Evening star. [volume], May 14, 1936, Image 1

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

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WEATHER. m
<u. a weather Bure.u poreceet.) ■ The onJy evening naDer
Fair and continued cold tonight; to- S ^ I ■ • ti7__i • _,
morrow lair, rising temperature; moder- MI ln Washington With the
ate northerly winds, becoming variable. M I A ^ Associated PreSS NeWS
yesterday; lowest, 848. at 6:45 a.m. today. | Li Ty I I wf and Wirephoto Services.
Full report on Page B-17. I
a, . |, .7 i ti | | d to S Yeaterdajr a Circulation, 137,232
Closing New York Markets, rage 10_^ < ton ' retBrni not ret received.)
No. 33,616. • WASHINGTON, D. C., ‘THURSDAY, MAY 14, 1936.—SIXTY-FOUR PAGES. *** <*> M..n. A..oci.t.d Pr..., TWO CENTS.
LOYALTY TO ITALY
IN COUP PLEDGED
BY SCHUSCIGG
Austrian Chancellor, Ousting
Von Starhemberg, Sends
Assurance to Ally.
LEADER OF HEIMWEHR
NOT TO FLY TO ROME
II Duce's Cooling Friendship for
Home Guard Leader Suggested
in Vienna.
BACKGROUND—
Reichsfuehrcr Hitler, in Berlin,
long has looked southward to Vi
enna, desiring “anschluss,” or
union of Austria with Germany. II
Duce Mussolini, in Rome, has given
cooling support to Prince Ernst von
Starhemberg, whose rise to Aus
trian leadership, backed by his
Heimwehr, a private army of 150,
000 men, led last October to his
appointment as vice chancellor
and “co-dictator" with Chancellor
Kurt Schuschnigg.
.(Copyright, 103B, Dy the Associated Press.)
VIENNA, May 14.—After removing
Prince Ernst von Starhemberg as vice
chancellor of Austria, Chancellor Kurt
Schuschnigg's first act today was to
promise Austria’s loyalty to Italy.
Having thrown the powerful prince
cut ot the government, the scholarly
Schuschnigg rushed an assurance tc
Premier Mussolini that Austria re
mained Italy's loyal ally. Indications
were that Schuschnigg's move may
have improved the friendly relations
already existing between the two na
tions.
Reports spread through high quar
ters that II Duce was actually in no
hurry to see Von Starhemberg, al
though the prince, wealthy head of
the Heimwehr (home guard), long
had been regarded as a close friend
of the Italian leader.
Airplane Trip Canceled.
These reports were accentuated
when Von Starhemberg suddenly can
celed an airplane passage to Rome
and his headquarters announced he
would leave by train instead for the
Italian capital tonight. Heimwehr of
ficials said they were not even sure
the prince would see Mussolini, ex
plaining that he Was going there pri
marily to see a foot ball match next
Sunday.
Officially Von Starhemberg now
holds only one single post under the
tovernment, that of sports front leader.
Observers who said they had noticed
the relations between Von Starhem
berg and Mussolini cooling recalled
that the prince in 1929 received an as
signment to make Austria Fascist.
The progress was too slow to suit Mus
solini, and the Fascist idea gained
little popularity despite the large ex
penditure on the project under Von
Starhemberg.
Austria Likes Pact With Italy.
It was emphasized at the chancel
lery that Italy’s interest in maintain
ing Austria's independence was as
great as ever, and that Austria re
mains firmly convinced of the value
of the independence pact with Rome.
Austria was quiet but tense, the
populace recalling apprehensively
that Von Starhemberg declared in a
(See AUSTRIA, Page 3.)
JEW-ARAB TENSION
GROWS IN PALESTINE
Fears of Outbreaks Beyond Walls
of Jerusalem Bring British
Troops.
JERUSALEM, May 14 (Palcor
Agency).—The tension into which the
old City of Jerusalem was plunged yes
terday with the killing of two Jews
spread wider today when an Arab was
found dead following an Arab demon
stration, which police dispersed.
Fears of further outbreaks extended
beyond the boundaries of this old city,
which are under heavy police guard,
to the new districts of the city built
Up during the past decade.
CAIRO, Egypt. May 14 LP).—Addi
tional British infantry reinforcements
were sent to Palestine from Cairo to
day. Recent reinforcements total
2,000, making 4,000 British troops now
In Palestine. Their presence is re
quired by the present Jew-Arab ten
sion.
TRANSATLANTIC FLIGHT
IN BALLOON PLANNED
Demuyter to Attempt Trip Prom
North America to Norway
in Spherical Bag.
arytht Associated Press.
PARIS. May 14.—The Belgian avia
tor M. Demuyter. twice winner of the
Gordon Bennett Cup, today announced
plans for a Transatlantic flight in
a spherical balloon, starting from a
point on the North American coast.
He said he expected to land in Nor
way within 80 or 90 hours after the
take-off.
The balloon, Demuyter asserted,
would have a capacity of between
8.000 and 10,000 cubic meters, "with
an extremely light basket.”
M. Charlier, a French engineer, will
Accompany him, Demuyter said. His
announcement, appearing in Le Petit
Journal, did not set a date for the
attempt.
DUCE’S SONS GO HOME
Two Leave Eritrea After Receiv
ing Promotion to lieutenants.
ROME, May 14 (/P).—Premier Mus
lolini’s aviator sons, Vittorio and
Bruno, who have been promoted to
the rank of Ueutenants, left Maasaua,
Eritrea. Tuesday aboard the Conte
Verde, homeward bound, it was an
nounced today.
I
Allenby, Jerusalem Hero, Dies;
• Last of Britain’s War Chiefs
- I
Marshal Led Reconquest
of Holy Land From
Turkey.
By the Associated Press.
LONDON, May 14.—Lord Allenby,
Britain's soldier hero of Palestine,
died suddenly today at his Kensing
ton home. He was 75 years old.
The last of the empire’s outstanding
military leaders of the World War, the
viscount and field marshal led the
triumphal allied entry into Jerusalem,
but lived to renounce ‘‘the glory of
conquest with its gain of Dead Sea
fruit.”
That renunciation came less than a
month ago. when, at his installation
as lord rector of Edinburgh University,
be advocated establishment of a
world police force for the maintenance
of world peace.
That, too, was his last public ap
pearance.
Except for his functions on state
(See-ALLENBY, Page 4.)
LORD ALLENBY.
Stoll Kidnaper Rushed to
Penitentiary to Begin
Life Sentence.
BACKGROUND—
Thomas Robinson, twice inmate
of insane asylums, collected $50,
000 ransom for release of Mrs. Alice
Speed Stoll in October, 1934, and
since then managed to elude De
partment of Justice agents as he
spent the ransom money. Captured
Monday in Glendale, Calif., where
he had. been living for several
months, he was rushed to Louis
ville, Ky., and, on his plea of guilty,
sentenced to life.
__
By tne Associated Press.
ATLANTA. Ga„ May 14.—The last
of the kidnapers of the “big money”
abduction era of 1933-35 to be captured
was hustled, under heavy guard to
day, into the steel and stone of Atlanta
Federal Penitentiary.
Thomas H. Robinson. Jr., 29, under
sentence of life imprisonment, was
i brought to Atlanta from Louisville,
! Kv., at 9:35 (E. S. T.) today after he
pleaded guUty to a charge of kidnap
ing Mrs. Alice Speed Stoll in 1934 for
$50,000 ransom.
His arraignment and sentencing by
Federal Judge Elwood Hamilton came
within 48 hours of his arrest by Fed
eral agents in Glendale, Call!.
Kidnaper Smiles.
Tieless and dressed in a tan suit,
Robinson smiled faintly but said noth
ing on his removal from the train.
He was handcuffed to a marshal.
Federal agents deployed In a circle
about him and marched swiftly
j through a silent crowd of approxi
mately 100 persons to a side entrance
of the station, where a motor convoy
awaited.
There was no demonstration.
Robinson was thrust into the middle
car of three lined up at the curb. Four
agents seated themselves with him and
the others entered the front and rear
| machines.
Officer Chides Robinson.
As Robinson was sandwiched be
tween the G-men in the rear seat, W.
O. Bullard, an Atlanta patrolman,
chided the notorious female imper
sonator with:
“You don’t look like a woman.”
Robinson laughed and touched the
brim of his hat.
"To tell you the truth,” he said,
“I’m not.”
Sirens screamed and the procession
moved swiftly to the prison gates.
Robinson was checked in at the prison
at 9:50 a.m.
Not a gun was in sight outside the
j penitentiary.
Robinson wnvpd and jsmilpd in nfflnar.
j (See ROBINSON, Page 5.)
SOVIET PATROL CROSSES
BORDER, JAPAN REPORTS
40 Cavalrymen Confront Nippon
forces in Manchukuo,
, Officer Asserts.
By the Associated Press.
HSINKING, Manchukuo, May 14.
—Japanese general headquarters re
ported today that a frontier patrol
made up of Japanese and Man
chukuoan troops confronted 40 Soviet
cavalrymen across the border south
west of Vladivostok.
The communique did not state
whether there was a fight. The point
was the scene of a clash March 26.
The situation followed a clash yes
terday, when Japanese and Man
chukuoan troops alleged they had
found Russian cavalrymen in Man
chukuoan territory and, firing on
them, drove them across the frontier.
No casualties were mentioned.
In another communique the Jap
anese headquarters said a protest
would soon be made against an Outer
Mongolia incident of May 8, when
a Mongolian airplane was alleged to
have landed in Manchukuo, east of
Lake Bor. The flyers, it was stated,
questioned inhabitants and returned
to their own territory.
,
HINDEN8URG ENDS
TRIP IMRECORD
Flies to Home Port in 49
Hours and 3 Minutes.
Eckener Snubbed.
(Copyright, 1936 by the Associated Press.)
FRANKFORT - ON - THE - MAIN
Germany, May 14.—Surpassing all
records lor both eastward and west
ward commercial crossings of the At
lantic, the giant German Zeppelin
Hindenburg touched ground at 5:45
a m. (11:45 p.m. Wednesday, E. S. T.)
to end Its first flight from America.
The official flying time for the voy
age from Lakehurst, N. J„ was given
as 49 hours 3 minutes, during which
the great air cruiser covered 6.67C
kilometers (4,168.75 miles).
With its landing mechanism func
tioning perfectly, the Hindenburg
rested in its new hangar by 6:10 a m
(12:10 a.m. E. S. T.), signalizing com
pletion of its maiden round-trip be
tween Germany and the United
States with passengers, mail anc
freight.
Crowd Greets Airship.
Despite the early hour of its ar
rival, a great crowd gathered at the
airdrome and a Nazi band played
lusty airs.
(The Hindenburg’s return flight Ir
official flying time of 49 hours 3 min
utes bettered the previous record foi
a Ughter-than-air craft voyage fron
America to Germany, set by the Oral
Zeppelin In August, 1929, with a 54
hour trip. The previous westwart
record was 81 hours 17 minutes, sei
by the Loe Angeles. The French linei
Normandie holds the ship record o:
4 days 11 hours 42 minutes.
Municipal officials arranged a City
Hall reception in honor of Dr. Huge
Eckener, president of the Zeppelir
Co., and Capt. Ernest Lehmann, com
mander of the Hindenburg.
The Hindenburg, which lifted int(
the air from Lakehurst at 10:27*;
p.m. E. S. T. Monday, followed ap
proximately the same course it tool
over the northern steamship route or
its Westward flight which ended las!
Saturday at Lakehurst.
After two days over the Atlantic
the airship crossed England 30 mile;
north of London last night, swunj
over the Netherlands and passed dowr
the west border of Germany to Frank
t0T}- .. *.
JuoiiUJUiK views, uenuru wy uaiui
von Buttler, chief of the airdrome
stood by throughout the night. Thi
Hindenburg arrived over its base a'
4:55 am. (10:55 p.m„ Wednesday
E. S. T.), and circled about befori
landing efficiently 50 minutes later.
Dr. Eckener and Capt. Lehmani
were given cups from State Gov
Jacob Sprenger in the official recep
tion, but Eckener was moved agaii
into the background.
The Nazi governor, in the pres
ence of other state functionaries
turned to Lehmann and welcome*
him as commander of the Hindenburg
'The captain, speaking in the nami
of the Hindenburg’s crew, replied t<
the greetings during the reception.
Despite previous reports from Zep
pelin headquarters that all would b<
well when the veteran “admiral o
the air” returned, Eckener’s name wa
omitted again from the report of thi
official German news agency anc
newspapers which printed an inter
view with Lehman.
pekener Ignored.
The absence of Dr. Eckener’s nam<
from the press was Interpreted b;
informed sources as a clear indicatioi
the German air pioneer was still ou
of favor after his recent difference!
with the propaganda ministry.
The official news agency published
a lengthy report of the addresses b;
Gov. Sprenger and Capt. Lehmann
but said only that silver cups wer*
given to “gentlemen of the Zeppellr
management” in commemoration o
inauguration of air and passengei
service to the United States.
The Hindenburg’s hangar was be
sieged by thousands of persons seek
ing to view the great Zeppelin.
The ship was the main attractior
for visitors who had come here for ar
agricultural exposition.
The city fathers planned anothei
reception for leaders of the crew oi
the Hindenburg.
-*
. By the Why—
An Intimate, Chatty Column Revealing the
Personal Side of Washington Society,
Written by Beth Blaine.
Appearing Today on the Society Pages of
THE EVENING STAR
i I
FARMER KIDNAPED
BY FIVE OKLAHOMA
CONVICT FUGITIVES
Prison Guard Hostages Are
•
Feared to Have Been
Slain.
SPLIT IN TWO PARTIES,
FELONS ELUDE CHASE
Fosses Spread Out Over Kiamichi
Mountains as Quarry Heads
for Arkansas Border.
BACKGROUND—
Warden Roy Kenny's "merit sys
tem" at Oklahoma State Peniten
tiary offers, by series of rewards,
inducements to convicts to obey
rules and fit themselves for re-en
trance into society. All forms of
capital punishment have been abol
ished. "Convicts are like college
boys—only they play rougher," said
Kenny recently. The rules of
leniency, however, were not applied
to group of hardened criminals who
engineered yesterday’s bloody
break.
By tne Associated Press.
MCALESTER. Okla., May 14.—Eight
desperate fugitives of a bloody prison
break roved the Southeastern Okla
homa hills today, eluding posses who
sought to capture them and rescue
two guards and a fanner taken along
as hostages.
Fear that the guards—Tuck Cope
and Victor Conn—had met the same
fate as Charles D. Powell, prison brick
plant foreman killed and tossed into a
downtown McAlester street soon
after the break yesterday, was ex
pressed by Fred Daugherty, prison sec
retary.
William Doaks. farmer, was ab
ducted early today by five of the
convicts after they had forced Mrs.
Doaks to prepare breakfast for them
at their home near Pittsburg, about
25 miles southeast of here.
Gnards Feared Thrown Out.
This group, which had held the
guards prisoner, was seen later at
Blanco with only one hostage, who
was believed to be Doaks, Daugherty
said. He said it was feared Cope and
; Conn had been thrown from an auto
i mobile by the felons, who were travel
ing in two cars.
Wiley Napier, night marshal at'
Antlers. Kiamichi Mountain town
southeast of here, reported to posse
men that he pursued two of the con
victs 8 miles west before he lost
the trail of their speeding motor car.
The two carloads of fleeing convicts
were heading toward the Arkansas
border, Daugherty said reports indi
cated. Posses spread out over the
Kiamichi Mountains in an attempt
, to head them off.
Fifteen prison guards searched the
hills near Antlers for two convicts
reported seen there at 2:30 a m. today,
i Warden Roy Kenny said. Blood
hounds were on the trail. Another
posse hunted the brush around
Stewart for one or more reported
sighted there.
One Hostage Wounded.
From one of the recaptured
prisoners, retaken after the knife
1 flashing break from the prison brick
yard, the warden learned that one of
the two hostage guards, Cope, was
wounded.
The warden questioned Jerry String
fellow. 27, serving 25 years for robbery.
"I heard Cope say he was shot,” the
warden quoted Stringfellow as saying,
1 “and he asked them to throw him out,
■ like they did Powell.”
Powell was shot through the head
and tossed out of the automobile as
' the convicts fled. Another guard, W.
■ W. Gossett, was wounded.
Probable Leaders Named.
Four long-term convicts, named by
Kenney probable leaders of the break,
were:
[ Claude Beavers, serving 25 years for
. robbery; Archie Herring, serving 10
! years for robbery; Jess Cunningham,
serving life for murder, and Bill An
derson, serving 27 years for robbery.
Warden Kenny described the fugitives
i as “a hard bunch, among the toughest
! we had here.”
! Their plot well laid, the two dozen
'■ desperate men—isolated from 5,000
others because they were more hard
ened—chose the noon hour yesterday
to come out with the knives and crude
dirks they had made.
1 The scene was the prison brick
yard, a mile northwest of the main
1 prison. The yard is surrounded by a
- wire fenoe patrolled by guards. The
1 entrance is between two brick towers,
also manned by guards.
Knives Are Flouished.
Inside at the time of the break were
I Powell and three guards, Gossett,
Conn and Cope. They were at lunch.
The convicts slipped down an alley
I way, through a blacksmith shop and
into the dining room. They brandish
ed knives, overpowered the guards
and marched them out through the
alleyway. There the convicts seized
the men by the arms, a prisoner on
each side of the four men. A third
convict held a knife at the throat
(See PRISON, Page 2.)
U. S. LOAN TO CHINA
Shanghai Hears $25,000,000 Will
Be Extended.
SHANGHAI, May 14 </P).—Chinese
financial circles here reported todaj
that recently completed Sino-American
financial discussions in Washington
had resulted in an agreement wherebj
the United States will extend a $25,
000,000 loan to China. The monej
would be In United States dollars.
Sentenced for Treasoq.
BERLIN. May 14 (IP).—Two Czech
citizens were condemned to a peni
tentiary today for “treason against
the German 8tate.”
A people’s court passed the sent
ences of life and eight yeaers respec
tively, against Alfons Boehm of Pod
mokly and Josef Boehm of Dedn.
A
/TJopejmeA
/ NEW DEAL \
LEAVES NOTHING S
AforTORIES^L,
/JUST ONE >
( Little STATE,
V PLEASE'
^
Democratic Leaders Gloat
in Defeat of Frazier
Lemke Measure.
BACKGROUND—
Inflating the currency to increase
America’s riches is a panacea often
and vigorously advocated in Con
gress since the advent of the New
Deal, but frowned upon by New
Deal leaders. An inflationary bonus
measure was stalled off and an in
flationary authority granted the
President in the A. A. A. bill of 1933
was never employed. For a year
the Frazier-Lemke bill was a threat
of flat inflation. A few days ago
a vote was insured by completion
of a House petition.
By the Associated Press.
Democratic leaders pointed to
day to the fate of the Frazier
Lemke farm refinancing bill,
smashed down in the House, as
a sure sign that “there will be
no inflation.’*
In the defeated camp. Representa
tive Lemke, Republican, of North
Dakota, who had labored five years
for the bin to print *3,000,000,000 in
new money to refinance farm mort
gages on easy terms, said the issue
would be carried into the front lines
of the political wars. He also an
nounced it would be reintroduced to
day in the hope legislators might
“repent.”
Smiling grimly, he received the con
dolences of his friends over the 235-to
142 beating handed the bill yesterday
amid the whoops of Its jubUant
opponents.
"It wasn't so bad,” Lemke said.
"We'll get back here next January,
and there won’t be quite as many
familiar faces as there are now—at
least not from the farm States.”
Strong Political Issue.
When reporters asked whether he
expected to make a strong political
issue of the bill. Lemke said:
“Absolutely. It already Is.”
A decision as to just where he per
sonally will carry on the campaign
against enemies of the measure, Lemke
said, must await a check of how the
voting went on passage.
After nearly seven hours of the
most violent battling witnessed on the
floor this session, 173 Democrats and
62 Republicans roared their disap
proval of the bill. Three Farmer
Laborites, seven progressives, 27 Re
publicans and 105 Democrats lined up
behind it.
Opponents hammered it as infla
tionary; advocates said it would pre
serve the homes of the Nation’s
farmers.
Up to the point of the final ballot,
some observers thought it was any
body’s fight, although Democratic
chieftains had insisted from the start
that the bill would be crushed.
The measure would have authorized
issuance of 1V2 per cent bonds to re
finance existing farm debts over 47
years at 1% per cent interest. If the
bonds did not sell, new currency up to
$3,000,000,000 would have been
printed.
Chairman O'Connor of the Rules
Committee, which was forced to give
up the legislation when a petition
was signed by 218 members to take
it to the floor, described the demise
of the bill, at least for this session,
as:
"The most reassuring message
given to the country by this ad
ministration.
n..i. &_
“It definitely assures that there
will be no inflation. If big business
has been waiting for evidence to re
store the confidence they talk about,
this should be one big evidence of
the stable attitude of this administra
tion."
In a desperate effort to rally more
votes behind the bill, its sponsors of
fered one amendment after another
in the House yesterday.
One would have limited loans to
80 instead of 100 per cent of the
value of their farm lands. Another
eliminated a provision for loans on
live stock.
These were accepted. But the ex*
pected votes failed to show up.
Lemlce said the bill would be re
introduced today as amended, and if
the session lasted long enough, the
Agriculture Committee would be
asked to hold hearings on it.
“After the House discovers its
mistake,” he said, “I hope It will re
pent."
Ron Can on toga A-t.
4
Britain to Make
30,000,000 Masks
For Gas Defense
Official Announcement
Says Equipment Will Be
Provided for Civilians.
Bv the Associated Press.
LONDON. May 14.—Geoffrey
Lloyd, undersecretary of the home
office, announced today that the
British government plans to pro
duce 30.000.000 gas masks to safe
guard civilians against any type of
gas in war time.
He told questioners In the House
of Commons that the final detign for
the respirators had not been decided
upon, but assured the members all
would be of British manufacture.
THREE BIG GROUPS
IN FUNDS BATTLE
Tugwell Invited to Tell Re
settlement Needs—W.P.A.
and P.W.A. Push Claims.
BACKGROUND—
The issue which New Deal op
ponents find most palatable is re
lief. The same question has long
divided the Roosevelt family
against itself, with the Hopkins
clique advocating small jobs for
many men and the Ickes circle de
fending the theory of large works
of more lasting value, but with
smaller employment possibilities.
Hopkins won in the 1935 14.800.
000,000 appropriation, and he
seemed to have won in the current
$1.500,000,000 struggle until Tug
well, who up to now has drawn his
money from Hopkins on executive
order, leaped into the breach.
BULLETIN.
A warning that the Resettlement
Administration will have to be ter
minated unless additional funds
for it are provided by Congress
or President Roosevelt by July 1
was given a Senate Appropriations
Subcommittee today by Rexford
Guy Tugwell, administrator.
By tne Associated Press.
The struggle centering about the
proposed *1,425,000,000 relief appro
priation became a three-cornered one
today as Rexford G. Tugwell was in
vited to Capitol Hill to testify about
future financing of his Resettlement
Administration.
A bloc of legislators backing Tug
well's agency carried on a drive to
induce a Senate Appropriations Sub
committee, now considering the reliel
bill, to make specific provision for
funds for R. A. Otherwise, they
contended, its money would run out
July 1.
Use for W. P. A. Favored.
President Roosevelt and Harry L
Hopkins, head of W. P. A., have fa
vored turning virtually all of the
*1,425,000,000 over to Hopkins to
handle.
Senator Hayden, Democrat, of Ari
zona already has ofiered an amend
ment to expand the *2,364,000.000
deficiency bill, which includes the
relief fund, to provide *700.000,000
for the Public Works Administration,
headed by Secretary Ickes.
Ickes said today that if the Senate
“ <8ee RELIEF, Page A-2.)
REVENUE AGENT
SLAIN BV SUSPECT
Indiana Police Seek Two
Men in Coupe After Shoot
ing Near Hammond.
By the Associated Press.
HAMMOND, Ind., May 14.—John
R. Poster ol Marion, Ind., a member
ol the alcohol tax unit of the Bureau
of Internal Revenue, was shot and
killed today by two men he and
another agent were trailing on a
highway south ol Hammond, near
St. John, Ind.
George L. Winkler, area alcohol
administrator, said In Indianapolis
he had learned that Foster, assigned
to the Calumet area, and a Milwaukee.
Wis„ 3gent were trailing a coupe
which Foster had identified as carry
ing Indianapolis rum runners.
As the agents closed in on the car,
Winkler said, a rifle was fired from
the other car, the bullet striking Fos
ter in the heart.
Federal, Indiana and city police
throughout the Calumet area imme
diately closed all roads around the
area.
Foster joined the alcohol tax unit
January 22, 1935. He was married.
State police and men from the
Marion County sheriff's office began
checking on suspected bootleggers in
Indianapolis when the report came
that the killer's car carried license
plates with five numbers, which
identified it as from Marion County.
They said they knew one suspect
who had a "quick trigger finger” and
who drives a black coupe similar to
the one used in the slaying of Foster.
FRENCH GOLD LOSS
$181,689,000 IN WEEK
Flight of Capital Since Leftist
Victory Reveals 27 Per Cent
Decrease for Year.
By the Associated Pres*.
PARIS, May 14.—The flight of capi
tal after the Leftist victory in the re
cent parliamentary elections drainec
2.739.000. 000 francs ($181,689,000) ir
gold from the Bank of France during
the week ending May 8, a bank state
ment revealed today.
The loss, the heaviest this year, in
creased the lowering of the gold re
serves to 7,670.000,000 francs ($506,
220,000) since March 20.
The remaining gold stock, valued a
58.029.000. 000 francs ($3,849,296,000
was further reduced by the outflow o:
several hundred million francs. sai<
financial circles, before the bank's un
official restrictions on currency trans
actions last week stanched the leal
The gold in the bank's vaults, to
taling 80.283.000.000 francs on Mai
10, 1935, thus has dwindled by 27 pei
cent within a year.
The large amount of discounter
commercial and government bills re
ported meanwhile indicated that th<
bank still was heavily supplying treas
ury funds, said financial authorities
Writers warned that failure to re
strict credit might lead to inflation
thereby ‘undermining money.”
Discounts were 17,088,000.000 franc*
as compared to only 3,753,000,00(
francs a year ago.
With the banknote circulation 83,
988.000. 000 francs, the gold coverag(
is at 62.33 per cent, a drop from th(
64.85 per cent coverage of the pre
ceding week.
Origin of “Uncle Sam” Traced
By W.P.A. Writers to 1812 War
%/
An official solution to the 100-year
old mystery surrounding the origin of
the term “Uncle Sam” was announced
today at headquarters of the Federal
Writers’ Projects, after a score of re
search workers in as many cities trailed
the legend from coast to coast and
finally brought It home (again) to a
Yankee meat Inspector during the War
of 1812.
But this conclusion merely confirmed
that of th« Daughters of the American
Revolution in Troy, N. Y., who re
cently erected a monument to the in
spector and former slaughter house op
erator, one Samuel Wilson, known far
and wide to his contemporaries as
"Uncle Sam.’’
According to an early writer, who
since has been verified, the nickname
originated as "a silly Joke” in “the
midst of beef, pork, pickle, mud, salt
1
and hoop-poles.” Almost a centurj
ago this writer said, “Who knows but
a hundred years hence, some ‘learned
commentator’ may puzzle his brain U
furnish some Ingenious explanatlor
of the origin of the national ap
pelation-”
W. P. A. workers have at least
tentatively located a picture of ‘‘Uncl<
Sam" himself. The picture was tracec
to California, where it was in the pos
session of Uncle Sam's gTanddaughtei
until her decease. She willed it to i
son in Kansas City. The pictun
probably will be published soon.
Experts were uncertain todaj
whether the picture of “Uncle Sam’
might be an early tin-type or the wort
of some artist.
They felt sure, however, that the
(See UNCLE 9AM, Page 4.)
A
HARRISON REPORTS
PROGRESS ON TAX
MEASURE CHANGE
Flat Levies on Corporate
Incomes May Be Included
in Revised Bill.
MORGENTHAU GIVES
ADDITIONAL TESTIMONY
Treasury Schedules Disclose Man
ner in Which Big Corpora
tions Would Be Affected.
BACKGROUND—
To the displeasure of members of
Congress who wish for an early re
cess, so they can go home and cam
paign for re-election, the tax bill
goes on and on. President Roose
velt asked for it March 3 as a means
of paying the bonus and of honor
ing crop-control contracts to farm
ers co-operating in the outlawed A.
A. A. The House within six weeks
passed a bill conforming to the
White House wishes, but the Sen
ate Finance Committee has shown
no disposition to rush. The Pres
ident meanwhile has informed Con
gress to raise the 1300,000,000 he
wishes as it sees fit, as long as the
money is raised.
By the Associated Press.
The Senate Finance Committee, ap
parently bent on wide revision of the
House tax bill, today received Treasury
schedules through which $623,000,000
could be raised by imposing a flat tax
on corporate income, with a graduated
levy superimposed on the basis of un
distributed profits.
Chairman Harrison, after a two-hour
closed session in which Secretary Mor
genthau again was questioned, told re
porters :
"We are getting to the place where
the committee can pass on matters of
| policy.”
Harrison has sugg’ested a plan by
| which corporations would be taxed 15
j per cent on net income, with gradu
ated rates ranging up to 45 per cent
on income, in excess of 30 per cent of
the total, withheld from distribution
; to stockholders.
Declines to Quote Experts.
He declined to say whether Treasury
| experts had said his particular
formula would raise the $623,000,000
of additional permanent revenue.
“I am interested,” he said, "in get
| ting the money through a process like
| that and we found out we could.”
| The bill as passed by the House
provided merely for a graduated tax
| on corporations, based on percentages
of income withheld from distribution.
The top rate would be 42'j per cent.
Harrison disclosed that additional
figures had been received from the
Treasury on the manner • in which
big corporations would be affected by !<
the revenue bill as it now stands. One j
i set of statistics, he said, showed that
75 corporations with net income of ;
$1,000,000 or more in 1934, which paid
taxes of $27,000,000, would have paid
$96,000,000 under the House tax plan.
The chairman added that 89 “mil
lion-dollar" corporations which dis
i tributed less than 45 per cent of their
earnings and actually paid $35,000,000 'j
in taxes would have paid $78,000,000
under the House corporate tax pro
vision
Morgenthau Gave Figures.
Yesterday, Morgenthau submitted
figures to the committee which Sen
ator Byrd, Democrat, of Virginia, said
supported his contention that big
firms would be benefited and small
corporations affected adversely by the
new tax bill.
They showed that out of 600 million
dollar corporations 283 would have
paid at least 50 per cent less in taxes
and 138 would have paid none at all.
Harrison said, too, that more data
had been requested from the Treas
ury on how certain stockholders in
large corporations would be affected
by the House tax bill, with compari
sons as to tax payments under the
existing tax system and the House
plan.
James M. Landis, chairman of the
Securities Commission, testified to the
committee about the cost and time re
quired for the issuance of new se
curities by corporations. I
His testimony was in connection
with the administration contention
that small companies under the un
distributed profits tax could distribute
their earnings, thus escaping taxes,
and provide new capital through sale
of stock.
Critics of this plan contended it
would be too costly for small com
panies because of the restrictions im
posed by the Securities Commission.
Senator Couzens, Republican, of
Michigan said in a recent public
hearing that for a small company to
issue $100,000 of stock the cost in
preparing data for the commission
would be $15,000.
Landis told the committee today the
average cost of issuing stock was
about 1 per cent of the face value of
the issue, but that it averaged 1.7 per
cent for small issues and 0.6 per cent
for large. On that basis, for a small
company to issue $100,000 of new
stock, he said tha cost would be about
$1,700.
I-1
Readers' Guide
Page.
After Dark--...B-ll
Amusements-C-8-9
Answers to Questions—A-10
Comics_C-ll
Death Notices_A-12
Editorial _A-10
Finance _A-17
Lost and Found.A-3
News Comment Features .A-11
Radio .C-10
Serial Story_D-7
Short Story_D-8
Society.B-3-4 |
Sports_D-l-2-3-4 i
Washington Wayside-A-*
Women’s Features_D-5-6-7 |
I