Evening star. [volume], June 26, 1936, Image 1

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

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WEATHER.
<U 8. Weather Bureau Forecast.) . The Ollly evening paper
Cloudy and slightly warmer tonight; in Washineton with the
probably local showers tomorrow, followed A ■ . , ®n vt tne
by cooler. Temperatures—Highest, 87, at Associated rreSS NeWS
noon today; lowest, 62. at 5 ajn. today. and Wirephoto Services
Full Report on Page 16. r
Closing New York Markets, Page 20 _^^urlFs^'^eiiy73
Ko. 33,659. gras WASHINGTON, D. C,, FRIDAY, JUNE 26, 1936—FIFTY PAGES. *** on M..n. Associated Pres,. ■ TWO CENTS.
NAME OF ROOSEVELT IS PLACED
IN NOMINATION BY JUDGE MACK;
FEDERAL AID PLATFORM BASIS
- * mmmmmmmmmj""' «' , "1 ❖ -
Nominator Indicates Principles
of New Deal, as a Government,
Will Be Carried Out.
S
BREATHING SPELL’S END SEEN
AFTER NOVEMBER ELECTION
‘More Action Under an Inspired Leader’
Promised—Cabinet and Members of
Democratic Congress Are Lauded.
Text of Judge Mack’s speech on Page AS.
BY G. GOULD LINCOLN,
Staff Correspondent of The Star.
PHILADELPHIA, June 26.—Franklin Delano Roosevelt of New
York—and Washington—was today placed in nomination for the
presidency by Judge John E. Mack of Poughkeepsie, while the
Democratic National Convention roared its acclaim.
The candidate was pictured by Judge John E. Mack as always
6 great humanitarian, an antagonist always of “special interests.”
The President’s chief sponsor promised “more action under
the inspired leadership of that great American whose name I
give you as your candidate for President, no longer a citizen
merely of one State, but a son of all the 48 States, Franklin D.
Roosevelt.”
If Judge Mack is correct in his diagnosis, the principles of the
New Deal—as a government—are to be pressed; the breathing spell
will be over after the November election.
» It was Judge Mack, who four years ago was selected by Presi
dent Roosevelt, then Governor of New York, to place his name in
nomination at the Chicago National Convention of the Democrats.
It was Judge Mack who placed Roosevelt in nomination for State
Senator in New York 26 years ago.
Praises Cabinet and Congress.
* The nominator of the President had a good word to say for
the President’s cabinet and for the much-criticized Democratic
Congress, during his speech extolling the President and his admin
istration. "He (the President) surrounded himself,” said Mack,
“in his cabinet with the most able and progressive representatives
in the Union. With the aid of this splendid cabinet, with the aid
of a Democratic Congress and with the aid of the forward-looking,
country-loving and far-seeing progressives and Republicans, he
proceeded to place this country on its feet.”
The Mack speech nominating President Roosevelt for a second
term was made to an audience entirely sympathetic. No dissenting
voice will answer the roll call on the presidential nomination; no
other candidates will be placed in nomination. The renomination
of the President is only a question of a few hours—until the roll
can be called, after his nomination has been seconded by speakers
from every section of the country.
Trained for Presidency.
Roosevelt’s early career, Judge Mack indicated, was merely a
training for the work he was to do later as Chief Executive of the
United States. But always Franklin Delano Roosevelt was found
aligning himself with the common people and against their ex
ploiters, the big and selfish interests. As State Senator he fought
the election to the United States Senate of a man definitely tied up
with a powerful traction interest, although the man had the back
ing of a leader of the Democratic party. As Assistant Secretary of
the Navy 4n the Wilson administration he continued to serve his
country, and in 1920 his party recognized “his fighting ability” by
nominating him for Vice President.
“Outstanding above all in that campaign,” said Judge Mack,
“was his sportsmanship in defeat. He could take it.”
The President’s serious illness, which came in 1921, was de
scribed by Judge Mack as a preparation by Providence “for the
greater work the future had in store for him. No one can have full
* sympathy for the misfortunes of others,” the speaker continued,
“until and unless he has suffered him-.j,
Beil. All Ui tuc auuciuig wuuusii
which he has gone has broadened his
heart, has given him a greater capac
ity for sympathy and understanding
of human needs of all kinds.”
Answered Call of Friendship.
Roosevelt’s return to public life, as
candidate for Governor of New 'York,
which was at the request of the then
Gov. A1 Smith of New York and Demo
cratic candidate for President, was not
because of any political ambition of his
own, said Mack, “but solely in answer
to the call of friendship.”
When the crash came, and the coun
try was floundering in despair, "the
country, led by the Democratic party,
turned to this young Galahad for re
lief, for aid and for help.” Under
Roosevelt's leadership. Mack said, “we
have blazed a path to prosperity and
security. Our faces are toward prog
ress. We shall not turn back in this
conflict between greed and humanity.”
< Roosevelt’s enemies today are not
the farmers and the laborers, the men
and women who have been given aid
and employment under the present
administration, said Mack. They are
“they who themselves brought on this
great depression, the great financial
interests whose high-powered sales
men Induced foreign countries unnec
essarily to plunge themselves into debt
and unload their bonds on trusting
American investors.
Ready for Issue.
“We are ready for the issue,” said
the spokesman for the President. “We
* have ended starvation, bread lines,
soup kitchens, and have brought this
country through the greatest depres
sion ever known.”
When New York’s name is reacted
on the call for seconding speeches for
Roosevelt’s nomination It will pass.
The plan. Chairman Farley of the
, Democratic National Committee re
vealed today, is to have Gov. Lehman
of New York make a seconding speech
at tonight’s session of the National
Convention, after all other such
speeches have been concluded and just
before the nomination is actually
made. The Roosevelt leaders would be
delighted if the Governor would give,
In this speech, an Intimation that he
would be a candidate to succeed him
self.
Among those who will second the
nomination of President Roosevelt, in
addition to Gov. Lehman, are several
> other Democratic Governors, including
Gov. James M. Curley of Massachu
setts, an original Roosevelt man. Gov.
Cross of Connecticut Is not to make a
seconding speech, since Attorney Gen
eral Cummings is to have that honor
on behalf of Connecticut. Mrs. Emma
Guffey Miller, sister of Senator “Joe”
Guffey, the Democratic leader of Penn
sylvania, is one of a number of women
who will make seconding speeches.
Others are Mrs. Frank E. Johnease,
chairman of the Idaho delegation to
, the convention: Mrs. Lucretia Del Valle
Grady of California, Mrs. Mary T.
Norton of New Jersey, chairman of the
House District Committee, and Mrs.
Manny Wood Honeman of Oregon, who
is a candidate for Congress.
When the roll of States was called
0 (See DEMOCRATS, Page 4.) |^
Delegates Go Wild
Hailing Roosevelt*s
Nomination by Mack
BY JAMES E. CHINN.
Stall Correspondent of The Star.
PHILADELPHIA, June 26.—On its
homeward stretch, Democracy’s great
1936 political drama is drawing to a
close today with the seventh session,
which may be the last if no candi
dates arise to oppose the renomina
tion of President Roosevelt. It’s a
1 100-to-l shot that nothing like that
will happen.
For some unknown reason the
genuises who run this show scheduled
it to start at 12:30 p.m., Eastern
daylight saving time, the latest since
the convention convened. It’s 12:40
now by that big clock in the center
of the auditorium and there are rather
positive indications there won’t be
the customary hour’s delay in start
ing proceedings.
The band, ’way up there in the up
per tier at the far end of the huge
auditorium is playing a stirring march
tune. Col. E. W. Starling, chief of
the White House Secret Service, goes
to the platform and engages in a
whispered conversation with Forbes
Morgan, secretary of the National
Democratic Committee, and Col. Ed
ward Halsey, secretary of the Senate,
who is acting as sergeant at arms of
the convention. The conversation, no
doubt, concerns plans for the cere
monies at Franklin Field tomorrow
night, at which President Roosevelt
and Vice President Garner are to be
notified of their renomination for
four years more, unless something
unexpected develops.
Heflin on Platform.
The minutes slip by rapidly. • Former
Senator Tom Heflin of Alabama, as
nattily dressed as ever in a white
(See SESSION, Page 7.)
JUDGE JOHN E. MACK.
TOSOFTEN SPEECH
Destroys First Draft of Ac
ceptance Address as
“Too Rough.”
BY J. RUSSELL YOUNG.
Confessing that he had decided to
pull some of his punches. President
Roosevelt today was preparing an en
tirely new draft of the renomination
acceptance speech, which he will de
liver tomorrow night at Philadelphia.
A first draft was completed last
night, he said, but on deciding it was
"too rough,” he destroyed it and
started a new version. He is attempt
ing to keep the speech within 2,000
words, he said.
The President said he listened to
convention proceedings on the radio
last night and had called Senator
Wagner of New York on the tele
phone to congratulate him on his
reading of the new platform. Mr.
Roosevelt declined to comment on
the platform Itself, Indicating he
might elaborate on certain parts of
it in his acceptance speech.
This noon he listened to his old
friend and neighbor. Judge John E.
Mack of Poughkeepsie, N. Y„ nominate
him for re-election. Mack had con
ferred with the President on the nom
inating speech.
Seventy Rills Left on Desk.
At odd moments, the President has
turned his attention to the great batch
of bills dumped on his desk with the
adjournment of Congress. During the
past five days, he has either signed or
vetoed 300 of these measures and still
has more than 70 left.
In the batch of nearly 50 signed by
him today were two affecting the Dis
trict. One provides for the inspection,
control and regulation of steam boilers
and unflred pressure vessels In the city.
The other conveys certain lands to
the Maryland-National Capital Park
and Planning Commission for park,
perking and playground purposes.
The President has not yet set the
hour for his departure from Washing
ton tomorrow afternoon. After the
Philadelphia speech he will go to his
Hyde Park home, in New York, re
maining there until Monday night.
With him he will take the bills not
yet signed. Among these at present
are the Walsh-Healey Government
contract bill and the ship subsidy
bill.
Mr. Roosevelt conferred for two
hours yesterday with Senator Norris,
Independent Republican, of Nebraska.
Shortly before Norris sat down for his
conference, the President had talked
with Robert W. Bingham, Ambassador
to Great Britain, in this country to
attend the Democratic convention.
Bingham's Talk “Political.”
Bingham, who returned to Phila
delphia immediately, said his talk
with Mr. Roosevelt Included "matters
political.”
Norris, who supported the candidacy
of Mr. Roosevelt In 1932, said, as he
emerged from the White House, that
it mattered little to him what sort of
platform the Democrats adopted at
Philadelphia.
“Roosevelt is the platform,” he said,
“and I’m for Roosevelt.”
Norris declared bis readiness to take
the stump this year for the President.
He expressed hope that others of
political views in accord with his
would call a conference in the near
future to outline their course of action.
The Senator predicted Roosevelt
would carry Nebraska in November,
adding that by thus turning prophet
he was breaking a rule adhered to
through his long political career.
Prehistoric City, Believed
Largest in America, Found
By the Associated Press.
LYNCH, Nebr„ June 26.—Dr. Karl
H. Bell, University of Nebraska an
thropologist, said today he and eight
students had unearthed near Lynch
what probably was the largest pre
historic city in North America.
The primitive settlement—described
by Dr. Bell as “one of the most sen
sational sites ever found in this coun
try”—was located beneath the shifting
sands of an ancient desert. The
anthropologist said the discovery indi
cated a Midwestern agricultural civil
ization flourished "possibly 4,000 years
ago.”
The first excavations indicated the
city 3 miles long and a half mile wide,
and large sections evidently were in
habited densely. Remains uncovered
included carbonized ears of corn, lane
'and small beans, and squash. TlJ|i
also are pieces of pottery large enougn
to hold half a bushel of produce.
Or. Bell said a type of house hitherto
unknown also was found. He believed
it a forerunner of the subterranean
houses common to later Nebraska
civilizations.
The scientist attributed the large
size of the city to its “ideal location
for an early civilization,” amid bluffs
above Ponca Creek. The nearby low
land was irrigated naturally by springs,
and the highland to the north was a
rich hunting ground, he said.
There are two distinct layers of soil:
Five feet of sand on top—believed
blown in from the West during cen
turies of desert climate. Lower, there
is a black-colored soil, packed hard,
he said.
r arm, Industry
Control Idea
Advanced.
CONSTITUTION
TO BE UPHELD
i _
Labor Program to
Determine Need
for Change.
By a Stall Correspondent of The Star.
PHILADELPHIA, June 26.—The
Democrats have written a New Deal
platform for their presidential candi
date.
It is consecrated to the theory that
the Federal Government must come to
the aid of the citizens. It goes beyond
that. It firmly advances the idea that
the Federal Government must so con
trol in agriculture and industry that
all citizens may have an equal oppor
tunity.
Throughout the length of the docu
ment runs the theme that the problems
of the day transcend State lines and
State government; that only the Fed
eral Government can effectively and
efficiently deal with them.
The platform meets the wishes of
the presidential candidate. Its draft
ing was followed by him from start
to finish and the platform was not
presented to the convention until
after he had had an opportunity to
scan its final draft and to make such
corrections as he thought fit. One
of the reasons for the delay in the
presentation of the platform to the
convention yesterday was because a
copy of the draft was sent to the
White House by airplane and then re
turned to the leaders here with those
corrections.
without definitely committing the
Democratic party to a certain consti
tutional amendment, the new Demo
cratic platform, under a subhead, ‘ The
Constitution," lays down the proposi
tion that if it becomes necessary to deal
with social and economic problems, the
party will seek "such clarifying amend
ment” as will assure to the legislatures
of the several States and to the Con
gress of the United States, each within
its proper Jurisdiction, the power to
enact laws adequately to regulate com
merce, protect public health and safety
and safeguard economic security.
“Thus we propose,” says the plat
form, “to maintain the letter and spirit
of the Constitution.”
Positions Defined.
As a prelude to this promise of an
amendment to the Constitution if and
when it becomes necessary, the Demo
crats in their platform clearly indicate
the difference between their own posi
tion and that of the Republican enemy.
They clearly indicate also that they do
not believe that the problems of the
day can be dealt with “exclusively” by
the States.
They say:
“The Republican platform proposes
to meet many pressing national prob
lems solely by action of the separate
States. We know that drought, dust
storms, floods, minimum wages, maxi
mum hours, child labor and working
conditions in industry, monopolistic
and unfair business practices cannot be
adequately handled exclusively by 48
separate State Legislatures, 48 separate
State administrations and 48 separate
State courts. Transactions and activi
ties which inevitably overflow State
boundaries call for both State and Fed
eral treatment.
“We have sought and will continue
(Continued on Page 9, Column l7)
STREET CAR CRASH
HURTS TRUCK DRIVER
Vehicles Collide Near Glen Echo
Park—Hit-and-Run Motorist
Injures Girl.
By • Stall Correspondent ot Tne Star.
GLEN ECHO, Md„ June 26.—
Glenn B. Craig, 38, of 3347 M street,
Washington, was seriously injured
here today when a street car plowed
into his truck near Glen Echo Park.
He was taken to Georgetown Hos
pital, where it was said he may be
hurt internally, as well as being cut
and bruised.
Witnesses told Montgomery County
police the street car was proceeding
toward Washington when Craig drove
out of a side road into its path. He
was taken to the hospital by the
Bethesda Fire Rescue Squad.
In another accident Jane Doyle,
11, daughter of Mr. and Mrs. Joseph
A. Doyle, 300 Elm street, Chevy
Chase, Md„ suffered shock when a
hit-and-run motorist struck her bi
cycle as she was crossing Wisconsin
avenue in Bethesda. She was treated
by a neighborhood physician.
NATS RAINED OUT
Harrismen Will Play Two Games
In Chicago Tomorrow.
Special Dispatch to The Star
CHICAGO, June 28.—Rain today
forced postponement of the Nationals’
opening game of a series with the
White Sox and necessitated the sched
uling of successive double-headers to
morrow and Sunday to fill out the
four-game set. Earl Whitehili and
Jimmy De Shong will face Chicago in
tomorrow's twin bill, while Buck New-,
som and either Joe Cascarella or Pete
Appleton will pitch on Sunday. Im
mediately after Sunday’s double-header
the Griffs will entrain for Washington
instead of going to Philadelphia to
await a three-game series to start next
Tuesday. A
!
Long Aides, Free of Charges,
\ Face $250,000 Taxes, Penalties
j
Treasury to Order Assessment Paid
Within 90 Days as Justice Unit
Drops Criminal Counts.
BACKGROUND—
Climaxing feud between Roose
velt administration and Long po
litical machine in Louisiana was
vigorous inquiry by Treasury and
Justice Departments into income
tax evasions by Louisiana group,
with subsequent indictment of
about dozen of the Long followers.
Later, one member of group was
convicted and sent to prison, but
death of Senator Long brought
period of inactivity in following up
other cases. Recently. Justice De
partment dropped prosecution of
remaining individuals and subse
quently was criticized harshly by
members of grand jury.
BY REX COLLIER.
Income taxes and penalties aggre
gating more than a quarter of a mil
lion dollars are to be assessed by the
Treasury against followers of the late
Senator Huey Long, despite cancella
tion of criminal charges against the
group.
Seymour Weiss, treasurer of the so
called Long “machine,” and 10 other
close friends of the former Senator,
will be given 90 days in which to pay
up or to appeal to the Board of Tax
Appeals.
Nolle prossing of the remaining
criminal charges against the group
was approved by the Justice Depart
ment over protest of the Treasury.
Recently nine members of the grand
jury which indicted the Louisianans
criticized United States Attorney
Rene Viosca's action in dropping the
tax charges and declared that, to be
consistent. Attorney General Cum
mings should release from prison
Joseph Fisher, only defendant con
victed.
Customary Steps Being Taken.
With undisguised dissatisfaction
over Justice Department sanction of
the indictment cancellations. Internal
Revenue and Treasury Department
officials are proceeding with “cus
1 tomary'’ steps to enforce collection of
i large sums alleged to be due the Gov
J ernment from the Long followers,
i Taxes and penalties involved in six
of the more important indictments
rseeTAXES, Page 4.)
LEAGUE IN SESSION
jMBZHBK
Moves for New Security
With Italian Sanctions
at Stake.
BACKGROUND—
After months of uncertainty over
sanctions, the present sessions of
League of Nations are expected to
shape its future course and destiny.
With world powers failing to pre
vent annexation of Ethiopia by
Italy through the application of
sanctions, the League now is ex
pected, to lift these penalties and
map some other program to pre
serve its integrity. England, which
took the lead to apply sanctions,
again has taken the helm to reverse
the sanctions.
B) tbe Associated Press.
GENEVA, June 26.—League of
Nations’ delegates, confronted with
proposed reversal of sanctions against
Italy, began a new search for col
lective security in the League Council
today.
Groups of diplomatic representa
tives In gloomy corridors expected two
opposite decisions to emerge from the
session:
1. Suspension of economic and
financial penalties against Italy, con
demned as the “aggressor’’ in East
Africa.
2. Refusal to recognise officially
Italian annexation of Ethiopia, ac
complished after the occupation of
AddiS Ababa by the Fascist military
forces.
Contrasting Spirit.
The spirit through the League’s new
palace contrasted sharply from the
militant attitude of last October, when
50 nations approved application of
sanctions.
Then, after the “condemnation" of
the Invasion in East Africa, the
League, with only a few members
disagreeing, imposed for the first time
its “punitive” measures designed to
compel a member-state to abide by the
decision of the whole.
Today those same delegates acknowl
edged the failure of sanctions, with
Great Britain, the former leader,
heading the procession in the opposite
direction.
League circles said the Council
would facilitate the sanctions question
by referring it to a committee for
study. This program would leave
abandonment of the penalties to sep
arate League states and would bring
before the Assembly only the adop
tion of a resolution condemning in
general terms—without mentioning
Italy—all acquisition of territory by
farce.
A special committee of jurists would
then report to the Assembly, it was
suggested, independent Ethiopia no
longer exists and therejpre does not
(Bee LEAGUE, Ws/s 2.)
PAY ROLL TRUCK
DRIVER MISSING
Machine Carrying $16,000
Disappears and Is Found
With $1,200 Gone.
By the Associated Press.
PAWTUCKET, R. I„ June 26.—
The driver of an armored pay roll
truck containing $16,000 disappeared
today from Main street, although the
truck was found nearby nearly an
hour' later, the operator missing. Po
lice reported $1,200 of the money also
was gone.
Police took all fingerprints from
the car before they opened the locked
machine which disappeared from the
Rhode Island Hospital Trust Co., a
few blocks from where it was found.
Meanwhile Massachusetts and
Rhode Island State police and agents
of the United States Bureau of In
vestigation in Boston sought the
missing driver, Walter Hussey.
Police said they found a discarded
blue shirt In the cab of the truck.
One of two bank guards who said
they left Hussey locked in the truck
when they entered the Rhode Island
bank reported his disappearance.
Morton Swift, a guard, said he first
believed Hussey had taken the truck to
a garage to have the brake repaired.
His failure to return, however, within
a few minutes, alarmed Swift, and he
called police.
Swift estimated the truck had been
gone 25 to 35 minutes before he re
ported its disappearance.
A woman resident of Bowers street
notified police the bank car was parked
near her home. Its presence there, she
said, aroused her suspicions.
Illinois Publisher Dies.
BELLEVILLE, 111., June 26 (/P).—
Woodford W. Evans, 56 years old,
publisher of the Belleville Daily Advo
cate, was found dead in bed, pre
sumably from heart disease, today.
ST. NAZAIRE NAVAL
WORKERS STRIKE
10,000 Cease Work on All
French Ships and Hoist
Red Flags.
H* the Associated Presa.
PARIS, June 26—Naval shipyards
workers declared a general strike at
St. Nazaire today, hoisting red flags.
They stopped all work on new
units for the French navy and oc
cupied the yards.
The strike movement involved 10.
000 employes and five yards—the
Loire, the De Penhoet, and the Loire
St. Denis dockyards; the St. Nazaire
foundries, and the West forges.
The strikers demanded immediate
pay increases and a 40-hour week.
Striking Marseilles sailors, whose de
mands were approved by ship opera
tors, held out today for signed con
tracts before returning to work.
Occupy Vessels.
Naval strikers continued to occupy
their vessels, over which red flags still
flew.
The Federation of Labor came to the
aid of the government in its effort to
end the last of the ‘‘folded arms
strikes.” Workers were urged by the
federation not to call further walkouts
before all means of negotiations with
employers were exhausted.
Strikers who have occupied the
Nancy Gas Works for days were eject
ed upon order of the mayor.
Fresh settlements in various indus
tries brought the number of estimated
strikers down to 150,000.
Bill Is Approved.
The cabinet approved a bill for
the nationalization of war industries
by decree, and planned to submit it
immediately to the Chamber of Depu
ties.
Under the bill, the government
would be authorized to expropriate
all or part of any factory manufac
turing arms, buying up the stock at
its average value for the past seven
years and paying for it with special
government bonds.
Premier Blum’s ministers also ap
proved a big public works program
under which the treasury will be
asked to advance money, pending the
flotation of a loan for 4,000,000,000
francs ($264,000,000).
The government plans to spend one
quarter of this amount in 1936 in
rushing to completion the public
works program of previous govern
ments on which 1,000.800,000 francs
($66,052,800) already has been spent.
FIVE PLEADGUiLTY
TO BURNING CAMP
Men Held in Black Legion Inves
tigation Will Be Sen
tenced Later.
By the Associated Press.
PONTIAC, Mic^ June 26—Five
men arrested in tnfcDakland County
Black Legion investigation pleaded
guilty today in Circuit Court to a
charge of arson in the destruction of
the "Workers Educational Association"
camp in 1933.
Judge George B. Hartrick deferred
sentence. The five are James E.
Bader, 51: his son George, 23; Randall
Wilson, 28; Gordon Smith. 23. all of
Pontiac, and Harry P. Davis of Flint
The State charges they were mem
bers of a terrorist "torch squad” as
signed to bum property of persons
they suspected of being Communists.
600 Electric Refrigerators,
Stoves Bounce Back onF.H. A.
The multiplicity of Uncle Barn’s
mushrooming business Interests was
revealed today to have expanded to
include, at least temporarily, the sec
ond hand sale of disposal of almost
600 electric refrigerators and more
than 300 electric and gas ranges,
washing machines, ironers, store fix
tures, oil burners and water heaters,
and last and least, two gallons of
paint.
Three months ago, by amendment
of Congress, the Federal Housing
Administration discontinued, with one
exception, the policy of making loans
on moveable leasehold* appliances.
The aftermath >^igers on, however,
with almost 1,000 articles stored here
and there about the country in private
stores and public warehouses, ob
tained by repossession for non-pay
ment of loans. The exception is re
placement of property lost in flood -
stricken areas.
F. H. A., as almost everybody knbws,
will insure up to 10 per cent the total
amount loaned by private financial
institutions for home renovation and
equipment.
When almost 1,000 people became
delinquent on loans for electrical ap
pliances, despite efforts of banks and
(See REFRIGERATORS, Page 2.)
NEW IE PENSION
LEGISLATION HELD
INVALID IN RULING
BY DISTRICT COURT
Acts of 1935 Inseparable
and Intended to Accom
plish Improper Purpose,
Justice Bailey Finds.
HIGH TRIBUNAL VERDICT
IN PREVIOUS CASE CITED
Decision Declares Taxing Provi
sion to Raise Funds for Pensions
Is So Arbitrary as to Con
stitute Violation of Due Process
Clauses.
BY WILLIAM S. TARVER.
Holding the two acts which com
prise the 1935 railroad retirement leg
islation to be inseparable and intended
to accomplish a purpose which the
Supreme Court declared improper in
an earlier decision. Justice Jennings
Bailey of the District Supreme Court
today declared the statutes uncon
stitutional and enjoined their en
forcement.
He said the taxing act. by which
funds were to be raised for payment
by the Railroad Retirement Board of
pensions to railway employes reaching
the age of 65 was so arbitrary as to
constitute a violation of the due
process clauses of the Constitution.
He said it was clearly the intention
or Congress by the two acts to create
a single system to replace the 1934
railroad retirement law, which was
declared unconstitutional by the Su
preme Court in May, 1935.
"The two taken together so dove
tail into one another as to create a
complete system, substantially the
same as that created by the railroad
retirement act of 1934,” he said.
“If the intent of the two acts taken
together,” he continued, “is to take
the property of one class for the
benefit of another and the taxing act
was not intended to provide for the
expenses of Government, but solely
for a purpose which the Supreme
Court has held not to be within the
domain of the Federal Government,
it would seem to be immaterial
whether funds raised by the tax act
are to be segregated in the Treasury;
that would be a ma e matter of book
keeping and wou*l not affect the
rights of the taxpayers.”
Acts Held Inseparable.
He said the two acts were “insepara
ble parts of a whole.”
The attack on the retirement legis
lation had been brought by 135 major
railroads which later were joined by
other roads and rail enterprises,
bringing the total number up to 434,
practically a complete representation
of the Nation's carriers.
A group of Atlantic Coast Line em
ployes also joined as plaintiffs in the
injunction suit, telling the court they
preferred their own pension system to
the compulsory retirement and pen
sion plan provided by Congress.
The taxing act levied an excise tax
on the railroads of 3 >2 per cent of the
compensation, not in excess of $300 a
month, paid by them to their employes,
and an income tax on each employe of
3’2 per cent of his compensation, not
in excess of $300 a month. The com
pulsory retirement act, passed the
same day, established a retirement
system for railroad employes reaching
the age of 65 with a maximum pension
of $120 per month.
Terms Act Arbitrary.
Justice Bailey said the act was
arbitrary in that it did not show a
basis of measuring the amount of tax
nor why a tax should be levied on
the carriers and their employes and
on no other class of employers or
employes.
The court enjoined the Railroad
~tSee RAIL RETIREMENT, Page 2.)
- . .. a -- . ' -
POLICE SAVE LIVES
OF BOY SWIMMERS
Officer Hears Cries of Youths in
Potomac, Throws Life Pre
servers From Boat.
Quick action by Harbor Precinct
Policeman Ray C. Ault saved the lives
of two youthful swimmers today after
they became exhausted while trying to
cross the Potomac below the Three Sis
ters Islands. *
The swimmers—Howard Passing, 14.
of 1301 Massachusetts avenue and
Charles Herrlein, 15, of 1100 Twenty
fifth street—were pulled from the river
as they were apparently ready to sink.
Ault, with H. G. Jenkins, a float in
spector. was cruising near Key Bridge
in a police launch when he heard
cries for help about the same time
there was a call from the bridge that
two swimmers were in trouble.
He reached the swimmers, ;who had
started from the Virginia side, and
managed to get about halfway across
by pushing the boat to top speed and
throwing life preservers as he drew
near.
Readers’ Guide
Page.
Amusements.C-12
Answers to Questions—A-10
Death Notices...A-12
Editorial . -A-10
Finance _A-19-20-21
Lost and Found-A3
News Comment Features A-11
Radio _B-12
Short Story_ C-5
Society...B-3-4-6
Sports..C-1-2-3
Washingtxm Wayside_A-2
Women’s ^atures.C-4-5