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Evening star. [volume] (Washington, D.C.) 1854-1972, May 09, 1938, Image 1

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WEATHER.
(U. S. Weather Bureau Forecast.)
Fair tonight and tomorrow; cooler to
night with lowest temperature about 48;
gentle to moderate winds, mostly north
west and west. Temperatures today—
Highest. 68. at 2 p.m.; lowest, 56. at 4 a.m.
Full report 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.
M*) Mean* Associated Press.
86th YEAR. No, 34,341.
WASHINGTON, D. CM MONDAY, MAY 9, 1938-THIRTY-FOUR PAGES.
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j. j. entered »s second class matter TUTSTI? r'UVTC!
• post offlee. Washington, D. C. X-IJ-.LlJCj.rj L/X!j.L\Xo.
. ROOSEVELT SEEN
AGAINST LIFTING
«
Stand Is Indicated After
Parley With Leaders in
Congress.
CHANGE IN ACT NOW
OPPOSED BY RAYBURN
President and Hull to Confer
on General International
Developments.
Sy the Associated Press.
President Roosevelt's first post
vacation conference with congressional
leaders produced a strong indication
today the administration will not sup
port efforts to lift the embargo on
arms shipments to Spain.
Representative Rayburn of Texas,
House Democratic leader, said after
, the conference that he was firmly op
posed to modification at this time of
the Neutrality Act as applied to the
Spanish civil war.
The Texan said, in response to
Questions, that the Nye resolution,
which would lift the arms embargo,
was mentioned "incidentally.”
He said he would not attempt to
apeak for the President on this sub
ject. but as for himself he was opposed
to changing the present policy.
The President arranged to discuss
this question and international de
velopments in general with Secretary
Hull.
Early Action Doubted.
The Senate Foreign Relations Com
mittee is awaiting an expression from
the State Department on a resolution
for ending the ban on munitions ship
ments.
Senator Nye. Republican, of North
Dakota, author of the proposal, said
he expected the department would
neither approve nor disapprove. He
predicted, nevertheless, that the Sen
ate committee would indorse his reso
lution.
Some committee members expressed
doubt that any action would be taken
during this session of Congress
The year-old Neutrality Act provides
that export of arms to belligerents
must stop as soon as the President
finds a state of war exists. It has
been applied, so far, only to the war
In Spain.
Administration leaders, criticized by j
»ome groups who contend the Span
ish government forces have been 1
placed at greater disadvantage by the
embargo, have declared the law is in
flexible. Once a state of war is de
clared, they said, arms shipments
must be stopped automatically.
Other Problems.
In addition to the Spanish embargo j
Issue, another international problem!
before President Roosevelt is Ger
many's request for permission to pur- I
chase American helium for use in
dirigibles. Secretary Ickes, who ad- I
ministers the helium laws, has held j
up the sale, demanding a guarantee !
that the non-inflammaole airship gas
would not be used "as an instrument I
of war.”
Dr. Hugo Eckener. the German diri
gible expert, arrived yesterday to ask
officials to release helium for the new
Zeppelin, LZ130. He was honored
last night by a dinner at the Germany
Embassy, attended by several high
Government officials. Secretary Ickes ;
was not invited
FIND $10,000 GEMS
STOLEN AT DERBY
Louisville Police Push Probe of
Eight Other Thefts Yielding
$68,360 Loot.
by the Associated Press.
LOUISVILLE. Ky.. May 9.—Police
recovered a satchel containing jewelry i
Its owner valued at $10,000 here early
today and closed their investigation of
one of the three major jewel thefts
of the Kentucky Derby week end.
The satchel was found and a former
employe of the Kentucky Hotel was
charged with its theft a few hours
after David Butler, Hollywood motion
picture director, reported it disap
peared from the hotel lobby last night. !
Detective Charles Ungles said he
arrested Joe Cody, 31, who gave his
address as Miami. Fla., in a drug
store where Cody tried to sell some of
the jewelry.
Detectives continued their investi
gations of the previously reported
theft of jewels valued at between
$25,000 and $30,000 from the room of
Joan Bennett, film actress, and of
jewelry valued at $29,500 from the
room of Mr. and Mrs. Bradford Ells
worth of New York, in other Louis
ville hotels.
Police said a total of $68,360 in
Jewelry, clothing and other property
was reported stolen from eight Derby
Visitors.
CAB KILLS TWO WOMEN
BALTIMORE, May 9 (IF).—Two
women returning from church to
gether were struck and killed last
night by a taxicab that dragged them
more than 75 feet.
Mrs. Matilda Fiore was killed in
stantly. Her friend. Mrs. Anna Sica,
died shortly after she was admitted
to a hospital.
Dr. F. L. C. Helm, automobile cor
oner, ordered the arrest of the cab
driver, Joseph Harris, 24. on a charge
of causing the women's deaths.
A third traffic victim, John Fabula,
16. died last night of Injuries suffered
Tuesday when an automobile hit his
bicycle.
'Dawes Recuperating.
NEW YORK, May 9 (JP).—Roose
velt Hospital authorities say Qen.
Charles G. Dawes, former Vice Presi
dent, is “getting along fine and wUl
be up and around within a week or 10
days.” Mr. Dawes. 72, underwent
WS.1 appendectomy two weeks ago. j
President Advised to Stump
Nation Against Congress Foes
Norris Argues Prompt Action Would
Minimize Chances of Complete
Split in Democratic Ranks.
1C- Associated Press.
Some of President Roosevelt’s supporters in Congress proposed today
that he stump the country this summer in an attempt to defeat legislators
who have opposed his policies.
They cited the renomination last Tuesday of Senator Pepper, Democrat,
of Florida as evidence that the power of the White House is still great at the
ballot box, despite any insurgency in Congress.
Early in the Florida Democratic primary James Roosevelt, the Presi
aems son ana secretary, said Senator •
Pepper should be returned to the
Senate. It was one of three direct
‘‘blessings” the White House has given
senatorial candidates. The others
were bestowed by the President on
Democratic Leader Barkley of Ken
tucky and Senator F. Ryan Duffy of
Wisconsin.
Administration supporters have con
tended Senator Pepper's victory dem
onstrates that Mr. Roosevelt should
strike a bold course by carrying his
policies directly to the country in the
primaries as well as in the general
election in the fall.
Norris for Plan.
Advisers of this procedure, chief
among whom is Senator Norris, inde
pendent, of Nebraska argued also that
prompt action would minimize chances
of a complete split between the Demo
cratic leadership and the 'La Follettes’
new Liberal party.
Reports have been circulating for
several weeks that Mr. Roosevelt might
tour the country this summer, al
though he has given no personal indi
cation of such a course.
Political interests would not have to
be the announced purpose. Any na
tional tour would give him oppor
tunity to express favor for his chosen
candidates in train platform speeches
and friendly visits and in many other
ways.
Senator Norris said the President
“can either take the stump—by radio
—and tell the people that those who
have opposed him ought to be de
feated or he can be partisan and say
that all Democrats ought to be re
elected "
Would Face Defeat.
Should Mr. Roosevelt follow the
latter method, he said, he would face !
defeat on major issues in the next
Congress.
"If I were the President,” Senator
Norris added, “I would go on the
radio and say that a whole lot of
Democrats had been elected on my
platform and had turned reactionary,
and that these Democrats, aligned
with Republicans, had succeeded in
defeating some of my program and in
modifying some.
“Then I would say that if the peo
ple believed in my program they
should elect a Congress that believes
in it. regardless of whether it is j
Democratic, Republican, Progressive !
or Socialist. If the people were op- *
posed to the program they could vote ;
against the candidates that support it. j
"But we ought not to let men creep
in under party label and then thwart j
the President’s program.”
Mr. Roosevelt disregarded party
labels in Senator Norris' own case—
during the X936 election. The veteran
Nebraskan ran for re-election as an
independent with the President's ac
tive support.
MONTH-LONG DROUGHT
HITS ENGLAND’S CROPS
_ I
Widespread Drying Up of Water
Reserves Creates J'ear for
the Harvest.
By ih-’ Associated Press.
LONDON, May 9.—A stubborn
drought, unbroken in some sections
for more than a month, has hit Eng
land's crops and livestock, and has
dried up water reserves over a wide
area.
The ministry of agriculture, fearing
for the harvest, today ordered in
spectors in every county to make a
detailed report within 10 days.
The year’s yield of wheat, barley,
oats, potatoes, and root crops will be
far below average because of the dry
spell. In addition fruit crops have
been damaged extensively by frosts.
200 hunt Lost girl
Child, 4, Wanders From Picnic
Picking Wild Flowers.
BRADFORD. Pa., May 9 OP).—Na
tional Guardsmen led 200 men today
in the search for 4-year-old Marjory
West lost while picking wild flowers
in the forests near this Northwestern
Pennsylvania City
M M West, an oil field worker and
the child’s father, reported the girl
wandered from a family picnic Sun
day.
WITH PRESIDENT
District’s Slum Clearance
Problems Discussed at
White House.
By NELSON M. SHEPARD.
Losing no time after President
Roosevelt’s return from the South,
Administrator Nathan Straus of the
United States Housing Authority went
to the White House this morning to
discuss housing matters with the
Chief Executive, and. it was believed,
to lay before him the District's own
muddled slum clearance problem.
In doing so, he stole a march on
John Ihlder. executive officer of the
Alley Dwelling Authority, who is
charged by Mr. Straus with obstruct
ing a proposed $10,000,000 housing
project for Washington. Mr. Ihlder,
whose views on proposed amendments
differ with those of the Federal ad
ministrator. also is anxious to get to
the Presidential ear. His appointment,
however, is not until tomorrow morn
ing.
Meanivhile, John Locher, president
of the Central Labor Union and ex
ecutive secretary of the Buildings
Trade Council, expressed hope that the
two housing officials would be able to
reconcile their views. He said he
favored the start of a large low-rent
housing program in Washington if it
would not deprive the Alley Dwelling
Authority of any of its rights.
Will Leave Tonight.
Mr. Straus is leaving Washington
for Youngstown. Ohio, where he is to 1
take part tomorrow in inaugurating a \
housing project in that city under the '
Nation-wide program. Unless he is i
able to discuss matters with the Presi- !
dent today, he might not be able* to
get another appointment until later
in the week.
It was at President Roosevelt's di
rection that he sent proposed amend
ments to the Alley Dwelling Authority
on April 7. Since then. Mr. Straus
charged, he has no further word from
the A. D. A.
There was a possibility of President
Roosevelt taking a hand directly in :
the matter to end a deadlock over
local housing problems.
Watches Situation Closely.
Mr. Locher is watching develop
ments in this situation very closely.
"Of course, the Building Trades
Council is anxious for Washington to
share on an equal basis with other
cities in the national slum-clearance
program,” he said. “In saying that I
have no criticism to make of Mr.
Ihlder. The Alley Dwelling Authority
has been doing a splendid work in
Washington and I have no fstult to
find with it.”
On the other hand. Mr. Locher
pointed out, he said he believed the
two housing officials concerned should
get together and reconcile their dif
ferences in policy.
“Understand.” he said, “we do not
want anything done that would take
away the independence of the Alley
Dwelling Authority or deprive it of
the right to continue its own special
program which has served a useful
purpose for three years. But if the
U. S. H. A. project can be carried out
here as a supplemental program I see
no reason why Washington shouldn't
be on the same basis as other cities.”
Mr. Locher agreed that a $10,000,
000 housing project would be a great
benefit to the Washington building
trades from a labor viewpoint.
Complained of Delay.
With Congress to adjourn shortly,
Administrator Straus sought to bring
the issue into the open Saturday when
he wrote Mr. Ihlder to complain about
the delay on pending amendments. He
afco invited an immediate conference.
The A. D. A. official, however, indi
cated then that he firs$ desired to dis
cuss the amendments with the Presi
dent and would do so before he would
agree to meet with Mr. Straus.
Summary of Today's Star
Page. Page.
Amusements B-16 Radio _B-U
Comics B-14-15 Short Story. B-It
Editorials .. A-8 Society _ .. B-3
Finance A-15 Sports, A-12-13-14
Lost & Found B-ll Woman’s
Obituary ... A-10 Page _B-10
FOREIGN.
Hirota Aids Move lor U. S.-Japanese
Non-Aggression Pact. Page A-l
Franco-British realism in peril in
League move. Page A-l
Japanese claim two drives advance
south ol Suchow. Page A-3
Church leaders meet in Holland lor
world union. Page A-3
Hitler will conclude visit to Rome
today. Page A-4
Castellon draws bombs' sting with big
underground reluges. Page A-4
Rebels push onward in spite ol
rain. * Page A-4
NATIONAL.
President urged to take stump against
loes. Page A-l
President calls wage-hour bill con
ference. Page A-I
President, back from trip, plunges into
work. Page A-2
WASHINGTON AND VICINITY.
36 per cent decrease in street car pas
sengers cited at hearing. Page B-l
D. C. revenue bill goes to White House
^ for signature. Page 4f-1
FINANCIAL.
U. S. bonds improve (table). Page A-15
Steel rate down. Page A-15
Stocks sell oft (table). Page A-16
Curb irregular (table). Page A-17
Curtiss-Wright net jumps. Page A-17
Lumber activity gains. Page A-17
EDITORIAL AND COMMENT.
Editorials. Page A-S
This and That. ' Page A-8
Washington Observations. Page A-8
Answers to Questions. Page A-8
The Capital Parade. * Page A-9
David Lawrence. Page A-9
Dorothy* Thompson. Page A-9
Canstantine Brown. Page A-9
Lemuel Parton. Page A-9
SPORTS.
Victories in tight games indicate
Nats possess class. PageA-12.
Cubs fail to slow pace of league
leading Giants Page A-12.
Lawrin’s Derby win fails to clear 3
year-old turf situation. PageA-13
Entries maintain high standard for
Chevy Chase golf tourney. Page A-14.
MISCELLANY.
City News in Brief. Page B-2
Nature’s Children. Page B-6
Vital Statistics. Page A-lo
Shipping News. Page B-5
Cross-word Puzzle. Page B-14
Bedtime Story. Page B-14
Letter-Out. Page B-14
Contract Bridie. PBgeB-15
D.C. TAXES BILL
RHKM1DZ
Measure Goes to Roosevelt
for Signature After
Bitter Fight.
PRIVILEGE LEVY BILLS
OFFERED IN SENATE
Byrd Would Exempt From Gross
Levy Farm Groups Formed on
Co-operative Basis.
By JAMES E. CHINN.
The 1939 District tax bill, designed
to raise $5,100,000 in additional reve
nue to balance the municipal budget
in the coming fiscal year, cleared its
last legislative hurdle this afternoon
and was put in shape for the signature
of President Roosevelt.
The House, by a 94-to-32 vote,
adopted the conference report on the
bill after a bitter fight which involved
chiefly Chairman Palmisano of the
District Committee and some of his
committee members.
Meanwhile, Senator Byrd. Democrat,
of Virginia introduced two bills in the
Senate to amend the business privilege
tax. One would exempt from the
gross receipts levy farm groups or
ganized on a co-operative basis, with
out capital stock, for the purpose of
marketing the products of their mem
bers or other producers. The second
bill would exempt from the $10 busi
ness privilege license fee any person
whose deliveries are not made from a
fixed location within the District, j
They were referred to the District
Committee for study.
conference Report Fought.
Representative Palmisano fought
hard against adoption of the confer
ence report. He wanted to kill the
revenue bill and thus force the Com
missioners to raise the real estate tax
rate to $1.90 in the new fiscal year
to raise sufficient revenue to keep the
municipal government out of the red.
The bill, in final form, provides for
continuation of the existing $1.75 real
estate tax rate. It also provide* for
continuation for another year of the
existing business privilege tax on gross
receipts on a modified scale, and a 1
local tax of 50 cents a barrel on beer. !
Representative Bigelow of Ohio and
Tarver of Georgia, both Democrats,
aided Mr. Palmisano in his battle
against approval of the report. But
they failed to muster sufficient sup
fort to overwhelm the forces in chargj
of Representative Nichols, Democrat,
of Oklahoma, and Dlrksen. Republic
an. of Illinois, both members of the
District Committee.
“Double-Cross” Charged.
Mr. Palmisano told the House the !
business men of Washington had
"double-crossed" his committee in ■
urging the Senate to write in the bill!
a provision for a modified business
privilege tax to raise the $2,000,000 in
additional revenue which would be
lost as a result of the failure of the
House to approve the proposed in
come tax.
"Not one man who lives in the
District or elsewhere supported the
business privilege tax during the hear
ings before our Fiscal Affairs Sub
committee” he declared. "But the
very minute an income tax was
written in the bill, the same men who
opposed the business privilege tax
asked for it instead of an income tax.
"Let's turn down this report and
say to the Commissioners: Study and
work a little more and come back
here next year with a proper tax bill.”
$40,000 Overhead Alleged.
Representative Bigelow argued that
collection of the business privilege tax
would cost the District $40,000 in
overhead expenses, whereas collection
of an additional real estate tax would
be negligible. He aiso declared an
increase in the real estate tax would
not force the people of Washington
to pay a rate higher than is in effect
in most cities of comparable size.
“I can’t understand,” he said, “the
love of members of this House for
the landlords of this city.”
Representative Arnold, Democrat, of
Illinois, a member of the District Com
mittee, explained that while the real
estate tax rate seems low in Washing
ton, the valuation in most cases is far
above the market price.
“I am opposed to real estate bear
ing all of the tax burden," he declared.
Representative Nichols opened ide
bate on the conference report by
pointing out the death of the tax bill
would place the burden of raising suffi
cient revenue to balance the budget on
property owners.
SHORE PROGRAM'
ASKED BY LEAHY
Chief of Naval Operations Urges
House Group to Approve
$28,000,000 Project.
By the Associated Press.
Admiral William D. Leahy, chief of
naval operations, asked the House
Naval Committee today to approve a
$28,000,000 shore construction pro
gram to keep an expanding fleet ready
for battle.
The program includes fleet mainte
nance, $9,610,000; aeronautical re
quirements, $8,047,000; ordnance de
pots, $2,483,500; supply facilities,
$530,000; hospital facilities, $800,000;
radio stations, $122,500; training, edu
cation, welfare and housing, $7,158,
000.
The construction would be carried
on on both seacoasts and in Alaska
and Pacific insular possessions.
Admiral Leahy told the committee
developments ashore have not kept
pace with increases in the fleet and
“we have now reached a point where
the efficiency of the striking forces
afloat and in the air will soon be
seriously Impaired by the absence
of shore facilities.” ^
iWONT TOLERATE
\ DICTATORS^
Medical Jury Urges Operation
For Infant Victim of Tumor
Council of 10 Decides Immediate
Treatment Best After Family Gives
Responsibility to Group.
By the A.*.*ociated Pres*.
CHICAGO. May 9.—A council of medical specialists decided today an
immediate operation should be performed on Baby Helaine Colan, whose
parents faced the dilemma of letting her live in at least partial blindness
or die eventually of a cancerous tumor.
The baby’s left eye was removed immediately afterward in a 15-minute
operation in the Garfield Park Hospital which climaxed the tedious and
ponderous deliberations on the infant’s fate.
The decision was announced by Attorney Samuel Hoffman, spokesman
for the family, after the medical experts met ir. secret conference with the
infant s father Dr. Herman Colan. <
30, a dentist.
Attorney Hoffman said the council
recommended the operation be per-,
formed on the left eye to arrest the
glioma threatening Helaine’s life,
The eye, brain and X-ray specialists
had gathered to relieve the parents of
the responsibility of deciding the wisest
course for their child.
Attorney Hoffman said, the vote for
the operation was unanimous. Even
the father, he said, unconsciously
raised his hand when the motion was
put by Dr. Irving Cutter, dean of
Northwestern University's Medical
School and committee chairman.
Quickly, when the details were
completed, Mr. Hoffman said, Dr. Rob
ert H. Goode of Garfield Park Hospital,
already familiar with the case, was
named to operate, in the presence of
all other members of the council.
The left eye and optic nerves were
removed and entrusted to Dr. Ed
ward V. L. Brown for study. A
committee of eight specialists in x-ray
therapy was named to examine Helaine
after the operation and determine a
course of treatment for the right eye.
Dr. Henry Coutard, formerly of
Paris and now associated with the Chi
cago Tumor Clinic, was among those
named to this committee.
Attorney Hoffman said Dr. Colan
cried in tension as the decision was
reached. It was ratified by two rabbis,
whose presence was demanded by the
baby's mother, Estelle. 23. They were
Saul Silber, head of the Chicago He
brew Theological College, and A. E.
Abramowitz. of Congregation B'Nai
Israel. Rabbi Samuel Cohen of NeW'
York, executive director of the United
Synagogues of America, had been in
vited to attend, but was not present.
Accept Decision.
The distraught parents. Dr. Her
man Colan, 30, a dentist, and his wife,
Estelle, 23. agreed to place the case in
the committee's hands after a dra
matic five-hour family consultation.
The jury of 10 physicians—eye,
brain and X-ray specialists and two
rabbis—met this morning at the Gar
field Park Community Hospital, where
the 5-week-old infant is confined.
The disease has already claimed
the sight of the baby’s left eye and
impaired that of her right eye. One
specialist suggested an operation to
remove both eyes in a desperate at
tempt to halt the deadly growth. Such
a course would leave her blind for
life.
Dr. Irving S. Cutter, dean of the
Northwestern University Medical
School, presided as chairman.
Dr. Hershman said the family had
received many letters from persons
willing to sacrifice one or both eyes
so the baby might be saved from
blindness.
"There is no hope in our case of
transplanting an eye,” he said. “Sight
is lost irrevocably after Ihe optic nerve
is severed, which is necessary in He
laine’s condition.”
Nine specialists were named orig
inally to the council, after a family
conference which lasted for five hours,
and a tenth. Dr. Paul Schmidt, was
(See BABY,”Page A-5:)
ACTRESS QUITS SUIT
June O’Dea Abandons Her Action
Against Lefty Gomez.
NEW YORK, May 9 <*>),—Pretty
June O’Dea, actress wife of Vernon
(Lefty) Gomez, Yankee pitcher, with
drew her separation suit against him
today.
She received, said her attorney, a
"lump cash settlement," the amount
of which was not announced. Gomez
also withdrew a counter claim for
separation.
Mrs. Gomez had accused the baseball
star of cruelty and desertion. She
has been receiving 175 a week tem
porary alimony. The attorneys would
not discuss the plans of the couple or
any possible change in the alimony
arrangement.
Withdrawal of the two actions fol
i lowed an extended conference of the
1 attorneys with Supreme Court Justice
Aaron J. Levy in chamber*
Non-Aggression Is Desirable
Condition for Nations,
He Declares.
BACKGROUND—
Japan and United States have
been at bitter odds at various
times during former's war on
China, particularly as result of
Japanese sinking of the gunboat
Panay and three United States
oil vessels in the Yangtze River
December 12. Japan recently paid
more than two million dollars in
settlement of American claims
arising out of the attack.
By the /.sscciated Press.
TOKIO, May 9.—Foreign Minister
Kokl Hirota, interviewed today by the
Associated Press, said that fear of the
United States worried “not a few” Jap
anese and posed the question of a non
aggression pact.
“Non-aggression is a desirable condi
tion to exist between nations,” he said
in comment on rumors that Japan was
preparing to discuss such a treaty with
the Washington Government.
Discussing anti-Japanese sentiment
in the United States and mutual fears
of the two nations, he said at one
point in the interview that "the ques
tion is whether the United States Gov
ernment have the intention to conclude
a non-aggression pact with Japan.”
He went no further on the subject
of a treaty, but praised the Washing
ton Government for its “well balanced
policy” with respect to the war in
China fend said he expected an early
disappearance of anti-Japanism among
what he termed a “small section of the
American population.”
Comments on Woodring.
In a full press conference later, th^
soft-spoken, smiling statesman com
mented on a speech in Washington
last week in which Secretary of War
Woodring declared aggression by au
thoritarian nations threatened to pro
voke widespread war. But that speech,
the suave Hirota said, was “merely
an expression of personal opinion.”
In his talk with the Associated Press
correspondents the foreign minister dis
avowed any Japanese intention of in
terfering in the Philippines, the United
States’ Far Eastern outpost.
“Japan considers herself in no posi
, (See HIROTA, :Page-A-3J
When House Also Adopts
Conference Report It Will
Go to President.
B» the Associated Press.
The Senate gave its final approval
today to the compromise tax revision
bill.
The flve-billion-dollar measure,
which its sponsors contend, will en
courage business expansion and melt
frozen capital, now goes to the House.
When that body adopts the agreement
reached in conference between the two
chambers, the bulky bill will be ready
for President Roosevelt’s signature.
Senate approval was given after
only a few minutes of debate. There
was a voice vote. No negative votes
were heard.
Drafted by a conference committee
to reconcile differences between sepa
rate Senate and House measures, the
bill would retain for two years a modi
fied version of the undistributed profits
tax.
President Indorsed Principle.
This taxation principle, originally
rejected by the Senate, was written
into the bill after President Roosevelt
had indorsed it in a letter to the con
ference committee.
The compromise measure also would
overhaul the existing capital gains tax
structure, substituting a system of flat
rates for the present graduated scale.
Prompt House approval is expected,
and Senate leaders said the revenue
bill may go to the White House this
week.
Senator Borah, Republican, of Idaho
previously had said he would oppose
the compromise bill because it omits
legislation to make Federal securities
taxable.
Stricken Out Before.
Senator Borah pointed out that
amendments to eliminate tax-exempt
securities twice had been stricken
from tax bills by conference commit
tees. The first case occurred three
years ago, the second applies to the
pending bill.
“The President has said he wants
these tax-exempt securities elim
inated," said Mr. Borah, who had suc
ceeded in having the Senate insert
such a provision. “We had a chance to
do something immediately, but the
conferees have killed that chance.”
Chairman Harrison, Democrat, of
Mississippi, of the Senate Finance
Committee, replied that the conferees
had eliminated the Borah amendment
on the insistence of the House. They
also believed, he said, that the whole
question of making State and Federal
securities taxable should be consid
ered in one separate measure.
Amendment Question.
Senator Harrison declined to indi
cate whether he believed a constitu
tional amendment would be necessary
to accomplish this. Mr. Borah has
contended that it would be necessary
to amend the Constitution to permit
taxation of returns from State securi
ties, but that taxation of Federal se
curities could be accomplished by leg
islation.
The tax bill, designed to raise $5,
330.000,000 in revenue, would revise
downward present taxes on capital
gains.
Move to Call League Assembly
Perils Anglo-French ‘Realism?
Bj the Associated Press.
GENEVA, May 9.—The unexpected
growth of a movement to call the
League of Nations Assembly into ses
sion ahead of schedule threatened to
day to wreck the French-British
“realistic” policy of opening the way
for recognition of Italy's conquest of
Ethiopia. This would seriously delay
an essential part of French-British
rapprochement with Italy.
Both British Foreign Secretary Vis
count Halifax and French Foreign
Minister Georges Bonnet, in private
talks with other dilegates in connec
tion with today’s opening of the 101st
session of the League Council urged
them to speed action to free League
members to recognize Italian sover
eignty over .Haile Selassie’s old do
main.
Lord Halifax and M. Bonnet wanted
public discussion of their "do-as-you
please” proposal to start tomorrow
if possible. ]
A campaign to call the full League
membership into sc^ion was reported
being actively pushed for different
reasons by Colombia, Chile and Mex
ico, encouraged by Soviet Russia,
China, New Zealand and Bolivia,
members of the 14-member council.
Halifax’s and Bonnet’s spokesmen
indicated the British and French
statesmen were confident of success
if their proposal could be threshed out
promptly in the Council. But they
feared delay if the Assembly, already
scheduled to meet September 5, were
asked to deal with the question.
The latest French-British plan was
said to be simply for each member
of the Council to make a declaration
regarding Italian recognition without
a vote—the same procedure as used
when the Council “decided" in 1935
that Italy was an aggressor.
The reported arrival of Aga Khan,
president of the Assembly, strength
ened the belief that the larger group
might be called into session ahead of
its regular meeting.
Disposition of the recognition Issue
(See LBAOtJ^ Fage A-5.)
ON PAY MEASURE
Introduces Resolution to
Waive Rules to Permit
Early Consideration.
LEADERS TALK OVER
BILL WITH PRESIDENT
Bankhead Convinced House Will
Pass Proposals Without
Major Amendments.
_ *
BACKGROUND —
House approval of the revised
wage and hour bill was' virtually .
assured last week, when 218 mem
bers signed petition to force meas
ure out of Rules Committee, which
had prevented action earlier this
session after bill had passed Senate.
Indorsement of American Federa
tion of Labor and smashing
primary victory of Florida's Senator
Pepper, wage-hour bill advocate,
contributed materially to success
of the bill’s supporters in the House.
By (hr Associated Press.
Chairman O’Connor of the Rules
Committee proposed today that the
House expedite action on the contro
verted wage-hour bill.
The House has signed up a petition
to force action on the legislation, but
under existing rules it cannot come
up before May 23.
Representative O’Connor introduced
a resolution to waive the rules and
permit the petition to be called up
at any time.
He said that if the House leader
ship desired to advance the date of
consideration, he would "make every
effort to prevail upon a majority of
the Committee on Rules to report
out the resolution,” waiving the rules.
Speaker Bankhead said:
"Of course, the President is very
anxious to get the bill passed before
we adjourn.”
Mr. Bankhead and other congres
sional leaders had conferred with the
President earlier on the legislation
program.
The Speaker said he did not look for
any additional emergency legislation
at this session unless it was some
measure dealing with the plight of the
railroads.
Convinced Measure to Pass.
; Mr. Bankhead said he was convinced
the House would pass the wage-hour
| bill, probably without any substantial
1 amendments.
He told his press conference he
thought there would be no "inordi
nate delay” in adjournment of Con
gress, but that the date probably
would depend on the Senate’s action
on the wage-hour bill.
Bank holding company legislation,
the Speaker asserted, “seems to be
rather definitely postponed by the ac
tion of the Senate Banking Commit
tee.” which refused to consider it at
the current session.
He said monopoly legislation and
reciprocal taxation by the States and
Federal Government of one another's
securities were in the same category.
The Presideht's legislative confer
ence was attended by Speaker Bank
head, House Democratic Leader Ray
burn. Vice President Garner and Sen
ate Majority Leader Barkley.
Representative Rayburn said the
conferees went into the whole con
gressional situation.
The new relief-public works pro
gram. the subject of separate confer
ences at the White House in the
forenoon by the President, Secretary
Ickes, Relief Director Hopkins. Budget
Director Bell and House Appropria
tion Committee leaders, will be brought
(See WAGE BILL, Page A-5.)
WAMPLERS ARE FREED
ON BOND IN SLAYING
$3,000 Set for Former Lawyer
and $1,000 for Wife in
Adams Death J3ase.
Special Dispatch to The Star.
LA PLATA. Md., May 9.—Mr. and
Mrs. T. Morris Wampler, held in jail
here since last Tuesday on charges
of murdering Charles Adams, 65-year
old ‘ handyman” at their Fenwick
estate, today were granted their lib
erty under bond pending action by
the Charles County grand jury.
Circuit Court Judge Walter Mitchell
fixed bond for Wampler, 54, former
Washington attorney, who served an
18-month Federal prison sentence on
income tax charges four years ago. at
$3,000. and for his wife Wyvil, 32, at
$1,000.
The judge acted after a hearing on
a habeas corpus petition filed by Jo
seph Turco, Washington attorney, and
John Mudd, local lawyer, represent
ing the Wamplers.
There was no action on behalf of
Alan Buck, 26-year-old writer of chil
dren’s stories and neighbor of the
Wamplers, accused jointly with them
of killing Mr. Adams during a drink
ing party at the Wampler home on
April 29.
MALONE TO ASK PARDON
Ex-Head of Illinois Tax Board to
Appeal to President.
CHICAGO, May 9 William
H. Malone, former chairman of the
Illinois Tax Commission, who is under
sentence of two years in prison and
a $5,000 fine for income tax evasion,
said he planned to leave today for
Washington to ask President Roose
velt for a pardon.
Malone will be accompanied by his
wife, son, three grandchildren and a
party of friends.
The Seventh Circuit Court of Ap
peals affirmed Malone’s conviction on
a charge of evading $59,590 in taxes
in 1929 and 1930, and the United
States Supreme Court refused to re
view the decision!

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