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Evening star. [volume] (Washington, D.C.) 1854-1972, March 26, 1938, Image 1

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WEATHER.
<U. S. Weather Bureau Forecast.)
Fair tonight and tomorrow; not much
change in temperature; lowest tonight
about 42 degrees. Temperatures today—
Highest, 59, at 1 p.m.; lowest, 43, at 4
a.m.
Full report on page A-2. /
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
Closing N.Y. Markets—Sales—Page 16
Means Associated Press.
86th YEAR. No. 34,297.
WASHINGTON, D. C., SATURDAY, MARCH 26, 1938—THIRTY-FOUR PAGES.
51^. wSBufiSL^c. THEEE CENTS.
CHINESE TURNING
IE OF WARFARE
AGAINST JAPANESE
Reinforced Army Scores
Victories on Several
Battlefronts.
__________________ *
' CENTRAL CHINA LOSSES
OF NIPPONESE HEAVY
Invaders Also Are Stopped Cold
In Wuhu and Hongchow
Sectors.
BACKGROUND—
Japanese Armies which have
conquered North China and Yangtze
Valley for nearly three months have
tried to close gap between them by
• driving Chinese defenders from
corridors of which rail junctiori of
Suchow and Lunghai (east-west)
Railway are the core. More than
400,000 Chinese defenders have put
up unexpected resistance.
Bt the Associated. Press.
SHANGHAI. March 26 —The revig
orated Chinese Army, beaten back for
months, had turned today and was
winning victories on several fronts.
The widely-extended Japanese in
vaders were stopped cold in the Wuhu
and Hangchow sectors west and south
west of Shanghai, while in the bloody
Central China war zone they were
subjected to heavy losses.
Chinese guerrilla raids cut railway
lines between Shanghai and Nanking,
between Nanking and Pengpu and be
tween Shanghai and Hangchow.
. In Southeastern Shansi Province the
Chinese reported recapturing Lin
cheng, killing more than 1,000 Japa
nese and taking scores of prisoners.
Severe Fighting Around Lini.
Severe fighting continued around
* Lini, in Southern Shantung Province,
where the Japanese for weeks have
been struggling futilely to advance
southward and sever the Lunghai Rail
way.
Fears were expressed for the safety
of Americans at Lini, as a result of
Japanese charges that Chines troops
were using mission property and build
ings to repulse Japanese attacks.
The misison is an American Presby
terian institution. Americans be
lieved to be there included Miss Kath
erine Hand, Miss Margaret Winslett,
Dr. Benjamin Harding and Kenneth
, Wilson.
Japanese warplanes bombarded
Chinese in the outskirts of Lini, but
failed to break Chinese lines.
Air Battle Over Kwelteh.
A large-scale air battle over Kweiteh,
hi Central China, resulted in con
flicting claims.
Japanese asserted they destroyed
80 Chinese planes. They said their
own losses were “not known yet.”
Chinese, on the other hand, declared
they shot down six Japanese planes
and lost none themselves.
The Japanese, having failed to reach
the east-west Lunghai line in weeks
• of fighting, were reported planning
to cross Lake Weishan in boats in
an efTort to reach the railway.
f Chinese planes were said to have
raided Chiaotso and Fengkiu, bomb
ing Japanese trains and causing heavy
losses.
Eight-Hour Fight at Tingyuan.
In an eight-hour battle at Tingyuan,
south of Pengpu, Japanese said they
killed 320 Chinese and lost only 14
men themselves.
The explosion of a homemade b&mb
on Nanking road in Shanghai when
evening traffic was at its height caused
a panic among several thousand pe
destrians. Police reserves armed with
machine guns turned out to restore
order. There were no casualties.
Japanese and American authorities
reached an understanding designed
to end the controversy over whether
Japanese soldiers should pass through
the American defense sector in Shang
hai.
Under the agreement, a small num
ber of armed Japanese will be allowed
to accompany supplies for protection
when a column is entering territory
outside the defense sector.
French Cut Arms Supply.
HONG KONG, March 26
French Indo-China authorities are
refusing to permit movement of war
materials to China over the railway
into Yunnan Province.
STOCKS BATTERED
BY FRESH SELLING
^ Many Slump $1 to $4 a Share
More to New Low Levels
* in Closing Flurry.
By the Associated Press.
NEW YORK, March 26.—Heavy
selling again battered the stock mar
ket today and forced many shares to
new lows for the past few years
despite better buying support.
An early rally ran into increased
offerings as traders and investors
took advantage of the bulge to lighten
holdings. Steel, copper and other
groups heading the recovery were un
able to maintain their early gains
and numerous losses of $1 to about (4
supplanted advances.
Trading was fast during the brief
two-hour session, a contrast with the
usual quiet week-end trading in Wall
Street. The wide break in share
prices yesterday, carrying the market
to the lowest average levels in three
years, filled brokers’ board rooms with
large crowds for a Saturday.
United States Steel, American Tele
phone, Allied Chemical, Anaconda
Copper, Bethlehem Steel, Chrysler,
Montgomery Ward and other out
standing shares broke to the lowest
prioes of the 1937-8 bear market or
longer, when the rally failed to hold.
* Additional selling also hit bonds
Shard, particularly rail and other do
mestic corporate obligations. Major
commodities mostly were lower, too,
but the storm center of the selling
toas in security markets.
sr ' %
Landis Questioned Again
Fireman James L. Landis is shown in custody of Policeman
Ted Elliott of No. 9 precinct as he left headquarters to be
returned to his cell following further questioning in the fatal
beating of his wife. —Star Staff Photo.
I
DICTATORIAL RULE
Diet Passes Bill to Place
All Power Industry in
Government Hands.
By the Associated Press.
TOKIO. March 26.—Japan took n
long stride toward a dictatorial gov
ernment today as Parliament passed
a measure placing the nation's entire
electric power industry in the hands
of the government.
Passage culminated 36 hours of con
tinuous debate, which at times ex
ploded into acrimonious exchanges and
scuffling on the floor of the Diet (Par
liament).
Gen. Sen Sugiyama, war minister
and one of the bill's strongest pro
ponents, declared the concentration of
authority was necessary in case of
war.
Extra Day Granted.
The two houses of Parliament were
deadlocked over the electric power bill
Friday as adjournment neared, but
passage was facilitated by an extra
day’s grace which Emperor Hirohito
granted in an imperial rescript.
Under a government threat to dis
solve Parliament if the measure failed,
the Diet gave a joint committee of
the House of Peers and the House of
Representatives final decision on the
bill. The committee reached a com
promise, which the government ac
cepted.
The finance ministry at the same
time announced revision of its foreign
exchange regulations.
New Regulations.
Starting April 5 government per
mission wiH be necessary for the fol
lowing transactions:
Purchase or sale of foreign exchange
in Japan; sale of Japanese yen. the
unit of currency, in foreign countries;
remittance of cash to foreign coun
tries; export of securities coupons in
foreign currency; issuance of letters
of credit, and telegraphic transfers of
money.
A finance ministry statement de
clared the purpose of the regulation
was “to stabilize the market by con
trolling exchange transactions.”
Passage of the electric power bill
came after the imperial rescript, waved
aloft majestically, had quieted political
turmoil in the Diet.
Accord Beached.
KAUNAS, Lithuania, March 26 (/P).—
Lithuanian and Polish delegates meet
ing at Augustow, Poland, have reached
an agreement on postal, highway and
aerial communications. Railway com
munications were being discussed to
day.
ROOSEVELT GETS
RAILROAD REPOII1
Proposals to Speed New
Set-ups Believed Included
in Program.
Br the Associated Press.
WARM SPRINGS, Ga.. March 26.
—President Roosevelt studied the re
port of his Committee on Emergency
Railroad Legislation today, but with
held details on its recommendations.
The report was prepared by Chair
man Walter M. W. Splawn and Joseph
B. Eastman and Charles D. Mahaffie
of the Interstate Commerce Commis
sion and sent here by airmail. The
President said it would be made pub
lic next week in Washington.
When he created the committee 10
days ago he said he wanted "complete,
definite and factual" proposals that
could be taken up for immediate ac
tion by Congress. At that time he
described the situation as "critical.”
Observers regarded it as virtually
certain that the report proposes some
method of speeding reorganizations of
the financially distressed carriers in
View of Mr. Splawn's statement that
more than 30 per cent of railroad
| mileage now is being operated under
! court protection and receiverships,
; with more threatened by bankruptcy.
Mr. Splawn also had given a hint
of what the report might say on con
solidations by disclosing that all
participants in the White House con
ference that led to appointment of the
three-man committee agreed that
“major” railroad economies could be
accomplished only by compulsory
mergers.
The railroad report may be one of
several received at the temporary
White House for consideration during
the President’s 10-day stay here.
. The President is looking for results
of a study of the world phosphate
situation so he can write a message
on it before he starts back to Wash
ington. A report on bank holding
company regulation also may be re
ceived in time for preparation of an
other message.
The President is devoting much of
his unofficial time here to infantile
paralysis foundation affairs. Tomor
row he will dedicate a little white
chapel,. built since he was here a
year ago, for use by the 116 patients
and foundation guests.
Van Dyke Seriously 111.
BALTIMORE. March 26 (JP).—Johns
Hopkins Hospital said today Warren
V%n Dyke, Pennsylvania secretary of
highways, was still seriously ill. of a
heart condition.
Summary of Today's Star
Page. Page.
Amusements B-16 Radio .B-8
Church News, Real Estate,
A-9-10-11-12 B 1 to 6
Comics -.B-14-15 Short Story.. B-S
Editorials ... A-8 Society_A-13
Finance -A-16 Sports ...A-14-15
Garden Pg,. _ B-7 Women’s
Lost & Found B-8 Features ..A-13
Obituary_A-6
FOREIGN.
Japan takes long step toward dicta
torial rule.' Page A-l
Chinese turning tide of warfare against
Japanese. Page A-l
French workers march to back strike
demands. Page A-4
Mexico planning to float loan to pay
for oil firms. Page A-l
Burning of 200 Chinese towns charged
to Japanese. Page A-4
Japan assures U. S. Alaskan salmon
Ashing will end. Page A-4
Rearming studied over week end by
Chamberlain. Page A-4
Catholics in Austria ordered to sup
port Hitler. Page A-7
NATIONAL.
Reorganization bill foes concede pas
sage by Senate. Page A-l
Hull plan to aid political refugees
greeted in Europe. Page A-3
WASHINGTON AND VICINITY.
Crowds throng Tidal Basin to see
cherry blossoms. Page A-l
Mrs. Blanche Landis dies of injuries
received in beating. Page A-l
Girl. 7, disappears mysteriously at
Elkton, Va. Page A-l
4
Medical Society "welcomes” probe of
G. H. A. controversy. Page A-18
Projecting windows hit by Fine Arts
Commission. Page A-18
Laundry wage session Tuesday to seek
decisions. Page A-18
EDITORIAL AND COMMENT.
Editorials. ' Page A-8
This and That. Page A-8
Stars. Men and Atoms. Page A-8
Answers to Questions. Page A-8
The Capital Parade. Page A-9
David Lawrence. Page A-9
Mark Sullivan. Page A-9
Jay Franklin. Page A-9
I^muel F. Parton. Page A-9
SPORTS.
Wasdell’s hitting may land outfield
berth for him. Page. A-14
Battleship’s victory ironical joke on
British. Page A-14
Rickey silent on Landis’ farm
edict. Page a-14
Race handicappers lucky to bat .300;
bettors, .200. Page A-15
Cunningham-Fenske duel features
Chicago meet. Page A-15
D. C. ringmen after eight titles to
night. Page A-15
MISCELLANY.
Shipping News Page A-9
Vital Statistics. Page A-9
City News in Brief. Page A-9
Nature’s Children. Page B-8
Bedtime Story. Page B-14
Letter-out. Page B-14
Cross-Word Puszle. Page B-14
Contract Bridge. Page B-15
k
BEATING INJURIES
RESULT IN DEATH
OF MRS. LANDIS
Blood Given by Fireman in
Vain—Husband Accused
Before She Dies.
SUSPECT QUIZZED MORE;
TO BE HELD FOR CORONER
Police Jfot to Place Charge of
Murder—Victim Expires
at 4:30 A.M. Today.
Mrs. Blanche Gertrude Landis, 22,
died in Casualty Hospital at 4:30 a.m.
today after implicating her estranged
husband, James L. Landis, 23, a
"rookie” fireman, in the furious beat
ing she suffered on a lonely stretch of
Twenty-fourth street N.E. early Thurs
day.
A transfusion for which firemen
volunteered blood late yesterday failed
to bolster the ebbing strength of the
attractive young woman, whose skull
had been fractured with stones and an
improvised sandbag. She also received
deep cuts about the face and body, and,
except for brief intervals, remained in
a coma until the time of her death.
Landis, who insists his wife was
hurt in a fall from his automobile
during an early morning ride, is
being held for a coroner's inquest
Tuesday. The prisoner was returned
to headquarters today for furtner
questioning.
Booked for Assault.
The fireman had not been told of
his wife's death before he was brought
to headquarters. Meanwhile. Mrs.
Landis' body had been removed to
the morgue for an autopsy.
Before his wife died, the rookie fire
man was to have been arraigned in
Police Court this morning on a charge
of assault with intent to kill.
He was booked on that charge yes
terday afternoon when his attorneys,
Jean M. Boardman and T. Edward
O'Connell, sought his release on a
habeas corpus writ. The attorneys
argued that Landis was held illegally
since no charge was lodged against him.
Justice Jennings Bailey informed
Assistant United States Attorney J. J.
Wilson that the writ would be granted
unless some charge was brought. De
tectives then booked Landis for assault.
Attorney Ordered Out.
Defense Attorney Boardman walked
Into the Homicide squad room at
headquarters this morning when Lan
dis was led in by detectives. He was
ordered from the room, and as he
left called to Landis. “Don't say any
thing and don’t sign anything!”
Mr. Boardman then held to the
knob of the locked door from the out
side and tried to listen to what went
on within. He told reporters “they're
giving Landis the third degree in an
effort to make him sign a confession!"
This was denied by Capt. Ira Keck,
acting chief of detectives. He said
Landis was questioned briefly and re
turned to No. 9 precinct after he re
fused to enlarge on his previous state
ment. The prisoner remained in the
squadroom for about half an hour.
Attorney Protests.
Reporters outside the squadroom
while Landis was being questioned said
they failed to hear anything which
would indicate the suspect was getting
the “third degree."
Mr. Boardman later called on Po
lice Chief Ernest W. Brown to protest
that his client is being held “illegally”
because no formal charge has been
placed against him. The attorney said
he expected to make a complaint in
writing to Maj. Brown later today.
Several firemen had volunteered
blood at the hospital yesterday, and
that of Sergt. M. C. Mason of No. 23
Engine Co. was selected for a transfu
sion.
Coroner A. Magruder MacDonald
set the time for the inquest follow
ing a conference today With detec
tives. Police officials said Landis was
held for the coroner and not booked
on a murder charge.
Wife Accuses Him.
In a death-bed statement, police
quote Mrs. Landis as having said:
"Bring Jimmie in here so he can see
what he's done to me!”
The prisoner was brought to head
quarters this morning in an effort to
have him enlarge on his previous
statement, in view of the death of
his wife.
Detective Sergt. Robert Barrett re
mained within call of the bedside of
the dying woman all last night in
the hope she might recover con
sciousness long enough to enlarge her
previous statement. She had no
lucid moments, however.
Landis has admitted slipping un
observed from his station at the fire
boat early Thursday, taking his wife
for a ride, and returning to bed in
the station, still unobserved, police
said.
The husband blew his automobile
horn outside the home where his wife
roomed, at 2014 Monroe street N.E.,
and she came out to his car and got
in. Landis was quoted by police as
saying his wife jumped from his car
on Twenty-fourth near Shepherd street
N.E., striking her head on a rear fen
der.
Sandbag Unexplained.
He said he stopped the car, and went
back to try to help the injured woman,
but became frightened and drove back
to the fire station, where he was sup
posed to be on duty.
The woman was found unconscious
by a milkman about an hour later.
Beside her lay two blood-stained stones
and a sandbag improvised from a
man’s sock, which had broken in two
pieces.
Landis was said to have told police
he made the sandbag as "protection”
against hold-up men. He could not
explain its presence on the street
Samples of the sand in the bag match
the type of sand found in a box at
the fire station, police say. Other com
parisons are being made between Mrs.
Landis' blood and that on the stones
and sandbag,
YOU SOUTHERN
FEUDALISTS^
atlastTvei
GOT SOMETHING 1
To MAKE. ME. ,
LAUGH] k
Cherry Blossoms at Height;
Fair Weather Due Tomorrow
Display Expected to Be Finest in History
as Thousands of Visitors Throng
Tidal Basin.
With the Japanese cherry blossoms
at the height of their beauty and a
forecast of fair weather tonight and
tomorrow, thousands of Washing
tonians and visitors from many States
today began the annual trek to the
Tidal Basin and West Potomac Park,
expected to reach its climax tomorrow, j
Some of the petals were falling this j
morning as a stiff breeze ruffled the j
waters of the Tidal Basin and plucked ;
at the blossoms. The winds, fresh
from the northwest, were expected to
die down late tonight, however, giving
place to fair, calm weather tomorrow.
Not much change in temperature was
expected, with a minimum of about
42 degrees tonight.
TO FLOAT OIL LOAN
$22,222,222 Would Be
Sought to Help in Paying
for Seized Properties.
BACKGROUND—
Mexico week ago seized 14 Amer
ican and 3 British-ouned oil
companies as culmination of long
labor war in which 18.000 Mexican
workers sought pay boosts and im
proved conditions. Mexico, facing
problem of marketing oil output
abroad, is expected to receive offer
from Japanese to purchase 500,00d
barrels yearly.
Br (he Associated Press.
MEXICO CITY. March 26—The
Mexican government undertook today
to float a domestic bond issue for 100,
000,000 pesos ($22,222,222 at the pres
ent rate of exchange of 4.50 pesos to
the dollar) to help pay for expro
priated foreign oil properties.
The decision to float the loan was
made after a meeting of 24 State Gov
ernors with President Lazaro Cardenas
and Minister of Finance Eduardo
Suarez.
The Governors pledged 5 per cent
of their yearly budgets to assist the
Federal government with its petroleum
indebtedness, but the domestic loan
was approved as the best means of
paying for the oil properties, valued
at $450,000,000.
The bonds will be issued sometime
next week and will pay no interest
for the next 10 years. At the end
of that period a “moderate interest’’
will be fixed on the bonds, the govern
ment announced.
The Mexican government also tried
to improve Its financial position by
billing two of the companies whose
properties were expropriated for $2,
000,000 in back taxes.
It was claimed the Aguila (Royal
Dutch Shell) and Huasteca—two of
the largest foreign oil companies op
erating in Mexico before the expro
priation—owed this amount in taxes.
Aguila was charged with failing to'
pay $1,400,000 “absentee’’ taxes on
funds sent out of the country in 1934
and 1935, and Huasteca was billed for
$600,000 allegedly due in “absentee"
and income taxes.
The companies declared the gov
ernment's move was an effort* to re
duce indemnification for properties
seized.
Meanwhile, Vicente Cortes Herrera,
administrator of the expropriated oil
industry, said he had not yet received
a Japanese offer to purchase Mexican
oil.
Tackle Fells Bobbery Suspect.
BALTIMORE, March 26 (^.—Stan
ley Trott, 22. was held for the grand
jury today under $2,500 bail on a
charge of robbing the James Lacey
plant of $800 in pay roll envelopes.
Trott was captured by Albert H. Rief
schneider, plant superintendent, who
brought him down with a flying tackle.
Bites for Bishop Cook.
WILMINGTON, Del, March 26 WP).
—Funeral services for the Right Rev.
Phillip Cook, bishop of the Protestant
Episcopal Diocese of Delaware, will be
held here in the Cathedral of St. John
Monday at 2 p.m. Burial will be in St.
Anne’s Cemetery, Middletown, Del.
A
Despite the rain and wind, however,
the fragile blossoms have not been
injured materially and tomorrow's
display is expected to be perhaps the
finest in history, with hundreds of
new trees in bloom.
Workmen of the National Capital
Parks today were cleaning out the
small Reflecting Pool near the Lincoln
Memorial and affixing nozzles to the
spraying system. It was planned to
turn on the rainbow fountain at the
pool tomorrow for the benefit of the
thousands of visitors expected here.
Both blossoms and park will be in
the ‘'pink of condition" for the week
end visitors, it was announced by C.
< See 'BLOSSOMS. Page~A-~7 )

Mildred Moyer, 7, Is Hunted
by Town Police and
Citizens.
Special Dispatch to The Star.
ELKTON, Va.. March 26.—Town
police and local citizens were conduct
ing a vigorous search today for Mil
dred Moyer. 7-year-old school girl who
disappeared mysteriously on her way
home from school yesterday afternoon.
Town Chief of Police C. W. Short
said kidnaping was not suspected as
the child's family was not wealthy.
The girl's father, Arthur Moyer, was
last employed as a truck driver, ac
cording to the officer. He left here
Thursday to visit relatives in Luray
and was not aware of his daughter’s
disappearance, police said. The father :
was expected home today, however.
Mildred's mother asked police help
when the little girl did not return
from school. A check showed a class- ,
mate had walked part of the wav
home with her. A block from the
Moyer home the classmate left Mil- ,
dred to go to her own home. Police ,
could find none who had seen the
child since.
Ekton's two-man police force, aided
by a large number of local residents
last night canvassed the homes of all
friends of Mildred here and searched
all vacant houses in a futile effort to
find a trace of the girl. Chief Short
said there are no nearby woods in
which she might have become lost.
There are several other children in
the Moyer family, Mr. Short said.
16 Lost in Gale.
TROMSOE, Norway. March 26 (/P).
—Sixteen persons were known to be
dead and many others were missing
today after a gale off Northern Nor
way sank several fishing boats.
A Norwegian government fishery pro
tection vessel today rescued 21 men
from the sealing ship Isfjell, which
had drifted in pack ice for five days.
The Isfjell lost her propeller Monday
in a hurricane
FOES GIVE IIP HOPE
Concede Votes Are Lacking
to Order Recommittal
to Committee.
By the Associated Press.
Defeated consistently on proposed
amendments, some Senate foes of the
administration's Government reorgan
ization bill conceded today they lacked
the votes to kill the measure.
A vote on a motion to recommit the
bill to committee, a step which would
effectively pigeonhole it, has been set
for 3 p.m. Monday. If the motion
fails, there will be a vote on passage
of the measure at 5 p.m.
Some opponents of the measure said
privately that unless there was a shift
of sentiment by Monday, the recom
mittal motion would fail. Senators
Barkley of Kentucky, the Democratic
leader, and Byrnes. Democrat, of South
Carolina, author of the bill, confidently
predicted its passage.
Clark Is “Hopeful.”
Senator Clark, Democrat, of Mis
souri. an opponent, asserted, however,
that he was “very hopeful'’ the bill
would be shelved.
Two portions of the bill—creation of
a welfare department and authoriza
tion for employment of six presidential
assistants—already have been approved
in the House.
Mr. Byrnes said it was possible that
the Senate bill might be substituted
for one of these measures and sent di
rectly to a conference between Senate
and House of Representatives. This
would expedite final action.
Enactment of the broad reorganiza
tion program would give the adminis
tration its fourth major law of the
session. Already, the farm, housing
and emergency relief bills have won
legislative approval.
Tax Bill Buffeted.
Another of President Roosevelt’s
recommendations—regional planning
—has slight chance of enactment. A
House committee only recently began
consideration of it.
Messages from President Roosevelt
still are expected on proposals to put
Government controls on the bank
holding company structure and an
anti-monopoly program. He also is
expected to send a message on the
world phosphate situation.
Nevertheless, congressional leaders
still are hopeful that the session will
end between May 15 and June 1.
The “White House suggestions, they
said, can well be considered in the
next session. The election-year ad
journment drive, they asserted, will
make it almost impossible to take
them up in the current session.
HIGHWAY DEATHS DROP
Traffic Fatalities in Virginia
Decline by 1.5 Per Cent.
RICHMOND. Va., March 26 r/F>).—
Virginia's highway deaths dropped
from 796 in 1936 to 786 in 1937, repre
senting a 1.5 per cent decrease, while
traffic fatalities in the United States
increased 4 per cent.
D. M. Baldwin, State s&fety engineer
for the Division of Motor Vehicles, said
the Virginia decrease was better than
the percentage indicated in view of
the “substantial gains in motor vehicle
registrations and gasoline consumption
last year.”
Convict Reads 650-Word Blast
At Society, Then Goes to Chair
By th» Associated Press.
COLUMBUS, Ohio, March 26.—A
convict who admittedly “never had the
coinage to live decently” left behind
today a 650-word indictment of so
ciety and the penal system which sent
him to the electric chair.
Everett Jones of Springfield, Ohio,
amazed a score of witnesses in Ohio.
Penitentiary's deathhouse last night
whenyin a subdued but firm voice, he
read for five minutes from a prepared
statement.
Then he calmly received the su
preme penalty in the electric chair for
shooting to death Robert Lindsey,
poolroom proprietor, in a hold-up last
July 4.
“Ohio, I am a product of your pris
ons,” read Jones, who spent 19 of his
33 years in penal and correctional In
stitutions.
“Who can blame me?” he asked.
“The very fact that I hated these
things shows I was fundamentally de
cent. The robberies I committed out
4
side were moral protests. I felt that
society had treated me rottenly.
“I saw around me a lot of lucky,
indifferent people, outside of prison
only by the laws of chance.”
“If only I had had a single under
standing friend when I was young,” he
exclaimed. “If my mother hadn’t died,
if my father had been a pal, with just
a minimum chance I could have made
a comfortable place for myself in the
world.”
Jones expressed belief that in the
near future “a more humane method
of penology will be evolved.”
Walter Barnes, 19, who assisted
Jones in the hold-up and received a
life sentence for second-degree mur
der, informed the State Clemency
Board a week ago he killed the pool
room operator. But the board refused
to believe him.
Jones, who originally accepted re
sponsibility for the actual killing, also
placed the blame on Barnes within the
last week.
4
Easing Taxes on Personal
Firms Might Turn Cash
to Stockholders.
SHIFTING OF LEVIES
POSSIBLE, GEORGE SAYS
Gift and Estate Assessments Are
Removed From House Bill
by Committee.
BACKGROUND—
Business has been virtually unan
imous for past two years in its con
demnation of administration theory
of taxing undistributed corporate
profits and treating all capital gains
as ordinary income. In response,
House this winter approved modi
fications of both, but retained prin
ciple in each case. Senate Finance
Committee has voted out undis
tributed ' profits levy and further
modified capital gains treatment.
BULLETIN.
The Senate Finance Committee
today rejected the amendment of
Senator Davis of Pennsylvania to
allow increased deductions for
charitable institutions in individual
and corporate income tax returns.
The proposal was designed to raise
the allowable charitable deduction
by individuals from 15 to 20 per
cent of net income and by corpora
tions from 5 to 10 per cent.
By the Associated Press.
TTie Senate Finance Committee
studied today the possibility of “un
freezing" investment capital by easing
taxes which, members said, were pre
venting dissolution of many personal
holding companies.
Senator George, Democrat, of Geor
gia, asserted that "hundreds of mil
lions of dollars now' are frozen" in
personal holding companies.
At present, he explained, personal
holding companies cannot feasibly
be liquidated because taxes eat up
most of the cash which might be dis
tributed to stockholders.
“They are now paying very high
rates,” he continued. "We are trying
to find some fair basis for dissolution
under which the taxes would be shifted
from the company to the shareholders
themselves.”
Senator George said committee
members sought to curtail tha taxes
on personal holding companies, en
courage the distribution of their as
sets to stockholders and then tax
stockholders at the regular income tax
rates on their share of the funds re
ceived.
Would Put Money to Work.
“The big idea is to unfreeze this
capital and put it to work again."
After a broad investigation into
“tax evasion and avoidance” a joint
Congressional committee last summer
recommended higher rates on personal
holding companies. These rates sub
sequently were enacted.
Senator King, Democrat, of Utah
said the Finance Comimttee should
give "careful consideration" to modi
fying income tax rates on personal
holding companies. The rates now
range up to about 70 per cent.
Another Finance Committee mem
ber, Senator Walsh, Democrat, of Mas
sachusetts said some arrangement
should be made to permit the liquida
tion of personal holding companies
without restrictive tax payments. "It
ought to be done and it will be done,"
he said.
The committee already has stricken
out the undistributed profits tax and
overhauled the capital gains levy in
the House-approved revenue bill.
Report Next Week Seen.
Chairman Harrison. Democrat, of
Mississippi said he hoped to report the
tax revision bill early next week, but
Senator Barkley of Kentucky, a com
mittee member and the Democratic
leader, said the bill could not come up
for Senate consideration before the
latter part of the week.
The committee yesterday performed
another major operation on the
House-approved bill by removing its
gift and estate tax provisions.
Chairman Harrison said members
were swayed by arguments of State
officials that the House provisions
would lead the Federal Government
farther into State fields of taxation.
Rejecting the House levies, the
committee wrote into the bill those in
existing law.
The House bill would provide a flat
$40,000 exemption for both estate and
gift taxes, reduce a separate annual
exemption for gift taxes from $5,000
to $3,000, and reduce credits allowed
for State gift and estate tax payments
from about 25 per cent of the Federal
tax to 16.5 per cent.
The Senate committee recommended
retention of the present separate
$40,000 exemptions for both the estate
and gift levies, or a total of $80,000.
and eliminated the other changes
voted by the House.
The Senate committee approved an
amendment by Senator Brown, Demo
crat, of Michigan, to exempt banks
in liquidation from corporation in
come taxes.
Also approved was an amendment
by Senator Clark, Democrat, of Mis
souri. providing that corporations
which had started to liquidate sub
sidiaries under 1935 tax regulations
would not have to comply with later
regulations enacted in 1936.
Italy’s Conquest Recognized.
SOFIA, Bulgaria, March 26 (JP).—
The Bulgarian government today ex
tended de facto recognition of Italy’s
conquest of Ethiopia when King
Boris III accepted a new Italian Min
ister with credentials from the King
of Italy and Emperor of Ethiopia.
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