WEATHER. ,f --
<U. 8. Weather Bureau Forecait.) I
Local thundershowers this afternoon or ^ V W /-v Thp nnlv pvpninrr
night; tomorrow fair, not much change I a ^ ^ I .V. eyenmg paper
In temperature; moderate winds. Tern- M ■ %.in Washington With the
. E“.rsr -• “2 pm; I I ‘ ‘ J 1 17 I Tf i Associated Press News
Fun report on page a-19. ^ ^ ■ JK* I ■ and Wirephoto Services.
_Closing N.Y. Markets—Sales—Page 18 V S J Yesterday’* Circulation, 138,192
— ' . _ 'Some returns not yet ‘received.i
85th YEAR. No. 34,016. goT^cV _WASHINGTON, D. C., FRIDAY, JUNE 18, 1937-FIFTY PAGES. *** on M..n. A„0ciated Pr,M. TWO CENTS.
TAX INQUIRY TOLD
ACTOR PAID SELF
Charles Laughton at Same
Time Gave It His U. S.
Earnings, Is Story.
OTHERS ARE NAMED
AS FORMING CONCERNS
Schick, Eazor Magnate, One of
Those Avoiding Payments,
Treasury Experts Say.
BACKGROUND—
Income tax returns oj last March
trcre below estimates, precipitated
hasty survey by Treasury Depart
ment experts. Deciding that cia
, sion devices were responsible for
much o/ loss. Department so re
ported to President, uho asked con
gressional inquiry.
Legislation to close loopholes is
expected this session, with general
tax overhauling next Winter.
B' the Associated Press.
Elmer L. Irey. Treasury tax investi
gator, told congressional investigators
today Charles Laughton, the actor,
had "effected substantial reductions"
In taxes by turning over his Hollywood
earnings to a British corporation.
A short time before the Treasury in
vestigator laid before the committee
the names of a group of prominent
capitalists who. he asserted, escaped
American taxes by forming foreign
corporations.
At the conclusion of today's hearing
the committee, in closed session, au
thorized Chairman Doughton to ask
the House Appropriations Committee
lor legislation for $50,000 for expenses.
Vice Chairman Harrison said the
Inquiry "may last a good bit."
Irey said Laughton, described as a
' British subject, set up a holding com
pany in England and contracted with
it to pay him a $20,000 salary in 1935.
At the same time, he said, Laughton
handed over to the company all his
earnings for that year from American
moving picture activities. These
totaled, he said, $190,280.
Probability of Legality Admitted.
The earnings of tl*e British com
pany, the Treasury official asserted,
vere entirely those which Laughton
obtained from the American movie
industry.
He added that the entire arrange
mcnt "may b" perfectly legal.” But
it is just another illustration, he said,
of methods used to get around Ameri
can tax laws.
Roswell Magill, Undersecretary of
the Treasury, remarked, while com
mittee members were asking about
more names, that George Westing
house, jr„ had established a corpora
« tion in the Bahamas, capitalized at
$3,000,000.
He said one* year Westinghouse
might submit a tax return from New
foundland, another year from British
Columbia and a third from Jamaica.
"There is no catching up with him,"
Magill said* adding that he could
came a dozen similar instances.
Senator Harrison asked if Westing
house could be identified.
"It's hard to identify him," Magill
replied, “'because he jumps around
like a bug.”
Irey outlined ways by which Ameri
can levies may be avoided through
forming personal holding companies
febroad.
He interlaced his testimony with
details of specific transactions, bring
ing numerous questions from commit
tee members as he listed individual
hames.
Foreign Company Organizers.
Irey said these men had formed
foreign companies:
Phillip De Ronde. associated with
several New York financial institu
tions and a participant in various
steamship financing operations.
Jules S. Bache, whom Irey de
, scribed as "a prominent New York
capitalist.”
Jacob Schick, a former Army
colonel, now a citizen of Canada.
Percy K. Hudson, a former mem
ber of the New York Stock Ex
change.
Committee members leaned forward
*s Irey brought in the name of
Echick, whom he described as a
manufacturer of electric razors.
"Col. Schick had served his coun
try with distinction, Irey said. "He
, once drew a pension as a retired Army
officer.
"In 1935 he became a Canadian
Citizen.
"As a manufacturer of electric
razors, he had a business which proved
very profitable, these profits, under
American laws, naturally were tax
able.”
In November, 1933, the witness said,
Echick formed a Bahamas corporation,
to which he assigned $129,000.
The tax on this transfer was $17,
, 337, Irey said, “but if Col. Schick had
reported his Income in a personal re
(See EVASIONrPage A-5.)
DIRECTED ACQUITTAL
FOR PARKERS REFUSED
Kidnap Plot Trial Scheduled to
0 Go to Federal Jury Next
Wednesday.
E? the Associated Press.
NEWARK. N. J., June 18 — Federal
Judge William Clark refused today to
direct the acquittal of Ellis H. Parker,
chief of Burlington County detectives,
and his son, Ellis, jr., who have been
on trial the past two months charged
W'ith conspiracy to kidnap and torture
Paul H. Wendel into his discredited
“confessions" of the Lindbergh baby
kidnaping.
The ruling cleared away the final
► legal barriers keeping the case from
going to a jury of eight women and
four men next Wednesday for a ver
dict. Counsel will sum up Tuesday.
In arguing for a directed verdict de
fense counsel contended the Govern
ment had failed to prove any of the
particulars of the indictment.
4 .
Shocked Judge Gives Woman
360 Days for Child Beating
j WILLIAM VAN NESS, JR.
—Star Staff Photo.
AYING he rould scarcely control
his own emotions, Police Court
Judge Walter J. Casey today
sentenced Mrs. Theresa Cronin.
38. to 360 days in jail on an assault
! charge growing out of the beating yes
terday of little 2'2-year-old William
; Van Ness. jr.
“This is the worst case I have ever
seen, and I have difficulty in controll
ing my own feelings,” Judge Casey
said.
The jurist also sentenced the woman
'to pay a fine of $500 or serve an addi
tional 360 days In jail.
“I find that you were entirely re
sponsible for the deplorable condition
this child is in,” Judge Cascv said. “I
am giving you the worst sentence I
have ever handed down.”
During part of the trial, the child
sat on the clerk's bench in front of
Judge Casey. One of his eyes was
black and swollen shut and welts and
bruises were scattered over his arms,
face, chest, back and legs.
The boy's mother, Mrs. Ruby Adella
! Van Ness, 36. a W. P. A. adult educa
' tion teacher, testified she came home
from work about 5 p.m. yesterday and
found her son and Mrs. Cronin miss
ing and the boy’s soiled clothing scat
tered about the bathroom.
A short while later, she said. Mrs.
Cronin and her husband. Joseph
Cronin, a Navy Yard employe, came
in with the boy staggering between
them. She rushed to him and asked,
"What’s the matter laddie?"
"Mrs. Cronin whipped laddie and
it hurt awful bad," the child answered,
Mrs. Van Ness testified.
| The mother, who is separated from
her husband, told how Mrs. Cronin
had been taking care of the boy during
the day for three months in exchange
for free rent of three rooms for her
and Mr. Cronin.
She testified the boy had been
bruised and hurt frequently during the
last three weeks and declared that on
Tuesday she found he had several
<See BEATING~Page ~ A-37)
Steel Attorney Describes
P. 0. Refusal of Delivery
in Strike.
BACKGROUND—
Charges of mail interference at
strike-torn Warren and Niles, Ohio,
prompted investigation by Senate
Post Office Committee to determine
whether whole field of strike effects
on mail deliveries should be probed.
Committee decided yesterday to
probe numerous ramifications of
strike.
BY JOHN H. CLINE.
The refusal of postal authorities to
deliver food into strike-bound Republic
Steel plants in Ohio was described to
the Senate Post Office Committee to
day by Lewis L. Guarnleri, attorney
for the steel corporation.
He took the stand after Philip Mur
ray, chairman of the Steel Workers'
Organizing Committee, had testified
the Government should use all force
necessary to insure mail deliveries.
Guamieri said he had attempted to ,
mail four packages of food into plants
in Niles and Warren, Ohio, and that
postal officials refused to deliver such
'irregular" mail.
Medicine Allowed to Pass.
He added that Bert Flaherty, as
sistant postmaster at Niles, told him a
package of medicine had been mailed
into the plant, but union officials were j
called in first and gave their permis
sion when they saw the package actu
ally contained medicine.
Later, he said, Flaherty denied hav
ing said strikers were permitted to
inspect the package. He further
quoted Flaherty as having said “food,
clothing, newspapers and the like”
could not be delivered to the plant
because the strikers “would not al
low it.” Guarnleri added that citi
zens were not permitted by pickets to
walk along the streets unless they
had a C. I. O. pass and that railroad
tracks in Niles had been dynamited
to prevent trains from going into the
plant.
He added the postmaster at Warren
told him a special delivery messenger
carrying a package of clothing into
the plant had been stopped by a picket
who took the package from him,
opened it, ahd asked him io take it
back to the post office when he dis
covered it contained clothing. When
the postmaster learned the package
had been opened, the attorney said, he
became indignant, called in two local
labor leaders and told them it was
going to be delivered because it had
been opened, Tliis was doije, he said.
Case Being Investigated.
W. W. Howes, First Assistant Post
master General, sitting at the com
mittee table, interrupted to say the
case was being investigated and that
the offender would be prosecuted if
it was found a crime had been com
mitted.
After the attorney completed hla
testimony, Chairman McKellar or
<See MAILS, Page A-3.)
Senate Group
To Show Movie
Of Steel Killings
La Follette Says Film
to Be Exhibited at
“Proper Time.’*
By the Associated Press.
Chairman La Follette announced
today the Senate Civil Liberties Com
mittee would at the proper time show
publicly the newsreel film of the Me
morial day clash between steel strik
ers and police in Chicago.
It has been withheld from exhibi
tion.
La Follette said his committee, con
ducting an inquiry into the clash,
would show the film when it was
ready to proceed with public hear
ings.
"As chairman of the committee,”
La Follette said, "I regard this film
as important but not complete evi
dence concerning the events which
transpired on that day. Tire com
mittee is now in process of securing
the testimony of eye-witnesses and
participants on both sides.
“j. would regard the showing of the
pictures prior to the taking of direct
testimony from individuals as being
an inadequate and ex parte revela
tion of only a portion of the evidence
which the committee hopes to present
it a public hearing.
"As soon as the committee is pre
pared to proceed with testimony of
individuals who participated in or
who witnessed the events on Me
morial day, representatives of the
press will be given a proper oppor
tunity to get all of the testimony,
including that portion of it which Is
revealed by this newsreel.”
BRAZILIAN OFFICIALS
ARE DUE HERE TODAY
Six, Headed by Finance Minister,
on Economic Mission to
This Country.
Bt the Associated Press.
MIAMI, Fla., June 18.—Six Bra
silian officials on an economic mis
sion to the United States left by plane
today for Washington.
Their ship (Eastern Air Lines) took
off at 9 a.m. (E. S. T.) and was
scheduled to reach the Capital at
4:10 p.m.
The Brazilians,! headed by Finance
Minister Arthur de Souzacosta. ar
rived here late yesterday after a four
day trip by air from Rio de Janeiro.
They will be guests in Washington
of the Brazilian Ambassador. Their
conferences with Government officials
will begin next week, Souzacosta said.
*
Hurley Buys New Mexico Home.
ALBUQUERQUE, N. Mex., June 18
(A’).—Patrick J. Hurley, Secretary of
War under President Hoover, said here
today he had purchased a home in
Santa Fe, N. Mex., and would estab
lish residence July 18.
STRIKERS PLEDGE
“FIGHT TO FINISH”
(DESPITE U. S. MOVE
Rail Track Is Dynamited at
Republic Plant in
Canton.
MEDIATION EFFORT .
PUSHED BY GOVERNMENT
Railway Union Won’t Send Men
Into Dangerous Areas,
Official Warns.
BACKGROUND—
Committee for Industrial Organ
ization steel strike extends to jour
companies: Republic, Youngstown
Sheet & Tube, Bethlehem and In
land It began last May 25, after
the companies refused to sign con
tracts. Inland and Youngstown
are not attempting to operate; Re
public and Bethlehem arc. Inland
faces a National Labor Board hear
ing on a charge of having failed to
bargain with C. 1. O Secretary of
Labor Perkins yesterday appointed
three Federal mediators to try to
settle difficulties of strike.
t>» the Associated Press.
CLEVELAND, June 18—C. I O.
shouted a spirited “Carry on!’’ to
its striking steel workers today as
violence flared anew on the strike
front.
At Canton, Ohio, a short section of
the trackage of the Wheeling <fe Lake
Erie Railroad, near the Republic steel
plant, was dynamited today. Damage
was slight, however, and was repaired
quickly.
The house of Anthony Castro, who
has remained at work in the Republic
plant despite the strike, was bombed,
one corner wrecked.
Hundreds of grim, brawny men
gathered at Johnstown. Pa . last night
and raised calloused hands in a united
pledge to continue the strike against
the Bethlehem plant there “for weeks
and weeks,” if necessary, to win a
signed contract.
But the Johnstown picket lines were
thinner, and the plant officials re
ported work was going on "much bet
ter.”
A Chicago mass meeting heard
speakers lambast the four strike-af
fected steel corporations, and then
sang the strike theme song, “Sign
on the Dotted Line.”
Cleveland, however, became the
focal point of interest as the Fed
eral Government's mediation efforts
took form. The first meeting of a
three-man mediation board, which
Secretary of Labor Perkins named
yesterday, was called for tomorrow
by its chairman. Charles P. Taft. 2d.
The other mediators are Lloyd K.
Garrison of the University of Wls
cbnsin and the veteran trouble shoot
er, Edward F. McGrady of the Labor
nona rtmanf
Board's Future Uncertain.
Whether the board would have any
thing to mediate was a big question.
It has no power of compulsion, and
there was no indication today the
steel companies or the C. I. O. were
ready to rest the fate of the strike
in the hands of such a board.
"We will co-operate,” was as far as
either side was willing to go.
Taft, a Republican, who drafted
that party's planks on relief and so
cial security in the Landon platform,
hoped to get the decks cleared for
action today. Garrison is expected in
time for tomorrow's meeting, but Mc
Grady, now aboard the Berengaria en
route home from Europe, may not
arrive until late tomorrow night. .
Taft, not yet 40, is author of "You
and I and Roosevelt,” a book in which
he takes issue with many New Deal
policies. Three years ago he success
fully mediated the Electric Auto-Lite
strike at Toledo, an accomplishment
that wpn the approbation of both
President Roosevelt and Secretary
Perkins.
The possibility the steel strike,
which is costing about $750,000 a day,
might spread to the railroads was
suggested today in a statement by
Alexander F. Whitney, president of
the Brotherhood of Railway Train
men: Asked concerning reports that
the trainmen would refuse to handle
shipments to or from strike-affected
plants, he said:
"I told our fellows at Youngstown,
Warren and Canton, Ohio, and ’in
one or two places in Pennsylvania,
that they were not required to sub
ject themselves to danger. Under
unusual circumstances it is up to the
men to decide whether movement of
cars is dangerous.
Thugs Rounded Up, Is Charge.
"The difficulty is that the steel
companies and some railroads are
rounding up all the thugs in the
country, putting stars on them and
calling them officers. It is dangerous
to work around such men.
“I told our men that if the rail
roads undertook to discipline them
or ordered them to work under
dangerous conditions we will protect
them.”
The back-to-work chorus was heard
on several sectors. At Johnstown a
Citizens’ Committee, organized to pre
serve order, adopted a resolution in
sisting that there be “no compromise
with the right to work.”
Representative Clare Hoffman, the
militant Michigan Republican, who
offered to lead a citizen “army” to
the aid of Monroe, Mich., several days
ago, addressed the citizens’ rally at
Johnstown and called upon .“true
Americans” to “Join hands and fight
together to triumph over disloyal
forces of disorder and destruction."
The tone was different on the ros
trum of the Chicago mass meeting
where Lieut. Oov. Thomas Kennedy
of Pennsylvania was the principal
speaker, filling in for John L. Lewis,
head of C. I. O., who was obliged to
cancel his engagement.
Youngstown Sheet Si Tube has
stated it is ready to resume operations
as soon as there is “assurance that
the men can return to work without
danger to themselves or ^property.”
! RULERS, CITIZENS
New Capital Set Up as
Troops Fall Back to Pro
tect Retreat From City.
BACKGROUND— ^
For snore than a month since his
last big drive on Madrid. Rebel
Chieftain Francisco Franco has
turned his guns on Bilbao, attempt
ing to capture.the last stronghold
of the Loyalists in North Spain. In
recent days of heavy fighting he
has drawn close to his strategic
objective.
BILLETIN’.
PARIS, June 18 UP\.—‘The Basque
government delegation in Paris
charged tonight that Great Britain
had withdrawn protection from
merchant ships which have been
evacuating the civil population of
Bilbao.
The Basques said that all means
of escape from Bilbao were now
cut. with 70,000 non-combatants in
urgent need of relief and only
30,000 evacuated.
Bj the Associated Press.
HENDAYE, Franco-Spanish Border,
j June 18.—Two divisions of Basque
defenders fell back to their rear
j guard positions west of Bilbao today
to keep open the road for retreat to
Santander as the government fled the
never conquered northern capital.
Meanwhile, in the eastern suburbs of
the city of Mount Archanda. the leg
weary rebel troops came within sight
of Loyalist snipers and the fires in the
city. They awaited only the comple
tion of an encircling movement by
troops toiling up the torturous hills to
the west of Bilbao before making the
push to enter Bilbao's limits..
But frightened refugees brought out
stories of a Basque capital fortified
with cobblestone barricades and hid
den mines for a fight to the finish.
All bridges that led into the "new
city" across the Nervion River are
mined, the refugees said. The main
streets are crisscrossed with the cob
blestone barricades.
Insurgents declared they held com
plete control of the eastern reaches
of the Nervion River, Bilbao's avenue
to the Bay of Biscay, and were launch
ing the long-awaited pinching move
ment to drive the Basques from the
western hills and inclose the city.
The official Basque delegation at
Bayonne, France, announced the gov
ernment of the semi-autonomous re
public had left its besieged capital
“for another point in Basque terri
The location of the new capital
was being kept secret for military
reasons, but one report said the gov
ernment had taken up its seat at the
little village of Trucios. about 20 miles
west of Bilbao, on a secondary road
to Santander.
Defense Command Named.
Before they left they turned over
the military command to a new de
fense junta composed of Gen. Gamir
Uribarri, chief defense commander;
Jesus Leizaola, minister of Justice;
Santiago Aznar, minister of industry,
and Juan de Astigarrabia, minister
of public works.
While Basque shock troops slowed
up the enemy advance to protect the
retreat of their main body and the
withdrawal of artillery batteries and
stores of ammunition, the third and
fourth Basque divisions reached the
rear-guard positions and occupied
them.
The Basques were apparently mass
ing all their forces west of the city
to prevent Generalissimo Francisco
Franco's insurgents from capturing
the dominant heights, cutting the
highway to Santander and bottling
up the capital. Bilbao, incidentally,
is withstanding its fifth siege in 100
years.
Population Swollen.
The shelling of the city from the
insurgent gun implacements on the
Eastern outskirts continued through
out the night, the defense junta de
clared, with pursuit planes flying only
200 feet above the streets, machine
gunning everything in range.
"One hundred fifty thousand per
sons have been evacuated from Bil
bao to Sailtander by land and sea
(See SPAIN, Page A-4.)
90 Chinese Bandits Sain.
TOKIO, June 18 C4>).—The Domel
(Japanese) News Agency reported to
day Japanese troops had attacked 200
Chinese bandits near Harbin, Man
ehukuo, killing 80 and seising many
rifles In an eight-hour battle.
I
--^
These Roosevelts' A
how they’ve changed
^ MY WHOLE UFEiy
WE’RE NEVEfTA )
G.ONNA LEAVE )[ ,
^You AHYHOW'/
S'k ykVl
Mrs. Norton to Head Labor9
Palmisano D. C. Committee
Xetv Jersey Member of
House Forced to
Relinquish Post.
Representative Mary T. Norton.
Democrat, of New Jersey, announced
today she would resign as chairman
of the House District Committee to
fill the vacancy as head of the more
important Labor Committee caused by
the recent death of Representative
William P. Connery, Democrat, of
Massachusetts.
The announcement followed a con
ference with Speaker Bankhead at
which he is understood to have urged
Mrs. Norton to remain at the head of
the District Committee because of
her interest In the District and her
familiarity with its complex problems.
Mrs. Norton, however, is understood
to have told Bankhead that if she
were elected chairman of the Labor
Committee she would be compelled to
accept the position to better serve her
constituents in New Jersey—a district
largely made up of labor.
By virtue of seniority Mrs. Norton
is entitled to the chairmanship of the
Labor Committee. She now is the
ranking member. Her selection as
chairman must be made, however, by
| the House Ways and Means Commit
i tee, and confirmed by the House.
Representative Palmisano. Demo
j crat, of Maryland, will succeed Mrs.
’ Norton as chairman of the District
Committee. He already has an
nounced he would accept the position.
Mrs. Norton issued the following
; statement after the conference with
j Bankhead:
‘‘I deeply regret that I am com
| pelled to leave the District Commit
tee to accept the chairmanship of the
Labor Committee, when and if it is
offered to me. I represent a labor
district in New Jersey and I feel the
people of that district have more
claim on me than do the people of
the District or any one else. They
have returned me to Congress seven
times. 1 would, indeed, be ungrateful
if I did not take advantage of the
opportunity better to serve them.
"For six years I have given the Dis
trict and its problems my undivided
attention—problems that are very
close to mv heart. And if I do get the
appointment as chairman of the Labor
Committee I shall always be on the
floor of the House fighting for the
District whenever it needs my help.
"I can't emphasize too strongly my
appreciation for the co-operation of
the District officials, its residents, and
especially the press. Memories of these
associations will be cherished as long
as I live.”
Mrs. Norton, at her home in Jersey
City, was urged by Bankhead to return
to Washington for the conference,
which lasted about 20 minutes.
I I
gp
REPRESENTATIVE
PALMISANO.
WEATHER IS BLAMED
FOR DEATH OF PILOT
By the Associated Press.
ROSENBURG. Oree., June 18
Weather conditions were blamed by
members of a special investigating
committee last night for the death of
Lieut. Comdr. Paul S. Ives. Naval Re
serve flyer, of Boston, in the crash of
a United States Navy plane Tuesday
night.
The board questioned Mechanic
Charles'Ernest Brostrom, who bailed
out of the ship a few seconds before
it crashed.
Ives' body will be sent to Boston.
Members of the committee were
Lieut. Comdr. D. A. York, U. S. N.:
Capt. J. B. Hardie, U. S. M. C., and
Lieut. J. F. Goodwin, U. S. N.
Summary of Today’s Star
Page. Page. !
Amusements B-14 Radio -B-6
Comics ..C-10-11 Short Story C-6
Editorials ...A-l# Society ..... B-3
Financial ... A-l” Sports C-l-4
Lost & Found C-S Woman’s Pg. _C-5
Obituary ... A-lt
FOREIGN.
Government quits Balbao: troops fall
back, natives flee. Page A-l
500 Reich clerics reported Jailed by
Nazis. Page A-l
Gaston Doumergue, twice premier,
dies. PageA-15
NATIONAL.
Actor Charles Laughton tax reduction
method is bared. Page A-l
Food mail bans in strike described to
Senators. * Page A-l
Strikers pledge ‘‘fight to finish” in
steel dispute. Page A-l
Leaders back compromise in relief
controversy in Senate. Page A-4
WASHINGTON AND NEARBY.
Woman given 360-day Jail sentence
for beating boy. Page A-l
Mrs. Norton to head labor, Palmisano
D. C. Committee. Page A-l
House finally passes tax program for
District. Page A-l
President’s plans for week end an
nounced. Page A-2
Lorton officials deny misdemeanor
prisoners at Lorton. Page A-3
Fireman, policeman hurt in violent
electrical storm. rage A-12
Wysanski resigns from Justice Depart
ment to practice law. PageA-18
I
City heads, desperate for funds, to
appeal to Senate. Page B-l
Seventh street widening up before
Planning Commission. Page B-l
D. C. Minimum Wage Board begins
new duties. Page B-l
Bid accepted for new Alley Dwelling
Authority project. Page B-l
Tax returns secrecy should be lifted,
archivists told. Page B-l
Scouts making Jamboree self-liquidat
ing by own funds. Page B-l
EDITORIAL AND COMMENT.
Editorials. Page A-10
This and That. Page A-10
Political Mill. Page A-10
Washington Observations. Page A-10
Answers to Questions. Page A-10
David Lawrence. Page A-ll
H. R. Baukhage. Page A-ll
Dorothy Thompson. Page A-ll
Constantine Brown. Page A-ll
Headline Folk. Page A-ll
MISCELLANY.
Traffic Convictions. Page A-8
City News in Brief. Page A-8
Shipping News. Page A-8
Winning Contract. Page A-8
Vital Statistics. Page A-8
Service Orders. Page A-8
Young Washington. Page B-1I
Dorothy Dix. Page C-5
Betsy Caswell. Page C-5
Cros*-Word Puzzle. Page C-10
Nature's Children. Page C-l*
Bedtime Story. Page C-ll
Letter-Out. Page C-ll
DISTRICT TAX BILL
PASSED BT HOUSE;
SEPARATE VOTES
ON 3 AMENDMENTS
Approval Given to Neto
Realty and Chain Stores
Levies and Higher Inheri
tance Rates.
“SNIPING” AT D. C. ISSUES
IS HIT BY MRS. NORTON
Asks Mifre Power for Local Self
Government — Representative
Kennedy Announces Prepara
tion of Reorganization Measure
in Interest of Efficiency.
BACKGROUND— \
With District facing deficit up- |
ward of $6.000.000 for coming fiscal i
year, Congress decided to 'impose \
new taxes rather than increase
Federal contribution. * ;
After long consideration House \
subcommittee recommended new
schedule, including individual in- \
come tax, applicable to members of \
Congress and their employes. House !
balked, however, and substituted in
crease in realty and personal prop- \
erty tax.
BV JAMES E. CHINN.
Stripped of its controversial income
tax plan, tine- badly battered District
revenue bill was finally passed by the
House today and sent to the Senate to
meet its ultimate legislative fate.
Before the measure was permitted to
leave the House with its o. k„ however,
separate votes were taken on three
of the major amendments written into
it yesterday during a hectic six-hour
battle. Each amendment was ap
proved. S
One of the amendments completely
removed the income tax plan from !'
the bill and substituted a 20-cent in- !
crease in the real estate levy, which j
will jump the rate from $1.50 to $1.70
in the new fiscal year beginning
July 1.
The other two were sponsored by
Representative Dies, Democrat, of
Texas.
His first amendment, substituting
a higher rate schedule under the in
heritance tax rate than proposed set
up in the original bill in order to "soak
i the rich," was approved by a 153-45
vote.
The other, placing a graduated tax
on chain stores, was Adorned tat
to 53.
Mrs. Norton Resents ‘‘Sniping.’*
After the House finally passed the
bill, Chairman Norton of the District
Committee, who was absent during
debate on the measure because of a
death in her family, took the floor
and in a five-minute speech praised
the special subcommittee of the Dis
trict Committee that framed the tax
program for “its hours of work.”
She said the work of the District
Committee was "very much misunder
stood and very little appreciated by
members of the House.”
“As soon as the District Committee
brings a bill to the House floor,” she
declared, “certain members who have
I been unfamiliar with the committee's
work begin sniping at it.”
Mrs. Norton said that work on the
District Committee “does us no good
at home." She added, however, that
the District “depends on us.”
She concluded with a plea to House
members to give the District more
power for self-government. Even
| though a complete suffrage plan might
j not be adopted, she said, a bill giving ;
1 the Commissioners authority to adopt
; ordinances should be able to pass the
House.
Reorganization Bill Announred.
Almost simultaneous with the pas- j
sage of the tax bill. Representative 1
Kennedy, Democrat, of Maryland, who
served as chairman of the special tax i
subcommittee, announced he was pre
paring a bill designed to reorganize I
the District government in the interest j
of efficiency and economy. The meas- j
ure, he said, also would give the Dis* j
trict “greater control" over its own
affairs by broadening the powers of i
the Commissioners. ’
Kennedy did not reveal the details
of the proposed bill, but said he would !
have it ready for introduction within
a week or 10 days.
Framing of a tax program was only
one of the duties assigned to Ken
nedy's subenmmitte at the time of its
creation. It also was directed to
study the set-up of the municipal gov
ernment with a view to recommend
ing a plan of reorganization.
Delay Is Threatened.
As soon as the House convened it
appeared that final action on the tax
bill was headed for delay in view of
parliamentary tactics adopted by Rep
resentative Dirksen, Republican, of
Illinois, who championed the ill-fated
income tax plan as a member of the
Kennedy sub-committee. He forced
all members in the chamber to an
swer a roll call on a point of no
quorum.
Later, he insisted on a separate vqfa
(See TAX, Page A-4.)
BULLETIN
EDMONTON, Alberta, June 18
(Canadian Press).—Maj* J. E.
Genet, in charge of the Royal Can
adian Corps of Signal Stations
here, said today he had been in
formed that Soviet aviators have
taken off on a non-stop flight from
Moscow to San Francisco.
Maj Genet said he had been
ad ised that the take-off was at
a 2 am., Greenwich meridian
time (10 p.m.. E. S. T.—Thursday
night). His station had made no
contract with the Soviet plan?.
Both Director Patterson of the
Dominion Meteorological Bureau
in Toronto and the Soviet gov
ernment agent in Seattle, Wash,
notified him of the take-off, Maj.
Genet se'4.
4