Evening star. [volume], May 10, 1937, Image 1

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

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85th YEAR. No. 33,977. poet office, Waahlnston, D. O. W ASHI^GTO^, I). 0., MOIS DAY, MAY 10, 1937—THIRTY-SIX PAGES." Meant Associated Prtfts. TWO GENTS.
HINDENBll FIRE
FIRST SEEN ON TOP.
PROBERSARE TOLD
Rosendahl Says Ropes Were
Grounded 4 Minutes Be
fore He Saw Blaze.
GREATLY SURPRISED
BY BLASTS’ MILDNESS
Commander Indicates Disbelief in
lightning Theory After Morn
ing Session Closes.
BACKGROUND—
The Hindenburg. largest airship
ever built, crashed in flames last
Thursday near mooring mast at
Lakehurst, N. J., after flight from
Germany. Thirty-five lives were
lost.
Investigation of the disaster was
ordered immediately by the Senate
Sea Safety Committee and the
Navy and Commerce Departments.
Navy inquiry, however, has been
delayed in order not to interfere
with that of the Commerce Depart
ment.
By th» Associated Press.
LAKEHURST, N. J.. May 10.—
Comdr. Charles E. Rosendahl. the
Navy's outstanding lighter-than-air
expert and an eyewitness of the Hin
denburg's fiery destruction, today told
a Department of Commerce Investi
gating Board that "a small burst of
flame on the after part of the ship on
the top” was the first sign of the
disaster that befell the dirigible.
“My feeling was at once that it
spelled the doom of the ship," he de
clared.
Himself the veteran of one of Amer
ica’s major airship disasters—the de
struction of the Shenandoah—Rosen
dahl was the first witness called as the
Investigation opened in the chill great
hangar. Rain drizzled down on the
Hindenburg wreck on the airfield a
third of a mile away.
"It is. of course, obvious." Rosendahl
said, "that I have no knowledge what
was the origin of the fire.”
Conditions “Satisfactory.”
The present commandant of the
United States Naval Air Station here,
Rosendahl preceded his description of
the actual disaster by telling the three
man investigation board and its staff
of technical advisors that the Hinden
burg came down to her last landing
under atmospheric conditions that
were “entirely satisfactory” and with
the ground crew proceeding in a
normal manner. The ship's pre
landing maneuvers were nothing un
usual, he added.
Alter noticing the nrst small pun
flare from her stem, Rosendahl said,
"I saw practically the whole stern
of the ship take fire first. • • • Then
the fire spread progressively forward.
"I was greatly surprised," he' con
tinued, "that there was not more ex
plosion connected with the phenom
enon. There were mild explosions
during the burning, but in my opinion
they were primarily the consumption
of the ship by the burning of hy
drogen."
"As for myself, I ran from the vicin
ity and shouted for the ground crew to
do likewise. The main concern of the
ground crew was to get clear of the
wreckage and not get hit by it.”
Saw Ground Crew Return.
‘*1 saw the ground crew return im
mediately to the wreckage.”
He saw some passengers and crew
members emerge from the inferno of
the blazing hull unscathed, he related,
adding:
“Because of the intense heat from
the fire, it was impossible to get into
the hull for rescues. Those who did
risked their lives.”
Rosendahl estimated the Hinden
burg was riding at an altitude of 200
feet when the fire occurred, at 6:23 p.m.
"I might add,” he stated, “that the
ship did not touch the ground at any
time until the fire. The trail ropes
were on the earth four minutes be
fore the fire was observed.”
Some theorists have suggested that
the dropping of water ballast might
have provided a liquid conductor for
an electric spark from the ground to
the ship. Although not referring to
this hypothesis, Rosendahl pointed
out that when water ballast is dropped
••as a rule this dissolves and does not
itrike the ground in a solid stream.”
Effect of Trail Rope.
The naval dirigible authority said
it was his opinion that the first
manila trail rope the Hindenburg
dropped would "definitely” ground the
charge of static electricity which all
airships accumulate in flight.
Since there was no evidence of fire
(See HINDENBURG, Page A-4.)
JAPANESE WARNED
WAR MAY BE NEAR
Navy Pamphlet Urges All to Rise
to Defense of Empire, if
Needed.
•r the Associated Press.
TOKIO, May 10.—Declaring that a
situation similar to that preceding
the Russo-Japanese War existed, the
Japanese Navy today urged all Japan
to riss again to the defense of the
empire If challenged.
Hundreds of thousands of copies
were printed of a new navy pamphlet
which will be distributed May 27 in
commemoration of the Japanese naval
victory in the battle of the Japan Sea.
•With a treatyless era Inaugurated,"
the pamphlet said, "the uneasiness at
present prevailing in Eastern Asia and
the Pacific constitutes just as critical
a situation for Japan as that before
the opening of the Russo-Japanese
War.
“Our Navy now is confronted by
the sheer necessity of making Japan’s
national defense secure in the midst
of world-wide naval expansion.
, "It is certain if Japan should pursue
the wrong policy during this extraor
dinary situation all our great achieve
ments In the Japan 8ea will be worth
less”
< 1
Merrill Lands at Croydon
After 21-Hour Ocean Flight
Radio Trouble Halts American Plane
at North Weald Airdrome
Few Minutes.
By th« Associated Press.
CROYDON AIRDROME, England,
May 10 (£*).—The American corona
tion flyers, Dick Merrill and Jack
Lambie, landed at Croydon at 6:38
p.m. (12:38 p.m., E. S. T.) to complete
the eastward leg of an ambitious
transoceanic flight that may put them
back in New York by Thursday.
They had landed ‘first at North
Weald Airdrome, 15 miles outside
London, to repair damaged radio ap
paratus and then sped on to land
here 21 hours 2 minutes after the take
off from Floyd Bennet Field in New
York Sunday.
A large crowd geeeted them upon
their arrival.
The pair planned to pick up pic
tures of coronation day and fly back to
New York after the ceremonies Wed
nesday. i
Neither showed the slightest sign
of fatigue.
Merrill popped out of the plane
first and was rushed by a woman
admirer, who planted three resounding
kisses. He took some minutes to re
move the lipstick and remarked it was
a ‘ pretty tough trip."
“We flew blind,” he asserted, “the
entire way.”
Both flyers said they felt fine and
expected to land back in New York
Thursday.
The first land they saw, Merrill
said, was the southwest corner of Ire
land. An air ministry official greeted
the flyers and gave them an unusual
grant, permission to fly anywhere they
desire while in England.
The girl who kissed Merrill was
Dorothy Dayc, American correspond
i See MERRILL, Page A-5.)
STRIKE THREAT
Six Producers Agree to Set
tle Actor Demands,
Give Pay Raises.
BACKGROUND—
For more than a week a strike
of the Screen Actors' Guild has
threatened to tie up another of
the Nation’s great industries—the
moi'ies. The 4,000 union actors are
seeking a closed shop, better work
ing conditions and higher pay.
Also on strike and seeking conces
sions of their own are the I'arious
craftsmen who work behind the
scenes, the members of the Fed
erated Motion Picture Crafts.
B? the Assocla"”! Press
HOLLYWOOD, May 10 —The omin
ous threat of a film actors' strike, with
i production paralyzed, theater pro
f grams curtailed and a SI.750.000
weekly pay roll in the movie capital
stopped, cave way today to a working
agreement between producers and the
Screen Actors' Guild.
Six of the nine ma.ior studios granted
the primary demands of the guild for
a guild shop, improved working con
ditions and better pay for extras.
Heads of these studios—R-K-O, Para
mount, M-G-M, Universal, Columbia
and Twentieth Century-Pox—also
promised to bring the three others
into line.
Samuel Ooldwyn, connected with
United Artists, issued a statement in
which he said: ‘‘I am shocked to
find that my name is not included in
the list. I have never and will never
be an enemy of the fair demands of
labor.”
The Actors Guild, meeting m the
ramshackle Hollywood Legion Fight
Stadium, heard the concessions with
a mighty shout of approval from
40.000 throats, accepted its commit
tee's proposal to continue negotia
tions, and invested its representatives
with power to call a walkout against
the differing studios unless they fall
into line quickly.
Nationwide Boycott Hinted.
“We have an agreement with the
producers but it has not yet been com
mitted to a full contract,” Guild
President Robert Montgomery an
nounced to the meeting.
Charles Lessing, head of the Fed
erated Motion Picture Crafts, said
the tentative agreement between the
studios and the actors would not halt
picketing by his 11 unions.
“Unless we get an answer from the
producers by noon today,” Lessing
said, "we will call a Nation-wide boy
cott of motion picture theaters. We
will concentrate that boycott in the
industrial centers.
“All Questions Settled.”
Montgomery told the guild meeting
that the producers had agreed to abol
ish the $3.20-a-day minimum for
extras, to pay a $5.50 minimum for
extras doing "mob stuff,” which re
quires no speaking lines,; to increase
by 10 per cent the pay of extras now
getting $7.50 to $15 a day, and to
make available to the guild the full
records of the Central Casting Bureau,
where the vast majority of the extras
get their employment.
Preceding the guild vote accepting
its committee's program, Ralph Mor
gan advised the membership to "stand
by your guns until the agreement is
actually signed."
Joseph M. Schenck, chairman of the
producers’ Special Committee, has
transmitted to the guild a formal
statement saying that "All important
questions discussed by the committee
representing the motion picture pro
ducers and the film actors have been
settled satisfactorily.”
‘SPY RING’ PROBE
URGED IN SENATE
Investigation of Franco and
Fascist Activities De
manded by Nye.
B> the Associated Press.
Senator Nye, Republican, of North
Dakota urged in the Senate today an
investigation of what he called a "spy
ring" in this country "serving the
Spanish Gen. Franco and his Fascist
state.”
Nye filed with the Senate transla
tions of letters which he contended
showed former Spanish diplomats and
members of a New York shipping firm
were involved in "activities which
violate and threaten American neu
trality."
Names Former Officials.
Naming former Ambassador Juan
Francisco de Cardenas and two for
mer officials of the Spanish Embassy
here, Nye said "they have carried on
in a way to indicate that they con
stituted the clearing house for the
Spanish insurgents in the United
States.”
Nye suggested that the proposed in
vestigation should include "all agencies
foreign to our country which are par
ticipating In the present struggle to
win American favor for one cause and
another as represented In the lines
drawn In Spain.”
Cardenas, Nye said, was Ambassa
dor to the United States until 1934.
and added he and "perhaps others
representing a pretended foreign
state not recognized by our Govern
ment, appeared to be in our midst
through the grace of diplomatic
passports ”
“Certainly it is not American de
sire to have the alleged activities car
ried on by men who are here upon
our own diplomatic invitation,” he
said.
Names Headquarters.
Nye said Cardenas had headquar
ters at the Ritz-Carlton Hotel in New
York and asserted Jose de Gregorio,
former secretary of the Spanish Em
bassy here, and T. Matoes. a former
embassy chancellor, were “associated
with him.”
Nye said "it is my information” that
neither Manuel Diaz nor Marcelino
Gracia, members of the shipping firm
he named, were citizens of the United
States. He expressed belief their ac
tivity “subjects them to deportation.”
•The Spanish freighter Mar Canta
brico, which sailed in January from
New York with supplies for the Loyalist
government, was "spied upon by agents
who were reporting to Garcia and Diaz
in New York, who were in turn re
porting to higher-up agents of the
Gen. Franco forces,” Diaz asserted.
One letter by Garcia and Diaz. Nye
told the Senate, expressed regret there
was no “spoedy armed ship” in the
Strait of Yucatan to capture vessels
carrying supplies from Mexico to the
Loyalists.
Such an armed ship, the letter sug
gested, might be provisioned in Guate
mala.
HOME RUN IS FATAL
Player Falls Dead of Heart At
tack Due to Exertion.
CHICAGO, May 10 UP).—Leonard
Bruno, jr., 14, knocked a home run
in a sandlot base ball game near his
home, circled the bases and sat down
on a bench to rest. A moment later
he fell dead. A physician today as
cribed his death to a heart attack
induced by overexertion.
Mitchell Loses Tax Case Appeal;
Banker Must Pay $728,709
By the Associated Press.
NEW YORK, May 10—The United
States Circuit Court of Appeals today
ruled unanimously that Charles E.
Mitchell, former president of the Na
tional City Bank of New York, must
pay $728,709.84 taxes on his income
for the year 1929.
In his tax return for the year 1929
Mitchell deducted $2,872,305.50, which
he claimed was a loss incurred by him
through the sale of 18,300 shares of
National City Bank stock at $212 a
share to his wife.
In the Circuit Court of Appeals de
cision, written by Judge Augustus N.
Hand and concurred in by Judges
Thomas W. Swan and Harrie B. Chase,
it was set forth:
“There was ample evidence that the
sale of 18,300 shares of stock to Mrs.
Mitchell did not represent a genuine
transaction, but was prompted by the
realization by Mitchell, during the
year, of an Income from which some
4oas had to be deducted if the payment
of a huae tax waa to be avoided.”
i
Another item of additional taxes in
dispute was based on the fact that
Mitchell had received $666,666.67 from
the National City Bank as compensa
tion for services during the year 1929,
but had omitted to report it as taxable
income.
“We can imagine no ground for say
ing that it was not taxable income,”
wrote Judge Hand.
The matter came before the Circuit
Court of Appeals on a petition for re
view of a ruling by the United States
Board of Tax Appeals, which had held
that a tax deficiency of $728,709.84
was due from Mitchell for the year
1929.
The Court of Appeals, however, modi
fied the board’s ruling insofar as it pre
scribed the collection of a penalty ol
$364,354.92 from Mitchell. In that
connection it was noted that criminal
prosecution of Mitchell,' which ended
in his acquittal, was based upon the
same facts as the civil proceedings be
fore the court and .that the acquittal
made ooUectim aaenaUar
Countless Thousands Still
on Way, With City Al
ready Overburdened.
IMITATION CROWN USED
IN FINAL REHEARSAL
Royalty Entertained at Bucking
ham Palace—Finishing Touches
Put on Preparations.
By the Associated Press.
LONDON, May iO.—An endless cor
onation cavalcade, estimated at 1,000,
000, milled through the old streets of
London today and surged about the
palace of its King.
The sun, struggling through clouds,
gave bright hope of "King’s weather’’
for Wednesday's pageant of past and
present.
Within Buckingham, George VI and
his Scottish commoner Queen, the
radiant Elizabeth, gave a luncheon to
visiting foreign royalty.
Throngs milled before the palace to
cheer wildly at each glimpse of an
arriving prince.
Princess Takes "Peep.”
They burst into a prolonged and
strident roar when, from a second
story window, Princess Elizabeth, the
11-year-old heiress presumptive, peep
ed out with her little sister, Margaret
Rose.
Another ovation swelled forth when
Queen Mother Mary, with Queen
Maud of Norway, reached the palace
from Marlborough House.
The Duke of Kent and his duchess
arrived with Prince Nicholas of
Greece.
Around Picadllly Circus, the pell
mell crowds were so dense that pink
cheeked bobbies scrambled over auto
tops to keep some semblance of order.
Now and then, a wave of uncon
trolled excitement ripped through the
people.
State Banquet Tonight.
Tonight, in the palace, will be the
State banquet for the regal guests and
other distinguished visitors. In all.
450 of them will dine off the famous
Garter china service—and look at the
palace gold plate.
The guests will dine in two rooms,
the white and gold ball room, where
the King will preside at the central
oval table, and the blue supper room,
where the Queen will be hostess.
The guests will be seated at small
tables grouped about the central table.
Full-dress uniforms or dress clothes
with silken knee breeches will be worn
by men attending.
Servants will be attired in full state
livery of either dark blue and gold or
(See CO RO NAT! 6 N~Page A-3.)
FALLS SIX STORIES
1
Woman, 45, Survives as Wire
Screen Breaks Force.
NEW YORK. May 10 (A3).—A 45
year-old woman. Alta Rose Lee, today
survived a six-story plunge from the
window of her room in a Broadway
hotel.
She was still conscious when taken
to a hospital. She landed on the
stained glass roof of the cocktail
lounge and lobby. A wire screen
stopped her fall.
-:-•
NEW SENATOR SEATED
Mnj. Berry Succeeds Bachman
From Tennessee.
Maj. George L. Berry took office to
day as United States Senator from
Tennessee. He succeeds the late
Nathan L. Bachman of Chattanooga.
Senator McKellar, his senior col
: league from Tennessee, escorted Berry
to the rostrum, where Vice President
Garner administered the oath.
■
_TITTLE BOY BLUE!”
FOES OF ABAnOIR
LINE UP FOR FIGHT
Demonstration for King Bill
to Be Made at Capitol
Tomorrow.
BACKGROUND—
Issuance by city of foundation
permit for new abattoir in East
Washington last year brought
storm of protest from civic leaders
and Government officials. Denial
of superstructure permit by Com
missioners resulted in suits for
*50.000 each against city heads.
Commissioners later issued building
permit after abattoir plans were
revised. Fight against abattoir
then was taken to Congress.
Stimulated by an appeal for sup
port sent out today by the American
Planning and Civic Association, pro
ponents of the King bill for regula
tion of so-called nuisance industries
in the District are planning a vigor
ous demonstration of favor before a
Senate subcommittee tomorrow after
noon.
Scheduled to open at 2 p.m. in the
Senate District Committee room, the
hearing will be open and will provide
an opportunity for civic leaders
aroused by the permit given to the
Adolf Gobel Co. to construct an abat
toir in Benning. D. C., to present their
views.
As this indication of an effective
display of strength on the Senate side
developed, support for the proposed
regulation was evidenced within the
House District Committee, where a
companion measure introduced by
Chairman Norton is awaiting action.
A reflection of the House commit
tee's attitude was seen today in com
ment of Representative Dan McGehee,
Democrat, of Mississippi, who de
clared he will give his full support to
legislation to protect residential areas
from any infringement by undesir
able industries. This intention is
strengthened, he said, by the fact that
there are numerous areas adjacent to
the District and convenient to trans
portation facilities where an abattoir
such as that proposed for Benning
might be located.
That such operations can be dan
gerously detrimental to property such
as that within the District limits has
been demonstrated to him, McGehee
(See ABATTOIR, Page A-4.)
Summary of Today’s Star
Page
Amusements. B-16
Comics _B-12
Editorials_A-10
Financial_A-17
Lost & Pound.A-3
Obituary A-8
Page
Radio .A-15
Short Storys.B-10
Society _B-3
Sports A-12-13-14
Woman’s Pg.B-11
FOREIGN.
Nye charges 'IFascist espionage ring"
in United States. Page A-l
Million visitors throng London for
coronation. Page A-l
Italy said to have designated a British
reporter for expulsion. Page A-2
Defense Council is set up by Basque
government. Page A-2
NATIONAL.
Mitchell, former bank pr&ident, loses
tax case appeal. Page A-l
Burke to offer amendment as oourt
bill substitute. Page A-l
Hindenburg fire burst from top of ship,
probers told. Page A-l
Merrill plane overdue at Croydon in
fog and rain. Page A-l
Probable action on economy this week
is seen. Page A-l
Appeals Oourt upholds P. W. A. in
power fund dispute. Page A-l
Strike threat of 25,000 steel workers
"growing critical.” Page A-2
Raskob-Du Pont income tax case
enters second week. Page A-4
WASHINGTON AND VICINITY.
Abattoir opponents lining up for fight
tomorrow. Page A-l
Commissioners wind up tax program
study. Page A-l
Grayson addresses nearly 2,000 Red
Cross workers. Page A-2
S. E. C. suggests regulatory legisla
tion. Page A-2
Water system repair item cut from
supply bill. Page A-2
Congress considers memorial to Jeffer
son Davis. Page A-5
High school oadets open annual com
petitive drills. Page B-l
Jordon discharges Holewortb tram
*wa g Page 44
3
Mother's day observed here and
throughout Nation. Page B-l
Mellon adds to art gallery he is giving
to United States. Page B-l
Circus opens three-day stay here on
Monday. Page B-l
Commissioners may ask salaries for
wage officials. Page B-l
EDITORIAL AND COMMENT.
Editorials. Page A-10
This and That. Page A-10
Washington Observations. Page A-10
Answers to Questions Page A-10
David Lawrence. Page A-ll
Paul Mallon. Page A-ll
Dorothy Thompson. Page A-ll
Contantine Brown. Page A-ll
Lemuel P. Parton. Page A-ll
SPORTS.
Millies may be answer to Griffs’ search
for catcher. Page A-12
Macks take lead in wild base ball week
end. Page A-12
Tilden, revising estimate, concedes
Perry Is great. Page A-13
Pro fight ring held no place for varsity
athletes. Page A-14
Gallagher faces tough foe tonight in
Jorge Brescia. Page A-14
Mrs. Stokes feared in Star Cup golf
tourney. Page A-15
FINANCIAL.
Bonds irregular (table). PageA-17
Stocks go down (table). PageA-18
Curb list eases (table). PageA-19
Earnings reports cheerful. Page A-19
Steel rate higher. PageA-19
Favorable trade trend seen. Page A-20
MISCELLANY.
Washington Wayside. Page A-2
Young Washington. Page A-7
Shipping News. Page A-8
City News in Brief. Page A-S
Letter Out. Page B-5
Nature’s Children. Page B-5
Winning Contract. Page B-«
Bedtime Story. Page B-9
Dorothy Dix Page B-ll
Betsy OmwsIL . Page Bril
CRMWlin* Page B-U
A
Mother’s Day Goes
Without an Arrest
At Headquarters
Crime stood still yesterday as
far as police headquarters was
concerned.
For the 24-hour period not a
single arrest was made by officers
and detectives operating from
the department's central bureau.
Although a one-day lull like
this is not unprecedented. Detec
tive Chief Bernard W. Thompson
said it was “very unusual.”
BURKE 10 OFFER
—
Thinks Amendment Would
Clear Up Matter in 2 or
3 Weeks.
BACKGROUND—
When fight first broke in Senate
over President’s plan to add a
maximum of six new justices to the
Supreme Court unless present mem
bers over 70 retire, opposition lead
ers were resigned to a filibuster as
a last resort in stalling off a vote
on the bill. Crystallization of sen
timent after protracted hearings by
the Senate Judiciary Committee,
however, has convinced them they
will have enough totes to defeat
the bill, resulting in the determina
tion to resist any compromise that
would “impair the integrity" of the
court.
BY G. GOULD LINCOLN.
Senator Burke of Nebraska, a leader
of the opposition to President Roose
velt's program to increase the Su
preme Court, announced today he was
perfecting a constitutional amend
ment which he would offer as a sub
stitute for the judiciary bill.
About two months ago the Nebraska
Senator offered a constitutional
amendment providing for the volun
tary retirement of justices of the
Supreme Court of 70 and compulsory
retirement at 75 years of age. Since
then a law has been passed for the
voluntary retirement of justices of 70.
Senator Burke would not disclose
the additional features of his pro
posed constitutional amendment. He
will discuss them in an address in
the National Radio Forum, arranged
by The Washington Star and broad
cast over the netjwork of the Na
tional Broadcasting Co., at 10:30
o'clock tonight.
“If my substitute should be accept
ed.” said Senator Burke, "we could
(See BURKE, Page A-3.)
- ...9
SON REPORTS MOTHER
KILLED WIFE AND SELF
Shotgun Used in Farm Tragedy
Near Seymour, Ind.—Infant
Made Orphan.
By the Associated Press.
SEYMOUR, Ind., May 10 —Charles
Hunter informed Coroner Leon Shaver
that his mother, Mrs. Henly Hunter,
shot and killed his wife today and
then ended her own life.
The coroner said he was told the
elder Mrs. Hunter killed her daugh
ter-in-law with a shotgun and fired at
her son. but missed him. She then
turned the gun on herself.
The shooting occurred at a farm 6
miles south of Seymour.
Mrs. Charles Hunter was the mother
of a 9-month-old baby girl.
BEFORE D. C. HEADS
t I
Tentative Draft to Raise
$2,500,000 Would Affect
100,000.
BACKGROUND—
Subcommittee of House District
Committee has been holding hear
ings on numerous measures pro
posed to meet minimum deficit of
S6.100.000 in District revenues, as
indicated by District budget as
passed by the House. Radical re
vision of tax structure was recom
mended by Chairman Collins of the
House Subcommittee on Appropria
tions, which framed supply bill.
BY JAMES E. CHINN.
With interest centered in a proposed
new income tax plan, the Commis- j
sloners were scheduled to meet this
afternoon with their own tax commit
tee to put the finishing touches on a
program of taxation for the coming
fiscal year that will keep the District
from running into a debt of at least
$6,000,000.
Earlier In the day Corporation
Counsel Elwood H. Seal completed a
tentative draft of the proposed income
tax bill, which, if approved by the
Commissioners, will be submitted to
morrow to the special tax subcom
mittee of the House District Commit
tee.
As predicted, the proposed income
tax plan closely follows the set-up in
one of the nine Collins tax bills now
pending before the House tax sub
committee. Estimates disclose it will
raise approximately $2,500,000 a year
by dipping into the incomes of ap
proximately 100,000 individuals, as
well as corporations, estates and
trusts.
Every person whose income is
earned in the District—minors and
aliens, as well as non-residents and
members of Congress—would be re
quired to pay the tax. The only ex
ceptions would be the President and
members of the Federal judiciary, who
are exempted from taxation by the
Constitution.
Graduated Rate Scale.
| The proposed bill provides for a
j graduated scale of taxation rates sim
ilar to that in the Collins’ income tax
bill. Exemptions for single persons or
1 man and wife not living together
would be $1,000. Married persons
living together would receive an ex
exption of $2,500. A $400 exemption
would be allowed for each dependant.
The tax rate would be as follows:
Two per cent on the first $1,000 above
exemptions. 3 per cent on the next
$2,000. 4 per cent on the next $2,000,
5 per cent on the next $2,000, 6 per
cent on the next $2,000 and 7 per cent
on the entire balance.
Another feature of the Collins in
come tax bill embodied in the pro
posed measure would give credit to
non-residents for income taxes paid
in their respective States. For in
stance, if a resident of Virginia, who
(See TAXES, Page A-3.)
ACTRESS’ FATHER DIES
Wilhelm Henie, 65, Parent of
Sonja Henie, 111 a Week.
HOLLYWOOD, Calif.. May 10 (/P).
—Wilhelm Henie, 65, father of Sonja
Henie, screen actress and former
world champion skater, died at a hos
pital late yesterday of a blood clot
on the lung.
He had been ill a week. At his
bedside were his wife, the actress, and
her friend, Tyrone Power, screen
actor. Henie, a native of Norway,
recently had filed his first citizenship
papers here.
Woman, Two Babies and Girl
End 2,000-Mile Hitch-Hike
Ey the Associated Press.
CLEVELAND, May 10 —Mr*. Elisa
beth Calarco, 23, rested today at police
headquarters after, she said, complet
ing a 2,000-mile hitch-hike from
Silver City, N. Mex„ with her two
babies and a 16-year-old companion.
The two children—Marie Antoinette,
2, and John William, 7 months—and
Joyce Shelt of Silver City, were placed
in a detention home when Mrs.
Calarco applied to police upon being
refused aid, aha Mid, by a Cleveland
aunt.
n» pm* naothar awte the lb
I
day journey, she said, after Cleveland
officers arrested her husband Alex in
connection with the hijacking of a
merchandise truck here April 15.
Calarco arrived by train in custody.
Mrs. Calarco said the journey cost
only $4.75. She said she started with
$3.75, men engaged in a dice game at
Forth Worth, Tex., contributed $1.75
as the travelers passed and a motorist
added $1. On reaching Cleveland,
Mrs. Calarco’s purse contained $1.75.
"We brought food that lasted long,”
she said. “Bread and peanut butter
sandwiches served us for meals. I had
a thermos fr~ the babies' milk.”
PLANT GRANTS OF
P.WJUREUPHELD
Private Concerns Are Denied
Right to Question Funds
to Cities.
COURT FAILS TO SEE
ANY INFRINGEMENT
Ruling Made in Suits of Alabama
and Iowa City Companies
on Appeal.
BACKGROUND—
Program of administration to es
tablish •■yardstick" rates by financ
ing municipal power plants has
been challenged by power com
panies in well over SO injunction
suits, most of them brought here.
Two decisions by United States Cir
cuit Courts of Appeals have been
favorable to the Government. The
Duke Power Co. case, the sole one
to date to reach the Supreme Court,
was remanded for retrial without
a ruling on its merits.
BY WILLIAM S. TARVER.
The right of private power com
panies to question the constitutionality
of financing by the Federal Govern
ment of construction of municipal
electric systems was denied today bv
the United States Court of Appeals
in a ruling involving suits by the Ala
bama Power Co. and the Iowa City
Light <fe Power Co.
Should the Supreme Court consent
to review the local court's decision, its
ruling probably will be the first final
adjudication on this question.
No Infringement Declared Shown.
Refusing to consider the constitu
tionality of the statues under which
the public works administrator has
made loans and grants to municipali
ties for power plant construction, or
the administrator's authority under
the statutes to make such allocations,
the court held that private utilities
cannot show' any infringement of lesal
or equitable rights which would give
them a standing in court.
"The plaintiffs are not in a position
to question the source from which
the municipalities may derive the
funds to construct their plants,
whether it be lawful or unlawful."
stated Associate Justice Joeiah A. Van
Orsdel, speaking for the court.
"These utilities have no exclusive
franchise to furnish electricity to
these municipalities," the court con
tinued. "It is conceded that the muni
cipalities may lawfully compete with
the plaintiffs. • • ♦ The fact that, in
furnishing the funds which will en
able the municipalities to engage in
such competition, the administrator
may have exceeded his authority, or
may have acted under an unconstitu
tional statute, does not affect the
situation. The thing that affects the
plaintiff is the competition, and that
is lawful."
Two Injunction Suits.
The court's ruling was made In two
injunction suits by the Alabama Power
Co. and one by the Iowa City Light
& Power Co. in which the concerns
sought to restrain allocation of funds
to Florence. Decatur. Sheffield. Tus
cumbia. Hartselle. Russellville and
Guntersville. Ala., and Iowa City,
Coralville and University Heights,
Iowa.
With the exception of a limited sale
of electricity by the City of Sheffield,
the plaintiff companies are the only
agencies engaged in supplying electric
light and power to the citiej and
towns named.
The “loan and grant” agreements,
under which these municipalities wish
to construct independent light and
power plants, provide for Federal aid
in the construction of the projects
by the United States purchasing
municipal bonds, secured by a pledge
iSee^POWERrPageA-3;
SAN FRANCISCO FIRE
BURNS PIER, HURTS 7
$200,000 Blaze May Smoulder for
Days, Fire Chief Says—35
Companies Called.
By the Associated Press.
SAN FRANCISCO. May 1—Seven
firemen were injured slightly today
while battling a stubborn underpier
blaze, which Chief Charles J. Brennan
said “may smoulder for days." Dense
clouds of smoke rolled along the city's
south water front.
The most seriously injured fireman
suffered a dislocated hip. Twenty-five
or thirty were treated at the scene
by ambulance crews after being nearly
overcome by smoke.
Chief Brennan said the fire was con
fined to creosoted piling under piers
50 and 50-A, leased by the State*
Steamship Co. He estimated the dam
age at $200,000. This included water
and smoke damage to cargo piled on
the piers.
Answer the four alarms were 35 com
panies, 2 ftreboats and more than 250
men.
A tug pulled the Alaska Packers' As
sociation’s freight ship, the Delarof,
to safety after its gang-plank burned
away. No other vessel was in danger.
NORTHLAND REFLOATED
Norfolk Steamer Pulled Off Mud
Bank at Port Mathias.
By the Associated* Press.
The steamer Northland of the Nor
folk & Washington Line was floated
today from the Potomac mud flats at
Point Mathias, near Morgantown,
Md.. where the ship grounded Friday
night.
The salvage ship Willett and the
barge Commander, operated by the
Merritt-Chapman it Scott Co, as
sisted In floating the Northland, which
got off at 6 am.
I