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Evening star. [volume] (Washington, D.C.) 1854-1972, February 23, 1938, Image 1

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(U. 8 Weather Bureau Forecast.)
Rain tonight and possibly tomorrow;
cloudy and colder tomorrow afternoon;
minimum temperature tonight about 36.
Temperatures today—Highest, 44, at 3
p.m.; lowest. 39. at midnight.
Pull report on page A-2. ,
Closing New York Markets, Page 16
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
iA>) Mean* Associated Press.
86th YEAR. No. 34,266.
Entered as second class matter 'T'TJ'DTr'TT rif vrro
post oace, Washington. D. C. lxlK.bj.fcj CKNTS.
- •%
8 Killed, 29 Hurt
in Raid, Sav
40 Ships and 2 Hangars
Destroyed, Hankow
Reports Say.
(Map on Page A-4.)
By the Associated Press.
TOKIO. Feb. 23.—Chinese warplanes
today raided Japan's island colony of
Formosa, killing at least eight per
sons and wounding 29 in the first aerial
•bombardment suffered by any part of
the Japanese empire.
The Formosa government announced
that theree of seven persons killed at
Taihoku. the Colonial capital, were
children. One person was killed at
Shinchiku City, near the island's
northwestern coast.
Chikuto, near Shinchiku, also was
raided and Domei, Japanese news
agency, said several civilians were
killed there. These were not included
In the government figures.
Japanese accounts said seven planes
took part in the raids.
(Chinese reports from Hankow
declared there were 70 planes in
the airfleet. from a base on China's
southeastern coast, including Rus
sian-made craft flown by pilots of
undisclosed nationality. The Chinese
figures were discounted by foreign
authorities in Shanghai.
(The Hankow reports said 40 Jap
anese planes, 2 hangars and a
gasoline storage tank were de
stroyed at the Taihoku air base.
, The raid was the first of a new air
campaign, they indicated.)
Tokio Excited.
News of the raid caused great excite- ,
ment in Tokio. where the population
of over 6.000.000 was made conscious
of the perils of air attack by air de
fense maneuvers which began today
in the Tokio-Yokohama area. Pre
viously the Japanese public had been
led to believe Japanese air forces had
complete command of the air in China.
It was the first time since 1864,
_ when a British-French-Dutch fleet
* bombarded Shimonosqki, that terri- j
tory of the Japanese empire had been 1
subjected to hostile foreign bombard- !
An nour oeiore noon, tne raiders 1
swung over the Japanese air base on j
the outskirts of Taihoku, Formosan
capital, and dropped 10 bombs. A
city of 276.000, Taihoku is near the
northern tip of the island, approxi
mately 120 miles east of the south
eastern coast of China. There was
only slight damage to the field. j
Western Coast Bombarded.
The raiders then bombarded poirits
In Shinchiku Province, on the west- j
ern coast of the island.
An army communique charged that
the Chinese planes killed or wounded
women and children at Taihoku and
Shinchiku City.
It said that “an obscure number” |
of planes appeared over the colonial J
capital, flying at such an altitude 1
, that anti-aircraft guns were unable
to reach them. "Consequently the
bomb6 landed far from the local air
drome, hitting private houses and
causing several casualties among
women and children. There was no
serious damage.”
The communique said Shinchiku
city was bombed in the same manner
an hour later.
A general air alarm was sounded
throughout the island, and the "all
clear” signal was not given until
3:42 p.m.
• The 1864 bombardment of Shimono
seki, at the western entrance to
Japan's inland sea, was in reprisal for
Japanese shore batteries firing on
foreign merchant ships, including
American vessels.
The last enemy to attempt an in
vasion in force of Japan was the great
Mongol conqueror and Emperor of
China, Kublai Khan. Two armadas in
1274 and 1281 failed to effect a land
ing on Japanese shores. A typhoon
came to the rescue of the Japanese in
the 1281 repulse of the great Khan's
More Raids Hinted.
SHANGHAI. Feb. 23 (/P).—Russian
made planes flown by pilots of un
disclosed nationality carried out a
Chinese air raid on the Japanese
island colony of Formosa today, said
Chinese dispatches from Hankow
A Chinese “foreign legion of the
air,” containing numerous American,
Russian. British and French vol
unteer flyers, recently has been re
ported active in China's aerial war
The Chinese reports said heavy
damage was inflicted at strategic loca
tions on the island's western shore.
The Chinese reports said the air
armada bombed western portions of
Formosa, its capital, Taihoku, and
other points far to the south. They
said the expedition struck with light
ning speed from a height of about
15,000 feet and returned unscathed to
its base.
Ostrich Flumes to Be Style, King
George Announces.
LONDON. Feb. 23 (/P).v-Ostrich
feathers are "coming bfeck into fash
ion.” so says King Georgs.
* The King commented on a visit to
the British industries fair when he
inspected the South African booth.
Said a stylist of the prediction: “It
is well known the Queen likes to wear
an ostrich feather—it also is A good
boost for empire industry.”
M’Nutt, From His Bandwagon,
Denies Any Presidential Aims
Hoosier Says Philippine
Relations Are Getting
All His Attention.
Dashing in all habits. High
Commissioner McNutt has blazed a
spectacular trail half way across
the world as he hastened home
from his Philippine post in time for
a series of McNutt-for-President
political receptions. One episode en
route backfired when the War De
partment "set down” Col. Daven
port Johnson, one of its ace avi
ation officers, after he had flown
the handsome Hoosier from San
Francisco to a Denver political
(Additional story on Page B-l.)
PAUL V. McNUTT. high commis
sioner to the Philippines and
Indiana's ''threat" in the Dem
ocratic presidential race in
1940. rolled into Washington early
today to find a boom already launched
by his friends.
Almost immediately afterward, at
a press conference, the former Gov
ernor of Indiana declared:
"I am not a candidate for any pub
lic office. I am giving my time, at
tention. thought and energy to Ameri
can-Philipplne relations."
This was his answer to a question.
“Will you be a candidate for the Demo
cratic presidential nomination in
There was, however, a lack of final
ity about Mr. McNutt's reply to the
question. This was emphasized a mo
ment later when it was suggested by
an interviewer that perhaps his
friends, who are staging a big recep
tion for him at the Mayflower Hotel
this afternoon, had "put him out on
a limb."
‘‘Defends'’ His Friends.
"My friends in Indiana have never
placed me out on a limb." was the in
stant response of the prematurely
gray, tanned and handsome high com
missioner. He spoke quickly and with
a smile.
If his Indiana friends needed any
encouragement in their drive to place
Mr. McNutt in the running for the
Presidential nomination, .they could
have had it in that answer.
"Are you in favor of a third term for
President Roosevelt?” was the next
political question asked.
"That's a question the President will
have to answer for himself,” said Mr.
McNutt. Beyond that, he did not
commit himself.
His own supporters have taken it
for granted that President Roosevelt
will not be a candidate to succeed him
self. They believe this is the time to
strike in the interests of Mr. McNutt
in the National Capital, where so many
Democratic leaders from all parts of
the country are gathered.
Visit May Last Three Weeks.
Mr. McNutt revealed today his visit
to Washington would cover at least
three weeks. He is to appear before
the Appropriations Committees of the
House and Senate in connection with
recommendations for the office of
High Commissioner in the Philippines,
and fclso to talk with other officials of
the Government regarding Philippine
affairs—the chief official being Mr.
Roosevelt himself.
During his stay here McNutt sup
porters will seek to convince Demo
(See McNUTT7Page~A^iT)
- ->
Two Men Identified as Robbers
and Ex-Convict All Carried
.32-Caliber Pistols.
By the Associated Press.
CHICAGO, Feb. 23.—Two men
identified as robbers and an ex
convict were questioned today by de
tectives searching for the slayer of
Dr. Max B. Sammet, German expa
When arrested, all three carried .32
caliber pistols, the type used in killing
Dr. sammet.
Police Capt. John Stege expressed
the belief Dr. Sammet, 43 years old,
was slain in an automobile by robbers.
He admitted there was no evidence
the victim had been robbed.
Investigators still considered a
theory that Dr. Sammet was killed
because of anti-Nazi activities.
The police said they had been in
formed Dr. Harry M. Seldin, a dentist
of Peekskill, N. Y„ and friend of the
slain man, was the source of some of
Dr. Sammet’s income. Dr. 8eldin
said he had sent Sammet money for
his schooling because the latter’s
funds in Germany had been seques
tered by the government, Investi
gators reported.
Paul V. McNutt greeting his
Capital fans on arrival at
Union Station this morning.
—Star Staff Photo.

Relief Vessels on Way to Assist
Disabled Freighters Slowed
by Storm.
By the Associated Press.
BOSTON. Peb. 23.—Storm-tossed
seas delayed relief vessels speeding
today to the aid of four disabled
freighters in the North Atlantic.
Two vessels, the 2,357-ton Nor
wegian freighter Victo and the 5,588
ton American cargo boat Azalea City,
had lost propellers.
The steering gear of the 2,404-ton
Latvian freighter Everhope was car
ried away 300 miles off Capt Race,
Newfoundland, on her way from
Antwerp to New York, and the 1,200
ton British motor ship Lycia was
disabled by engine trouble 750 miles
east of Bermuda.
The Victo, bound for European ports
from Norfolk, Va., fought heavy seas
negr the Azores while awaiting the
arrival of the Dutch tug Sea Foam
from Horta.
The Azalea City, owned bs. the
Waterman Steamship Co. of Mobile,
Ala., and operating between Gulf
ports and Europe, wallowed in a gale
135 miles southeast of Cape Race,
awaiting the salvage tug Relief from
New York. The Coast Guard cutter
Chelan and the Halifax salvage tug
Foundation Franklin stood by, the
cutter still unable to get a tow line
aboard the freighter.
The Lycia and the Victo reported
they were in distress last night. The
motor ship was bound for Phila
delphia and Norfolk, Va., from Fowey,
Attempt to Damage Amity With
IJ. S. in Mazatlan Report Is
* Charged by Tokio.
By the Associated Press.
TOKIO. Feb. 23.—The foreign office
spokesman today denied reporta Japan
and Mexico were contracting for
Japanese engineers to do construction
work at Masatlan Harbor.
"We are inclined to suspect the
rumor was spread by persons at
tempting to daniage the good under
standing between the United States
and Japan,” the spokesman said.
Beck to Viiit Borne.
WARSAW, Feb 23 OP).—Foreign
Minister Joseph Beck of Poland is ex
pected to go to Rome on 'or about
March 7 to confer with Premier Mus
solini. The exact date of his depar
ture has not been set Officially, how
More Held Receiving Checks
Than Population of Those
65 Years Old.
Statistics Show 589 of Every
1,000 Persons Eligible
Are on Rolls.
By (he Associated Press.
The Social Security Board today
heard that in three counties in Okla
homa more persons were receiving
old-age pensions than the estimated
population of those more than 65
years old.
Rose J. McHugh, one of the board's
investigators, made that statement at
the board's hearing on charges that
the social security law had been vio
lated in administration of Oklahoma's
old-age pension plan.
Only those more than 65 are eligible
to pensions. In 19 counties. Miss
McHugh said, more than 75 per cent
of the estimated population more
than 65 were on the pension roll*.
The board has charged the State
with granting pensions to those not
needing them, refusing pensions to
those in need and failing to comply
with the State pension plan approved
by the board.
Board statistics show 589 of every
1.000 persons more than 65 years old
are on the pension rolls.
Thomas Makes Plea.
White - haired Senator Thomas,
Democrat, of Oklahoma opened the
hearing with a plea for Oklahoma's
"old folks." The State, he said, was
in "bad shape" because of depression
and drought.
"I do not blame the aged people
who are hungry, cold and homeless
for trying to get some assistance," he
After expressing hope that "this
hearing will not develop into a politi
cal contest," Senator Thomas said he
also hoped the board would work out
some way to continue pensions for all
those now receiving them.
Arthur J. Altmeyer, Social Security
Board chairman, said neither Senator
Thomas nor any other Congressman
had put any pressure on the board and
that the Oklahoma congressional del
egation was to be commended for its
Boren Asks Exhibits.
When the board started to present
its case. Representative Boren, Dem
ocrat, of Oklahoma broke in to say
that "the old people of Oklahoma
ought to be made an exhibit" since it;
was in their interest that the Social!
Securitly Act was passed.
Mr. Altmeyer asked Mr. Boren if
there were any practical way of doing
that and Mr. Boren replied that he
warned the record to show their inter
ests. Shortly thereafter he left the
Others who attended included Sen
ator Lee and Representatives Mas
singale, Smith and Disney, all Demo
Miss McHugh said the Oklahoma
State Welfare Commission had "failed
to assume proper responsibility for
carrying out the program.”
The board issued its orders through
bulletins, she said, which local admin
istrators were not able to understand
both because of their language and
the frequent changes in policy.
She cited five changes in policy re
garding pensions for aged who had
When the plan first went into effect.
Miss McHugh said, the State Board
decided that an aged person was in
eligible for a pension if he had been
dependent on relatives in the past.
Some time later, she said, local ad
ministrators were allowed to determine
whether individual aged persons should
get pensions under a rule that "no
one would suffer.”
Miss McHugh also told the board
the State Commission had been unable
to build up a satisfactory staff of
welfare workers because it had no
merit system and that statements of
commissioners tended to discourage
any one from thinking he could get
a permanent job on the staff.
Meanwhile, it was disclosed that in
vestigators for the Social Security
Board are at work in several other
States to determine the honesty and
effectiveness of State systems for ad
ministering assistance to the aged, the
blind and dependent children.
Son Flies to Father’s Side.
Condition Held “Entirely
By thf Associated Press.
TUCSON. Ariz.. Feb 23.—Physicians
attending Gen. John J. Pershing said
today, following a lengthy consulta
tion. that the 77-year-old World War
leader "is definitely better."
A statement issued by Dr. Roland
Davison after he and Lt. Ool S. U.
Marrietta had completed an examina
tion said the condition of his heart,
which caused considerable anxiety yes
terday and last night following a sud
den relapse, "is entirely satisfactory.”
"Col. Marrietta and myself have
just completed an examination of Gen.
Pershing." said the bulletin. "There
is very definite improvement in his
condition since the last bulletin issued
last night.
"His lungs are perfectly normal.
His blood pressure is deflintely better.
The condition of his heart is entirely
"He had a much better night and
is entirely free from pain. He ate a
good breakfast and is mentally alert.”
Son Rushes to Side.
Dr. Davison said the next bulletin
would be issued around 7 p.m.
(E. S. T.i.
Gen. Pershing, ill more than a week
from rheumatism and a heart compli
cation. was removed from his hotel
quarters to the desert sanatorium yes
terday afternoon after he suffered his
first relapse, and Col. Marrietta. heart
specialist, was ordered here by the
War Department as a consultant.
Shortly before midnight Col. Mar
rietta and Dr. Davison ended their
first consultation with the announce
ment that they were "not entirely
satisfied with his heart,” but express
ing optimism over his general condi
tion. They said his condition was
serious "merely because he is getting
on in years."
An only son. Warren Pershing,
boarded a plane at Palm Beach, Fla.,
this morning to rush to his father's
bedside. The general's sister. Miss
May Pershing, also remained close
to the general.
Went to Bed Week Ago.
Col. Marrietta. Miss Pershing and
George A. C. Christiancy of New York,
an old friend of the general’s, were
quartered in nearby rooms at the
desert sanitarium 4 miles east of
Master Sergt. C. G. Shaefer, the
general’s secretary, chauffeur and
traveling companion for a number of
years, also was on hand.
Col. Marrietta and Sergt. Shaefer
were the only military men admitted
to the bedside of Gen. Pershing, one
of only six men in history to hold the
rank of general of the armies of the
United States for life.
The general, spending his sixth
winter here, was ordered to bed in his
hotel suite a week ago when he com
plained of rheumatic pains as he pre
pared to attend a charity ball with
Miss Pershing. He was reported to
have been making steady progress
until the first relapse yesterday.
__ 0 _*
Summary of Today's Star
Page. Page.
Amusements B-16 Radio .B-9
Comics .B-14-15 Serial Story B-5
Editorials --- A-8 Society . B-3
Finance --- A-15 Sports A-12-14
Lost & FoundB-16 Woman's Pg. A-ll
Obituary ...A-H
Chinese bomb Formosa with Russian
planes. Page A-l
Decisive action looms in Spanish Civil
War. Page A-4
Million Austrian workers back
Schushnigg. Page A-4
Chamberlain foes demand election on
foreign policy. Page A-4
Social Security Board probes Okla
homa payments Page A-l
$855,000,000 in U. S. grants for schools
urged. Page A-l
Heavy seas delay aid sent to four
ships. Page A-l
McNutt says he is not a "candidate for
any public office.” Page A-l
Reporters barred from fleet maneuvers
in Pacific. Page A-l
Illness threatens Gen. Pershing's
life. Page A-l
Ickes’ Anglo-American unity call stirs
speculation. Page A-2
8. Parker Gilbert, Morgan partner,
dies in New York. Page A-2
Roosevelt keeps silence on European
situation. Page A-4
Senator Walsh opposes pension to Har
rison’s widow. Page A-5
Floods threaten to force evacuation of
Fulton, Ark. Page A-5
Tax on beer here advocated by Colla
day. Page A-l
House group sets public hearing on
"numbers” bill. Page B-I
Rent quarrel murder trial opens in
District Court. Page B-l
Senate gets plea for increase in D. C.
relief fund. Page B-l
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
Shipping News. PageA-17
Vital Statistics. PageA-17
Nature’s Childern. Page B-10
Bedtime Story. Page R.ig
Cross-word Puzzle. Page B-14
Letter-Out. Page b-14
Winning Contract. Page B-15
City News in Brief. Page b-18
. ■ ■■ I
Soviets Reveal
Execution of
2 Navy Chiefs
B> the Associated Press.
MOSCOW. Feb. 23—The secret ex
ecution of two former commanders of
the Soviet Navy was disclosed today in !
published versions of a speech by Com
missar of War Klementi E. Voroshiloff.
The two were Admiral Vladimir R.
Orloff, who was ousted as commander
in chief of the Russian Navy last year,
and Admiral A. K. Sivoff, who had
been replaced as admiral of the Baltic i
Voroshiloff. speaking last night on
the eve of the Red Army's 20th anni- j
versary, named Orloff and Sivkoff in
a group with the executed Marshal;
Mikhail Nikolaevitch Tukhachevsky
and a half dozen others as "Fascist
bandits, traitors and spies" who have
"been wiped off the face of the earth.”
Press Barred Fom All
Fighting Craft—Cost of
New Fleet Given.
On January 28. President Roose
velt informed Congress that efforts
to guarantee world peace were be
j ing unproductive and recommended
that America spend S800.000.000 on
naval building. During hearings
on authorization bill, suggestion was
made that fleets of equal strength
be maintained in both Pacific an<f
Atlantic. Others opposed program
as leading us into war.
By the Associated Press.
The Navy surrounded with war
I time secrecy today its forthcoming
fleet maneuvers in the Pacific, where
more than 50.000 men and officers
will test the fighting strength of 150
war craft.
Naval officials disclosed the secrecy
order while the House Naval Commit
. tee heard Rear Admiral William G.
, Du Bose, chief of naval construction,
| testify it would cost $3,200 000,000 to
provide a separate fleet to defend the
Atlantic Coast.
The Navy’s order barred newspaper
I representatives from all the fighting
| craft which will maneuver over the
j Pacific from Alaska to Samoa and the
Panama Canal from the middle of
March to late April.
The decision, the Navy said, was
made by Secretary Swanson after con
ferences with Admiral William J.
Leahy, chief of operations, and the
fleet commander in chief, Admiral
Claude C. Bloch.
Problem Highly Confidential.
The only explanation given was that
fleet problem No. 19, to be worked
out in six weeks of mock warfare,
was ’’highly confidential.”
Officers said that only once before
have newspaper representatives been
barred in recent years. That was in
1936, when Admiral Joseph M. Reeves
was the commander in chief.
Publicity this year, the Navy said,
will be Jimited to interviews with Ad
miral Bloch before and after the war
Testifying before the House Com
mittee, Admiral Du Bose said an in
dependent Atlantic fleet would require
166 fighting ships costing about $2,
800.000,000 and 53 auxiliary vessels at
a cost of approximately $400,000,000.
Such a fleet, he said, could be built
in about 10 years if the facilities at
both Navy and private shipyards were
expanded sufficiently.
Brewster’s Questions Answered.
Admiral Du Bose outlined the size
and cost of an Atlantic fleet in re
sponse to questions propounded days
ago by Representative Brewster, Re
publican, of Maine.
The admiral said his figures had
been compiled after consultation with
Admiral Leahy about the number and
type of vessels such a fleet would re
Admiral Du Bose said the fighting
craft necessary for adequate defense
(See MANEUVERS, Page A-3.)
Ends ‘‘Liquid Diet” Fast.
LOS LUNAS, N. Mex.. Feb. 23 <IP).—
W. B. Cassady broke his self-imposed
"liquid diet” fast in Valencia County
Jail today after he was given two
photographs of Rose Garcia, the
housemaid he is accused of slaying.
The 43-year-old business man had
eaten no solid food for 23 days.
ask ran
Advisory Committee on Edu
cation Recommends Sums
Be Given States.
By the Associated Press.
President Roosevelt transmitted to i
Congress today a report of the Advisory I
Committee on Education, recommend- I
ing new Federal grants of S855.000.000
to States during the next six years to |
improve their public schools.
The grants, to begin a year hence at
$70,000,000, would be increased ap- !
proximately $30,000,000 each of the;
two following years and $20,000,000
each year thereafter until they reach
$199,000,000 in 1944-5. These grants
would be in addition to the perma
nently authorized Federal grants of
more than $50,000,000 a year for vo
cational education.
The report said the recommenda
tions were based on ‘’more than a year
of exhaustive study.” Mr. Roosevelt
appointed the committee in 1936 un
der the chairmanship of Floyd W.
Rdevea of the University of Chicago.
Improvement Needed.
In its general conclusions, the com
mittee found:
"The public school system in the
United States greatly needs improve
ment. Glaring inequalities charac
terize educational opportunities and
expenditures for schools throughout
the Nation.
"The level of educational service that;
can be maintained under the present
circumstances in many localities is
below the minimum necessary for the
preservation of democratic institutions.
“Federal aid is the only way in which
the difficulties in this widespread and
complex situation can be adequately
The committee proposed division of
the new grants into six major cate
gories. as follows, the first sum being
for the starting year of 1939-40 and
the second for the maximum in 1944-5:
1. General aid to elementary and
secondary education, $40.000.000—
2. Improved preparation of teach
ers, $2,000.000—$6,000,000.
3. Construction of school buildings
to facilitate district reorganization,
4. Administration of State depart
ments of education, $1,000,000—$2 -
5. Educational service for adults,
6. Library service for rural areas,
Poorer States Should Be First.
The report emphasized that the j
first item should be distributed among
the States in proportion to their finan
cial needs. The share of wealthy
States, it said, must be small if the
schools are to be materially improved
in poorer States.
Among the more significant recom
mendations were proposals that pupils
of parochial and other non-public
schools share to a limited extent in
the grants.
Part of the general aid fund, it said,
should be spent in such schools for
textbooks and reading materials, trans
portation of pupils, scholarships for
pupils 16 to 19 years of age. and for
health and welfare services.
The committee recommended an
equitable distribution of the Federal
funds between white and .Negro schools
in States where separate Negro schools
exist without reducing the proportion
of State and local funds spent on
Negro schools.
The Civilian Conservation Corps and
the National Youth Administration,
the committee said, should be placed
under the direction of a single Federal
agency to be known as the Federal
Youth Service Administration.
In addition to the grants the com
mittee recommended creation of a re
search fund of $1,250,000 for the fiscal
year beginning next July and increas
ing to ‘$3,000,000 for later years.
In^o-China Prepared for Any In- 1
vasion, Says Buhrer.
MARSEILLE, France. Feb. 23 </P).—
French colonial defenses were declared
today by the staff of Insp. Gen. Jules i
Buhrer to be "all ready” in the event
of any invasion of Indo-Chlna by
foreign powers.
Gen. Buhrer, recently named inspec
tor general of all conial troops, ar
rived here from Saigon, Indo-China.
to report to Defense Minister Edouard
Daladier on war preparation! in
France’s Oriental Colony.
Levy, With $1.60 Real Es
tate Assessment, Sufficient
for Needs, He Says.
rrade Body President Opposes
Proposal to Establish Board
of Appeals.
A local tax on beer and a $1.60 real
(state tax rate will raise sufficient rev
>nue to keep the municipal government
>ut of the red in the coming fiscal
•ear. Edward F. Colladay. president
>f the Washington Board of Trade
odav told the fiscal affairs subcom
nittee of the House District Committee
it a hearing on the 1939 revenue bill.
The present real estate tax rate i*
(1.75, and the bill proposes to re-cstab
lsh that rate in the new fiscal year
Mr. Colladay declared the District
s the only jurisdiction m the United
States which imposes a tax on beer,
ind estimated that sucn a levy would
field the municipal government be
ween $200,000 and $300,000 a year in
idditional revenue.
"Beer was purposely excluded from
.axation when prohibition was re
jealed,” he said, "because it was be
ieved its price should be kept as low
is possible in order to make it more
?asiiy available than hard liquor and
a promote temperance in drinking. It
ias been our observation that the price
if a bottle or glass of beer is no lower
n the District than it is in either one
if our neighboring States and we.
therefore, see no reason why the Dis
:rict should not now levy a tax on
ihis article, as every State in the
Union is doing."
Made "Cnsympathetic.”
Chairman Nichols of the subcom
mittee said he was surprised to learn
that the District did not tax beer, and
"That's what makes it so difficult to
write a tax bill for the District and
makes me unsympathetic—to learn
that the District has escaped taxes
paid by other jurisdictions/'
Mr. Colladay registered vigorous ob
jections to various features of the reve
nue bill, especially the provisions to
impose an income tax on the District
and to continue the unpopular business
privilege levy on gross receipts.
These taxes, he declared, are not
necessary to balance the 1939 budget.
He also explained the only excuse for
new tax legislation would be to provide
iunds to meet an increase in the ap
propriation for relief, and argued that
;uch revenue should be produced
hrough a sales tax.
Says Relief Only Need.
‘■We know that no additional taxes
will be necessary for any other purpose
:han relief,” he said. • and therefore,
why should not the sales tax be used
:o raise funds for this purpose in the
District if the need for additional re
lief money is established?”
Mr. Colladay said if Congress insists
pn continuing the business privilege
tax. outside firms doing business in the
District should not be exempt and pre
licted that an income tax in any form
will not work in the District.
"The House in its last preceding
session.” he declared, "cleiyp^ndtcated
hat any such tax passed by it would
pe so limited in its scope as to be ab
solutely unequal in its application to
pur population. We believe it would
pe only a matter of time until all Gov
trnment employes in the District
would be exempt from the provisions
pf an income tax and that the result
would be the placing of a very heavy
purden upon resident business and
professional men/’
Mr. Coiiaaay told the subcommittee
the present $1.75 real estate tax rate
has resulted in serious hardships to
real estate owners, and declared if it is
pontinued "serious damage will be in
dicted on the basic economic structure
pf the ci{y.”
Says $1.60 Rate High.
A $1.60 rate he said, is a sufficiently
heavy rate at any time.
‘ Many people are misled in esti
mating the burden of real estate by the
fact that the rate in dollars and cents
is extremely low compared with that
in most other cities." he declared.
'When due consideration is given to
the difference in valuation of property
in the District and in other cities, it
will become immediately apparent that
this rate is not low, but extremely
high. Our assessments are required to
se made on a 100 per cent basis, while
we all know that in many cities
throughout the country the assessment
< See D. cTtAX JPage A^3.)
President Sends Nominations of
Army Chiefs to the
President Roosevelt today sent to
he Senate several nominations af
'ecting high-ranking officers of the
These included the following:
To be major generals, Brig. Gen.
lames A. Woodruff and Brig. Gen.
'rank W. Rowell: to be brigadier
tenerals. Cols. Joseph M. Cummins,
nfantry; Richard C. J^pore, Corps
if Engineers: Karl Truesdell, infan
ry, and Fulton Q. C. Gardner, Coast
trtillery Corps.
Col. Emory Sherwood Adams to bs
idjutant general with the rank of
najor general, succeeding Maj. Gen.
E. T. Conley, retired.
Col. John K. Herr to be chief of
javalry with the rank of major gen
•ral, succeeding Maj. Gen. L. B.
Kromer, whose term expires.
Col. Robert M. Danford to be chief
>f field artillery with the rank of
najor general, succeeding Maj. Gen.
Upton Bimie, whose term expires.

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