«
LEW IS FOUGHT
20 Per Cet Surtax Would
Be Aimed at Family
Controlled Firms.
BT the Associated Press.
The House fight over the adminis- j
tration's tax revision program cen- !
tered today on a proposed new levy ;
on corporations owned by families or a
few individuals.
Republicans who have denounced i
the legislation in its entirety had the
open support of some Democrats in
their opposition to this provision.
Democrats who spoke for the bill i
. during 4 hours and 51 minutes of J
debate yesterday concentrated notice- i
ably on arguments in favor of the levy I
, —a 20 per cent surtax, after certain
deductions, on closely-held firms whose
Income exceeds $75,000.
Emphasizes Purpose.
“ Pounding his points home with loud
band claps. Representative Vinson.
Democrat, of Kentucky contended the
purpose of the tax was to obtain ap
proximately the same amount of rev
enue from a closely-held corporation
as from a comparable firm having
wide stock ownership.
"The tax is not the bugbear, not the
horrible thing, that's been held up to
you," he said.
Leading the campaign against the
levy was Representative McCormack,
Democrat, of Massachusetts, who was
preparing a reply to Mr. Vinson’s
arguments.
, Demands for outright repeal of the
undistributed profits levy, which would
be modified considerably by the bill,
appeared to be a source of less worry
to proponents of the legislation.
They did not reply when Repre
sentative Reed, Republican, of New
York asserted yesterday that a "few
men who a pulling the strings behind
the scenes" were insisting on its re
tention.
Mr. Reed declared those individuals
regard the levy as the first step "in a
planned economy program by which
the industries of the Nation will be
fully dominated and controlled by the
Government."
Declared Tax Haven.
A new note entered the debate when
Representative Voorhis. Democrat, of
California called for elimination of
tax exemption for Federal, State and
municipal securities, which he de
acribed as a tax haven for the wealthy.
„ The House will not reach a vote on
the measure until next week, after
which the Senate must consider it.
Representative Vinson said the legis
• lation would produce revenue of about
*5.300.000.000 a year, *22,000,000 less
than the present law.
■-—-- . 9
MRS. CLAUSEN DIES
Word Received From Daughter in
Canal Zone.
Word has been received here of the
death of Mrs. Mary Clausen, 89. widow
of the late Rev. Neils Clausen, on Feb
* ruarv 26 of pneumonia at the home of
her daughter, Mrs. C. Leslie Stilson, in
Balboa, Canal Zone.
Surviving are her daughter. Mrs.
Stilson, and two grandsons In Balboa;
• son, Floyd Clausen of Portland.
Oreg.: a sister. Mrs. Charles Wilcox,
and a niece. Miss Leila Wilcox of Ta
koma Park. Md.. and two nephews.
Waldo Wilcox of Washington and
Fenton Wilcox of Wilmington. Del.
Roosevelt
(Continued From First Page t
Ing high salaries to their officials
who own the corporations, may say
that they cannot afford to improve
working conditions and to pay better '
wages, the President said, when ar
' tually they were making large amount.';
©f money. He said also that com
peting businesses have a right to know
what these closely held companies
•re making.
■'There is no reason for the repeal." |
•aid the President. "It is a question ;
of morals.”
The President was asked wnether |
he believed that there should be pub- ;
lication of income taxes. He pointed 1
out that they are not public today
and that he didn't care one way or
the other.
The President denied that congres
sional leaders had told him at a
White House conference that a wages
«nd hours bill could not be passed at ’
this session.
While he was discussing the ob
jectives of his administration, the
President referred newspaper men to 1
the statement he had made on June
1. 1935, to Robert Cromie. editor of ;
the Vancouver Sun. At that time !
he Mid;
“Tb? social objective, I should sav, |
remains just what it was. which is
to do what any honest government j
of any country would do; to try to j
Increase the security and the happi- j
ness of a larger number of people in
all occupations of life and in all
parts of the country; to give them
more of the good things of life; to
give them a greater distribution, not j
only of wealth in the narrow terms,
but of wealth in the wider terms: to
give them places to go in the summer
time—recreation; to give them as
*itrance that they are not going to
starve in their old age; to give honest
business a chance to go ahead and
make a reasonable profit, and to give i
•very one a chance to make a living.” j
Oontinijing his discussion the Pres- j
•dent said; "We have accomplished ■
an enormous amount. Through the i
Crop Surplus Control Act we will
hold up the purchasing power of the
farmers ”
He added this is "all to the good for
the Industrial worker." It is only re
cently. he said, he had been able to
get industrialists to admit this.
Too many people, the President said. !
confuse objectives with methods. As
an example, he said that a year ago
the administration, fearing a period
of inflation, had put the helm of the
•hip of state hard astarboard, to pre
vent the ship from leaving her course,
last autumn, he said, the wind shifted,
and the administration had shifted
the helm to hard aport. This, he said,
was done to keep the ship of state on
It* course. Yet many call this a change
tn policy, said the President.
The President said that one of the
principal objectives of the administra- j
tion was to increase the purchasing
power of the people. He said that
, whan some of his good friends, men of
high character, came to see him he
had asked them what should be done
• about the share-cropper and the ten
ant farmer.
“What do you think we ought to
do?” the President said he asked.
^Invariably the answer was,” said j
Highways Destroyed in California Flood
These two cars were wrecked when a bridge at Del Mar, Calif., was wrecked by the flood.
ii mu ii . i nm i mi in Hull int ■ m ii :*rrr —iwt irfrifarT iHMWBMI
A section of the Ventura Boulevard leading into Los Angeles, as it appeared when flood waters
began to recede after taking heavy toll of life and property. Copyright, A. P. Wirephotos.
. . i
| the President, ‘‘that- these men hat
j never thought of this question."
! The President said he pointed ou
that 15 or 20 million Americans, in
cluding the share-croppers and ten
ant farmers, have no purchasing
power. These business men. he said
j were making things and they ought
to be interested in a solution of thit
problem, and giving these people pur
chasing power.
An encouraging thing, the President
said, is that these people are begin
ning to think. The President also said
I that he was encouraged to believe that
“we are getting away from the pressure
groups who come down here to gel
special legislation."
Hits McKeilar Proviso.
Questioned about the McKeilar
amendment, to the independent office*
appropriation bill, calling for con
firmation by the Senate of all Federal
officials receiving a salary of $5,000 or
more, thp President spoke disparag
ingly of the proposal. He said he did
not see any more reason for the Sen
ate's confirming those who receive $5,
000 than confirming those who receive
$3,000 or $2,000. He said he did not
object if the Senate wanted to confirm
all these people and all the scrub
women. The McKeilar amendment
has been attacked as a patronage
move. The President's contention is
that the Senate should be called upon
to confirm only those officials who hold
policy-making jobs.
When the President was asked
whether the statement of Chairman
Morgan of the T. V. A. had been
called to his attention and to comment
upon it. he said that on January 18 a
statement prepared by Harcott Mor
gan and David Lilienthal, other mem
bers of the T. V. A. board, had been
filed with him. He said he had no
objection to this being made public
by Mr. Morgan and Mr. Lilienthal.
This statement deal with conflicting
policies, it was said, and not with the
question of the claims of Senator
Berry of Tennessee against the Gov
ernment for flooded marble quarries in
the Tennessee Valley.
Flood
'Continued From Firs; Page.)
whether any of them were stranded
i there was not learned.
Pilot Dirk Fagen of Ameriran Air
lines. brought the report when he
landed here with passengers from Dal
las who had been grounded at Palm
Springs since Tuesday by storms.
The airline announced it would send
supplies of food and milk to the desert
playground by plane today, and ar
1 range to remove stranded vacationers.
Relief Under Control.
Red Cross officials in broadcasts
from Los Angeles last night said the
relief situation was under control and
that no further outside help was
needed.
One spokesman emphasised that
; there "seemed to be a widespread mis
apprehension concerning the Southern
California situation."
"We cannot have a flood here in
the sense that they do in the East be
cause of the quick runoff,” he said.
The flood-stricken area was prom
ised nothing more severe today than
snow in the mountains, with fair
weather predicted for the lowlands.
Two rivers, ironically dry most of
the year, caused heavy damage when
the rain waters began to drain off.
In San Bernardino, Riverside and
Orange Counties, the Santa Ana tore
through rich agricultural lands, inun
dated part of the city of Riverside,
burst dikes at Anaheim in Orange
County and flooded an area 15 miles
long and 7 miles wide near the ocean.
But for a few weeks each spring,
when mountain snows are melting, the
Santa Ana’s bed is dry.
The raging Los Angles River, also
dry most of the year, tore out railway
and highway bridges in the industrial
area, paralyzing transportation in and
out of Los Angeles.
Streets Were Flooded.
Downtown Los Angeles streets were
flooded from curb to curb at. times, but
in most cases tho water quickly re
Mrs. Roosevelt to Shake Hands
With Three Princesses Zosu
Unless she Is told to do otherwise,
Mrs. Franklin D. Roosevelt, will have
an American handshake for the three
Princesses Zogu, sisters of the King
of Albania, when they call for tea
at, the White House at 5 o'clock this
afternoon, she said at her press con
ference this morning.
The President’s wife recalled that
the only time she had ever been
coached to do otherwise in receiving
guests was before the call of a gentle
man of another faith, who preferred
not to shake hands with Christians.
The three Princesses will be enter
tained in the green room, the small
party including the Albanian Minister
end two aides from Tirana. They
reached the city at X :25 p.m.
Forehanded with her Christmas
shopping, which is usually completed
by Thanksgiving Day, Mrs. Roosevelt
is more like the average American
citizen in paying her income tax, so
far as the time element is concerned,
she also disclosed.
v Her returns are made out l
Aoman lawyer in New York, she
and the tax has not been paid to date.
As in the past, she will rely this year
on an opinion from the Treasury De
partment, which permits her to omit
the tax on the profits from her lecture
tours, which are turned over directly
to the Society of Friends in Pennsyl
vania. Mrs. Roosevelt has taken the
position that she works for the society
rather than for herself, and the checks
ate not made to her personally.
A bouquet of 5,000 flowers which
were to have been presented to Mrs.
Roosevelt at Amarillo, Tex., during
her coming lecture tour will be sent to
the hospitals of Amarillo instead, if
the community follows her request,
she revealed. As soon as she learned
of the plans for the flowers she wired
that she would prefer this arrange
ment.
Three lessons for the improvement
of her speaking voice which she re
cently took in New York were the ful
fillment qf an old desire for such a
study rather than special preparation
for her lecture tour, which will Jjegin
March 7 in Texas, she said. ♦
1 reded without damage once the rain
; fall stopped.
| Metropolitan Los Angeles was virtu
ally in a world of its own for several
hours yesterday when all communi
cation. even by radio, was cut off.
It still was larking usual transporta
tion facilities to the outside. Plans
I of the Southern Pacific to resume
operation of trains to San Francisco
were canceled last night because of
sodden roadbed in some sections and
because passengers would have to be
ferried around some washed-out
bridges.
Roads in the metropolitan area were
reported in passable condition al
though many were laden with debris.
State highway officials appealed to
sightseers to keep out. of the flooded
! districts until roads had been cleared
! of obstructions.
Schools were rlospd. but racing went
on—under difficulties—at nearby Santa
! Anita race track. The mud was so
! thick the horses were almost hidden.
In Los Angeles, Mayor Frank Shaw
declared all danger in that area ap
peared to have passed.
“We are at work on a preliminary
estimate of damage to public and pri
vate property," he said in a state
ment. The work of rehabilitation is
already under way “with every re
source of the city government co-op
erating 100 per cent," he added.
Care for 3.000 Homeless.
Red Cross officials said they were
caring for 3,000 homeless in Los An
j geles County, Mrs. Esther Chadburn,
field representative, said preliminary
investigation showed at least 1,500
homes uninhabitable.
An estimated 1.000 persons, many
of them driven from thefr homes by
the Santa Ana River, were sheltered
temporarily in Municipal Auditorium
at San Bernardino, 60 miles east of
here.
Anaheim police were credited with
saving many lives in low-lying sections
of the city by warning residents of
threatened areas when the Santa Ana's
dikes began to weaken. Patrol cars,
with sirens screaming, raced through
the threatened areas around 2:30 a.m.
yesterday.
Valuable citrus groves in Riverside
and Orange Counties were feared heav
ily damaged by the floods, but agri
culturists said it was impossible to
make any estimates of loss, pending a
check after the high waters subside.
An incomplete check of storm vic
tims indicated 25 persons missing in
North Hollywood, in the San Fernando
VaUey north of here: 15 dead in the
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Santa Ana-Fullerton-Anaheim region,
30 to 50 miles southeast of Los An
geles, and 25 missing in San Fernando,
above North Hollywood.
Many smaller and less substantially
constructed dwellings were tumbled
down hillsides and dashed to splinters
when their foundations were under
mined.
Others were damaged by flood waters
swirling through them, or piling up
against one side with sufficient pres
sure to shove the smaller residences
from their settings.
Among property losers of the storm
was Film Actor Victor McLaglen,
whose big $20,000 sports arena was
washed away by overflow from the Los
Angeles River. McLaglen said the
arena, which seated 20,000 persons,
would have to be rebuilt.
Many animals in Zoo Park died
when swirling waters swept through
the area, and several 7-foot alligators,
washed into nearby Lincoln Park
L*ke. defied efforts to recapture them.
DRAIN ON BRAINS
SEEN FOR RACE
Zoologist Favors Pay for
Rearing of Children in
Intelligent Groups.
The human race it "breeding out
Ha brains," Dr. Samuel J. Holmes,
profeasor erf zoology at the University
of California, told the Conference on
the Conservation and Development of
Human Resources meeting here today.
This is coming about, he said,
through the "practical sterility” of the
more intelligent strata of society,
which is due in turn to the economic
and biological factors involved in life
in cities.
As one way out, he advocated that
the state pay families for rearing chil
dren, with some form of discrimina
tion in favor of the more intelligent.
A somewhat similar device has been
adopted in both Germany and Italy,
he explained, to check the fall in
birth rate so that these nations can
be assured of an adequate man power.
While' the balance might be re
stored, Dr. Holmes stressed, by ex
tension of knowledge of birth-control
methods to the rural populations and
less intelligent city populations, this
would result in a birth rate so low
"that all would eventually become ex
tinct together.”
Proposals for Federal health insur
ance for wage earners and a spirited
attack on the opposition of the "vested
interests” of medicine were made yes
terday afternoon before the Conference
by Dr. John A. Kingsbury of New
York, former secretary of the Millbank
Memorial Fund.
Such health Insurance, he said,
should have been Included in the
Social Security Act. It would have
been, he said, "if the social workers
and others concerned with the welfare
of the people of America had been
organized to serve their cause with
half the zeal with which the American
Medical Association served its vested
interests in sickness.
Dr. Kingsbury said he was confident
President Roosevelt could be counted
on to bring this country into line
.with the most advanced nations of the
world in the matter of the conserva
tion of health.” and, he continued,
battles mast be fought with those
vested interests which fatten on sick
, ness and the plights of suffering hu
! manity.”
ALBERT HAIGHT DIES:
WAS EX-FIRE OFFICIAL
Retired Battalion Chief, 59, Was
Twice Cited for His Work.
Rites Set Tomorrow.
Albert S. Haight. 59, retired bat
talion chief of the District Fire De
partment, who died last Friday in Los
Angeles, will be buried here tomorrow
in Cedar Hill Cemetery. Funeral serv
ices will be held at 3 p.m. tomorrow
in the Lee funeral home, Fourth street
and Massachusetts avenue N.E.
Mr. Haight, who retired February 1,
1936, due to failing health, was ap
pointed to the department July 1,
1901.
He was awarded a ribbon decora
tion for his work during the Knicker
bocker Theater disaster in the winter
of 1922 and received honorable men
tion for reselling a child from a fire
in January. 1930.
Mr. Haight was promoted to lieu
tenant in October, 1911, advanced to
captain in September, 1918, and made
a battalion chief in July, 1931.
CHILD DIES OF BURNS
IN COFFEE POT UPSET
Urn Filled With Boiling Drink
Fell on Aquasco Boy,
Police Report.
1 Joseph L. De Marr, l*-month-old
son of Mr. and Mrs. Jerome De Marr
of Aquasco. Md.. died in Providence
! Hospital last night of burns suffered
when, police said, an urn filled with
‘ boiling coflee upset on him at his par
ents’ home. The accident occurred
while the family was eating supper
Wednesday night. Prince Georges
County Policeman R. Arnold Naylor,
' who brought the child to the hospital,
j said there would be no inquest.
The baby is survived by his parent*
' and several brothers and sisters.
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TOWN HALL TO HEAR FORMER
RUSSIAN PREMIER.
ALEXANDER KERENSKY,
Former premier of Russia and
an expatriate since the rise of
the Bolshevists, who will go
before the Town Hall of
Washington Sunday at 8:15
pm. to speak on the subject
"In Defense of Democracy.’’
The meeting will be in the
Rialto Theater. Since 1918
Mr. Kerensky has lived in
England, Germany and more
recently in France, where he
heads the Republican-Demo
cratic Bloc, a new organiza
tion of exiled Russians re
placing the old Constitutional
Democrats.
FLORISTS TO END STUDY
WITH PAGEANT AND SHOW
Affair to Be Held in Ritchie
Coliseum Tuesday at
Maryland U.
A floral pageant and style show will :
close the annual short course for flor
i ists in Ritchie Coliseum, University of
I Maryland, Tuesday night. Prof. A. S. |
Thurston announced todav.
!
The pageant, an elaborate affair,
will be entitled ‘Blossoms of the
Times." It will be presented by the
j Middle Atlantic Regional Unit of the
National Society of American Florists.
Complimentary cards of admission
may be obtained from Prof. Thurston
or Washington or Baltimore florists. I
MRS. NOLAN REPORTED
DROWNED IN FLOODS
Former Associates of Oil Land
Operator Say He Received
Message by Phone.
Former business associate* of Charles
A. Nolan, oil land operator, said he
received a call last night from Boston
that his wife, Mrs. Mary Lee Nolan,
had been dreamed in the Los Angeles
flood.
Norman Bowles, a former associate
of Mr. Nolan's, said Mrs. Nolan had
left Washington a few months ago
for Hollywood, where ahe underwent
successful treatment for her health.
Mr. Nolan had intended to leave for
the West Coast by plane within a few
days to bring her berk, Mr. Bowies
said.
Mr. Nolan could not be reached to
day, but friends said he Intended to
leave immediately for I os Angeles. It
| was believed the call came from Mrs.
Nolan's parents in Boston and that
they had been notified from In* An
geles.
Mr. Nolan deals in leased gas and
oil lands in New Mexico, maintaining
offices here. .
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