Evening star. [volume], May 21, 1936, Image 1

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

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WEATHER. 1 f
-.JUm'S; • The °n,y evening paper
morrow fair and slightly warmer; mod- 111 Washington With the
"rSJSK^raSV 5 Assorted Press News
yesterday; lowest. 50, at 4:45 a.m. today. and WirephOtO Services.
Full report on page B-12.
Clo.int New York M.rktl., P«t. 20___
No. 33,623. arsaa ^sa.iSa.''b“sWashington, d. c„ Thursday, may 21, 1936.—fifty-four pages. ***<*> m..». p...., two cents.
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TRUCKS GUARDED
Drivers Beat Off Pickets on
Roads In and Out of
Baltimore.
BOO ARE DECLARED OUT;
POLICE GIVE CONVOYS
Guhs Blaze and Stones Are Hurled
During Night After Meeting
Votes Walkout.
By the Associated Press.
BALTIMORE. May 21.—Fist fights
and new attempts to block the move
ments of trucks today marked a freight
truck drivers' strike that earlier had
precipitated shooting and stoning.
Labor organizers claimed the strike
’ was general on routes In, out and
Through Baltimore. Police radio cars
convoyed trucks within the city limits.
State police patroled the highways.
Louis Frank, a driver, told police five
men attacked him and his colored
helper. Daniel King, a colored driver,
said he used an iron bar to beat off
two men who boarded his truck. John
Neighbors reported five men in an
automobile forced his truck to the
curb. A striker and a terminal night
watchman swapped blows in an argu
ment.
800 Estimated Out.
The estimates of J. E. Rose, secre
tary of the local union, showed 800
©f the 1.200 members of the Truck
Drivers. Chauffeurs, Delivery Men and
Helpers Union were on strike.
Rose claimed freight movements
had ceased between Baltimore and
New York. State police said trucks
ftill were moving, however. Reports
from Philadelphia and Newark were
that no trucks had been halted there.
Union pickets had been instructed
. to avoid trouble. Rose said. He
blamed the strike on the refusal of
two Baltimore companies to recognize
the union. Wages did not enter the
question, he said.
Harry Cohen, union official, said the
refusal earlier this week of a trucking
firm (Union Terminal Co.) to ratify
an agreement with the Truck Drivers,
Chauffeurs, Delivery Men and Helpers'
Union started the trouble.
Between 400 and 500 freight truck
drivers voted the general strike at a
meeting here last night.
Trucks Fired Upon.
Flying squads of pickets harassed
trucks on the Philadelphia road and
the Washington-Baltimore Boulevard
during the night. Two drivers re- j
ported they were fired upon. Others
said stones were hurled at their j
trucks.
A State police convoy, under Capt. j
McK. Johnson, went to the Delaware
line early today to escort 21 trucks
into the city. All available troopers:
were on duty during the night to
patrol the main highways.
George A. Seeburger, owner of one
trucking firm, said he had been "hav- !
ing trouble for several months.” Yes- i
terday afternoon, he said, he armed 1
his drivers with clubs and sent guards
with them. About 15 or 20 of his i
trucks were halted, and some returned
to their garage, he said.
Violetville Truck Attacked.
James B. Hole and J. Norman Geipe, I
officials of two other companies, said j
their machines still were in opera- j
ticn.
Charles Weidenheimer of Violetville. j
driver of a Washington-Baltimore
truck, exhibited a shattered windshield
today. He told police a striker had
fired at him.
Near Halethorpe, on the Washing
ton-Baltimore Boulevard, another
driver reported he had been fired
upon, but had not stopped.
At Elkridge, and points along the
Philadelphia road, drivers reported
Stones were hurled at them.
Many truck owners in the city or
dered operations halted and some sent
out messengers to order drivers en
route to Washington and Philadel
phia to return to their garages.
MARY MILES MINTER
EXPECTS TO TESITFY
Mother Also Probable Witness in
$200,000 Suit Against
Brokerage Concern.
By the Associated Press.
LOS ANGELES. May 21.—Mary
Miles Minter. film beauty of the early
’20s, expected a call to the witness
chair today in her mother's $200,000
recovery suit against a brokerage con
cern.
Joseph Lewinson. attorney for the
plaintiff, also said the mother, Mrs.
Charlotte Shelby, might testify. Rep
resenting her daughter’s interests, she
charges that Blyth & Co. is liable
lor defalcations of its one-time agent
Leslie B. Henry.
What normally would be a dull,
flgure-choked civil suit is being tried
against a backdrop of dramatic re
minders of a 14-year-old mystery, the
•laying of William Desmond Taylor.
In an attorney's opening statement,
Henry, now serving an embezzlement
sentence, was pictured as having used
Taylor’s puzzling death as a black
mail threat against Mrs. Shelby.
“The Taylor murder case has never
been closed as far as this office is
concerned,” District Attorney Burcn
Fitts said when asked who two of his
Investigators were attending the trial.
SIX LEPERS STILL FREE
Fugitives Who Murdered Seven
Believed in Borneo.
MANILA, May 21 <A*V—New tales
of terror were awaited by authorities
today as they gave up hope of imme
diately recapturing six escaped lepers
who killed seven Filipinos on their
flight from the world’s largest leper
colony at Cullon. Constabularymen
said the sextet probably reached Bor
neo in a stolen fishing craft wh*e
* craw of four they murdered. *
Announce Pact
H. A. ENOCHS,
Of the Pennsylvania Railroad.
GEORGE M. HARRISON,
Chairman of the Committee
for Railway Labor.
—A. p. Photo.
RAILROADS REPORT
—
Protection of Employes
Ousted by Mergers
Is Provided.
Long-sought protection of employes
thrown out of work in railroad con
solidation is provided in an agree
ment between rail labor and manage
ment announced today by representa
tives of both after a conference with
President Roosevelt.
The agreement, which terminates
long negotiations, provides:
A scale of dismissal wages ranging
up to one year’s salary for employes
who have been in service 15 years or
longer. At their option, workers also
would be entitled to accept partial
salary payments over a period of
months.
For employes who had worked 15
years this latter scale would provide
60 per cent of regular salary for 60
months.
The agreement was signed in the
early morning nours today, ueorge
M. Harrison, chairman of the Com
mittee of Railway Labor Executives,
told reporters the call on Mr. Roose
velt was merely to report what had
been done.
Asked what the President's reaction
was, Harrison said:
"He asked us to do this ar.d we
simply reported it had been done.”
Refers to President’s Plea.
Harrison referred to a plea from
Mr. Roosevelt in March that rail labor
and management get together on a
voluntary protection agreement.
The difficulties, which have now
been ironed out, arose over the plans
for co-orlnation, unification and pur
chase aimed at the emergency rail
road and transportation acts ot 1933.
The purpose of this act was to pro
mote elimination of railroad waste
and inefficiency, and at the same
time to protect the employes.
The principal concession negotiated
is that each railroad contemplating
co-ordination shall give at least 90
days’ written notice to the employes,
and that such notice must contain a
full and adequate statement of the
proposed changes, including an esti
mate of the number of employes of
(See RAILROADS, Page St)
DEBT PARLEY UNLIKELY
Chamberlain Sees Time Not Ripe
for Discussion.
LONDON, May 21 (TP).—Great Brit
ain still is not ready to Initiate war
debt discussions with the United
States.
Neville Chamberlain, chancellor of
the exchequer, answered a question in
the House of Commons by saying he
was unable to add anything to Brit
ain s last default note of December 10,
which stated the time was not ripe to
start talks, but which reiterated readi
ness "whenever the situation warrants
the hope a satisfactory result might
be reached.”
mm fail
TO END IMPASSE
ON DISTRICT Bill
i
rwo-Hour Session Adjourns
With None of Differences
Settled.
SENATORS BACKING
$5,700,000 SUM FIRM
No Time Set for Another Meeting,
but Efforts Are Expected
to Resume.
BACKGROUND
ln his first year as chairman of
District Appropriations Subcom
mittee. Blanton of Texas jammed
through House supply bill carrying
only $2.700,000 lump-sum contribu
tion to District. Second “feature”
of House bill was provision District
employes earning more than $2,400
yearly could hold no outside posi
tions.
In Senate. District lump sum was
raised to $5,700,000, amount given
last year, but conferees between two
branches immediately became
deadlocked.
- I
House and Senate conferees ended
another two-hour session today with- |
out settling any of their differences
on the 1937 District supply bill, of!
which the amount of the Federal pay
ment is the main issue.
While no time was announced for ;
another meeting, it is not believed the 1
conferees have parted indefinitely.
All indications were the Senate
members are standing their ground in
support of the budget recommenda
tion for continuation of the Federal
share at $5,700,000 toward a total
bill of approximately $43,000,000.
The House bill sought to slash this
Federal payment to $2,700,000, but
Representative Blanton of Texas went
even further late yesterday by intro
ducing a continuing resolution under
which no Federal payment whatever
wculd be made tow ard expenses of the
National Capital His resolution would
merely continue salaries and main
tenance items as of last year.
Hearing Made Public.
When the conference adjourned
about 12:30 p.m. the Senate group
made public a 53-page record of the
separate hearing it held May 7 with
a group of tax experts containing data
to support its position on the Federal
payment.
.Biamon, cniei aavocaie oi reaucuon
In the Federal share toward District
expenses, emerged from the conference
room still carrying the stack of books
ind documents he has brought to pre
vious conferences. He was smiling
jroadly. but answered all questions by
referring newspaper men to the chair
man of the Senate group. Senator
rhomas of Oklahoma. Thomas made
10 comment on the day's proceedings
aeyond the brief announcement that!
no agreement had been reached.
Parker's Tax Data.
The supplemental hearing made \
rublic by the Senate conferees con
sisted mainly of an examination of
H. Parker, tax expert for congres
sional committees for the past 12
.'ears, who recently prepared a fac
ial report analyzing the tax burden
if Washington and 43 other large
pities.
Parker told the Senators he stands
iy the facts in his report, which !
showed, in substance, that although
Washington ranks only fourteenth in
population, It stands third in per cap
ita total tax burdens among the 44
hties, including city and county taxes
:lsewhere.
He explained that he based his tables
pn total tax burdens rather than on
property taxes, because no real data
is available to show accurately the j
ratio of true value to assessed value 'a !
the various cities. The reason the
Senators assembled this tax data is
pecause the chief argument of House
members in seeking to reduce or
?liminate the Federal contribution is
itr„eUinnt/m in unHortoypH
Accuracy Wanted, Says Glass.
While questioning Parker, Senator
31ass, Democrat, of Virginia, stated;
“What the Senate conferees are
specially interested in is determining,
so far as they may, the accuracy of
your summaries here, which are de
cidedly in contravention to what has
been contended in the effort to deprive
the District of Columbia of the lump
sum appropriation approved by the
budget and approved by the Senate,
the contention being that the taxes,
per capita tax rate, in the District of
Columbia Is lower than that in any
other comparable city in the United
States.”
Parker—"I do not see how that can
be contended, Senator. It may be
that somebody could contend that in
respect to real property only, but I
was unable to find a basis of fact to
support that contention.”
Senator Thomas — “You contend
then, that the correct basis is a per
(See~D. C. BILL, Page 2.)
Texan Dies in Plane Crash.
ITASCA, Tex., May 21 (/P).—Capt.
W. K. Ennis, Texas National Guard
jffleer, was killed near here last night
when his plane crashed in a field.
Would-Be Rescuer Is Rescued
As Mother Cat Puts Up Fight
By a Stan Correspondent ot The Star.
SANDY SPRING, Md., May 21.—
Taylor Cantwell, member of the Sandy
Spring Fire Rescue Squad, has a defi
nite disinterest in family abandon
ment cases today.
Cantwell climbed a 75-foot tree to
restore an errant mother to her off
springs yesterday and barely escaped
with whole skin.
A rescue call carried the squad to
the home of Mrs. Edna TJiomas to
take down a mother cat that 4had
deserted her two-day-old kittens and
taken refuge in the topmost branches
of a towering hickory.
Cantwell volunteered to clamber up
the tree and nearly reached his objec
tive when Mrs. Cat leaped at the fire
man, buried her claws in his face and
held on.
Fellow firemen on the ground below
realized something had to be done to
rescue the would-be rescuer and Chief
Robert Cuff sent Frank Eley up the
tree to assist him.
Eley took the cat off Cantwell, car
ried it back to the kittens in the cellar
of the Thomas home. Comrades ad
ministered to Cantwell's wounds.
/IHAT WHS
/WHAT I WANTED.
THEY LOOK HOPEFUL)*
JFORTHERARTYf|
' (^Sydont^
S / looks©HOT r
MR. HOOVER STEPS OUT!
I
Tells Jury in Murder Plot
Trial of Relations With
Arthur Beall.
BY W. H. SHIPPEN. Jr.,
Staff Correspondent, of The Star.
HAGERSTOWN, Md„ May 21.—Mrs.
Anne M. Lyddane, comely blond
matron and former Rockville bank
secretary, took the witness stand to- j
cay to defend herself against charges
she conspired with Washington rack
eteers to murder her husband.
The man whose death she is accused
of plotting was to follow her to the
stand. The latter defense witness is
the good-humored Francis iSlom)
Lyddane, Rockville restaurant man
ager.
Mrs. Lyddane related in detail her
affair with Arthur Beall. Darnestown j
garage man. The implication was the
racketeers were blackmailing her be- :
cause of their knowledge of her love ;
tor Beall. #
Mrs. Lyddane assumed the stand
at 9:30 a m., when the trial resumed !
for the fourth day. She said she was
30 years old and married Lyddane at
the age of 19.
Met Beall in 1930.
Mrs. Lyddane told the jury she first
met Beall in 1930 at the bank where
she was employed as secretary to the j
president. She later saw the garage i
man at a bowling alley her husband
was managing at the time. She said:
“Arthur (Beall) asked me to go to
town with him."
“Did there come a ‘ime when you
yielded?" asiced Defense Counsel Sted
man Frescott.
lea, mr. .tj vsi-Ui., will, juyuuauc
said.
The defendant then related how
Beall’s wife filed suit for divorce in
December, 1333. Tlie suit was dropped
when Beall made a property settle
ment and agreed to see no more of
Mrs. Lx.ldune.
Tne matron said she did not see
Beall for several months, and then
saw h*m by accident at the races
at Laurel.
Mrs. Lyddane told the jury she be
P'c.n to meet Beall at Lincoln Way Inn
and they us^d the room o, the bar
tender, John H. (Googy) Camell, ex
convict and the State's star informer.
Tells of Paying Camell.
Mrs. Lyddane testified she began
paying Camell small sums, such as
50 or 75 cents.
The implication was the money kept
Carnell’s mouth shut.
Mrs. Lyddane declared this petty
blackmail grew until a man telet honed
her at the bank and demanded $200.
She said she got the money and
handed It to a stranger so he would
not "disclose certain things."
Mrs. Lyddane testified the man was
in an automobile bearing Ohio license
tags. She added when the money
changed nands the stranger snarled:
"Don't take this license number.
These tags were made in tne
Ohio pen ”
The defendant said that night she
was cooking dinner for her husband
when he came in and saw she was
agitated.
"What’s the matter, honey?” Mrs.
Lyddane said her husband asked.
Tells Husband of Trouble.
The defendant said she explained
she had handed over money to racket
eers who threatened to kidnap him.
“Anne, if you’ll Just tell me the
(See LYDDANE, Page 2.)
SHOOTING REPORTED
IN CARACAS STREETS
Maracaibo Hears 20,000 Citizens
Are Demonstrating Against
Venezuelan Congress.
By the Associated Press.
MARACAIBO, Venezuela, May 21.—
Unconfirmed reports from Caracas,
the capital, said shooting had oc
curred as 20,000 citizens demonstrated
igainst the National Congress.
National labor unions, including
those in Caracas, had called a 48
hour general strike.
Here in this city, the center of the
nation's oil-producing area—one of
the greatest in the world—the shut
down was almost complete.
Army, navy and police guards
patrolled the streets ^prevent dis
orders.
Criticism of Traction Service
“Fomented” Hanna Charges
Indicates His Belief It W as Done by
District Officials as Well as Individ
uals. Cites Lack of Co-operation.
This is the flfh of a series of j
articles on Washington transporta- t
tion difficulties.
BV JOHN H. CLINE.
Striking back at critics of the mass
transportation system in Washington.
John H. Hanna, president of the
Capital Transit Co., charged today
that most of the criticism of his or
ganization had been "deliberately
fomented” by certain officials and
private citizens in the District.
To a statement defending the qual
ity of the service on Washington's
street car and bus lines, Hanna
added:
"Our major trouble is that we
have not had the proper co-operation
from the Public Utilities Commission,
the Police Department and the press.
"Many of the critical statements
at the commission's recent transit
I
hearing were grossly exaggerated and
come were absolute fabrications.
“Furthermore. I want to express
my personal belief that the unfavor
able sentiment developed at the hear
ing was not the true sentiment of the
people of Washington—it was de
liberately fomented."
The transit company president re
fused to name the individuals he held
responsible for fomenting this senti
ment but indicated his belief it was
done by District officials as well as
individuals.
“I realize there is some basis for
complaints against the service." he
added, "but I know it is not as bad
as represented at that hearing. We
haven’t done a perfect job, but we
are not such fools as some people on
the outside seem to believe.
“The service has been improving
"i See TRANSPORTATIONrPage 3.)“
I
PARIS 10 PROTEST
Italy's Action in Ethiopia
Held Inacceptable— Ba*
doglio Returning.
By the Associated Press.
PARIS. May 21— Joseph Paul-Bon
cour. acting foreign minister, declared
tonight Italy's expulsion of a French
priest from Ethiopia was "inaccepta
ble" and an authoritative source said
France would protest vigorously.
This sudden development in the
Franco-Italian situation came shortly
after the French government refused
to withdraw colonial troops from Dire
dawa. strategic center on the railroad
from Addis Ababa to the sea.
Intense Interest Aroused.
The case of Msgr. Andre Jarosseau.
78-year-old leader of Roman Catholic
mission in Ethiopia, aroused intense
official interest.
The prelate, who had been in Ethi
opia 50 years, ministering especially to
native lepers, was ordered out of the
country by Italian authorities yester
day on charges of having made "hos
tile demonstrations against Italy.”
"The sole question to discuss.” Paul
Boncour declared, "is whether the ex-,
pulsion was justified. We think it was
not.”
Confers With Ambassador.
Paul-Bancour conferred immediately
with Charles Roux, French Ambassa
dor to the Vatican. Afterward he said
Count Charles de Chambrun, French
Ambassador to Rome, would make rep
resentations to the Italian government.
Official sources said the 150 co
lonials would continue to guard the
Diredawa shops on the French-owned
railroad, despite a request from Italy
that they withdraw.
Such a withdrawal, these sources
believed, would be tantamount to
recognition of the Italian regime in
Ethiopia.
In asking that the troops be moved,
Italy insisted her army of occupation
was capable of maintaining order
throughout the conquered land.
Railroad officials also declined an
Italian request that they permit the
shipment of 840 tons of provisions
from Djibouti. French Somaliland, to
the Fascist troops in Addis Adaba.
The request was turned down on the
ground that the road's war-time neu
trality still is in force.
Confers on Expulsion.
Foreign Minister Joseph Paul-Bon
cour conferred today with Charles
Roux, French Ambassador to the Vati
can, concerning an alleged Italian or
der expelling Msgr. Jerosseau, French
apostolic vicar at Harar, from Ethi
opia.
The 84-year-old churchman was
reported to have been accused by the
Italians of spreading “anti-Italian
propaganda.”
A zone was created at Djibouti over
which foreign planes were forbidden to
fly, because of new coastal defense
works.
Leon Blum, who probably will be
France'* premier within a fortnight,
seized an early oppoMinity to move
tSee ETHIOPIA^Page t.)
D
Effort to Prevent Loss of
Leading Vote-Getter Begun
by New Deal.
By the Associated Press.
Sharp political interest attached to
day to efforts of Democrats, led by
President Rooseveit, to persuade Gov.
Herbert H. Lehman of New York to j
run for re-election.
The sudden announcement from the
Empire State's chief executive that he
would not seek a third term, brought
immediate expressions of hope that I
he would change his mind. Signs of
a "draft Lehman" movement were in
evidence.
Democratic leaders lauded his rec- 1
ord in office and bore in mind the
phenomenal vote-getting powers he
displayed in the 1934 election. He
carried New York State by more than !
800,000 votes, a record plurality.
Loath to Lose Strength.
New Dealers were loath to lose the j
strength they expected Lehman to j
lend to his party's ticket next Fall.
The Governor made his brief an
nouncement at Albany yesterday, say
ing. "I feel the time has come when
I may ask release from the cares and
responsibilities of the governorship.”
It was recalled that when Lehman
entered politics in 1928, under the i
wing of Mr. Roosevelt, then Governor
of New York, he severed all connec
tions with his vast business enter
prises. He had been a textile manu
facturer, banker and director of a
dozen corporations. There was spec
ulation that the recent death of his
brother. Arthur, member of the bank
ing firm of Lehman Bros., may have
(See LEHMAN, Page~■|7)
SMUGGLING CITED
IN NOTES TO JAPAN
Creditors of China Call Attention
to Customs Situation on
North Border.
By the Associated Press.
NANKING, May 21.—An authorita
tive source said today that France was
ready to follow the lead of the United
States and Great Britain in bringing
to the attention of the Japanese gov
ernment smuggling situation in North
China.
The French, it was said, would say
that serious repercussions would be felt
by China’s foreign creditors should the
smuggling continue.
(The Chinese have complained that
their Customs officials in Northern
China are unable to function efficiently
because of the presence of Japanese
soldiers. The United States and Great
Britain pointed out to Japan that the
breakdown in Chinese customs collec
tions seriously impaired China’s rev
enue and consequent ability to pay
foreign debts.)
British and Americans said they ex
pected further ^presentations would
be made to Tokw.
TAX AGREEMENT
IS VOTED, 18 TO 1,
BY SENATE BODY
Proposal to Boost Personal Rate
Fails—Flat 18 Per Cent Levy
Set on Corporate Returns.
HARRISON PREDICTS MEASURE
TO GAIN FLOOR IN WEEK
8500,000,000 Expected to Be Raised
Under Present Schedule—8123,000.
000 Short of Sum Sought.
By the Associated Press.
Whipping all but one member into line, the Senate Finance
Committee today reached agreement on a compromise plan for
increasing corporation taxes, but scuttled a proposal, at the loss
of considerable revenue, for boosting the normal income tax rate.
Moving along swiftly after days of delay, the committee thus
reached accord on the vital part of the revenue bill.
The compromise would call for a flat 18 per cent tax on corpo
ration income; a flat 17 per cent on income withheld from distri
bution; exemption of $1,000 from taxation for corporations making
no more than $20,000 a year, and retention of the present capital
stock and excess profits taxes.
MAIL FRAUDS LAID
TO TOMMIES i
—
1
Bases Charge on Appeal for
Funds When Group Pos
sessed $21,000.
BACKGROUND— '
Prosperity lor everybody through 1
a 1200-per-month pension for all
persons more than SO years old is
the dream of Dr. F. E. Townsend, j
California physician and real estate
promoter. R. E. Clements, also a
promoter, joined him in spreading
his gospel, and in two years the
movement has collected millions of
followers and nearly fl,000,000 in
cash.
Fearful of political influence, 1
House members agreed on investi
gation; probe has been under way
about two months. On April 1
Clements retired from movement;
later told committee he had taken
in nearly $80,000 in two-year period.
BY JOHN C. HENRY.
The flat charge that the Townsend
old-age pension organization used the
United States mails to defraud was j
made by James R. Sullivan, counsel
for the Bell Investigating Committee,
as Dr. F. E. Townsend resumed the
witness stand today.
Sullivan's charge was based on
action of the organization in sending
out an urgent appeal for "congres- j
sional action" funds when more than |
$21,000 already was on hand for that
purpose.
. An original appeal had raised j
$23,490. Sullivan charged, with only \
$1,800 of the amount spent for this
special purpose when a second appeal
was dispatched to all clubs.
This follow-up was written in tele
gram form, entitled a “Townsend
gram" and was sent through the mail.
Extra $11,490 Realized.
An extra $11,490 was raised by this '
appeal, couched in most urgent
terms.
Ur. Townsend denied knowledge of
the second appeal and said he would
"refuse to concede" any fraud.
One issue went to a roll-call vote j
this morning as Representative Collins.
Republican, of California objected to
Sullivan's reading of long testimony
taken by the subcommittee in Cali
fornia.
Chairman Bell overruled the objec
tion and was sustained by a 4-to-2 vote.
The testimony was that of O. Otto
Moore, member of the pension organ- j
ization's Congressional Committee,;
who told how only part of the con
gressional fund was used for that
DurDose.
Sees Claim Unjustified.
“There is absolutely no justification !
for the claim of ’notable victories,’”
Moore testified. "We had suffered one
disappointment after another.” The
claim was made in the Townsendgram.
Moore also quoted R. E. Clements as
saying "we don't give a damn about
the old people” during a conference
of Townsend leaders in Washington.
When a Mrs. Marshall protested and
"cried on Dr. Townsend’s shoulder.”,
the doctor said. "What of it, what of
it?” Moore testified.
Dr. Townsend broke in to deny the
incident, but admitted such a con
ference was held.
"Dr. Townsend. In December. 1934.
you made an appeal in your weekly
for a congressional fund?” Sullivan
began.
"Yes,” the doctor answered.
"And by this appeal you raised $23.
490 to send a delegation of seven men
(See”TOWNSEND, Page A-3.)
LEBRUN OPENS FETE
COLMAR. Prance. May 21 (/Pi.—
President Albert Lebrun of France
said today he deplored disregard of
international treaties.
In a speech inaugurating the Na
tional Wine Festival, the Chief Ex
ecutive said: “Nothing is stable in the
international situation.
“We see principiles—notably those
regarding fidelity to International en
gagements—collapsing. Various great
peoples seek to combat their internal
discontent by turning their backs on
liberty and Establishing regimes of
force " “
Smiling broadly. Chairman Harri
ion said the committee had made
'very good progress" and he expected
t to be able to report out a bill early
lext week.
Many Disputes.
So greatly - ♦ odds was the commit
ce during today’s session that some
nembers at one time threatended to
eave the committee chamber.
One voted divided the members 11
o 8.
Harrison said the compromise cor
loration tax plan would raise "some
vhere over 5500.000,000" and sa d the
[Treasury had been asked to submit
:xact estimates as to the yield.
The indication was it would fall
onsiderably short of the $623,000,000
if permanent revenue sought by Pres
dent Roosevelt to meet the cost of
he new farm program and prepay
nent of the bonus. Harrison had no
lefinite reply when he was asked
vhere the committee would get the
remainder of the money.
Agree on Penalty.
The committee, he said, also agreed
o strengthen a section of existing law
iroviding for penalty taxes on corpora
,ions which build up "unreasonable
■urpluses.”
Also approved was an amendment
>y Senator Lonergan. Democrat, of
Connecticut, to permit insurance to be
aken out, payable to the Government,
or meeting estate taxes. The amount
if the policy would not be counted in
:he estate unless It was greater than
the estate tax.
Reverting to the new corportion tax
plan, Harrison said it was not as far
teaching as the bill passed by the
House, but w'ould compel the distribu
tion of corporate surpluses and. there
fore. would "carry out suggestions of
the President.”
Tax on Dividends.
The plan would make dividends sub
ject to the present normal income tax
of 4 per cent, but the committee re
jected suggestions for boosting the lat
ter to 5 per cent.
The compromise. Harrison said, was
approved by an 18-to-l vote.
He told reporters the committee
“had a great deal of controversy at
first" during the morning session, in
volving a "good deal of cross fire."
New Plan Discussed.
One particular plan, which has not
attracted much attention hitherto, re
ceived particular notice today.
This would retain the principle of
the present flat tax on net income
tnow ranging between 12'i and 15
per cent) and at the same time seek
to induce dividend distributions in
line with administration officials’ sug
gested policy.
It would impose a flat tax or 25 per
cent on all net income of a corpora
tion. The corporation would, however,
be permitted to deduct from Its tax
able income an amount equal to 40
per cent of the amount of such income
paid out as dividends.
Expressed another way, the plan
would put a flat 15 per cent tax
on net income, with a surtax added.
The surtax would range up to 10
per cent, depending on how much
of the income was distributed to
stockholders. If none was dis
tributed, the surtax would be 10 per
cent: if all was distributed, there
would be no surtax.
The plan also would repeal the
capital stock and excess profits taxes
and the present exemption of divi
dends from the normal 4 per cent
income tax. Treasury experts esti
mated the program would raise $641,
900.000 over and above the present
levies.
I-1
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