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TRAFFIC TOLL 12 FOR MONTH HERE Jerome C. Elliott, 72, Expires at Hospital of Truck Injuries Tuesday. The traffic toll for this month was Increased to 12 today with the death of Jerome C. Elliott, 72, who was hit by a truck Tuesday afternoon. Elliott, who lived at 733 Sixth Street, died In Emergency Hospital of skull Injuries. He was knocked down at Sixth and H streets by a truck which, police said, was operated by Theodore G. Economonu, 22, of 606 Fifth street. Although several other mishaps were reported during the last 24 hours, none of the victims is be lieved to have been injured seriously. Two Hurt in Collision. Joseph L. Starry, 23, of 3310 M itreet, was cut about the head and Albert E. Morton, 38. of 1720 M street northeast suffered a cut lip and a leg injury when their automo biles collided at New Jersey avenue and K street. Starry was taken to Eibley Hospital and Morton to Cas ualty. Charles Hess, 8, of 607 South Caro lina avenue southeast was treated at Providence Hospital for a knee injury after he was knocked down by a machine near his home while Skating. Held in Fatal Accident. At an inquest yesterday Ervin H. Thompsen, 27, of 7311 Georgia ave nue was ordered held for Police Court action under the negligent homicide act in connection with the death Christmas eve of William A. Boss, 69, vice president of the Waggaman & Brawner Realty Co. Thomsen was the driver of a truck that collided with Boss’ car as the real estate operator, his wife and sister-in-law were on their way to Arlington Cemetery to place flowers on the graves of Mrs. Boss’ parents. Evacuation (Continued From First Page.) emergency affecting all or a portion Of the 500,000 persons along the river. Engineers turned their attention primarily to the stretch between Cairo end Memphis, which will receive the peak of the flood during the week end. Gen. Craig notified corps area com manders: "It appears tha a very difficult fight must be made to hold the main line levees along the Mississippi River be low Cairo, particularly in the Memphis district. “Col. Reybold, district engineer at Memphis, is fully organized for this purpose and believes the water now In sight can be carried through the district safely.” At New Orleans engineers hoped a portion of the flood waters would be diverted into Lake Ponchartrain. Organization Complete. The Red Cross and Government agencies reported organization of re lief forces in the Ohio Valley was complete, but that work among refu gees would have to continue for some time. The Red Cross was giving relief In 179 counties in 11 States. It W'as operating 198 concentration and relief camps and 50 field hospitals. A sufficient supply of doctors and nurses—1,000 of the latter were on duty—was reported. The Public Health Service described health con ditions in the area as good. Chairman Glass called a meeting Of the Senate Appropriations Com mittee for 2 p.m. to consider the $790,000,000 relief bill, already ap proved by the House. The administration sought quick action not only to provide funds for flood victims, but to replenish the work relief treasury, which will be •mpty on February 1. Sulphur Usjd on Pests. Sulphur is the chief substance Used by cotton growers, grain farmers, orchadists and poultry raisers in com bating insect pests and plant lice. FOUND. WIRE-HAIRED TERRIER, white nose, tan head, black spots cn body: McLean. Va. Call Brinkley. District br. tj.'IS. LOST. BILLFOLD brown leather, containing driver’s permit, registration and insurance cards. Reward. Potomac 0688. 28* CHILD'S GLASSES in case, probably on Burieith bus or on F st. between 14th and 10th sts. n.w. Reward. Call Emerson 8165.__28* FALSE TEETH, in small cardboard box. Call after ti p.m.. Columbia 1344-J._ FOX HOUND, female, black and tan. vicin ity Chain Bridge. January 21. Phone Clar endon 287-J. Reward._29* GLASSES, rimless, in black case, blue lined, inscription “National Optical Co..”; Tuesday at Bureau Engraving and Printing or on 14th st. car line bound for Takoma. Finder please return to R. E. Diggs. 5234 6th st. n.w. Reward.__20*_ HOUND PUPPY, female, light brown; In Ashton Heights, Va.. January 25. Re ward. Phone Clarendon 1182-J._ POCKET BOOK, small, blue, containing bills and change; lost Sat. In Western Market, Reward._2321 Pa. ave. n.w. f'UPPY—Will man driving truck with Va. ags who picked up setter puppy. 6 months old. white with black spots, at Bladensburg rd. and District line, return same to 863 Forest drive, Hyattsville. Md.? Liberal reward PURSE, containing money and valuable papers, on Saturday; vicinity Georgia ave. and Lamont st. Col. 6249. Reward. WRIST WATCH. Elgin, lady’s white gold, lost 18th and H sts. or Vt. ave. and K. Reward. Phone National 5081, Ext. 667. WRIST WATCH, Hamilton, downtown shopping district. Reward. 2227 20th n.w. Elevator man._ WRIST WATCH, lady's Bulova. small, round. Call Geo. 6046 after 7 p.m. * WRIST WATCH, man's. Elgin; lost Wed hesday. Reward. Phone Georgia 3045. WRIST WATCH, lady's; blue sapphires on side, black cord, initialed "C. M. B." on back; lost Friday In downtown department •tore. Liberal reward. 1460 Columbia rd. Columbia 8323. SPECIAL NOTICES. I WILL NOTBE RESPONSIBLE FOR ANY debts contracted by any one other than myself. MARGARET B. BLACK WILL, the Fortner Apt., Apt. 333. * DAILY TRIPS MOVING LOADS AND PART loads to and from Baito.. Phlla. and New York. Frequent trips to other Eastern eltle*. ••DeDendaDle Service Since 1896.” THE DAVIDSON TRANSFER & STORAGE CO. Phone Decatur 8600._ OLD DAGUERREOTYPES, TINTYPES. KO dak prints or any treasured "keepsake pictures” restored. Improved, copied. ED MONSTON STUDIO, 1333 F St. n.w. ON FEBRUARY 6, 1937. AT 1:30 P.M.. we will sell at Eichberg Auction. 1227 R at. n.w. for storage and other charges, one Hupmoblle sedan, motor No. A-99794 and gerlsl NO. A-99408._ PIERCE-ARROW 4-DOOR SEDAN, SERIAL No. 2001418. engine No. A2323. left with us In name of Ernest Penson. if not claimed by February 12 same will be disposed of according to law to satisfy storage and repair charges. WM. H. CALLAHAN. 812 JJ st. n.w. _ _*_ ACCOUNTANT. . Systems, accts. kept: complete tax and ftcctg. service. Latest methods, low fees. Met. 2339. TO WHOM IT MAY CONCERN: THIS IS to certify that I will not be responsible for any bills made or contracted by any one except thoee made by myself. M. L. T. GRANT. M. D,. 1369 You at. n.w. rUiUnUPQ Is one of the largest LnAIVIDLlta undertakers In the world. Combine funerals as low aa 379 up. Six chaoels. twelve parlors seventeen •art, hearses, twenty-five undertakers and assistants. Ambulances now only S3. 1400 Chapin at n.w. Columbia U432. 617 lltb «. u Atlantic 3700. .---ARTICLE IV The New Fiscal Issue "Average” Level of Taxation Not Necessarily a De sirable Objective—Special Considerations Apply to Measurement of D. C. Tax Burden—Interest and State Taxes Not Comparable Elements. This is the fourth of a series of editorial articles discuss ing some parts of the fiscal relations issue suggested by the recent report of the so-called Jacobs Committee. Yesterday’s article pointed out the failure of the experts to agree on an accurate method of measuring tax burdens. Today’s article discusses some special considerations in measuring Washing ton’s tax burden. THE experts themselves disagree on the method of measuring relative tax burdens. But If they agreed among themselves on a method of comparison warrant ing the conclusion that Washington’s tax burden is “below average,” it would not necessarily follow that Washington is undertaxed. The so-called Mapes committee of the House warned against arbitrarily hiking Washington's tax burden to any average level. “Indeed,” said the ’ report, “a majority of the commit tee at least does not want to make the burden of taxation in the District as heavy as it is in other cities of comparable size and advantages, be cause the committee believes that' taxes are too high and burdensome in practically every locality in the United States outside of the District of Co lumbia.” Certainly if Congress should choose the unique method of hitching local taxes to a level of taxation in other cities—that level itself being measured by a method by no means acceptable as accurate—there must be collateral considerations, first, of the character of cities chosen for comparison; sec ond, of the special modifications that apply in any measurement of Wash ington's tax burden. “Average Rate" Not Desirable. An “average" rate or level of taxa tion does not represent a fair, or even desirable, rate or level of taxation. The average may be affected by waste fulness, inefficiency, extravagance or special factors that have no place in the selection of a model rate or level of taxation. The comparable cities should be confined not only to those of the same population class, but to cities of comparable environ ment, enjoying the reputation of well governed, progressive cities living within their means. At the same time the comparison must take note of certain considera tions that apply peculiarly to Wash ington, which among American cities occupies a unique status in system of government, as well as the nature of population and the nature of the city itself. Of the 17 cities chosen by the Jacobs Committee for comparison with Washington, the Jacobs report states that all of them follow the system of bonding for outlays; that Is, bor rowing the money for improvements. Washington, on the other hand, by specific direction and intent of Con gress, follows the pay-as-you-go policy. There are advantages, as well as dis advantages, in both methods. The bonding method permits spreading out the cost of major Improvements over many years, but is susceptible of the common abuses associated with unwise borrowing. The pay-as-you-go method may be better in the long run, though it tends to retard capital outlays— as they have been retarded here. Debt Factor Not Comparable. But because of the very abuses in herent in easy borrowing, the debt factor should be eliminated in com paring city tax burdens. The object of the comparison is determination of what constitutes a fair and equitable tax burden. But if interest payments are included in the comparison, the objective is distorted. If the citizens of one city decide to burden them selves with debt to undertake public service enterprises, or if they are led into extravagant or unwise borrowing, while the citizens of another city bor row moderately and make the money j go a long way the inclusion of the debt factor injects an irrelevent ele ment. Newark, N. J., for instance, has a total bonded indebtedness of $111,368,000. Cincinnati, the city most nearly approximating it in pop ulation, has a bonded indebtedness of $49,061,000, which might be reduced by $10,000,000 by allowing for the revenues received from the city's own ership of the C. U. O. & T. P. Rail road, which are applied to the sinking fund. Newark’s per capita Indebted ness is $240 and Cincinnati’s is about $85. Would the citizens of Cincin nati be willing to Increase their taxes to correspond with Newark’s debt swelled tax burden? Would they ad mit that they are under-taxed because of the high taxation in Newark, which reflects heavy bonded debt? Particularly in the case of com parisons between Washington and other cities it is illogical and unfair to include debt in comparison of tax burdens. During the war and imme diately thereafter, when borrowing was easy and wealthy investors were anxious to Invest in tax-exempt se curities to avoid income taxes and surtaxes, many American cities in dulged in a financial jag and woke up head over heels in debt. Part of the money doubtless went Into useful permanent improvements by which the cities benefited; another part waa represented in the extravagance which was one of the characteristics of the post-war boom. Congressmen whose home cities may have borrowed heavily nevertheless refused, as mem bers of Washington’s Legislature, to let Washington borrow at all. If the taxpayers of other cities In vested their borrowing in wise ven tures or improvements, they have en joyed the benefits. If not, they are paying a heavy penalty. But why should Washington, which has not enjoyed the benefits and has escaped the penalties—whatever either may be —be required to pay taxes on a basis which co-ordinates them in per capita and total tax payments and In tax rate with cities which are compelled to raise millions in taxes to pay in terest and amortize the principal? Washington, which has enjoyed the benefit of no such loans, should not be required, in order to put itself on a superficial tax-paying equality with other cities, to tax itself by the amount represented in interest payments. In terest payments should be deducted from the comparisons. State luxes Not Comparable. The same equitable considerations demand that in the comparison of city tax burdens (which should In clude county taxes, because large cities dominate or include the counties con taining them) the State taxes should be eliminated from the comparison. Taxes, to be equitably compared, should be oaid by contributors sub stantially In the same area and for the benefit of the area alone. In the light of this principle, municipal taxes and State taxes are as far apart as the poles, being separate and distinct in personnel of contributors, in pur pose of creation, in scope and area of distribution. As Washington does not receive all the benefits that accompany state hood, it should not be compelled to bear the burdens which compensate for such benefits. If the comparison is between Wash ington and Baltimore, the equitable comparison should be between what Washingtonians pay for expenditure in the District and what Baltimoreans pay for expenditure in Baltimore. The comparison should not be be tween what Washingtonians pay in taxes for expenditure in the District and what Baltimoreans pay in taxes for expenditure in Baltimore and in the State. If State taxes are in cluded, the comparison might as well include National taxes. Does not Receive State Benefits. If it is contended that the Wash ingtonian receives the same benefits through his municipal government, alone, that are enjoyed by the resi dents of other States through their city, county and State governments, the contention should be met by ex amination of some of the benefits of statehood. The chief benefit is not represented in the driblet of State expenditures which the county govern ment may permit the municipality to share. The State tax is representative of full citizenship In a sovereign State, with the full benefits and privileges of citizenship. These are not conferred on the citizen of Wash ington. Full citizenship means the right of representation in Congress and the electoral college, a recognized status in the Federal courts and the finan cial benefits which come from the enjoyment of subsidies and grants made to the States, from which the District is excluded. The Washingtonian does not enjoy the full political or judicial rights of statehood and does not share in the financial benefits whicn accompany statehood. Why should his tax bur den be held to include what the citi zen of a State pays In connection with these rights and privileges? A State and Not a State. That proposition carries out the old idea that Washington is to be viewed as a State when burdens are imposed and not viewed as a State when bene fits or privileges or rights are to be conferred. The District has been pronounced a State under a treaty with France—a construction confer ring privileges on aliens—but not a State under the Constitution, whose people can sue, either as State citi zens or as aliens, in the Federal courts. The District is a State when direct taxes are to be collected, but not a State when Representatives are to be apportioned, though the Constitution couples the two things. The District is not a State to make and carry out through a State Legislature laws of it* own benefit,'but is reproached as a State because it escapes tax bur dens incident to statehood. II State taxes are included in a comparison of city (and county) taxes, it means that the District is not to be a State to enjoy any of the political, judicial and financial bene fits, privileges and rights of a State, but It is to be a State to the extent that the equitable tax burden of its people, in comparison with the tax burden of other Americans, must be figured to include consideration of State taxes. Pays High National Taxes. The District Is remembered as a State when national Internal revenue taxes are collected, but Is Ignored as a State in the distribution of grants, subsidies, bounties, etc., to the yalue O’Donoghue Rules for U. S. in Case Which Involved Gov ernment Ex-Officials. Harking back to a 16-year-old scandal which resulted in criminal prosecution of two high Government officials, Justice Daniel W. O'Donoghue of District Court late yesterday allowed a $14,000,000 claim by the United States against a Swiss corporation which allegedly had obtained payment of a war claim through fraud. The case involved the disputed claim by Sociate Suisse pour Zaleur de Metaux of Basle, Switzerland, in 1921 against an alien property custodian for $7,000,000, representing proceeds of the sale of stock seized In New York during the war and sold under the trading-with-the-enemy act. The ad ditional $7,000,000 allowed by Justice O’Donoghue represents interest on the original award. Officials Indicted. As a result of the award to the Swiss company, Harry M. Daugherty, then Attorney General, and Thomas W. Miller, former alien property custodian, were indicted and tried in New York in 1927. Miller was convicted, but the Jury disagreed as to Daugherty and 'he charge against him was dismissed. Reviewing the international mach inations that preceded and accom panied settlement of the Swiss com pany’s claim, Justice O’Donoghue said that about $40,000 of the bonds paid to the Swiss concern by the Govern ment were "traced directly or in directly, but with certainty, to the Attorney General, Harry Daugherty, and to the alien property custodian, Miller.” Stock Sale Involved. Evidence to which Justice O'Donog hue referred as Indicating that somr of the bonds went to Daugherty was to the effect proceeds from the sale of these securities were deposited in Daugherty's name in a bank which later failed, and that in 1930 Daugherty claimed, under oath, that he was the true owner of the money. The Swiss company's claim con cerned proceeds from the sale of American Metal Co. stock which had been seized during the war as the property of two enemy German cor porations. Contending it was the .rue owner of the stock, the Swiss company filed claim September 20, 1921, with the alien property custodian. Miller. Miller allowed the claim the next day and two days later it was approved by the Attorney General and orders were Immediately Issued for payment of approximately $7,000,000, the court found. Finding that agents of the Swiss company who handled the claim were paid more than $400,000 for services that involved only a few days' work, Justice O'Donoghue said it was “strange” that Miller should have gone to New York to have dinner with the Swiss company agents and pay them more than $6,000,000 there. Fraud Held Shown. “The court concludes,” Justices O'Donoghue declared, “that fraud has been shown in the claim the plaintiff made before the alien property cus todian and that that fraud resulted in the United States turning over about $7,000,000 to the plaintiff and that accordingly the United States is entitled to recover • • •" The current litigation was insti tuted by the Swiss company for $680,000, which it claimed as unpaid Interest on the $7,000,000 award from the time the stock was seized until 1921, when the principal was paid. The government counter-claimed that it was entitled to recover the $7,000, 000 with interest on the ground that that original claim was fraudulent, and that its allowance had been se cured through a conspiracy involving Miller and Daugherty. Attorneys for the Swiss corporation, Julian B. Beaty of New York and McKenny, Flannery & Craighlll of Washington, are expected to appeal from Justice O’Donoghue's decision. If his ruling ultimately is affirmed, the Government still faces the prob lem of collecting from the Swiss con cern. of hundreds of millions through the District has contributed in national taxes from which these donations are paid more money than is contributed by any one of more than naif of the States, nine of the States comoi.ied. or more In per capita than 32 of the States. In one part of its report the Jacobs Committee made deductions from State taxes (in comparing C06t of local government) so that only those portions of State taxes supporting in stitutions and services comparable to Institutions and services in the Dis trict—asylums, hospitals, correctional institutions, etc.—were included in the comparison. That method is probably fair. But the same deductions were hot made in comparing city tax burdens, although logic as well as equity, demands that they should be. The first consideration of Washing ton’s unique status among American cities shotild be the elimination of interest payments and State taxes (or a carefully computed portion of State taxes) in comparison of city tax bur dens. (Next article: Additional consider ations in comparing tax burdens.) Alda’s Pupil TO SING FOR BIRTHDAY BALLS. CATHREEN CARRICO Of Clinton, Md., a victim of infantile paralysis, who will sing for 15 minutes, beginning at 7:15 p.m., today over Station WJSV in a benefit performance for the President’s birthday ball Saturday. Miss Carrico studied voice at Peabody In stitute of Music in Baltimore, Md., and three years ago, in competition with 200 others, won a scholarship to study under Mme. Frances Alda at the Metropolitan Opera, in New York City. —Star Staff Photo, WEAVER TO QUIT NAVIGATION BOARD Director to Complete Work of In creasing Safety of Vessels in Month. Er the Associated Press. Joseph B. Weaver announced yes terday he would resign as director of the Marine Inspection and Navi gation Bureau. Weaver, a consulting engineer, who came to the bureau from the N. R. A. Shipping Division shortly after the Morro Castle disaster In 1934, said he had devoted his energies to in creasing safety of vessels and that his work would be completed In a month or so. --•- « Japanese to Test Ores. . By permission of the Australian government, four Japanese experts will spend a year in analyzing and grading the deposits of ore on Koolan Island, ofl the coast of Western Aus tralia. * TOll C° | ALL J^^DODGE PLYMOUTH Tbe For Factory—WareboBM—Garaco cs:::i*. *45 00 « Budfet Plan at Small Additional Co«t Winter is rominr afain. too say? What do we care. let the North Winds blow. With the “OVERHEAD DOOR” thorc's no problem left With rain or sleet or lee or snow. Overhead Door Sales Co., Inc. 727 Firat Street N.W. Metropolitan 4926 Write or Tclepboae for New Folder. • • • • DEAF try the new DEFOREST AUDIPHONE - Bone or Air Conduction Newest Models FREE DEMONSTRATION Optical Department Jeweltn Plattnumtmiths Statiomrs A. KAHN INC. Arthur J. Sundlun, President 44 Yean at 935 F St. NEW ENVOY PLANS TO STEADY MONEY Georges Bonnet Expected to Strive for Permanent Stabilization. Br the Associated Press. PARIS, January 28.—Georges Bon net, recently named French Ambas sador to the United States, was con sidered today to have been handed as his principal goal permanent stabilization of English, French and American currencies. A new alignment of franc, pound and dollar was declared in parlia mentary circles to be a likely outcome of current negotiations as a stimulus to the tri-power stabilization of cur rencies. Bonnet’s mission—he sails from Havre. February 10, to assume his new post—was linked to the visits of Walter Runclman, president of the Board of Trade in the British cabinet, with, President Roosevelt. (Runclman was understood to be an unofficial commercial ambassador seeking better trade relations.) Prance, it was pointed out, could j readjust her currency by letting the ; franc drop to its lowest legal level, thus tending to stem the flow of French gold to the United States. Meantime two simultaneous llnan-! eial developments affecting the strained European economic situation were re ported: 1. Herve Alphand, French trade . expert, was to depart for Berlin to | start negotiations for a Franco-Ger- j man commercial accord. 2. A new £50,000,000 ($250,000,000) j loan to France from British bankers 1 was expected to be formally an nounced. Discussions between Alphand and Nasi financial officials will seek to establish an economic past ‘‘satisfac- j tory" to both powers is practical. The new British loan, with the ap proval of the treasury, was expected to be similar to the £40.000,000 < $200, 000,000) credit in 1936, repaid in De cember, which tided the finance min lstry over Its low-water period of tax collection. Should the flow of gold from France to the United States be halted, ex perts said, the gold content of the franc then would be fixed at 43 mill grams, or about 23 to th' dollar. The present stabilization agreement between the United States, Great Bri tain and France Is holding the franc midway in its legal range. MORGENTHAU SILENT. Declines to Discuss Situation In Re lation to Stabilization. Secretary Morgenthau described the increase in the Bank of France dis count rate today as "a purely Internal affair.” At his press conference the Treas ury chief declined to discuss the French monetary situation in relation to the French, British and American currency stabilization agreement. He reiterated earlier statements, however, that Treasury experts "are studying the international monetary situation—past, present and future." -% .. — Pajamas, Mohammedan In origin, were worn in India centuries ago. State File* Fingerprint*. Indiana authorities say that a new system of filing fingerprints In ths State, installed by W. P. A. will make using of fictitious names by criminals virtually useless, With each new week—and each new owner—ultimate leadership in the fine car field becomes more brilliantly assured. CORD FRONT DRIVE • 1 Warrington Motor Car CoT Distributor* 2035 17th St. N.W. POt. 0701 WHEN WEST HAS A SALE-IT'S A REAL SALE CLOTHING AND FURNISHINGS AT NEW LOW PRICES IN OUR Semi-Annual Clearance WESTYLE SUITS & OVERCOATS FORMERLY $35 FORMERLY $40 FORMERLY $50 28 50 3450 3950 NO CHARGE FOR ALTERATIONS A special group from regular stock! 535 and *30 WESTYLE SUITS 19.75 MINOR ALTERATIONS ONLY ’ Neckwear special lots Pajamas we™ Now Fancy Negligee ISshirts Z50 & $3"K85 &.,S 1:®::::::: l:!l 5.00_3.45 2.50 _1.85 Fancy Wool —- 3.50.2.15 HALF HOSE All 5.00 -3.45 Were Now Lounging Robes - 50c 39c ' and , $2.50 Degroined * Smoking Jackets MOCHA GLOVES , Wool and Silk Less 25% $1.95 100 .V«S Sidney West, inc. 14th & G EUGENE C. GOTT, President