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Evening star. [volume] (Washington, D.C.) 1854-1972, March 10, 1938, Image 1

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WEATHER.
<U 8. Weather Bureau Forecast.)
Snow, ending this afternoon; fair to
morrow; slightly colder, temperature
about 28 degrees; warmer tomorrow. Tem
peratures today—Highest, 43, at midnight;
lowest, 31, at 3 p.m.
Pull report on page A-2.
■■ *
Closing New York Markets, Page 20
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
Meant Associated Press.
86th YEAR. No. 34,281.
WASHINGTON, D. C., THURSDAY, MARCH 10, 1938—FORTY-EIGHT PAGES. ***
Entered as second class matter rPTTT> TT177* m?\Tmci
post offlee. Washington. D. C. 1 x1xv.Ej.Cj LfJii.MXQ.
AUSTRIAN ‘FRONT
BAMS NAZIS IN
40 Hurt as Outbreaks Mark
Increasing Tension
in Campaign.
CIVIL WAR THREATENS
IN PLEBISCITE FIGHTING
Enemy Factions, Armed With
Clubs and Other Weapons,
Cruise in Trucks.
BACKGROUND—
Nazi demands, presented bp
Reichsjuehrer Hitler to Chancellor
Scliuschnigg at Berclitesgaden last
month, have imperiled continued
independent existence of Austria.
Schuschnigg yesterday announced
a plebiscite will be held Sunday on
whether the people desire An
schluss with Nazi Germany or con
tinued independence.,
B> Ihe Associated Press.
VIENNA. March 10.—Street fights
In which at least 40 were injured and
many arrested broke out today in
Vienna and Graz as Austria's political
strife reached a new pitch of bitter
ness in the campaigning for Sunday's
plebiscite.
Nazis, angered bjj Chancellor Kurt
Schuschnigg's sudden call for a vote
on his policy of Austrian independence,
clashed in both cities with members
of the Fatherland Front, the chan
cellor's party.
Threat of Civil War.
In Graz, capital of Styria and hot
bed of Austrian Nazis, the dread
words "civil war" passed menacingly
from mouth to mouth when grim
faced Nazis and Fatherland Front
members toured the city in trucks,
armed with clubs, poles and other
weapons.
Seventeen were injured in Graz
itreet clashes: 12 more were hurt
there by clubs of police breaking up
demonstrations. Vienna counted at
least 11 hurt.
At dusk 5,000 shouting, excited men
and women thronged Vienna's main
arteries, almost stopping traffic. Re
inforced police squads were unable to
cope with the crowds. Truckload after
truckload of police were rushed to the
scene.
Nazi Flag Hoisted in Linz.
In Linz Nazis hoisted a huge swas
tika flag to the top of the City Hall.
Nazis in Graz held a mass meeting
before the City Hall, yelling "Get rid
of Schuschnigg! Heil Hitler!” until
police dispersed them.
Troops moved through the streets
of Graz. Three companies were seen
entering Vienna.
Graz Nazi leaders said they were
only awaiting orders before starting a
campaign such as Austria had never
known.
“Hells” Ring Through Vienna.
In Vienna the cries of "Heil
Schuschnigg!” and "Hei! Hitler!”
swelled throughout the day above the
usual roar of traffic.
The entire police force was called
out on an emergency basis that will
continue through Sunday.
The two main army garrisons -were
held in readiness, with motors of troop
lorries constantly running.
The old sedate, friendly, easy- j
going Vienna had become a tense, !
worried, shouting, demonstrating city, ]
whose population was gripped by a !
tension almost unknown here since i
the World War.
The issue was whether the influ- |
ence of Schuschnigg or of Chancellor j
Hitler of Germany should predomi
nate in Austria.
First Blood Spilled.
Blood flowed in Kaerntnerstrasse,
the main shopping street, for the
first time since Nazis and Fatherland j
Front began struggling for the upper j
hand when Front members set upon
an ardent Nazi who answered a shout i
of “Heil Schuschnigg!” with “Heil1
Hitler!”
The Nazi was pummeled into un- I
consciousness before police intervened. !
The police for the most part con- '
fined their efforts to keeping the two
factions apart and curbing too demon
strative "Heil Hitler!” cries.
Trucks cruised about the city car
rying loud-speakers blaring plebiscite
slogans like "With Schuschnigg for a
free German Austria” or “Are you for
Austrian independence? Yes or no?
Yes! Yes! Yes!”
This was only the beginning, a few
hours after Schuschnigg issued his
startling call for Sunday's referen
dum. It was expected to continue
night and day through Sunday.
Vote Plans Were Guarded.
Informed persons said plans for an
nouncing the referendum were worked
out in the greatest secrecy by the
chancellor. Burgomaster Richard
Schmitz of Vienna and Guido Zer
natto, secretary of state.
The announcement was a bombshell
to many foreign diplomats. Franz
von Papen, the German Ambassador,
had advance word of it while vaca
tioning at Kitzbuehl and hurriedly re
turned to Vienna to try to dissaude
Schuschnigg.
Nazi envoys were dispatched to Ber
lin for instructions. Diplomats won
dered whether some foreign power had
given Schuschnigg assurances of sup
port and possible help. France was
named in such conjectures.
Italian Interference Unlikely.
ROME, March 10 (JP).—Informed
Quarters doubted today that the Aus
trian plebiscite Sunday would pro
voke Italian interference in Austrian
German affairs, even if the vote
favored still further German influence
in Austria.
German steps to extend Nazi power
in Austria would embarrass Italy in
view of her previous role as protector
of Austrian independence. But Pre
mier Mussolini was believed to have
assurances from Reichsfuehrer Hitler
that even if Austria should vote
against the Schuschnigg independence
program it would not lead to precipi
tate German action.
Blum Takes Jol
Cabinet as Che
- 1
Socialists Assure Him
Backing——Crisis on
Decree Powers.
BACKGROUND—
Leon Blum, former French Peo
ple’s Front premier, yielded office last
June to Camille Chautemps when
he was unable to win power to ef
fect needed financial measures by
decree. Cabinet of M. Chautemps
fell in January, and he reformed
his ministry without Socialist or
Communist members, although for
mer have supported his government
until present crisis arose.

By the Associated Press.
PARIS, March 10.—Leon Blum. So
cialise ex-premier, today accepted
President Albert Lebrun's mandate to
attempt formation of a new cabinet,
replacing the resigned government of
Camille Chautemps.
M. Chautemps resigned because he
could not get from Parliament powers
to reorganize French finances by de
cree. M. Blum, head of the first
People's Front government, resigned
last June 21 for the same reason.
Before he went to the Elysee Palace
at Lebrun’s summons, M. Blum re
ceived assurance of the support of his
Socialist party and conditional prom
ises of Communist backing.
10 ON AIRLINER
LANDED SAFELY
Washingtonians Are Aboard
Craft Forced Down
by Fog in South.
fcj the Associated Press
RICHLANDS. N. C., March 10.—
Seven passengers and a crew of three
aboard a big American Airlines plane
heading for the West Coast from New
ark narrowly escaped injury today
when the plane made a forced landing
near here and tore down a fence as it
was some 150 miles off its charted
course.
Peggy Fears, stage actress, the wife
of A. C. Blumenthal. theatrical pro
ducer, was a passenger on the plane.
The six other passengers were.
*5. F. Leggett of Washington, D. C.:
Grove Webster of New York. Gardiner
Fiske of Boston. Mass., and W. M.
Zass. J. G. Rice and a Mrs. Northcott,
who booked passage in Washington.
The passengers were taken by au
tomobile to Charleston, S. C., and were
to be taken on to Atlanta by a plane
sent from Nashville, Tenn.
Chief of Police R. E. Holt said that
Pilot Carpenter of the ship considered
the damage was slight.
"Yes, siree.” said Chief Holt; “they
sure were lucky. The pilot set the
plane down in a big. open field, but
he happened to hit a wire fence across
it and took down 50 or 75 posts.
“They sure w ere lucky, too, that the
field had not been plowed.”
Richlands is 84 miles southeast of
Raleigh and the usual Washlngton
to-Atlanta air route is via Greensboro.
The chief said the pilot told him
the plane got off its course about
3 o’clock this morning, after having
been rerouted at Washington to go by
way of Atlanta due to weather con
ditions
“He said he got lost in the fog
and just kept flying around until about
6 o’clock, when it got light enough
for him to see, then he chose a big
field and came down,” the officer re
lated.
Leggett Acting Head of N. E. C.
Eugene S. Leggett, passenger on the
American airliner forced to land near
Richlands, N. C„ early today, is former
president of the National Press Club
and actihg director of the National
Emergency Council. J. O. Rice is a
resident of Phoenix, Ariz.
-•
Avalanche Threatens Mine.
OURAY. Colo., March 10.—A huge
snowmass, reared by a week of fierce,
wind and snow, overhung the famous
Camp Bird Mine today, threatening to
tumble at any moment from United
States Peak and repeat the costly 1936
aValanche.
of Reforming
lutemps Resigns
t —-— - _
_LEON BLUM.
M. Chautemps stepped out after only
51 days of power for his second People's
Front government.
M. Blum said he would attempt to
form “a stable government, rallying
all the forces of democracy.”
President Lebrun sought a speedy
end ot the crisis, fearing France's in
ternational position, already adversely
< See~FR ANCE~Page A^47)
WILLKIE ACCUSED
IN ICKES LETTER
Secretary Says He Sought
to Hold Up $150,000,000
P. W. A. Project.
Br the Associated Press.
Secretary Ickes made public a letter
today in which he charged Wendell L.
Willkie, president of Commonwealth
& Southern, with asking the Public
Works Administration to "conspire”
with him to hold up a $150.000,td0 P.
W. A. municipal power project in the
Tennessee Valley.
Mr. Ickes’ letter, addressed to Mayor
Watkins Overton of Memphis, Tenn ,
was in reply to a telegram from the
Mayor asking whether P. W. A. would
recommend delay in construction of
electric distribution systems.
he Mayor noted that Mr. Willkie. in
provisionally accepting an invitation
from Director David E. Lilientlial to
meet T. V. A. officials in Chatta
nooga on March 15. said he would co
operate only if the P. W. A.-municipal
power program was brought to a
“standstill” in the meantime.
Mr. Lilienthal proposed the Chatta
nooga conference for a discussion of
purchase by T. V. A. and localities of
private power systems.
r. \V. A. Contract* Assured.
Mr. Ickes assured Mr. Overton P.
W. A. would carry out Its contract for
>61,225,544 of loans and >38,412,408 of
grants made on 61 projects in 23
States unless the municipalities, them
selves, wished to delay their projects.
Otherwise he said P. W. A. money
would go forward as arranged.
Mr. Ickes said in the letter that Mr.
Willkie had failed to defeat T. V. A.
developments and was now asking the
Government to act in bad faith with
the cities.
"Having failed completely to prove
his case in the courts, Mr. Willkie now.
in effect, asks us to 'conspire' with him
and to refuse to carry out our obliga
tions to the cities in order that he may
negotiate with T. V. A.
"Mr. Willkie has had five years in
which to negotiate, but he chose to
exhaust every legal technicality in his
efforts to thwart the Government’s
policy. Now that he has been beaten
at every hand, he asks the Govern
ment to act in bad faith with the
cities.”
Mr. Ickes said if Mr. Willkie meant
that P. W. A. should not make any
new committments, that conditions
already had been met inasmuch as
the President announced some time
ago that there would be no further
allotments from the Public Works
Administration. '
Senator Norris, Independent, Ne
(See T. V. A., Page A-5.)
Summary of Today's Star
rage. page.
Amusements, Obituary_A-14
B-12-13 Radio .C-3
Comics C-8-9 j short Story C-4
Editorials -. A-12 ! Society_ B-3
Finance . A-19 j Sports_C-l-3
Lost & Found C-4 ! Woman's Pg. B-14
FOREIGN.
Blum takes job of. forming new French
cabinet. Page A-l
Hostile Britons menace Ribbentrop at
London parley. Page A-l
Austrian “front” battles Nazis in Vien
na and Graz. Page A-l
Hungary sheds arms restriction in
peace treaties. Page A-4
Chinese “lifeline” railroad is cut by
Japanese. Page A-4
Big insurgent offensive rolls ahead
on two fronts. Page A-S
NATIONAL.
lekes charges Willkie with asking P.
W. A. “conspiracy.” Page A-l
Doughton sees possibility of second
revenue bill. Page A-l
Mystery air injected into civil liberties
inquiry. Page A-2
Whitney and partners revealed as con
trolling liquor firm stock. Page A-2
Hawaiian youths keep L. S. flag flying
in Pacific Islands. Page B-4
WASHINGTON AND NEARBY.
Senate group favors 3 more U. S.
judges here. Page A-l
Flare-up on law enforcement marks
numbers bill hearing. Page A-l
McKinley wins Craigie Cup in high
school war games. Page A-3
Public response indicates wide interest
in symphony. Page A-9
Prisoner hangs self in District Jail
cell. Page A-1S
School Board calls recreation parley for
next Wednesday. Page B-l
Second inquest ordered In police shoot
ing of demented veteran.. Page B-l
Line-up of 172 robbery suspects brings
few victims. Page B-l
Income tax credit proposed in District
bill. Page B-l
, •
EDITORIALS AND COMMENT.
Editorials. Page A-12
This and That. Page A-12
Stars, Men and Atoms Page A-12
Answers to Questions. Page A-12
The Capital Parade. Page A-13
David Lawrence. PageA-13
Mark Sullivan. Page A-13
Jay Franklin. Page A-13
Della Pynchon. PageA-13
SPORTS.
Harris still hopes Was dell will blos
som at hitter. Page C-l
Terry denies ever having feud with
sports writers. Page C-l
St. John’s eager for action in S. A.
basket tourney. Page C-l
Sande rates Stagehand coming top
ace of turf. Page C-2
Santa Anita bans Woolf, rider of Sea
biscuit. > Page C-2
Max Baer may end Tommy Farr’s
string of defeats. Page C-3
MISCELLANY.
Shipping News. Page A-17
After Dark. Page B-6
City News in Brief. Page B-15
Vital Statistics. Page C-4
Bedtime Story. Page C-4
Nature’s Children. Page C-4
Letter-Out. Page C-3
Crossword Puzzle. Page C-8
Contract Bridge. Page C-9
FINANCIAL.
Rail bonds uneven (table). Page A-19
Clearings remain down. Page A-19
Capital deposits jump. Page A-to
Stocks mixed (table). PageA-29
Curb edges higher (table). Page A-21
D. C. store sales near
1937 mark. Page A-tl
A
HOSTILE BRITONS
MENACE GERMAN
FOREIGN MINISTER
Attempts to Break
London Police Lines
for Ribbentrop.
AUSTRIA AND COLONIES
BELIEVED TALK TOPICS
Freedom for Niemoeller and
Thaelmann Demanded by
Angry Demonstrators.
BACKGROUND—
Prime Minister Neville Chamber
lain’s attempt to achieve settlement
of Europe's troubles by negotiating
with the dictatorships led to de
parture of Anthony-Eden from the
cabinet. Joachim von Ribbentrop,
new German foreign minister, has
returned to London to take leave of
his former post as Ambassador to
England, and is engaging in con
ferences with British officials pre
paratory to an Anglo-German
agreement.
By the Assocltted Press.
LONDON, Marrh 10.—Unfriendly
demonstrations today greeted Joachim
von Ribbentrop, Germany's foreign
minister, both before and after a
conference in which he and Britain's
foreign secretary canvassed the whole
field of Anglo-German relatfons.
A crowd of 500 demonstrators tried
to break strong police cordons as Von
Ribbentrop left the foreign office after
more than two hours with Viscount
Halifax, new director of British foreign
policy.
Cries of “Get out. Ribbentrop!”
and "Release Niemoeller and Thael
mann!" were shouted at the German
diplomat—referring to the Rev. Mar
| tin Niemoeller, held in a German
: concentration camp, and Ernst Thael
! mann, German Communist leader,
held without trial since 1933.
RearheR London Yesterday.
Von Ribbentrop came to London
yesterday, ostensibly to take formal
leave of his old post as Ambassador to
Britain, but his visit had been ex
i peeled to mark opening of Anglo
German conversations in search of
I European appeasement.
During his talk with Lord Halifax
the crowd outside swelled from the 30
who had greeted Von Ribbentrop on
his arrival with clenched fist salutes
(the Communist gesture) almost under
his nose.
But the police acted swiftly. Forces
were tripled at the Hone Guards' Pa
rade, In Downing Street and in the
foreign office courtyard. Mounted,
foot and plainclothes police mingled
with the crowds.
Halifax Alone in Parley.
Both Sid Alexander Cadogan and
' 3ir Robert Vansittart. ranking per
I manent officials of the foreign office,
] left Whitehall before the conference
began. Hence it was believed Lord
Halifax faced Reichsfuehrer Hitler's
envoy alone.
Austria's surprise plebiscite, set for
Sunday, was believed mentioned dur
ing the talk, which, however, was
understood to have centered on Ger
many's demand for colonies and
British press treatment of German
problems.
Von Ribbentrop was reported to
have stressed the German view that
Hitler, as head of state, should be
spared newspaper attacks.
Lord Halifax, however, while ready
to urge restraint on the press, holds
that criticisms of Hitler s actions are
justified, since he also is in the posi
tion of a premier at the head of a
government.
Informed persons emphasized that
the talk was "exploratory," but said
an apparent deadlock on the colonial
question made an early agreement
improbable.
Germany received little encourage
ment for return of her war-lost col
onies, but Prime Minister Chamber
lain and Von Ribbentrop were ex
pected to review this when they meet
tomorrow.
Italian-British negotiations, paral
leling those with Germany and even
tually to be expanded to include
Prance in a four-power peace under
standing, likewise were halted today
by Italy’s Fascist Grand Council
meeting.
The council gave attention to the
conversations between Foreign Minis
ter Count Clano and the British Am
bassador, Lord Perth, however, and
to the Austrian situation, in which
Italy is vitally interested because of
her pledge to preserve Austrian inde
pendence.
YOUNG WOMAN, FOUND
IN FIELD, DIES OF CUTS
Identity and Cause of Injuries
Remain Mystery as She
Succumbs, Lips Sealed.
By the Associated Press.
NORFOLK. Va„ March 10.—A young
woman of about 25, whose body and
head were covered with cuts when
she was picked up in a field near
here, died last night in a Norfolk
hospital without regaining conscious
ness.
Police tried to establish her identity
and Coroner C. J. D. MacDonald ar
ranged an autopsy to ascertain the
cause of death.
Officers had two theories:
She was struck by a hit-and-run
automobile driver and managed to
crawl off the road.
She was beaten.
A man living near the field noticed
her lying there yesterday and called
police.
Fugitive Caught.
WAYNESBURG, Pa , March 10 C4»).
—State motor police, headed by Corpl.
H. A. Gldley, arrested Salvatore Diana,
22, a Brooklyn, N. Y., mechanic, early
today in the nearby mining town of
Mather, on a charge of being a fugitive
from Justioa.
A.
Yeah, \
/ YOU’RP. GONNA
TAKE HIM AND
\J-IKE HIM y
FAVORED FOR D. C.
Senate Group Would Send
One of Men to Court
of Appeals.
Appointment of three more Federal
judges for the District of Columbia
was recommended today by the Senate
Judiciary Subcommittee, which held
hearings recently on the congested
condition of court dockets here, and
in several other circuits.
Two of the new places go to the
District Court and one to the Court
of Appeals. This was a reduction from
the report of the Attorney General
and the original bill, in which three
additional members were requested for
the District Court and one for the
appellate tribunal.
Chairman Hatch, Democrat, of New
Mexico said the subcommittee's rec
ommendation of two instead of three
for the lower court is agreeable to
Senator King, Democrat, of Utah.
King Criticised Judges.
Throughout the hearings Senator
King criticized the local courts on the
ground the judges do not perform
sufficient work, and it was thought by
some he might seek a more substantial
reduction in the number of new judge
ships here.
For the country as a whole the bill
authorizes nearly a score of new judi
cial seats to speed up the wheels of
justice in places where the judicial
conference last summer found more
work than the present number of
judges could keep up with.
Senator Hatch presented the find
ings of the subcommittee to the Judi
ciary Committee this morning, but
committee action was postponed until
Monday because of the absence of sev
eral Senators who asked to be present
when the measure is voted on.
*.000 Cases Will Be Filed.
It was brought out at the hearings
that 8.000 cases will be filed this year
in the District Court here, that it fre
quently takes 15 months to obtain
trial of a case and that even with
the additional judges it would take a
year or two to bring the local court
calendar up to date, not allowing for
future increases in volume of litiga
tion. Nearly all witnesses emphasized
the point that Federal courts here
handle not only a large number of
important national cases, but also the
trials that elsewhere would go through
State courts.
The subcommittee eliminated an
additional judge for Kansas, as a re
sult of controversy within the State
over the recommendation. In Georgia,
where Senator Russell had urged a
new district be created instead of add
ing a judge to the northern district,
the subcommittee allowed the increase,
but made the new' place a judgeship
at large for the entire State.
If the bill passes, Washington would
have 11 district judges and six on the
appellate court.
REPORT SEEN ASKING
NEW A. T.&T. SET-UP
‘Separation’ of Western Electric
May Be Urged by Probers
of Commission.
By the Associated Press.
Frank R. McNinch, chairmqn of
the Federal Communications Commis
sion, told reporters today he had
heard that the report on the commis
sion’s long investigation of the Amer
ican ’Telephone & Telegraph Co. set-up
recommended a “separation” of the
Western Electric Co. from the A. T. &
T„ but that he had not as yet seen
the report.
Mr. McNinch said the report, pre
pared under the supervision of Com
missioner Paul A. Walker and a stafl
of experts, would be opened by the
commission for study next week before
being transmitted to Congress.
Asked about rumors that the report,
based on almost two years of in
vestigation, proposed a “decentraliza
tion” of the A. T. & T„ Mr. McNinch
said he had heard such rumors but
did not know whether they were
true.
Mr. McNinch was questioned about
the report after a conference with
President Roosevelt. He said his talk
with the President concerned a pro
posed tax on radio broadcasting and
the international broadcasting situa
tion in the South American field.
M
D. C. Bank Deposits
Jump $12,960,428
In 2 Months* Time

In a period of a little more
than two months aggregate de
posits in Washington banks scored
an advance of $12,960,428.40, it
was learned today following a call
for condition issued by the Con- j
troller of the Currency.
On December 31. 1937, bank
deposits in the Capital totaled J
$322,651,855.54 and op Marcb 7,
1938, the date of the call sent out
today, had mounted to $335,612,
283.94. the banks and trust com
panies announced.
The controller's call covered all
the banks in Washington and all
the national banks in the United
States.
(Details in Financial Section).
SNOW WILL CEASE,
BUREAU PREDICTS
!
Clearing Skies and Colder
Weather for Tonight, With Low
of 28, Is Forecast.
Pears of a “real snow” were allayed
by the Weather Bureau today in a
forecast of clearing skies before night
fall.
The prediction, made as the snow
still swirled after several hours of
mixed precipitation, added that the
snowfall probably would stop during
the afternoon and that tonight would
b? slightly colder, with a "low” of
about 28 degrees. Tomorrow is ex
pected to be “fair and warmer.”
Beginning shortly before 7 a m., the
snow came after four hours of com
bined rain and sleet. With the tem
perature hanging above the freezing
mark during most of the precipitation,
the snow melted fast.
Possibility that the ground would be
covered before it ceased was seen when
the mercury touched the freezing level
at 9:30 a m. and remained there.
At noon, with tops of buildings cov
ered, the snow was measured at an
inch and a quarter.
At the same time of the forecast
the Weather Bureau issued a storm
warning for ships off the Atlantic
Coast. The warning read: "Advisory
9:30 a.m. Northeast storm warnings
ordered Virginia Capes to Nantucket,
Mass. Disturbance moving eastward
over North Carolina with rapidly in
creasing intensity will be attended by
northeast gales backing to north and
northwest and diminishing tonight.
Small craft warnings indicated south
of Virginia Capes to Cape Hatteras.”
Northeast winds that sent the ve
locity recorder up to 27 m.p.h. during
gusts gave the Capital the appearance
of being in the throes of a serious
storm.
Poor visibility resulting from the
driving snow tentatively was blamed
for half a dozen traffic accidents that
occurred in different sections of the
city within less than half an hour.
DE VALERA CONFERS
Discusses Trade Questions With
•Malcolm MacDonald.
LONDON, March 10 <*>).—Irish
Prime Minister Eamon de Valera con
ferred today with Malcolm MacDonald,
British Secretary of State for Do
minions, on trade questions. It was
expected Irish-Britlsh negotiations
would continue at least another week
and that De Valera would remain un
til they are completed.
House Member Says D. C.
Law Agencies May Have
Broken Down.
BACKGROUND—
Numbers game, reputed to be
yielding its backers millions of dol
lars a year in Washington, is
blamed by officials for much of the
crime here. Present bill, which
passed the Senate over a year ago.
would make possession of num
bers slips a crime. This legisla
tion was revived recently after
being pigeon-holed in House Dis
trict Committee since February
11, 1937.
By CARTER BROOKE JONES.
During a flare-up among members
of the House District Committee at
the hearing on the numbers racket
today, Representative Bates. Repub
lican, of Massachusett suggested "per
haps the law enforcement agencies of
the District have broken down."
He added that if lack of co-opera
tion between police and courts is ag
gravating the crime wave, "maybe we
had better investigate the judges."
This sharp discussion followed an
earlier exchange between committee
members and Police Supt. Ernest W.
Brown over whether the churches,
while urging legislation to smash the
numbers racket, were themselves car
rying on "a gambling racket” through
bingo and other games of chance.
Both No-Derision Debates.
Both discussions ended indecisively,
with the committee veering back to
the pending number bill.
During the committee tilt over law
enforcement conditions in Washington,
members suggested that perhaps the
judges should be summoned.
The matter was precipitated by a
discussion of paroles and sentences.
Representative Nichols, Democrat, of
Oklahoma brought out from Maj.
Brown that the department did not
approve some of the leniency shown
persons convicted of serious crimes.
Mr. Nichols then cited the case of
a man with a family found guilty of
drunkenness who was sentenced to six
months, while another man. commit
ting a third offense of armed robbery,
was given probation and turned over
to the Virginia authorities.
Police Don't Approve.
“We don't approve anything like
that.” said Maj. Brown.
“Perhaps." Representative Bates
broke in, “the law-enforcement agen
cies have broken down, and that's
the real trouble. There seems to be
no co-operation between the police
and the courts.”
After several committee members
had tried to speak at once and the
chairman had rapped for order, Mr.
Bates added:
“If this is aggravating all this crime
wave, maybe we'd better investigate
the judges."
“If the judges were on the job and
(See NUMBERS, Page A-ifj
Telegrams Held Up.
SAN FRANCISCO, March 10 (4>).—
All Postal Telegraph circuits in and
out of San Francisco were paralyzed
one hour and ten minutes last night
by a strike of 50 members of the Amer
ican Radio Telegraphists’ Association.
Mackay Radio employes refused to
transmit Postal messages in co-opera
tion with the A. R. T. A. during the
strike.
a
Enforcement of Monopoly Laws
Held Political by F. T. C. Expert
By the As»o- Press.
A Federal Trade Commission expert
said today enforcement of the anti
trust laws "has been sporadic and has
been more political than legal and
economic."
Testifying before a Senate Judi
ciary Subcommittee on the Borah
O’Mahoney bill to require Federal
licensing of large corporations, W. J.
Ballinger, chief F. T. C. economist,
asserted that many anti-trust cases
"have not been properly presented to
the Supreme Court.”
Mr. Ballinger said that if Govern
ment attorneys had emphasized the
economic effects of monopoly, they
might have won more anti-trust cases.
The economist asserted that "toll
takers” in Wall Street had been leaders
In building up monopoly by "plotting
for the last SO years to cheat, force or
maneuver more honest men out of
their property.”
Statistics on the national business
structure were submitted by Mr.. Bal
linger, who said that between 1926
and 1932 one per cent of the banks
controlled 99 per cent of the coun
try's deposits.
In the 1926-1932 period, he added. 5
per cent of the water power companies
controlled 75 per cent of the facili
ties; 5 per cent of the iron and steel
companies controlled 95 per cent of
iron and steel reserves; 5 per cent of
the copper companies controlled 55
per cent of copper reserves, and 5
per cent of all corporations controlled
80 per cent of corporate assets.
The Pullman and Aluminum com
panies enjoy “practical monopolies,”
Mr. Ballinger said, and large corpo
rations in other fields control a lion’s
share of the business.
a
SECOND MEASURE
TO FILL IN TAX GAP
MAY BE PROPOSED
Doughton Opposes Haste,
Feels Those Affected
Should Be Heard.
TREASURY IS PREPARING
ALTERNATE PROPOSALS
Chiefs Pessimistic Over Reviving
Provision on Closely-Held
Corporations.
BACKGROUND—
Acknowledging consistent criti
cism of undistributed corporate
profits and capital gains taxes,
House Ways and Means Committee
this winter proposed modifications
of both in bill now before House.
Included was new provision to ap
ply 20 per cent surtax against un
distributed income of closely held
operating companies, stricken out
by vote on floor yesterday after
noon.
B$ the Associated Press
Chairman Doughton of the House
Ways and Means Committee today
suggested that Congress might be
asked to enact a second revenue bill
to make up the estimated $30,000,000
to $45,000,000 pared from the prospec
tive yield of the tax revision measure
by removal of a levy on closely held
corporations.
He said that was his own idea and
did not necessarily represent the views
of his committee.
He added he had not received from
the Treasury any suggestions for ad
ditional revenue and had not asked for
any, although he had discussed the
revenue situation with Secretary Mor
genthau this morning.
Earlier Mr. Morgenthau told report
ers the Treasury was preparing alter
nate revenue-raising proposals for Mr.
, Doughton’s guidance should the lat
ter desire them.
May Go on to Senate.
Mr Doughton said if the House per
sisted in its refusal to approve a tax
on closely-held corporations the tax
bill might be sent to the Senate, and
another revenue measure brought in
later.
‘ Personally,” he said. ‘‘I feel we
; should have a little more time to con
j sider additional revenue. It is not a
1 wise or proper way to legislate by at
i tempting to raise millions of dollars '
! on the floor of the House.
‘‘If we are going to put any more
of a tax burden on any one I think
we should give those affected an op
portunity to be heard.
‘‘As to the best means of raising
more money. I am undecided.”
Mr. Morgenthau declined to com
| mem on yesterday's House action ex
i cept to say the administration wanted
I any revenue losses in the bill made up.
A recheck of the bill as revised up to.
last night, he added, showed $41,000,
! 000 more was needed.
■ Mr. Morgenthau spent most of the
I early morning hours in telephonic
communication with Democratic lead
j ers of the House and announced his
readiness to furnish substitute pro
posals afterward. He indicated the
suggestions, when requested, would be
sent in the form of a letter from
' himself to Mr. Doughton.
Little Hope Is Held.
Administration leaders in Congress
held little hope of persuading the
House to restore to the tax bill the
deleted levy on closely held corpora
tions.
They decided to call for another vote
on the proposal, despite their general
pessimism that it merely would re
affirm the 180-to-124 margin by which
the tax was blue-penciled yesterday.
Democratic members of the House
Ways and Means Committee decided
not to recommend substitute levies to
offset the revenue loss.
They declared that since the entire
House had discarded the so-called
“IB" tax, it should assume the re
sponsibility for raising more funds or
should turn the task over to the
Senate.
Urges Liquor Tax Increase.
Representative Robertson, Demo
crat, of Virginia proposed raising the
Federal iiquor tax from $2 to $2.25
• See TAXES, Page A-5.)
20TH STREET HOUSE ■
DAMAGED BY BLAZE
Four Engine Companies Battle
Fire—Dog Standing Guard
Proves Problem.
Fire broke out in the basement
storage room af a four-story apartment
house at 1731 Twentieth street N.W.
at noon today and ate its way rapidly
through the walls to the top floor.
Four engine companies answered the
alarm, and at 1 p.m. firemen were busy
pouring streams of water into the walls
at several points on all four floors
and in the basement, where the dam
age was heaviest.
The building, occupied chiefly by
Federal employes, was deserted when
the fire started, except for three per
sons, Samuel Caddie, 27, caretaker: «
a woman tenant on the second floor
and a maid. All left the bidding
safely.
Firemen encountered slight diffi
culty with a large light brown German
police dog lying on guard at a second
floor apartment listed to Mr. and Mrs.
C. F. S. Sharpe.
The caretaker said he had no idea
how the fire started. He was In his
basement apartment at the time. The
building is owned by a Government
worker, George Williams, w'ho was
unable immediately to estimate the
damage.
Damage to the interior was exten
sive, as well as to walls and to win
dow’s. Firemen, working in the rear
of the building, had to throw nu
merous burning articles of furniture
and personal property out of the
windows.

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