Evening star. [volume], April 15, 1937, Page A-3, Image 3

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

Image provided by: Library of Congress, Washington, DC

                
Hint to Course Sought in
Chancellor’s Policy
Declaration.
BY FRANK L. HAYES.
•y Radio to The Star.
VIENNA, Austria, April 15.—An
nouncement was made today that Dr.
Kurt Schuschnigg, chancellor of Aus
tria, will have his long-promised con
ference with Premier Benito Mussolini
of Italy at Venice on April 22. For this
reason political observers studied with
special interest the statements of Aus
trian policy proclaimed by the chan
cellor yesterday at a provincial rally
In Eisenstadt.
The chancellor said that Austria
could fulfill its duty only if it is an
independent state and that its duty is
to act as a guarantor of peaceful de
velopment in this, “the heart of Eu
rope.” He added that Austria could
fulfill this duty better because it is not
imperialistic. Commenting, the Vien
na Tag. formerly a Democratic jour
nal, said: “Our little country, as an
important European crossroad, must
refuse to be harnessed up for foreign
imperialistic tendency.”
Urges Bar to Propaganda.
Firm resistance to the German cam
paign for the admission of more Nazi
newspapers into Austria was seen in
the further declaration by the chan
cellor that maintaining independence
means the rejection of propaganda for
annexation "whether from without or
■within.”
This remark implied the existence of
propaganda for annexation “from
without,” although by the agreement
of last July Germany undertook to re
spect Austria's sovereignty over its in
ternal affairs. Of late a polemic cam
paign against Austria has been con
ducted in German journals which are,
as the Austrian government points out,
official.
Dr. Schuschnigg also declared, ‘‘It
Is false to say that there are only two
choices — annexation by a greater
neighbor or return to a previous form
of government.” Though the chancel
lor did not use the word "monarchy,”
observers regard the statement as
meaning that the government is drop
ping the restoration campaign for the
present. Previously a semi-official
newspaper had rebuked the mon
archists for crowing over the silence of
the Little Entente on the subject of
restoration.
Restoration Opposed.
Although the Little Entente was
silent in its Belgrade communique, of
ficials of the affiliated nations have
declared themselves sharply against
restoration — most recently, Milan
Hodza. premier of Czechoslovakia.
Czechoslovakia lagged behind Yugo
slavia in offering vigorously unequi
vocal remonstrance against the latest
Austrian restoration campaign, and it
has been widely believed, particularly
in Hungary, that the monarchists had
received at least negative encourage
ment from the Czechs. The latter,
however, have been consistent in pro
fessing that they did not regard the
Issue as current. They explained:
“We recognized the campaign as a
bluff and did not wish to dignify or
aid it by more talk.”
Meanwhile the Czechs hav£ some
thing more mysterious to ponder in
the sibyline words of Heinz Rutha at
a meeting of the Sudenten German
party in Marienbad. Rutha said that
the fate of Sudenten Germans in
Czechoslovakia "is not a matter of in
difference to the German fatherland"
find he urged the party to stick to
gether “until December.”
(Copyright, 1U37.)
FOUND.
^VTRE-HAIRED TERRIER, small, white and
black, male, homesick. Lincoln 8578 be
tof 5 p.m, or after 8 a m.
LOST
COIN PURSE containing change and wed
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DIAMOND WEDDING RING, at Loews
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Reward. National 4271._Mrs. Johnson.
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FIRE ESCAPES
In accordance with D. C. Building Code.
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YOUR TAXES
What You Would Pay and How Under
the Bills Proposed in the House.
Article No. 4—Local Income Tax.
• ■
ESTIMATED YIELD—$6,000,000.
PURPOSE—To substitute for present tax on intangible property.
AFFECTS—All locally derived corporation incomes and personal in
comes of $1,000 or over for single persons; of $2,500 or over for
married persons. Would exempt Congressmen and other Federal
officials elected or appointed for stated terms who are not resi
dents within definition of act.
The proposed District income tax \
raises a number of points which
cannot be adequately discussed in
a single article. There will, there
fore, be four articles on the local
income tax, of which this is the
first. The following article discusses
the principle of duplicate or over
lapping taxation, as applied by the
local income tax proposal.
HE proposed District income
tax, roughly estimated to
raise about $6,000,000 an
nually, is considered an out
standing example of "double tax
ation,” the principle of which has
been widely condemned, not only by
President Roosevelt, but by every
recognized authority on taxation.
This new tax would levy a burden
on incomes here, which already are
subject to the Federal income tax,
thus piling a second tax on already
heavily taxed incomes.
The District income tax would be
laid not only on the income of bona
f.de residents of the city, but also on
the income from "all property owned,
and from every business, trade, or
profession carried on in the District
of Columbia by persons not residents
of the District.”
This would tax people who earn
their salaries in the District, even
though they live in nearby States. A
credit is permitted on income taxes
paid to States, but the credit extends
only to the income tax. Thus a
credit would be allowed Virginians
who pay a Virginia income tax, but
no credit would be allowed Maryland
ers—Maryland having no State in
come tax. It would also tax corpora
tions, joint stock companies and as
sociations for profit.
Rates of the new District of Co
lumbia income tax range from 1 per
cent on the amount of net income not
exceeding $2,000, up to 6 per cent on
the amount of net income in excess of
$50,000, for individuals. The corpora
tion tax is 5 per cent on net income.
Raises “Double Taxation” Cry.
While many objections will be
raised against the proposed District
income tax on other grounds, one of
the first, plain on the face of it,
is based on manifest "double tax
ation.”
To tax the same source twice is in
direct violation of the announced
policy of the Interstate Commission
on Conflicting Taxation, the succeed
ing Tax Revision Council, and in
statements of Franklin D. Roosevelt
as Governor of New York State, and
as President of the United States.
While Governor, Roosevelt com
plained that Federal, State and local
governments, at one and the same
time were taxing incomes, inherit
ances, commodities, corporations and
property.
"The result is confusion,” he de
clared; "the result is bitterness; the
result is unfairness. We have no sys
tem; we have no delimitation. Federal
and State governments vie with each
other in taxing the same source.
State and local governments vie with
each other in duplicating taxes on
the same property.”
Roosevelt Attempts Correction.
As President, Roosevelt launched a
movement to help untangle the tax
skein. In a speech to the United
States Conference of Mayors here in
November of 1935, he announced he
would call a forthcoming conference
to revise and co-ordinate Federal,
State and local tax systems.
"Taxes have grown up like Topsy
in this country,” he told the mayors.
"There have been a great many efforts
to simplify taxation, to establish lines
of demarcation between the different
types of taxation, giving certain types
to localities, others to the States and
still others to the Federal Government.
“We are stepping on each other’s
toes, especially in the past 5, 10 or
15 years. In fact, virtually since the
beginning of the World War the gen
eral tax situation in the United States
has become not only more complicated,
but has called for revision. We haven’t
had a revision, and I think the time
is coming, not this session of Congress,
but the following year, when all of
us can get together and sit around
a table and work out a better system
of taxation, State, municipal and Fed
eral.”
May Call Conference This Year.
The President has not yet followed
up this promise by a call for such a
conference, but there have been indi
cations that he may do so after the
adjournment of the present session.
A resolution requesting him to call
the conference was offered by Sen
ator King, chairman of the Senate
District of Columbia Committee, in
January of this year, but the resolu
tion has not yet been reported by the
Senate Finance Committee.
A different step in the same general
direction was taken by the President
early in 1935 when he directed Secre
tary of the Treasury Morgenthau to
“undertake a study of sources of tax
ation, with particular reference to the
matter of conflict or overlapping of
Federal, State and local taxation.”
The Treasury survey, a compilation of
the yields since 1930 of State taxes
Largest, Fastest American
Liners in Transatlantic Service
MANHATTAN
APR. 21#t
WASHINGTON —MAY 4th
Pres. Harding Apr. 28th
Pres. Roosevelt May 12th
A Soiling Every Wednesday at* Noen
Te Ireland, England, France, Germany
Also American "One Class liners"
weekly to London — fortnightly te
Cobh and Liverpool.
Ask your local hovol agent
Company’s Office. 743 14th St. N.W.
Tel. NAtional 3000.
from eight sources, all of which are
also taxed by the Federal Government,
was made public last November.
The survey showed that approxi
mately two-thirds of all State tax
revenues during the depression were
derived from sources taxed by the
Federal Government. These same
sources provided nearly three-fourths
of Federal tax revenues.
Income taxes lead the list of dupli
cated taxes in 1935, according to the
Treasury survey. In the same 28
States, where the Federal Govern
ment collected a total of $527,113,000
individual income taxes in 1935, the
States themselves took an individual
income tax of $99,951,000, making a
total levy against the same incomes of
these 28 States of $627,064,000.
Corporations also paid twice on
their incomes in the same 28 States,
turning over to the Federal Govern
ment $572,118,000, and to the States,
$64,740,000.
States Attempt Solution.
The first concerted movement by a
large number of State governments to
deal with multiple taxation took place
in February, 1933, when 32 States
formed the Interstate Commission on
Conflicting Taxation. The report of
the research staff of the commission,
made public in 1935, after a two-year
study, constitutes the most exhaustive
survey of conflicting taxation ever
conducted. In 1935, the commission
was reorganised into a Tax Revision
Council, representing Federal, State
and local governments, headed by Sec
retary Morgenthau. Addressing the
first meeting of the council, Morgen
thau expressed the view that “justice
to the taxpayer" should be the basic
objective.
"The first step." Morgenthau said,
"is to make a careful survey and anal
ysis of the total tax structure of the
country to determine just how the
burden of our governmental expense
is now distributed. Next, W'e should
note what practicable changes in the
combined tax structure of the country
would produce a sound and more
equitable distribution of the total
burden. In the third place, we should
concentrate upon a few important and
workable means of eliminating con
flicts and overlapping in a manner
consistent with our analysis of what
constitutes a fundamentally desirable
tax structure. Finally, having arrived
at a few Important possibilities which
we know to be fundamentally sound,
we can then attempt to put them into
effect.”
Findings Not Yet Disclosed.
Although the council at its meet
ing appointed five committees to study
special phases of the problem of con
flicting taxation, no further action
has been made public.
The District of Columbia should not
be subjected to another income tax,
according to the principles laid down
by the Interstate Commission on Con
flicting Taxation in Its report on "Con
flicting Taxation.”
Discussing the "dilemma” to which
separation of tax sources has led in
the field of State and local fiscal rela
tions, the report declares the same
dilemma would also arise in the field
of Federal-State relations.
"Briefly, it is this.” declared the re
port. "The only logical division of
tax bases as between central and local
governments is one which is made on
the basis of administrative suitability.
In other words, each level of govern
ment must be assigned those types of
taxes which it is best fitted to ad
minister. A division of tax bases made
according to this criterion, however,
will not necessarily satisfy the re
spective financial needs of the govern
ment levels in question.”
Division of tax sources on the basis
of administrative suitability would un
doubtedly call for th'- complete ex
TRIAL OF mm,
IN BROOKLYN PLAN
Indictment Proceedings Fol
low Conference With U.S.
Attorney General.
By the Associated Press.
NEWARK, N. J„ April 15.—United
States District Attorney John J. Quinn
has been restrained from, starting the
trial of the Ellis H. Parkers, father
and son, in the Wendel kidnap-torture
case in Newark, but he has the au
thority of Attorney General Cummings
to move the case to Brooklyn.
Returning from a conference with
Cummings at Washington, Quinn said
last night he would immediately seek
indictment of the Parkers under the
“Lindbergh law” by the Federal grand
jury in Brooklyn.
The Burlington County detective
chief and his son were indicted by the
Federal grand jury in Newark on
charges of conspiracy in the kidnaping
of Paul H. Wendel, former Trenton
lawyer.
Hauptmann Case Delay.
Wendel claimed he was tortured
Into confessing falsely to the Lind
bergh baby kidnaping, and his “con
fession” caused a three-day delay in
the execution of Bruno Richard
Hauptmann.
The trial had been scheduled to
start here next Monday, but Judge
J. Whitaker Thompson in Federal Cir
cuit Court in Philadelphia issued a
temporary restraining order.
Judge Thompson called on Govern
ment attorneys to appear April 26 to
show why the Parkers should not be
tried in or near Burlington County,
where they would have the benefit of
jurymen familiar with their reputa
tions. Defense counsel argued the
Parkers had a right to be tried in their
home community.
Cummings’ Permission Sought.
The order left the way open for
Quinn to shift the trial to Burlington
County, to Trenton or to Camden.
Instead he want to Washington and
obtained Summings’ permission to
move the case to Brooklyn.
Quinn pointed out that if the Par
kers were indicted in Brooklyn and
taken there, they would be subject to j
arrest by Kings County authorities
under kidnaping indictments on which
Gov. Harold G. Hoffman refused to
extradite them.
Former New Jersey Gov. George S.
Silzer. chief counsel for the Parkers,
would not say what action the de
fense would take in the event of a
Brooklyn indictment.
“We are ready,” he said, “to go to '
trial the moment Quinn moves the
trial to where it should be.”
-•-- —.
Tax Collections Up.
Income tax collections in the Philip
pines this year are nearly three times
those of 1936.
elusion of the States from the field of
income taxation, the report held, "On
the basis of the present distribution of
governmental responsibilities as be
tween the National Government and
the States,” said the report, "it is
difficult to see what compensatory
taxes could be assigned to the States
to offset the loss of their income tax
revenues. But even if a division of
tax bases could be found, which would
conform to the respective needs of the
levels of government, it would be nec
essary to revise this division frequently
as relative needs changed.”
(Another article on the proposed
local income tax will appear tomor
row.)
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MAN LEGALLY DEAD HELD
IN HOTEL FIRES.
JOHN JOSEPH O’NEILL.
Arrested for setting fires in
hotel rooms at Oakland, Calif.,
O’Neill refused to explain why
he would not return to Stam
ford, Conn., and accept an
estate he has twice refused.
Police said he disappeared in
1924 and has been declared
“legally dead.”
—Copyright, A. P. Wirephoto.
PLANS ARE DISCUSSED
FOR CELEBRATION MUSIC
Ellen Spencer Mussey Memorial
Bites’ Program Is Con
sidered.
Plans for the musical program for
the Ellen Spencer Mussey memorial
celebration, scheduled for May 13, were
discussed by the committee in charge
at a meeting yesterday at the Wom
en's City Club.
With Miss Selma Borchardt. vice
chairman, presiding in the absence of
Mrs. Henry Grattan Doyle, chairman,
the meeting discussed plans to get sev
eral glee clubs or choruses for the
ceremonies. No definite decision was
made, however, the arrangements
being left in the hands of a subcom
mittee.
The question of speakers and the
order of processional were also taken
up and were left in the hands of sub
committees.
NEW LOW PRICES
NOW EFFECTIVE ON
COLONIAL
ANTHRACITE
For Personal Service—Call
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805 Third St. NA.5IT8
Special Reconditioned Valuee \
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Lester Baby Grand _$175
Schmidt & Schultz Grand, $198
Whitney Baby Grand $245
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Coble & Sons Baby Grand, $350
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Pianos for Rent—
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i
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KRESS SUPPLY
MEASURE PASSED
Senate Approves $24,
000,000 for Legislative
Branch.
The $24,000,000 appropriation bill
for the legislative branch of the Gov
ernment during the next fiscal year
passed the Senate this afternoon after
Senator Hayden, Democrat, of Ari
zona, had failed in a last-minute ef
fort to include a provision allowing
the public printer to transfer em
ployes temporarily from one class of
work to another without changing
their wage rates.
Senator Hayden said the purpose of
the amendment was to save money,
explaining that when an employe is
assigned for a short time to work call
ing for a higher basic rate, the Gov
ernment Printing Office is required
under existing law to pay the rate
specified for the work being performed
at the time.
Senators Adams of Colorado and
Byrnes of South Carolina took the
view, however, that the amendment,
as worded, would give the public
printer authority to adjust rates of
pay that were in effect June 1, 1932,
when such rates are found to be in
equitable, unjust or unfair. Byrnes
and Adams contended the amend
ment might lead to increased expendi
tures. and Byrnes made a point of
- ---
order against the proposal, which was
sustained.
The legislative bill, which now goes
to conference, contains only a few in
creases over the House figure amount
ing to about $85,000, Of this amount
approximately $12,000 is for pay in
creases for some of the officials and
employes of the Senate. The re
mainder is for maintanance and re
pair work, and $10,000 for new books
for the Library of Congress.
In addition to the legislative bill,
it had been expected Senator Har
rison. Democrat, of Mississippi would
call up the Federal-aid-for-education
bill, but this plan was abandoned be
cause of the absence of several Sen
ators. Senator Black, Democrat, of
Alabama, co-author with Harrison of
the education bill, is recovering from
an illness.
What—Not Colossal?
BURLINGTON, Iowa OP).—Passers
by noted this marquee billing, in elec
tric letters, on the theather here man
aged by Harold Lyons:
“Two features—neither one is any
good.”
Lyons, however, said attendance had
not decreased.
HATS
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Millinery and Hat Blockera
733 11th St. N.W.
Annual 3-Day Sale
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2-Yr.-Old Shrubs
ch:r 12 ^ $5
Forsythia, Spirea, Van Houttei,
Spirea Thumberg, Spirea Anthony
Waterer, Weigela Rosea, Althea,
Buddleia, Deutzia, Hydrangea.
EVERGREENS
Choice each
Pfltzer Juniper. Chinese Juniper,
Va. Glanca (blue cedar), Irish
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2-YR. OLD
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NURSERYMEN Plenty of Parking Space
7 CONVICTED IN RIOT
ALEXANDRIA, Ind., April 15 UP)._
A jury convicted seven members of
the United Automobile Workers’ Union
and acquitted another here last night
on riot charges in connection with
attacks made on solicitors for the
Alexandria Citizens’ League for In
dustrial Security last March 22.
The seven men were indicted follow
ing a strike at the Aladdin Industries
Inc., lamp plant.
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SI.00 S. T. 37__. 69c
Large Listerine_59c
Squibb's Tooth Paste 19c and 33c
2 Pts. Rubbing Alcohol _25c
2 Pts. Witch Hazel _25c
50c Woodbury's After Shaving
Lotion _25c
35c Woodbury's Shaving
Cream . .. . 18c
10c Woodbury's Soap_6c
10c Lux Soap (limit 5)_5c
10c Lifebuoy Soap (limit 5)-- 5c
25c Citrate of Magnesia_11c
100 Saccharin, 1 or Vz gr_11c
No Phone or Mail Order*
The GIBSON CO.
917 G ST. N.W.
Sidney westin^
14th and G Sts. Cy
Truly the Finest Lightweight Hats You Ever Saw!
DOBBS
Duvay Felts
LOOKS BETTER—WEARS LONGER, BECAUSE THEY'RE THERMO SET
Years of producing fine hats have resulted in the de
velopment of this new and exclusive process. It imparts
a softer, richer texture to the felt—insures longer shape
retaining wear—and gives the hat more "body" with a
lightness in weight formerly unattainable. Smartly
styled in the new shades to harmonize perfectly with
your new Spring clothes.
Offered in Many Different Styles, $7.50 & $10.00
Sidney West, inc 1 4th & G
EUGENE C. GOTT, President.