Evening star. [volume], June 01, 1937, Image 1

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

Image provided by: Library of Congress, Washington, DC

                
WEATHER. -
<U. 8 Weather Bureau rorecast.)
Local thundershowers this afternoon or y$> *3,
early tonight; not quite so warm tonight; * ’ iil6 Ollly evening, paper
tomorrow, fair and slightly cooler; gentle .1 • in Washington with the
to moderate winds. Temperatures—High- Adcnni Jitorl Proca Motvc
est, 88, at 2 p.m. today; lowest, 68, at 6 ASSOCiateu x reSS INe\\S
a m. today. Full report on page A-16. and WirephotO Services.
Closing N.Y. Markets—Sales—Page 18_- __ Yesterday’s Ci.eulatioa, 124,023
^ ■ 1 ' ' ..■■ - ■ . — <8ome returns not yet received.;
S5th YEAB. Ko. 33,999. WASHINGTON, D. C„ TUESDAY, JUSE 1, 1037-FIFTY PAGES. .. TW0 CENTS. '
HULL SUMMONS ENVOYS
OF SPAIN AND GERMANY
ASKING PEACE EFFORTS
Expresses Hope
for Friendly
Accord.
U. S. POLICY
IS EXPLAINED
7isli Brands Diice
and Hitler as
Two Madmen.
f the Associated Press.
Secretary of State Hull had ex
•essed to both the German and Span
i Ambassadors in Washington this
overnment's earnest hope that their
itions will be able to adjust amicably
eir differences in the Spanish civil
•ife.
Invoking the good offices of this
ivemment in an attempt to ward off
serious crisis in Europe as a result
the German bombardment yester
y of the Spanish government port of
mcria. Hull conveyed his message in
rsonal conversations with both en
ys.
He first summoned German Ambas
lor Hans Dieckhoff to the privacy
his apartment yesterday and told
:■ envoy informally of this Govern
ors urgent hope for a peaceful
tlement of the Almeria incident.
I'he Spanish Ambassador, Fernando
los Rios, called at the State De
rtment today to express to the
tret ary his government's emphatic
Jtest over what he termed Ger
ny's violation of the non-interven
n agreement and of international
v in firing on Almeria.
In reply, Hull repeated to him vir
ally the same message he conveyed
sterday to Dieckhoff.
Procedure Unusual.
Elaborating at his press conference
his discussions with the two en
vs, which were of a character most
usual in diplomatic procedure, Hull
d he called their attention to the
:t the United States constantly
caches and urges maintenance of
see by all governments.
He added that when exceptional
nditions arise in any part of the
irld. the United States, while pre
rving it own separate and independ
t course, never neglects an oppor
nltv to urge on each government
ncerned alike its earnest hope that
ose involved may find a way for
aceable adjustment of their aifter
ices.
Meanwhile, the ranking Republican
the House Foreign Affairs Com
ittee, Representative Fish of New
irk, said the Spanish attack on the
irman battleship Deutschland was
jstifiable” and the German bom
rdment in reprisal against Almeria,
ain, was "an outrage against hu
inity.”
'Whom the gods would destroy they
st make mad,” he said in a state
nt. "Mussolini and Hitler appar
:ly are madmen who would not
sitate to start another world war
d bring on the senseless slaughter
millions of peaceful people for
?ir own aggrandizement."
Reveals Official Anxiety.
lull's unusual action showed the
<iety felt by high officials here over !
International crisis precipitated i
the Almeria bombardment. He
ed only after studying at length
rial reports from abroad.
Tie action became known shortly
?r Spanish Ambassador De Lo Rios
tested to the Secretary that the
rman bombardment of Almeria was
direct violation of the principles
international law.”
'ust before entering the Secretary’s
ce the Spanish envoy told newsmen
" (See EMBASSYTPage A-4.)
-•
R. WYCKOFF, DEAN
F NEW YORK U., DIES
tdical College Head, 55, Is
Found Unconscious—Police
Refuse Details.
the Associated Press.
VEW YORK, June 1.—Dr. John
?ckoff, 55-year-old dean of the New
rk University and Bellevue Hospital
tdical College, died early today sev
il hours after he was found uncon
ous in a laboratory.
The death was ascribed "apparent
to “coronary arterio sclerosis and
leral visceral congestion.”
Coronary arterio sclerosis is harden
f of the arteries of the heart.
\ statement giving the cause of
ith was issued by Assistant Med
1 Examiner Benjamin Morgan
nee after an autopsy.
His illness first was listed.on both
b history card at Bellevue Hospital
d on the aided card at the East
venty-second street police station
morphine poisoning, and later was
ought to be coronary thrombosis.
Thomas A. Gonzales, acting chief
edical examiner, said after the
itopsy that "Dr. Wyckoff had been
sufferer from coronary arterio sele
cts for a numer of years and he car
sd morphine on his person to alle
ate the pain of this disease.”
Dr. Gonzales said that a note had
■en found on the laboratory floor
idressed to Mrs. Wyckoff, but he de
ined to disclose its contents.
"I believe that Dr. Wyckoff felt a
ital attack coming on and took mor
hine to relieve the pain,” he said.
Dr. Wyckoff had been dean of the
fedical College since 1932 and had
een on the teaching staff since 1913.
te had served both as associate pro
;ssor and professor of medicine and
as secretary of the college from 1916
i 1932.
HANS DIECKflOFF.
FERNANDO DE LO RIOS.
Seeks to Keep Peace in Eu
rope and End Attacks
on Shipping.
BACKGROUND—
Bloody civil war. which has torn
Spain since mid-July of 1936, has
been marked by repeated charges
that Germany and Italy, both
Fascists, are aiding Gen. Franco’s
insurgents. Non-intervention accord
reached between 27 nations last De
cember has had little effect in halt
ing surge of arms and men into
Spain. Loyalist government has
made repeated protest, and recently
took to bombing ships from air.
BULLETIN*.
ROME. June 1 (/Pj.—Italian
warships have been ordered to
prevent Russian vessels from sup
plying war materials to the Span
ish government, authoritative
sources disclosed tonight.
B» the Associates Prea*.
LONDON, June 1.—Great Britain
joined Germany and Italy today in
protesting Spanish government vio
lence. against neutral shipping—ap
parently as a measure to bolster
Europe's peace.
The British stand, well-informed
sources believed, was calculated to
give reassurance to Berlin and Rome
that their demands against the Span
ish government were justified.
At the same time it was intended
to obtain safety of shipping through
the creation by the Spanish govern
ment of safety zones for neutral war
ships.
British spokesmen reiterated that
the government was not taking sides
in the controversy but was striving
only to re-form the framework of
the international “Hands Off Spain”
Committee, now weakened by Italian
and German withdrawals following
the bombing of a German pocket
battleship.
It was stated authoritatively that
Britain might face the task of pro
posing that the Non-intervention
Committee guarantee by force of arms
that the Spaniards will keep hands off
foreign shipping.
This would mean turning the non
intervention sea patrol of Spain, which
now merely reports violations of a ban
on foreign arms and men back to
member governments, into sort of an
international navy empowered to use
force to keep the Spanish war from
spreading.
This might be the only way to woo
Germany and Italy back into the fold.
Based on Hardy Attack.
The British protest was based on
an attack on the British flotilla leader,
H. M. S. Hardy, off Palma Mallorca
on May 26. The foreign office said the
ship was almost hit by aerial bombs.
The British Charge d'Affaires at
Valencia delivered the protest and
received from the Spanish govern
ment apparent assurances of Its read
iness to establish desired “safety zone"
for neutral warships off Palma.
Foreign Secretary Anthony Eden
urged foreign envoys to regard the
need for restraint in the new Spanish
European crisis.
Informed quarters quickly stated
that, while the government deplored
such attacks as the Spanish govern
ment's aerial bombing of the German
(See SPAIN, Page A-3.)
---•—
AIR SERVICE SUSPENDED
Chinese Complain of Japanese
Competition.
NANKING, China, June 1 (vP).—
The Chinese government ordered the
suspension of the Tolcio-Tientsin air
service today immediately upon inau
guration of the new air route con
necting Japan and North China.
The official order asserted the serv
ice was “outwardly a Sino-Japanese
undertaking, but in reality was Japa
nese only—with no permission to en
ter China.”
FILM CRAFT TO VOTE
HOLLYWOOD, June 1 (/P).—Mem
bers of the Federated Motion Picture
Crafts will vote tonight on whether to
end their month-old strike and return
to work, pending negotiation* for
union recognition and pay increases.
G7 HELD IN RIOTS
IN STEEL SHE
AS PROBE OPENS
Charges of Conspiracy to Be
Placed—Leaders De
mand Contract.
BACKGROUND—
While conferences are continuing
in the extensile steel strikes
neither side appears willing to make
any concessions on the underlying
issue. The strikers stand by their
insistence for a contract which
would have S. Ur. O. C. act as col
lective bargaining agent. The Re
public and other corporations refuse
to be a party to such an agreement.
The Wagner act now in being
studied as a solution of present
deadlock.
_
Bj the Associated Press.
CHICAGO, June 3.—Sixty-seven
men were held in police custody today
while investigators sought to flx re
sponsibility for the Memorial day steel
strike riot that caused the death of
five persons and injury to more than
100 others.
Police Capt. Thomas Kilroy said*the
67 participated in the bloody battle
between unionists and sympathizers
and police near the Republic Steel
Corp.’s South Chicago plant.
He said they will be charged with
conspiracy to commit an illegal act,
which carries a maximum penalty of
five years in prison and a $2,000 fine
upon conviction.
Van A. Bittner, regional director of
the Steel Workers’ Organizing Com
mittee, said after attending a five
hour conference called by Gov. Henry
Horner that:
"This strike won’t be settled until we
get a contract. These conferences
don’t amount to a damn."
The contract to which he referred
was the goal or the S. W. O. C. in
calling a strike against the far-flung
steel empire of the Inland and Re
public Steel Corps, and the Youngs
town Sheet & Tube Co. The proposed
written agreement .would permit the
S. W. O. C. to act as collective bar
gaining agent for its members.
Gov. Horner said Bittner had as
sured him strikers would be urged to
refrain from action that might lead
to a recurrence of rioting. But Bitt
ner declared he would Insist upon
maintenance of a picket line.
The unionists’ attempt to strengthen
the picket line and possibly close the i
Republic plant, and the police’s de
termination to prevent them led to a
series of clashes, climaxed by Sun
day's bloodshed.
Company Stands Firm.
Bittner said Republic's represent
atives at the Governor's conference
declared they would refuse to sign a
contract “even if a vote through the
National Labor Relations Board
showed we had a majority" of
workers’ votes. James L. Hyland, a
Republic official at the conference,
declined to comment.
Another conferee, Robert Pilking
ton, Federal conciliator, will “look up
several questions under the Wagner
act" and inform both sides when the
conference will be resumed, Gov.
Horner said.
Investigators hoped to pierce the
fog of charges and counter charges
(See STRIKES, Page A-3.)
SINKING OF SHIP
LAID TO SUBMARINE
Handful of Wounded Sailors Tell
How Sailboat Was Torn
to Pieces.
the Associated Press.
TARRAGONA, Spain, June 1.—A
handful of wounded sailors made their
way into this port today to relate that
a “large submarine" had torn their
214-ton sailboat to pieces with 20
shots off Cambrils.
One man of the crew of eight of the
ship, the Granada, was killed. The
others, all wounded, reached here by
lifeboat. The attack occurred late
Monday.
The incident followed upon the re
ported torpedoing of the Spanish
steamer City of Barcelona off Malgrat
Sunday. One report from Valencia
today said only 25 out of 312 aboard
the City of Barcelona were saved, but
other advices conflicted as to the cas
ualties and the number on the ship.
BODYOFC.F.KEENE,
WEIGHTED DOWN.
IS FOUND IN BAY;
lira CHARGED
Fishermen Discover Corpse
of Missing D. C. Man Near
Crisfield, Md.—Bullet or
Stab Wound in Throat.
BAG OF AUTO TOOLS
IS TIED AROUND NECK
Identification Made by Tag After
Remains, Floating in Chesa
peake Bay, Are Brought Ashore.
Investigation Is Resumed to
Seek Solution of Mystery.
Weighted and with a bullet or stab
wound in the throat, the body of
Charles F. Keene, Washington real
estate man. missing nearly three
weeks, was found floating in Chesa
peake Bay near Crisfield, Md., late
yesterday.
A murder verdict already has been
returned by a coroner's jury at Smith
Island acting last night after identi
fication had been established through
a key ring bearing a plate stamped
with Keene’s business address here
in the Union Trust Building. The body
had been weighted down with a satchel
containing automobile tools and a
mesh bag.
Keene and his wife, who is well
known in social circles here, had re
sided at the Fairfax Hotel, 2100 Mas
sachusetts avenue.
Maryland Tolice Take Case.
Sergt. M. D. Brubaker of the Mary
land State Police left Baltimore this
morning to take charge of the In
vestigation. The 63-year-old .Wash
ington real estate agent disappeared
from his blood-stained cabin aboard
a Norfolk-bound boat May 14.
The body was being brought from
Smiths Island, isolated fishing com
munity in Chesapeake Bav, just oppo
site the mouth of the Potomac, to
Crisfield this afternoon. There it was i
to be examined by Brubaker and |
other Maryland State investigators. I
The body was found about 6 o'clock !
yesterday by Edward Smith, a Smiths'
Island fisherman, floating on the bay
side of Smiths island and just across
the channel from the mouth of the
Potomac. It was about, at this point
that investigators believed Keene
went overboard from the steamship
District of Columbia.
Initials on Bag.
A light, zipper-closing bag, such as
professional men carry, was securely
tied about Keene's throat with cotton
rope. In the bag was a machine ham
mer an anautomobile jack wrapped in
canvas and the woman's mesh bag in
itialed "F. K. K.”
The* body was clothed in trousers
underclothing, shirt and vest, but was
coatless and barefooted.
The key ring was found in a vest
pocket and the trouser pockets had
been turned inside out, as if by rob
bers. Keene's billfold was not on his
body, nor could investigators find any
money in his vest.
The fisherman brought the body to
Smiths Island, where the inquest was
held under the direction of Justice
of the Peace A. P. Bradshaw and
Sheriff William H. Dryden of Somer
set County.
Suicide Scouted.
Mr. W. F. Stout, who made a thor
ough examination of the body, ex
pressed the opinion that Keene's wound
and the secure manner in which the
weight had been attached to his body
precluded the possibility of suicide.
When Keene's disarrayed cabin was
discovered, after the boat docked at
Norfolk, police found bloodstains in
Keene's cabin, on a hand rail outside
his window, which gave on the water,
(See KEENE7 Page ~A-4..i
f . That'll do .
All Right in ol'
Fashioned Vir&innY
But NOT in NE-W '
MUSICAL CIRCLES^
lAiamG*
Income Tax for D. C. Asked
In Face of Committee Fight
Six-Point Plan, Tapping Salaries $2,
000.000, Submitted—Constitu
tional i ty Questioned.
BY JAMES E. CHINN'.
In the face of a threatened revolt
against an income tax, the Commis
sioners today submitted to the special
tax subcommittee of the House Dis
trict Committee the final draft of a
six-point tax-raising program which
would tap the salaries of all persons
who work in Washington to the ex
tent of about $2,000,000 a year.
Along with the income tax the pro
gram included:
1. A business privilege tax with a
.three-fifths of 1 per cent levy on
grass receipts, estimated to raise
$3,000,000.
2. An inheritance and estates tax,
estimated to produce *800.000.
3. An increase in net premium in
surance receipts from 1.5 to 2 per cent,
estimated to yield an additional *200,
000.
4. Continuation of the existing tax
on intangible personal property with
proposed legislation designed to put
"teeth" in the law, under which it
is hoped to extract an additional
$1,000,000 a year.
5. A weight tax on motor vehicles,
continuing the present personal prop
iSee TAX, Page A-4.)
MISS EARHART OFF
ON 1MFLIGHT
Aviatrix Leaves Miami for
San Juan on West-to
East Hop.
BACKGROUND—
This is Amelia Earhart’s second
attempt to circle the globe. The
first flight, last March, ended in a
crash in her take-off at Honolulu
when landing gear of her plane col
lapsed. The aviatrix had completed
the first leg of her trip from Oak
land, Calif., covering a distance of
2,410 miles in record time.
BILLETIN'.
MIAMI. Fla., June 1 f/P)._
Amelia Earhart spanned 1.000 of
the 28,000 miles on her round-the
world-for-fun flight today with a
hop from Miami to San Juan,
Puerto Rico.
By the Associated Press.
MIAMI, Fla., June 1.—Amelia Ear
hart took off for San Juan, Puerto
Rico, at 5:57 am. (Eastern standard
time) today on a second attempt to
fly around the world “just for fun."
The slim aviatrix waved a bare arm
in farewell and then gunned the big,
twin-motored monoplane some 2,200
feet along the runway before she
(See EARHART,-Pale-A-3.)
Summary of Today’s Star
Page.
Amusements B-16
Comics_C-8-9
Editorials -.A-10
Finance _A-17
Lost & Found A-3
Obituary_A-12
Page.
Radio _C-4
Short Story__B-8
Society _B-3
Sports _C-l-4
Woman's Pg. B-19
FOREIGN. I
Britain joins Germany and Italy in
protest against Spain. Page A-l
North Pole-Moscow phone service is
established. Page A-7
NATIONAL.
Supreme Court agrees to review power
loan suits. Page A-l
Sixty-seven held in fatal steel strike
riots. Page A-l
White-collar workers’ union gets C. I.
O. charter. Page A-3
Momentous Supreme Court term ends
today. Page A-4
District winds up three-day Memorial
observance. Page A-5
Schwellenbach calls for flood control
measures. Page A-9
Eye specialists hear lectures at G.
W. U. Page A-13
WASHINGTON AND NEARBY.
Keene’s body, weighted down, found
in Chesapeake Bay. Page A-l
General officers of W. C. T. U. in ses
sion today. Page A-2
Three men lose lives in holiday acci
dents. Page A-2
Byrd urges Congress to keep control
over finances. Page A-2
Maj. Stevens to observe eclipse from
substratosphere. Page A-4
Minnigerode observes 45th anniver
sary with Corcoran. Page A-4
Court of Appeals holds Riggs Bank
liable for *176.039. Page B-l
Law to determine length of inch
urged. Page B-l
House favors increased White House
secretariat. Page B-l
EDITORIAL AND COMMENT.
Editorials.
This and That.
Political Mill.
Stars, Men and Atoms.
Answers to Questions.
David Lawrence.
H. R. Baukhage.
Mark Sullivan.
Jay Franklin.
Delia Pynchon.
Page A-10
Page A-10
Page A-10
Page A-10
Page A-10
Page A-ll
Page A-ll
Page A-ll
Page A-ll
Page A-ll
FINANCIAL.
Railroad bonds down
(table).
Advertising above 1936.
A. & P. earnings climb.
Stocks go down (table).
Curb list lower (table).
Oil output at new peak.
Page A-17
Page A-17
Page A-17
Page A-18
Page A-19
Page A-19
SPORTS.
Griff pitchers in fine shape for inva
sion of West. Page C-l
Hot matches dot City of Washington
net event. Page C-l
Shaw gains $30,000 setting record in
auto race. Page C-l
Police benefit boxing card presents
“hungry” fighters. Page C-2
Feller, arm still ailing, quits Indians
for rest. Page C-2
Even chance seen for Yankee Davis
Cup netmen. Page C-2
English Derby tomorrow lacks an out
standing choice. Page C-3
Putting Shute's forte in retaining P.
G. A. title. Page C-4
MISCELLANY.
City News in Brief.
Young Washington.
Shipping News.
Dorothy Dix. ,
Betsy Caswell.
Crossword Puzzle.
Bedtime Story.
Letter-Out. r"
Nature’s CMMrlHr , :
Page B-8
Page B-12
Page B-16
Page B-19
Page B-19
Page C-8
Page C-9
Page C-9
rrm* Page C-l#
END OF DEADLOCK
ON RELIEF SOUGHT
Roads Group Urged to Mod
ify Demands to Stop
Earmark Row.
BACKGROUND—
Federal Government has shoul
dered relief load throughout Roose
velt administration with usual prac
tice being to appropriate lump sum
and place at disposal of President.
This year. Chief Executive asked
for SI .500.000.000 in unmarked
funds. Sudden appearance of econ
omy bloc threatens to bring total
down to SI.000.000,000. while an
other House group wanted bulk of
fund marked for specific projects.
BULLETIN'.
Responding to administration
. pressure, the House Roads Com
mittee divided evenly today on the
issue of withdrawing its amend
ment earmarking $150,000,000 of
the $1,500,000,000 relief fund, but
authorized its chairman to nego
tiate a compromise if possible. The
vote was 7 to 7 on the withdrawal,
as compared to a unanimous vote
in favor of the amendment when
submitted last week.
Es tlie Associated Prcs3.
Breaking of the impasse over ear
marking approximately one-third of
the $1,500,000,000 relief appropriation
bill was hoped for by administration
leaders in the House today after a
holiday week end of conferences.
Scheduled to meet today, the Roads
Committee apparently held the key to
the jam. Leading the bloc which in
sisted on expenditure of highway
funds on a contract basis rather than
through the W. P. A., the committee
has been asked to modify its demands.
Leaders of the other rebellious
groups indicated they would be satis
fied with assurances that $45,000,000
and perhaps more of the relief fund
(See RELIEF, Page A-S.)
ER
G _
Supreme Court Also Agrees
to Hear Taft’s Gold Bond
Case, Then Recesses.
BY JOHN H. CLINE.
The Supreme Court, concluding
what many regard as its most momen
tous session, recessed for the Summer
today after granting reviews in two
rases that will assure decisions of na
tional importance when the justices
return in October.
In one of these cases, the court
agreed to review the validity of Gov
ernment loans from P, W. A. or emer
gency relief funds for publicly owned
power plants. The other involved a
suit by Robert A. Taft to collect $1.07
! interest on a gold Liberty bond called
by the Treasury in advance of its
maturity date. At the same time the
justices refused for the present to pass
on constitutionality of the 1935 act
regulating public utility holding com
panies.
A large crowd was on hand to wit
ness today's session, which marked
the last time Associate Justice Willis
Van Devanter will sit on the Supreme
Court bench. He retires tomorrow, to
live on his 788-acre estate near Elli
cott City, Md.
Injunction* Tie Up Loan*.
Interest of the spectators was stirred
by repeated rumors that other retire
ments would be announced. There
was no confirmation of these reports.
The justices dashed hopes of Public 1
Works Administrator Ickes for a
speedy determination of litigation in
volving municipal power loans by
agreeing to review suits brought by
the Alabama Power Co. and the Iowa
City Light <fc Power Co., contending
such loans are unconstitutional.
This action means that the high
court will hear argument in these
cases next Pall, meanwhile leaving the
P. W. A. subject to several injunctions
issued by lower courts forbidding the
loans.
Several such loans had been made
by P. W. A. authorities to municipali
ties for construction of municipally
owned power systems which would
compete with private utilities already
operating in several States.
When the Government asked the
(See COURT, Page A-4 )
-«
SHOWERS EXPECTED
TO BREAK HEAT WAVE
Temperature of 91 Due Before
Rain, and Cooler Tonight
Is Local Forecast.
Thundershowers are expected to
cool off the Capital late today or to
night, according to the Weather Bu
reau.
The forecaster predicted the mer
cury would climb to 91 degrees, how
ever, before the rain arrives.
Tonight will not be quite so warm,
but considerably humid, the forecaster
added. Weather conditions tomorrow
will be “pleasant.”
The temperature rose to 87 degrees
yesterday afternoon, but had dropped
! to 68 by 6 a.m. today.
Who Are the Evaders?
By the Associated Press.
RESIDENT ROOSEVELT'S
message detailing examples
of tax evasion raised today
in Capitol conversations the
question—Who are those charged
by the Treasury with evasion?
The message mentioned no
names blit listed the following in
stances :
1. "One American citizen with a
$3,000,000 Bahamas corporation
filed his Individual tax returns in
successive years from towns in
New Brunswick, British Columbia
and Jamaica."
2. “A retired American Army
officer with a large Income from
valuable American securities which
he desires to sell at a very large
profit, became a naturalized Cana
dian citizen, and six days later
organized four Bahamas corpora
tions to hold his securities.”
Yacut Incorporated.
3. "Two New York insurance
agents have caused the organiza
tion of insurance companies in the
Bahamas with a view to enabling
taxpayers to secure spurious de
ductions.
4. "One man's yacht is owned by
his personal holding company,
•long with $3,000,000 securities,"
5. "One wealthy man has placed
his $5,000,000 city residence in a
corporation; another hLs racing
•table whose losses last year were
nearly $200,000."
6. "One wealthy woman caused
her personal holding company,
which owns her country place, to
employ her husband at a salary to
manage it.”
$4 Trusts for Family.
7. "One thrifty taxpayer has
formed 64 trusts for the benefit of
four members of his immediate
family, and thereby claims to have
saved them over $485,000 in one
year in taxes.”
8. "Another thrifty pair have
constituted 40 trusts for relatives
and • prominent lawyer and his
wife utilize 16 trusts for the same
purpose."
•. "In one case $43,000 is an
nually appropriated by (a) corpo
ration to a pension trust for the
benefit of it« two chief owners.’’
(Details of these cases in text, of
Morgenthqu letter on page A-2.)
PRESIDENT URGES
8AR TO AVOIDANCE
SY FEW ‘VERY RICH’
IN TAX MESSAGE
Amendments to Present Law
Asked to Plug Loopholes
and Put an End to “Amaz
ing, Serious Condition.”
METHODS OF DODGING
LEVIES ARE SET FORTH
Preliminary Study by Treasury
Department Indicates "Wide
spread ’ Practice—No Names of
Tax Dodgers Mentioned in Spe
cial Message to CongTess.
I— ___
Full text of the Presidenti
message on page A-2.
BACKGROUND—
Tax returns, particularly from
Trrovisions of bill passed last year,
have been disappointing.
Last January, President esti
mated fiscal year total of S7.293,.
000.000, but Quarterly returns of last
March forced revision of estimate
downward with shortage, indicated
particularly in income tax classifi
cation.
Last week. President disclosed in
tent to legislate against tax evaders
this year,
BY G. GOULD LINCOLN".
Tax evasion and avoidance bv "a
minority of very rich individuals"
presents “another major difficulty" in
the maintenance of normal processes
of Government, including a balanced
budget. President Roosevelt told Con
gress today in a special message.
The President called on Congress to
enact legislation to stop this tax
dodging. examples of which he trans
mitted to the legislators. He incor
porated a letter from Secretary of the
Treasury Morgenthau setting forth in
detail the methods of tax avoidance
and evasion adopted by some of the
"very rich." which aiso called for
amendments to the tax law to plug
the loopholes. No names of the tax
dodgers were given.
The avoidance of taxes. Mr. Roose
velt said, results "in shifting the tax
load to the shoulders of others less
able to pay, and in mulcting the
Treasury of the Government's just
due."
‘‘Serious Condition."
A condition so serious has been de
veloping. due to tax dodging, th«
President said, that "the people ar»
entitled to information about it.” H«
based his statement on a report of a
preliminary study of income tax re
turns for the calendar rear, given him
by Secretary Morgenthau. It is the
purpose of the President and Secre
tary Mongenthau to have this study
of income tax returns made complete.
Mr. Roosevelt described the avoid
ance and evasion of tax liability as
"so widespread and so amazing, both
in their boldness and their ingenuity,
that further action without delay
seems imperative.”
The new law asked by the President
would be an emergency measure. It
is not to be confused with legislation
to revise tax schedules, the President
said.
‘‘Ip rpgard to that subject." con
tinued the Chief Executive, "I have
already suggested to the Congress that
at this session there should be no
new taxes and no changes of rates."
He has indicated, he said, that by
next November the Treasury Depart
ment will be ready to submit informa
tion on which a revision of the tax
structure may be undertaken, if Con
gress chooses.
Eight Methods Shown.
‘‘The long-term problem of tax pol
icy is wholly separate from the im
mediate problem of glaring evasion
and avoidance of existing law,” he
added. "In this immediate problem
(See TAX EVASION, Page A^5 j ~~
-•
HOUSE OVERRIDES
INSURANCE VETO
Body Befuses to Uphold Ban on
Extending Conversion Time
for Veterans.
By the Associated Press.
The House voted today to override
President Roosevelt's veto of a bill to
extend the time in which World War
veterans may renew their war risk
term insurance policies.
Chairman Rankin of the World War
Veterans’ Committee, declared fail
ure to pass the measure would force
more than 20,000 veterans to drop
their insurance.
“These men are financially unable
to convert these short-term policies
into more permanent forms of insur
ance,” he said.
The Chief Executive in a veto mes
sage Friday stated he did not believe
the extension—which would be the
fourth since the policies were Issued
during the war—was “warranted, or
ultimately will prove profitable to the
individuals concerned.”
House leaders said it was the first
time the House had voted to pass a
bill over presidential objection since
it overrode Mr. Roosevelt on the
bonus bill over a year ago.
ARCHBISHOP SHIFTED
Rochester Prelate Takes Over
New Detroit Area.
CASTEL GANDOLFO. Italy, June 1
(7P1—Archbishop Edward A. Mooney
of Rochester. N. Y„ today was named
Archbishop of Detroit, a new arch*
diocese embracing the dioceses of Mar*
quette. Grand Rapids and the new
diocese of Lansing. Mich.