
The House bill sets up an independent
agency for that purpose, while the
Senate turns the work over to a board
in the Department of Labor.
Coolies Swarm to Ballast
Dikes as Refugees Hud
dle in City.
By the Associated Press.
HANKOW, China (Sunday), July
14 —Swarm* of coolies today strength
ened dikes which threaten to open and
I loose the raging Yangtse River on
the city.
Leaks have opened In places, and
the river waters have penetrated to
| the heart of the city, driving the resi
dents to upper floors and filling them
with fear that the flood embattiements
cannot long stand. Refugees, sur
rounded by their chattels, are huddled
in the center of the city.
Dykes protecting the neighboring
city of Hanyang—a metropolis of more
than 100,000 inhabitants—finally gave
way today before the ceaseless batter
ing of the Han River, and the city
lay half submerged under the weight
of millions of tons of muddy water.
The frantic populace fled. Only a
small section of the city escaped In
undation. Homeless residents were
streaming across the river into Han
kow as rapidly as the available boats
could carry them.
A heat wave over the Yangtse Valley
added to the suffering of the terrified
people.
Rain, accompanied by hail, at Lan
chow, Kansu Province, converted
mountain streams to torrents which
destroyed roads and crops. These
streams feed the already swollen river,
now raging through Shensi Province.
Heavy rains are reported at Kalfeng,
Honan Province, adding to the flood
danger of the Yellow River. West
Shantung is overrun with floods pour
ing southeastward along the Grand
Canal.
At Kiukiang. the Yanztse reached
its highest point since 1870, at 45.6
feet. Its volume is increased by the
vast inflow from the Han River and
Tungting Lake, which have devastated
| the country surrounding them.
The death toll and property damage
, are incalculable. Floating bodies are
not an uncommon sight throughout
the stricken region.
'bombings in night
PROBED AT TACOMA
Police Fear More Disorders When
Lumber Mills Reopen To
morrow.
By the Associated Press.
TACOMA, Wash,, July 13— Five
bombings during a night of terror,
following upon lumber strike rioting j
. here were investigated by police today
j while National Guardsmen prepared
- for more possible trouble Monday with
j the reopening of mills.
About 40 persons remained In de
| tention, having been arrested during
the four hours of skirmishing between
strike pickets and militiamen yester
day afternoon and last night. Many
persons were bruised and cut as the
guardsmen turned back an attempted
parade of strike demonstrators.
The Federal Mediation Board, ap
pointed recently by Secretary of Labor
| Frances Perkins to arbitrate the Pa
cific Northwest strike, announced it
was satisfied with the Seattle sltua- i
tlon and would come to Tacoma next
i week.
The West Coast Lumbermen’s Asso-1
elation issued a statement that the
strike closing its tenth week today
has cost employes of the logging and
lumber Industry $5,000,000 In pay rolls
lost.
__
Weight Drug Is Fatal.
LOS ANGELES. July 13 (A>).—A
desire to be slender led to the death
today of Frances E. Jacques, 24, physi
cians at the General Hospital reported
She died from an overdose of a drug
used to take off weight, they said.
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PIA>tO COMPAJVY
1239-6 Street - Cor 13 - N.W.
HOME OF THE CHICKERING PIANO
Rockefeller of Today
John D Rockefeller photographed last week at his home in Lake
wood, N. J., where he celebrated his 96th birthday anniversary.
—Copyright. C. E. Englebrecht from Wide World Photos.
VAN DOREN ELECTED
2d Division Honors D. C. Man
and Votes City Session.
CINCINNATI, July 13 UP).—Vet
erans of the 2d Division, A. E. F. Asso
ciation, concluded their convention
today, elected Maj. Luclen Van Doren
of Washington, D. C„ as president
and chose the Nation’s Capital as their
1936 meeting place.
Maj. Frank Mason, New York, was
elected first vice president; Capt. F.
Israel, Washington, D. C.. secretary;
Arthur Counihan. Washington, assist
ant secretary; W. Sykes, Pittsburgh,
publicity officer, and Thomas Mason.
Washington, national sergeant at
arms.
Dedication of a 2d Division me
morial will be a feature of the 1936
Washington meeting, Van Doren an
nounced.
CITY NEWS IN BRIEF
TODAY.
Meeting, Modern Woodmen of Amer
ica, Mayflower Hotel, 10 a.m.
Meeting. Mercantile Club. Hamilton
Hotel, 1:30 pun.
—
TOMORROW.
Luncheon. Allied Theater Owners
Hamilton Hotel, 1 p.m.
■ Luncheon, Newcomers Club, Carl
ton Hotel, 12:30 p.m.
Luncheon, Variety Club, Willard
Hotel. 1 p.m.
Meeting, Women's Democratic Edu
cational Council, Mayflower Hotel,
; 7:30 p.m.
i Excursion. Knights of Columbus,
steamer City of Washington, Seventh
■ Street Wharves, 8:30 pm.
FOR BASTILE DAY
Biggest ’ Military Review
Since War Expected to
Prevent Rioting.
By the Associated Press.
PARIS. July 13—Prance’s biggest
military review since the days of the
World War Is expected to quiet any .
possible revolutionary ardor by rival
political ’’troops” tomorrow—Bastille
day.
The political partisans intend to
march by the scores of thousands
through the French capital—and au
thorities are nervous.
Both rightists and leftists have
promised to maintain order, but Pre
mier Pierre Laval is taking no chances.
Military air fleets held a dress re
hearsal of 450 planes at Le Bourget
Field at noon today as a preparation
for the massed maneuvers of 600 air
craft tomorrow over long columns of
tanks, artillery and all branches of
the army and navy. The military dis
play will be reviewed by President
Albert Lebrun.
The fear of demonstrations over
shadows the expectations for the re
view and the usual dancing in the
street.
The left wing “popular front” plans
a parade declaring the day has a po
litical significance almost as great as
the storming of the Bastille prison.
July 14. 1789, the revolutionary act
which the holiday commemorates. At
the same time nationalist forces, in
cluding the strong Croix de Feu
(cross of fire), followers of Col. Fran
cois de la Rocque. will march by the
tens of thousands in a rightist dem
onstration after their leader has re
kindled the flame at the Tomb of the
Unknown Soldier.
Dancing in the streets began to
night, but the dancers have been few
in late years for this tradition, like
many others, is dying out. The cele
i bration lasts through Monday.
MRS. MAY DUNN DIES
Was Prominent in Capital Society
Following Civil War.
COLORADO SPRINGS, July 13
—Mrs. May E. M. Dunn, prominent in
Washington, D. C.. society In the years
| following the Civil War. died here to
day at the age of 86. She was the
daughter of the late Lot M. Morrill,
one-time Governor of Maine, later
United States Senator from that State
and Secretary of Treasury in Presi- '
I dent Grant’s second administration.
| She is survived by her sister. Mrs.
i Morrill Hamo Hamlin of Portland.
Me.: a daughter, Mrs. Arthur I.
i Walker of New York, and a son. Mor
rill Dunn of Detroit,
Unlinked.
RENO. Nev., July 13
, Marthe B. Link, socially prominent
j New York City, won a divorce <
grounds of five years separation tot
from David Cornell Link. They we
l married June 12.1920, at WatchilL R. *
Saturday Hours |
m During July and August
«* 9:15 A.M. to 1:00
"men's WEAR) 14th & G STS. I
Beginning—Our Semi Annual |
CLEARANCE
Regular Stock—Year 'round Weight
SPRING SUITS
Formery $30 Formerly $50 Formerly $65 and $60
$26 so $3650 $4850
Regular $35 Suits Regular $55 Suits Regular $75 Suits
NOW $29.50 NOW $42.50 NOW $52.50
—TROPICAL SUITS EXCEPTED—
Furnishings Reduced
STRAW HATS
and PANAMAS
u“ 25 %
Fancy Half Hose
Were NOW
50c ........35c
(3 for 31.00)
£1.00 ..65c
<J for 31.75)
Fancy Negligee
SHIRTS
Were NOW
gl.95 (coll,r ,tuehed) $1.55
(3 for S4.S0)
*2.50 *1-95
(3 for SS.S0)
*3-50 :rr *2.45
*5.00 (collar .tuehed) $3.65
White Broadcloth.dj g5
SILK ROBES and
LOUNGE SUITS
u» 25 %
Beach Robes
Were NOW
#3.95 #2.95
#5.00 . . #3.75
Neckwear
Were NOW
£1.00 65c
£1.50 _ £1.15
£2.00 . £1.45
£3.00 and
£2.50 £1.85
£3.50_ £2.45
(collar attached or neckband)
Summer Sport Shoes
Were $6.00 to $8.50
White nubuck, white canvas, black and
white, tan and white, and a few all
black and all-tan oxfords.
$^35
Pajamas
Were NOW
#2.00 #1.55
#3.00 #1.85
#3.50 #2.45
#5.00 ...[<mi #3.35
This Is Our Regular Dependable High. Quality Merchandise Offered at seasonal
Savings!
SIDNEY WEST,
Eugene C. Gott, 14th £. Q STS.
~ --- - -- - ■ I