Evening star. [volume], November 18, 1938, Page A-2, Image 2

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

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Anglo-American Pact
Is Signed Affecting
$2,000(C:3,000 Trade
Concessions on 2,250
Products Given in
White House Rite
Summary of Anglo-American Trade
Agreement, Page B-15.
Lu>t of Major Concessions in
Agreement, Pages B-17 and IS.
BACKGROUND—
The principle of freer flow of
international trade by reciprocal
lowering of tariff barriers has
been a chief tenet of New Deal
policy. Its most ardent advocate,
Secretary of State Hull, preaches
trade accords as instruments of
peace as tvell as of internal
prosperity. The lessening of world
tension last year after a strained
period was credited by many to
Mr. Hull's trade accord program.
The pacts are possible under a
New Deal act enabling the Presi
dent to adjust tariffs up or down
by 50■'» of the duty on any com
modity.
By tfie Associated Press.
The three greatest merchant na
tions—Great Britain. Canada and
the United States—offered one an
other far-reaching tariff reductions
today in the expressed hope of in
creasing foreign trade and thereby
preserving world peace.
Historic commercial agreements.
Riving concessions on more than
2.250 products, were signed late yes
terday in the mirrored east room
Of the White House.
Prime Minister MacKenzie King
of Canada and Sir Ronald Lindsay,
British Ambassador, joined Secre
tary of State Hull in predicting that
better international understanding
and co-operation would result.
But from some quarters came as
sertions that the agreements would
place certain American producers
In an unfair competitive position.
Govs. Aiken of Vermont and Bar
rows of Maine, both Republicans,
declared that the tariff concessions
discriminated against New England.
John D. Battle, executive secretary
Of the National Coal Association.
Bald the industry's hopes for sub
stantial relief from the Canadian
tariff barriers against American coal
had not been realized.
Hailed as Aid to Trade.
On the other hand, Thomas J.
Watson, president of the Interna
tional Chamber of Commerce, called
the documents "timely aid to in
ternational trade." Kenneth J.
Campbell of the National Asso
ciation of Credit Men. asserted that
commerce with the United King- 1
dom should increase both in vol
ume and value.
Federal officials estimated that be
tween $1,500,000,000 and $2,000,000 - j
000 in trade is directly or indi- '
.Tectlv affected by the two agree- I
ments. which bring the total such
accords to 19.
The principal concessions received
fey the United States from Great
Britain were on agricultural prod- |
ucts. All customs duties on Amer
ican wheat, lard, canned grapefruit;
and some fruit juices were removed;
duties on rice, apples, pears and
some canned fruits were substan- ;
tially reduced: the quota on Amer- j
lean hams was increased; duties on
ham and some other pork products,
com and cotton were "bound," that j
is. guaranted to remain at the pres
ent rate.
The removal of the 6-cents-a- i
bushel duty on American wheat,
officials said, should prove a boon 1
to American railroads, ports and
shipping. Canadian wheat, which
formerly had to move from a Can
adian port in order to enjoy prefer
ential treatment, now can go out
through American ports.
Broadens Farm Markets.
Experts of the Agriculture De
partment said that in general the
treaties should broaden the market
for American farm products, but
would not solve the problem of
Wheat and cotton surpluses.
The United Kingdom gave the
United States concessions on a
variety of manufactured products,
including office and electrical ma
chinery and appliances, automobiles,
chemicals and silk stockings.
In return the United States gave
Britain substantial concessions aver
aging 25 per cent duty reductions
on textiles, whether of cotton, flax,
hemp. Jute or w-ool. The duty on
whisky, which is Britain's largest
export to the United States, was
“bound" at $2 50 a gallon. Britain
also got concessions on leather and
leather manufactures and pottery’.
In some cases concessions made
by or to the United States were
balanced by concessions in the agree
ment with Canada. This was the
reason for signing both agreements
at the same time.
Canada made her major tariff
cuts on American fruits and vege- ]
tables, fish, paper, wood, chemicals,
heavy iron and steel products, ma
chinery, aircraft and engines and
textiles. She also eliminated the
3 per cent special import tax hith
erto imposed on all the items men
tioned in the agreement.
Extended to Most Nations.
United States concessions to Can
ada centered in live cattle, hogs
and pork products, cheese, eggs,
grains, other than wheat; grain by
products. maple sugar, potatoes, fish,
acetic acid, brick, nickel, aluminum,
zinc, cadmium, cast-iron products,
paper and s?lver-fox furs.
All the tariff concessions made
by the United States in the two
treaties are extended automatically
to all countries enjoying "most
favored-nation treatment” here. Vir
tually the only country not enjoy
ing it is Germany, owing to her
discrimination against American
products.
On products in which Britain and
Germany tend to compete in the
American market Germany now will
find it more difficult to face British
competition, because she must still
pay the old duties imposed by the
Smoot-Hawley tariff of 1930.
After signing the trade treaty,
Secretary Hull and Ambassador
Lindsay of Great Britain exchanged
notes guaranteeing sympathetic con
sideration to representations either
nation might make regarding access
to the other's raw materials. Officials
regarded this as significant in case
of wartime need of primary ma
terials.
Reverses a British Trend.
Proponents said the Anglo-Ameri
can commercial agreement, high
point of Secretary Hull's reciprocal
trade program, disclosed three out
standing facts:
1. It reverses the British trend
toward protectionism. Britain began
I
SIGNING HISTORIC TREATIES—Shown at the White House
yesterday as they signed the reciprocal trade agreements
between the United States, Great Britain and Canada are,
seated, left to right; Sir Ronald Lindsay, British Ambas
sador; President Roosevelt, Prime Minister Mackenzie King of
to impose protective tariffs during
and after the World War and greatly
increased them in the last six years.
2. It cuts appreciably into the
Ottawa preferential agreement of
1932 which tended to link Britain
and her dominions in a closer eco
nomic unit and to shut certain
American goods from British mar
kets.
3. It opens the world-flung co
lonial empire to United States trade. I
At present the United States buys
more than four times as much from
the colonies as she sells, the total
trade with them averaging $400,
000.000 a year.
The British and Canadian agree
ments go into effect January 1 for
a three-year period and may con
tinue in force indefinitely there
after, subject to termination by
either government on six months'
notice.
Includes 50 Colonies.
The agreement with the United
Kingdom includes Northern Ireland.
Newfoundland and more than 50
British colonies. American nego
tiators hope to complete the picture
of commerce with the British Empire
by opening discussions with the do
minions of Australia. New Zealand
and the Union of South Africa and
the Indian Empire.
In the agreements the State De
partment said care had "been taken
to avoid the possibility of material
hardship for any important group
of producers in the United States."
"Many of the industries which
may encounter increased British
competition in the domestic market
as the result of this agreement have
profited or will profit from conces
sions obtained for their export ar
ticles in foreign markets through
other trade agreements, notably ;
with Canada." the department said.
"Moreover, all of them will share
in the indirect benefits which come
to every American industry from
the general expansion of agricultural
and industrial exports under the
trade agreements program.”
Old Table Brought Out.
The pacts were signed in an elabo
rate setting. An old walnut table,
used as a cabinet table in every
administration from that of Abra
ham Lincoln to that of Theodore
Roosevelt, was taken from its stor- I
for the occasion.
Behind it sat President Roosevelt
in a tall carved oak chair. At his
right was Ambassador Lindsay, at
his left Mackenzie King. Secretary
Hull sat at one end of the table and
A. E. Overton of the British trade
delegation, which conducted the
negotiations, at the other.
Behind them were potted palms,
bowls of huge white chrysanthe
mums and the red window draperies
of the white-walled east room. Be
fore them, the cabinet, diplomats, a
few members of Congress and other
notables, a hundred or more, were
seated in a crescent of stiff gilded
chairs.
Secretary Hull signed first, The
Canadian treaty was passed to Mr.
King for his signature and the Brit
ish treaty to Sir Ronald.
Arlington School
Dedication Tomorrow
The new Walter Reed Elementary
School in Highland Park, Arlington,
will be dedicated tomorrow night at
exercises at which Commonwealth’s
Attorney Lawrence W. Douglas will
speak.
An address of welcome will be de
livered by O. J. Le Prevost, president
of the Highland Park Citizens’ As
sociation. John M. Stewart, chair
man of the County School Board,
will present the school to the com
munity and the acceptance will be
by Mrs. James R. Williams, chair
man of the School Committee of
the citizens’ association.
England Buys
False Teeth
In America
By the Associated Press.
Here are some of the odd trade
facts disclosed In the new trade
treaties with Great Britain and
Canada:
The United States sells Great
Britain more than a million dollars
worth of false teeth yearly.
The United States cut its duty
on Canadian Christmas trees in
half; virtually all imported trees
come from Canada.
Air conditioning hasn't reached or
isn’t needed in the British Isles.
The United States sold only $127,000
of such equipment there last year.
The United Kingdom buys four
fifths of the total American exports
of oysters. Duty was cut in half
by the new treaty.
Pecans were virtually unknown in
Europe until 1935. when American
growers crashed the British mar
ket. Americans sold 1150.000 worth
of pecans to Britain this year.
Canada, Secretary of State Hull. Standing, left to right:
Francis B. Sayre, Assistant Secretary of State; Sir Herbert
Marler, Canadian Minister; Dr. O. D. Skelton, undersecretary
of state for external affairs of Canada; Charles Barnes of the
State Department. —Associated Press Photo.
Text of Japanese Note
By the Associated Press.
TOKIO, Nov. 18 —The text of the
Japanese note replying to the
United States protest on China,
handed today to Ambassador Jo
seph C. Grew by Foreign Minister
Hachiro Arita, follows:
Excellency:
I have the honor to acknowledge
receipt of your excellency's note,
dated October 6, addressed to the
minister of foreign affairs. Prince
Fumimaro Konoye. concerning the
rights and interests of the United
States in China.
In the note are cited various in
stances based on information in
possession of the Government of the
United States that Japanese au
thorities are subjecting American
citizens in China to discriminatory
treatment and are violating the in
terests of the United States.
I now have the honor to state
hereunder the opinions of the Japa
nese government regarding these in
stances.
Firstly, the circumstances which
led to adoption of the present meas
ures concerning export exchange in
Tsingtao and the present situation
being, so far as the Japanese gov
ernment are aw^re. as set forth I
below, they consider that these !
measures cannot be construed as
constituting any discrimination
against American citizens.
Federal Reserve Established.
A short time ago the Federal Re
serve Bank of China was established
in North China, whose notes with
an exchange value fixed at 1 shill
ing and 2 pence (about 28 cents'
against 1 yuan have been issued
thus far to an amount of more
than 100,000.000 yuan and are wide- i
ly circulated. These bank notes be- 1
ing compulsory’ currency of the pro
visional government, maintenance
of their value and smooth circu
lation is regarded as an indispen
sable basis for the conduct and
development of economic activities
in North China. Consequently the
Japanese government have taken a
co-operative attitude: and all Japa
nese subjects are using said notes
and in their export trade exchang
ing them at a rate of 1 shilling
and 2 pence.
On the other hand, the old fapi.
still circulating in these areas, has
depreciated in exchange value to
about 8 pence 06 cents) to the
yuan. Consequently, those engaged
in export trade who use this cur
rency are enjoying illegitimate
profits as compared to those who
use Federal Reserve notes and carry
on legitimate transactions at the
legitimate rate of exchange: That
is to say, Japanese subjects who
use Federal Reserves notes have
been suffering unreasonable disad
vantages compared to persons who,
while residing and carrying on their
business in areas under the jurisdic
tion of the provisional government
of North China, nevertheless use ;
the old fapi exclusively.
Furthermore, the existence of the
before-mentioned disparity in the
exchange value between the new
notes and the old fapi, which the .
Federal Reserve Bank has been ex
changing at the rate not far below,
is bound to exert an unfavorable
effect upon the exchange value of
the Japanese yen.
Cannot Remain Indifferent.
The Japanese government feel it
is Incumbent on them not to remain
indifferent to such a situation.
* Export exchange measures as
adopted at Tsingtao are calculated
to place users of the old Chinese
currency, who have been obtaining
unfair profits, on an equal footing
with those using Federal Reserve
notes.
Inasmuch as application of the
measures makes no differentiation
according to nationality, they can
not be considered discriminatory
measures. As a matter of fact, it is
through these measures that those
users of Federal Reserve notes who
had in a sense been discriminated
against have been placed on equal
footing with others and thus enabled
to compete on a fair basis.
Secondly, in North and Central
China new Chinese regimes some
time ago effected revisions of the
customs tariff in an attempt to se
cure rational modification of the
former tariff enforced by the Kuo
mintang government, which was
unduly high and ill-calculated to
promote economic recovery and the
general welfare of the Chinese peo
ple.
However, the schedule actually
approved for the time being is the
one approved by the powers in 1931,
so that no complaint has been heard
from foreign residents of any na
tiortality on the spot. The Japanese
government is, of course, in favor of
the purpose of said revision, believ
ing it will serve to promote effective
ly the trade of all countries with
China.
Development a Necessity.
Thirdly, as for organization of
certain promotion companies in
China, restoration and development
of China's economic, financial and
industrial life after the present af
fair is a matter of urgent necessity
for the welfare of the Chinese.
Moreover, the Japanese govern
ment is deeply solicitous for the
early inauguration and progress of
work having for its object this
restoration development, for the sake
of realization of a new order in East
Asia, and are doing all in their power
in that direction. The North China
Development Co. and Central China
Development Co. were established
with a view to giving China neces
sary assistance toward said restora
tion and also with the aim of con
tributing toward the development of
China's natural resources. It is far
from the thoughts of the Japanese
government to impair the rights and
interests of American citizens in
China or discriminate against their
enterprises.
The Japanese government, there
fore. do not oppose, but heartily wel
come. participation of third powers
on the basis of the new situation
which has arisen.
Tele-communication companies in
North and Central China and the in
land navigation steamship com
pany at Shanghai and the wharfage
company at Tsingto also have been
established to meet the imperative
need of an early restoration of com
munications. transportation and
harbor facilities.
Denies Discrimination.
With the exception of tele-com
munication enterprises which, be
cause of its obvious relation to the
maintenance of peace and order and
to national defense, as well as be
cause of its public character, has
been placed in the hands of special
companies, all these enterprises are
turned over to concerns that are or
dinary Chinese or Japanese juridical
persons, without any intention of
allowing them to reap monopolistic
profits by discriminating against
America or any other power.
As regards the wool trade, while
control of purchasing agencies was
enforced for a time in the Mongo
lian region, it since has been dis
continued.
There is no plan at present of any
sort for establishing a tobacco mo
nopoly.
Fourthly, concerning the return of
American citizens to occupied areas,
your excellency is aware that in
North China there is no restriction,
excepting very special cases where
the personal safety of those who re
turn would be endangered, while in
the Yangtze alley large numbers of
Americans have already returned.
The reason that permission to return
not yet has been made general
is, as has repeatedly been commu
nicated to Your Excellency, due to
danger that persists because of im
perfect restoration of order and also
to the impossibility of admitting na
tionals of a third power on account
of strategic necessities such as the
preservation of military' secrets.
Minimum Regulations.
Again, the various restrictions en
forced in the occupied areas con
cerning residence, travel, enterprise
and trade of American citizens con
stitute the minimum regulations
consistent with military necessities
and local conditions of peace and
order.
It is the intention of the Japanese
government to restore the situation
to normal as soon as circumstances
permit.
The Japanese government is sur
prised at the allegation that there
exists a fundamental difference be
tween the treatment accorded Jap
anese in America and the treat
ment accorded Americans in Japan.
While it is true that in these
days of emergency Americans resid
ing in this country are subject to
various economic restrictions, yet
these are, needless to say, restric
tions imposed not upon Americans
alone but also on all foreigners of
all nationalities as well as upon
subjects of Japan. I beg to re
serve for another occasion a state
ment of views of the Japanese
government concerning the treat
ment of Japanese subjects, referred
to in your excellency's note.
As has been explained above, the
Japanese government, with every
intention of fully respecting Ameri
can rights and interests in China,
have been doing all that could pos
sibly be done in that behalf.
However, since there are at pre
ent in China military operations on
a scale unprecedented in our history,
it may well be recognized by the
Government of the United States
that it is unavoidable that these
military operations should occasion
ally present obstacles to giving full
effect to our intention or respecting
the rights and interests of American
citizens.
Establishing New Order,
Japan at present is devoting her
energy to establishment of a new
order based on genuine interna
tional justice throughout East Asia,
attainment of which end is not only
an indispensable condition of the
very existence of Japan, but also
constitutes the very foundation of
enduring peace and stability in East
Asia.
It is the firm conviction of the
Japanese government that in face
of the new situation, fast develop
ing in East Asia, any attempt to
apply to the conditions of today and
tomorrow inapplicable ideas and
principles of the put would neither
contribute toward establishment of
I
Warring
(Continued From First Page.)_
the nature of the protection, what it
consisted of?" the justice pressed.
"I don't think we did," Mr. Swain
answered. "The protection in itself
indicated to me what it was."
Mr. Swain described one interview
with Charles <Rags> Warring while
he was confined in the Atlanta
penitentiary for implication in the
O'Brien gang shooting, but the wit
ness was not allowed to specify the
location of this conversation beyond
stating the fact that it occurred in
Atlanta. This was threshed out be
tween the attorneys and the court
while the jury was excluded. When
the jury returned the witness simply
said, he talked to "Rags" in Atlanta.
Didn't Know Income.
Mr. Swain said:
"Charles made the statement that
he did not know whether we were
income tax people or not, and I
endeavored to convince him that we
were what we represented ourselves
to be. He stated that he didn t
have any money at the time this
numbers business was started. I re
call also that he told me to see his
brother. Emmitt. who was the busi
ness manager, about the income.
Charles didn't give me any idea of
what the income was. and said he
didn't know. He could not even give
me an estimate, he said."
Mr. Swain described an interview
with Leo Warring on May 11, 1937,
at the office of the intelligence unit.
He said Leo denied having put any
money in the business, explaining
thRt he'd none to put in.
"Leo Warring." Mr. Swain said,
“told me at the time he and his
brother went into the numbers busi
ness he had been taking some bets
on the horse races, but had lost sev
eral thousand dollars bookmaking
and had reimbursed himself from
the numbers business."
Mr. Swain said he had understood
from Leo and others that "the War
rings had the reputation of paying
off when they lost money.”
The Government introduced evi
dence that the Warrings purchased
a number of automobiles from time
to time. It is part of the prosecu
tion's case to try to show that their
expenditures exceeded their declared
Incomes.
Warring Repeats Bribe Claim.
At another point in his testimony
Mr. Swain said on one occasion
Emmitt Warring told him he didn’t
remember having informed Govern
ment men that he was paying pro
tection. but if he had said that, he
would stick by it, for it was true.
Mr. Swain said he asked Emmitt if
this protection had been around $400
a month in 1935 and Emmitt said
that probably was right. The Fed
eral agent said he asked Warring
if it was double that amount in 1936
and Emmitt said he didn't think it
was that much.
“Did you go into any details with
him regarding this protection
money?” Justice Laws asked.
The witness said he did not.
“Did you ask him to whom the
money was paid?” Justice Laws
asked.
"I don’t think I did,” Mr. Swain
said.
“Did you ask him if he had any
records concerning this protection
money?” Justice Laws pursued.
“No. I didn’t.”
“It didn't figure in any tax sched
ule?” the justice inquired.
“No,” the agent said, "but it did
figure in the income for 1935.”
“You took the figure of $400 which
he had mentioned?”
"Yes, we did, Mr. swain said.
William H. P. Swain, special agent
of the Treasury Department's in
telligence unit, identified a photo
stat of certain slips which he said
Emmitt had identified as recording
withdrawals from the safe by him
self and his brothers, Leo and
"Rags.” Whenever they needed
money the agent explained, they
would take it out of the safe and
leave a slip recording who took it
and the amount. One of the slips
which had . been photographed
showed that Emmitt had withdrawn
$1,900 at one time. At this point
Justice Laws asked the witness:
“Did the defendant tell you
whether this $1,900 or any of the
other sums was for salaries, com
missions, living expenses or if any
of it was used for this so-called pro
tection?”
“I don’t recall that he explained
what any of the money was used
for,” Mr. Swain said.
Bookkeeping by Slips.
“If it were withdrawn for salaries
or commissions,” Justice Laws sug
gested, “it would be reflected by
a real peace in East Asia nor solve
immediate issues.
However, as long as these points
are understood, Japan has not the
slightest inclination to oppose par
ticipation of the United States and
other powers in the great work of
reconstructing East Asia along
lines of industry and trade; and I
believe the new regimes now being
formed In China are prepared to
welcome such foreign participation.
A
Daladier's Party
Sharply Split on
Drastic Program
Ex-Premier Blum Warns
Against Attempt at
Dictatorship
BACKGROUND—
As result of Czechoslovak crisis,
in which French armament and
financial weaknesses appeared,
Premier Daladier was given
power by Parliament to rule by
decree until November 15. Before
expiration of authority M.
Daladier issued 32 decrees and
he has been reported planning to
rule without chamber of deputies
if ratification is withheld.
Bj the Associated Pres*.
PARIS, Nov. 14 —A split developed
today among Premier Daladier’s own j
supporters in the Chamber of Depu
ties over the drastic new govern
ment economic program which
brought a warning from former
Premier Leon Blum against attempt
ing to set up a dictatorship in
France.
Respite the Premier’s personal ap
peal for a unanimous vote of ap
proval, 9 of the 112 Deputies of
the middle-of-the-road Radical-So
cialist party at a meeting called by
the Premier voted against him and
31 others abstained from voting.
Unanimous approval was voted,
however, for France’s “lack of racial
prejudice” and for opposition to
cession of any French colony to
Germany.
The split over the “three-year
plan' for rebuilding France's finances
was believed to have added a new
item to mounting difficulties M.
Daladier's government faces in its
new decree laws, although a large
majority voted confidence in the
program and appealed to all French
people to support it in a spirit of
"freely consented discipline. ’
Deputies called the resolution on
racial prejudice an indirect slap at
Germany through comparison.
“France, a country exempt from
racial prejudice,” it said in part,
“has considerably bettered the ma
terial. intellectual and moral situa
tion of the people which it has taken
in charge.”
way of credit on the income, would
it not?”
“I presume so.” the Federal agent •
replied.
Mr. Swain said Emmitt had
brought in only a few of these slips
while his income tax was under in
vestigation. The witness recalled
that on one occasion the numbers
operator brought a few of these slips
and a number of miscellaneous re
ceipts for expenditure in two paper
bags.
The witness said: ‘T asked him iif
he had kept the rest of the slips
showing withdrawal from the safe,
and he said he had not.”
In 1938. with his gross business
soaring above the million-dollar
mark, according to the books which
his attorneys have brought into
court, Emmitt decided to pay his
"pick-up” man an additional 5 per
cent a week as a bonus, according to
the Federal agent's testimony.
Discrepancies Claimed.
Mr. Swain, going over the Govern
ment's photostatic copies of the War
ring books, revealed what he said
were many discrepancies in figures
shown in the books and those arrived
at by Government accountants.
There was one difference of approxi
mately $2,000 in the “hit'' column for
one day.
There was a flurry of laughter at
one point, when United States Attor
ney David A. Pine asked the witness
about one withdrawal slip shown on
the Government's photographs of
receipts. Mr. Swain said this item
was "Pine, $50."
William B. O'Connell, personal
attorney for the Warrings, asked.
"Did he say Pine?"
“No, not Pine," the District attor
ney retorted.
With an adding machine beside
the witness stand, the Government,,
delving into the intricate finances
of the Warring numbers business,
tried to show that the brothers and
their tax accountants. Gordon L. R.
Sadur and Henry L. Shee Sherr, had
concealed the $250 a week protec
tion money under the loss column
and then tried to deny having done
so.
William H. F. Swain, special agent
of the Intelligence Unit, Treasury
Department, who went to the wit
ness stand late yesterday and re
sumed his testimony today, de
scribed in more detail the assertions
of Gordon L. R. Sadur, tax account
ant. and his junior partner, Henry
L. Sherr regarding "protection.”
Tells of Conversation.
“Emmitt Warring,” Mr. Swain re
called, “had told us he paid $13,000
that year for protection. When
Sadur came into our office to discuss
the Warrings’ income tax, I asked
him about the protection. He said
that was taken care of—we would
just add $13,000 to the gross profits
and also to the expenses, which
would leave the returns the same.
I told Sadur we would add the
$13,000 to the gross profits, but not
to the expenses because it was not
an allowable deduction. He disputed
that. He then picked up a red pen
cil and wrote in the item, with the
word ‘pro’ by it.”
On a later day, Mr. Swain testi
fied, he and other agents went to
Sadur’s offices in the Investment
Building and interviewed Sherr.
The Federal agent added:
“Sherr said the protection money
was taken care of. He said he had
taken it upon himself to add $250
to the ‘lose’ column on the Warrings’
books each week. He said when he
called the item to Sadur's attention,
Sadur said that wasn't the way to
handle the matter, and Sadur then,
in their office, wrote in the red fig
ures on the profit and expense col
umns.”
Mr. Swain said he determined for
himself that the $250 had been
added to the losses on the books.
He had made an analysis of the
winnings and losses, he explained,
and determined the figure was added
arbitrarily.
Sherr signed an affidavit, attest
ing to the statement attributed to
him by Mr. Swain and another
Federal agent, and the document
was introduced in evidence.
Mr. Swain said at the time he
was first assigned to investigate the
Warrings’ income tax, he was prob
ing the returns of some of the
Warring pickup men, but that “has
nothing to do with this mm.”
0
W. P. A. Worker
Gives His Life
To Save His Son
Ei the Associated Presa. ,
INDIANAPOLIS, Nov. 18 —
Robert Branham, 38, Works
Progress Administration work
er, gave his life here last night
for that of his 10-year-old son,
Robert, jr.
A n electric interburban
caught them on a 160-foot-long
trestle over Eagle Creek as they
crossed to hunt. Mr. Branham
seized the boy, raced ahead
and. Just before the car struck,
held his son over the edge.
The father was killed on a
stone abutment 40 feet below.
The boy fell, too, but was only
bruised.
Japan's Warplanes
Raid Sian, Capital
Of Shensi Province
Destruction of Many
Chinese Government
Buildings Reported
By the Associated Press.
SHANGHAI, Nov. 18. — Flying
through snow and intense anti-air
craft fire, four squadrons of Japanese
warplanes today raided Sian, capital
of Shensi Province, in Northwest
China.
The Japanese reported the de
struction of many important Chinese
government buildings. They said a
hail of bombs through the snow
blasted military and Communist
headquarters in the center of the city
and caused numerous fires.
Japan Redoubles Efforts.
During the past few days the Jap
anese have redoubled their efforts
to wipe out remnants of the Chinese
air force, bombing Sian. Lanchow
and other known airfields.
From Changsha came scattered
reports the Hunan provincial cap
ital was being destroyed rapidly by
fire, with heavy damage to Amer
ican mission property.
The Anglo-American China Inland
Mission, the Hudson Taylor Hos
pital and the American Evangelical
Mission Church, all within the
walled city, were reported destroyed.
Persons connected with the insti
tutions were said to be safe.
Yale-in-China Imperilled.
Vigorous efforts were being made
to save the huge plant of Yale-in
China. Yale University's medical
and educational outpost, from fires
set by Chinese in the face of ad
vancing Japanese forces
Japanese aerial observers reported
a general Chinese retreat was under
way along the 150-mile front be
tween Nanchang and Changsha.
Lineman Is Burned
By Electric Wires
John R. Martin. 37, of 1600 H
street S.E . an employe of the Po
tomac Electric Power Co., was badly
burned while working with high
tension wires at Second avenue and
Fenwick lane. Silver Spring, Md., to
day.
He was taken to the Washington
Sanitarium, where it was said his
condition was not serious. He was
admitted for treatment for burns
and shock, however.
Tobacco Chewers
Find Trade Pact
Wholly Academic
The man who "chaws ter
baccy" will find little over which
to ruminate happily in the new
British-American trade agree
ment.
The negotiations left tariffs
virtually untouched on:
Tobacco.
False teeth.
Spittoons.
Republicans on T.V.A.
Probe Hit Opening
Of Tax Returns
Charge It Involves a
Dangerous Precedent
Involving Rights
By the Associated Press.
Two Republican members of the
T. V. A. Investigating Committee
criticized vigorously today an execu
tive order of President Roosevelt
opening income tax returns to com
mittee scrutiny.
Representatives Wolverton, Re
publican, of New Jersey and Jenkins,
Republican, of Ohio clashed with
Chairman Donahey. Democrat, of
Ohio over the action of Francis
Biddle, committee counsel, in ob
taining the order.
They contended it involved a"
"dangerous precedent.’’ tending to
ward invasion of the rights of pri
vate citizens.
Senator Donahey retorted that he
approved the action of the counsel, ^
taken without full committee con
sent.
"I think it is perfectly proper,” .
Mr. Donahey shouted, “that these ''I
utilities be brought in here and
made to show anything this com
mittee w'ants them to show.’’
Salary Top of $10,000.
In proceedings just before the dis
pute the committee had heard a
statement that one of the reasons
T. V. A. power can be sold at com
paratively low rates was that the
Authority had a top salary limit of
$10 000 a year.
This explanation came from Fran
cis Biddle, committee counsel dis
puting cost estimates offered by Ed
ward L. Moreland, a utility witness.
Mr. Moreland had predicted that
T. V. A. would spend $1,000,000 a
year on administrative expenses
alone after the 11-dam program is
completed. He contended that oper
ation of T. V. A. at its “yardstick
rates” would result in a deficit of
more than $10,000,000 annually.
He and Mr. Biddle wrangled at
length on how depreciation, interest
and tax costs should be figured.
Mr. Moreland, under a brisk cross
examination, said at one point:
“I don't care whether this deficit
is $9,000,000 or $10,000,000. The thing
that matters to me as a taxpayer is
that there is a large deficit.’’
Seek Depreciation Figures.
Mr. Biddle earlier had said the
committee would examine electric
utility income tax returns only to
obtain depreciation figures used by
the Tennessee Electric Power Co.
President Roosevelt gave the com
mittee access to the tax files in an
executive order this week.
The depreciation figures. Mr. Bid
dle said, will be used in questioning
Wendell Willkie. head of Common
wealth <fe Southern Corp. Mr. Will
kie will be asked about negotiations
for sale of the Tennessee company's
electrical department to the T. V.
A. and municipalities.
Stalemate Is Reached.
The negotiations reached a stale* V
mate when Mr. Willkie failed to 1
agree with the T. V. A.'s estimate ■
of approximately $23,000,000 depre- ■
ciation on properties originally
costing about $81,000,000. Mr. Will
kie contended this depreciation was
too high.
Controversy arose in the commit
tee yesterday over Mr. Moreland's
estimate that T. V. A. depreciation
on power houses and power facilities
would average 1.94 per cent a year
and that the depreciation on the re
mainder of the investment would be
.76 per cent a year.
Suggests Change in Figure.
Mr. Biddle suggested that a change
of .9 per cent in these figures, which
he indicated he thought was pos
sible. represented the difference be
tween profit and loss in actual op
eration of the T. V. A.
Mr. Moreland told the committee
he believed it was unfair to fix a
"yardstick'' for power rates on the
basis of T. V. A.'s operation, because
of the amount of "guessing'' which
, he said would be involved.
Mr. Moreland said T. V. A. rates
must be increased 43 per cent to
assure taxpayers the return of their
: eventual investment in the public
I power project.
Weather Report
District of Columbia—Rain tonight and tomorrow; lowest temperature
tonight about 60 degrees; much colder tomorrow afternoon and night;
Sunday fair; moderate southerly winds, becoming fresh northwest or north
tomorrow.
Maryland and Virginia—Rain tonight and tomorrow, possibly chang
ing to snow flurries tomorrow afternoon in extreme west portions; slightly
warmer tonight; much colder tomorrow afternoon and night; Sunday fair
and continued cold.
' West Virginia—Rain and colder tonight: tomorrow cloudy and much
colder; probably rain changing to snow flurries.
The disturbance that was central over1
the Texas Panhandle Thursday morning
has moved east-northeastward to the Ohio
Valley and the Lower Lake region. Hayes
ville Ohio. *J9.5H inches, and a broad
trough extends thence southwestward to
the mouth of the Rio Grande. Little Rock.
Ark . :!!U»4 inches, and Brownsville. Tex..
to inches. A broad trough extends
northward from the Lower Lake region to
Northern Hudson Bay where the northern
disturbance is still centered. Chesterfield.
District of Keewatin. *_’!». 18 inches An
other disturbance is moving east-southeast
ward over Southeastern Alaska. British Co
lumbia. and Alberta. Juneau. Alaska. -9.80
inches. Pressure is high over the Western
half of the United States. Elko. Nev\.
80.58 inches, and over the Western Atlan
tic Ocean. S S. Bremen, about ftoo miles
east-southeast ot Cape Race. Newfoundland.
80.59 inches. There have been rains in
New England, the Lake region, the Great
Central Valleys and in portions of the
Wes» Gulf States, the Southern Plains
States and the North Pacific States, and
light snow fell in portions of the Rocky
Mountain region. The temperature has
risen almost generally east of the Missis
sippi River, while colder weather has over
spread Minnesota, the Plains States and
the Rockv Mountain and Plateau regions.
Report for Lost 21 Hours.
Temperature. Bar'eter.
Yesterday— Degrees. Inches.
4 p.m_ 59 -9.9 <
8 p.m.___ 57 30.03
Midnight _ 54 30.04
T°4aaTm. „.. 55 2990
8 a m._ 57 20.99
Noon _ 70 29.90
Record for Last *4 Hours.
(Prom noon yesterday to noon today.)
Highest, 70. noon today. Year ago, 43.
Lowest. 54. 1:30 am. today. Year
ago. 36.
Record Temperatures This Year.
Highest, 98. on August 15.
Lowest, 18, on January 28.
Humidity for Last 21 Hours.
(Prom noon yesterday to noon todaY)
Highest. 98 per cent, at 9:3 a m. today.
Lowest. 60 per cent, at 4:30 p.m. yes
terday.
IHm Resort.
Potomac and Shenandoah Rivers clear
at Hamers Ferry: Potomac slithtly muddy
at Great Falls today
Tide Tables.
(Furnished by United States Coast and
Geodetic Survey.)
Today. Tomorrow.
HMth - 4:50 a.m. 5:44 a.m.
Low -11:32 a.m. 12:08a.m.
Hilth- 5:22 p.m. 6:11 p.m.
Low- - 12:2* p.m.
The Son and Moen.
„ Rises. Sets.
Sun. today , 6:54 4 53
awn. tomorrow_ 6:55 4:53
won. today . ... 3:25 ajn. 2 50 p.m.
/Automobile llthts must be turned on
one-halt hour after sunset.
ft
Precipitation.
Monthly precipitation tn inches In the
Capital (current month to riatet.
JR3S. Avz. Record
January __ 2 64 3.55 7. S3 37
February __ 2.37 3 27 6 S4 S4
March _ 2 2.3 3.75 S.S4 £>]
April _ 1 H7 3.27 R 13 SR
Mav_ 3.51 3.70 10.RR SR
June _ 2.26 4 13 10R4 no
July _ 5.06 4.71 10.63 'SR
August _ 4.64 4.01 14.4 1 '2S
September _ 4.27 3 24 17 45 '34
October _ 1.15 2.S4 SSI .37
November _ 9K 2.37 S.RR 'SR
December _ . 3.32 7.5R '01
Weather in Various Cities.
Temp. Rain
Barom.High Low. fall. Weather.
Abilene . _ 10.oh 86 46 Clear
Albany 10.02 54 14 __ Foggy
Atlanta 1o.no 74 56 Cloudy
Atl. City 10.06 62 54 0.01 Cloudy
Baltimore 10.no 62 50 Cloudy
Birm'gham 20.02 78 66 Cloudy
Bismarck 10.04 18 18 Clear
Boston . 10.12 54 18 0.12 Rain
Buffalo 20.74 54 48 0.08 Rain
Charleston 10.12 70 66 Clear
Chicago 20 74 56 44 Cloudy
Cincinnati. 20.70 68 56 1.66 Ra.n
Cleveland. 20.60 62 52 0.26 Rain
Columbia. 10.10 68 62 Foggy
Denver __ 10.14 4 8 2 2 0.04 Clear
Detroit __ 29 64 58 44 0.52 Rain
El Paso _ 10.22 72 42 _ Clear
Galveston. 20.78 76 72 _ . Cloudy
Helena 10,18 18 14 Cloudy
Huron . 10.24 50 J8 Clear
Indi'apolis 29,64 64 54 1.40 Rain
Jacks'nvill* 10.10 82 68 _ Clear
Kans. City 10.02 66 42 _ Cloudy
L. Angeles 10.18 76 60 Clesr
Louisville 29 74 70 58 0.06 Rain
Miami . 30.08 82 78 _ Clear
Mpls-St.P 30.10 48 26 _ Clear
N. Orleans 29.90 82 70 Cloudy
New York 10 06 56 48 0.01 Cloudy
Okla. City 10.00 74 44 _ _ Cloudy
Omaha 10.16 50 10 _ Clear
Philad'ohla ln.04 56 44 _ Foggy
Phoenix 10.22 74 42 Clear
Pittsburgh 29.76 60 60 0.24 Cloudy
Portl'nd. M. 10.16 48 ._ Foggy
Portl'nd.O. 10.42 62 18 ... Cloudy
Raleigh ._ 10.04 64 60 Cloudy
St. Louis 29.72 64 50 1.16 Cloudy
S. Lake C. 10.48 42 26 .... Clear
S. Antonio 29 84 86 62 ... Clear
San Diego 10.04 68 54 _ Clear
S. Fr'cisco 10.16 74 58 _ Clear
Seattle . 10.10 52 44 ... Cloudy
Spokane.. 10.28 48 40 Cloudy
Tampa . 10.08 82 68 _ Cloudy
WASH..D C. 29.98 59 54 - Cloudy
FOREIGN STATION*.
(7 a m.. Greenwich time, today.)
Temperature. Weather.
London. England- .*><• Cloudy
Paris. Franc#_ *2 Ctoudy
Vienna. Austria- 41 Cloudy
Berlin. Germany_ *•? Cloudy
Brest France - -}4 Cloudy
Zurich. Switzerland — 41 Cloudy
Stockholm. Sweden •»'- Jroggy
Gibraltar. Spain «1 Cloudy
(Noon. Greenwich time, today.)
Horta (Fayal). Aaeres SS Cloudy
(Current observation*.)
SI. Georges. Bermuda 70 Clear
San Juan. Puerto Rico go Cloudy
Havana. Cuba - 70 Clear
Colon. Canal Zone—- 74 Clear
A s M