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Evening star. [volume] (Washington, D.C.) 1854-1972, March 21, 1938, Image 3

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Morgan Partner Came to Aid
With Million to Redeem
Gratuity Fund, He Says.
■y the Associated Press.
NEW YORK. March 21.—Richard
Whitney, 49, expelled former president
of the New York Stock Exchange, dis
closed at a public hearing today that
he was in serious financial straits In
November, 1937, and that his brother,
George Whitney, a partner in J. P.
Morgan & Co., came to his aid with a
personal loan of $1,082,000.
The gray-haired defendant, who
has pleaded guilty to two grand lar
ceny indictments, denied that he was
‘'shielding’’.^ any of his associates in
the investigation of the collapse of
Richard Whitney & Co.. Wall Street
brokerage firm. He insisted he alone
was responsible for the crash.
Assistant Attorney General Ambrose
V. McCall, conducting the hearing,
brought out that the purpose of the
million-riollar loan guaranteed by
Whitney's brother was to enable Rich
ard Whitney to redeem securities
originally in the New York Stock Ex
change gratuity fund.
Whitney testified he had misappro
priated these securities and pledged
them to the Corn Exchange Bank for
a loan.
He said the Gratuity Fund Com
mittee made a demand upon him last
November for the return of the securi
ties and that his brother came to his
aid. The gratuity fund amounted to
about $2,000,000. Richard Whitney
was custodian of the fund.
Group Health
(Continued From First Page.)
ence of a Group Health physician re
gardless of the critical nature of the
case, that any contact or 'consulta
tion' between this physician and a staff
physicial of Group Health would have
to be confined to formal notes or con
versation on the telephone.
Dr. Price concurred with me that
every concession should be made in
order to obtain the services of this
heart specialist for this patient and
such arrangements were immediately
concluded. Dr. Price informs me that
this physician was both sympathetic
and willing to give his services in any
form consistant with the rules of the
Medical Society of the District of Co
lumbia. We appreciate his attitude
and are happy to have obtained his
services in view of the critical nature
of the patient's illness.
I feel sure that a gross misunder
standing has taken place, as it is in
conceivable that you, as president of
the District society, would take such
an autocratic stand in committing the
medical profession to such an in
humane policy. If true, your leader
ship of the medical society has not
only barred G. H. A. physicians from
their right to administer to human
needs in the hospitals of Washington
but from their right and their duty
to avail themselves of the benefit of
consultation with other leaders of the
medical profession in administering
to their patients.
Chest Enters picture.
“It is vitally important that we
have a clear understanding of your
position in the matter immediately,”
concluded Mr. Kirkpatrick. "I, there
fore. await word from you.”
The Community Chest again today
was brought into the picture of the
difficulty which Group Health doctors
are having because they are barred
fiom the hospitals. A delegation of
G. H. A. members from the Social
Security Beard called upon Director
Herbert Willett of the Community |
Chest this morning to ask about the -
trouble. The delegation of three was
headed by Lawrence Conant. They
are also contributors to the Commu
nity Chest. Mr. Willett, after the
conference, explained that he had
told the delegation there was nothing
the Chest could do now.
- — -
t. v. a.
(Continued From First Page.)
lead President Roosevelt to demand
his resignation or to seek his ouster.
The President, who had asked the
three T. V. A. directors to back up
their charges and counter charges j
against each other, gave Chairman ;
Morgan until 1:30 p.m., Eastern stand- I
ard time, to answer "Yes” or "No”
as to whether he was willing to pro
ceed in the inquiry.
Faces Contumacy Verdict.
A negative answer, Mr. Roosevelt
said, would prove the T. V. A. head
guilty of contumacy—disregard of au
thority.
The President told Chairman Mor
gan alter he had refused to testify
last Friday:
"On the face of the record as it
stands today, the charges of the other
directors that Chairman Morgan has
obstructed and sabotaged the work of
the T. V. A. must be accepted as true.
Chairman Morgan having refused to
offer testimony in denial of the
charges.”
Senator Bridges, Republican, ol
New Hampshire, one of those demand
ing a thorough T. V. A. investigation
by Congress, declared that “if any
one resigns from the T. V. A., I shail
demand the resignation of the other
two directors.”
(Besides Dr. Morgan, the T. V. A.
directorate includes Harcourt Mor
gan and David Lilienthal. Chair
man Morgan accused the other two
of bad faith” and “official mis
conduct,” and they countered with
a charge that he sought to “rule or
ruin” in T. V. A.)
Probe Seen Certain.
Mr. Bridges contended there should
be no resignations until a full and com
plete investigation of the agency had
been made.
"Results of such an inquiry would
determine whether any or all should
resign.” he said.
As the third session of the White
House inquiry got under way, it ap
peared virtually certain that Congress
would order the investigation.
Immediate legislative interest in
T. V. A. centered, however, on a pro
posal to spend $2,613,000 to start a
new dam near Oilbertsville, Ky.
Death Car and Principals in Shooting
The bullet-riddled automobile of Theodore B. Daugherty,
Washington musician, shot to death by Falls Church police
early yesterday after he allegedly tried to run down the officers.
DR. THOMAS CRISP
COLLAPSES AND DIES
Physician Suffers Stroke Xtfhile
Playing Golf and Succumbs
in Hospital.
Dr. Thomas Benton Crisp, 45, of
800 E street N.E., for many years a
practicing physician here, died last
night at Walter Reed Hospital a few
Dr. T. B. Crisp.
nours alter col
lapsing on the
golf course of the
Columbia Coun
try club. Death
was believed due
to a cerebral
hemorrhage.
A native of
Washington, Dr.
Crisp was grad
uated in med
icine at George
Washington Uni
versity in 1919
and had prac
ticed here since.
Earlier, he had
graduated in pharmacy at George
Washington.
Dr. Crisp was a member of the
Columbia Country Club, the Myron
M. Parker Lodge o/ Masons, Almas
Temple of the Shrine and the Dis
trict of Columbia Medical Society.
Surviving are his widow, Mrs. Mar
guerite V. Crisp: his mother. Mrs.
Elizabeth Crisp; three sons, Thomas
B.. jr.; Donald and Robert Crisp; two
daughters, Joyce and Gail Crisp: a
brother. Dr. Edwin S. Crisp, physician,
and two sisters. Mrs. Edmund Mallet
and Mrs. Dorothy Hanson, all of this
city.
Funeral arrangements were to be
announced later.
Taxes
_(Continued From First Page.)
least and preferably five. The cham
ber representative opposed the House
revision of the present definition of
capital assets.
(3) Complete elimination of the
provision calling for publication of
corporate salaries.
Surtax Rate Cut.
Two members of the House appeared
before the Senate committee to appeal
for reversal of actions by their own
colleagues. Representatives Dirksen,
Republican, of Illinois asking the dis
tilled spirits tax be restored to $2 per
gallon rather than $2.25, while Repre
sentative O'Toole, Democrat, of New
York, asked removal of the excise tax
of 6 cents per pound on pork importa
tions.
In support of his plea, Representa
tive Dirksen said the higher levy would
stimulate bootlegging, an evil which
he termed a "perfect scandal’’,,in
Washington. He said he had con
ducted a door-to-door survey here and
found an astounding quantity of boot
leg whisky and gin in private homes.
Representative O'Toole reminded the
committee that pork importations
amounted to only 1 per cent of do
mestic productions and the imported
brands already sell for 12 cents per
pound higher than domestic pork, a
condition of protection in itself. Also,
he said, Poland’s pork sales here had
enabled them to increase purchases of
American cotton by 1,470 per cent in
eight years.
Asks Pork Tax Retention.
F. E. Mollin of the American Live
Stock Association appeared later to ask
retention of the pork tax and addition
of one of 3 cents per pound on imports
of canned beef. Argentine canned beef
has driven the American canned prod
uct almost completely off the market,
he said.
"You will make more money, lots of
it. by telling business, labor and in
vestors that the principle of undis
tributed profits tax has been aban
doned completely and forever,” Mr.
Alvord said. "All of them have Joined
in opposing the principle.’’
He rated this as most necessary of
the suggested revisions with the pro
posed treatment of capital gains and
lowered surtaxes following in that
order.
. "Don’t encourage much hope to
people on that proposition,” Chairman
Harrison warned Mr. Alvord In refer
ence to the proposal for retroactive
relief to corporations affected (by the
undistributed profits tax during the
past two years.
Representatives of the American
Mining Congress submitted seven rec
ommendations, Including complete
elimination of the undistributed profits
SULTAN PREDICTS
‘GRANDEST’CAPITAL
Engineer Commissioner Tells
Building Officials' Meeting
of Flans.
Washington in 50 years will be the
most magnificent Capital In the world.
Col. Dan I. Sultan, Engineer Commis
sioner for the District, told the dele
gates to the twenty-third annual
Building Officials' Conference of Amer
ica today. He spoke at the opening
session of the five-day convention at
the Willard Hotel.
"We have an excellent planning
commission here," Col Sultan said,
"the National Capital Park and Plan
ning Commission."
"I've often said I would like to live
another 50 years to see the plans of
that commission come true.
"If they do as well as they've done ,
during the last 10 years, we'll have the
grandest Capital the world knows.
We like to visualize it as that now.
but wait and see how much better it
is going to be."
Col. John W. Oehmann, building in
spector for the District, opened the
session, and Prank C. Keller, presi
dent of the organization, followed Col.
Sultan on the speakers' program.
Rufus Lusk, secretary of the Building
Owners and Managers' Association of
the District, was to talk this afternoon
on "The Building Trends in Your
Town."
------•
Bulgarians Elect Legislators.
SOFIA, Bulgaria, March 21 (/»»».—
Forty-one deputies. 30 of whom were
reported favorable to the government,
were elected to Parliament yesterday
in elections in the Phlllppopolis and
Vraca districts.
tax in favor of a flat corporation rate
and restoration of a flat rate on capital ;
gains.
Former Senator Thomas W. Hard- j
wick of Georgia appeared to ask re- .
moval of the excise tax on cold and
cleansing creams.
Postponement of the tax return fll- .
ing date for corporations from March
15 to May 1 was asked of the com- I.1
mittee by Prof. Fred R. Fairchild of 1
Yale University, appearing for the
Connecticut Manufacturers’ Associa
tion.
’’Industry is becoming overburdened
by the requirement of reports for the
State and Federal Governments,’’ Dr.
Fairchild said. ,"It is a real hard- '
ship to have all this material prepared
by March 1 each year and I feel
the relief accorded by a later filing
date would be valuable.”
The chamber witnesses also sup
ported the House provisions effecting
a combination of estate tax schedules
for purposes of simplification, on con
dition the tax would not be Increased
thereby, but opposed combination and
reduction of present estate and gift
tax exemptions.
The House bill would allow $40,000
exemption against either the gift tax
or the estate tax or both, and would
reduce the annual gift tax exemp
tion from $5,000 to $3,000.
With regard to elimination of the
undistributed corporate profits levy,
the chamber also proposed retroactive
relief to the corporations “unjustly
penalised” in 1936 and 1937, to be
attained partly through an alleviating
general credit of a substantial per
centage of net income for the tax
able year 1937.
In support of its whole program
the chamber declared its acceptance
would be a first step toward “a bal- :
anced budget and financial stability.”
Failure to accept the proposals, it was
added, admittedly would leave the
Treasury facing losses of revenue ap
proaching $1,000,000,000 and mount
ing appropriations over the next sev
eral years. In contrast, it was claimed,
the greatest risk in experimenting
along the lines suggested would be the
possible loss of $300,000,000 over a
year’s period.
MR. DAUGHERTY.
HERBERT C. KNOX.
■■■■...I).... 'I
EDWIN SCHEID.
—Star Staff Photos.
Shooting
<Continued From First Page.)
IVelburn performed an autopsy yester
lay and said the bullet had entered
he musician’s skull low in the back j
md ranged upward. He said he would
nake a report on his investigation
oday to Commonwealth Attorney
Douglas.
It was said at Falls Church police
leadquarters that Officer Knox, son
>f the Rev. U. S. Knox, had been ap
xiinted to the force by the Town
Council about a year and a half ago
md Officer Scheid less than a year
igo.
Mayor Daniel today put up $2,500
sail for each of the officers.
Rites Tomorrow. ^
After the shooting, the officers
sailed the Clarendon rescue squad to
•emove the wounded man to the hos
>ital.
Mr. Gloth said today he had not
ret been able to learn where Mr.
Daugherty had been prior to the
ihooting, although he believed he may
rave been visiting his mother-in-law.
Mrs. George Frasier, who lives in Falls
Church. It also was said the musi
:ian, an accomplished accordionist, \
nay have been interviewing orchestra
leaders in the county with a view to
lecuring a Job.
The musician, a native of Arling
ton County, where his family was
well known, was married about two
years ago. He once served in the
Navy.
Funeral services will be held to
morrow at 2 p.m. at Ives’ undertak
ing establishment in Clarendon, fol
lowed by burial in Arlington National
Cemetery.
----
Bicycle Races Set.
The National Capital Wheelmen will
bold a program of bicycle races, the
Drat of the spring season, around the
Polo Field in West Potomac Park on
Sunday from 1 to 3 p.m.
MEXICAN OIL ISSUE
STUDIED BY HULL
Adjustment of Differences
on Basis of Fairness to
All Sought.
Secretary of State Hull mid today
this Government m striving to help
work out an adjustment of the dif
ferences between the Mexican govern
ment and American and British oil
companies operating in Mexico on a
basis of fairness to all concerned.'
The State Department is seriously
concerned about the possibilities in
herent in the situation brought about
by the Mexican government taking
over approximately $400,000,000 worth
of the foreign oil properties as the re
sult of a long labor controversy, the
Secretary said.
Mr. Hull said he had a lengthy
conversation today with American
Ambassador Josephus Daniels in
Mexico City, acquainting him with all
phases of this Government’s attitude.
The Secretary said he hoped the diffi
culties could be adjusted fairly before
the situation reached an acute or too
highly complicated stage.
Copies of the Mexican laws relating
to expropriation of foreign properties
have been on his desk for study dur
ing the last several days, Mr. Hull
disclosed. He said he felt a more
usual course for the Mexican govern
ment to have taken in the oil situa
tion would have been to establish
what would be equivalent to a re
ceivership in this country, but that
had not been done.
In reply to questions seeking more
specific information about what steps
this Government is taking in the
matter, especially whether Ambassa
dor Daniels would outline the United
States' attitude to the Mexican gov
ernment, Secretary Hull said he could
not undertake to discuss the matter
further at this time “for obvious rea
sons.”
SHOOTING FOLLOWS
TRAFFIC ACCIDENT
Colored Man Near Death and
Officer Slaihed at Remit .
of Altercation.
John Butler. 23, colored. 700 block
of Lamont street N.W., was near death
In Casualty Hospital from gunshot
wounds today, while two other col
ored men, one his brother, were held
for Investigation, the aftermath of
an altercation with a policeman Sat
urday night over a slight automobile
collision.
In the same hospital was Officer
Edmund P. Pitsgerald, 1241 Baum
street N.E., attached to the fifth pre
inet, who fired on the colored man
with his service revolver after having
been slashed about the head and
body with a knife or raaor. The offi
cer’s condition was described as not
aerious.
Those held for investigation were
Benjamin L. Butler. 26, a plumber, of
the first block of Ployd avenue N.W.,
and Bdward Stafford. 23. laborer. 300 :
block of Twelfth street 8.B.
The collision occurred at Sixth and
K streets NI. Policeman Pitagerald
was off duty and his brother Russell
was riding with him. Witnesses said
their automobile halted at a atop sign, i
and a car containing three colored :
men bumped it from behind. The
driver of the rear car blew his horn.
The officer went to the other ear to
remopstrate. Butler and a second col
ored man jumped to the street and a
scuffle ensued.
Plve shots were fired from Policeman
Pltsgerald's service revolver after he
had geen knocked down and slashed.
John Butler, wounded, fled Into an
alley and collapsed.
It’s Really a Dog’s Life
Woefully looking and waiting for his master, this Great
Dane is spending the first day of spring in a cell at the eighth
precinct. He was “arrested” yesterday because he was running
about alone. Police said he would be turned over to the pound
if not claimed today. —Star Staff Photo.
PERMIT IS ALLOWED
FOR 4-H CONVENTION
Use of Part of Monument Grounds
Granted for Encampment of
200 Here in June.
C. Marshall Finnan, superintendent
of the National Capital Park*, today
granted a permit to the Department of
Agriculture to utilize part of the
Washington Monument grounds for
the twelfth national boys' and girls’
4-H encampment, June IS to 23.
Park officials explained that the
camper* will use the area west of the
Propagating Gardens, near the Bu
reau of Engraving and Printing, the
camp grounds being south of the
Washington Monument and near the
Tidal Basin.
About 200 boys and girls and 4-H
Club leaders are expected to parti
cipate in this encampment, park au
thorities were advised, and every State
in the Union will be represented. M.
C. Lehman, administrative assistant
to the director of extension, Depart
ment of Agriculture, who is in charge
of arrangements for the encampment,
requested the permit. The girls and
boys who will come here represent the
outstanding young fanners of the Na
tion, officials said.
Pastor Reads
Marriage Rite
Into Sermon
Declares Few Couples
Hear Ceremony
at Wedding.
For the first time in his 18 years as
pastor of the West Washington Bap
tist Church, the Rev. C. B. Austin
last night read the marriage service
as part of his sermon.
Thirty of the 88 couples the Rev.
Mr. Austin has Joined in matrimony
at the pastorate were In the congrega
tion to hear the pastor unfold his ideas
on the secret of happiness In married
life.
Urging the couples to make married
life a “daily duet,” the Rev. Mr. Austin
declared that husbands and wives
should learn to give and take, and
respect each other’s viewpoints.
“Happiness in married life means
the happiness of two made by two,” he
said. “Neither one can do all as no
one Individual can sing a duet.”
Self-control, kindness, co-operation
and a true partnership wers listed as
qualities that contribute to married
happiness.
Since, he declared, few couples hear
the marriage ceremony while It Is
being read, they should study it before
the ceremony and make an earnest
effort to practice the marriage vows.
He then read the rite.
umtm
Guard Your Health tl
This Spring! II
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Plebiscite Proposed!
We propose a city-wide popular vote on the most economical
and efficient method of keeping homes comfortably warm. Our
candidate la
Marlow*s Famous Reading Anthracite
We would like to have yon (and every Washingtonian) try this
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at least one ton? Give us a call.
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Quality amd. AatiAfadum M 39
District 3324 ' W. Stokes Sammons
ATTENTION!
HAUSER STUDENTS
Headquarters for all Health Foods
recommended by Bentamm Gayeiord
Hauser is
THE VITA HEALTH FOOD CO.
619 12th St. (Betw. F 6 G St*. I
3040 14th St.
fOpen Freninea and Sundays)
For Information and Delirery
Call Columbia 3080
Special Selling
FLOOR SAMPLE
UPHOLSTERED FURNITURE
(200 Fine Karpen Pieces)
GREAT REDUCTIONS
To make room for new ship
ments of Summer Furniture, we
are offering these quality built
Karpen pieces at substantial
savings to move quickly. These
are from our regular, carefully
selected pieces and groups. A
suggestive few only are listed
below.
! 2 Solid Hondo*** Mohofony Opon 827-50
I Arm Choir* (worn $34.75).
1 Chippondol* 2-Pe. K-rP** •*- *179
topottry (wot $235)..
1 Korpon D*w*-Co*hi*nod ™ 849-50
Choir, rntt domotk (wo* $79)
3 D«wn-Cothionod Korpon Lov* SooH, $95
domotk (woro $125).
1 Korpon Brocodod^ Mohoir *-Pe. $225
Suit*, blu* (wo* $269)---.
I 1 2-Pe. Korpon Livinf Boom Suito, 8225
corvod toroorm* (wo* $265) -.
, Down-Cuthionod Modorn Loun** Choir $95
(wo* $145), now--..-.
1 Hifk Book Corood Hondum* Mohofony $85
Win* Choir (wo* $125).
1 $645 Down-Cuohionod F»««h $^95
Suit*, 2 pioeo*- Sotin btocadod domo.k. **
| 1 $345 Froneh Soft, two* brecotoll*, 8225
I down cushion*
1 Tuftod Book Korpon Loun** Choir, 839-75
curly ihohoir (wo* $59.50»
1 Comfortoblo Korpmi Loun** Choir, 839-75
ru*t mohoir (wo* $59.50)
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