Evening star. [volume], April 25, 1938, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

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WEATHER.
<U. 8. Weather Bureau Forecast.)
Generally fair tonight and tomorrow;
not much change in temperature; lowest
tonight about 45 degrees; gentle shifting
winds becoming northerly. Temperatures
today—Highest, 75, at 3 p.m.; lowest,
42, at 5 a.m. Full repor- on page A-2.
Closing N.Y. Markets—Sales—Page 16
The only evening paper
in Washington with the
Associated Press News
and Wirephoto Services.
(A*) Meant Aeeociated Prate.
86th YEAR. No. 34,327.
WASHINGTON, D. C., MONDAY, APRIL 25, 1938—THIRTY-FOUR PAGES.
Entered as second class matter rn i j n|,s / M/VTCJ
post office, Washington. D. C. ■ *1 ** Fj ' TjA llo.
It Is Not So Much Amount
But Way It Is Spent,
Asserts Burke.
EARLY RAILROAD PARLEY
IS SOUGHT BY WHEELER
Montanan Feels Carriers Should
Be Included in General
Pump Priming.
B» the Associated Press.
A proposal to require congressional
approval of public works projects orig
inated today among Senate opponents
of the administration's spend-and
lend program.
Senator Burke, Democrat, of Ne
braska. declared the amount spent is
not so important as the way it is
spent.
• "I am opposed to voting blank
check appropriations.'' he said, add
ing he also favored turning the ad
ministration of relief bark to the
States, a change supported by most
Republican legislators.
A House subcommittee, consider
ing the administration's relief and
pump-priming proposals, heard testi
mony this morning from Farm Se
curity Administration officials.
Secretary Ickes, chief of the Public
Works Administration, and Harry
Hopkins, head of the Works Progress
Administration, conferred with Presi
dent Roosevelt 45 minutes this morn
ing on the new spending and lending
plans, but declined to say just what
phases of the program they had taken
up.
Talking of Scrapping Plan.
Some opponents of the President's
recommendations talked of scrapping
entirely his proposal for a billion-dol
lar renewal of public works loans and
grants to city and State projects.
They contended with Chairman
Glass, Democrat, of Virginia, of the
Senate Appropriations Committee that
the Reconstruction Finance Corp.
could handle all essential lending in a
businesslike manner. They said the
R. F. C.’s lending power could be
increased, if necessary, from the new
$1,500,000,000 total to $3,000,000,000.
The President's lieutenants, on the
other hand, declared the entire pro
gram would go through Congress in
its original form.
Senator Wheeler, Democrat, of
Montana, who has been conducting
Investigations of railroad financing,
said financial aid for the railroads
should be included in the general
pump-priming program.
Seeks Early Parley.
Declaring this would be the best
method of helping the carriers at the
1938 session of Congress. Senator
Wheeler sought an early conference i
with House leaders and representa
tives of railroad management and j
labor to work out details.
He said lie would discuss equipment
loans for the carriers, R. F. C. loans
for ‘'border-line” roads, a work-relief
program for furloughed railroad
workers and other financial help.
The Montana Senator said he
planned to make special studies this j
summer for a long-range railroad pro
gram.
He declared that if the railroads
had reduced top-heavy capitalizations
in 1929, "they would have been in a
better position today and would not
be facing another crisis.”
-•
JAPANESE GRILLING
U. S. AVIATOR AGAIN
Will Decide When they Finish
Whether to Indict Gibbon
for Aiding China.
By the Associated Press.
YOKOHAMA, April $5. — Elwyn
Gibbon, American aviator, was in for
another grilling by Japanese author
ities today about his alleged activ
ities with the Chinese air force.
When they finish questioning the
27-year-old pilot, the Japanese indi
cated, they will decide whether to in
dict him under a stringent law dealing
with "impeding the public safety."
Violation of this law carries heavy
penalties, the maximum being death
or life imprisonment.
Gibbon was arrested Friday when
he arrived on the liner Empress of
Asia, en route to Vancouver, British
Columbia. It was learned that the
„ Japanese secret service originally was
less interested in Gibbon himself than
in information he might possess about
the Chinese air force.
For this reason he was first taken
from the liner to the best hotel in
Yokohama, instead of the police sta
tion. Reliable sources said the agents
tried to "create an atmosphere of
friendliness and cordiality" while ex
amining him. During the questioning,
a sumptuous dinner was served.
Grew Acts to Aid Gibbon.
By the Associated Press.
Joseph C. Grew, American Ambas
sador in Tokio, has formally asked
the Japanese foreign office why Mel
vin Gibbon, American aviator, is being
held by Japanese authorities.
Mr. Grew advised the State De
partment of this step today. Another
dispatch stated that Consul Richard
F. Boyce, Yokohama, was keeping in
close touch with developments.
BULLETIN
The House, reversing two earlier
decisions, today approved a $2,613,
000 appropriation to start construc
tion ci a Tennessee Valley Author
ity dam near Gilbertsville, Ky. It
agreed on a 159-152 roll call vote
to the expenditure the Senate had
insisted on for two months.
A 1
Under Knife
GEN. DAWES IS STRICKEN
WITH APPENDICITIS.
BRIG. GEN. CHARLES G.
DAWES.
__
By ihe Associated Press.
NEW YORK, April 2ft.—Roosevelt
Hospital officials disclosed today that
Brig. Gen. Charles Gates Dawes, for
mer Vice President, who was taken
suddenly ill yesterday, had been
operated on for "acute suppurative
appendicitis.”
Gen. Dawes, who will be 73 years
old on August 27, came to New York
from Chicago to attend the wedding
of Francis Warren Pershing, son of
Gen. John J. Pershing, and Muriel
Bache Richards.
The attending physician Is Dr.
Henry W. Cave. Mrs. Dawes is In
New York with her husband.
Mrs. Charles Hanna of Montclair,
N. J., wife of a New York Clearing
House official, who accompanied Mri
Dawes to the hospital, said the gen
eral had spent a "good night" and
was "doing fine."
"They had an awful time getting
his pipe away from him before the
operation," Mrs. Hanna said, remark
ing that it indicated to her he was
in his customary spirits.
A. F. IMS NEW
C.L (LEMONS
Charters for Rival Unions
Also May Be Discussed
At Meeting Here.
BACKGROUND—
For more than two years, Amer
ican labor has been torn by dissen
sion, one wing led by the powerful
Mine Workers’ Union going into
the mass production industries and
setting up the Committee for In
dustrial Organization in opposition
to the American Federation of La
bor. Recurrent peace-making ef
forts have been made, but the on’v
result has been to widen the
breach.
Bjr the Associated Press.
Leaders of the American Federation
of Labor, here for an Executive Coun
cil meeting, talked today of dismiss
ing more C. I. O. unions from their
ranks.
Although the Federation officials
professed not to know specifically what
their next move would be in the civil
war between the A. F. of L. and John
L. Lewis' C. I. O., they recalled that
Lewis' own union—the United Mine
Workers—w'as ousted from A. F. of L.
ranks last January.
The Mine, Mill and Smelter Work
ers and the Federation of Flat Glass
Workers were expelled at the same
time. Seven other C. I. O. affiliates,
including the United Textile Workers,
were left suspended but still tech
nically members of the A. F. of L.
The chartering of rival unions,
which would bid for dominance in
fields already occupied by C. I. O.
groups, also may be discussed. Coun
cil members considered issuing char
ters to the Progressive Miners of
America, a rival to Lewis’ United Mine
Workers in Illinois, and to the Blue
Card Union of Metal Miners, a rival
of the C. I. O. Mine, Mill and Smelter
Workers in the tri-State district of
Missouri, Oklahoma and Kansas.
Some of the labor leaders talked of
advocating a federal spending pro
gram even greater than the $4,500,
000,000 pump-priming and relief sys
tem proposed by President Roosevelt.
JAPAN REPORTED
RECALLING CHIEF
FROM SHANTUNG
Gen. Terauchi Is Declared
Withdrawn as Result
of Defeat.
NIPPONESE WIPING OUT
TAIERHCHWANG LOSSES
15 Troop Trains Rolling South
From Tientsin to Support
Drive on Suchow.
BACKGROUND—
After heavy defeat in Taierh
chwang sector of central Chinese
front Japan has rushed new thou
sands of reinforcements to holster
offensive against strategic city of
Suchow and the east-west Lunghai
Railway, which is heart of corri
dor dividing North China and
Yangtze Valley conquests.
By the Associated Press.
SHANGHAI, April 25.—Reports of
a change in the Japanese command
in North China as a result of the
disastrous Taierhchwang defeat co
incided today with fresh Japanese ad
vances in the drive to wipe out the
stain of that reverse.
The American-owned Shanghai
Evening Post and Mercury said Gen.
Count Juichi Terauchi, commanding
in North China since early in the
war, had been recalled to Japan and
been succeeded by Lieut. Gen. Jun
Ushiromiya. known as one of Japan's
greatest tacticians.
The Japanese army spokesman in
Shanghai denied reports of a change
in command. (The Tokio war office
said they were "groundless.'’)
Japan Drives Southward.
Japan's strongly reinforced armies
drove southward close to the vital
east-west Lunghai Railway, attack
ing Pihsien. 12 miles north of Yunho,
where the Lunghai crosses the Grand
Canal, and an equal distance southeast
of Taierhchwang, scene of China's re
cent victory.
The attacking column had crossed
from Shantung Province into Kiangsu
and raptured two villages on the out
skirts of Pihsien. An American mis
sionary, W. S. Junkin of Lexington.
Va.. is reported at Pihsien.
The Japanese offensive extended
along a 50-mile front east and west
of Pihsien. Fifteen troop trains were
rolling southward from Tientsin with
fresh troops for the drive.
Gen. Ushiromiya held high office
in the Tokio war office until last Oc
tober, when he was sent to China to
take “an Important post In connection
with the China incident.” Hitherto
there has been no explanation of that
assignment.
Gen. Terauchi had been responsible
for the Japanese drive through Shan
tung Province which the Chinese
hurled back at Taierhchwang. Neu
tral experts pronounced that the first
major defeat in Japan's modern mili
tary history.
In February Japan changed com
manders in Central China, replacing
Gen. Iwane Matsui by Gen. Shunro
ku Hata. Recently the Japanese war
minister, Gen. Gen Sugiyama. re
turned to Tokio from a tour of the
China battle zones.
Whoever commands the Japanese
on the southern Shantung front, the
Evening Past and Mercury said he was
called on to match strategy with
China's German military advisers,
chief of whom is Gen. Baron Alex
ander von Falkenhausen.
New Battle Due at Taierhchwang.
A new battle for possession of
Taierhchwang, war-despoiled South
Shantung city where the Japanese
suffered a disastrous defeat early in
April, appeared imminent as the in
vaders struggled to reach the Lunghai
Railway.
The Chinese, fighting desperately to
check the Japanese offensive along
the South Shantung border, declared
Japan soon will have fully 300.000
soldiers engaged in their revitalized
drive to capture Suchow.
This strategic city, scarcely 40 miles
southwest of Taierhchwang, is the
junction point of the east-west Lung
hai line and the Tientsin-Pukow line,
running southward from Tientsin into
the heart of Central China's rich
agricultural region.
Summary of Today's Star
Page. Page.
Amusements B-16 Radio _B-ll
Comics ..B-14-13 Short Story... B-7
Editorials ... A-8 Society_ B-3
Finance -A-15 Sports A-12-13-14
Lost & Found B-ll Woman’s Pg. B-10
Obituary_A-10
FOREIGN.
Japan reported recalling chief from
Shantung. Page A-l
Davila, ex-envoy of Rumania, may be
come U. S. citizen. Page A-l
Daladier warns French may force
totalitarian rule. Page A-2
Need for planes problem of British
statesmen. Page A-4
Nazis’ self-rule demands handed to
Czechs. Page A-4
Hungarian Revisionist League shows
marked gains. Page A-5
NATIONAL.
Frank B. Noyes retires today as presi
dent of A. P. Page A-l
President sends tax exemption message
to Congress. Page A-l
W. P. A. opens investigation of Penn
sylvania charges. Page A-l
Opponents of spending ask Congress’
control over projects. Page A-l
Monoply control and tax exemptions
key to adjournment. Page A-7
WASHINGTON AND VICINITY.
Mrs. Roosevelt approves suffrage poll
here Saturday. Page A-l
Three on trial in stolen jewelry trans
portation case. Page A-2
C. S. Hamlin, first Federal Reserve
governor, dies at 76. Page \-2
k 1
National Academy of Sciences opens
spring meeting here. Page A-S
Three dead, more than dozen hurt in
Sunday traffic. Page B-l
FINANCIAL.
Bonds Irregular (Table.) Page A-15
U. S. Foreign Trade Soars. Page A-15
North American Net Smaller.
Page A-16
Stocks feo Down. (Table) Page A-18
Curb Shares Lower. (Table) Page A-17
Lull Continues at Steel Plants.
Page A-18
SPORTS
Relief pitching now rated chief prob
lem of Harris. Page A-12
New base ball helping pitchers in
National League. Page A-12
Stagehand sentimental as well as form
favorite for Derby. Page A-13
Amateurism of Budge challenged by
press of New Zealand. Page A-14
EDITORIAL AND COMMENT
Editorials. Page A-8
This and That. Page A-8
Washington Observations. Page A-8
Answern to Questions. Page A-8
The Capital Parade Page A-9
David Lawrence. Page A-9
Dorothy Thompson. Page A-9
Constantine Brown. Page A-9
Lemuel Parton. Page A-9
MISCELLANY.
City News in Brief. Page B-8
Nature's Children. Page B-9
Vital Statistics. Page A-18
Shipping News. Page A-11
Bedtime Story. Page B-14
Letter-Out. Page B-14
Crossword Puzzle. Page B-14
Contract Bridge. F|ge B-15
FOR STOCKYARDS
6-1 Decision Is First That
Might Be Considered a
Rebuke to New Deal.
INADEQUATE HEARING
IS BASIS FOR VERDICT
Municipal Bankruptcy Act Is
Upheld Earlier. 5 to 4—Black
Dissents in A. A. A. Case.
BACKGROUND—
Twenty-three months ago Su
preme Court ruled. 5-4. that mu
nicipal bankruptcy law passed by
Congress in 1934 was unconstitu
tional. Congress passed a new act
to meet the court’s objection. Orig
inal opinion was written by Justice
McReynolds. Chief Justice Hughes
and Justices Cardoso, Brandeis and
Stone dissented.
By JOHN H. CLINE.
Rendering the first decision of this
term that might be considered a re
buke to the New Deal, the Supreme
Court today set aside an order by
Secretary of Agriculture Wallace pre
scribing Kansas City stock yard rates
on the ground that the business men
affected by the order were not given a
fair and adequate hearing.
The court, in a 6-to-l opinion,
said the question involved—the ade
quacy of administrative hearings—
was of great national importance in
view of the increasing tendency of
Congress to delegate powers to execu
tive agencies.
In an earlier decision the justices
upheld the constitutionality of the re
vised Bankruptcy Act
The act was declared unconstitu
tional bv an earlier 5-to-4 decision, but
the Justices ruled today its constitu
tional defect had been cured by an
amendment adopted by Congress last
year.
The division among the justices in
the Kansas City Stockyards case
evoked comment, since Justice Bran
deis and Stone, listed among the lib
erals. sided with the majority against
Justice Black, who dissented. He did
not write a dissenting opinion. Justices
Cardozo and Reed took no part in
the consideration of the case.
Reverse* District Court.
The decision, delivered by Chief Jus
tice Hughes, reversed the ruling of •
three-Judge District Court, which had
upheld the validity of the rates fixed
by the Secretary and had dismissed 50
suits attacking them.
The Chief Justice pointed out that
prior to fixing of the rates, a hearing
was held by employes of the Bureau
of Animal Husbandry, a voluminous
record being compiled. However, the
rates were promulgated by the Sec
retary without giving the packers
affected by the order an opportunity
to answer or contest the findings of
the departmental employes.
Holding that this failure violated
the stipulation by Congress that a
fair and open hearing should be held,
the Chief Justice said:
"The part taken by the Secretary
himself in the departmental proceed
ings is shown by his full and candid
testimony. The evidence had been
received before he took office. He
did not hear the oral argument. The
bulky record was placed upon his
desk and he dipped into it from time
to time to get its drift. He decided
that probably the essence of the evi
dence was contained in appellates'
briefs. These, together with the
transcript of the oral argument, he
took home with him and read. He
had several conferences wfth the so
licitor of the department and with
the officials in the Bureau of Animal
Industry and discussed the proposed
finding • * »
More Is Required.
"In the light of this testimony there
is no occasion to discuss the extent to
which the Secretary examined the evi
dence, and we agree with the Gov
ernment's contention that it was not
the function of the court to probe the
mental processes of the Secretary in
reaching his conclusions if he gave the
hearings which the law required.
"The Secretary read the summary
presented by appellates' briefs and he
conferred with his subordinates who
had sifted and analyzed the evidence.
We assume that the Secretary suffi
ciently understood its purport. But a
‘full hearing'—a fair and open hear
ing—requires more than that. The
right to a hearing embraces not only
the right to present evidence, but also
a reasonable opportunity to know the
claims of the opposing party and t#
meet them. The right to submit argu
ments implies that opportunity; other
wise the right may be but a barren
one.
"Those who are brought into con
test with the Government in a quasl
Judicial proceeding aimed at the con
trol of their activities are entitled to
be fairly advised of what the Govern
ment proposes and to be heard upon
its proposals before it issues its final
command."
Is Basic Necessity.
The Chief Justice commented that
the question of giving a fair hearing
goes to the very foundation of the ac
tion of administrative agencies en
trusted by the Congress with broad
control over activities which in their
detail cannot be dealt with directly by
the legislature. “The vast expansion
of this field of administrative regula
tion in response to the pressure of
social needs,” he said, "is made possible
under our system by adherence to the
basic principles that the legislature
shall appropriately determine the stan
dards of administrative action and
that in administrative proceedings of
a quasi-judicial character, the liberty
and property of the citizen shall be
protected by the rudimentary require
ments of fair play.”
The Chief Justice concluded that
“the maintenance of proper standards
on the part of administrative agencies
in the performance of their quasi
judicial functions is of the highest
(8ee COURTS, Pag^A-4 )
odiaA'
A
Maybe Mr. Ford will do the customary thing and place a wreath!
NOYES RETIRES
AS HEAD OF A. P.
Precedent Is Broken by
Voice Vote Election as
Director.
By the Associated Press.
NEW YORK, April 25 —Frank B
Noyes, retiring president of the Asso
ciated Press, today was re-elected by
acclamation to the Board of Directors
at the 38th annual meeting of the As
sociated Press membership.
His re-election by voice vote broke
precedent, as it is customary for board
members to be selected by written
ballot.
E. P. Adler of the Davenport ilowa)
Times, head of the Nominating Com
mittee. put Mr. Noyes in nomination,
saying:
"I know that this is against the
rules, but you will want to adopt this
motion unanimously."
John Stewart Bryan of the Rich
mond, Va„ News-Leader, seconded
the nomination, telling the members:
“Let us do ourselves honor by elect
ing him by acclamation."
Mr. Noyes retired as president of
the Associated Press with a last "gift" i
from the membership—a pledge that
the service would be rededicated "to
the cause of truth in the news.”
In a speech prepared for the A. P.’s
annual luncheon, Paul Bellamy, edi
tor of the Cleveland Plain Dealer,
praised Mr. Noyes' unbroken tenure
of 38 years in the presidency now
ended, and told him:
“* * * This is not farewell. It is not
even au revoir. We are to have your
counsel for many years more, but now
is as good a time as. may ever come
to tell you that the members of the
Associated Press can never repay you
for what you have so freely $iven us
in the years of your leadership.
"There is a gift we can give you
today.” he said, "which will gladden
your heart more than any other, and
I think I know this membership well
enough to say that we will give it.
Rededicated to Truth.
“We can and we do rededicate our
| selves to the cause of truth in the
; news. This cause was never in direr
I need of defenders than today. The
march of events intensifies class dif
ferences. The centrifugal forces
which have split apart many a coun
try in the past are at work among us.
"One pressure group after another
takes the center of the stage, each
fanned into a fierce flame of endeavor
by its leaders. Who. then, shall stand
for America first and his own ‘ism’
second? Only that one, I suspect,
who can see the country whole and
know it as it really is, know all its
parts and their relationship to each
other, know what the entire adventure
is about.
"And how do we develop citizens of
this order? Only by telling fully and
truly what is going on. Public opin
ion rules a democracy and news is
the raw material of public opinion.
“ * * • we shall tell the truth,” he
added, “and more resolutely than ever.
We shall do it because we love and
honor you and the other founders of
this great free news service. We shall
do it because you have been right for
45 years. We shall do it because our
own consciences impel us. We shall
do it because our beloved country re
quires us to keep the faith.”
- Mr. Noyes announced his intention
to retire last January. Now, nearly
75, he insisted that the presidency
pass to younger hands. His successor
(See NOYES, Page A^5.)
ANGLO-IRISH PACT
SIGNED IN LONDON
Provisions of Agreement Aimed
at Ending Enmity to Be
Bevealed Tonight.
By the Associated Press.
LONDON, April 25.—Neville Cham
berlain and Eamon de Valera, prime
minister* of Great Britain and Ire
land, today signed an agreement in
tended to end old enmities between
the two countries and solve their
trade and defense disputes.
The agreement, which falls to touch
mi the larger issue of the partition
of Ireland, was signed formally in
the cabinet room at No. 10 Downing
street.
The pact, to be published tonight,
is expected to put farm products of
Ireland, the former Irish Free State,
on the same preferential basis as
Britain accords the Dominions.
___■__ - j
Stamp Issued,
But It Comes
In Two Colors j
The Post Office Department, having :
announced that it would release one :
new stamp today, took collectors by
surprise and released two of the same
design, but of different colors.
Both varieties are the 1-cent George I
Washington presidential issue values,;
based on the prize winning composition
of Elaine Rawlinson, New York artist.
The first is printed in a rich blue
green shade, the second in light yellow
or apple green.
Discovery of the distinction was;
made by William A. Verhas. himself ;
an artist skilled in color variations.
BACKSVOTETEST;
Preliminary Returns From!
Forest Hills Citizens’ Poll
Are Favorable.
Mrs. Franklin D. Roosevelt today
expressed approval of plans for the
District of Columbia suffrage refer
endum next Saturday.
At her press conference Mrs. Roose
velt declared she thought it always
a good idea to give the people the
chance to say what they think.
Preliminary returns In a preliminary
straw vote on suffrage for the Dis
trict. conducted by the Forest Hills
Citizens' Association, meanwhile,
showed a majority in favor of both
national representation and municipal
suffrage.
This was disclosed today by L. A.
Carruthers. president of the associa
tion. who also is president of the Fed
eration of Citizens Associations.
The straw vote is being conducted
by the association by mail as a pre
liminary to the suffrage plebiscite next
Saturday. Only about 25 per cent of
the membership has replied to date,
but more cards are coming in daily
Mr. Carruthers said.
A special meeting «ef the association
has been called tonight for considera
tion of the question. "A full oppor
tunity," Mr. Carruthers said, “will be
given to discuss the subject and the
views of those members present will
be taken and be compared with the
views expressed through the ballot."
The meeting will be held in the
Ben W. Murch School.
National Representation Result.
Results of the straw vote by the
Forest Hills people shows on the basis
of early returns 80 per cent of those
voting are in favor of national rep
resentation, while 20 per cent are op
posed to national representation.
On the question of local suffrage
51 per cent have voted yes and 49
per cent no.
The above figures include 11 per
cent opposed to any form of suffrage.
Meantime plans for handling the
referendum vote next Saturday at 63
schoolhouses went forward in the
hands of William H. Mondell, chair
man of the Elections Committee of
(See SUFFRAGE, Page~A^3l)
W.P.A.OPENSQUIZ
IN PENNSYLVANIA
‘Mass of Evidence’ Is Given
to Prove Threats at
Relief Workers.
By >.he Assccialed Press.
PHILADELPHIA. April 25— Fran
cis Dryden, W. P. A. field representa
tive. begaa today an investigation of
Philadelphia Democratic Chairman
John B. Kelly's charges of "political
coercion" in Pennsylvania's Demo
cratic primary fight.
Mr. Kelly said Saturday he had
affidavits to back up his charges that
persons under United States Senator
Joseph F. Guffey were "threatening"
W. P. A. employes to line up votes for
the Guffev-C. I. O. ticket in the May
17 primary.
Mr. Dryden said he had not
"looked over yet" what Mr. Kelly de
scribed as a "mass of evidence,” in
cluding the affidavits and a copy of a
circular which the city Democratic
chairman said contained a statement
to the effect tht Senator Guffey was
the the "W. P. A. boss” in Pennsyl
vania.
Mr. Kelly asserted the circulars
were distributed to "all W. P. A.
workers in the State with instructions
to line up—or else."
Mr. Dryden said he would report
to Deputy W. P. A. Administrator
Aubrey Williams, who ordered the
inquiry.
Mr. Kelly Is supporting a ticket
headed by Gov. George H. Earle for
United States Senator and Charles
Alvin Jones of Pittsburgh for Gov
ernor. This slate has Democratic
State Committee backing.
Guffey is campaigning tor a ticket,
also backed by John L. Lewis and the
C. I. O., which offers Mayor S. Davis
Wilson of Philadelphia for Senator
and Thomas Kennedy, Lieutenant
Governor and secretary-treasurer of
the United Mine Workers' Union, for
Governor.
INSTRUCTIONS EXPECTED.
W. P. A. Field Investigator Says Trend
•f Inquiry Depends on Hopkins.
Malcolm Miller. W. P. A. field in
vestigator for 11 Southern States, said
in an interview last night that he
expected to receive specific instruc
tions today regarding his investigation
of alleged irregularities in the Florida
W. P. A.
The W. P. A. ordered him to make a
“thorough investigation” of charges
that Mrs. R. L. Dowling, wife of a
Florida conservation commissioner,
was on the public pay roll as a district
supervisor of the Florida tourist sur
vey. a W. P. A. project.
Asked if this investigation would
be broadened to cover other charges
(See PENNSYLVANIA. Page A-5.)
Fire Bases Block.
GAINESVILLE, Fla.,' April 25 OP).—
Fire razed virtually an antire block
in the business area of Gainesville
today. Firemen battled more than
three hours to extinguish the flames
that resulted In damage. City Manager
J. B. Mobley. jr„ said, might total
"around a half million dollars.”
Davila May Become U.S. Citizen
After Dispute With Kins Carol
By CONSTANTINE BROWN.
Charles A. Davila, who until a few
months ago. was Rumania's Minister
to the United States, may take' out
his naturalization papers shortly to
become a citizen of this country.
Mr. Davila resigned last winter be
cause he could not agree with the dic
tatorial policies of his sovereign, King
Carol.
Because of his attitude toward the
new dictatorial regime in Rumania
and his writings in newspapers and
magazines outside his country, the
irate Carol has decided to withdraw
Mr. Davila's citizenship and confis
cate his properties in Rumania. Thus,
the former representative of Rumania
may find himself a man without a
country, like Einstein, Bruening and
other European liberals who did not
want to bow to the whims of the dic
tators.
If the intimations the former Ru
manian diplomat has received that
Carol intends to take this drastic step
against him come true, Mr. Davila in
tends to file the preliminary papers to
become an American citizens. He feels
that Carol has broken a pledge
toward him and other Rumanian citi
zens when he abrogated the const!
tution and “plebiscited” himself into
a full-fledged dictatorship. Under
these circumstances he believes that
his attacks on the King personally
are more than justified and the sov
ereign arbitrary decision to deprive
him of his citizenship are arbitrary.
M. Davila has lived in this country
for a number of years and is fanatically
Imbued with the democratic doctrines
he has found here. In the event he
loses the citizenship of Rumania he
would want nothing better than to be
come an American citizen.
Technically this is possible. Although
not 'quota immigrants’ foreign diplo
mats are considered as bona fide resi
dents even after they relinquish their
official position. A number of former
ambassadors, ministers and minor offi
cials are at present resident of the
United States, although they have
lost their official status. All these men
are entitled to become citizens, al
though only a few have availed them
selves of this privilege.
The former Rumanian Minister,
in the event he applies for naturaliza
tion, would be the first high-ranking
diplomat to become a full-fledged
American citizen.
M
Urges Congress Vote End of
State and Federal Plan
of Exemptions.
SYSTEM OUTMODED,
HE SAYS IN MESSAGE
Effective Action in ‘Short and
Simple' Bill Is Possible at
Once, He Declares.
BACKGROUND—
President Roosevelt has been as
much of a pioneer in taxation as
in social legislation. The undis
tributed profits tax was his first
notable deviation from established
methods of raising revenue by tax
ation of income. An attempt to
insert a provision in the pending
revenue bill calling for taxation of
income from Federal securities,
always tax-free, was beaten in
Senate by one vote. A few days
later Mr. Roosevelt promised a
message on tax exemption.
(Text of the President's
message, page A-7.)
By G. GOULD LINCOLN.
President Roosevelt today proposed
to Congress that it cut the Gordian
knot which has hitherto obstructed
reciprocal taxation of Federal, State
and municipal securities and of Fed
eral and State salaries.
He recommended in a special mes
sage "that effective action be
promptly taken to terminate these tax
exemptions for the future."
"Such legislation ran, I believe, be
enacted by a short and simple
statute." said the President. “It
would subject all future State and
local bonds to existing Federal taxes,
and it would confer similar powers on
States in relation to future Federal
issues."
The same statute, the President
said, could subject State and local
employes to existing Federal income
taxes, and the State would have simi
lar power to levy income taxes on
the salaries of Federal employes.
Amendment Argument.
In the past, it has been argued that
a constitutional amendment would he
necessary to permit such reciprocal
taxation between the Federal Govern
ment and the States. Admitting that
court decisions have given a "policy
; of reciprocal immunity" so far as Fed
eral. State and municipal bonds and
l salaries are concerned, the President
declared that recent opinions have
given hope the court—which finally
means the Supreme Court—would up
hold such a law as he now proposes.
The President's recommendation to
Congress was made at a time when
the Senate Judiciary Committee had
before it a favorable report from a
subcommittee on a proposed constitu
tional amendment offered by Senator
Byrd of Virginia, designed to accom
plish the reciprocal taxation asked by
the President.
It was made, too. while the con
ferees of the House and Senate were
considering an amendment to the
new revenue bill, offered by Senator
Borah of Idaho and adopted by the
Senate, proposing a tax on all future
Government securities. Such an
amendment was adopted before by
the Senate, but was killed in con
I ference on an earlier revenue bill.
Hants Action Now.
The language of the President's
message was Interpreted as meaning
that he believed the plan for recipro
cal taxation of Federal and Slate and
municipal securities and salaries
should be written into law without
further delay. Since he mentioned a
"short and simple statute" as the
means by which it should be done,
the impression developed that the
Borah amendment would probably be
i stricken from the new and voluminous
; revenue bill and the matter tackled
in a new bill confined to the one pur
pose. The new bill would be an ad
ministration measure.
The President based his belief that
a law permitting reciprocal taxation
j on all Government securities and sal
aries is constitutional on the language
of the Sixteenth Amendment, the Fed
eral income tax amendment.
The Sixteenth Amendment, he
pointed out. "expressly authorized the
Congress 'to lay and collect taxes on
incomes, from whatever sources de
rived.’
"That is plain language.” said the
President. Fairly construed this lan
guage would seem to authorize taxa
tion of income derived from State
and municipal, as well as Federal
bonds, and also income derived from
State and municipal, as well as Federal
offices.”
Situation Held Changed.
He commented that the courts had
not followed this "seemingly obvious
construction of the Sixteenth Amend
ment.” Instead, the courts read into
the amendment a "policy of reciprocal
tax immunity.” Whatever advantages
this reciprocal immunity have had in
the early days of this Nation have
long ago disappeared, the President
insisted.
Today this system of tax immunity
has created a “vast reservoir of tax
exempt securities in the hands of the
very persons who equitably should net
be relieved of taxes on their income,”
| he said. This reservoir, he main
tained, “now constitutes a serious
menace to the fiscal systems of both
| the States and the Nation,” which
have come to rely upon graduated in
come taxes for their revenues.
The President's proposal does not
apply to Government securities which
have been issued by the Federal, State
~(See EXEMPTIONS. Page A-7.)
Murder Suspect Shot.
CONSHOHOCKEN. Pa.. April 25
(£*>.—A colored man who said he was
John Saunders, 38, of Baltimore, was
shot and critically wounded early to
day while trying to escape from police
who were searching for him in con
nection wit ha killing in Mount Holly,
N. O. .