Evening star. [volume], May 16, 1937, Image 1

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

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WEATHER. ----
(V. 8. Weather Bureau Forecast.)
Increasing cloudiness, followed by light , Full Associated PreSS
showers tonight or tomorrow; not much , TTT.
change in temperature; gentle, shifting IN6WS and WirephotOS
winds. Temperatures—Highest, 68, at 4 Qllr,J0,. ,
p.m. yesterday; lowest, 54, at 5.30 a.m. bUnday MOHling and
yesterday. Pull report on Page B-4.' Every AftemOOn.
_ iA3) Means Associated Press. WITH DAILY EVENING EDITION
No. 1,6 <8 No. 33,983. wS&2£S.“ta WASHINGTON, D. C., SUNDAY MORNING. MAY 16. 1937—132 PAGES. * FIVE CENTS I TEN CENTS
—------ - —■ ■■■ ■ ' 1 " .-. - ■ ■ ■ > -IN WASHINGTON AND SUBURBS 1 PTJtPWvnrpw
coum BILL’S FOES
WELCOME BATTLE
McCarran and Wheeler Hold
Present Measure Is Sure
to Be Beaten.
COMMITTEE TO VOTE
ON MEASURE TUESDAY
Adverse Report Declared Certain.
Rnmor Justices Will Retire
Is Scouted.
BACKGROUND—
President Roosevelt’s plan for
enlargement of Supreme Court
has caused serious break in Demo
cratic ranks and the resulting fight
has delayed other legislation and
threatened to carry congressional
session to late in Summer. Pleas
for compromise were raised after
Supreme Court upheld constitu
tionality of Wagner labor relations
act. Indications have been the
Senate Judiciary Committee would
oppose plan in present form. Show
down was expected after Roose
velt’s return from vacation.
BY G. GOULD LINCOLN.
The "no compromise” challenge,
Issued by President Roosevelt on his
return to Washington yesterday, was
taken up immediately by senatorial
opponents of his bill to increase the
membership of the Supreme Court
by * maximum of six new justices.
Senator McCarran, Democrat, of
Nevada, sponsor of the most discussed
compromise—an increase in the mem
bership of the court from 9 to 11—
Issued a statement last night in which
he said there might be no compromise
offered if the President maintained
his attitude. He threatened, in effect,
to let the President's bill stand as
it is and go to a vote in the Senate.
He predicted its defeat.
Another leading opponent of the
President’s Supreme Court program,
Senator Wheeler, Democrat, of Mon
tana, long recognized as a liberal, said
that, as matters stand today, there are
49 Senators—a majority—who will
surely vote against the bill. He added
that he knew of four other Senators
who “very probably” will vote against
it.
Statement of McCarran.
Referring to the “no compromise”
statements made by Senator Robinson
of Arkansas, Democratic leader, and
Postmaster General Farley, at the
White House Friday afternoon, Sen
ator McCarran said:
"Perhaps those of us who have been
inclined to interpose compromise with
the hope that we might go on with
the legitimate business of the Congress
will now be inclined to withdraw our
proposal. This, it appears from re
ports, emanating 'from yesterday’s
White House conferences, would be
more In keeping with the attitude of
the other side.
"We have been willing by means of
the substitute bill now pending before
the Judiciary Committee to do the
thing lawfully, whereas the admini
stration plan is unlawful and uncon
stitutional. We could, under the sub
stitute bill, enlarge the personnel of
the court by two and probably bring
Into the court representative residents
»f all circuits. The so-called Presi
dent’s bill offers no such legal change.
“If, as it appears, there is to be no
Willingness to compromise, it might be
the attitude of those who are against
the administration plan to offer no
compromise, instead to bring the is
sue to a straight-out vote, and we’ve
got them licked.”
Committee Votes Tuesday.
This week will bring the first actual
showdown on the President’s bill, when
the 18 members of the Senate Judi
ciary Committee meet Tuesday to vote
on the measure and all amendments
thereto. The bill, as it stands, is de
feated in the committee by at least
10 to 8. Some of the opponents of the
measure say that the vote against the
(See JUDICIARY, Page A-6.~)
24 HELD IN RAIDS
HEADED BY HOOVER
35 Federal Agents Aided by Po
lice in Baltimore Vice
Clean-Up.
B» the Associated Press.
BALTIMORE, May 15-Thirty-live
Federal agents, led by J. Edgar Hoover,
chief of the Federal Bureau of Inves
. tigation, arrested 24 men and women
tonight In a series of vice raids here.
With Baltimore police co-operating,
the agents swooped down without
warning on a number of alleged dis
orderly houses. They closed eight of
them and took their occupants to the
Federal Building for questioning.
The officers struck shortly before
midnight. They made their arrests
on warrants issued by United States
Commissioner James J. Cullen.
The raids followed an extensive in
vestigation into the white slave traffic
here. Hoover said the agents partici
pating were gathered from various
parts of the East.
District Attorney J. Bernard Flynn
and his assistant, T. Barton Harring
ton, joined the officers in the raids.
The names of those arrested were
withheld pending further investi
gation.
“The raids In Baltimore are part
at the Department of Justice’s coun
try-wide investigation of the white
flat* traffic,” Hoover said.
“Other raids have been conducted
recently in Connecticut, New York.
Miami and other cities in Florida.
"I cannot reveal the other centers
which will receive our attention, for
the obvious reason that such a reve
lation would defeat the purposes of
the campaign.”
...
Radio Programs, Page F-3.
Of lute Index, Page A-Z.
^ i
-7' -—■
Is Jordon Guilty?
Star Reporter Tells How He Found ”,Incidental”
Which Led to Stay of Execution.
The following article by Mr. Love, a Star reporter, is not written
as a plea for Thomas Jordon, convicted and sentenced to death for
murder. Mr. Love does npt contend that Jordon is innocent.' He
writes to give some of the developments which led to the President’s
stay of execution for Jordon—developments in which Love’s interest
in the case led him to take part—arid as a resume of some factors,
now under investigation by the Department of Justice, which will be
weighed in the final decision regarding Jordon's fate.
BY PHILIP H. LOVE.
THIS is the true story—told in print for the first time—of how my
discovery of a six-year-old police ‘'incidental" helped to win a 30-day
stay of execution from President Roosevelt for Thomas Jordon, con
demned to die in the electric chair for the hold-up murder of Mrs.
Lizzie S. Jaynes.
I covered the first story of the Jaynes shooting. My interest in the case
was revived several months ago when Jordon, through his attorney, Harry T.
Whelan, asked me to visit him in the District jail.
j Philip Lot*.
He sent jor me, he explained, be
cause I had interviewed him on two
previous occasions, and he felt that
he had been given “a square deal.”
Although he insisted that he was
innocent of the first degree murder
charge on which he had been con
victed by a jury in District Court on
March 27, 1936, I remained uncon
vinced—and told him so.
"I don't blame you for not be
lieving me,” Jordon said. ‘‘I sort of
expected you to think I was just
poppin' off because—well, because
of the chair.
"I know I'm going to have to bum,
and I guess there’s nothing much
that anybody can do to stop it now.
Thomm Jordon.
just tne same, I can t help feeling that there are a lot of things about my case
that haven't been investigated as thoroughly as they should have been. And
that's one of the reasons why I sent for you. You’re the guy that dug up
most of that third-degree stuff for The Star back in 1931, and—well, I
figured you might be willing to do a little digging on this,”
(See JORDON, Page A-4.)
Supreme Court Members
Confer in Preparation
for Session.
BACKGROUND—
The social security program and
the holding company act of 19ib—
integral features of the permanent
reform program of the Roosevelt
administration—have been sub
jected to court attacks in many
jurisdictions. Forty-three States
and the District have unemploy
ment compensation insurance laws
and 26.610.000 employes and 2,700,
000 employers are paying old-age
benefit assessments.
Bj the Associated Press.
The Supreme Court met in secret
conference yesterday to prepare for a
session tomorrow which may produce
an epochal opinion on constitution
ality of the administration’s social se
curity legislation, the major contro
versy among the 28 cases awaiting
decision before the justices adjourn
for the Summer early next month.
The Electric Bond & Share Co. and
26 utility subsidiaries meanwhile
threw into the lap of the court the
fight over another top-ranking Roose
velt administration, law—the 19' act
regulating public utility holding com
panies. The utilities asked the court
to review a decision by Judge Julian
W. Mack of -the New York Federal
District Court requiring that they
comply with the law by registering
with the Securities and Exchange
Commission for regulatory purposes.
If the' court agrees to review the
controversy, arguments probably will
be heard next October, followed by a
final decision a few weeks later. The
litigants sought a Supreme Court re
view without waiting for the cus
tomary ruling by the Circuit Court
of Appeals. Litigants sometimes are
permitted to skip a Circuit Court, if
the controversy is considered to be" of
outstanding public Importance.
Utility Companies’ Contention.
In their petition the utility com
panies said that “from the standpoint
of the public interest, the urgency
and importance of a prompt and final
determination by this court of the
question presented in this case can
not be exaggerated.”
Through Attorneys Thomas D.
Thacher and John F. MacLane they
argued that the "sole purpose and
effect" of the registration requirement
“is to prohibit the use of the mails
and the facilities of interstate com
merce unless the holding company by
registration submits to an unconsti
tutional regulation of its affairs.”
Government attorneys have sought
to delay prosecution of other litiga
tion involving the act until a final
decision could be obtained on the
Electric Bond & Share case. They
have picked this litigation as a test
Social Security Issue*.
At stake in the social security liti
gation are:'
1. Constitutionality of the old-age
pension provisions of the Federal act
under which employers and c nployes
are taxed to provide benefit for the
workers when they reach 65. A total
of 26,610,000 employes and 2,700,000
employers are paying the assessment.
George P. Davis of Waltham, Mass.,
challenged the pension system In a
suit to prevent the Edison Electric
Illuminating Co. of Boston, of which
he is a stockholder, from paying the
levy. The Circuit Court at Boston
held the legislation unconstitutional.
2. The unemployment insurance
provisions of the Federal, act under
which employers of eight or more
persons are taxed to provide bene
fits for the Jobless. They may de
duct 90 per cent of the assessment
provided it is paid into a State un
employment compensation fund ap
proved by the Federal Social Security
Board.
This part of the act was attacked
by the Charles C. Steward Machine
Co. of Alabama. The Circuit Court
at New Orleans upheld the legisla
tion.
3. Constitutionality of laws passed
by 43 Statee and for the District of
Columbia to provide unemployment
compensation in line with the pur
pose of the Federal measure. These
States protect 16,530,000 workers. .
* J
C. 1.0. GIVES STEEL
IEN DAYSTO SIGN
“Inevitable” Strikes Hinted
by Murray Unless Speedy
Agreements Reached.
BACKGROUND—
While schism constantly widens
between A. F. of L. and C. 1. O.
factions in labor's ranks, C. I. O.
has blazed ahead in enrolling thou
sands in various unions, banking
for support on labor relations act,
which guarantees to workers the
right to organize for collective
bargaining.
Ultimate result of craft-industry
war between tabor leaders reaches
beyond men themselves to princi
ples involved.
Bt the Associated Press.
PITTSBURGH, May 15—Philip
Murray, delegated the power to force
signed contract* with five big inde
pendent steel corporations, hinted to
night' a strike call might be - issued
“within 10 days” unless agreements
were reached.
“We are handling each case as
separate and distinct problems, but I
would say that a very definite an
nouncement will be made in each case
within 10 days,” asserted the soft
spoken chairman of the Steel Workers’
Organizing Committee, a unit of the
John L. Lewis Committee for Indus
trial Organization.
“If the companies persist in refusing
to sign labor contracts strikes are in
evitable,” he added.
Murray was referring to the Bethle
hem, Republic, Youngstown Sheet and
Tube, Inland and Crucible Steel
Corp6„ who employ almost 200,000
workers.
Three Refuse te Sign.
The first three concerns definitely
have declined to sign the contracts
calling for exclusive bargaining agency
powers for their workers as demanded
by Murray.
Murray said the first crisis would
likely develop next Tuesday when A. P.
Hofnagle, chairman of Crucible Steel,
meets with him here. Lodge presi
dents of this concern’s union locals
will be present “so that we can speedily
transmit our orders after this confer
ence,” said Murray.
Another conference has been sched
uled for Tuesday, May 25, with the
chairman of the Inland Steel Corp. in
Chicago. Lodge presidents also will
be present, ready to transmit other
orders should this meeting fail to
bring a signature, the union chieftain
said.
Between these two meetings will be
held the Government - supervised
election at Jones & Laughlin Steel
Corp. plants to determine whether
the union will be the exclusive bar
gaining agent of the men.
Murray’s statements came after an
all-day conference of more than SO
heads of union locals and sub-re
gional directors in the districts of the
Youngstown, Sheet & Tube. Repub
lic, Inland and Crucible mills.
Claim Clew Majorities.
These delegates made their reports
of progress, which Murray said were
"highly satisfactory and indicated
we have a majority membership in
every plant.” Then they voted him
the power to call a strike or employ
“any other strategy” he felt neces
sary to achieve the desired written
contracts.
Murray said no sudden strike call
was contemplated, but that he would
not commit himself to public an
nouncements on his plans.
The union chieftain mobilised the
attack 24 hours after he had ob
tained what he called a "complete
victory” in settling the strike in
volving 27,000 workers at the Jones
<fe Laughlin Steel Corp. plants in
Pittsburgh and Allquippa, Pa.
ELECTION ON C. L O. CALLED.
Br the Associated Press.
Charles Pahy, general counsel of
the National Labor Relations Board,
announced last night that the board
had called an election for next Thurs
day to determine whether the Com
mittee on Industrial Organisation is
to be the exclusive bargaining agent of
employes of the Jonas and Laughlin
8teel Com.
I
WEAKNESS IS WON
BY WAR ADMIRAL
IN STRETCHBATTLE
45,000 See Riddle Entry
Fight Off Pompoon to
Score by Head.
TIME FIFTH OF SECOND
SLOWER THAN RECORD
Victor Pays Mutuel of Only $2.70.
Flying Scot Third—Matey
Far Back.
BY ORLO ROBERTSON,
Associated Press Sports Writer.
BALTIMORE, May 15.—Refusing to
give an inch in the last 3/16 of a
mile, Samuel Riddle’s War Admiral
strengthened his claim to the 3-year
old turf title today as he thrust back
the game stretch challenge of J. H.
Louchheim’s Pompoon in the $50,
000 Preakness.
With between 40,000 and 45.000
spectators on their feet, yelling madly,
the two horses came to the finish
line of the 1 3/16-mile test separated
by the narrow margin of a head to
furnish one of the most exciting
climaxes in the 47 years of the Pimlico
classic and duplicate their order of
finish in the Kentucky Derby.
War Admiral, diminutive son of
Man O' War, had no such an easy
time as he did in the Derby, in which
he beat Pompoon by a length and a
half. Today he was driving all
through the stretch, but proved him
self a true champion by running
the distance In 1.58 2/5.
Nearly Breaks Record.
The track was still a trifle slow
from yesterday's rains, but the time
was only fifth of a second slower
than the Preakness record hung up
by High Quest three years ago.
The Judges flashed the “photo fin
ish” sign as the two horses hit the
finish line, but it was evident that
War Admiral's head was in front.
The margin was so small, however,
that many, viewing the race from a
difficult angle, had to wait until the
picture was developed before their
hopes were confirmed. Then the
yells that had cheered the Man O'
War colt all around the course swelled
into a mighty roar.
The greater part of the $230,981
which passed through the mutuels on
the race went to the support of War
Admiral. As a result, he was the
shortest priced winner in the history
of the "Old Hilltop” stake.
winner Fays only jz.ts.
A $2 win ticket on the Admiral re
turned only *2.70. He paid (2.30 to
place and *2.40 to show. As the sec
ond choice, Pompoon returned *2.40
and *2.70 to place and show, respec
tively. Flying Scot, one of the out
siders in the wagering that favored
little but the first two horses, paid
2 to 1 to show.
Riddle, 76-year-old Philadelphian,
who was unable to see his colt win
the Derby because of illness, but was
present today, fared much better, how
ever. The victory netted him *45,600
and ran War Admiral's earnings for
the year to *106,600.
The victory sent War Admiral into
the select circle of thoroughbreds
which have won both the Preakness
and Derby, the first two events on
America's “triple crown’’ that also
includes the Belmont stakes. The
five previous double winners were Sir
Barton, Gallant Fox, Burgoo King,
Omaha and Bold Venture. War
Admiral's next engagement will be in
the Belmont, June 5.
War Admiral Breaks Fast.
After delaying the start for nearly
four minutes, as he did in the Derby,
War Admiral broke fast. He had to
yield pace-setting honors for the first
few yards to John Hay Whitney's
Flying Scot, but passing the judges’
stand the first time, Charley Kurt
singer, Louisville's "Flying Dutch
man," had the favorite winging along
in front.
At the end of the first quarter of
(Continued on Page B-6, Column 1.)
(I FOUND COURT CHANgA
V SENTIMENT LIKE THIS )
X^INJTHE, GU LF!
'WELUTX
LOOKS MORE 1
LIKE THIS IH \
WASHlHGTotf
CHIEF! 7
._THAT FISH STORY!
Raid Occurs as Largo Ca
ballero Speeds Formation
of Cabinet.
BACKGROUND—
Spanish elections in February,
1936, brought into office a Popular
Front government, composed of
coalition of Leftist parties. Fascist
opposition became violent with out
break of civil war last July.
Subsequent changes in govern
ment brought five different cabinets
to power. Last reform teas effected
in November, when representation
was given Communists and Anar
cho-Syndicalists. Catalonian branch
of latter faction recently revolted
in Barcelona.
By the Associated Press.
VALENCIA. Spain. May 15.—More
than 30 persons were killed here to
night and SO injured in an insurgent
air raid as Premier Francisco Largo
Caballero moved swiftly toward for
mation of his third cabinet of the civil
war.
The raid, described as the most
disastrous Valencia has experienced in
the conflict, damaged the British Em
bassy and destroyed a number of
buildings.
A fleet of raiders roared out from
over the sea at dusk. Thousands of
persons caught in the streets unawares
raced for shelter.
One bomb, which struck in front
of the British Embassy, critically
wounded the Embassy's Spanish cook
and slightly injured a doorman.
Almost every window in the building
was shattered and furniture in the
front rooms was wrecked as the ex
plosion shook the building.
Car Passengers Hurt.
Several passengers in a passing
street car were injured and taken into
the embassy for flrst-ald treatment
as the vehicle’s windows were smashed.
One bomb fell in front of the
ministry of marine.
Largo Caballero, appointed to form
a new "win the war” government after
presenting his ministry’s resignation
in the morning, conferred far into the
night with party leaders and then de
clared:
‘‘Everything is going perfectly. I
expect the syndical organisations and
political parties to finish their work
tonight. Tomorrow they will submit
(See SPAIN, Page A-4.)
Minister to Norway Sworn in
And Given Diplomacy Lesson
1 I -_
Mrs. Harriman Speaks
Prematurely of Trade
Negotiations.
By tile Associated Press.
Hardly five minutes after she had
been sworn In yesterday as Minister
to Norway, Mrs. J. Borden Harriman,
New York and Washington society
woman, received her first lesson, in
practical diplomacy.
At the expense of much discom
fiture on the part of a State Depart
ment official, she learned that an
initial rule for diplomats is to be non
committal.
Mrs. Harriman inadvertently dis
closed to news men that the State
Department is discussing with the
Norwegian government the negotia
tion of a reciprocal trade treaty. This
was something the correspondents
were not supposed to know at this
stage of the proceedings.
Mrs. Harriman, recently appointed
Minister to Norway by President
Roosevelt, took the oath of office at
the State Department at noon. Im
mediately afterward she received
newspaper men.
Michael J. McDermott, the depart
ment's press contact man, stood at
her side.
One of the interviewers asked if
she expected to negotiate a trade
agreement with Norway.
“Oh, that’s already being done,”
she said.
McDermott cleared his thro, t nerv
ously. •
"There's been no official announce
ment about that yet, Madam Minis
ter," he reminded her diplomatically.
“Oh, but I thought everybody knew
that," the envoy said. Presumably
MRS. J. BORDEN HARRIMAN.
—Underwood Photo.
she still was unaware then of the
enormity of her indiscretion.
‘‘I am vastly interested in Norway,”
she went on, “and I hope to carry on
the great work done there by my
predecessor-”
McDermott was determined, how
ever, to clear up the trade agreement
situation. He interrupted:
“We have only been exploring the
matter thus far. It is not quite cor
rect to say that the negotiations are
in progress.”
“Oh,” said Mrs.
Basque Evacuation
Of 500 Children to
America Is Planned
Br the Associated Press.
PARIS. May 15.—The Basque
mission in Paris announced to
night 500 children will be evacu
ated from Bilbao, Basque capital,
to the United States.
The children will be trans
ported, the Basques said, under
direction of an American organi
zation called Guardians for
Basque Children. How or when
they will be sent to America was
undecided, the mission said.
DIRIGIBLE PROBERS
FIND ACE WITNESS
Man on Duty in Hindenburg
Stern Expected to Throw
Light on Blast.
/Picture on Page A-7.)
Bt the Associated Press.
LAKEHURST, N. J.. May 15—The
investigator* of the Hindenburg dis
aster unexpectedly discovered today
a man who could tell them what he
saw happen in the dirigible’s stem
when it was tom with a flaming ex
plosion.
Considered one of the most im
portant crew survivors yet found,
Hans Freund, a rigging officer, told
the Commerce Department Investigat
ing Board and its staff of American
and German advisors that he was on
duty in the ship's tail at the time and
near the spot where disaster struck
so suddenly.
imira u kouiidc vt lines*.
Freund had been called as another
routine crew survivor witness so that
he might sail for his German home
tonight with 20 other comrades who
have told their stories. His apparent
knowledge of the moment of disaster
so impressed the investigators, how
ever, that he was suddenly with
drawn from the stand and his thor
ough examination deferred until Mon
day.
While today's brief hearing was
in progress, the loss of life from the
airliner tragedy of May 6 increased
to 36. A German passenger on the
last flight, Otto Ernst, 78, a Ham
burg cotton importer, died this morn
ing at Paul Kimball Hospital, in
nearby Lakewood, from burns and in
juries he suffered in the crash. His
wife, less seriously hurt, remained
in the same hospital. The condition
of two other survivors in a Point
Pleasant Hospital has not been con
sidered favorable since the wreck.
Landing Rope Fouled.
Freund had little chance to gef
launched on his story before he was
withdrawn.. He did reveal, however,
that a manila landing rope was mo
mentarily fouled by two flns of the
ship during landing operations.
In postponing his detailed testi
mony, the Department of Commerce
Board members, obviously impressed,
said they wished to consult with the
German and American experts so
as to prepare for a more exhaustive
questioning Monday.
Dr. Hugo Eckener, head of the Zep
pelin Corp , was invited to let the
board have his questions before his
departure for a week end in New
York, where he and his colleagues
of the official German Ihvestigating
Mission plan to talk with Capt. Max
Pruss, skipper of the Hindenburg, and
other injured survivors.
THREE FISHERMEN DIE
IN DELAWARE BAY GALE
Bodies of Two, in Party of Three
Aboard Small Boat, Are Re
covered by Tug.
Bj the Associated Press.
DOVER, Del., May 15.—Three
Olenolden, Pa., fishermen, who had
ventured out into the wind-swept
Delaware Bay in a small boat, drowned
today. Bodies of two were recovered.
The victims were believed to be
Charles WychofI, 47; his son Edward,
15, and his son-in-law, Robert Aielo,
24, all of Olenolden.
The crew of a fishing tug reported
sighting the boat, equipped with an
outboard motor, apparently in trouble
about 4 miles off shore, before noon.
Another fishing tug lhter came upon
two bodies, identified as those of
Wycboff and his soti.
FLEXIBLE TARIFF
Program to Eliminate Bene
fit Payments Discussed
by Officials.
BACKGROUND—
Since Supreme Court outlawed
agricultural adjustment act in
January. 1935, President Roosevelt
has sought permanent farm policy.
First expedient was soil conserva
tion law. Second was crop in
surance. The first was unsatisfac
tory, and meanwhile new problems
arose of too swift commodity price
rise. Last week President an
nounced he wanted these prices
stabilized. Present movement seeks
that end.
With President Roosevelt's aim of
eliminating wide price swings for
basic agricultural commodities in
mind, the drafters of the adminis
tration’s new farm bill are giving
serious consideration to a flexible
tariff provision.
Farm leaders met yesterday with
^riculture Department officials to
discuss a new program' which the
former expect will be offered to Con
gress next week. The program will
eliminate benefit payments if it oper
ates as expected.
Secretary Wallace, H. R. Tolley,
A. A. A. chief, and other administra
tion officers met with Edward S.
O'Neal, president of the American
Farm Bureau Federation, and other
farm organization representatives for
several hours.
Broadly, the new farm bill designed
to meet the President's wishes would
stabilize prices of wheat, cotton, meats
and other basic agricultural products
through tariff manipulation, a Gov
ernment-financed storage system and
a modified form of acreage control.
Would Establish Parity Level.
The first step would be. it was
learned yesterday, to establish a parity
level of prices for the various agricul
tural commodities, that is, a level
that would equate the prices received
by the farmer with the prices of
goods that enter into his cost of liv
ing. When the prices of farm prod
ucts rise above the parity level the
bars to importation would be let down
by lowering the tariff, and when prices
of farm products drop below parity
level the barrier against foreign prod
ucts would be heightened by increas
ing the tariff.
Variations in domestic output of
farm products, the other factor which
influences farm prices, the President s
advisers plan to regulate by putting
into effect the ever-normal granary
scheme of Secretary Wallace. This
would be accomplished by Government
financing of carryovers and acreage
control. •
Whenever the domestic and world
carryover is excessive, the American
farmer would store a portion of his
crop in Government warehouses, ob
taining a cash advance against his
crop carryover. As a condition the
Government would require the farmer
receiving such an advance to curtail
acreage production the following year.
In the next lean year, the Government
would release the Impounded com
modities and lift the restriction on
acreage production.
The President discussed in broad
outline the proposed plan to stabilize
commodity prices within limits during
his recent fishing trip in the Gulf of
Mexico. He said he talked it over
with cattle men, cotton growers and
citrus fruit growers.
Runaway Prices Harmful
All these producers, It was learned,
agreed with the President that run
away price rises in farm commodities
were as harmful as depressed prices.
The cattle men, it was said, told him
that they were as strongly opposed to
the sharp upward swings in prices
brought about by speculators as he
was. Too sharp an Increase, they said,
shut off demand and brought growers
as much grief as when the price of
cattle dropped below the cost of
production.
The President was told, according
to his associates, that the producers
of the basic agricultural commodities
favored any control plan that would
keep prices at a relatively constant
level. Farmers, he was told, did not
want excessive profits one. season and
losses the next. What they did want
was a reasonable assured profit.
Speculation in farm commodities,
the President believes, is possible now
only because the supply is uncon
trolled.
“NUISANCE" TAXES
LIKELY TO OBTAIN
YEAR’SJXTENSION
Retention of Levies, Despite
Admission of Inequities,
Is Forecast.
APPROXIMATE RETURN
PUT AT $400,000,000
Attempt to Revise Major Assess*
ments Applied to Capital Gains
Held Doubtful.
BACKGROUND—
Taxes in the United States have
developed in "topsy-like" fashion
without pattern or clear jurisdic
tion for Federal, State or local
levies.
Result has been overlapping in
many fields with consequent bad
effects on revenue-raising qualities
of tax.
Because of political dangers in
herent in any effort to tax voters.
Congress frequently has dodged
issue of genuine overhauling of
structure and proceeded on "crazy
quilt" system. At present time
urgent need of revenue complicates
any effort to change system.
BY JOHN C. HENRY.
Despite admissions of Inequities
and complaints about administrative
difficulties and collection costs, ad
ministration leaders on Capitol Hill
within the next few weeks hope to
slip through another blanket exten
sion of approximately a score of so
called nuisance taxes that are bring
ing in about *400,000,000 yearly. In
this Instance, the extension probably
will be for one year only.
Unless the White House so decrees,
however, there will be no effort made
during the present session to revisa
or modify such major taxing pro
visions as are now applied to capital
gains and to undistributed corpora
tion surpluses. Here again the evi
dent intentions are in contrast to past
admissions by party leaders at the
Capitol that some revisions probably
are desirable.
Attitude toward the nuisance taxes,
in fact, is strangely reminiscent of
that in 1935 when the levies last were
extended with a minimum of de
bate but with expressions of assurance
that by the expiration date this year
there would have been on overhauling
| of the tax structure and no further
; need of most of the excises involved.
statement of Harrison.
This attitude was still being ex
pressed by administration spokesmen
as late as last December when Chair
man Harrison of the Senate Finance
Committee declared “we are studying
the situation with a view to eliminat
ing (some) of the miscellaneous
and nuisance taxes."
And last August, after a conference
between the President, Secretary of
Treasury Morgenthau and Capitol
leaders, a Treasury Department state
ment was released to the effect that
the time had arrived "to consider re
vision of the tax laws, with the pur
pose of removing any inequities or
unnecessary administrative difficul
ties."
The conferees even hinted to inter
viewers that taxes might be "slightly
reduced” during the coming session,
If any such plans for revisions or
reduction are contemplated in the
face of disappointing revenues and
the legislative jam precipitated by the
court reform proposal, they appar
ently are not known to Chairman
Doughton of the 'House Ways and
Means Committee, who comments
briefly and somewhat significantly
that “there wrill be no general tax
legislation this year as far as I know.”
As chairman of the taxing com
mittee of the House, where revenue
legislation must originate, Doughton
presumably should know more than
anybody else on Capitol Hill what is
planned in that respect.
Sees Extension Likely.
"We’ll extend the nuisance taxes,
probably by resolution," he adds.
The “nuisance” taxes expiring in
June and July, together with thier
returns for the full fiscal year of
1936, follow:
Tax on cameras, $577,926; chewing
gum, $807,279; sporting goods, $5,531,
123; toilet preparations, $13,301,795;
furs, $3,321,057; matches, $6,885,811;
mechanical refrigeration $7,939,064;
radio and phonograph records, $5,075.
(See TAXES, Page A-8~) '
INTERBOROUGH VOTE
BIG C. 1.0. VICTORY
Rapid Transit Workers Who
Broke With A. F. L. 92 Per
Cent Behind Lewis.
Br the Associated Press.
NEW YORK. May 15 —The Com
mittee for Industrial Organization,
which only recently Invaded New
York’s transportation field, tonight
scored an overwhelming victory in a
collective bargaining referendum
among employes of the Interborough
Rapid Transit Co., largest subway and
elevated system in the city.
The final count of the balloting
gave the Transport Workers’ Union,
which last week broke away from the
American Federation of Labor to cast
its lot with John L. Lewis’ C. I. O.,
10,638 Votes out of 11,585 cast, or 93
per cent.
This development followed the set
tlement of a strike of 800 attendants
in some 200 Manhattan gasoline sta
tions and an agreement whereby the
National Maritime Union, insurgent
faction of the International Sea
men’s Union, won recognition from a
coastwise shipping line.
Walter J. Burke, president of the
Gasoline Attendants' Union. Local
20,406, an American Federation of
Labor affiliate, announced at 9 o’clock
tonight the signing of contracts giving
the strikers a “complete, 100 per cent
victory.”