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Evening star. [volume] (Washington, D.C.) 1854-1972, February 27, 1936, Image 2

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Observer Sees Ravages of
Government Competition
Forcing Them to Wall.
Study of the unanimous opinion
rendered by the three judges sitting
In the United States Circuit Court of
Appeals. fourth circuit, would seem
to indicate that the Supreme Court
of the United States will probably
declare unconstitutional the public
utlMty holding company act, at least
in "so far as 80 per cent of the in
dustry is concerned, and possibly the
whole act will be found invalid.
What the utility industry would
appear to be up against nowadays is
hot the famous “death sentence” law
regulating or attempting to destroy
holding companies, but another kind
of death—the cancerous ravages of
Government competition.
Thus the Senate is already debating
a bill to advance money to local or
ganizations to develop rural electri
fication, but companies already in
business are excluded from any form
of Government loans. Instead of
using Government money in a plan
that gives private companies a chance
to compete on equal terms with or
ganizations favored by Government
agencies, the scope of tfce proposed
measure evidently is to set up a rural
electrification plan tantamount to
Government entry Into the electrical
business on a wide scale.
ruin uiuau iiugwtiu.
Administration leaders are saying
that nothing like $1,000,000,000, the
first amount mentioned, will be ap
propriated, but evidently the Roose
velt regime is getting ready to indorse
a plan for Government competition
that will fit in with the establishment
of such agencies as the T. V. A.
and with the operations of the P. W. A.,
which lends money to the municipal
ities- that can build their own plants
anfi' duplicate existing distribution
The courts have plenty of suits en
deavoring to restrain the P. W. A.
I from using Federal money to aid mu
nicipalities in their competition with
i private companies, and in the latest
ease- in the Circuit Court of Appeals
. .the Government won on the ground
that damage to the private utility had
- not been proved.
It begins to look as if the use of
Federal funds will afford considerable
basis for legal controversy and that
It is going to be difficult for com
panies to prove that they are threat
ened with damage until they are faced
with actual construction of plants,
, It is rumored that one important
utility has offered to sell out to the
Federal Government to protect its
investment, but that the offer was
declined. Certainly the alternative
which some utilities may soon be
faced with is whether they will wait
till competing systems are built when
their own properties will have con
sequently dropped considerably in
market value or whether they will
offer to sell under virtual compulsion
of circumstances as was the case in
' Knoxville, Tenn.
Question of Funds.
If the Federal Government wants
j to go into the power business, there
are many utility men who feel that
Jt, would be better for Government
3yfn|rship to come now than after a
jk**'drawn out competition in which
*iil£{y properties would suffer loss in
vSHre. The question, of course, ol
■where the money is coming from to
buy out the utilities whose investment
is anywhere from $10,000,000,000 to
$15,000,000,000 is something that has
to' be decided just as any other drain
on the already unbalanced Federal
budget. Then there’s the matter of
competition between water power and
coal. It is a mystery why the coal
miners who will presumably be af
fected most by the development of
water power plants are not much more
concerned than they appear to be in
the -controversy. It may be they feel
that the Government entry into the
power business is likely to be thwarted
at the polls as the issue of Federal
.expanses brings retrenchment in
A. and other power projects in
ihelnext few years.
^ .<»*> «** " *!»«/ MBIUU 111 tUC tUUl OO
«n the holding company issue is vital
..Mot. only to the utilities but to all
^corporations that have subsidiaries
'scattered throughout the country.
*JTia|{e Soper, who handed down the
opteion on behalf of himself and
Judges Parker and Northcott in the
latest holding company case dealt
with most all the important phases
of constitutionality. While there was
one concluding paragraph taking issue
with Judge Coleman’s sweeping state
ment that the entire act was uncon
stitutional, there is no doubt left how
closely the three judges concur in
the Coleman opinion as to virtually
all the essential points. «
Not Compelled to Register.
Thus first of all. Judge Soper says
Its was a bona fide case and declares
the “suspicions of the representatives
of the Government were without
foundations” when they charged col
lusion. He points out first that the
American States Public Service Co.
was not obliged to register and that
neither this company nor its sub
sidiaries could be reorganized and yet
comply with the Public Utility Hold
ing Company Act.
Perhaps the most interesting aspect
of the three-judge decision is the
significant declaration that Congress
has no power to regulate holding com
| panies either under the commerce
clause or under the postal power oi
under the decisions governing the
policing of evils in interstate com
merce such as automobiles used by
criminals or thieves or the transport
i of articles which are themselves dele
terious to health.
• me woiaing company Act, said
Judge Soper, “does not merely pro
hibit the use of the Instrumentalities
of commerce for fraudulent or unfair
purposes, but prohibits activities ol
| the kind already described, whether
harmful or not, in so sweeping a
fashion as to make it impossible for
a holding company covered by the
act to carry on its business without
registration and without submission
to the regulation of the commission
In many important particulars. . . .
“The Holding Company Act goes
much farther for it seeks not merely
to control the use of the means of
distribution, but in many material
respects the business of the user.’1
This is substantially what John W.
Davis and his associate counsel con
tended for in their arguments before
the court. The quotations cited by
Judge Soper from Supreme Court
opinions, such as in the Schechter case
and the A. A. A. case indicate clearly
that efforts to interfere with problems
that are reserved to the States prob
ably will be banned by the high court
with respect to holding company own
ership and management and that the
1 9
only part of the law which will remain
is that which refers to companies
actually engaged in the interstate
transmission of electricity.
ramrTirts asyj
What’s What
Behind News
in Capital
Business Outlook Held
Good by Non-Polit*
’ ical Observers
POLITICOS have been flailing
the air increasingly with con
fusing business predictions.
Some leaders of the outs are
emphasizing more and more that in
flation is imminent. The ins have now
countered (see Postmaster General
Parley's Kansas speech) with the idea
that prosperity is here.
A far more trustworthy line on
things can be obtained from sound
economists and business people whose
confidential views are not acquired for
political effect The wisest ones here
abouts generally have the following
carefully measured viewpoint:
The outlook for tome months
ahead is impressively good, but ...
it contains too many elements of
artificiality and instabilityjto war
rant the definite ocnclusion that
what we have now is a natural
recovery of the self-sustaining
cumulative variety.
In balancing up the prospects of
the many obvious things that might
happen, the odds now seem to favor
expanding business, backed with more
than ample credit facilities, which
will become an increasingly active
factor as the process goes on.
The broad direction of this move
ment is toward a highly expansionary
plane, with prices tending upward,
but only moderately upward for a
considerable period of time jet.
Just how far these processes will go
toward anything that might legiti
mately be called inflation, or what
kind of inflation may eventuate, can
not now be told with any reasonable
degree of certainty.
May Change Direction.
It is like the snowball which is mov
ing and is also being pushed. The ball
has weak spots and may change direc
tion. But the direction in which it is
now going indicates it will continue to
enlarge itself moderately for some
months yet. It is headed for a big
drift of credit, which may swell it tre
mendously some time in the not near
No bravery medals are being
claimed by the House Appropriations
Committee for burying President
Roosevelt’s old shelter belt idea. It was
rather generally understood inside the
committee that the White House
would consent to the burial without
any great fuss.
In fact, the hearings disclosed some
very interesting testimony. It is ex
tremely unusual for a Government
official to hint that he can get along
without appropriations for his own
department, but the forestry officials
did. They pointed out that they
avoided “getting too entangled in this
project without the approval of Con
gress.” Also that they “developed the
project so we could fold our tents and
move out” if Congress did not approve.
The invitation to Congress was
subtle but effective.
Note—The shelter belt was to have
been 1,000 miles long and 100 miles
wide and planted with 3,000,000,000
(count them) trees. The expenditure
to date is about $1,000,000 for plant
ing 22,000 acres. The other $14,000,000
originally allocated to the project was
held up by the controller general.
Not Pressing Compliment.
A liberal leader within the New
Deal told his comrades after the
Parker power decision that it was a
shame they had not let Circuit Judge
Parker go on the Supreme Court some
years ago in that famous fight. Now,
after having received a copy of the
Parker opinion, the liberal is not
pressing his compliment.
The fact seems to be that the New
Deal legal authorities are somewhat
doubtful that what they won from the
decision is more than they lost. They
are letting their original cheers stand
publicly, but privately are consulting
their law books.
This is in accord with the new tech
nique of both sides on the power issue.
Both generally assert that they won,
which is a fairly good indication that
the matter has not been decided yet.
The simplest definition of Govern
ment credit was given off the record
the other day by an official in a posi
tion to know. He said: "The matter Is
as delicate and devastating as the
reputation of a man. If a citizen is
known to be a gambler or has the
reputation of a spendthrift, he is apt
to find his banker increasingly metic
ulous about lending him money. But
a man with a reputation for care and
caution can borrow far more on less
Two young New Deal lawyers
were arguing, where they thought
they would not be overheard, that
there is no future in the New Deal
any more. They argued that the
plodding was probably not worth
the salary involved.
Less obvious symptoms have been
noticed among far more prominent
liberals near the seats of power. An
other mourned: "If Roosevelt is re
elected, it will be so close that the
Government will not be able to do
much anyway.”
Note—Capable S. E. C. chief, James
Landis, whose organization is designed
to limit gambling, took a wild flyer in
fish a few days back. While angling
with Ex-S. E. C. Chairman Kennedy
in Florida, they bet one dollar on the
largest fish to be caught, one on the
smallest, and one on the first and
last. Landis won $4. He caught the
only fish.
(Copyright. 1936. by the North American
Newspaper Alliar.-e. Inc.)
Half Month 14 Days.
Half a month consists of 14 days,
according to a decision of a court in
Berlin, no matter how many days the
month itself may contain.
Representative A. J. Engei
Launches Bitter Attack on
McGroarty Bill.
Now that the Townsendites have
abandoned their original "no com
promise"' demand for a $200-a-month
pension, the second McGroarty bill
for as much pension as can be paid
seevral years hence through a trans
action tax is torn to shreds and tatters
by Representative Albert J. Engel,
Republican, of Michigan.
He explains how the transaction tax
will operate, itemizing in detail just
how it will be pyramided on the
fanner, the merchant, the banker, the
manufacturer and the wage-earner.
He emphasizes the advantage is
would give to the chain stores and
predicts ruin for thousands of in
dependent merchants and for hun
dreds of struggling industries. He
shows the tremendous cost in addi
tional taxes to Federal and State
governments, pointing out that the
tax runs through the entire span of
Mr. Engel points out that the mul
tiplicity of duties to enforce the pro
posed law would make it Impossible.
He explodes the “business turnover”
argument of the Townsend chieftains,
by showing the fallacy of taxing one
dollar 600 per cent, saying: “My
friend would have to cross-breed the
dollar with a guinea- pig to make it
reproduce Itself six times each year,
J mk1t« tVint naif t f! Art f a voc 11
Dire Results Predicted.
After a thorough analysis of this
second bill which Representative Mc
Groarty introduced on April Fools
day, last year, and which he says
"is the official Townsend bill" and
which the Townsend . Weekly con
firms, Representative Engel predicts
that it would (1) lead to a business
debacle and taxation worse con
founded; (2) defeat for Congressmen
who voted for it, and (3) tar and
feather for enforcement officers.
As a concrete example of how this
proposed 2 per cent transaction tax
operates, he says; “The farmer sells
his wheat to the elevator. 2 per cent
levied. The elevator sells it to the
miller, 2 per cent levied. The miller
grinds it into flour and sells it to
the wholesaler, 2 per cent levied. The
wholesaler sells it to the retailer, 2
per cent levied. The retailer sells that
I flour back to the farmer, another 2
per cent, plus all the taxes levied
i (total 10 per cent) from the time it
j left his hands as wheat until it gets
back to him as flour. Still further, a
j 2 per cent tax is levied on all pay
i rolls, freight and other charges for
! service or material, all of which (ex
1 cept the payroll tax) is added to the
cost the farmer pays. The same is
true when he sells a cowhide or wool
and later buys it back manufactured
into shoes, harness or clothing. The
wage-earner, merchant and other
citizens will pay, of course, the same
pyramided tax under this bill that
the farmer pays.”
One to 18 Transactions.'
Dr. Robert L. Doane, Dr. Town
send’s economist and statistician, in
testifying before the House Ways and
Means Committee, stated that "the
findings of the biennial census of
manufacturers Indicate a turnover of
! approximately three times once the
raw materials get into the manufac
; Luring process. Of course, it varies.
Sometimes it may be 12 or 16 times,
in other cases only once.” In other
; words. Dr. Doane states that there
may be from 1 to 16 transactions
while the raw material is going
through the manufacturing process,
each carrying with it a 2 per cent tax.
He further states that the turnover
after manufacturing is about three
times and the average number of
' transactions is six. This means that
the consumer pays a 12 per cent tax
on each article purchased. It does
not take into consideration the tax
, paid on freight, telephone and electric
: light bills, a pyramided tax paid on
t materials, etc., nor the 2 per cent
tax levied against the payroll which
is paid by the wage-earner.
Representative Engel’s studies show
that the cost of State and local gov
ernments would be increased from 12
per cent to 20 per cent, ultimately to
be paid by the taxpayer.
Regarding the promise of “going to
increase business,” Mr. Engel says;
“What is the difference between 12
men spending $200 each, a total of
$2,400; or 11 of these men giving their
$200 each to the twelfth man to spend
the entire $2,400? In either case the
amount spent is the same.”
No Ena to Taxation.
“This is the most far-reaching tax
bill ever presented to any legislative
body. You would be taxed and retaxed
from the second you are born until
after you are dead. Your father would
pay a tax on the doctor and hopital
bills and nurse’s salary. He’d pay a
tax on the soap with which you are
washed, the clothes put on you. You’d
be taxed again each minute of the
day from then until you die. Even
then they refuse to stop. They tax the
coffin into which you’d be put, the
undertaker’s fee for embalming you—
with a tax on the embalming fluid—a
tax on the hearse and on the grave
digger, on the salary of the preacher,
on the coal to heat the church, on the
crepe the mourners wear, a tax on
your tombstone, on the probate judge’s
fee, the administrator's fee—then they
start in on taxing your heirs. The only
consolation you have is that you can’t
kick on the taxes you pay after you
are dead.”
Enforcement Impossible.
Trying to picture the multifarious
requirements for enforcement that
seem to make the task absolutely im
possible, Representative Engel lists 13
specific duties which the proposed law
would require the administrator qf
veterans’ affairs, the Secretary of the
Treasury or the collector of internal
revenue to do—and as only one fea
ture of this herculean task he says:
“Think of 8 or 10 million reports
coming into an office monthly, made
by aged persons, many too feeble to
write. Think of the condition and
form of those reports. Think of the
required monthly reports from mil
lions of farmers, garage men, gas sta
tions, merchants, manufacturers,
banks, business men of all kinds, in
dividuals, corporations, townships,
counties, boards, commissions from
48 States and from the Federal Gov
ernment itself, which is not exempted
under this bill. Think of the United
States Government reporting every
transaction, pay check, and pur
chase—and paying a tax thereon.
“Think of those millions of reports
coming into an office, accounting for
every transaction from the sale of the
Woolworth Building down to a 10*
cent sale made in that building. Re
ports accounting for every dollar paid
1b salaries or wages in the whole
United States, whether it be to the
President or to a hod-carrier. Reports
accounting for every dollar of taxes
paid in whatever form by every tax
payer in America—and paying a tax
on that tax. Every interest charge, tel
ephone, telegraph, electric light and
freight bill is included.
“It is impossible to begin to de
scribe the extent of this proposed tax
biu,”—the "absolute and utter ab
surdity of it—and the impossibility ol
enforcing it.” He concludes that “you
would see many a tax collector tarred
and feathered and driven out ol
town.” 4
Congress Member
Fails to Throw
Dollar Over River
Dunn Is Stumped—Gen.
Fries Drives Golf
Ball Across.
By the Associated Press.
27.—Representative Aubert C. Dunn of
Mississippi, who thought he could
equal or better the dollar-throwing
achievements of George Washington
and Walter Johnson, failed to span the
Rappahannock River here today and
after three mighty attempts, oq all of
which the silver dollar splashed into
the water, he abandoned further ef
forts and left the laurels to his dis
tinguished predecessors.
Representative Dunn's dollars, pre
sented by the local Chamber of Com
merce, made a good start, but each
one dropped into the water, the best
throw toeing about 20 feet from shore.
Dunn was a former Alabama base
ball star.
After Representative Dunn defin
itely quit the undertaking, his secre.
tary, Lawrence Boullgny, tossed four
more dollars, three of which fell in
the water, while the fourth reached
the opposite bank but was beneath the
water line. It was recovered by a
man who dug it out of the muddy
Gen. Amos A. Fries, U. S. A., re
tired, who accompanied Representative
Dunn, introduced a new fad by driv
ing a golf ball across the river after
his first two attempts had failed.
New Dealers Fail to Reach
Agreement Over Federal
By the Associated Press.
President Roosevelt has been called
upon to arbitrate an internal contro
versy among high New Dealers over
the administration's proposed new
housing program.
The back-stage dispute—centering
around the issue of Federal contribu
tions—has delayed formulation of the
plan for slum clearance carried on
Jointly by Federal and local govern
Representatives of various Govern
ment agencies have been conferring
for weeks on the program, but have
reached no agreement on how much—
if any—the Federal Government
should contribute.
One group has contended that with
out Federal subsidies a program of
clearing slums and building new homes
within the reach of lowest income
groups was impossible. Another has
insisted the Government should go no
further than provide money at low
interest rates.
Various compromises have been sug
gested. but authoritative sources said
no agreement has been reached despite
threats of resignations from some of
those participating in the conferences.
The controversy has been carried to
I the White House. The President has
signified his desire for a slum clear
ance program, but has not approved
any specific plan. He has urged the
conferees to try again to reach an
The subsidy problem has been ac
centuated by the recently announced
governmental search for places to cut
To meet this situation, a proposal
has been advanced that instead of
granting lump subsidies, the Federal
Government should spread its con
tributions over a number of years.
After a recent White House confer
ence, Senator Wagner, Democrat, of
New York, was quoted as forecasting
the program might cost from $250,
000,000 to $400,000,000 a year. The
White House quickly denied the Presi
dent had approved any such program.
Wagner is among those who have
felt the Federal Government must sub
sidize any slum clearance program.
He has stood for a Federal contribution
of 45 per cent, in one form or another.
This, he contended would make it
possible to rent the housing units at
prices the low Income families could
Your Income Tax
Deduction (or Depreciation.
The revenue act provides for “a rea
sonable allowance for the exhaustion,
wear, and tear of property used in the
trade or business, including » reason
able allowance for obsolescence.” For
convenience, such allowance usually is
referred to as depreciation.
In claiming a deduction for depre
ciation several fundamental principles
must be observed. The deduction must
be confined to property actually used
in trade, business, profession, and tc
Improvements on real property, other
than property used by the taxpayer as
his personal residence. In general, it
applies to the taxpayer’s capital as
sets—buildings, machinery, etc.—the
cost of which cannot be deducted as a
business expense. *
A lawyer, doctor, or other profes
sional man may not charge off as a
current expense the cost of a library
used wholly in his profession, this be
ing a capital expenditure and the
library a capital asset, but he may
deduct an allowance for depreciation
based upon the useful life of the
In part of a professional man's
residence is used by him for office
purposes, a proportionate amount of
the depreciation sustained may be de
ducted, based generally on the ratio
of the number of rooms used for such
purposes to the total number of rooms
in the building.
The same principle applies If a
taxpayer rents to others a portion of
his residence. Under such conditions,
however, the taxpayer must include
in his gross income the rentals re
ceived. • • '
Taxi Driver Says He Saw
Dr. Condon Talk to Man
Resembling Note Sender.
By the Ataoclited Pres*.
TRENTON, N. J„ February 27.—
Gov. Hoffman today questioned the
identification by Joseph Perrone, taxi
driver, of Bruno Richard Hauptmann
as the man who hired him to deliver a
note to Dr. John F. Condon prior to
the payment of ransom for Charles A.
Lindbergh, Jr.
Perrone delivered the note to Con
don the night of March 12, 1932. A
man in Gunhill road, the Bronx, pave
it to him. It contained Instructions to
Condon how to make contact with the
At Hauptmann's trial Perrone said
the man who gave him the note was
The statement cited by the Governor
was signed by Detective Claude Pater
son and Sergt. A. Zapolsky of the State
Police. 4
“• * • Perrone,” it said “stated that
a lew days alter ne auenueu uie
Bronx County grand jury he had taken
a passenger to City Island and there
had observed Dr. Condon talking to
a man who he thought was the man
that gave him the note.”
Wilentz Makes No Move.
The Governor made his announce
ment almost at the moment Attorney
General David T. Wilentz. Haupt
mann's chief prosecutor, was saying at
his Perth Amboy home he would make
“no move at all” to combat the Gov
ernor's renewed attacks on the evi
dence against Hauptmann.
The Governor flatly questioned Per
rone’s identification of Hauptmann.
On February 17, 1934, seven months
before Hauptmann’s arrest, the Gov
ernor said, Perrone was approached
by a man at Jerome avenue and
Moshulu parkway, the Bronx. The
stranger, who spoke with a German
or Scandinavian accent, asked the di
rection to 36 East Gunhill road.
Perrone told him, the statement to
police said, there was no such num
ber on East Gunhill road, but one in
West Gunhill road. Perrone thought
at the time the man looked like the
one who gave him the ransom note
nearly two years earlier.
He described the man to police as
about 38 or 39 years old, about 5
feet 5 inches tall, with a light com
plexion, light hair turning gray, one
or two upper front teeth missing.
The police report of this was dated
March 1, 1934.
Other “Resemblances” Noticed.
Perrone, the Governor said, upon a
number of different occasions picked
out persons whom he said greatly re
sembled the man who gave him the
note and in no case was the descrip
tion similar to that of Hauptmann.
The Governor also remarked that
Perrone had indicated an interest tn
a man who formerly lived near Prince
ton and who was arrested in the Bronx
for thefts in New Jersey.
The Governor said Perrone once told
oci|b. cja^jyjior^y uiu mnu icouuuicu wu.
note sender more than any other
suspect. Gov. Hoffman said he hac
seen pictures of the man and that he
resembled Hauptmann no more thar
| Condon's bodyguard, A1 Reich, a
; former heavyweight pugilist, "re
i sembles one of Singer's midgets.”
Wilentz conferred secretly at Perth
| Amboy with Prosecutor Anthony M
Hauck, jr„ of Hunterdon County, anc
Col. H. Norman Schwarzopf, head ol
the State police.
Their discussion, he said, coveret
everything from the most recem
charge that part of the evidence link
ing the condemned Hauptmann to th<
ladder was ‘'framed.” A report of thii
will be made shortly to Gov. Hoffman
Officials declared that the investiga
Holes Declared Made Later,
tors claimed they were able to show
through violet ray tests that four nai
holes in joists in Hauptmann’s Bron;
attic—holes which the State con
tended matched four holes in ‘‘rail 16'
of the ladder—w’ere made about th<
time of Hauptmann’s arrest.
Attorney General David T. Wilentz
after a conference with other prosecu
tlon officials in his Perth Amboy homi
today, said he would make "no movi
at all” to meet renewed attacks of Gov
Hoffman on the evidence agains
Wilentz said he and Pro6ecuto:
Hauck of Hunterdon County and Col
H. Norman Schwarzkopf, head of th<
State Police, had discussed ‘‘every
thing” about the case.
The Governor himself continued hi
attack on the testimony of Millarc
Whited, Sourland lumberjack, one o
the chief identification witnesse;
against Hauptmann. Whited w&
questioned Saturday by the Governor
Prosecutor Anthony M. Hauck, jr., o
Hunterdon County and Hauptmann’;
chief counsel. C. Lloyd Pisher.
In New York last night the Gover
nor made public excerpts fron
Whited’s examination, which he sub
mitted as "proof that Whited wa;
promised part of the reward ($25,001
offered by the State) if he identifie<
Hauptmann, and that he was showi
a number of photographs upon dif
ferent occasions before he went t<
New York.”
Whited was the sole identiflcatioi
witness at the Bronx extradition pro
ceedings, and testified at the trial h
i saw Hauptmann prowling in the woods
near the Lindbergh estate shortly be
! fore March 1, 1932, the date Col.
: Charles A. Lindbergh's son was kid
Promised $35 a Day.
The Governor said last night Whited
told him he was promised $35 a day
and told by a State trooper, named
Wolf, that he would be entitled to
one-third of the reward. From the
time he identified Hauptmann until
the trial opened, the Governor said
Whited told him, he was watched by
the State police and a State trooper
stayed at his home, even riding his
wagon when he went for logs.
"This would make it appear.” said
■ the Governor, "that the prosecution
I was not very certain of its witness.”
The defense attack on the ladder.
,: it was asserted, will come as a result
| of a study made by Dr. Erasmus M.
! Hudson. New York physician and fin
1 i gerprint witness for the defense, and
; ■ Robert W. Hicks, Washington criml
| nologist.
At the trial Dr. Hudson testified he
recalled only one nail hole in “rail
16.” In rebuttal the State called a
Federal employe from Washington who
had examined the ladder shortly after
; the kidnaping and had made photo
1 graphs showing four holes.
Arthur Koehler, Federal wood ex
pert, who also swore there were four
i holes, has been apprised of the new
l examination of the ladder evidence
’ and may be asked to add what he can
i to his Flemington testimony, is was
i learned.
; Desires to Recall Jafsie.
Coincidental with these new dis
closures. Fisher reiterated he will seek
the return of Dr. John F. (Jafsie)
' Condon for questioning, citing the
1 Bronx educator's own written word
' that he knew the man who made the
1 ladder.
1 Fisher cited a letter Condon sent a
' New York newspaper last December
1 in which he said:
"I worked assiduously to restore the
• baby, or run down the cowardly knave
who climbed a ladder which the car
i penter had planned and submitted to
• the cabinetmaker, both of whom I
» know * • *.”
—..i i i ■ --I
V egetableW agon Wrecked I
Joe Lomerico Condemns Fast Driving
After Car Breaks Cart.
j The wreck of Joe Lomerico’s vegetable wagon. Below: Joe leading
j his horse Sani back to the stable. —Star Staff Photo.
IF YOU dont want to upset the
vegetable cart, “you gotta drive
slow and look where you go!"
Joe Lomerico was positive about
this as he surveyed the wrreck of his
cart at Twelfth street and Constitu
tion avenue this morning.
He and his son Peter were on their
way to market behind their horse
Sani when an automobile came up
I from behind and caved in two wheels.
I The wagon was knocked over the curb
: and one of Sani's legs got hurt in
1 the crash.
i _.
“Bad business, said Joe, “this driv
ing fast. I always drive slow' and
stay on my side of the road. Now
my wagon is all broken. To fix it will
take one day, maybe two, maybe three.
I lose that time. I can’t sell vege
tables then, and who pays me?”
Receiving no answer, Joe grasped
the reins and started walking home.
Peter followed the limping Sani and
the broken wagon lay at the curb.
“I always look where I go,” mut
| tered Joe, “and so does Sani."
Member of Staff for More Than
Quarter Century Made As
sistant Secretary.
George W. Laird, for more than a
quarter of a century on the staff of the j
; Interstate Commerce Commission, yes
j . ..... terday was ap
pointed assistant
secretary to suc
ceed the late
Thomas A. Gillis,
who died a week
Laird, a native
of New Jersey,
entered the serv
ice of the com
mission In No
vember, 1910. He
was appointed as
sistant chief of
WKKm Im flMi me section 01
Georre W. Laird. d0Cke^Jn J“
uary, 1920: assist
ant to the chief examiner in July, 1928,
and assistant chief, section of com
plaints, Bureau of Motor Carriers, last
November 1.
He lives at 111 Lincoln street, Be
Women Voters Hear Discussion
of Divorce Court Proposals.
Louis Ottenberg, chairman of the
Budget Committee of the Community
Chest, addressed members of the Dis
trict League of Women Voters last
night at the club of the American As
sociation of University Women, 1634
I street.
He discussed proposals to provide
a “friend of the court” for extra coun
sel in divorce cases where children
are involved.
Meets on routine business. Agri
culture Committee studies cotton trade
practices. Interstate Commerce Com
mittee analyzes movie block booking.
Continuous debate on amendments
to Agriculture Department supply
bill. Patents Committee continues
bearing on copyright bill.
Not expected to be in session.
Interstate Commerce Committee
continues hearings on block-booking of
moving pictures.
Military Affairs Committee regular
weekly meeting.
Continues debate on agriculture ap
propriation bill.
Ways and Means Committee begins
hearings on a bill to consolidate in
vestigating agencies in the Treasury
Department at 10 a.m.
Appropriations Subcommittees con
tinue hearings on supply bills for State,
Justice, Commerce, Labor and Navy
Departments at 10 a.m.
Special Traffic Subcommittee of
House District Committee resumes
traffic Investigation at 10 aon.
The Rational Scene
MR. OWEN D. YOUNG is replete with highmindedness, nobility
and poetic quotations. Nevertheless, his homily on intem
perate radio utterances loses point when he omits Mr. Farley,
' Mr Ickes, Mr. Hopkins and many others from
his mfcntion of offenders.
Whenever those gentlemen get on the air they
assail any one who disagrees with them by every
derogatory name, term and epithet their in
genuity, plus that of the publicity experts, can
conjure up. “Bandit bankers,” “leeches and
bloodsuckers,” “money-bags of Wall street” are
examples of “exhuberance" that Mr. Young
But his mo6t conspicuous omission is the
President. Mr. Roosevelt has set the pace. Be
ginning with his call to “drive the money
_ m__ ti.A fcanMnlii" ha Ho* anntinna^ tha
tuausvio »**v *-*- ---
Alls* Uinwik. exploitation of “passion and prejudice” that Mr.
Young deplores. Yet, Mr. Young's only allusion to him is a bare and
gentle statement that his appeal “for the choice word and the measured
phrase” is made “even to the President.”
The able industrialist and radio official may be temperate, but he
certainly has his favorites.
toossnsbb use.)
?er Diem Groups on 5-Day
Week Get Benefit With
out Working.
An obliging calendar and a series *
cf statutes running back 50 years will
cause the Government to pay out sev
eral hundred thousand dollars to per
diem employes this year for “work”
that they don’t do.
This was brought out yesterday in
decisions by Controller General Mc
Carl, covering Navy Yard employes
and certain Lighthouse Service groups,
who are on a five-day week—from
Monday to Friday—but who, this year,
will get paid, in addition, for three
holidays falling on Saturday—Febru
ary 22, May 30 and July 4. It was
said the principle would hold good also j
for other five-day establishments, in
cluding the Bureau of Engraving.
Under so-called gratuity pay stat- ^
utes passed as early as 1885, per diem
workers are entitled to wages for New
Year, Washington’s birthday. Memo
rial day, July 4, Thanksgiving and
Christmas, which are statutory holi
If they actually work on those oc
casions. they get double pay. The
40-hour week law passed in March,
1£T34, allowed inauguration of the
five-day week, customarily ending on
Friday, and when holidays began to
show up on Saturdays officials im
mediately turned to McCarl to see
if the gTatuity pay still held, despite
the fact that the non-work day
would come after the work week had
been completed. His answer was in
the affirmative, the rate of gratuity 4.
pay being fixed at the minimum daily
The Government Printing Office
and Panama Canal are not so lucky,
however. By administrative action,
their work week has been spread over
six days, so they get no extra pay
for not working on Saturday, which
is a part of the 40-hour schedule.
The Printing Office was advised to
this effect in another decision today.
The six-day schedule at the Printing
Office is an emergency measure
adopted for the duration of Congress.
Officials Meet Tonight in Star ^
Building to Consider National
Event in Baltimore.
i I
Plans for Washington's participa
tion in the National Flower and Gar
den Show in Baltimore, March 14-22.
will be outlined at 7 o’clock tonight
at a joint meeting of Washington
and Baltimore officials in room 204,
Star Building.
Local representatives will Include
Mrs. Robert Woods Bliss, Curtis
Hodges, chairman of the National
Committee sponsoring the show; Gran
ville Gude and J. J. Chisolm. Wash
ington members of the Executive Com
mittee. and several officials of the
Agriculture Department and th
Washington Gardens’ Club.
Arrangements to be made induc e
the co-ordination of Washington ex
hibits at the national show and plai..
for disbursing a portion of the block
of 50,000 advance tickets. More than
30.000 Washingtonians are expected
to attend the show, which is being
held in Baltimore this year for the
first time.
The total value of flowers to be
displayed has been estimated at $1,
250.000 and prizes totaling $30,000
will be awarded.
--• —
Remains of Chief of Bureau of
Wild Life Will Be
The body of George M, Wright, chief
of the Bureau of Wild Life of the Na
tional Park Service, who was killed in
an automobile accident Tuesday near
Deming, N. Mex., will reach here to
morrow for cremation. The ashes will
later be sent to California, where Mr.
Wright was born in 1905. He lived
at 2824 O street.
Mr. Wright was riding with Roger
W. Toll, superintendent of Yellow
stone National Park and a frequent
visitor to Washington, who also was
killed. He will be buried tomorrow in
Denver. Colo.
The automobile carrying the officials
was in collision on a gravel highway
with a car driven by Thomas Henry
Ohmar, New Milford, Conn., which
careened across the road after a blow
Others Will Talk Next Thursday
in Interest of Lower
Housing Costs.
Chairman King of the Senate Dis
trict Committee and Representative
Ellenbogen of the House District Com
mittee will be principal speakers at
a mass meeting next Thursday night
in Central High School in the in
terests of lower rents and low-cost .
housing, it was announced today.
There will be other speakers, rep
resenting organized labor and the
District Medical Society.
The meeting is under auspices of
a Committee on Rents and Low-cost
Housing, of which Walter L. Disbrow
of the Machinists' Union is chair
man, and Henry Rhine of N. R. A.
Lodge, American Federation of Gov
ernment Employes, executive secre
tary. The delegation to the Rent
Committee from the Central Labor
Union is headed by Harry Thompson.
Marriage Licenses.
James J. Lodge. 2.1. and Yetta Sandler,
20. Both ol Baltimore. Md.; Rev. A. F.
Charles S. Schnug. 22. and Margaret
Fleming 23. both oi Baltimore. Md.:
Rev. H M. Henni*.
Robert W. Adkins Jr. 18. and Rebecca F.
Bracfby. 22 both of Boulevard. Va.; Rev.
Gaither Holt. 42. and Elizabeth Hall. 28.
both of 635 Florida ave.: Rev. P. L.
Moore. . .. .
Rufus M. Callis. 30. Richmond, Va.. and
Esther E. Tyree. 25. 1820 12th at.: Rev.
J. F Whitfield
John Manuel. 30 828 23d at., and Annie
Simms 32. 2312 1 st.: Rev. J. T. Harvey.
Freddie C. Duckett .15. 1611 10th at., and
Cennia E Alston 36. 1724 Corcoran at.;
Rev. James Pinn. .
Leonard M. King 22. 2138 H at., and
Violet T. J. Angell. 22. 2418 Pennayl- *
vania ave.: Rev. J. D. Buhren.
John C. Morgan. 4.1. 817 11th at., and
Louise R. Wallace. 28, 4921 44th at.»
1 Judas B. & Mattingly.
« *
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