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Evening star. [volume] (Washington, D.C.) 1854-1972, May 18, 1936, Image 1

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WEATHER. ** "H r—————
IU. 8. Weather Bureau Forecait.) rpi. n __
Showers tonight, probably clearing to- • c* ©Veiling, paper
morrow morning: slightly cooler tonight. in Washington with th©
rS»rrw:T4“S«1^-XhrS; • Associated Press News
88. at 4:30 pm. yesterday: lowest, 57. and WirephotO Services.
Full report on page B-8.
Closing New York Markets, Page 16_ _ ,SSi 140,810
No. 33,620. wartmgESjTc? .WASHINGTON, D. C., MONDAY, MAY 18, 1936-THIRTY-FOUR PAGES. *** op> Means Associated Pr.*.. TWO CENTS.
-.- -. ■ 1 ..—.■ ■ . — »
DECISION SPLIT, 5 TO 3;
1935 RELIEF ACT VOIDED
BY COURT OF APPEALS
- ■ '■ ■ ■ A ______ «8i —. — ■ -
Majority View
Is Given by
Sutherland.
PRICE FIXING
IS CONDEMNED
Labor Provisions of
Act Also Ruled
to Be Invalid.
BACKGROUND—
Guffey bill establishing little
N. R. A. for soft coal industry was
under heavy fire from earliest con
sideration in Congress. In answer
to critics charging unconstitution
ality. President Roosevelt asked
passage of law despite such doubts.
Case testing law has been pend
ing in Supreme Court for many
weeks: conflicting decisions had
been rendered in lower courts.
The Guffey coal act, passed to
regulate hours and wages in the
soft-coal industry, was declared
unconstitutional in its entirety
by the Supreme Court today.
The justices divided five to three in
their opinion, with Chief Justice
Hughes concurring in part.
Justices Cardoso, Brandeis and Stone
dissented outright from the majority
opinion.
uuobiw. iiugiivo niuw o
separate opinion in which he held
the act and code "may be sustained
in relation to the provisions for
marketing in interstate commerce,
aryl the decision of the courts below,
so far as they accomplish that re
sult, should be affirmed.”
In other respects he agreed with the
majority opinion.
Industry to Be Affected.
The unfavorable decision is expected
to have far-reaching consequences in
the soft coal industry. While the leg
islation was being drafted. President
Roosevelt considered it of such im
portance that he urged members of
Congress "not to let doubts as to its
constitutionality” stand in the way
of its passage.
The majority opinion was delivered
by Associate Justice Sutherland, who
said in part:
"The conclusion is unavoidable that
the price-fixing provisions of the code
are so related to and dependent upon
the labor provisions as conditions,
considerations, or compensations, as to
make it really probable that the for
mer being held bad, the latter would
not have been passed. The fall of the
former, therefore, carries down with
it the latter.
"The price-fixing provisions of the
code are thus disposed of without
coming to the question of their con
stitutionality, but neither this dis
position of the matter nor anything
we have said is to be taken as indi
cating that the court is of the opinion
that these provisions, if separately en
acted, could be sustained.
Left for Future Decision.
"If there be in the act provisions
other than those we have considered,
that may stand independently, the
question of their validity is left for
future determination, when, if ever,
that question shall be presented for
consideration.”
The opinion disposed of four cases.
One was a suit brought by James Wal
ter Carter, president of the Carter
Coal Co. of West Virginia, against
his own company. Two others in
i See GUFFEY ACT Page 7TT*
-% , ■ ... -
NAVAL TREATY GOES
TO SENATE FOR VOTE
Walsh Terms Tri-Power Pact
“Disappointing"—Sees Limi
tations Ended.
By tht Associated Press.
The new tri-power naval treaty
signed by the United States, Great
Britain and Prance went before the
Senate today for a vote on ratifica
tion.
Senator Walsh, Democrat, of Mas
sachusetts, who is expected to be
come chairman of the Naval Affairs
Committee as successor to the late
Senator Trammell, yesterday de
scribed the treaty as “disappointing.”
Walsh said the pact “sets aside the
slight restrictions and limitations that
were established in the Washington
and London treaties on the amount
of naval armaments permitted each
signatory.”
The treaty attempts to limit the
size of ships in various categories,
but does not restrict their number.
“Rainbow Over
Broadway”
A Thrilling New Serial
-By—
Alma Sioux Scarberry
Begins Today on
Page B-13
'I--—-*—e
$2,515,082,158 Is
Expended Under Act
Held Unconstitutional
By the Associated Press.
Up to March 31, the last date
for which figures are available,
$2,515,082,158 had been spent
under the relief act which the
United States Court of Appeals
ruled against today.
The act appropriated $4,880,
' 000,000 for winding up the Fed
eral dole and inaugurating work
relief.
Allotments which President
Roosevelt has made from this
fund include:
Resettlement Administration,
$230,398,400; Works Progress
Administration, $1,363,926,901;
Bureau of Public Roads, $500,
000,000; Civilian Conservation
Corps, $527,479,450; Puerto Rico
Reconstruction Administration,
$33,377,380: Reclamation Bureau,
$76,680,000; Navy Department,
$17,542,716: Public Works Ad
ministration, $447,476,447; Rural
Electrification Administration,
$10,546,812: Treasury. $50,241,
066; War Department, ^146,341,
386.
In addition. $938,530,085 was
spent on direct relief during the
transition from the dole to work
relief.
[ Not all of the sums allotted
has been spent.
New Council Ends Strike
and Lays Plans for So
cialistic State.
BACKGROUND—
Tejada Sorzano became Presi
dent of Bolivia bp a coup in 1934.
His term would have expired in
August. Continuance of state of
war after end of 1932-35 Chaco
conflict brought the administration
into disrepute and also wrecked the
Civilian Republican and Liberal
parties. A new Socialist organiza
tion called for a military dictator
ship.
By the Associated Press.
LA PAZ, Bolivia, May 18.—A pro
visional junta of soldiers and So
cialists ruled Bolivia today after the
civilian government of President Jose
Luis Tejada Sorzano fell in a peaceful
military coup.
The new council called war hero
Col. David Toro back from the Gran
Chaco to become President, gained
suspension of a general strike move
ment and proclaimed as its objective
to “orient the nation toward a social
istic state by prudent, gradual means,
without convulsions.”
Advices from the interior indicated
absolute tranquility prevailed through
out this South American state of al
most 3,000,000 people.
Followed Paraguayan Upset.
The government overturn was the
second to arise in the aftermath of the
long Chaco War. Bolivia's soldiers
seized power just three months after
their former enemies in Paraguay
ousted President Eusebio Ayala and
installed Col. Rafael Franco as chief
executive.
Col. German Busch, acting chief
of the Bolivian Army General Staff,
led the swift, successful La Paz coup
d’etat.
So sudden and unexpected was the
movement that President Tejada Sor
(See BOLIVIA, Page A-4.)
DRUKMAN GRAND JURY
INDICTS PROSECUTOR
New York Detective Also Charged
With Conspiracy to Ob
struct Justice.
By the Associated Press.
BROOKLYN, N. Y., May 18.—An
assistant district attorney of Kings
County and a New York City detec
tive were among eight persons in
dicted today by a special grand jury
investigating the Drukman case.
The Indictments charged con
spiracy to obstruct justice in the pre
vention of indictments and prosecu
tion in the slaying of Sam Drukman.
Among those indicted were Assist
ant District Attorney William W.
Kkinman of Kings County and
Guiseppe F. L. Dardis, former New
York City detective.
Also named in the indictment was
Henry G. Singer, former assistant
United States district attorney for
the New York district. Singer is
under a previous indictment in the
case.
COOLER WEATHER DUE
TO FOLLOW SHOWERS
Cooler weather is due in the Capital
during the next 24 hours, following
showers tonight, the forecaster pre
dicted today.
This afternoon, however, will be
warm, with the mercury expected to
approach yesterday's maximum of 88,
recorded at 4:30 p.m.
The showers probably will let
awning.
States’ Rights
Invaded, Is
Ruling.
TUGWELL UNIT
HELD ILLEGAL
Opinion Hits Dele
gation of Powers
' to President.
In a startling and sweeping
opinion, the District of Colum
bia Court of Appeals this morn
ing declared the $4,880,000,000
relief act of 1935 unconstitu
tional on the grounds it at
tempted an improper delegation
of powers to the President, an
invasion of States’ rights and a
lack of definite authorizations.
The opinion gives a doubtful status
to numerous activities now under way
with funds allocated from the $4,880,
000,000 “pot.” among them being the
low-cost housing, slum clearance and
rehabilitation programs operating
under the Resettlement Administra
tion.
At the same time. It creates a doubt
which may result in sharp revision of
the pending relief appropriation bill
and in more specific drafting of all
legislation. During the Roosevelt ad
ministration’s term of office wide and
loose delegation of powers to the ad
ministrative branch has become a
habit of the Congress.
Immediate Appeal Planned.
The decision was rendered specif
ically in the case of a model com
munity project of the Resettlement Ad
ministration in the township of Frank
lin, Somerset County, N. J.. but the
court took occasion to depart from
consideration of this project alone and
declared that the whole relief act ‘‘at
tempts to reach and control matters
over which the Constitution has given
no powers.”
• Solicitor General Stanley Reed said
an appeal would be taken to the Su
preme Court at once.
He told newspaper men that after
a hurried reading of the opinion he
believed it was ‘‘narrow” and confined
to construction projects for shifting
population under the resettlement ad
ministration.
“I am not trying to minimise the
opinion,” he added. “We wanted it
the other way.”
A spokesman for Harry L. Hopkins
said the work relief program would go
on despite the decision.
With Congress in session, he said,
the act could be amended to meet the
court’s objections.
The Resettlement Administration
had been allotted (230,398,400 of the
works relief fund.
Hopkins’ Works Progress Admin
istration had received the largest al
lotment of $1,363,926,901.
Tugwell Is Silent.
Resettlement Administrator Rex
ford G. Tugwell would make no com
ment on the opinion, but other offi
cials of the R. A. made the guess that
no activities of the administration
would be halted until the Supreme
Court has made known its attitude
toward the issue.
The Franklin project, better known
as Bound Brook, has been tied up
since last January, when property
owners and taxpayers attacked the
project on the grounds of loss in tax
revenue to the local community. Dis
missal of the injunction suit was
ordered in District Supreme Court
several months ago. but the plaintiffs
carried the case to the appellate body.
Referring to the act as the “mo6t
stupendous single appropriation ever
made by a legislative body,” the court
said the “emergency” of a depression
was “not sufficient to expand the
power of Congress to tax and spend
(See RESEl’l'LEMENTrPage A-4.)
Pope's Coachman Dies at 91.
Rianldo Jacchini, who has Just died
in Vatican City, Italy, at the age of
91, served in the Papal stables for 71
years, under five popes. During the
long voluntary “captivity” of Leo Xin
within the Vatican Jacchini had or
ders to drive the Pope daily round
the gardens, and if the pontiff slept
to keep on driving until he awoke,
r—■■
^ . i*
N
TO M IN CALL
FORARMSPARLEY
Would Include Germany in
Move to Give Reich
“Legitimate Army.”
MAY FOLLOW LONDON
ON ETHIOPIAN STAND
French Socialist Leader Repeats
His Appeal for International
Peace Campaign.
BACKGROUND—
Leon Blum, president of the
French Socialist party, emerged as
victor in recent Deputies elections
and will head France’s next cabi
net. The swing to the Left, seen
in the vote for Blum's "People's
Front," has been considered a
mandate of the people for swift,
decisive action to stimulate employ
ment, keep credit conditions stable
and improve France's relations
abroad.
By the Associated Press.
PARIS, May 18.—Leon Blum, pre
mier-designate of the incoming "Peo
ple's Front'’ government, has asked
British Foreign Secretary Eden to join
him in calling a disarmament confer
ence, the foreign affairs expert, Per
tinax. reported today.
Writing in the newspaper Echo de
Paris. Pertinax said Blum proposed
that Germany be invited to such a
parley in an effort to give the Reich
a legitimate military strength in pro
portion to its status among the world
Dowers.
Pertmax said the French Socialist
leader agreed also to take no initiative
in the Ethiopian controversy, but to
follow London's lead {ft its attitude
toward sanctions and Italy's annexa
tion of conquered East African terri
tories
Blum conferred here last Friday with
Eden during the British secretary's
return trip from Geneva.
Favors Democratic Regime*.
The Leftist leader himself, writing
in the Socialist newspaper Populaire,
reaffirmed his desire for international
co-operation toward European peace,
but announced France's new govern
ment would look with greatest favor on
regimes with democratic ideals.
Blum, whose party won the greatest
representation in the new Chamber of
Deputies convening next Month, re
peated the appeal for an international
peace campaign which he made last
Friday before the American Club.
The premier - designate declared
“France is drawn toward those nations
which remain faithful to democratic
liberties.” but insisted peace was a
task for all nations and must be won
through a system of collective security.
Labor Program Demands.
Leon Jouhaux, general secretary of
the Labor Federation, said today that
before his organization would enter
into the "people’s front” government
it demanded a program including im
mediate nationalization of the arms
industry, a 40-hour week without
wage cuts, workers' participation in
industrial control and an increase in
the maximum school age.
He told the federation's National
(See ARMS, Page 2.)
HEARING LIKELY TODAY
IN DILL ALIENATION SUIT
Former Senator, Co-defendent in
925,000 Action, Denies
Charge.
By the Associated Press.
MOUNT VERNON. Ohio, May 18.
—A $25,000 alienation of affections
suit, brought by Mrs. Margie Heaton
Dill against former United States
Senator Clarence C. Dill of Spokane,
Wash., and Washington, D. C., was
scheduled for hearing before Com
mon Pleas Judge Philip L. Wilkins
today.
Named as co-defendant in the suit
was Mrs. Grace Dill of nearby Fred
ericktown, mother-in-law of the plain
tiff and sister-in-law of the former
Senator.
The plaintilf charged in her peti
tion that the defendants attempted
to break her family ties with Wendell
Dill, whom she married in May, 1934.
the day after they were graduated
from Fredericktown High School.
She charged that the defendants ar
ranged to have an illegal operation
pertormed on her in Washington,
D. C.
The former Senator denied the
charge in an answer to the suit. The
mother-in-law also denied the charge.
(WHAT WE WAMT To know, DccA
IS HOW'LL THE WEATHER BE
\ ON THE THIRD OF NOVEMBER!/
OFFItF
dkChTs Mm
SUNSHIHE
expert
0
^S^Sp^ss^
Flaivs in Street Car Service
Turn D. C. Patrons to Busses
Irregular Schedules and Increasingly
Sloiv Speeds of Trolleys Found
Cause of Loss of Passengers.
This is the second of a series of
articles on the transportation prob
lem in the Capital.
BV JOHN H. CLINE.
The street car always has been,
and still is, the backbone of Wash
ington’s mass transportation system,
but It is gradually losing ground.
Slowly, the bus is taking over more
and more of the street car patrons—
not because bus service is inherently
better, but rather because the street
car service furnished by the Capital
Transit Co. has become so abominable
on some lines that the public simply
refuses to ride the cars.
In 1935 the company owned 683
street cars and 375 busses. The latter
carried 20.822,408 passengers, while
130.219.872 passengers rode the street
cars. Oross operating revenue from
street cars was S7.844.855. while that
from bus operations was $1,488,035.
These figures clearly demonstrate
that the street car is anything but
passe in Washington, yet this im
portant mode of transportation has
been allowed to fall on exceedingly
evil days.
An interesting side light on the
type of emergency service the transit
company is capable of affording is
set forth in the report of a survey
made by a representative of the Pub
llc Utilities Commission at Thomas
• See STREET CARS, Page~A^57)
HOEPPELS LOSE
PLEA TO COURT
Appeals Tribunal Rules
Against Representative
and Son.
The United States Court of Appeals
today upheld the recent conviction of
Representative John H. Hoeppel of
California and his son, Charles J.
Hoeppel, of conspiracy to solicit $1,000
in payment for a West Point appoint
ment.
Soon after the court’s decision was
made known. Assistant United States
Attorneys David A. Pine and Samuel
Beach announced they would nolle
prosse another indictment stiU pend
ing against the Hoeppels, which
charges the father and son actually
solicited the $1,000 involved in the
conspiracy case.
Convicted about a month ago, after
a long trial before a District Supreme
Court jury, the defendants each re
received a sentence of from four
months to a year in prison.
They are expected to see a review
by the United States Supreme Court,
rather than accept the decision by the
local appellate tribunal.
Campaigns for Re-election.
Representative Hoeppel now is in
the midst of a heated re-election
campaign, while at liberty under
$2,000 bail. Because of the effect on
his campaign of the pendency of the
second Indictment, Hoeppel two weeks
ago asked United States Attorney
Leslie C. Garnett either to nolle prosse
it or to bring him and his son to im
mediate trial.
Last week. Justice Daniel W.
O’Donoghue. in a Anal ruling on this
request, held it would be improper to
try the second case while the conspir
acy conviction was still under con
sideration by the Court of Appeals.
During the trial, the Government
contended the Hoeppels conspired to
accept $1,000 from James W. Ives,
(See HOEPPEL, Page 2.)
Readers’ Guide
Page.
Amusements.B-16
Answers to Questions_A-8
Death Notices_A-10
Editorial-A-8
Finance—.A-15-16-17
Lost and Found_A-3
News Comment Features..A-9
Radio- A-14
Serial: “Woman In Love”..B-9
Serial: “Rainbow Over
Broadway_B-13
Society .. B-3-4
Sports ...A-12-13-14
Washington Way^ie.A-2
Women’s Feature^_B-10
p.w.n’swour
IS SEENBV ICKES
Suggests Aiding Unit Finan
cially by Expanding $250,
000,000 Revolving Fund.
BACKGROUND—
Administration is asking 11,500,
000,000 to finance relief program
for coming fiscal year. With none
of funds earmarked for either P.
W. A. or Resettlement, it seems cer
tain that Hopkins and W. P. A. will
be big spenders. As both of former
agencies made plans for curtail
ment or discontinuance on July 1,
however. President announced they
may be continued in modified form
by allocation from W. P. A. to them.
By the Assoc la tea Press.
Secretary Ickes told a Senate Ap
propriations Subcommittee today that
"a way out” of the Public Works Ad
ministration's financial position might
be found in the expansion of the
$250,000,000 P. W. A. revolving fund
and the relaxation of statutes govern
ing its operation.
The P. W. A. administrator, whose
organization is scheduled for curtail
ment under the $2,364,229,712 relief
deficiency bill before the subcommit
tee, testified behind closed doors.
Downtown, as he spoke, the District
of Columbia Court of Appeals held
that the 1935 relief appropriation act
transgressed the Constitution. The
pending bill, with its $1,425,000,000
relief fund, is modeled along similar
lines.
Senator Hayden, Democrat, of
Arizona, told reporters after Ickes
testified that the Secretary had "in
dicated” that his needs in securing
(See ICKES, Page A-2.)
BLANTON TO SEEKi
SCHOOL BOARD END
Offers House Resolution to
Abolish Educational Set
Up in District.
Reviving a fight that was lost a year
ago. Representative Blanton, Demo
crat, of Texas, and chief sponsor of
the "red rider,’’ today introduced in
the House a resolution to abolish the
present Board of Education and to
give control of the public schools of
Washington indirectly to the District
Commissioners.
The same measure would prohibit
the judges of the various courts of the
District from teaching in law schools
and would fix academic requirements
for law degrees.
Blanton's proposal, first suggested
by him last April 14 and upon which
he conferred at length last Friday
with the Commissioners, was inter
preted by school authorities as a
"smoke screen” in his fight against
the Sisson bill to repeal the "red
rider.” It also was seen as another
shot in the fight of the Texan against
Dr. Frank W. Ballou, superintendent,
against whom he has waged a con
stant battle since the last session of
Congress.
Declines to Be Quoted.
Blanton declined to be quoted on
his proposal today.
The resolution provides that the
present Board of Education be abol
ished July 1 and that there be sub
stituted a new board, appointed by
and responsible to the Commission
ers, to be known as the "Trustees of
the Public Schools of the District of
Columbia.” The present board is ap
pointed by the justices of the District
Supreme Court.
The new board would be composed
of nine members, as at present, three
to be appointed each year for three
year terms.
They would have power to appoint
a "supervisor of education" to take
the place of the present superin
tendent of schools. Instead of the sal
ary of $10,000, now paid to Dr. Ballou,
(See BLANTON, Page 37)
TOUR IN GERMANY
44 American Students Off on Bus
Trip.
BERLIN, May 18 (4*).—Forty-four
American exchange students from 36
colleges in the United States started
on a week's bus trip through Germany
today.
The Journey, under the auspices of
the Carl Schurx Society, commemo
rates the tenth anniversary of the
organization’s founding.
The trip will end May 23 with a
visit to Schurz’s birthplace near
Cologne.
The students are attending 18 dif
erent German universities.
Walkout by House Conferees
On D. C. Supply Bill Revealed
BY JAMES E. CHINN.
The supplemental report on the 1937
District supply bill, released today by
the House Subcommittee on Appro
priations, revealed that House con
ferees on the measure walked out of
& recent conference with Senate con
feree* because the Senate group refused
to have a stenographer take down the
testimony of Lovell H. Parker, promi
nent tax expert, who made a tax
survey for the Washington Board of
Trade.
Representative Blanton, Democrat,
of Texas, chairman of the House Ap
propriations Subcommittee, made the
disclosure while questioning Parker at
a special hearing before his group
May 13.
Parker, who said he was in an
anteroom when the House committee
walked out, claimed he did not know
the reason for It. He admitted he
testified before the Senate committee
after the Hou^ conferees left, but
declined to disclose whether a steno
graphic record was made of his state
ments on the ground that he testified
at an executive session.
The supplemental report showed
Blanton questioned Parker at length
about his employment by the Board
of Trade as a tax expert, for which
he was paid $5,500. Neither Blanton
nor other members of the subcom
mittee. however, questioned him about
the features of his report which
showed Washington’s high tax burden
in comparison with 43 other cities.
Intsead, Blanton, through a long
series of questions brought out his
usual argument that Washington has
a low real estate tax.
Many of the questions fired at
Parker obviously were intended to dis
credit him as a tax expert as well as
the report he prepared for the Board
of Trade.
The supplemental report covering
(See w7$£OUT, Page A-2.)
LATEST TAX PLAN
YIELD IB42.000.000.
TREASURY!!!!
Senate Committee Still Is
Groping for Ways Out of
Revenue Maze.
THREE SUBCOMMITTEES
NAMED BY HARRISON
Word Passed President Desires
Congress to Stay in Session
Until Bill Is Passed.
BACKGROUND—
President Roosevelt last Febru
ary recommended substitution of
tax on undistributed corporation
profits for existing corporate levies,
stressing “simplification” possible
by following this procedure. Two
months later, House passed bill fol
lowing suggestion, but so compli
cated that few members understood
ramifications.
Senate Finance Committee is now
considering raising extra revenue
through higher rates for existing
corporate and individual taxes,
RV thf. IttAelateH Ppm.
The Tareadury estimated today that
the latest compromise tax plan of tha
Senate Finance Committee would pro
duce $642,000,000, of which $173,000,
OOO would come from individual in
come taxpayers.
Indicative, however, of the fact the
committee still is groping for an
agreement on how to rewrite the tax
bill as it passed the House were re
quests for additional estimates on
other ways of raising the *623,000.000
of permanent revenue sought by Presi
dent Roosevelt.
Chairman HarTison named three
subcommittees, to report Wednesday
morning on the “windfall'' tax feature
of the measure, on a provision for re
funds on floor stocks on hand at the
time of invalidation of the A. A. A.,
and on “the question of insurance
that might be applied to pay the
Goverment's taxes.”
Adjournment Must Wait.
The committee planed no further
sessions until Wednesday.
In the face of the delay in reaching
an agreement on the tax controversy,
word was passed in responsible Capitol
Hill sources today that President
Roosevelt considered tax legislation es
sential and believed Congress should
stay in session until a bill goes on tha
statute books.
The Treasury, Harrison told news
men, handed over figures today to
show also that, by retaining perma
nently *he present excess profits and
capital stock taxes, which would be
kept only temporarily and at half rates
under the House bill, $168,000,000 of
annual revenue would be produced.
In addition, the Treasury estimated
that $107,000,000 in additional income
would be brought in by putting a 35
per cent tax on undistributed corporate
income in excess of half of total in
come.
Individual Burdens Increased.
The compromise tax plan would
place an 18 per cent tax on corpora
tions' statutory net income, which the
Treasury said would yield $244,000,
000; a 7 per cent tax on undistributed
adjusted net income, which would
produce $255,000,000, an Increase tha
present normal income tax from 4 to
5 per cent, which would bring $173,
000,000.
Corporation dividends to stockhold
ers would be subjected to the latter
tax from which they now are exempt,
and this alone, Harrison said, would
account for $113,000,000 of the $173,•
000,000.
Although he said last week he
thought the bill would be reported
out by the middle of this week the
chairman told reporters today he had
“an optimistic hope” for the end of
the week.
Split on Individuals' Tax.
On the proposal to Increase the
normal tax rate on individual incomo
from 4 to 5 per cent, the committee
was split so badly that it appeared
uncertain whether it could obtain a
place in the bill.
There also was division in the com
mittee as to how high the surtax on
undistributed profits should be, but
sentiment was veering toward a
stiller levy than was contained In
the compromise which committee
members considered last week.
That compromise would have placed
a 7 per cent surtax on income which
corporations fail to distribute to
stockholders in the form of dividends.
Some members of the committee
argued privately that the compromise
plan would meet with no more favor,
and perhaps less, among business men,
(See TAX, Page A-2.) '
U. s„ finlandTign 1
TRADE AGREEMENT
Pact Will Become Effective fot;
Three Years If Ratified by
Countries.
By the Associated Press.
The United States and Finland to
day signed a reciprocal trade agree
ment designed to expand their com
mercial relations.
The pact, marking the fourteenth
to be negotiated by this Government
with a foreign nation, was signed at
the State Department by Secretary
Hull and Eero Jarnfelt, Minister
from Finland.
Details of the agreement tempo
rarily were withheld, although the
State Department said It would be
come effective for an initial period
of three ymrt 30 days after it la
ratified by Jpe two countries.

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