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m. Th®onl? eyeningr paper Pair and cooler tonight; tomorrow fair 111 W ESlllIlgtOll With tilG ATS^duI>/est N.ews turea—Highest, 74, at 5 p.m. yesterday; and WircphOtO oGFVlCeS. lowest. S3, at 3 a.m. today. - r, • M V L M L, t D m ’ Yetterday’* Circulation, 136,791 Closing New York Market!} Page 10 (Some return, not ret received ) No. 33,618. gras Washington."q11^ _WASHINGTON} D. C., SATURDAY, MAY 16, 1936—THIRTY-EIGHT PAGES. »» op> M..n. Associated Pr.». TWO CENTS. TALK OF WAR DEBT PAYMENT BEARD IN LONDON CUES Influential Political Group Reported Urging Renewal of Negotiations. DIPLOMATS CITE LACK OF BUDGET PROVISION Blum Desires Erasure of ‘'Mis understanding"—U. S. Believed Ready to Listen. BACKGROUND— Under the Johnson act all loans and credits are barred to defaulting nations. France has ceased to pay her debts in December, 1932; Great Britain and the other debtors continued to pay “token payments" amounting to 10 per cent of their indebtedness, until June, 1931. Nothing has been paid since. By the Associated Press. LONDON, May 16.—The long dor mant war debts issue came to life anew today with reports that strong British leaders sought a settlement With the United States. The question was revived here just a day after Leon Blum. France's1 Socialist leader and premier-to-be. announced he would like to see the debt • misunderstanding" erased, with Paris indicating the first move was more likelv to come from London. In the background of renewed con- ! Bideration of the problem left by the World War, informed sources said, rested possibility of gaining American assistance in any general economic reorganization to help avert danger of a new war. While government and diplomatic officials scoffed at reports a new move was afoot for settlement of war debts, the Daily Herald said an ‘‘influential group” of British politicians was urg ing a reopening of negotiations with the United States. Unted States Not Approached. Authoritative sources said Britain had made no approach and had not Indicated any approach to America on the debt question, with another in stallment due June 15. Chancellor of the Exchequer Neville Chamberlain provided no money for ■war debt payment in the new budget. The debts have not been mentioned In the House of Commons since W. S. Morrison, financial secretary of the treasury, defended non-payment after general opposition criticism that the budget was balanced only because the debt was unpaid. The Herald's report of a campaign for a debt settlement, without naming the personalities involved, said they were Conservatives at present outside Prime Minister Stanley Baldwin’s cabinet, but likely to be included soon In the ministry. Cabinet Shake-up Rumored. Rumors have been current in po litical quarters of an imminent im portant cabinet shake-up. The Herald said the non-cabinet Conservative leaders were pressing Baldwin and Chamberlain to under take a debt settlement on the ground that it would facilitate American aid In any forthcoming world economic ' discussions. This newspaper Interpreted the ad dress to the American Club in Paris yesterday of Blum, leader of the Leftist ‘‘people's front” which controls the Incoming Chamber of Deputies, as an indication France was interested In such a project. Financial questions have been in cluded in proposals for a conference to reconstruct Europe’s security sys tcm after Germany remilitarized the (See WAR DEBTS, Page 7.) ETHIOPIA MISSIONS’ SAFETY FEARS RISE 60 Americans in South and South west Regions Have Not Been Heard From Recently. By the Associated Press. ADDIS ABABA, May 16.—Increas ing worry was felt today for the safety of 60 missionaries from the United States who Uve in South and Southwest Ethiopia. Authorities said they had heard nothing from them since the occu pation of Addis Ababa by the Italian Army. » There was no information that any harm had been done them, but in creasing animosity by Ethiopians against ail whites has been noted recently. The American missions are in ob scure villages, such as Gofa, Kambata, Jimma and Wolamo, which are with out communication with the capital. Runners have been dispatched to them in an effort to make contact. Maj. Norman E. Fiske of the United States Army, military observer with the Italian expedition, arrived in Addis Ababa today. WEEK TO BE FAIR, MODERATELY WARMER Tomorrow Temperature Is Expect ed to Climb to About 75—Was at 53 Early Today. The week end wiU be fair with moderate temperatures, the forecaster predicted today. This afternoon’s maximum was not expected to be much above 70, while tomorrow is scheduled to be slightly warmer, with a high marknf about 75. The mercury climbed to 74 yester day to break the unseasonably cool weather, but it slumped again this morning, reaching a low of 53 at 3 am. It A Suspect Eludes Officer in Chase Over Rooftops Leaps From Buildings in Flight After Trying to Steal Meat. Over roof tops at dawn today Po liceman S. P. Smith chased a colored man. surprised in the act of stealing meat, but his quarry escaped after two leaps to the street level—one from two stories and the other from nearly four stories. At 4:15 o'clock a taxicab discharged r colored passenger in front of John Sheahin’s butcher shop at 821 Elev enth street. The passenger rapped on the front door of 821 and it was opened to let him in. Instead of entering, however, the passenger ran up the street when he noticed Smith pacing his beat. Smith stepped over to the two-story building and. hearing noises on the roof, climbed the stairs to investigate. A colored man ran at his approach and leaped into a blind alley running parallel to Eleventh street. Smith fired two shots from the roof. His quarry mounted the fire escape in the rear of 1215 G street, a four-story building. As the policeman neared him, Smith reported, the colored man jumped to the G street sidewalk and fled. At the place where the colored man landed Smith found blood stains and glass. In the butcher shop, several choice cuts of meat had been piled up by the thief preparatory to re moval. Police today asked doctors and hos pitals to be on the lookout for a col ored man who might seek medical treatment for a bullet wound or in juries received in a fall. U. S. STUDIES MOVE Diplomats Cite Limitation by Boxer Protocol on Garrison Increase. BACKGROUND— Conquest of Manchuria and es tablishment of “independent” state of Manchukuo lent impetus to Japan's program of imperialism in Asia, dating from her defeat of China in 1S94-S. With Manchuria securely under her control and Inner Mongolia rapidly failing under her hege mony, Japan has penetrated North China, first by helping establish it as an autonomous area and note by sending 7,600 troops to her garri sons there, under pretext of pro tecting increasing numbers of Jap anese residents. China protests, but vainly. By the Associated Press. PEIPING, May 16.—United States and other foreign diplomats began a study today of the serious situation arising from Japan's strengthening of its North China garrisons which caused the Nanking government to protest to Tokio. Diplomats pointed out the Boxer pro tocal, concluded after the Chinese up rising of 1900, permitted Japan and other signatories to bring in only pro tective forces. Japan’s present North China troop strength of nearly 10,000, diplomats emphasized, was sufficient to occupy strategic airfields, railroad stations and Great Wall passes. _A.X__I4U — *__—__111 xii wuiicvvtuu a utapotivuv uiwi tary attache’s statement that the re inforcements were required to protect an increasing number of Japanese residents in North China, foreign diplomats declared no danger existed. The number of Japanese nationals here has been augmented only slightly in recent years. Diplomatic sources said no “inci dent” had occurred to warrant such a (See JAPANESE, Page 7.) Senators on Fishing Trip. MANTEO, N. C.. May 16 (4>).—Vice President John N. Garner and a party of Senators were the fishing guests today of Representative Lindsay Warren of North Carolina. The group, including Senators Bachman of Ten nessee, Duffey of Wisconsin, Burk of Nebraska, Burlow of North Dakota, Brown of New Hampshire and Murphy of Iowp, planned to try their luck at catching bluefish off Oregon Inlet. 3 DIE. 5 INJURED AS POLICE STORM HARRIOT PAIR Couple Shoots Sheriff and Are Killed When Posse Fires Cottage. FIVE OTHERS WOUNDED; 300 AID POLICE IN FIGHT Effort to Arrest Man on Threat Charge Leads to Gordons ville Killings. Bv the Associated Press. GORDONSVILLE, Va„ May 16.—A savage guh battle that lasted far into the night left three persons dead today, one a white officer, the others a colored man and his sister, who toppled, wounded or slain, Into the funeral pyre of their burning cot tage. Five officers and passe members were wounded, three of them so seri ously as to require hospital treat ment, before a posse member crept close to the colored people's tenant home and set It afire. Sheriff Among Dead. As the flames rose they silhouetted the arms figures of the two colored people who fell a moment later to be consumed by the flames. 'TVia Aar, A Sheriff William B. Young of Or ange County. William Wells, 65, the colored man. Cora Wells, his sister. Sheriff Young was shot to dea'h by Wells during the afternoon when he and State Patrolman S. L. Mc Williams went to Wells’ home to serve a warrant for the lunacy commission. Wells was a collector of firearms and kept a small arsenal In his house. Young was felled by a bullet in the heart and McWilliams was wounded in the arm and leg. Other officers in the party sum moned State officers and a posse of citizens which swelled at the height of the battle to nearly 300. Sergt. Wayne Carr made a rush to help McWilliams to safety and was hit himself. Machine Guns llsed. He and McWilliams rolled under the porch, where they lay for some time, out of range of Wells’ fire. Other officers reached them under cover of machine gun fire from State police and dragged them to safety. C. L. Young, brother of the sheriff, was shot in the jaw as he dashed toward the cabin to retrieve the offi cer's body. Oscar Mundy, Barboursville, Va., po liceman, was struck in the arm and beck by a steel-jacketed bullet which penetrated the steel body of a truck he tried to drive against the cottage to screen an attack. A fifth man, Edward Buchong. was treated for a wound believed to have been received accidentally from a posseman's gun. As machine gun fire swelled in the play of searchlights from various fire departments upon the house a State officer crawled close to an outhouse and flung his burning shirt, which he had dipped in gasoline, into the build ing. The fire spread rapidly to the cottage and the final burst of shoot ing followed. The officers and posse made unsuc cessful attempts to route the barricaded (See THREE DIE, Page 12.) $572,450,000 ARMY SOPPLY BILL SIGNED President Also Announces Signa ture of Measure for State, Jus tice, Commerce and Labor. B; the Associated Press. President Roosevelt has signed into law the $572,450,000 supply bill to carry on the activities of the War De partment in the fiscal year beginning July l. This is the largest peace-time ap propriation for the Nation’s land forces. The White House also announced the signing of the bill appropriating $116,450,000 for the State, Justice. Commerce and Labor Departments. The War Department measure in cludes $383,000,000 for purely military purposes, part of which will go toward Increasing the Army enlisted strength to 165,000 men, an increase of about 18,000 from present strength. Sixty Reform School Girls Go to White House Today About 60 girls this morning were awaiting breathlessly the most exciting afternoon of their lives. Inmates of the National Training School for Girls, located on Conduit road, the girls were to be guests of Mrs. Roosevelt in a garden party at the White House. There was a dress rehearsal for the big event yesterday. The girls, only eight of whom are white, scrubbed, washed, ironed, whitened shoes, and then exhibited the clothes they were to wear today on the broad lawns of the White House grounds. Mrs. Roosevelt, who visited the place last week, invited the girls through Dr. Carrie Weaver Smith, new super intendent Mrs. Roosevelt said they were entitled to an "occasional good time” out of their “gloomy surround ings." Dr. Smith had to confess that a White House- ^invitation had thrown even herself in a flutter. “I just want to let you know how much these kids have had—a total of $3,475 spent for clothing, shoes and dry goods during the 1935 fiscal year on an average daily population of 92 girls,” he said. "That’s $26 per year per girl for clothes, and that includes bed clothes —and the towels she uses, too. With a $100,000 appropriation voted by Congress after a detailed study on conditions by the Children’s Bureau, * Dr. Smith hopes to put into effect recommendations for the home made by the bureau. They included: A well-equipped personnel under Imaginative leader ship; organization on a cottage plan with groups small enough to permit "home atmosphere;” physical ment adequate to develop an educa tional and vocational program; academic education supplemented by work of a type suitable for those not adapted to schooling; a medical and nursing program; a mental health program, and "a well-rounded recre ational program.” The Training School, which boasts not a single teacher, belongs to the whole Nation and is conducted under the supervision of the District Board of Public Welfare. Its appropriations are made by Congress, and girls can be committed to it, for Federal of fenses, from any State. The girls at the school at present range in age from 15 to 20. Al though they are committed by law “to the age of 21” it is seldom that one remains there until she reaches her majority. Accompanying them to the White House was a staff of 20 office work ers, matrons, attendants, bringing Mrs. Roosevelt’s guest list to 80. The institution dates back to 1893, though several of its buildings have been constructed since. 4 — ” I/' NOT YET, ANYHOW! Sends “Best Wishes” and Assures Schuschnigg Pacts Will Stand. BACKGROUND— With Italian need for war ma terials diminishing. Austria is eager to develop new foreign markets. Nazi Germany is a logical trade outlet. Tears have been voiced in League of Nations circles that natural trade interests would link Germany. Italy and Austria in a restored Triple Alliance, this spur red by sanctions against Italy and Europe’s distrust of Hitler. Austria would like Germany to suspend the 1.000-mark diOOi lisa to boost German tourist trade. By tne Associated Press. ROME. May 16.—Premier Mussolini extended ‘'best wishes” to the new Austrian dictator today while a de posed vice chancellor of Austria sought support from official Rome. The Italian dictator sent a telegram to Chancellor Kurt Schuschnigg as Prince Ernst von Starhemberg. Aus trian vice chancellor, deposed in a cabinet shake-up, was reported solicit ing Mussolini's support. II Duce asured the chancellor Italo Austro-Hungarian agreements recently renewed at Rome would remain an important factor in the Fascist pro gram. Says Greeting Welcome. "The greetings which your excel lency sent me on assuming direction of the government formed by you have been very welcome to me," Mus solini said “In thanking your excellency I de sire to confirm to you my definitely friendly sentiments in formulating sincere best wishes for the continu ance and success of your work, as suring you faithfulness to the proto cols of Rome reaffirmed by your ex cellency remains one of the corner stones of the policy of Fascist Italy." Italian circles declared Starhem berg. who ostensibly came to Rome to see a foot ball game after his falling out with Schuschnigg. would not be likely to win assistance from the AUliiaU UittAlUl. The support he seeks, these sources said, has already been lo6t to him. SCHUSCHNIGG TAKES STOCK. Calls (or National Unity and Exten sion of Trade. By the Associated Press. VIENNA, May 16_Seeking to re inforce his new, one-man dictatorship by demanding dissolution of Austria's private armies. Chancellor Kurt Schuschnigg tsickled today the prob lems of national solidarity and new foreign markets. The announcement that none but militiamen will be allowed to bear arms as volunteers dealt a blow to the Fascist Heimwehr of Prince Ernst von Starhemberg, who was ousted Wednesday as co-dictator. Schusch nigg, however, tempered the step with conciliation. The Chancellor, describing Sta rhemberg as a good Austrian, said many of the Heimwehr’s men and tra ditions would be absorbed in the na tional militia. Immediate Reaction Passive. Von Starhemberg was in Rome and no immediate reaction was available to the Chancellor’s statement last night. Heimwehrmen in Upper Aus tria, however, where Starhemberg got his start, were in a belligerent mood. “Dualism in control of Austrian affairs is a thing of the post,’’ the chancellor told the nation in a radio discussion of his plans. "It was re placed not because of great differ ences between the leaders, but because In these stem times even slight dif ferences cannot be tolerated.” The chancellor held a lengthy con versation with Franz von Papen, the German Minister, in which, an inti mate of Schuschnigg said, economic relations were discussed. AggreMlon Fears Diminish. Tension In official quarters over the possibility of German aggression ap peared relieved since the elimination of Starhemberg from the cabinet. “Austrian fear that the Germans may sweep over the border is dimin ishing.” a foreign office spokesman said, describing relations as better than at any time since the assassina tion of Chancellor Dollfuss. The chancellor, with an Internal Nazi movement apparently on its way, waa reported steadfast In his Insistence on complete Austrian independence. ft Trial of Texans . In District Court Due to Cost $2,240 .. I - « Amount Far Exceeds State’s Share of Lump Sum. The Budget Bureau has just sub mitted a deficiency estimate of $2,240 to feed and lodge jurors and bailiffs in the trial of seven Texans in Dis trict Supreme Court. Just at the time when Representative Blanton of Texas is fighting to maintain a $3,000,000 slash he made in the District appro priation bill. Blanton's contention, often ex pressed, is that his home folks in Texas should not be taxed to help support the National Capital. The cost of this trial alone, which has no connection with the municipal affairs of the District, would wipe out any contribution that Texas tax payers have made to support the Capital during the entire time Blanton has been in Congress. This trial already has lasted 26 days and is expected to continue for at least two weeks longer. The support of Jurors and bailiffs at the Conti nental Hotel costs $56 a day—and this trial is depleting the $910 allo cated for similar costs in other cases for the entire fiscal year. Fourteen jurors are being supported, two as alternates. William Harding and six others are defendants in the case involving al leged fraud in a P. W. A. canal irri gation project in Willacy County. Tex. CROlJOpCO Flashy Lot of 3-Year-0lds Tuned for 46th Renewal of $25,000 Race. BY OSLO ROBERTSON. Associated Press Sports Writer. BALTIMORE, May 16.—The eyes of the racing world were focused on Pim lico today, where Bold Venture defends his laurels won in the Kentucky Derby, in the $25,000 Preakness. There was no Brevity In the forty sixth running of the 1 3-16-miles test, but four of the 3-year-olds, which trailed Bold Venture at Churchill Downs, were ready to take another crack at Morton L. Schwartz's ace along with a half dozen others, which have shown their worth In competi tion and morning workouts. Fourteen were named In the over night entries, but not more than 10 or 11 were expected to parade at about 5 p.m. Leading the beaten Derby delegation were Granville, William Woodward's son of Gallant Fox, which threw his rider at the start of the roughly ridden Derby, and Grand Slam from the Bom&r Stable. The Wheatley Stable’s Teufel, stablemate and con queror of the stretch-running Gran ville in the Wood Memorial, and Mrs. Silas B. Mason’s He Did, winner of the Santa Anita Derby, completed the contingent. Memory Book Standout. y\T THE head of the new aspirants for 3-year-old honors stood Mem ory Book, star of Mrs. Payne Whlt (See PREAKNESS, Page 2.) CHURCHMEN ‘DISCOVER’ DESTINATION OF ARMS Weapons Intended for Mexican Agriculture Secretary, Clergymen Claim. By the Associated Press. SAN FRANCISCO, May 16.—The Chronicle says It learned from “high church officials" that a quantity of arms detained by authorities In San Antonio, Tex., was intended originally for Gen. Satumio Cedillo, Mexican ag riculture secretary. The Mexican official previously had denied that the weapons, shipped from San Francisco, were for him and dis counted reports that Cubans used his name and office In an attempt to get Into Mexico arms destined for Cuba. The* "newspaper said the disclosure came from church officials “who have been studying with Increasing interest the reports of agents in Mexico inves tigating movements tending toward restoration of church privilege In ths southern nation." *» A D. C. Traffic Department Gets Authority to Bar Non Residents Driving. The next time Representative Zion check or any other non-resident motor ist is convicted of speeding, the District Traffic Department will be able to do something about It besides impose a fine. President Roosevelt today signed a bill giving the Traffic Department j authority to suspend or revoke the right of a non-resident to drive in the District, even though he operate his car on a State permit and has no Dis trict permit to be revoked. The bill, effective immediately, lias the effect of placing non-residents on : the same basis as District residents. Heretofore, the Traffic Department was able to suspend or revoke the permit or a District resident, but could only fine and submit a record of the case of a non-resident to the authorities in the State in which he resided. The bill specifically provides that the Commissioners or their destg- j nated agents may suspend or revoke the right of non-residents to drive in! the District "for any cause which they may deem sufficient in the interests I of Dublic safetv.” Although the situation has existed for more than a year, the recent ar rest of Representative Zioncheclc and his conviction in Police Court for speeding at 70 miles an hour brought it into the spotlight. Traffic Director William A. Van I Duzer announced he was without au thority to revoke the Washington State Representative's permit, which was issued by authorities in his own ; State, and that under existing laws Zioncheck could not be prevented from operating his high-powered car when ever he pleased. Van Duzer was not in the city today, but Is is understood that plans have been made to place the law in effect immediately. bridgeTnewall TAKES GOLF LEAD British Woman Shoots 74 for 152 Total—Wanda Morgan Has 154. By ttie Associated Press. SOUTHPORT, England, May 16.— With most of the American stars still out. Bridget Newall, a 24-year-old British woman, took the lead in the British women's championship by shooting a 74, one under par, for a total of 152. The defending champion, Wanda Morgan, also served notice that she is on her game by adding a 76 to her 78 of yesterday for a total of 154. Patty Berg, the 18-year-old Minne apolis star, played steadily today and posted a 77 for a total of 156. and Charlotte Glutting, South Orange, N. J., who soared to an 82 yesterday, had 77 today for a total of 159. Mrs. O. S. Hill, Kansas City veteran, was half way around in 39 wh«i a high wind suddenly blew up and she scrambled the rest of the way home in 43 strokes for an 82 and a total of 161. Poland Checks Nazis. WARSAW, May 16 OP).—'The Min istry of Interior last night prohibited Germans living in Polish Silesia, for merly part of Germany, from wearing swastika armbands and Nazi uniforms or carrying Nazi banners. j Cummings Aid Asked as Ritter Won’t Surrender Keys to Office By the Associated press. The Justice Department was asked today to decide what steps may be taken to eject Halstead L. Ritter from the Federal judge’s chambers at Miami, Fla. The Post Office Department notified by William C. Hill, Miami postmaster, that Ritter refused to surrender the keys to his office, referred the mat ter to Attorney General Cummings, with a request for “appropriate atten tion” Ritter has said he planned an attack on the constitutionality of Sen ate proceedings which brought his ( conviction on lmpeacnmeni cnarges of bringing his court “into scandal and disrepute.” Cummings was out of the city today. By tne Associated Press. MIAMI. Fla., May 16.—Former Federal Judge Hals ted L. Ritter re mained at home today and postponed possible eviction from his offices by the custodian of the Federal Building. At home the Jurist, who was ousted by the United States Senate in im peachment proceedings, studied law books from which he hoped to obtain opinions that would allow him to retain hla plaec on the bench. * i P. W. A. FIGHT GAINS IN SENATE’S STUDY OF FUNDPROPOSAL Authority for $250,000,000 Use Is Considered by Ap propriations Unit. CITY, STATE GRANTS WOULD BE APPROVED Sum Already on Hand in Form of Bevolving Loan Account—Ickes Expected to Testify. BACKGROUND— At request of President, Congress is about to appropriate SI,426,000, 000 for loosely designed relief pur poses. As House refused to ear mark part of fund for P. W. A. and Chairman Buchanan of Appropria tions Committee declared none of money would go to Resettlement Administration, it seemed certain that W. P. A. would have full con trol of the spending. As both Secretary Ickes and Re settlement Administrator Tugwell protested being cut off from funds, however, President announced plan for modified activities for their agencies Now Congress wonders just what it is appropriating and for whom. By tee Associated '-ess. The P. W. A. bloc fighting to keep Secretary Ickes’ agency in the relief picture gained some ground in the Senate today. An appropriation sub committee studied a proposal to make $250,000,000 available to Ickes to carry on heavy public works. This followed a disclosure by Presi dent Roosevelt that P. W. A. and Rex ford G. Tugwell’s Resettlement Ad ministration would be continued next year in curtailed form and largely under the financial auspices of W. P. A , headed by Harry L. Hopkins. Previously, there had been reports that P. W. A. and R. A. would vir tually cease to exist. Tugwell had said that unless he received more funds his agency would “fold up" after July 1. 1250,000,000 Already on Hand. Under the proposal now before the subcommittee. Ickes would be em powered to expend $250,000,000 in grants to States and municipalities, with the understanding that the Reconstruction Finance Corporation would make loans to enable the States and communities to put up part of the cost of public works. The $250,000,000 already is on hand in he P. W. A. coffers, but it is in the form of a revolving fund from which loans are made. The new pro posal to reappropriate it to permit Ickes to expend it in outright grants. The subcommittee is studying the $1,425,000,000 relief appropriation for next year, which was asked by Presi dent Roosevelt and the bulk of which will be administered by Hopkins. Ickes Expected to Testify. Secretary Ickes had been expected to testify on an amendment offered by Senator Hayden, Democrat, of Arizona to add $700,000,000 for P. W. A. to the relief bill, but it was indicated today that he would not appear. Com mittee members said he would like the money, but that President Roose velt was opposed to the appropriation. Mr. Roosevelt at his press confer ence yesterday indicated P. W. A. and R. A. would be maintained on a smaller scale with money advanced from the Works Progress Administra tion's funds. ociifttui YYiiccicr, L»emuaai, oi Montana, leader of a group of eight farm Senators who have aslted the subcommittee to “take care” of the R. A., said he would call a conference to determine what should be done. He said he wanted more information on the nature of the President’s ideas. Secretary Ickes conferred with President Roosevelt for an hour and a half at luncheon yesterday. He carried a bulging brieg case, but de clined any comment whatever about his White House conversation. Hopkins, Tugwell Invited. Presumably to talk over the latest turn in the relief situation, the Presi dent invited Hopkins and Tugwell as guests on a week end cruise, em barking last night at Anna noils. After the Chief Executive made his announcement about continuing P. W. A. and R. A., Senators who have importuned the subcommittee to expand or earmark funds directly for the agencies greeted Mr. Roose velt’s assurances that Hopkins would provide the money by asking, "How much?” The question was not answered. Hayden stated he would confer shortly with P. W. A. leaders to ascer tain how much they are likely to get under the terms of the President’s promise. Mrs. Perry W. Harvey Dies. THOMASVILLE, Ga., May 16 (£•).— Mrs. Perry W. Harvey, daughter of the late H. Melville Hanna of Cleveland, Ohio, diet! yesterday after a brief illness. Mrs. Harvey was known here for her ihilanthropies. INCOME TAX BOOST TO BE CONSIDERED BY SENATE GROUP ______ * Finance Committee Is Due to Vote on Compromise Measure. REVISED BILL PROVIDES JUMP FROM 4 TO 5 PCT. Levy on Undistributed Corporate Profits Is Minor Feature of New Program. BACKGROUND— Consistent opposition from busi ness interests and tax experts finally broke down support of Senate Finance Committee for ad ministration tax proposal of levy on undistributed corporation profits. House had approved innovation. Senate group now seems headed toward compromise, which may mean raising of existing corporate and individual rates, but no imposi tion of new taxes. By the Associated Press. A compromise revenue plan, includ ing a boost in the levy on all persons who pay income taxes, moved today toward a vote in the Senate Finance Committee. The new program, in which Presi dent Roosevelt's proposal for taxing undistributed corporate profits would be a comparatively minor feature, was evolved in a surprise move yes terday. Some members felt the com mittee would adopt it in substance today. The normal tax on levy from the present 4 per cent to 5 per cent. The plan also would levy a flat tax of 18 per cent on all Income of corpora* tions; a surtax of 7 per cent on un distributed corporate profits, and apply the normal income rate of 5 per cent to dividends. The income tax boost would affect a large number of persons, perhaps more than 2.000,000. and there was uncertainty about its fate in Con gress. especially in the House where all seats are at stake in this year's election. Agreement Is Sought. The compromise program was de scribed by Chairman Harrison as a “composite” of several members’ suggestions and was put forward in an effort to get an agreement from his badly-divided committee. But its approval depended on Treasury esti mates of thw revenue it would pro duce and a test of strength within the committee over the theory of tax ing undistributed profits. Some administration Senators felt the 7 per cent surtax on undistributed profits was not high enough to force distribution of earnings held in corp orations to avoid taxes. On the other hand, several committee members favored complete abandonment of the proposal for taxing undivided corp orate earnings. The 7 per cent surtax plan was much different from President Roose velt's original suggestion for taxing undistributed profits, and the plan as a whole was a complete revision of the form in which the tax bill passed the House. The Chief Executive, in his tax message, recommended a levy on un distributed profits which would equal the tax which would be paid if the prefits were distributed. Treasury experts estimated this would average 33 'j per cent. In the House, this was modified to a graduated tax up to ISH per cent on all corporate income, depending on how much of it was withheld from dividends. The House adopted the President's proposal for repealing all (See TAXES, Page 7.J BRITISH TELL PARIS, ROME OF NEW SHIPS Two Governments Notified of Plan to Increase Destroyers. Already Broached to U. S., Japan. By tbt Associated Press. LONDON, May 16.—The British government notified France and Italy today that it intends to increase the tonnage in destroyers allotted Great Britain under the 1930 naval treaty. Great Britain already is negotiating on the subject with the United States and Japan, since the two latter na tions are cosignors with Great Britain to the limitation clauses of the treaty. France and Italy were not parties to the tonnage limitation agreement but they signed certain other provis ions, thereby, presumably, receiving the right to be notified. The government’s reasons were not announced, but naval observers be lieved them to be linked with new French and Italian construction. Readers’ Guide Page. Amusements.„_C-18 Answers to Questions.A-6 Art..,B-3 Books---B-3 Church News.B-5-6-7 Comics. C-12 Cross-word Puzzle.C-12 Death Notices_A-8 Editorial.. 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