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Evening star. [volume] (Washington, D.C.) 1854-1972, February 16, 1938, Image 1

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WEATHER.
<U. S. Weather Bureau Forecast.*
Cloudy tonight and tomorrow; rain or
snow tomorrow; minimum tonight about
27; gentle north winds. Temperatures
today—Highest, 38. at 3 p.m.; lowest, 26,
at 7:10 a.m.
Pull report on page A-2.
Closing Net* York Markets, Page 16
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
(*>) Means Associated Press.
86th YEAR. No. 34,2^9.
WASHINGTON, D. Q., WEDNESDAY, FEBRUARY 16, 1938 -THIRTY-SIX PAGES.
Inured ae second elau matter TtlDT’T’ nfVfTO
pit ottce, Waahlnaton. D. C. -LJtlXlEE CE^NTS*
2,000 NAZIS FREED
BY AUSTRIA UNDER
REICU DOMINATION
Reorganized Cabinet, With
Three Hitlerites, Takes
Charge in Vienna.
FIVE YEARS OF TERROR
BELIEVED NOW AT END
Fatherland Front Membership Is
Beopened to Let National
Socialists Join.
BACKGROUND—
Surprise meeting of Reichs/uelirer
Adolf Hitler and Austrian Chan
cellor Kurt von Schuschnigg last
Saturday at former's retreat at
Berchtesgaden in Bavaria believed
at that time due to efforts of Mus
solini. Consultation on Austro
German accord of 1936 resulted in
agreement for Nazis to enter Vienna
cabinet rrJiile Hitler undertook to
respect the independence of Aus
tria and refrain from supporting
Nazis in Austria.
By <he Associated Press.
VIENNA. Peb. 16.—More than 2.000
amnestied Nazi convicts began leaving
Austrian prisons and concentration
ramps today as a reorganized cabinet
with Nazi influence in a powerful role
assumed control of the republic's
destinies.
Their release was one of the first
results of the sweeping governmental
changes wrought by Chancellor Kurt
von Schuschnigg at the behest of the
leaders of Austria's powerful northern
and southern neighbors, Reichsfuehrcr
Hitler and Premier Mussolini.
Some circles spoke of Austria as the
puppet of the two totalitarian leaders
as the new cabinet, containing a close
friend of Hitler, two men avowedly
friendly to Nazi Germany and two
nationalists came into power.
Changes Follow Meeting.
The changes resulted from Satur
day's Berchtesgaden meeting of the
German and Austrian chancellors and
the advice of the Italian Premier.
By these changes Austria was rep
resented as having bought ‘'internal
peace and amity abroad”—the ap
proval and support of two powerful
neighbors and promises of new guar
antees of her independence.
The five years of strife, terrorism,
propaganda and sabotage for which
the amnestied Nazis had been sen
tenced were considered at an end,
with these offenses excused overnight
and new peace between Austrian fac
tions in prospect.
The change also was considered to
have dashed hopes of the monarchists
for a restoration of the House of
Hapsburg to the Austrian throne.
Some sources set as high at 3,000
the number affected by the amnesty,
including those convicted or facing
sentences for illegal activity as mem
bers of the Nazi party.
Some of those amnestied were in
volved in the Socialist uprising of
February, 1934. and the subsequent
abortive Nazi putsch in which Chan
cellor Engelbert Dollfuss was mur
dered.
Hitler Friend in Cabinet.
Most striking development was the
admission into the cabinet of Hitler's
personal friend. Arthur Seysz-Inquart,
pro-Nazi Nationalist, as minster of in
terior with jurisdiction over police.
This was the price for preservation of
Austrian independence. In direct
charge of the gendarmerie under
Seysz-Inquart will be a non-Nazi, Dr.
Michael Skubl. This is considered a
drawback to Seysz-Inquart's full con
trol of the police.
One result was announcement that
membership in the Fatherland Front—
Austria's only legal political party—
closed November 1, 1937, would tem
porarily be reopened. This gesture
W’as aimed at internal pacification,
allowing Nazis to join. ,
Neutral observers, however, believed
It might be a two-edged sword—it
might satisfy the Nazis by giving
them an outlet for political activity,
but it might enable the new National
ist ministers to say. some time when
differences arise, "See how many
Fatherland Front supporters I have.”
Regulations for more complete con
trol of the press were promised. In
the cabinet reorganization Schusch
nigg remained as chancellor, still
fighting, as for four years past, for
Austrian independence as opposed to
union with Germany.
The new cabinet was regarded as
provisional, perhaps to last only until
May, when Hitler, Mussolini and
Echuschnlgg are expected to meet in
(See VIENNA, Page A-4.)
‘GET GOV. MARTIN,’
UNION IS EXHORTED
Oregon A. F. L. Official Urges
Action—C. I. 0. Demands
U. S. Probe in State.
By the Associated Press.
PORTLAND, Oreg.. Peb. 16.—An A.
P. of L. official urged unions to “get
Gov. Martin out of the way" and the
C. I. O. demanded Federal investiga
tion of alleged Oregon labor terrorism
today after 12 men had been indicted
as reputed “terrorists."
C. A. Paddock, president of the Eu
gene A. F. of L. Central Labor Coun
cil, charged the present clean-up of
strong-arm methods was undertaken
by Gov. Martin at the behest of big
business. He said “labor must get
Gov. Martin out of the way.”
Twelve men. including E. L. Garner,
business agent of the A. F. of L.
Masters, Mates and Pilots’ Union, were
indicted yesterday on charges of at
tempting to bomb a tug. Garner also
was charged with five others with at
tempted bombing of the freighter W.
R. Chamberlin, Jr.
-Clarence Adams, head of the A. F.
of L. Teamsters’ Hiring Hall, was in
dicted in connection with the burning
^ a fuel company truck.
Bank Loans to “Little Men
Partly Backed by U. S., Studied
Justice, Commerce, Federal Reserve and
R. F. C, Shaping Program-r-Need
bf Capital Money Is Stressed.
By G. GOULD LINCOLN.
Through at least four major Gov
ernment agencies a program to deal
with business—both little and big—
is being whipped into shape. These
are the Departments of Justice and
Commerce.'the Federal Reserve Board
■and Jhe Reconstruction Finance Corp.
If President Roosevelt accepts the
recommendations made to him by
these agencies they will be submit
ted to Congress in so far as legisla
tion may be required. Such parts
of the program as do not require leg
islation will be handled directly by
the executive branch.
A proposal to create credit facili
ties for the “little business man”
has a prominent place in the suggested
program. One method of attacking
this problem which is being carefully
considered calls for loans to the busi
ness men, secured in part by the Gov
ernment but made by the local banks.
Such a plan, it is contended by
those working on the proposal, would
have the effect of stimulating loans
to Industry and at the same time
holding the banks responsible both
for the worthiness of the loans and.
for their repayment. The loans would
be made by banks on the ground, with
full knowledge of local conditions.
They would be repaid to the banks.
If the Government assumed full re
sponsibility for the loans, the banks
would escape entirely if any of the
loans proved bad. Therefore, it is
proposed to have the Government
guarantee a percentage of the loans.
Particularly it is said, business men
are in need of capital loans, rather
than the .short-term loan of 90 days
(See LOANS,"Page A-5.)
Suspect in Limerick Case
Waives Extradition and
Promises Sensation.
Waiving extradition, former District
Policeman Robert F. Langdon was
turned over to Washington detectives
this afternoon for his return from New
Haven. Conn., to stand trial here for
the murder of Beulah Limerick. 10
year-old secretary of the Sky High
! Whoopee Club.
Lt. Floyd Truscott- and Detective
Sergt. B. P. Hartman left New Haven
this afternoon with the prisoner, and
are due to arrive here at 6:35 p.m.
Langdon was arraigned in Superior
Court at New Haven before Judge j
John Rufus Booth, charged with plac- j
ing an obstruction on a New Haven j
railroad track last spring.
This case was nolle pressed at the ;
; request of State's Attorney Samuel
Hoyt, who explained the Washington j
! detectives had a warrant for Langdon
■ on a more serious charge. Through j
| Assistant State’s Attorney Abraham j
| S. Ullman. Langdon told the court he I
waived extradition.
The burly former policeman prom- i
; ised to reveal sensational news in
Washington, the Associated Press re
i ported. Langdon was indicted yester
| day by the District grand jury in the
: seven-year-old murder.
My conscience is cioor. I
The charge nolle prossed In Con
; necticut today was placed against
Langdon after he flagged a passenger
train just before it ran over steel
; chains looped about a rail in front of
! it. The State contended Langdon
| placed the chain there and averted
j the derailment in an attempt to make
' a "hero" of himself.
Before being taken to court, Lang
don declared:
| “My conscience is clear. The dirty i
part of it is. it'll bring in an innocent
kid."
Langdon refused to Identify the
"kid” or to amplify his remark. He
added, however, that if he “could get
somebody to do my defense" he would
(See LANGDON* Page A^S )
TOURISTS SPEND LESS
Miami Has More Visitors Than
1937. but Cash Is Tighter.
MIAMI, Fla., Feb. 16 (4»).—Miami's
current tourist crop is larger than last
season's but is spending less money,
a survey of usually accurate indica
tors disclosed today.
On the right side of the ledger were
increases in utility connections and
production, race track attendance and
wagering, postal receipts and passen
ger traffic.
On the debit side were decreases in
merchandise sales, building activity,
postal and bank savings and real es
tate transfers.
Railroads reported better than aver
age incoming passenger traffic, while
Eastern Air Line officials said extra
planes were necessary on the New
York and Chicago runs.
RELIEF BILL TODAY
Senate Expected to Take Up
$250,000,000 Meas
ure Quickly.
BACKGROUND—
In making relief appropriation,
for current fiscal year, Congress last
spring specified that sum should be
apportioned to last full 12 months.
Sudden setback to business last fall
brought increased unemployment
and new demands for public relief.
Last week. President Roosevelt rec
ommended that Congress appropri
ate $250.000.000 for extra needs
during rest of present fiscal year.
By the Associated Press.
Passage of the emergency *250,000,
000 relief appropriation before night
fall was predicted today by House lead
ers.
Taking up the relief measure for
debate this afternoon, the House heard
Representative Cannon, Democrat, of
Missouri, a member of the Appropria
tion Committee, say the money was
needed immediately to provide employ
ment for thousands who have been
thrown out of work because of condi
tions over which they have no control.
The Senate probably will discuss
the relief bill Friday, assuming the
House passes it quickly.
miuuusu nuiuc cuieuains expressed
confidence the relief bill would be ap
proved, some Republicans were oppos
ing It and some members of the self
styled liberal bloc wanted a larger
fund.
Representative Taber, Republican,
of New York, ranking minority mem
ber of the Appropriations Committee,
said the appropriation was not neces
sary.
‘There’s only one possible excuse
for it,” he said, ‘ and that is that the
administration must be planning to
create conditions which will make
more people lose their jobs between
now and July 1.”
On the other hand, the Appropria
tions Committee reported that 1,000,
000 persons had lost their jobs in
January. Although the situation is
static, it said, no information was re
ceived to indicate “that there was in
prospect in the near future” a suf
ficient upturn in business to warrant
a smaller amount.
500,00* New Relief Jobs.
Aubrey Williams, assistant W. P. A,
administrator, told the committee that
the fund, if approved, would permit
W. P. A. to open about 500,000 new
relief jobs between February 15 and i
July 1, the start of a new fiscal year.
Congress already has appropriated *1,
500,000,000 for the current fiscal year.
Senator Bailey, Democrat, of North
Carolina offered a resolution to estab
lish a ‘‘nonpartisan administration”
of relief funds by a# five-man Federal
board. Senator Bailey, declaring there
was “grave danger” relief funds may
be used for political purposes, pro
posed penalties for soliciting the votes
of persons on relief.
Summary of Today's Star
Page. Page.
Amusements A-I3 Obituary_A-lt
Comics . B-14-15 Radio _B-9
Editorials A-8 Serial Story .B-l*
Finance _ A-15 Society .. . B-3
Lost <k Found B-l* Sports .. A-18-19
Woman's Pg. B-8
FOREIGN.
2,000 Nazis freed by Austria under
Reich domination. Page a-1
Chinese Lunghai defense crumbles.
Japanese report. Page A-4
British navy race with Japan looms in
5-y^ar project. Page a-1
Diversity of following tests Franco’s
political ability. Page A-4
NATIONAL.
Representative Scott warns of fascism
spread in U. 8. Page A-1
Kennedy takes sharp issue with mi«
Perkins at hearing. Page A-1
Jackson nomination approved by Sen
ate subcommittee. Page A-*
Administration economists seek re
visions in prices. Page A-*
Milligan confirmation spurs coalition
against Pendergast. Page A-3
WASHINGTON AND VICINITY.
Nichols says sales tax advocates are
“wasting their time.” Page A-1
Langdon waives extradition In Lim
erick murder. Page A-1
Eight proposed airport sites tfewed
from air. Page A-X
Admiral Grayson to be buried in Ar
lington tomorrow. Page A-S
Mother of G. W. professor critically
injured by auto. Page A-1
More traffic police urged at.D. C. bill
hearing. Page B-l
Courthouse kitchen used to test Nolan
trial document. « Page B-t
Two former bank employes indicted in
.. alleged thefts. Page
Police watch beer and soft drink trucks
in strike. Page jj.i
EDITORIAL AND COMMENT.
Editorials. Page A-8
This and That. Page a-8
Answers to Questions. Page A-8
Washington Observations. Page A-8
David Lawrence. Page A-9
The Capital Parade. Page A-9
Dorothy Thompson. Page A-9
Constantine Brown. Page A-9
Lemuel Parton. Page A-9
FINANCIAL.
Curb prices ease (table), PageA-17
Banquet planned by A. I. B.
Chapter Saturday. Page A-18
Stocks drop (table). Page A-lS
Most bonds lower (table). Page A-lS
SPORTS.
lx>uis, lazy training for Mann, looks
bad in workouts. Page A-18
Pilot Frisch sees Cards factors in flag
_ r*ce Page A-18
United States opposes move for
biennial Davis Cup play. Page A-18
Vines, seeking rich Budge "gates,”
swamping Perry. Page A-19
Sande’s horses give Santa Anita
theatrical touch. Page A-19
Whizzer White, Oxford bound, spurns
915.000 pro offer. Page A-19
MISCELLANY.
City News in Brief. Page B-7
Bedtime Story. Page B-14
Shipping News. Page A-8'
Vital Statistics. Page B-8
Cross-word Piuglc. Page B-14
Letter-Out. Page B-14
Winning Contract. PageB-18
Nature’s Children. Page B-9
Bentoe Orders. Page B-18
SENATE REFUSES
TO LIT DEBATE
ON LYNCHING BILL
Opponents of Measure Say
Cloture Failure, 46 to 42,
Means Shelving.
SOUTHERNERS RAISE
“INTIMIDATION” CRY
Barkley Indicates Emergency Re
lief Program Will Be Taken
Up Friday.
BACKGROUND—
Enacted in House in last regular
session, legislation making lynching
a Federal offense encountered de
termined opposition of senatorial
bloc. Threat of filibuster caused
administration to withhold measure
from Senate during special session,
but since being brought up in Jan
uary opponents have successfully
prevented vote on bill.
B> ihe Associated Press.
The Senate rejected today a motion
0>r limiting debate on the anti-lynch
ing bill. The vote was 46 against to
42 for the debate limitation, which, i
under Senate rules, required a two- j
thirds favorable vote.
Defeat of the motion left unchanged
the status of the filibuster against the
measure, now entering its twenty
eighth day.
Opponents of the bill, which would
provide for Federal prosecution of
State officials who wilfully fail to pre- I
vent lynchings. predicted it would be
shelved soon as a result of the vote.
Proponents said they would continue :
to seek a vote on the bill itself, but |
Democratic Leader Barkley indicated
it might be laid aside Friday to take!
up the S250.000.000 emergency relief
appropriation.
illumination Charged.
Filibustering Southern Senators!
cried "intimidation" when supporters
of the bill insisted that a vote against
limiting debate would amount to a
vote against the bill.
Senator Wagner. Democrat, of New
York, told the Senate that "a vote!
against cloture Is bound to be regarded 1
as a vote against the bill."
Supporters of the bill failed once
before three weeks ago to invoke the
rule in an effort to break the filibuster.
Replying to Senator Wagner s plea !
for a favorable cloture vote. Senator
Connally. Democrat, of Texas, leader
of the Southern bloc, said the "Sena
tor from New York seeks to intimidate
the Senators by saying a rote against
cloture Is a vote against the bill.”
"If any Senator is frightened or in
timidated.” he continued, "he hasn't
the moral fortitude that the Senator
from Texas thinks he has.”
Connally Denies Charges.
Senator Connally insisted that the
charges of “filibuster” and "futile de
bate" made against the Southerners’
attack on the measure were un
justified.
The discussion has served, he said,
to bring out that neither the "en
lightened people” of the country nor;
the majority of the Senate actually
want enactment of the bill.
Senator Wagner declared supporters
of the measure were "determined” to
force a final vote on it.
"It is a curious argument that a
filibuster is justified on the grounds
that unlimited debate on this bill is
necessary for the preservation of
Democracy, the New Yorker said.
He asserted that, instead, the
filibuster is "imperiling” democracy.
"The high purpose of this bill is to
make a reality of the fundamental
guarantees of the Constitution where
notoriously they have been but shame
ful mockery,” said Senator Wagner.
.. •
MISSING RED ENVOY
QUITS BOLSHEVIKS
Jodor Butenko Arrives in Koine
to Join Fascists—Disappeared
in Bucharest.
By the Associated Preu.
ROME, Feb. 16.—The mystery of
what happened to Jodor Butenko,
Soviet charge d’affaires in Bucharest
until he disappeared there February
6, was cleared up today when he
walked dramatically into the Fascist
camp and declared himself a'deserter
from the Bolsheviks.
Fascist officials, including Foreign
Minister Count Galeazzo Ciano, gave
him immediate audiences and the
Girondale d’ltalia devoted its entire
front page to his signed diatribes
against Bolshevism. „
Butenko, last seen in Bucharest at
the entrance to the Soviet legation,
arrived in Rome last night without a
passport. (The Soviet government
had protested to Rumania concerning
his disappearance and Pravda, Com
munist organ in Moscow, had declared
he was the victim of a "Fascist politi
cal crime.”)
But in his signed statement Bu
tenko said:
“Feeling myself an intellectual who
could not tolerate treachery and who
lived up to his ideals, I decided to
break once and for all with Bol
shevism, which weighed on and op
pressed me as a terrible nightmare.”
GEN. PERSHING BETTER
World War Commander to Attend
Rodeo Sunday. ,
TUCSON. Aria., Peb. 16 OP).—Oen.
John J. Pershing, suffering from rheu
matism, spent a very good night and
was cheerful and lively today. He
plans to attend a rodeo Sunday with
his guests, Oen. and Mrs. Charles
Dawes.
Dr. Roland Davison, the 77-year-old <
general’s physician, said he was not
very 111, but was resting as a precau
tion.
Oen. Pershing suffered from rheu
matism last year and spent several
weeks in a Government hospital at
Hot Springs, Ark. A
Commissioners Put Silencer
On Auto Horns After Midnight
An absolute ban on blowing auto-,
mobile horns from midnight to 7 am.'
—except for emergency vehicles mak
ing official runs—was ordered today by
the Commissioners in a series of fur
ther amendments to the traffic regula
tions.
The move is based on the theory
drivers should use their brakes, in
stead of horns, in avoiding accidents.
The change was urged by Traffic Di
rector William A. Van Duzcr and rec
ommended by the Traffic Advisory
Council.
The rule will go into effect after the
change has been advertised for 10 ]
days, or February 27. if legal notice is
published beginning tomorrow.
In urging adoption of the rule, Mr.
Van Duzer explained that previous
regulations prohibited use of horns at
any time "except as a reasonable
warning of danger.” In spite of this
rule, he said, there still was a great
deal of horn-blowing late at night.
"It is believed this is done chiefly to
enable drivers to maintain unduly high
rates of speed at intersections and be
tween intersections after the traffic
lights have been turned off.
"Safe driving procedure calls for re
< See HORNS.“Page" A-4)
BULLETIN ]
William Francis Scott. 44. na- j
tionallv famous Navy parachute
jumper and bridegroom of two
weeks was found dead of poisoning
this afternoon In the second-floor
bedroom of his home, at S28 Ninth
street S.E Mr. Scott, a machinist
at the Washington Navy Yard, is
said to have been despondent since
the death of his mother, last year,
and on his dresser was a note,
which said: “I want to be with
my mother."
44-HOUR WEEK ACT
HELD UP BY HI
* «
Injunction^ Restrains State
of Pennsylvania From
Enforcing Law.
By the Associated Press.
HARRISBURG. Pa., Feb. 16—An
Injunction restraining the State of
Pennsylvania from enforcing its new
44-hour work week law was granted
today by Dauphin County Court.
The law, enacted by the 1937 Legis
lature, was effective as of last Decem
ber 1. Enforcement was delayed until
January 1 to permit industries to ar
range to conform. Then more than
600 Arms began legal fights against
the law. They have been exempted
from immediate compliance.
The injunction today was granted in
a taxpayer's suit brought by C W.
Miller, a Central Pennsylvania grocer.
Judge W. C. Sheely, who heard the
case, said in his decision that the
injunction would remain in effect
"until further hearing or a further
order” of this court.
The court instructed the Pennsylva
nia Industrial Board which adminis
ters the act to refrain from "employ
ing their time or the time of their em
ployes or representatives and from
spending or causing to be expended
any of the funds of the Commonwealth
for the enforcement of the act."
X State appeal to the Supreme Court
is expected as a matter of course.
Pennsylvania has a 44-hour work
week for women which went into ef
fect last September, It has not been
challenged.
TRANSPLANTED CORNEA
REVEALS COLOR TO MAN
Strawberry Picker No* Recog
nize* “Most Anything I See’'
With Gift Eye.
B» the Associated Press
NEW ALBANY, La„ Feb. 16 —
Frank Chabina, 19-year-old straw
berry farmer, says he can distinguish
colors through the transplanted cor
nea of his left eye.
The cornea was donated by aged
John W. Amos of St. Joseph, La., and
the operation was performed here last
December 8.
After the bandages were removed
Mr. Chabina, could distinguish only
the doctor’s lingers by count, but he
said yesterday he now could recog
nise colors and “most anything i
see” with the restored eye.
He lost sight in the eye about two
yean ago while working with lime
dust
French Envoy Lenvei for U. 8:
PARIS, Peb. 16 W).—Count Rene
de Saint-Quentin, France’s new Am
“““tor 10 Washington, left Paris
today for his post, united States
Ambassador William C. Bullitt was in
the official party at the station to
see him off. He was to sail from Le
Smri,°SnplIt'lu*111 New
MARITIME FEANS
Takes Sharp Issue With
Secretary Perkins on Me
diation Proposals.
BACKGROUND—
After months of inquiry into
American merchant marine. Mari
time Commission issued vigorous
report assailing both shipowners
and labor for responsibility for dis
turbed conditions. As one remedy,
commission proposed labor media
tion law similar to railroad law.
National Labor Relations Board,
National Mediation Board and
Labor Department all have opposed
suggestion.
b\ the Associated Press
Joseph P. Kennedy, chairman of the
Maritime Commission, taking sharp
issue with Secretary of Labor Per
kins, urged a Senate committee today
to approve his proposal for Govern
ment mediation of maritime labor dis
putes. .
Chairman Kennedy appeared be
fore the Senate Commerce Commit
tee which has heard Miss Perkins op
pose his proposal as "premature" be
cause the industry was not “ripe."
Stoutly defending his suggestion for
settling maritime labor troubles along
lines now operating for railroads, Mr.
Kennedy said the Government should
not subsidize merchants ships unless
they are “manned by competent and
contested seamen.”
"Unless labor conditions in the mer
chant marine can be stabilized by the
substitution of consideration and co
operation in the place of hostility and
recrimination, labor, management and
the general public alike will suffer," he
told the committee.
neierence n upposmon.
Referring to the opposition of Miss
Perkins and spokesmen for maritime
unions, Mr. Kennedy said not one wit
ness had voiced a single sound objec
tion to his labor proposals for “adjust
ment of disputes in the industry by
arbitration and mediation."
He quoted Secretary Perkins as say
ing application of principles of the
Railway Mediation Act would be "pre
mature" for the reason that "the em
ployes are not fully organised" and
theh commented:
“This is a strange argument. It is
said to be 'premature' to put into op
eration machinery designed to prevent
strikes and lockouts in an industry
which in 10 months of 1937 lost ap
proximately one million man-hours of
work by strikes and lockouts.”
Comments on Statement
Later Mr. Kennedy again referred to
the statement Miss Perkins had made
and commented:
“I submit that if the maritime in
dustry is not ‘ripe’ for conciliation and
mediation of its labor disputes, then
it is over-ripe for ruin."
Mr. Kennedy appeared before an
executive session of the committee to
give his views on what Chairman
Copeland called “controversial amend
ments” proposed for the present Mari
time Subsidy Act.
Chairman Kennedy had proposed
most of the changes in the Subsidy
Act after a critical survey of the en
tire merchant marine.
Stormy protests by organized labor
and Secretary Perkins had brought
a substitute from Senator Guffey,
Democrat, of Pennsylvla. which would
outlaw sit-down strikes at sea. set
up wage standards for aU shipping,
and provide a system of self-arbitra
tion of disputes by unions.
Suggestion mi Building.
Mr. Kennedy also suggested that
subsidized American ships be con
structed In foreign yards whenever
(See MAIUTDA Page A-A)
MILITARY BILLS
Naval Group Warned of
“Concerted Effort” to
Spread Fascism.
By (hr Associated Press.
The House Military Affairs Commit
tee approved today bills to re-estab
lish an Army Reserve of enlisted men
and to increase the authorized number
of Regular Army commissioned offi
cers to 14.659.
Meanwhile, the House Naval Affairs
Committee heard Representative
Scott, Democrat, of California say this
Government should recognize the pos
sibility of a concerted effort by Ger
many, Italy and Japan to "spread
Fascism to the United States." Mr.
Scott issued his warning during ques
tioning of Representative Fish. Re
publican, of New York concerning the
iatter's opposition to the $800,000,000
naval expansion bill.
The Military Committee, Chairman
May reported, postponed* until next
Wednesday action on a bill intended
to prevent war-time profiteering.
Mr. May declined to disclose the
reason, but Representative Maverick.
Democrat, of Texas, an opponent of
tne measure, said smilingly that "some
dirty so-and-so was filibustering."
Reserve of 75,80$ Men.
Representative May said the enlisted
Reserve legislation recommended by
President Roosevelt was intended to
establish a Reserve of 75,000 men in
four or five years. He said the cost
would be approximately $3,000,000.
The officer measure would permit an
increase of about 2.000 commissioned
officers in the Regular establishment,
he said.
Only men with military experience
who are under 36 years of age would
be enlisted in the Reserve. War De
partment officials said they expected
70 per cent of the privates who leave
the Army to go into the Reserve.
In inactive status their pay would
be $24 a month. The President could
call them to active duty only in an
emergency.
In the Naval Committee, Representa
tive Scott, referring to the anti-Com
munistic pact signed by the three pow
ers. said:
"Japan's espionage is well known,
and the propaganda being soread in
South America by Germany and Italy
is likewise well known.
"I believe this Government should
recognize the possibility of a con
certed effort on the part of those
three nations to spread Fascism to the
United States by one means or an
other."
Sees Neutrality in Danger.
In reference to Representative Fish's
advocacy of invocation of the neutral
ity act against Japan in the current
Far Eastern crisis. Mr. Scott declared
such action would “endanger” this
country’s neutrality rather than pro
tect it.
Representative Scott asserted the
United States “could not fear too
much the possibility of an illogical
action by Hitler. Mussolini and the
Mikado.”
Mr. Fish replied that might be true
Ot each of those rulers at home, but
he expressed belief they all had their
hands too full of domestic troubles to
give this country cause for worry.
Mr. Fish later told the committee
State Department officials had in
formed hta Japan had agreed to stop
all sklmon fishing off the Alaskan
coast.
Alaska "Bloodshed” Seen.
The New Yorker made this state
ment after Representative Magnuson,
Democrat, of Washington, asserted
there would be “bloodshed” in Alaska
if current conditions are not changed.
"If trouble comes with Japan,” Mr.
(See NAVAL, Page A-5.)
TRANSIT STRIKE ENDS
Twin Citiea Completely Without
Service for Night and Day.
MINNEAPOLIS. Feb. 16 (^.—Resi
dents in the Twin Cities rode to work
today, as the rumble of street cars
heralded the end of a walkout that
paralysed transportation for a night
and a day.
The walkout started Monday morn
ing when employes at one station re
fused to operate cars in protest against
the use of one-man cars. It ended
shortly before midnight last night
when workers voted to accept a settle
ment offered by the company.
The proposal provided that the com
pany would continue to operate two
man can and give SO days’ notice of
any future chanc*.
SALES TAX FRIENDS
Statement of Chairman Fol
lows Clash With Civic
Leaders.
DIRKSEN CHALLENGES
CARRUTHERS’ARGUMENT
Statement That Majority in D. C.
Favor Levy Is "Bunk,” Rep
resentative Says.
BACKGROUND—
Despite support for a sales tax
from civic and trade organizations.
Fiscal Affairs Subcommittee of the
House District Committee in its
1939 revenue bill for the city has
recommended adoption of income
tax, retention of the business privi
lege tax and continuation of the
SI.75 real estate tar.
By JAMES E. CHINN.
Advocates of a sales tax lor the Di.'
trict were told today by Chairman
Nichols of the House District Subcom
mittee on Fiscal Affairs that they were
"wasting their time" in appearing be
fore his group.
This blunt statement came after
District civic leaders, urging adoption
of a sales tax in lieu of other proposed
budget-balancing taxes, had clashed
several times with members of the
subcommittee which is holding hear
ings on the 1939 revenue bill.
The first outbreak came when Rep
resentative Dirksen, Republican, of Il
linois, who championed the income tax
plan in the bill, challenged a state
ment of L. A. Carruthers. president of
the Federation of Citizens’ Associa
tions and chairman of the Citizens’
Advisory Committee on Taxation, that
a vast majority of the people of the
District favored a sales tax
Basis for Statement Given.
“That’s the merest bunk to say a
majority of the people of the District
favor a sales tax,” declared Mr. Dirk
sen. "I'd like to see the justification
for your statement. It seems to me
you just reached out into thin air and
grabbed it.”
Mr. Carruthers explained that the
Federation, representing from 25.000
to 30.000 District residents, had ap
proved a sales tax and that the Wash
ington Board of Trade, with 4.000
members, indicated a preference for
it over other proposed forms of tax
ation.
win you admit tor the record that
[ a majority of the people favor the
sales tax?” Inquired Mr. Dirksen.
"I wouldn’t admit anything of the
kind,” Mr. Carruthers responded. “Our
belief is based on action of the Fed
eration and member bodies. I do
have a foundation for that statement.”
Mr. Dirksen next inquired if a poll
of civic organization representatives
had been taken to learn their views.
Mr. Carruthers said a poll was con
ducted by only one neighborhood affili
ate with the Federation—the Chevy
Chase Citizens' Association. Ques
tionnaires were sent to 1,600 members
of this organization, he pointed out.
and 75 per cent of those who replied
voted in favor of a sales tax.
“It is surprising to me you try to
reach a conclusion from a few who
replied.” declared Mr. Dirksen. “Did
you talk with the housewife? Did you
talk with those who carry lunch
boxes? You didn't talk to the people
who would be most affected by a sales
tax.”
Point of View Debated.
Chairman Nichols then broke into
the discussion and asked:
“Don’t you think it strange tho la
boring man. the Government employe
and the secretaries would suddenly
reach such a magnanimous viewpoint
to take on a sales tax rather than see
ing the business man pay the business
privilege tax and take the trouble to
keep the records for such tax pay
ments?”
“On the contrary." replied Mr. Car
ruthers. “it is anything but a magnani
mous attitude. It's a business propo
sition.”
Mr. Dirksen called attention to
President Roosevelt's recent message
to Congress in which he indicated
opposition to a sales tax. and drew
from Mr. Carruthers an admission
that such a levy would add to the
burden of the poor man, but would
not relieve the wealthy.
Mr. Carruthers, however, said he
interpreted the President's pronounce
ment on a sales tax to mean that
imposition of such a levy should be
left to the individual States rather
than to Federal Government.
"That was certainly not my in
terpretation,” declared Mr. Dirksen.
Wood Defends “Poor Folks.”
Next, Representative Wood, Demo
crat, of Missouri joined in the discus
sion.
‘‘Would you put more taxes on the
poor just to make them tax con
scious?” he asked. "It seems to me a
reflection on the poor folks when you
propose to clamp a sales tax on them
to make them tax conscious.”
Another clash came when Joseph
H. Batt of the Board of Trade ex
plained that the 4,000 members of
that organization had been circularized
about their views on the tax program,
and of the more than 500 replies re
ceived 90 per cent selected a sales tax
as first choice.
“That's only 10 per cent of your
membership.” remarked Mr. Dirksen.
who then asked why board members
had shown such a lack of Interest.
Mr. Batt explained It was not be
cause of a general indifference, but
iSee"dTcCtAXES, Page A-7J
Fireman to Become Honk.
ELIZABETH, N. J., Feb. 16 UP).—
Michael Anton, 31, has turned in his
fireman's togs to don the robes of a
monk.
A fireman for eight years and a re
cent widower, he has spent a s.x
months’ probationary period in the
Christian Brothers Monastery order
an<l last night handed his resignation
to the fire eomnissionere.

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