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

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<U. 8. Weather Bureau Forecast.)
Fair and continued cool today; tomor
row fair and warmer in afternoon; mod
erate to fresh northwest winds today.
Temperatures yesterday—Highest, 54, at
2 p.m.; lowest, 40. at 10 p m.
Full report on Page A-2.
Full Associated Press
News and Wirephotos
Sunday Morning and
Every Afternoon.
V- 1 79^ X\-, •>_( 019 Entered »s second class matter
U O. post office, Washlnaton, D, C.
WASHINGTON, I). C., APRIL 10, 1938.—122 PAGES.
■ ■ ■' - A __
Borah Amendment
Expected to Meet
LaFolIette Proposal to
Broaden Income Base
Is Defeated.
Seriate Finance Committee,
spurred by Chairman Harrison,
rerdte tax bill designed to encourage
business revival by eliminating or
modifying onerous levies. Principal
reforms were elimination of un
distributed profits tax and modifi
cation of capital gains tax, both
of which already had been modi
fied by House.
Surviving a successful revolt by
proponents of an amendment to tax
income from future Federal securities,
the Revenue Act of 1938. carrying
major modifications of the present tax
laws, was passed by the Senate late
No record vote was taken on the
bill as adoption came suddenly in the
wake of a surprising administration
defeat by a single vote margin on
• the amendment of Senator Borah. Re
publican, of Idaho to permit taxation j
of income from future issues of Fed
eral securities. The vote was 34 to 33.
Adopted previously in 1935 and
later thrown out in conference, the
Borah amendment of yesterday is gen
erally expected to meet a similar fate
, in spite of frequent protestations of
approval of the-theory of ending is
suance of tax-exempt securities.
Party Lines Swept Aside.
Party lines were swept completely
Bside as the amendment was approved
yesterday after bitter debate had
sprung up unexpectedly while
harassed majority leaders were at
tempting to gain passage of the bill
and recess the session. Twenty-five
Democrats combined with six Re
publicans. one Farmer-Laborite, one
Progressive and one Independent to
i make the 34 votes while three Re
publicans joined 30 Democrats in vot
ing against the proposal.
Immediately afterward, Senator
Clark, Democrat, of Missouri offered
a more sweeping amendment which j
would make taxable the income from |
securities of local as well as Federal !
Government, but this was rejected
on a count of 41 to 23.
A recent Treasury estimate placed
the amount of wholly tax-exempt Fed
eral securities outstanding at approxi
mately $40,000,000,000. while approxi- !
mately $30,000,000,000 more grants ex
emption from the normal tax. but not
from surtaxes. These would not be
affected by the Borah proposal, con
fined to future issues.
Harrison Promises Aid.
In attempting to avert intrusion of
the question in the revenue bill,
Finance Committee Chairman Harri
son promised Senator Borah he would
co-operate in having the committee
begin an immediate study of the sub
ject, but the Idahoan pointed out
that the Senate has no authority to
Initiate tax legislation and that the
only prospect of action on the question
was by amendment to the pending bill.
Majority Leader Barkley also pleaded
for withdrawal of the Issue, complain
ing bitterly that it was being “slung
into'1 the tail-end of debate without I
adequate consideration.
Until the setback on this amend- j
ment occurred, the committee had sue- I
reeded in surmounting all proposals |
It considered objectionable to the pend- j
ing measure, with the closest previous i
vote coming on the amendment of
Senator La Follette, Progressive, of
Wisconsin, to initiate surtaxes at the
$3,000 net income level rather than
$4,000 as at present and to increase ‘
the rates through the middle income '
Despite a vigorous appeal in which
he called on the Congress to take
the courageous way to avoid the ulti
mate necessity of uncontrolled infla
tion, Senator La Follette was beaten
on this proposal by 44 to 33. Imme
diately thereafter, his plan for broad
ening the income tax base by de
creasing exemptions was rejected with
out a record vote.
la Follette Warns Colleagues.
Stressing the increasing need of
Government expenditures and the re
sultant mounting deficit, the Wiscon
sin Senator warned his colleague that
the country eventually must choose,
as did those of Europe in the post
war era. between liquidation of public
debt by inflation or by heavy taxation.
For years past, he charged, successive
Congresses have refused to take the
courageous way of imposing taxes suf
ficient to put the Nation on a pay-as
you-go basis. If the ultimate choice
Is inflation, he warned further, it will
be those of low income who will
•ufler most.
Senators Borah and Norris, inde
pendent, of Nebraska, led the oppo
sition to the La Follette proposals,
both stressing the injustice of in
creasing the tax burden of the low
Income groups.
Senator Glass, Democrat, of Vir
ginia, took occasion to support the
amendments and to add that he would
favor imposing some tax, however
small, on every person enjoying the
protection of the Government.
The surtax amendment was esti
mated to contain potential revenue of
(213.900,000. while the broadened base
plan was said to be worth $60,400,000
in added revenue.
Pope Proposal Defeated.
First hurdle of the day was the
amendment of Senator Pope. Dem
ocrat, of Idaho, to insert a schedule
of tariff equalization fees in the bill.
Comparable to processing taxes, the
• See TAXES, Page A^57)
a k
President’s Foes to Turn Guns
On ‘Pump-Priming’ Program
Many of Democratic Members of Both
Houses Who Opposed Reorganization
W ill F igh t Spending.
Continued business recession has
led President Roosevelt to consider
increased Government "pump
priming" expenditures, he disclosed
last week. Convinced that his Jan
uary estimate of for
relief for next fiscal year will not
meet demands, he is considering
proposals to increase that amount
to $1,500.000.000 and to start a new
$1.500.000.000 program of public
works loans to States and cities.
• President Roosevelt's projected new
spending program—"pump-priming”—
will be vigorously resisted in Congress.
It will be attacked on two main
grounds. First, that it will destroy
confidence and injure business rather
than aid it. Second, that it will !
plunge the Government still further
into debt, and bring on either in
flation or repudiation.
Many of the same Democratic mem
bers of the House and Senate who
opposed the President's reorganization
bill—and brought about its ultimate
defeat Friday—will fight the pump
priming legislation, which, it has
been intimated, is coming out of
the White House. Many of the same
Democrats who opposed the Presi- i
dent's theories of taxation—and 1
brought about their defeat in the
new revenue bill which has just passed
the Senate—will attack vigorously the
newr spending program.
Among the opponents of the plan
to spend $4,000,000,000 or *4.500,000,
000 will be Senators Byrd of Virginia,
Bailey of North Carolina, Vandenberg
of Michigan, Borah of Idaho and
Davis of Pennsylvania.
Sees Tough Job.
Senator Byrd's was almost a lone
voice a year ago against the Presi
dent's reorganization bill. He said
yesterday that if the public can be
fully informed about the folly of
spending as a means of bringing
recovery—as it was about the re
organization bill—the proposed pro
gram could be halted.
He admitted this would be a tough
job. Bills to spend the public money
have been the easiest to get through
' I have a great respect for public
opinion,” said Senator Byrd. "If the
people can come to understand that
if this suggested program Of further
Government stientiing goes through,
the Treasury will face the largest
deficit next year in its recent history
and that these constantly recurring
deficits will bring ruin to the people.
(See SPENDING, Page A-3,f~
Long Stumping Tour Is
Forecast After Defeat
of Reorganization.
Alter provoking an intense fight
in Congress, President Roosevelt's
reorganization bill, designed to
shake up Government agencies, be
came sidetracked, at least tempo
rarily, when the House voted to
recommit. The same body earlier
had approved the measure in sec
By ’hr Associated Press.
An historic upsurge of opposition
appeared last night to have forced
Roosevelt administration leaders to
abandon hope of regaining control of
the Seventy-Fifth Congress.
Instead, they looked for a fairly
quick adjournment, to be followed by
a tremendous. Nation-wide struggle
between the President and his critics
in the 1938 political campaigns. It
was considered certain the President
would carry the fight for his policies
to the voters, perhaps by a long stump
ing tour.
Mr. Roosevelt's first official reac
tion to the tremendous blow the House
dealt his program by defeat of the
reorganization bill Friday night was a
letter declaring there should be no
“personal recrimination" over the i
bitter fight.
Outgoing Regime Authorizes
Demonstration Today
by Leftists.
Second People's Front govern
ment of Leon Blum fell Friday as
result of refusal of Senate for sec
ond time to vote him dictatorial
powers over French, finance. Blum's
entire second regime, which lasted
a month, was beset by difficult
problems of finance, rearmament,
external politics and internal dis- \
By ihf Associated Press.
PARIS, April 10 <Sunday).—Pre
mier-designate Edouard Daladier. who
warned that a "strong government"
would begin to rule France by noon,
today faced increasing threats of dis
order in Parts.
A Leftist demonstration of the
"Red Ring" of the capital's Socialist
and Communist districts was au
thorized by the outgoing government
late last night despite his opposition.
Leaders of the "Red Ring" of workers
have ordered a march on Paris boule
vards under the red flag.
Marx Dormoy, minister of the in
terior in Leon Blum's defunct govern
ment, used the power which is his
until a new government is formed to
overrule a police ban on the demon
stration. M. Dormoy rescinded the
police order in open defiance of M. \
Daladier's expressed disapproval.
Letter Sent to Rayburn.
He sent the following letter to Ma- |
jority Leader Sam Rayburn, one of
the leaders of the unsuccessful strug- i
gle to put the reorganization bill
‘ Dear Sam:
“Thanks for the fine fight. Will you
also thank the Speaker and the others.
“The reorganization bill is intended
to simplify and improve the public
service. With this single objective in
view. I have given it my earnest ap
“The question presented is solely one
of policy. Therefore, the legislative I
developments of yesterday offer no
occasion for personal recrimination
and there should be none.”
It was believed by some observers
that the last paragraph was an effort
to avert any widening of the Demo
cratic party breach. It was recalled
that the vote of 204 to 196. by which
the House sent the reorganization bill
to the limbo of a committee, found
many ordinarily “faithful” New Deal
ers in the opposition ranks.
Revival Attempt Indicated.
Observers noted that Mr. Roosevelt
spoke of the reorganization bill in the
present tense, indicating perhaps an
intention to try and revive it at a later
date. There was no sign in Congress,
however, of any move to bring it back
for debate this year.
Moreover, there was a widespread
opinion that chances of 1938 action on
the wage-hour bill, a key item on the
Roosevelt program, had virtually
Chairman Ramspeck, Democrat, of
Georgia, of the House Labor Sub
committee, which revised' the wage
house bill after it was recommitted by
the House last December, said the re
organization defeat- would “militate
against the wage-hour bill at this
Mr. Ramspeck added that the House
definitely indicated it did not want to
consider controversal matters on the
eve of the membership’s campaigns
for re-election.
However, he said the reorganization
and wage-hour issues w ere not parallel,
and that there was much organized
support for the latter measure.
Senator Hatch. Democrat, of New
Mexico, who voted for the reorgani
zation bill, said the effects of its de
feat had been “greatly magnified.-' but
added that much of the Roosevelt
program w'ould be slowed up.
Leftists Marshal Forces.
Communist and Socialist leaders,
through the press, urged their Pans
followers, hundreds of thousands
strong, to march from Bastille Square
to La Nation Square.
Troops were held ready in their gar
risons to aid police and mobile guards
to enforce order if necessary.
Socialist leaders declared M. Dala
dier. France's Radical-Socialist "man
of the hour,” had told them:
"This is no time for demonstrations.
The country wants quiet and order
and I'm going to give them quiet and
Socialist Chiefs’ Parley.
The National Council of Socialists
was in session to determine whether
the party would reject participation
in M. Daladier's government. M. Dala
dier made it plain he was ready to take
the new cabinet to the Elysee Palace
at noon today with or without Socialist
Socialist leaders, who held a long
conference with the Premier-designate,
said M. Daladier planned to demand
full decree powers in the economic and
financial field for six months.
He was said to be prepared to meet
the financial crisis with an internal
loan and loans from abroad, if neces
Non-Intervention Maintained. j
One Socialist stormed angrily out of
the conference when he learned M.
Daladier had refused flatly to drop
the non-intervention agreement and
aid the Spanish government in the
civil war.
M. Daladier was said to have de
clared he would tolerate no further
occupation of factories by strikers
and would see that they were evacu
ated "humanely” from plants. M.
Daladier's problems included getting
60,000 strikers ba^k to work before
their movement spreads.
The Senate’s flat refusal to give M.
Blum decree powers wrecked two So
cialist governments, but observers
said they believed that if M. Dala
dier's cabinet should be as strong
as he has indicated it would be. he
would havt no trouble in getting
such powers for himself.
Fuehrer Closes Plebiscite
Campaign in Speech
at Vienna.
Millions of Germans Ballot Today
on Anschluss and Elect
New Reichstag.
Reichsfuehrer Hitler on March
12 sent German troops into Austria
and following dag proclaimed
Anschluss between Reich and Aus
tria. setting todag for plebiscite on
union and for election of new
Reichstag, which would include
representation of Austria. Since
then economic and political con
solidation of two countries has gone
forward with haste.
By ll.p Associated Press.
VIENNA, April 9—Reichsfuehrer
Adolf Hitler tonight justified his whirl
wind annexation of Austria by de
claring It was “the will of God" and
pleaded for 50.000,000 voters to in
dorse the creation of the greater Ger
many In tomorrow's plebiscite.
Addressing 30,000 wildly cheering
followers in the Northwest Railway
Station in the final appeal of the
plebiscite campaign, the Austrian-born
Hitler exclaimed:
“I believe it was the will of God to
send this little boy to Germany to
make him Fuehrer of the Reich and
to bring Austria back to Germany."
Warns Enemies.
He warned his enemies never to
attempt to seize power here because
75.000,000 Germans would rise against
“Now I am in power and I shall
not give it up."
In another breath he said his name
“will stand out forever as the son of
this great country.”
Pleading for a favorable vote to
morrow, he declared:
"Just as you don’t have to be
ashamed of me. I don't want to be
ashamed of you * *
Millions of Germans throughout
greater Germany and elsewhere lis
tened in to a broadcast of the speech
Their day is tomorrow w hen they w ill
vote on Auxtro-German union, effected
after German troops marched into
Austria March 12. and elect the new
Reichstag of the greater Germany.
• Hitler's speech, broadcast to
the United States by short wave,
was heard clearly here.i
The polls will he open from 8 a m.
to 5 p.m. <2 am.-11 a m. E. S. T.)
Speaks in Railway Station.
Hitler's rostrum was the unused
Northwest Railway Station, near the
Jewish quarter, which tonight re
sembled a highly decoraied cathedral.
Der Fuehrer for once did not have
his famous “Hitler weather.” because
in the afternoon there was alternating
hail, snow and rain. Hundreds of
thousands of spectators nevertheless
stood for 12 hours before the city hall,
Hitler's hotel or the Northwest Sta
tion to catch a glimpse of him.
One of the city's biggest shows was
the former Hapsburg Imperial Palace,
almost every inch of w hich was cov
ered with flags. There were miles of
bunting which made an impressive
display though bedraggled and torn
by rain and wind.
Leaves for Berlin.
Hitler coughed frequently during
the course of his address, and after it
was over, while church bells tolled
throughout, the country, he left by
special train, presumably for Berlin.
Detailing why his power was here to
stay. Hitler listed five reasons:
“First, this country and its people
are German.
"Second. Austria could not remain
independent—German sections if sep
arated are powerless, but if united
they are strong.
“Third, the Austrian people did not !
want to remain separated from Ger
"Fourth, this is my homeland * * *. '
Do you wonder that I wanted to in
corporate my homeland into the Reich? '
"Fifth, I am staying here because I
know and understand more than (for
mer Chancellor Kurt) Schuschnigg.
"Dwarfs” Were Running Country.
“I have proved I can do more than
the dwarfs who were running this
country into the ground.
“I don’t know if any one a hundred
years from now will know the names of
these dwarfs.
"My name, however, will stand out
forever as the son of this great country
and I believe it was the will of God to
send this little boy to Germany to
(See PLEBISCITE, Page A-47)
Gridiron Skit Shows Business
111 on Zigzagging Ship of State
President Roosevelt Heads List of Distinguished
Guests Lampooned at Newspaper Club’S
Dinner—Holmes Named New Head.
Big and Little Business, sore and sea
sick, hung disconsolately over the rail
of the ship of state last night at the
spring dinner of the Gridiron Club, as
the skipper steered first for one ob
jective and then another.
President Roosevelt, heading a list
of distinguished guests, including Vice'
President Garner, Speaker Bankhead,
foreign diplomats, members of the cab
inet and of Congress, watched unfold
in song and satire a picture of this
crazy world of today. The dinner of
the famous newspaper club was given
at the Willard Hotel. ' /
Many of the guests themselves were
called to their feet by two club inter
locutors. who presented them to the
assembled diners and made answer for
them. The climax of this skit was the
introduction of Franklin D. Roosevelt,
jr„ son of the President. A club mem
ber, allegedly speaking for former
President Herbert Hoover, asked in
doleful tones: 1
“Are there two of them?”
The dinner ended with a toast to
President Roosevelt, who addressed the
gathering. In accord with a time
honored rule, the President’s speech
was "off the record,” and not reported.
Previously Dr. Glenn Frank, who had
been subjected to his share of satire as
reorganizer of the Republican party,
had spoken.
The theme of the dinner was laid
(Continued on Page A-12, Column I.)
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you MAY HAVE eteN A N
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Kennedy Eliminates Visitors
From Presentations at Court
Ambassador to Hold List to Americans
Domiciled in England or to
Relatives of Officials,
By [be A euated Press.
Joseph P. Kennedy, United States
Ambassador to Great Britain, closed
the doors of the Court of St. James's
today to American women who are
merely visiting in London.
He wrote Senator Henry Cabot
Lodge, Republican, of Massachusetts
that he considered "undemocratic"
the practice of American Ambassadors
in selecting every year a "small num
oer of young ladies from a long list, i
very few, if any, of whom he has
ever seen.”
Accordingly, Mr. Kennedy said he
had concluded to confine presenta
tions to the families of Ametican offi
cials in England and to members of
American families who are domiciled
in England.
Senator Lodge had written Mr. Ken
nedy concerning the presentation ap
plication of a young woman from
Massachusetts. Mr. Kennedy said he
regretted he could not meet the re
Senator Lodge made public a letter
to Mr. Kennedy indorsing the Am
bassador's stand. I
“I think this is a pood decision
and that you have adopted a truly
democratic policy.” the Senator said.
The Ambassador told Senator Lodge
the British court was ready as al
ways to receive as many American
ladies as in the past. He said the
Embassy for many years had pre
sented between 20 and 30 annuallv.
The average, he added, had been
"twice as great as the number of
ladies presented by all the other diplo
matic missions together."
Every year, Mr. Kennedy said, the
Ambassador is faced with the "dis
tasteful” job of selection.
"This practice." he wrote Senator
Lodge, "it seems to me. is undemo
cratic—in that the invidious choice
can have in large part no basis other
than the pressure of recommendations
behind the individual applicants, or
pure chance. A large number of
equally worthy ladies are disappointed
and. in many cases, feel that they
have been unfairly treated. It is im
possible to make this choice from
among the applicants on any basis of
real fairness.”
A. F. L.-C. I. 0. Strife Subsides
After Sheriff Blockades Town
to Isolate Opponents.
B» the Associated Press.
CROCKETT, Calif., April 9 —
Threats of warfare between A. F. L.
and C. I. O. forces gave way suddenly
to peace efforts today after police had
blockaded this strike-torn town to
isolate the opposing groups.
Picket lines, which many times had
changed complexion during a week of
tension, vanished during the after
noon, and Sheriff John Miller an
nounced both sides had agreed not
to re-form them pending peace nego
tions which "might take a day or a
The opposing groups had been
struggling for control of the entrance
to the California and Hawaiian Sugar
Refinery, tied up for 29 days.
State's Action Climaxes Clash
Over Ouster From Choice
Site on Grounds.
By thf Associated Press.
NEW YORK, April 9—Oregon
withdrew today from the 1939 New
York World's Fair, as the climax
of a heated clash over her ousting
from a choice site on the fair grounds.
Thomas F. Gunn, vice cliairman of
the Oregon Commission, notified
Grover Whalen, fair president, of the
State's withdrawal following tele
graphic instructions from Gov. Charles
H. Martin of Oregon.
In a sharply worded statement. Mr.
Gunn criticized fair officials for
"bungling" arrangements for Oregon's
scheduled $117,000 display, for shunt
ing the State's proposed exhibit to a
less favorable position to make room
for an unnamed foreign nation, and
for allegedly "backing down" on an
agreement to compensate the State
for the change of site.
Fair officials, who termed the with
drawal "a ticklish matter.” countered
with the assertion that they had
offered Oregon a "fair adjustment"
but that it had been turned down.
Plane and Crew of Four Sighted
hy Destroyer Shortly After
Search Begins.
By the Associated Prc is.
HONOLULU, April 9.—Shortly after
Army, Navy and Coast Guard air and
surface craft had launched a search,
a missing Army amphibian airplane
was found today several miles at sea
in tow of a sampan with the plane's
crew of four safe.
Army authorities announced the
Navy destroyer Dale reported she had
sighted the plane in tow of the sampan
10'i miles south of Honolulu.
The report said the plane was forced
down in Molokai Channel at 2:40 p.m.
while returning from a flight to
Hawaii Island, over 100 miles south
east of here.
2,000 Filtered Into Capital
as Coolies—Japanese
Drive Menaced.
Chinese appear to hate turned
tide of war u ith Japan by forcing
Japanese to yield Taierhchicang. on
the Grand Canal, northeast of
Suchoic. Japanese said to have
been put to flight, stalemating their
attempt to conquer East-Central
China with attacks from north and
south, which have been in progress
since first of year.
Ey the Associat'd Press.
SHANGHAI, April 10 (Sunday).—
Two thousand Chinese soldiers who
posed as destitute coolies to filter
through Japanese lines struck Irom
behind today in a battle that threat
ened to wreck Japan's "grand cam
paign" in Central China.
Inside walled Tsinan, Shantung
Province capital, the disguised bat
talion attacked Japanese defenders
who fought to stem Chinese columns
storming its gates from the outside.
Capture of Tsinan, the base of Jap
anese operations in the "grand cam
paign" to swallow the unconquered
portion of Central China, would sever
! the link between Japanese forces far
to the south and the Japanese muni
tion and manpower reservoir at Tient
sin, to the north.
Filtered Into Tsinan.
I Chinese who told of the rising of the
i disguised battalion, said its members
; had filtered into Tsinan a few at a
• time for days. Each carried a revolver
and several grenades.
When the zero hour came they at
tacked near the east gate and oc
cuped several strategic buildings.
Outside, crack Chinese flying col
umns were in position on three sides
of the city.
With the rout of Japanese forces at
, Taierhchwang, on the Grand Canal,
j northeast of Suchow, Chinese said
■ Japanese Supply lines in the Lung
; hai corridor had been wiped out.
75 Miles From Suchow.
Tsinan is 75 miles north of Suchow’
on the Tientsin-Pukow Railroad, along
which the Japanese had been thrust
i ing south for weeks toward the vital
East-West Lunghai Railway.
Chinese said Japanese forces con
centrated between Lincheng and Yih
sien, in the Taierhchwang sector, were
running short of food as well as am
Chinese said 1,000 Japanese were
killed in the flight from Taierh
chwang besides 6,000 others whose
bodies were said to have been found
on the battlefield.
» - - • --
Doomed Convict Leave* Cornea to '
Pastor Pacing Blindness.
SAN QUENTIN. Calif., April 9 (JP).—
San Quentin Prison authorities dis
closed today that Albert Kessell, sen
tenced to death in the State's new
lethal gas chamber, had bequeathed
the cornea of his left eye to the Rev.
U. E. Harding, Portland, Oreg.
The minister went to the prison last
month in his quest for a cornea to
avert blindness. He was not allowed
to interview the condemned prisoners,
but later wrote letters to them.
Kessell was convicted of murder in j
connection with the Folsom Prison
riot last fall in which Warden Clar- j
enee Larkin was killed. 1
Sent Joint Letter to Every
Member Attacking Plan
as Injustice.
Both Lawmakers to Sponsor Moves
to Increase Taxes on Beer
and Liquor.
Controversy over uhat form Dis
trict. tax legislation should take
developed in present session of
Congress as a result of failure of
last year’s tax bill to produce the
revenue anticipated. Outstanding
question has revolved around the
feasibility of an income tax and the
method of application.
Every member of the House was
appealed to yesterday by Representa
tive Smith. Democrat, of Virginia, and
Lewis. Democrat, of Maryland, to join
them in a move to defeat the income
tax section of the 1939 District rev
enue bill which the House is sched
uled to consider tomorrow, the first
so-called "District day" of the
The appeal was contained in a
joint letter, signed by Mr, Smith and
Mr, Lewis, which was sent to thp en
tire House membership—an appeal
that presages a bitter fight over the
income tax plan.
The letter branded as "a rank in*
justice and totally indefensible" the
plan to impose an income tax on non
residents. and pointed out the mem
bers could neither defend nor justifv
the bill's proposal to exempt them
selves from payment of the tax while
taxing the salaries of others.
Smith and Lewis Take Lead.
Mr. Smith and Mr. Lewis, in whose
districts in nearby Virginia and Mary
land live 20.000 or more constituents
whose incomes in the District would
be tapped by the municipal govern
ment simply because thev work in
Washington, have arranged to take
the lead in the battle to kill the in
come tax.
Several strategic parliamentary ma
neuvers already have been decided on
in an effort to remove the entire in
come tax section, or adopt amend
ments that would protect non-resi
dents from payment of the proposed
income tax. These include an amend
ment which would force payment of
the tax by members of Congress and
others who are now specifically
Mr. Smith disclosed he would first
offer an amendment for elimination
of the entire income tax section of
the bill, on the ground an income tax
would not be necessary to balance the
1939 budget if the proposed 50 cents
a barrel tax on beer is raised to $1
and the present 50 cents a gallon tax
on hard liquor is increased to SI.
If the House refuses to remove the
income tax section. Mr. Smith said
he would offer an amendment to ex
empt non-residents from payment of
the tax. and if he loses on this
point, he would present another
amendment to eliminate a provision
exempting members of Congress and
others in the select group.
Vrges Liquor Tax Increase.
Mr. Smith also proposes to sponsor
amendments to increase both the
beer and the hard liquor taxes. He
said an increase of 50 cents a gallon
in the hard liquor tax would raise
$1,200,000 in additional revenue, and
a tax of $1 a barrel on beer $400,000.
which would give the District more
additional funds than necessary to
keep out of the red in the coming
fiscal year if the real estate tax rate
is continued at $1.75 as provided in
the bill.
The joint, letter of Mr. Smith and
Mr. Lewis to thpir colleagues, read:
"On Monday the House will con
sider an income tax bill for the Dis
trict of Columbia, which contains a
provision imposing a very unjust in
come tax on non-residents for the
support of the local government of
Washington. Ail of us have constitu
ents who earn their salary from the
(See D7c TAXES7Pagc~A~-5 >
Two Steamers Rush to Aid of
Greek Vessel—Seamen
Trapped Aboard.
Et the Associated Press.
NEW YORK, April 9— Markav
Radio reported tonight thp rescue of
five members rtf the crew of the
Greek steamer Mount Kyllene, torn
apart In an explosion in the Atlantic
several hundred miles north of the
The steamship Inverlee radioed ft
took off five of the "six or sixteen”
men aboard one section of the Mount
Kyllene before darkness forced sus
pension of the rescue work.
At the same time the steamship
Athelfoan, which raced the Inverlee
to the scene after receiving distress
signals, put out a boat to take off
two other crewmen trapped in the
second portion of the Mount Kyllene
still afloat.
It was these men. Markav Radio
was advised, who sent out an SOS
with emergency radio equipment after
the unexplained blast.
The two rescue vessels were less
than an hour from the stricken ship
when they received the call for “im
mediate assistance.” The Inverlee
radioed they would attempt to save
the remainder of the crew at day
Radio Programs, Page F-3.
Complete Index, Page A-2.

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