Evening star. [volume] (Washington, D.C.) 1854-1972, April 15, 1937, Image 1

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Evening star. [volume], April 15, 1937, Image 1
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Evening star. [volume] (Washington, D.C.), 15 April 1937. Chronicling America: Historic American Newspapers. Lib. of Congress. <https://chroniclingamerica.loc.gov/lccn/sn83045462/1937-04-15/ed-1/seq-1/>

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' WEATHER. -—
IV. 8. Weather Bureau Forecast.) •
Showers this afternoon and probably TVin
tonight, followed by generally fair tomor- . . ® ®Veiling. paper
row; much cooler, temperature tonight f in W ashingtOIl with the
. Associated Press News
at 4:30 a.m. today. Pull report on A-5. 311(3 WirephotO Services.
Closing New York Market,, P.t« 20 Ci,c»l.ti.n, 142,807
-- '* ... ' ~" ■ - - - ■■ ■■■" ■ -- ■ ■ " _ _ (Some returns not yet received.)
85th YEAR. No. 33,952. 'SS&SSl.rg WASHINGTON, D. C., THURSDAY, APRIL 15, 1937-SIXTY-SIS PAGES. ***,,■* m M..„. P>.„, Tw0 CENTS.
26 HURT IN PANIC
WHEN STREET CAR
BIMINTO FIRE
Screaming Passengers
Smash Windows, Leap
From Moving Trolley.
CENTER DOOR JAMMED
BY PRESS OF CROWD
Motorman, Halting Car in Midst
of Flames, Is Among Most
Seriously Injured,
Twenty-six persons were injured
this morning when panic swept a
crowded street car at Georgia avenue
and Lamont street following an ex
plosive fire which turned the whole
front end of the car into a mass of
shooting flame.
Perhaps the most severely injured
was J. M. Dungan, 28, the motorman,
who stuck to his post at the flaming
control box and brought the car to a
halt while screaming passengers be
hind him broke the windows with
their shoes and leaped to the street.
Witnesses said at least half of the
passengers jumped out windows from
which the glass had been smashed.
Many landed on the street while the
car was still in motion.
Crowd Blocks Center Door.
In the first mad rush for exits, the
crowd jammed so tightly against the
big center door of the old car that the
conductor, D. H. Jefferson, could not
open it. Many windows had been
broken before the crowd forced open
a door on the opposite side of the car.
An eye-witness account was given
by Prank W. Myers. 65. of 5306 Sec
ond street, a postal clerk who was sit
ting just behind the motorman.
"The first I knew there was a loud
explosion and the whole front end
of the car was full of shooting red
flames.
"The car was crowded and panic
broke out immediately. There was a
mad rush for the doors. Women and
children were pushed about as the
screaming crowd battled to get out.
“When the crowd jammed the doors
the passengers began to smash glass
from the windows and crawl out over
the bars' while the car was still in
motion.”
Cause Not Known Certainly.
Dungan, who lives at 39 Sherman
Circle, was treated at Garfield Hos
pital for burns about the hands and
neck. He said he did not know what
happened, but that he stuck to his
post and halted the car in spite of the
flames shooting from the control box.
He gave as his opinion that the fire
must have resulted from a short cir
cuit.
Among those treated at Garfield for
minor cuts and bruises received in the
. mad scramble for exits were Alvera
Kirkmeyer, 21, of 4536 Warder btreet;
Jessie Herbert, 724 Farragut street:
Ethel Addison, colored, 27, of 1929-A
Eleventh street; Mary’ Lee Wise, 21,
of 409 H street; W. J. Michael, 802
Taylor street, and Loretta Stelfox, 419.
ef 508 Holstein avenue.
An emergency first-aid station was'
set up in a women’s clothing shop
at 3218 Georgia avenue for treatment
of the less seriously injured. Those j
given first aid included Miss Louise
Weber, 5215 Thirteenth street; Miss
Carrie Trivett, Mrs. Arthur Trivett
and Mrs. Dent Brady, all of 808 Aspen
street, and Bradley. Fischer, 2505 Mills
avenue northeast.
Some Refuse Treatment.
Those slightly injured who refused
treatment were Alice C. Howard, 56,
of 1334 Kennedy street; Ann Yadger,
20, of 606 ParS road; Dora Karchem,
1855 Calvert street; William H. Hage- !
steary, 47. of 4004 New Hampshire ave
nue; Mrs. Mamie V. Smith, 43, of 906
Rittenhouse street; Bertha Jones, col
ored, 45, of No. 5 Deries street; Agnes
Stone, 29, colored, 1209 Rhode Island
avenue; Margaret Hastings. 27, of
6401 Fourteenth street, and Ida Nich
ols, 25, of 639 L street.
Others treated at Garfield Hospital
were Mrs. Ercelle Quinn, 47, of Wal
ter Reed Hospital, bruised hip, and
Dorothy Ahlgren, 26, 445 Park road.
At Freedmen’s Hospital the follow
ing were treated: Sally Walker, 39,
colored, 603 L street northeast, bruises
to legs and thighs: Virginia Totter.
24, of 601 Park road, cuts to wrist and
hand; James M. Moss, 51, colored, 423
Q street, cuts to both hands.
Fischer said many of the men pas
sengers behaved in a “most ungentle
manly manner,” and thrust women and
(See FIRE, Page A-2.)
ROGERS EXTORTION
SUSPECT IS SEIZED
Chicago Youth, 18, Said to Have
Sent Photo of Self in
$500 Demand.
By the Associated Press.
CHICAGO, April 15.—John Anthony 1
Buzas, 18-year-old garage mechanic,
was seized by Federal agents today
and charged with sending an extor
tion letter to Ginger Rogers demanding
$500 under threats of death to the
Hollywood actress “or any one else
who gets in the way.’’
Agents said Buzas inclosed a picture
of himself and wrote on the envelope
a return address only a few doors
away from his home on the far South
Side.
A diary seized there, they said,
mentioned the letter to Miss Rogers
and Buzas’ indecision about dispatch
ing a similar one to Actor Clark Gable.
Federal men went to Buzas’ home
and inquired for “John Burton”—
the name listed on the return address.
They said Buzas replied:
"No, I’m not John Burton, but
come in, anyway. I've been expecting
you.” *
Agent W. J. Devereux said the
missive to Miss Rogers, six pages long,
was mailed April 8, and included a
demand for $500, with the notation
“or you will be killed or anybody
else who gets in the way.”
Treating Street Car Injured
Mrs. Alvin L. Smith, who was on the car with her two chil
dren. Audrey, 5, and Alvin, 9, describing the fire to a reporter.
The Smiths live at 906 Rittenhouse street.
A dressmaking establishment was turned into a first-aid
station at 3218 Georgia avenue today, after a fire on a street
car. Dr Donald Mitchell of Emergency Hospital is shown giving
first aid to Bradley Fischer, 2505 Mills avenue northeast.
___ —Star Staff Photos.
LEADERS OPPOSE
ANTI-LYNCH BILL
Bankhead and Rayburn See
House Passage by 2-1
Probable Today.
Ey the Associated Press.
Speaker Bankhead and Majority
Leader Rayburn expressed their oppo
sition to the Gavagan Federal anti
lynching bill, but joined sponsors in
predicting House passage by a 2-to-l
vote probably late today.
Shortly before the House resumed
debate on the measure, the leaders
told news men sponsors had sufficient
votes to pass the bill.
Bankhead and Rayburn took the po
sition of other Southern Democrats op
posed to the bill that it was an uncon
stitutional invasion of the rights of the
States.
The Speaker added the belief that
the Senate would pass the measure if
it came up fdr a vote in that body.
As on Tuesday, when the House en
gaged in three hours’ bitter debate, the
galleries were filled. Many of the vis
itors were colored.
Session Continues Till Vote.
Although there were reports oppo
nents might attempt filibustering tac
tics in attempts to prevent a Vote to
day, leaders said they would keep the
House in session until it voted.
The measure would impose heavy*
fines and jail sentences on peace offi
cers who permitted a prisoner to be
taken from their custody and lynched.
Similar punishment would be imposed
on mob members. In addition, coun
ties would be made liable for damages
to the victim’s family.
Although anti-lynching legislation
has been before the House for many
years, not since 1922 has it passed such
a measure. That year the Senate
blocked enactment.
Leading off the opposition debate.
Representative Johnson, Democrat, of
Texas, asserted lynching was inde
fensible, but no more so than the bill.
The measure, he said, represents a
"reckless and arrogant’’ attempt to
“ursup’’ State powers. Not only would
it destroy State rights, but also State
governments, Johnson contended.
It would be just as legal to make
Federal officers amenable to prosecu
tion in State courts, under State laws,
Johnson said, as to allow punishment
of State officials in Federal courts, un
der the Gavagan bill.
The measure, he said, would "de
(See ANTI-LYNCH, Page A-2.)
OPERATORS STRIKE
Many Vessels Expected to
Be Tied Up—Crew
Sits Down.
By the Associated Press.
NEW YORK, April 15.—The Amer
ican Telegraphists’ Association today
declared a general strike against all
vessels owned by the International
Mercantile Marine now in United
States ports. Pour ships with 13
operators were affected immediately
and other ships will be tied up upon
entering port.
Three hundred members of the crew
of the Panama Pacific liner California
began a sit-down strike aboard the
ship today in sympathy with strikers
on the United States liner President
Roosevelt, lying Bit the adjoining
North River pier.
Strike Develops Suddenly.
The strike developed suddenly as
a Government official attempted to
settle the intra-union strife which led
to the seamen's strike aboard the
President Roosevelt yesterday—a move
interpreted in some quarters as threat
ening a renewal of maritime troubles
which paralyzed shipping on both
the Atlantic and Pacific coasts for
many months.
All passengers on the President
Roosevelt were evacuated today when
John P. Brennan, traffic manager of
the line, announced it was impossible
for the vessel to sail as a passenger
ship because of the labor dispute.
Some of the passengers, Eurppe
bound, sailed on the liner Hamburg
last night. Others were transferred
to the liner Berengaria today.
Sixty-five members of the deck and
engine crews refused to sign articles
if the company retained nine engine
room replacements who, the strikers
(See WIRELESS, Page A-9~)
--;-•
HITLER MAY SEE DUCE
Rome Rumors of Conference Plans
Remain TJndenied.
ROME, April 15 WP).—Increasingly
insistent rumors that Premier Musso
lini and Chancellor Hitler of Germany
would meet soon for a conference were
heard in political and diplomatic cir
cles today.
Informed sources said nothing defi
nite had been decided, but the reports
were not denied.
Roosevelt Promises to Toss
First Ball at Opening Game
President Roosevelt will be on hand
at Griffith Stadium Monday to toss
out the first ball officially opening the
American League base ball season.
He made this promise today to
Clarke Griffith, president of the
Washington club, when Griffith and
Ford Frick, president of the Na
tional League, called at the White
House to present the President with
passes to all American and National
League games. These were inclosed
in a handsome leather case with the
initials "F. D. R.” in gold on the out
side.
Griffith also left with the President
ft leather handbag containing an an
nual pass to the American Leabue ball
games to be given to Mrs. Roosevelt.
During the brief call, Mr. Roosevelt
said he always enjoyed base ball games
and was sorry he could not attend
oftener. He asked about the prospects
of the Washington team and was at*
sured that the team looks good.
A
27 NATIONS BEGIN
ACTION MONDAY
TO ISOLATE WAR
‘Hands-off Spain’-Body Also
Names Group to Seek Vol
unteers’ Withdrawal.
SIX AMERICANS SENT
TO PRISON IN FRANCE
Charged With Attempt to Cross
Border to Serve in Loyal
ist Army.
BACKGROUND—
With fear rising that Spanish
civil war would engulf Europe,
European nations agreed on policies
of non-intervention.
Observers had declared war was
developing into, struggle between
Italy and Germany on the one
hand and against France and Rus
sia on the other.
Bs the Associated Press.
LONDON, April 15.—A non-inter
vention subcommittee today fixed
midnight next Monday for putting
into operation wide control schemes
to halt the flow of men and arms to
Spain.
The 27-nation "Hands-off-Spain”
Committee immediately appointed an
other subcommittee to consider plans
for the withdrawal of volunteers now
fighting in the Spanish civil war.
The non-intervention scheme calls
for naval patrols of the Spanish coasts
anJ establishment of agents on
Spain’s frontiers to prevent foreign
arms and volunteers from reaching
either side in the civil conflict.
The long-awaited establishment of
a land-and-sea patrol of Spain cul
minated months of effort by the big
powers to put into force their plan
to isolate the Spanish War, as far as j
possible, and safeguard the rest of
Europe against possible repercus
sions.
Skeleton Staff Ready.
The advisory board notified the sub
committee a skeleton staff sufficient
to enforce the blockade of Spain
ashore and at sea was ready at vari
ous control ports and frontier posts.
New observers, it reported, were be
ing recruited daily for the interna
tional patron on the Spanish borders.
A new phase in international rela
tions will begin when the worships
contributed by Great Britain, France,
Germany and Italy take up their
positions as a combined fleet girdling
Spain.
The estimated total cost for both
the land and sea patrols has been set
at $5,000,000 a year. Viscount Cran
borne, parliamentary undersecretary
of state for foreign affairs, said the
five principal countries—including
Russia besides the four in the naval
blockade—each will pay 16 per cent
of the cost, the other 22 countries j
sharing the remaining 20 per cent.
The land agents will operate on
Spain's French and Portuguese fron
tiers.
Criticism of Britain.
Announcement that the co-opera
tive isolation venture is to start, au
thoritative quarters predicted, prob
ably will minimize opposition criti
cism of Great Britain's Bilbao pol
icy.
Diplomatic sources contend the issue
over British protection of her mer
chant marine against a Spanish in
surgent blockade of the besieged
Basque capital was clearly "a local
situation.”
Under international law, they
argued, the British Navy theoretically
could escort merchantmen into Bilbao
since the Basque government is will
ing. Even inside Bilbao, they said,
Britain would regard an insurgent at
tack on her shipping as an act of
piracy.
But authorized spokesmen expressed
(See EUROPE, Page A-4.) 1
120 Others Held in Detroit
for Clash in Ousting
Sit-Downers.
BACKGROUND—
The theory of collective bargain
ing, guaranteed, in simple, to labor
by the Wagner act, has been rele
gated to background in labor-in
dustry disputes over recognition of.
specific unions, promoted in the
main by John L. Lewis associates
crusading under the C. I. O. ban
ner. These organizers seek to sign
up the majority of workers in the
plants. Sit-down strikes have be
come potent weapons in JoYcing
recognition.
By tne Associate Press.
DETROIT, April 15—One hundred
and twenty sit-down strikers ejected
from a lock factory were released
under bond early today, but 15 union i
officers and sympathizers were held in
jail for investigation.
Those kept in Jail did not engage
in the clash between strikers and
police and deputies yesterday after
noon at the Yale & Towne Manu
facturing Co.'s plant but were seized
after the strikers were placed in patrol !
wagons a. d scout cars.
A score were hurt in the 30-minute
encounter, in which the officers used
tear gas and strikers tossed lead
weights from windows and the build
ing roof. Police Commissioner Hein
rich A. Pickert said three shots were
fired from within the factory. The
injuries of one patrolman and two
other men required hospital treatment.
Most of the strikers were women.
They had been in the plant since the
United Automobile Workers of America
called the strike, March 9, and dis
regarded an injunction ordering them
to leave Monday. When they failed
to comply, warrants w’ere issued for
their arrest. The union accused the
company of refusing to negotiate
with it.
George Addes, U. A. W. A. secre
i See-STRIKEs7Page-A-2
Women Abandoning Nursing.
COLUMBUS. Ohio, April 15 </P).—
Women are not entering nursing as a
life work any more. Dr. E. R. Crew of
Dayton declared today in an address.
Summary of Today’s Star
Page
Amusements C-JO
Comi(^ _D-6
Editorials ...A-12
Financial ...A-18
Lost & Found A-3
Obituary_A-14
Page
Radio _C-8
Society _B-3
Short Story.__C-6
Sports _D-I-3
Woman's Pg. _D-4
STRIKE SITUATION.
Union officers jailed after Detroit
strike riots. Page A-l
SUPREME COURT ISSUE.
McCarran introduces compromise for
court bill. Page A-l
NATIONAL.
Bankhead and Rayburn see anti
lynch bill passage. Page A-l
Treasury to start series of $50,000,000
weekly bill issues. Page A-l
Labor legislation at this session pre
dicted by Connery. Page A-l
Coal operators' fund to fight union
ization revealed. Page A-2
Trial of Parkers in Wendel case may
go to Brooklyn. Page A-3
La Guardia says proper housing needs
Federal aid. Page A-4
FOREIGN.
27 nations to start “war control”
schemes Monday. Page A-l
Reich press features lynching of U. S.
Negroes. Page A-2
Schuschnigg to confer with Mussolini
April 22. Page A-3
Escape plot reported uncovered at Brit
ain’s Dartmoor Prison. Page A-8
WASHINGTON AND VICINITT.
Twenty-six persons injured in street
car fire. Page A-l
Whitwell and Johnson to leave School
Board. Page A-l
Jury completed for second Rhodes
forgery trial. Page A-2
Seasonal milk price reduction urged by
consumers’ counsel. Page A-2
70-year-old man among seven hurt in
traffic. Page A-5
1
House group may scrap Collins tax
bills, write own. Page B-9
Survey pushed to fix scope of D. C.
minimum wage law. Page B-l
Junior High School Conference opens
tomorrow. Page B-l
District officials welcome proposed in
vestigations. Page B-l6
Commission experts again slash transit
company estimates. Page B-l
Real estate rackets common here,
House group told. Page B-l
FINANCIAL.
A. T. & T. earnings climb. Page A-18
Bonds hesitant after rise (table).
Page A-19
Clearings hold above 1936. Page A-19
Most stocks narrow (table), Page A-20
Curb list mixed (table). PageA-21
Retail collections up. Page A-21
SPORTS.
Ailing Simmons must toil in order to
tune batting eye. Page D-l
Heavyweight fight mess is put up to
United States judge. Page D-l
Writer places Nats third to Yankees
and Indians. Page D-2
Chevy Chase Club again will charge
fee for tourney. Page D-3
EDITORIAL AND COMMENT.
Editorials. Page A-12
This and That. Page A-12
Answers to Questions. Page A-12
Stars, Men and Atoms. Page A-12
David Lawrence. Page A-13
Paul Mallon. Page A-13
Mark Sullivan. Page A-13
Jay Franklin. Page A-13
Delia Pynchon. Page A-13
MISCELLANY.
Washington Wayside. Page A-2
Young Washington. Page C-18
Dorothy Dix. Page D-4
Betsy Caswell. Page D-4
Bedtime Story. Page D-5
Nature’s Children. Page D-5
Crossword Puzzle. Page D-6
Vital Statistics. Page D-7
Traffic Convictions. Page D-7
Service Orders. Page D-7
City News in Brief. Page D-7
Letter Out. Page D-l#
I
m IS FAR BETTER^
/ To BE RULED BY
one fifteenth
Ibn by one NiNTHjy
ROBINSON REASONING !
Robber Takes
Oldest Photo
Of Gen. Grant
Removed in Looting
of Cantacuzene
Apartment.
The oldest picture in existence of
Gen. U. S. Grant, a tiny snapshot in
a gold locket, was among the loot
stolen from the apartment of nis
granddaughter, Mme. Julia Canta
euzene, 1868 Columbia road, it was !
disclosed today.
The apartment was looted while j
Mme. Cantacuzene was in New York ,
and police were unable to determine
the extent of her loss until she re
turned today.
"The intrinsic loss is not very
great—perhaps $200 or $300,” Mme.
Cantacuzene said. "I did not leave
any jewels or money in the apartment
and the only things the robber could
find to take were several souvenir*
which I valued for sentimental rea
sons.
"The picture of my grandfather, for
instance, was taken when he was a
young officer and he gave it to my
grandmother when they were married.
"Then some old snuff boxes and
cameos which I saved from the Rus
sian revolution were taken.
"None of the things taken will bring
much money in a pawm shop and I am
hoping that they can be returned to
me in some way.”
Mme. Cantacuzene's apartment was
one of five ransacked by burglars in
the Northwest section Monday.
———-• ■ —. -
NEW LABOR LAWS
Congress Action This Ses
sion to Be Result of Rul
ings, He Says.
BACKGROUND—
Validation of national labor re
lations act last Monday by Supreme
Court has intensified speculation
as to probabilities of new legisla
tion and as to possible changes in
policy and strategy of labor groups.
Meanwhile. National Labor Rela
tions Board, having gained compli
ance in only two out of more than
70 orders issued, expects to exercise
enforcement privileges through
courts.
By the Associated Press.
Chairman Connery of the House
Labor Committee predicted flatly to
day Congress would write new labor
legislation at the present session as
a result of the Supreme Court’s de
cisions on the labor relations act.
Connery said he still believed the
best solution to the unemployment
problem would be a 30-hour week for
all Industry. He added, however, he
was not ‘tied to the proposal.”
“I believe undoubtedly there will be
legislation adopted in the House on
minimum wages, maximum hours and
the abolition of child labor,” said the
co-author of the wagner law.
Connery said the first labor legisla
tion brought up probably would be
the Ellenbogen textile bill, on which a
labor subcommittee has been holding
hearings.
Informed persons said President
Roosevelt had favored enactment of
that measure to set up a “little
(See CONNERY, Page A-8.)
Baby Loses Citizenship.
BERLIN, April 15 UP).—A Moscow
born baby, now 21 months old, is the
youngest "German” to be deprived of
citizenship rights in an official decree.
EASED COURT BILE
Judiciary Bill Amendment
Would Add Only Two
Justices.
BACKGROUND—
President Roosevelt asked Con
gress February 5 for authority to
name six new justices to Supreme
Court unless present justices over
70 retire. This move followed court
decisions blocking New Deal legis
lative program.
The proposal met almost solid
Republican opposition and split
Democratic ranks in Senate. Op
ponents, fighting for constitutional
amendment, felt their position
strengthened by court's decision on
minimum wage and Wagner law
legislation, but supporters of the
President have said their fight for
the bill in its original form will be
pressed with "renewed vigor."
An amendment to President Roose
velt's court bill providing for appoint
ment of two additional Supreme Court
justices was introduced in the Senate
today by Senator McCarran, Demo
crat, of Nevada, a member of the
Judiciary Committee.
The Nevada Senator has long been
regarded as one of the “key” members
of the committee because he has re
mained non-committal on the Presi
dent's proposal to enlarge the court
by six members if those now over 70,
do not retire.
In offering his substitute, in the
form of an amendment, McCarran re
fused to say whether he would support
the measure if his amendment were
rejected. He did tell reporters, howr
ever, that he did not favor any "forced
retirement” from the court.
Doesn't Favor Amendment.
"The mental faculties of many
judges are keen and acute at 75 and
80,” McCarran added. "I don’t favor
any constitutional amendment at this
time.”
Shortly after McCarran's amend
ment was introduced, the Judiciary
Committee received from a spokesman
of the American Bar Association a
statement describing the President's
biil as a measure "to force the judic
iary to adopt the constitutional views
of the Executive and the Legislature."
The spokesman, Sylvester Smith of
Phillipsburg, N. J., explained that his
statements were based on a secret poll
of the 29,616 members of the bar as
sociation. and 142,320 non-member
lawyers throughout the country.
The results of the poll, he said,
show American lawyers stand 4 to i
against the proposal to add six new
justices to the high court unless the
present justices over 70 retire.
Senator McCarran's proposal was
comparatively close to what has long
been regarded as the most likely com
promise of the President's bill—an in
crease of two instead of six.
But the amendment would go
(See COURTTPage A-2 )" "
*
BILL WOULD LIMIT
WORK TO SIX DAYS
Chairman Norton Seeks to Prevent
Longer Periods of Consecu
tive Employment.
Chairman Norton of the House
District Committee introduced a bill
today designed to prohibit employers
in Washington from forcing any per
sons to work more than six days in
any period of seven consecutive days.
The measure would not affect em
ployment in domestic service in
private homes or employment of per
sons over 21 years of age in bona fide
executive positions in the profes
sions.
The Minimum Wage Board of the
District would be charged under the
bill with enforcement of the law.
G. M. Whitwell and Dr. Johnson
To Leave School Board June 30
George M. Whitwell and Dr. J. Hay
den Johnson today announced they
would not stand for reappointment to
the Board of Education when their
terms expire June 30.
Both have written letters to Chief
Justice Alfred Wheat of the District
Supreme Court requesting they not
be considered for reappointment and
have received replies that their wishes
will be honored.
The third member whose term ex
4
pires this June, Mrs. Henry Grattan
Doyle, president of the board, said
she probably will accept reappoint
ment if it is offered.
Whitwell, chairman of the Finance
Committee, explained that pressure
of business affairs and his ncu'.th
made it necessary for him to drop
his work with the board.
"I have been finding it increas
ingly difficult to give to school mat
(See BQARP, Page A-50
1
U. S. TO BEGIN NEW
ISO,000,000 SERIES
OF BILLS MONDAY
Weekly Borrowings Neces
sary to Plug Income
x and Outgo Gap.
PROCEDURE IS IN LINE
WITH TREASURY POLICY
Morgenthau Would Keep Work
ing Balance, Now $858,000,000,
Close to Billion.
BACKGROUND—
Necessity for revision of fiscal
plans became evident after tax rev
enues fell short of expectations.
With budget prospects still hinging
on relief requirements, Federal
Government has started tightening
purse strings First movement to
ward curtailment of expenditures
was furloughing of 850 workers,
effective May 1.
Mayors and Governors, mean
while, are exerting great pressure
to have Congress vote more than
$1,500.000.000 tentatively indicated
for relief in early estimates of Fed
eral appropriations.
By tne Associated Press.
Secretary’ Morgenthau said today
the Treasury would start a new series
of $50,000,000 weekly bill issues Mon*
day to replenish the Federal cash box.
With tax revenues dropping behind
estimates, the borrowing will be neces
sary to plug the gap between income
and outgo.
The Treasury’s cash working bal
ance now stands at $858,000,000. In
the past, Morgenthau has said he
hopes to keep this close to $1,000,*
000,000
The Secretary declined to tell his
press conference how much the bor
rowing would aggregate.
He said the discount bills, which will
be in addition to the regular $50.
000.000 weekly offering to meet ma
turities, will be due in mid-September.
Asked whether his decision to issue
bills was prompted by the possibility
of stiffening interest rates on long
term obligations, The Treasury chief
replied:
’’I think bills are a proper way to
raise money at this time.”
In Line With Policy.
He added the procedure was in line
with the Treasury's policy of issuing
long-term securities only on quarter
dates.
President Roosevelt's revised budget
figures and his relief message prob
ably will be ready to submit to Con
gress about the middle of next week,
it was indicated, meanwhile, at the
j White House.
The President had hoped to have
the message and figures ready to
transmit to Capitol Hill by Monday,
but the Treasury and the Budget Bu
real will not complete their figuring
in time for him to get the material
ready before Wednesday or Thursday.
Preliminary to the writing of the
message, which he hopes to begin over
the week end, President Roosevelt
will confer late today with Treasury
Secretary Morgenthau and Budget
Director Daniel Bell.
Meantime, the President is await
ing the response of department and
agency heads to his letter ordering
them to slash their expenditures for
the remainder of the fiscal year be
cause of the likelihood of a deficit far
greater than was anticipated. He ex
plained in the letter that the income
will not be as large as was originally
j estimated and that the expenditures
I haxe exceeded the early estimates.
Rail Pension Plan.
Discussing the controversy over a
new railroad pension plan. Morgen
thau said this “is up to Congress now.”
A voluntary retirement plan drafted
by rail management and labor drew
Treasury objections that its taxes were
! not high enough to meet benefit pay
ments.
Morgenthau said a group of actu
aries had made "two suggestions” about
financing the plan, and he had agreed
to both.
He declined to discuss the position
of rail management and labor, but it
was indicated they had disagreed.
Morgenthau said the Treasury was
in agreement about the program with
Chairman Harrison of the Senate
Finance Committee and Chairman
Doughton of the House Ways and
Means Committee.
MAN HELD BY F. B. I.
CHICAGO. April 15 OP).—The
Federal Bureau of Investigation an
nounced today the arrest of a man
giving his name as John Buzas, on a
charge of sending an extortion letter
to Ginger Rogers, film actress.
Agents said the letter demanded
$500. They declined to make public
its contents, they said, pending an
announcement on the case from head
quarters in Washington. Buzas was
arrested here.
The Kidnaping
Of Gen. Chiang
For the first time Gen. and
Mme. Chiang Kai-shek tell their
story of the dramatic events of
last December on which the fu
ture of 400,000,000 Chinese de
pended.
Their first-hand account will
appear in nine daily install
ments in
The Evening and
Sunday Star
Beginning Tomorrow

Evening star. [volume], April 15, 1937, Image 1
About Evening star. [volume] (Washington, D.C.) 1854-1972

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Evening star. [volume], April 15, 1937, Image 1
About Evening star. [volume] (Washington, D.C.) 1854-1972