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Evening star. [volume] (Washington, D.C.) 1854-1972, March 24, 1938, Image 1

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WEATHER.
(D. S Weather Bureau Forecast )
Fair and colder, with lowest tempera
ture about 35: tomorrow fair and warmer;
diminishing northwest winds. Tempera
tures today—Highest, 71, at midnight;
lowest, 52, at 3 p.m.
Full report on page A-2. , '
Closing New York Markets, Page 18
. ti ! '• .•
• »
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
MP) Means Associated Press.
86th YEAR, No. 34,295.
WASHINGTON^D^C., THURSDAY, MARCH 24, 1938-FORTY-SIX PAGES. *»*
Entered ms second class matter mnT3tti TP /~iTPXrrrC?
post offlee. Washington. D. C. Jl XlXlJli-Ej VjXjJ\ X Q.
PRESIDENT SELECTS FIVE
TO PREPARE A PROGRAM
OF LOANS TO BUSINESS
A-■-—....—
Morgenthau, Jones
and His Son on
Committee.
INITIAL SESSION
HAS BEEN HELD
Ability of Private
Agencies to Aid to
Be Studied.
BACKGROUND—
Business recession which began
last fall brought criticism of ad
ministration economic policies and
caused President Roosevelt and his
advisers to undertake special con
sideration of plans for stimulating
industry. Series of conferences be
tween Federal officials and business
leaders stressed stagnation of
money, difficulties of financing en
terprices over emergency period.
Plight of small business man was
pictured as desperate at hectic
meeting held here recently under
auspices of Secretary of Commerce
Roper.
Ey the Associated Press.
Secretary of the Treasury Morgen
thau announced today President Roose
velt has asked a committee of high
Federal officials to prepare a program
of financial aid to business.
The Treasury head, who is chairman
of the committee, said the group would
"go over various suggestions for loans
to industry, including small business,
and try to put something together that
Is constructive.”
He added that he felt there was a
real need for expanded financing,
particularly of small business, but said
he did not know whether the Gov
ernment could do anything about it.
One of the first things that the
committee will study, he said, is the
ability of private institutions to fur
nish such financing.
With Secretary Morgenthau on the
committee are James Roosevelt, son
and secretary of the President;
Chairman Jesse H. Jones of the Re
construction Finance Corp., Vice
Chairman Ronald Ransom of the
Federal Reserve Board, and Chair
man William O. Douglas, chairman
of the Securities Commission.
Preliminary Session Held.
The committee held a preliminary
session yesterday and will meet from
time to time, Mr. Morgenthau said.
The President turned over to the
group hundreds of letters and other
proposals for aiding business and
asked the group to sift them in search
for some constructive action. Mr.
Morgenthau indicated the study would
continue indefinitely.
The Secretary said the study really
dated back to the February conference
of small business men here. Easier and
more generous financing was one of
the principal demands of that group.
Ordered Lending Resumed.
Primarily as a result of that con
ference, President Roosevelt directed
the R. F. C. to resume industrial
lending. Chairman Jones invited
business men to submit loan applica
tions and requested the banks to join
the R. F. C. in making as many loans
as possible.
However, most of the small business
men asserted the R. F. C.,. like the
banks, was .too conservative in making
loans and that some more liberal
method of financing should be devised.
Many of them favored the plan pro
posed to Congress by Senator Pepper,
Democrat, of Florida for setting up a
new Federal financing agency to in
sure business loans.
WENDELSllifASKS
FOR $3,600,000
Kidnaped Lawyer Seeks Damages
From Hoffman, Parkers
and Five Others.
By the Associated Press.
J^EWARK. N. J„ March 24.—Paul
H. Wendel filed suit in Federal Court
today seeking $3,600,000 damages from
former Gov. Harold G. Hoffman. Ellis
H. Parker, sr„ and jr„ and five other
persons for alleged conspiracy in his
kidnaping and torture, which he said
caused him to confess falsely the
Lindbergh kidnaping.
The former Trenton attorney
charged Hoffman “directed and con
trolled” the crimes committed against
him.
Others named defendants were Mrs.
Anna Bading, secretary to Mr. Parker,
sr., former chief of Burlington County
detectives; Gustav Lockwood, a state
Motor Vehicle Department inspector,
who investigated the Lindbergh
Mauptmann case for Mr. Hoffman
When he was Governor; Carroll T.
Jones, head of the State Colony for
Feebleminded Males at New Lisbon,
where Mr. Wendel was confined after
being brought from Brooklyn, N. Y.
Also named were James Kirkham,
chief of Mercer County detectives,
to whom Mr. Parker, sr., turned over
Mr. Wendel, and Walter Yoos, Mrs.
Bading's brother.
TEA WITH FIRST LADY
Girl Contest Winner Invited by
Mrs. Roosevelt.
DENVER, March 24 C4»).—Eighteen
year-old Lila Elliott, who said she had
not ridden in a street car or seen a
'‘high” building until last week, will
have tea in Washington next month,
with Mrs. Franklin D. Roosevelt.
Lila, a native of the mountain val
ley hamlet of Mosca, will be given a
four-day visit in Washington as first
prise in a good citizenship contest.
She said she never had been in a
"big town” until she played in a
basket ball tournament at Colorado
Springs last week.
i ' ft
Husband Is Held After Wife
Is Found Near Death'on Road
-- A MMH
Mrs. Blanche Landis Is
Attacked With Stones
and Sandbag.
James L. Landis, 23, a probationary
fireman, was 'quoted by police today
as having admitted he scuffled with j
his estranged wife, Mrs. Blanche Ger
trude Landis, 22, shortly before she
was found early this morning, beaten
with a sandbag and stones and appar
ently dying on a lonely section of
Twenty-fourth street N.E.
While the pretty blond victim of the
attack lay unconscious at Casualty
Hospital, where last rites of the Catho
lic Church were administered, Inspec
tor Bernard W. Thompson and de
tectives of the homicide squad were 1
taking a statement at noon from the :
young husband, who denied that he
attempted to kill his wife.
Evidences of Struggle.
Mrs. Landis suffered a compound
fracture of the skull and deep cuts
about the face and body. She was
found near Shepherd street, lying
face-down and unconscious on a
blood-spattered section of pavement
which indicated a terrific struggle had
taken place. Nearby were the woman's
shoes, two bloody, jagged stones and
broken sections of a man s sock which :
had beep used as a sandbag.
Pvt. Landis, attached to the fire j
HEA1GS0NT.VA
House Group Sets Session
on Plan—Bridges Seeks
to Impound Records.
BACKGROUND—
President Roosevelt’s removal of
Dr. Arthur E. Morgan from the
Tennessee Valley Authority cleared
the way for a congressional investi
gation of that agency, but the leg
islators are in sharp disagreement
as to how the inquiry should be
conducted Question as to whether
it shall be a joint investigation or
by Senate alone remains unsettled,
and effort to bar ’’partial” investi
gators likewise is still in contro
versy.
On the heels of the disclosure that
Senator Bridges, Republican, of New
Hampshire will make an attempt to
imoound all the records of the Ten
nessee Valley Authority, Chairman
O’Connor of the House Rules Com
mittee announced today that his group
would begin hearings Monday on pro
posals for an investigation of the
T. V. A.
Mr. O’Connor offered it as his guess
that "there will be a joint congres
sional investigation,” although Sen
ator Norris, Independent, of Nebraska,
father of the T. V. A., wants an inde
pendent Senate inquiry. Senate Ma
jority Leader Barkley supports the
proposal for a joint investigation.
McNary Blocks Norris.
An attempt by Senator Norris this
morning to obtain immediate consider
ation of his resolution for a Senate
investigation was blocked by Senate
Minority Leader McNary. Soon there
after it became known that Senator
Bridges will offer a resolution for the
impounding of the T. V. A. records.
In denouncing the President’s re
moval of Chairman Arthur E. Morgan,
Senator Bridges pointed out yesterday
that the records now are in the pos
session of Dr. Harcourt Morgan and
David E. Lilienthal, T. V. A. opponents
of the deposed chairman. Senator
Bridges suggested there was a pos
sibility that records essential to a
thorough investigation of the T. V. A.
might be tampered with.
Delay Till Next Week Due.
Senator McNary said he favored an
investigation of T. V. A. and did not
care whether it'be made by a Senate
committee or a Joint congressional
committee. He made it clear, how
ever, that he will insist upon taking
up the calendar after the reorganiza
tion bill has been disposed of and
would oppose any effort to secure
action on the T, V. A. proposal until
that time.
Unless the Oregon Senator changes
his mind, therefore, it seems im
probable that action on the T. V. A.
investigation can be taken before next
week, when it is expected the final vote
will be had on the reorganization bill.
Senator Norris proposed that dis
cussion of his resolution be limited to
half an hour, but this was unsatisfac
tory to Senator McNary, who said he
would insist upon the principle of
orderly procedure.
CARRICK DIVORCED
American-Born Countess Obtains
Decree on Misconduct Charge.
LEWES, Sussex, England, March 24
(JP).—'The American-born Countess of
Carrick won an undefended divorce
today from the Earl of Carrick on
charges of misconduct
The Countess of Carrick is the for
mer Mrs. Marion C. Edwards of Phila
delphia, Pa., daughter of Daniel C.
Donoghue. She and the earl, a fre
quent golfing companion of the Duke
of Windsor, were married in Doyles
town, Pa., August 19, 1930. They have
one son.
At the time of her marriage the
countess gave her age as 37 and said
she was a journalist
4
MRS. BLANCHE LANDIS.
boat, rushed to the hospital on being
notified by telephone that Mrs. Landis
was found, near death, on the street
about 3:20 am. He was quoted as
having stated at first that he was on
night duty at the fire house and did
not leave during the night.
The husband, estranged from his
wife since August, went to No. 12 pre
i See ATTACK,‘Page"A-3.)
ABOLITION OF GAO.
VOTED BY SENATE
Ballot Is 47 to 36 to Give
Part of Functions to an
Auditor General.
BACKGROUND—
One of favorite reform measures
of administration is pending bill
to revise line-up of Federal depart
ments and agencies. Aware of bit
ter opposition, majority leaders
withheld bill from consideration in
special session. Test votes on at
tempted amendments in Senate
show administration strength.
By J. A. O'LEARY.
The Senate this afternoon voted. 47
to 36. to abolish the General Account
ing Office and split its functions be
tween the Budget Bureau and a new
auditor general's office, created by the
pending reorganization bill. The pro
vision eliminates the office of con
troller general.
Last-minute appeals by the opposi
tion failed to break through the ad
ministration line, which for several
weeks has resisted all efforts of a bi
partisan bloc to curb the broad pow
ers in the measure.
The roll call came on the motion of
Senator Byrd. Democrat, of Virginia to
strike out the new system of Govern
ment accounting. This was regarded
as the last major move to amend the
bill, but does not mark the end of the
fight against passage. After several
minor amendments are disposed of the
climax will come on a drive to send the
entire bill back to committee.
There is no limitation on the motion
to recommit, however, and opponents
of the bill may stave off a vote until
next week in the hope of arousing
greater opposition to dangers they be
lieve lie in the wake of powers to be
transferred from Congress to the
executive branch to regroup bureaus.
A new blast was fired at the reorgan
ization bill earlier by Senator Walsh,
Democrat, of Massachusetts, who
charged it gives the President “powers
which no executive has ever exercised,
and which no executive should be per
mitted to hold In reserve.”
Senator Walsh will make the motion
to send the bill back to committee
after all amendments have been acted
on.
"Not since the Supreme' Court reor
(See REORGANIZATION, Page A-7.)
WITHHELD PROFITS
LEVY IS DELETED
DY SENATE GROUP
Finance .Committee Votes
to Eliminate Proviso in
17-to-4 Ballot.
CORPORATE INCOME TAX
OF 18% SUBSTITUTED
Processing and Wartime Income
Assessments Barred to Speed
Bill Along.
By JOHN C. HENRY.
The Senate Finance Committee
today voted to eliminate completely
the undistributed profits tax on cor
porations and to substitute therefor
a flat rate of 18 per cent on corporate
income.
In an effort to clear the way for
speedy enactment of the tax modifica
tion legislation, the committee also
decided against including in the bill
a schedule of processing taxes and a
schedule of heavy wartime income
taxes.
In according further tax relief to
corporations, the committee also
adopted a credit formula for. corpo
rations having net income below $25,
000. The plan would allow deduction
from earned income of 10 per cent
of the difference between such income
and $25,000. The 18 per cent levy
then would be applicable to the
difference.
For instance, a corporation having a
net income of $10,000 would deduct
this sum from $25,000, leaving $15,000.
[ It would then take 10. per cent of this
$15,000, amounting to $1,500. and de
duct it as a credit from the actual
earned income of $10,000. This would
leave $8,500, which would be the
taxable income under the 18 per cent
rate.
*97.000.000 Yield Seen.
Substitution of the 18 per cent flat
corporate tax for the House modifica
tion of the undistributed profits prin
ciple will bring $97,000,000 additional
revenue to the Federal Treasury for
the calendar year 1938. it was esti
mated by Undersecretary of Treasury
Roswell Magill.
According to Treasury estimates
submitted to the committee, the
House plan for corporate taxation
would yield <851.000.000 for 1938,
while the 18 per cent flat rate would
bring in $948,000,000. Continuance of
the present law as enacted in 1936
would bring an estimated revenue
of $873,000,000.
The committee vote to strike out the
controversial undistributed profits levy’
was 17 to 4. with Senator Barkley,
Democrat, of Kentucky; Connally,
Democrat, of Texas; Bulkley. Demo
crat, of Ohio, and La Follette, Progres
sive, of Wisconsin voting in opposition.
Senator Harrison and all the re
mainder of the committee lined up in
favor of repeal.
In the case of the war profits sched
ule. proposed by Senator Connally, it
is expected the committee decision
marks its doom this year since the
Texan himself, a member of the com
mittee, disclosed the decision and
added;
“We want speed on this bill. That's
why we are deciding to let my pro
posal go by.”
The processing tax issue still may
plague sponsors of the revenue meas
ure, however. Senator Pope. Democrat,
of Idaho, backer of the farm-aid tax
(See TAXEsTPage A~5J
---
DR. RICE TO ADVISE
Dartmouth Professor Will Guide
Philippine Finances.
HANOVER, N. H.. March 24 UP).—
Prof. Lloyd P. Rice of the Department
1 of Economics at Dartmouth College
today accepted an appointment as
financial adviser to the Philippine
government for a period of 15 months,
beginning in. June.
Prof. Rice served in 1934-5 as
economic analyst with the United
States Tariff Commission, specializing
on trade and economic problems of
the Philippines. Last year he was
chief economic analyst for the office
of Philippine affairs in the State De
partment and financial adviser to the
Policy Committee of the Joint Com
mittee on United States-Philippine
Relations.
He is a native of Granby, Conn.
Summary of Today s Star
Page. Page.
Amusements. Obituary_A-1Z
B-14-15 Radio...C-S
Comics -C-8-9 Short Story..B-ll
Editorials ...A-10 Society _B-3
Finance.A-17 Sports_C-l-3
Lost & Found.C-5 Woman’s Pg...C-4
FOREIGN.
Britain may join Czechs’ defense,
Hitler is warned. Page A-l
Japanese‘believe they are targets of
U. S. Navy bill. Page A-l
Smoke screens used by Rebels strking
into Caltalonia. Page A-l
Chinese attack foe seeking to cross
Grand Canal. .Page A-4
Herrera is named to head Mexican oil
council. Page A-5
Scott abduction trial next month in
Bahamas high court. Page A-16
NATIONAL.
Hearings on proposed T. V. A. probe
set for Monday. Page A-l
Undistributed profits tax eliminated by
Senate committee. Page A-l
Business aid program by Federal offi
cials planned. Page A-l
Senate votes to abolish General Ac
counting Office. Page A-l
WASHINGTON AND VICINITY.
Hearings on D. C. representation
amendment due in May. Page A-l
Officer Scheld held on murder charge
in Daugherty shooting. Page A-l
Young naval officer kills self in nearby
Virginia woods. Page A-S
House approval of D. C. tax bill is
forecast. Page B-l
Ickes announces plans for historic C.
4s O. Canal Page B-l
J
EDITORIAL AND COMMENT.
Editorials. Page A-10
This and That. « Page A-10
Stars. Men and Atoms.,- Page A-10
Answers to Questions. Page A-10
The Capital Parade. Page A-ll
David Lawrence. Page A-ll
Mark Sullivan. Page A-ll
Jay Franklin. Page A-ll
Delia Pynchon. Page A-ll
SPORTS.
Simmons proving effective with bat
in early games. Page C-l
Case of Browns shows slugging is not
enough to win. Page C-2
Helen Moody, in comeback, appears up
to old net skill. Page C-2
East determined to break West's rule
in rowing’classic. Page C-3
FINANCIAL.
Low-yield bonds gain (table).
Page A-17
Stocks improve (table). PageA-18
Curb shares higher (table). Page A-19
Clearings still lag. Page A-19
Katy expenses soar. Page A-19
Auto firms push research. Page A-19
MISCELLANY.
Shipping News. Page B-2
Vital Statistics. Page B-2
City News in Brief. Page B-2
After Dark. * Page B-7
Nature’s Children. PageB-12
Bedtime Story. Page B-13
Letter-Out. Page C-8
Cross-Word Puzsle. P>ge C-8
Contract Bridge. Page C-9
*4
THE HANDWRITING ON THE WALL!
ON D. C. VOTE PLAN
Hope for Definite Action
on Issue Voiced by
Chairman Sumners.
By WILL P. KENNEDY.
Hearings will start early in May,
probably the first week, on the Nor
ton-Capper joint resolution which pro
poses to grant full national representa
tion to the residents of the District of
Columbia on the same basts as resi
dents of a State, through a constitu
tional amendment.
This was announced today by Chair
man Hatton W. Sumners of the House
Judiciary Committee, who expressed
the hope definite action will at last be
taken on this subject.
“It is about time that Congress
finally disposed of this question. We
should do whatever is right for the
people resident at the seat of Govern
ment." he said. “My committee has
authorized me to arrange for these
hearings, as requested by a delegation
from the Citizens' Joint Committee on
National Representation.”
The delegation was headed by Dis
trict Commissioner George E. Allen.
Chairman Sumners explained that he
will consult with Theodore W. Noyes,
chairman, and other representatives
of the Citizens' Joint Committee re
garding witnesses who will be invited
to testify at the hearings.
Resolutions Identical.
House Joint Resolution 232 was in
troduced by Representative Norton.
Democrat, of New Jersey, former
chairman of the House District Com
mittee. in February, 1937. It is
identical with Senate Joint Resolution
13, introduced by Senator Capper, Re
publican, of Kansas, former chairman
of the Senate District Committee. The
resolution proposes an amendment
to the Federal Constitution empower
ing Congress to grant voting repre
sentation in the Senate and House to
District residents, and to give them
the right to elect presidential electors
equal to the aggregate of the District’s
representation in Senate and House.
It would also grant to District resi
dents the same right to sue and be
sued in the United States courts
throughout the country as possessed
by the citizens of the States and by
aliens.
This resolution, in almost identical
form, has for years been introduced
in each successive Congress. Hear
ings were held before the House Ju
diciary Committee in 1921, 1926 and
1928, but that committee has never
reported out this measure. In the
Senate there have been several hear
ing* before the District Committee,
which in 1922 made a favorable re
port, which was reffiarmed a few
years later. The resolution is now
pending in the Senate Judiciary Com
mittee, whic hhas never held a hear
ing on the proposed constitutional
amendment.
The amendment to the Federal Con
stitution sought under the Norton
Capper joint resolution is sponsored
by the Citizens Joint Committee on
National Representation for the Dis
trict of Columbia, of which Mr. Noyes
is chairman.
Hearing Committee Members.
Arrangements for the forthcoming
hearing are in charge of a subcom
mittee of the Committee on Congres
sional Hearings and consists of Com
missioner Allen, Jesse C. Suter and
Paul E. Lesh. Other members of the
hearings committee are M. W. Bas
tian. Miss Selma M. Borchardt, W.
McK. Clayton, Frank J. Coleman, Ed
ward F. Colladay, John B. Colpoys,
Robert J. Cottrell, Guilford S. Jame
son, Mrs. William Kittle, Thomas E.
Lodge, Malcolm S. McConihe, Newbold
Noyes, bfrs. Louis Ottenberg, Etta L.
Taggart, Evan H. Tucker, Mrs. Harvey
W. Wiley.,Mrs. Evalyn Walsh McLean,
Lowell Mellett, Eugene Meyer, Mrs.
Eleanor Patterson and Mrs. Charles
H. Weston.
The amendment has the support of
several hundred local, national State
and regional organizations, including
local—Washington Board of Trade,
Federation of Citizens’ Association,
representing 65 organizations; the Bar
Association, Central Labor Union, rep
resenting organized labor; national
chamber of Commerce of the United
States, American Federation of Istbor,
National League of Women Voters,
American Federation of Teachers and
National League of Young Democrats
of America.
f
Policeman to Face Murder
Charge in Daugherty Slaying
Scheid Blamed for Death of Autoist. ■
Knox Held as Aide in Preliminary
Hearing in Arlington County.
BACKGROUND—
Storm of controversy and con
fused explanations followed killing
of Washington musician early Sun
day by one of two young Falls
Church policemen firing at auto
mobile. Victim. Theodore B.
Daugherty, had been calling at
home of father-in-law just before
leaving on fatal return trip to
Washington.
Palls Church Policemen Edwin
Scheid and Herbert Knox were or
dered held for the grand jury in the
slaying of Theodore B. Daugherty
after testimony at an Arlington Police
Court preliminary hearing today that
Officer Scheid had expressed fear he
would “go to the electric chair” for
shooting the 31-year-old Washington
musician.
Officer Scheid was charged with
first-degree murder, and Officer Knox
was charged with aiding and abet
ting the murder. They were al
lowed to remain at liberty under the
$2,500 bonds on which they had been
free since the shooting early Sunday.
Police Court Judge B. M. Hedrick
said that while he did not believe suf
ficient evidence had been produced at
the hearing to sustain the charges in
the warrant, he did believe the evi
dence was sufficient for the men to be
charged with a felony and, "there
fore. 1 feel it my duty to hold them j
for the grand jury.”
Neither of the defendants testified
during the surprisingly brief hearing.
The State produced only one eyewit- j
ness to the shooting and relied on
statements by Officers Scheid and j
Knox to Arlington County policemen
to connect them with the shooting.
Shortly before the hearing ended.
(See-DAUGHERTY, Page A-4.) j
_
U. S. WILL BUILD
SUPER-WARSHIPS
Decision to Use Escalator
Clause of Naval Treaty
Revealed.
By the Associated Press.
The United States has decided to
invoke the escalator clause of the
London naval treaty and build battle
ships larger than 35,000 tons. State
Department officials said today.
Secretary Hull said at his press
conference that recommendations to
this effect were being received from
diplomatic and naval representatives
of the United States, Great Britain
and France, who have been consulting
in London for nearly a month.
They have decided on the neces
sity for invoking the escalator clause,
officials said, and a formal notice
of intention to invoke the clause is
expected in a day or so.
The notice of intention will take
the form of an exchange of notes be
tween the United States and Britain.
France to Stand Pat.
France, however, it was understood,
will not build battleships bigger than
the 35,000-ton limit. This is in the
hope of keeping Germany and Italy
from building them. The consulta
tions in London are proceeding to
determine what upper limit, if any.
shall be set for the new super battle
ships.
The disclosure of naval plans came
coincidental with the start of House
debate on the $447,000,000 War De
partment appropriation bill, which
Representative Snyder, Democrat, of
Pennsylvania declared should be even
larger ‘‘in the light of present world
conditions.”
Representative Snyder, chairman of
the Appropriations Subcommittee,
which prepared the bill, said he based
his opinion on the statement of Gen.
Malin Craig, Army chief of staff, that
the Army needs equipment and a re
serve force which would cost $160,
000,000.
SMOKE SCREENS
USED BY REBELS
Insurgent Offensive Strikes
Into Untouched Section
of Catalonia.
BACKGROUND—
Insurgent forces of Gen. Francis
co Franco launched offensive to
reach Eastern Mediterranean sea
coast of Spain after recapture of
Teruel in February. Government
territory would be cut in two by
rebels reaching objective. Premier
Juan Negrin recently appealed to
France for men and arms against
Italian and German forces, which
are proving superior to Loyalists.
By the Assoc'ated Press.
MADRID, March 24.—The Spanish
insurgent army, for the first time with
smoke screens to cloak its advance,
struck out today for the Mediter
ranean on a new course into rich and
hitherto untouched Catalonia.
Shifing their attacks north of the
Ebro River, after a two-week clean-up
campaign on the south bank, the in
surgents fixed Lerida as their first
important objective.
Lerida is a key city for any drive to
carry the insurgents, moving north
and east from the Ebro, into the
northeastern corner of Spain. The
insurgents already have conquered
Northern and Western Spain. North
eastern Catalonia, a central portion
south of Madrid, and the southeastern
sector about Valencia remain in gov
ernment hands.
Using the tactics by which they
came to the south bank of the river,
the insurgents are driving first at
Lerida communications with columns
of mechanized troops and an aviation
force.
The smoke screen first made its ap
pearance yesterday and to it the gov
ernment credited defeat of its forces
and the surrender of two towns south
of Huedta.
“Against that deficiency, of which
the President was apprised,” Mr.
Snyder said, "He has given us a sup
plemental estimate of $16,880,000.
"I think we must assume that he
feels safe in not recommending more
at this time. I think we may also as
sume, in the light of more recent de
velopments, that the President will
unhesitatingly further supplement the
budget, should his touch with inter
national developments convince him
of the wisdom of such a course.”
Pacific Defenses Increased.
Allocations proposed in the bill in
dicated the Army, like the Navy, is
giving particular attention to key de
fenses in the Pacific area.
The bulk of a $6,748,559 allotment
for seacoast defenses was earmarked
to strengthen strategic points on the
Pacific Coast, in Hawaii and at the
Panama Canal.
Of $12,755,295 requested to meet a
"critical” deficiency in anti-aircraft
weapons and equipment, $3,783,540
was allotted specifically to the Pacific
area.

Decisive Victory Claimed.
HENDAYE, France, March 24.—The
insurgent command today claimed for
the insurgent army one of the most
decisive victories of the Spanish civil
war.
In the third day of the offensive
tightening a mesh around Catalonia
the central insurgent column pushed
forward from its new base at Pena,
while northern forces drove down from
Huesca and a southern unit advanced
along the Alcaniz-Caspe line.
The insurgent command said the
first two days of the new drive re
sulted in an advance of around 10
miles along a 15-mile front in the
northern sector, while the central vic
tory opened a path to the Zaragoea
Lerida-Barcelona highway.
Insurgent Generalissimo Franco
himself commanded crossing of the
Ebro yesterday, sending more than
10,000 Moorish and Navarrese troops
over a pontoon bridge into an area
which has been a government strong
hold.
i
Chamberlain Refuses Prior
Pledge of Arms Aid,
However.
* \
WARFARE MAY INVOLVE
BRITAIN, COMMONS TOLD
Premier Promises New Weapons
to Be Used for Protecting
France and Belgium.
BACKGROUND—
In face of persistent aggressions
by dictators Great Britain has
sought security in vastly increased
armaments: $7,500.000,000 building
program was announced a year
ago, but Prime Minister Neville
Chamberlain has revealed that ulti
mate cost will go far beyond sum
originally fixed. Acceleration of
arms building necessary to bring
Britain's forces to maximum in
shortest possible time.
By the Associated Press.
LONDON, March 24.—Prime Min
ister Chamberlain today refused to
give Czechoslovakia "a prior guaran
tee” of immediate armed help against
German aggression, but he warned
Adolf Hitler that a Middle European
war would drag in other powers.
“Where peace and war are con
cerned,” he told a packed, intent House
of Commons, ‘‘legal obligations are not
alone involved, and if war broke out it.
would be unlikely to be confined to
those who have assumed such obliga
tions.
"It would be impossible to say where
it would end and what governments
might become involved.
“This is especially true of two coun
tries like Britain and France » » *
devoted to the same ideals of demo
cratic liberty and determined to up
hold them.”
Speaks 57 Minutes.
Mr. Chamberlain spoke 57 minutes
in presenting his anxiously awaited
statement of foreign policy, the most
important such declaration by a Brit
ish prune minister since the World
War.
During most of his speech Mr.
Chamberlain leaned his left elbow on
the famous dispatch box used by
Disraeli, Gladstone and other prime
ministers before him.
He promised Britain would send the
new arms she was forging into battle
■to uphold the treaties she already has,
notably those for aid to France and
Belgium, and to protect her vital in
terests.
He urged solution of the problems
between Hitler's expanded Germany
and Czechoslovakia. He insisted there
still were prospects for success in his
bargaining with Italy's Premier Mus
solini.
Attlee Criticizes Quickly.
Voicing the views of the labor party
and others in the opposition that
Britain should take a firmer line
against Europe's dictators, Clement
R. Attlee, opposition leader followed
Mr. Chamberlain.
"Chamberlain has yielded to force.”
he declared. "He has left us and the
world in the 1914 situation.
"There is nothing so dangerous as
a policy of weakness, drift and un
certainty.
"The prime minister does not seem
to realize the full gravity of the
situation and the need for positive,
not mere negative, action.”
Attlee said he was shocked by Mr.
Chamberlain's "amazing credulity" in
accepting Italy's promises.
He made a flat pledge to fight if
France or Belgium were the victim of
unjustified attack when he said:
"Our existing commitments which
might lead to the use of our arms for
a purpose other than our own defense
are, first of all, defense of France and
Belgium against unprovoked aggres
sion.
"Britain also has treaty obligations
to Portugal, Iraq and Egypt."
The Prime Minister declared that
“Tsie CHAMBERLAIfCPage A^5T~
—-• - ■ —
JOHNNIES TRIUMPH
IN CHICAGO THRILLER
D. C. Team Defeats St. Stephen's
Mission by Scoring Two Goals
in Last Minute.
By the Associated Press.
CHICAGO. March 24.—St. John
College High of Washington. D. C.,
launched the second day's session of
the 15th national Catholic high school
basket ball tournament at the Loyola
University gymnasium today with a
41-37 triumph over St. Stephens Mis
sion of St. Stephens, Wyo.
The Johnnies, metropolitan cham
pions of The Washington Star’s tour
nament, did not clinch the game until
the last minute of play, when Center
Jimmy Giebel broke a 37-37 tie with
two field goals. Previously the West
erners had been kept in the running
by Yellow Otter, a 5-foot-2-inch court
man.
La Salle High of Cumberland. Md„
paced by Jimmy Stakem's 18 points,
defeated St. Augustine of Austin,
Minn., 37 to 26. after running up a
19-8 first half advantage.
Three stirring battles • marked the
opening of the five-day event last
night. Two favorites, including the
defending champion, Fenwick High of
Oak Park, 111., were plashed hard be
fore winning. Another, St. Bede of
Peru, the Illinois State champions, saw
its title chances and a one-game win
ning streak snapped at the same time.
Marquette University High of Mil
waukee came through with a last-half
rush to eliminate St. Bede, 34-28. St.
Xavier of Louisville, Ky.. nosed out
Central Catholic of Port Wayne, Ind.,
37-34, after trailing at one time, 28-12.
Fenwick scored five point* in the last
minute to turn back St. Thomas Mili
tary Academy of St. Paul, Minn., 31
28, after the lead in the last half had
changed hands 12 times.
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