Evening star. [volume], December 19, 1938, Image 1

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

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Closing New York Markets, Page 20.
————
First in Washington—
First in the new* coverage that
build* public confidence—Flrat in
circulation and advertising that
reflect public confidence.
(*>) Maana Aaaociatad Praaa.
8'•xU W V T? O 1 Entered as second class matter
I 111 1 Tj AI\« -lN O* Oi,JUJ, post office, Washington, D. C.
WASHINGTON, D, C., MONDAY, DECEMBER 19, 1938—FORTY PAGES. **
THREE CENTS.
Spain Mediation
Plan Killed by
Lima Conferees
Parley Is Nearer
Action Upon
Solidarity
‘BACKGROUND—
United States and Argentina
have been opposed at Pan-Amer
ican Conference at Lima, Peru,
over question of a continental
declaration against aggression.
United States ivants context
aimed at non-American powers
who might be aggressors. Ar
gentina, fearing future reversal
of U. S. policies, does not want
potential American aggressors
excluded.
(Text of Landon’s Speech—
Page A-9.)
By th« Associated Press.
LIMA, Peru, Dec. 19.—The Eighth
Pan-American Conference's Steer
ing Committee today killed a Cuban
proposal for mediation by American
republics in the Spanish civil war
by a vote of 18 to 3.
The Cuban project would have
sought an immediate armistice, after
which American nations, chiefly
the Spanish-speaking states, would
have offered mediation.
Chief objection was that the plan
constituted an attempt to involve
the Western Hemisphere in the
affairs of Europe at a time when
the conference was seeking means
of keeping European hands off
purely American problems. Only
Haiti and Mexico voted with Cuba
for the proposal.
Nearer Action on Solidarity.
The conference moved nearer
action on the issue of continental
solidarity and defense when it was
announced that the Brazilian dele
gation, headed by cx-Foreign Min
ister Afranio de Mello Franco, had
completed its formula for such
action.
Informed persons said that Mello
Franco's draft included a declara
- tlon that the signatories would hold
themselves ready to defend the
American Continent against expan
sionist designs of non-American
powers and proclaimed again the
American doctrine that lack of raw
materials, excess population or other
Mich pretexts do not confer rights
on nations to acquire the territory
of others.
In case of any aggression against
r.n American state the signatories
would agree to combine immediately
_ in a common defense.
It was understood that Secretary
of State Hull and Chief Argentine
Delegate Isidoro Ruiz Moreno, rep
resenting somewhat conflicting
United States and Argentine stands,
both believed that a solidarity reso
lution would be voted this week
which would be stronger than any
action taken by the 1936 conference
at Buenos Aires.
Monroe Doctrine Stressed.
Nevertheless Argentine - United
States differences continued to claim
attention of delegates, some of whom
expressed belief that ex-Gov. Alf M.
Landon's speech of last night em
phasizing the Monroe Doctrine was
Highly distasteful to the Argentines.
A few hours after the speech,
however. Riuz Moreno declared:
"We already have smoothed out
some differences and I am sure a
complete accord will be reached.’’
Argentina has been fighting the
• United States on the matter of
continental solidarity ever since the
conference opened.
She refuses to approve any pact
against aggression or any strong
declaration that applies only to
"outside aggression." claiming" that
the United States is a potential
threat to Latin American nations
because they have no assurances
President Roosevelt's "good neigh
bor" policy would continue under a
' different regime.
No Assurances From Landon.
The Argentine delegates were
quick to point out that Mr. Landon.
the Republican presidential nominee
in 1936. did not give such assurances,
but that he did give assurances that
the United States would continue
the Monroe Doctrine which Argen
tina despises.
Mr. Landon spoke in a world-wide
broadcast last night. The speech
w as delivered outside the conference
nail, but it was generally agreed it
would have a definite effect on the
. conference itself.
He declared that the people of
ihe Americas were "horrified and
shocked' by the "incredible brutal
ity" of the world on "both sides of
ns," asserting that the United States,
regardless of the party in power in
(See LIMA, Page A-4.)
Missing Girl Sought;
Abduction Feared
By the Associated Press.
KINGSTON. Pa.. Dec. 19 — Penn
sylvania State police have broadcast
an appeal for assistance in locating
Margaret Martin. 20. pretty daughter
of a Luzerne County Democratic
committeeman, who they believe was
abducted Saturday.
Maj. William A. Clark of the;
. Wyoming police barracks said tha
girl had not been seen since she left
her home to meet a man who had
telephoned earlier offering her a job
as a stenographer in an insurance
office.
A check with a Wilkes-Barre busi
ness college, he said, revealed that
the college had recommended Miss
Martin to a man for employment. •
His identity was not known.
No one has been found who saw
Miss Martin after site left her home.
-.
Timely Pick-up
LOGAN. W. Va.. Dec. 19 i/P*.—A
customer in a State liquor store here
spied a package atop a lighted stove
and handed it to the clerk in the
belief some one had left his pur- i
chase. Inside the package—appar- j
entlv left by a forgetful miner—were 1
found seven sticks of dynamite. i
m
Mrs. Roosevelt Defends Family
On Activity in Private Business
Says Only Ethical Thing Demanded
Is to Refrain From Profiting by Favors
Responding for the first time to the criticisms of herself and her
children for engaging in private business, Mrs. Franklin D. Roosevelt
said today the people of the United States should think about a Presi
dent's family when they elect a man to the White House.
She said she wondered if voters realize members of the President’s
family have to go on with their normal life during the limited period of
a presidential term.
Even though limited, she added,
the presidential term is long enough
to ruin the lives of young people
if they are ordered to lead a com
pletedly restricted existence.
If she had given iJp all private
j interests she had pursued for years
j before her husband was elected
President, her whole life and her
relationship with her family would
have been completely altered, she
declared.
She predicted if the people of the
United States demand that a Presi
dent's wife relinquish all her former
ties when her husband is elected to
the presidency, some day a Presi
dents wife will refuse to enter the
White House.
She pointed out that when a man
is elected to the presidency, the
voters don't give the rest of his
family a job.
Her comments were made at her
regular press conference when a
reporter questioned her about recent
news concerning her acceptance of
a place on the board of directors of
an insurance company as successor
to her son, James Roosevelt.
Refrain From Special Favors.
Granting that the only ethical
thing to do as a member of the
White House family was to refrain
from profiting from special favors,
she declared that putting restric
tions on what the President's fam
ily could do might in the end be
reduced to ridiculous terms.
President Will Urge
Social Security
Act Extension
Special Message to Ask
Stronger Measure,
Greater Coverage
BACKGROUND—
Study of proposed changes in
the old-age insurance section
of the Social Security Act uias
undertaken 18 months ago by the
Social Security Advisory Council,
in co-operation with the Social
Security Board, at the direction
of the Senate Finance Commit
tee. Largely responsible was the
dispute over the huge reserve
fund being cerated under the
law. and estimated to reach.
S47,000.000.000 by 1980, opponents
calling for a reduction.
By the Associated Press.
President Roosevelt intends to ask
Congress early in January to extend
and strengthen the Social Security
Act.
White House officials said today
the Chief Executive Intended to send
a special message "relative to the
extension of coverage and the
strengthening of provisions of the
Social Security Act."
Presumably the message will
transmit to Congress a copy of the
report carrying recommendations of
the Social Security Advisory Council.
The council has just made public
recommendations that the insurance
coverage be widely extended.
White House officials said possibly
national defense also would be the
subject for a special message, but
that has not yet been determined.
There were indications also that Mr.
Roosevelt might embrace railroad
recommendations in his general
message.
To Submit Program.
The Social Security Board was
described by officials as ready to
parallel—at least in fundamentals—
the recommendations of its Advisory
Council for broad extensions of the
old-age pension system.
The board will submit to the
President next month a detailed
program for expansion of the Social
Security Act. Its details have not
been disclosed.
The Advisory Council proposed
last night that insurance coverage
be extended by 1940 to about 8.C00 -
000 workers now excluded, and later
to "the largest possible prooortion
of our gainfully employed popula
tion." including business and pro
fessional men. farmers and me
chanics.
Included also among those sug
gested as subjects of study for future
coverage were self-employed per
sons and Government employes.
Family Protection Urged.
Advocating the principle of pro
tection for “the family unit." the
council proposed benefits for the
wives, widows and children of in
sured workers and-also creation of a
(See SOCIAL SECURITY. Pg'X-15.)
Vatican Denies
Reports Pope
Had Relapse
B> the Associated Press.
VATICAN CITY. Dec. 19—Un
usual exertion undergone by Pope
Pius yesterday caused circulation
today of rumors, which were quickly
and authoritatively denied, that he
had suffered a setback in the cardiac
condition from which he suffers.
A Vatican news service and other
reliable sources said the 81-vear-old
pontiff today felt better than on
most days since the setback he suf
fered November 25. and which for a
time caused anxiety concerning his
recovery.
However, some private sources said
the Holy Father had passed a rest
less night after his 45-minute dis
course of yesterday and was some
what weaker.
Pope Pius yesterday braved cold
and rainy weather to preside over
and address the opening of the third
academic year of the Pontifical
Academy of Science.
1
*
She demanded to know if the
voters expected her children not to
look for jobs and expected her sud
denly to be entirely dependent on
her husband, giving up all her other
interests.
Explaining her acceptance of the
insurance company position, she
said that some time ago her son
had told her he was resigning from
the board of the company because
it was generally felt he should not
have his interest divided between
j two concerns. .
j He wanted to have somebody rep
i resent his interests on the board,
j she said, though he was not active
in the company and simply owned
some stock. She was assured, she
; said, that no knowledge of the
business was necessary and that
j she would incur no financial obliga
: tion.
Her son told her, she added, that
all she would have to do would be
1 to attend board meetings occasion- ;
! ally. She said he would not have
j asked her to represent him had he i
I not assumed she would be able to 1
! understand the financial statements !
and vote his stock should a vote
arise.
She will not receive any money
j for her connection with the com
| panv, she explained, nor will she
I actively participate in the com
j pany's business. Meetings are held
I every three months, she added.
! REPRESENTATIVE GAMBRILL.
Representative Stephen W. j
Gambrill 65 years old. Democrat,
of Maryland, dropped dead as a
result of a heart attack about
2:30 this afternoon at the office
of Dr. George Calver, attending
physician for members of Con
gress.
Mr. Gambrill was first stricken |
in his office in the new House
Office Building and after calling |
Dr. Calver is reported to have
had a second attack after reach- j
ing the medical office in the Cap
itol Building. Mrs. Gambrill is
said to have been outside of the
mediral office at the time of his
death.
Japan Warns (J. S.
Of Peril in Lending
China $25,000, C J
Political Gesture Will
Prolong War, Says
Foreign Minister
BACKGROUND—
Last week is was revealed Ex
port-Import Bank here approved,
a loan of $25,000,000 to the
Chinese government of Gen.
Chiang Kai-Shek. American in
terest in China on side of Na
tionalist government and preser
vation of "open door" policy.
By the Associated Press.
TOKIO. Dec. 19.—Foreign Minis
ter Hachiro Arita today declared the
$25,000,000 loan granted China by
the United States Export-Import
Bank “would be a very dangerous
political gesture."
“The loan necessarily will lead to
prolongation of the (Chinese-Jap
anese) conflict and naturally tc the
inconvenience of third powers."
Arita asserted at his first press con
ference since induction into office
October 29.
He termed the loan, granted by
the American Government agency
last week, “an inopportune and re
grettable act on the part of the
United States which thus far has
acted with understanding.”
“If. as the United States press re
ports, it is a political gesture on the
part of the United States against
Japan. I think that would be a verv
dangerous political gesture," the for
eign minister asserted.
“Japan may regard the loan as
really intended as a form of eco
nomic pressure by a powerful eco
nomic unit. It would prove quite
contrary to what is expected by the
United States.” •
In response to a question, however,
Arita said he was “rather inclined
not to regard it as a political
gesture." But he asserted that “at
least the Japanese people undoubt
edly will find in it new grounds for
strengthening the proposed new
order in East Asia” through which
the Japanese have indicated their
intention of linking Japan. China
and Manchukuo in an economic
and political bloc.
Arita declined to comment on the
speech made November 28 by Lt.
Gen. Eiki Tojo. then vice minister
of war, saying war with Soviet Rus
sia is inevitable.
Of the 1922 pact, through which
tSee JAPAN, Page A-4.)
A
Lawyer Swears
Musica Drew
Arms Cdntract
Suicide-Swindler
Also Is Branded
Biggest Bootlegger
By the Associated Press.
NEW YORK, Dec. 19,—A Boston
lawyer swore today he drafted, at
the behest of F. Donald Coster
Philip Musicia, a contract for the
purchase of Lee-Enfield rifles by
McKesson & Robbins, Inc., and
Standard Oil of England.
The lawyer, Frederic Wingersky,
made his statement to Assistant
State Attorney General Ambrose
V. McCall, conducting an inquiry
into the affairs of the $87,000,000
corporation. Coster-Musica com
mitted suicide Friday when he was
exposed as a notorious swindler of
a quarter century ago.
Declared Liquor Dealer.
At the same time Brien McMahon,
Assistant United States Attorney
General, arriving from Washing
ton, described Coster-Musica as
probably “the biggest illicit liquor
dealer in the country.”
Mr. McMahon came here to co
ordinate the investigations of Fed- j
eral agencies interested in ferreting ;
out the mystery behind Coster- 1
Musica and the $18,000,000 shortage
in the firm's crude drugs depart- I
ment which he operated.
Emphasis has been placed on the
gun-running angle by investigators
who have advanced the tentative
theory the missing assets might be
in the form of unpaid bills for ship
ments of guns and ammunition.
Coster-Musica, according to Mr.
McMahon, had connections “with
practically every big name in the
Nation's underworld.”
"There also seems to be some
indication of illegal dealing in
arms.' Mr. McMahon said, "and
the violations are probably not con
fined to the jurisdiction of New
York. There is apparent violation
also of several other laws.”
Says Brothers Equally Involved.
Mr, McMahon said the conferees,
scheduled to meet this afternoon
in the Federal Building, would dis
cuss possible violations of the in- :
come tax laws, the neutrality law
and illegal alcohol diversion.
The giree brothers of Coster
Musica. unmasked after his mas
querade was ripped away at the
opening investigations of the
swindle, are equally involved in a
conspiracy to violate the law, Mr.
McMahon said.
The brothers are George Vernard- 1
Arthur Musica. Canadian agent for |
the drag firm: George E. Dietrich-:
Musica, assistant vice president and
assistant treasurer, and Robert
Dietrich-Musica. of the firm's ship
ping department in Fairfield. Conn.
The contract for the rifles. Win
gersky said, called for their export
to a non-belligerent nation, but so
far as he knew the contract was
never consummated.
At the offices of the Standard Oil
Co. here the English company was ]
described as the Anglo-American
Oil Co.
Contract Drawn Last May.
Mr. McCall, upon hearing Win- i
gersky's statement, ordered him to
report to Acting United States At
torney Gregory F. Noonan, since
this phase of the inquiry into the .
$87,000,000 corporation, control of;
which Musica gained after changing ,
his name and hiding his criminal 1
background, was out of the State's
jurisdiction.
Wingersky said he was ordered by
Coster-Musica to draw up the con- i
tract last May.
“Mr. Coster.” said Wingersky.
"outlined the proposition, saying the
(See" MUSICA, Page A-5.)
■-• -.. —
'Pants Bandits' Rob 90
Club Members, Flee
By the Associated Press.
PITTSBURGH. Dec. 19 — Clues to '
the three young gunmen who forced
90 members of an exclusive club
to peel their pants and then frisked 1
their pockets were as scarce today :
as statements from their perturbed j
victims.
Witnesses said the trio were
masked with handkerchiefs from
nose to chin, thwarting identifica- I
tion. One member dashed down
stairs after them as they fled in a
waiting automobile, but the license
number he jotted down proved er- ;
roneous.
This isA
The Santa \
FORME!!
Lttgg&l
Elliott Vetoes Loans to 5 F. S. A.
Co-operative Hosiery Mills
Controller General Rules Projects
Are Inelligible for Relief Funds
By the Associated Press.
Richard N. Elliott, acting controller general, vetoed today Farm
Security Administration loans of $3,050,000 to five co-operative hosiery
mills.
Mr. Elliott denounced the loans as violations of the relief appro- |
priations from which the money was to come He said the projects ■
would cause industrial unemployment and would compete with cotton.
the chief produce of the Southern*
States in which the projects are
located.
The proposed loans, in each case
to co-operative associations of
homesteaders on F. S. A. homestead
projects to make silk products, in
cluded $750,000 to the Cumberland
Co-operative Co.. Cumberland
Homesteads, Tenn.: $750,000 to the
Red House <W. Va.) Association,
$750,000 to the Penderlea <N. C.)
Farms' Homesteads. $490,000 to the
Skyline (Ala i Industrial Co. and
$310,000 to the Homestead Indus
trial Co., Bankhead Farms. Ala.
F. S. A. officials, however, did
not regard the ruling as final and
said they would submit new evi
dence of the legality of the projects
in an effort to free the funds
which the Elliott ruling blocked.
The F. S. A. based its hopes on
reversing the ruling on the fact
somewhat similar loans for a gar
ment factory at the Westmoreland
Homesteads project in Pennsylvania
and a wood factory at the Tygart
Valley Homesteads in West Virginia
previously were approved by Con
troller Elliott.
Mr. Elliott's interpretation of his
powers to decide whether appro
priated funds go for the purpose
Congress intended frequently have !
caused friction with administration
agencies.
Last session's reorganization bill,
which failed, would have abolished
the office of controller general.
As for the Westmoreland and Ty- t
gart projects. Mr. Elliott said they !
received their money from earlier ,
appropriations which gave the ad
ministration more discretion in the
use of funds.
Although technically leaving the
way open for hearing new evidence
on the hosiery co-operatives, he
said:
"No showing of necessity in the
administration of the projects has
been made and it is doubtful a sat
isfactory showing could be made."
-•
|
Job Insurance Ruling
NEW YORK. Dec. 19 (/P .—The
State Labor Department has ruled
that W. P. A. employes whose work
ing hours are concentrated in one
half of a month are not entitled to
unemployment insurance for the
other half.
The department held that the W.
P. A. monthly "security wage" of
$60.50 to $98.70 was considered pay
ment for a month's employment re
gardless of how the work was dis
tributed over the period.
Summary of Today's Star
Page, i Page.
Amusements B-18 Obituary ... A-12
Comics B-16-17 Radio _A-14
Editorials _ A-10 Santa Story A-16
Financial . A-19 Sports ..A-17-18
Lost & Found I Society _ _ B-3
B-14 j Woman's Pg.B-13
Foreign.
United States loans to China peril
ous. says Japan. Page A-l
Spain mediation plan killed by Lima
parley. , Page A-l
Chamberlain urges Europe make
Reich peace partner. Page A-2
Agents for Japanese iron cargo j
checked by pickets. Page A-4
France to fight for England, says
Bonnet. Page A-4
Soviet scare used to aid big Japa
nese war budget. Page A-4
Japanese launch drive to clean up
guerrillas. Page A-4;
Rumania seeks Palestine haven for
150,000 Jews. Page A-9
National.
President to send special message
on social security. Page A-l
Grand jury told U. S. official took,
gangster's bribes. Page A-l
Controller General vetoes F. S. A.
loans to co-operatives. Page A-l
Officials seek to block new trial for
Quantrille and Milton. Page A-2
Senator Harrison urges cut in spend- j
ing to balance budget. Page A-3
Ickes derides citizens who take dic
tator's medals. Page A-S
T. V. A. investigators to ask exten
sion of time. Page A-S
i
Washington and Vicinity.
Guardsmen on scene as posse seeks
Virginia slayer. Page A-2
Three killed in traffic accidents in
D. C. and vicinity. Page B-l
Randolph silent on reports he will
head D. C. Committee. Page B-l
Editorial and Comment. r
This and That. Page A-10
Answers to Questions. Page A-10
Letters to The Star. Page A-10
David Lawrence. Page A-ll
Alsop and Kintner. Page A-ll
Frederic William Wile. Page A-ll
Jay Franklin. Page A-ll
Lemuel Parton. Page A-ll
Sports.
Redskins rated among 1938's leading
sports disappointments. Page A-17
Max Baer again key to heavyweight
boxing situation. Page A-17
Lou Nova rated at least year away
as threat to Louis. Page A-17
Georgia Hays. Davis victor, now aims
at Star tourney title. Page A-18
Miami golf win by one stroke worth
$2,500 to McSpaden. Page A-18
High rating given Galento smacks 1
of N. B. A. publicity move. Page A-18
Miscellany.
Smashing the Spy Ring. Page A-8
The Holy Terror. PageB-11
Winning Contract. Page A-14
Nature's Children. Page B-5 j
Bedtime Story. PageB-11 j
Cross-Word Puzzle. Page B-16 i
Letter-Out. Page B-1C >
Uncle Ray's Corner. Page B-17
a
New York Grand Jury
Told U. S. Official
Took Bribes
Man, Now Dead, Was
Dropped After Secret
Probe, Paper Says
By the Associated Press.
NEW YORK. Dec 19 —The New
York Post says in a copyright
story that evidence is being pre
sented to a Federal grand jury that
a high official of the United States
Department of Justice took bribes
from two once-notorious gangsters
wrhile the Government was prose
cuting them.
The official, now dead, was sus
pended. the paper says, after a
secret Government investigation.
The mobsters named were Johnny
Torrio, who created one of the first
racket empires, and the infamous
Dutch Schultz, slain by racketeers
in a Newark bar in 1935.
The paper says the grand jury
is being asked to indict a relative
of the former official, who allegedly
acted as a go-between. There was
no indication that any other official
was involved, but the investigation
was said to be incomplete regarding
the former official's activities and
that he may have dealt with "other
gangsters, with several industrial
ists who tried to evade taxes and
with a racketeering labor leader.”
The racket investigation of Dis
trict Attorney Thomas E. Dewey
and the subsequent arrest of j.
Richard (Dixie > Davis, "mouth
piece" for the Dutch Schultz and
other gangs, was said to have led
to the disclosure.
The Government was trying to
build an income tax case against
Torrio. Investigators remembered
Davis once had dealings with Torrio
and found the disbarred lawyer will
ing to talk. He related, the Post
says, that he represented Torrio in
tax matters and surprised them by
adding that he had paid bribes to
the official. The investigators, how
ever, were not sure that Davis' story
was entirely accurate.
A thorough investigation of the
official and a close check on all
cases he handled followed. More
specific information was obtained
and the official was suspended.
Strict Inquiry Ordered
In Navy Yard Fire
By the Associated Press.
NEW YORK, Dec. 19-Rear
Admiral Clark H. Woodward, com
mandant of the Brooklyn Navy Yard,
ordered a thorough inquiry today
into a fire that destroyed a two
story brick paint and oil storehouse ,
in the yard.
The flames broke out at 8 o'clock j
last night and spread a black pall
over the district. Hundreds of
sailors joined city firemen in a two
hour battle to subdue the blaze.
All entrances and exits to the yard
were barred. Marines with fixed
bayonets kept spectators at a dis- !
tance and refused to permit taking
of photographs.
It was reported that 270.000 gallons
of alcohol were destroyed. Navy ;
officials refused to discuss the origin
of the fire.
Ten warships are in the yard being !
overhauled for winter maneuvers i
next month.
Tax Query Greetings
PHILADELPHIA. Dec. 19 OPt.—
Policemen in the role of messengers
began distribution today of half a
million ‘ ballots” coupling Mayor S.
Davis Wilson's Christmas greetings
with a request that citizens signify
what new taxes they favor, if any.
The Mayor's novel “Christmas
cards." carrying wishes for “a pros
perous new year," will be collected
tomorrow and the results tabulated
Thursday by a 10-man committee.
Roosevelt to Send
Message on Health
To New Congress
Report Urging Wide
National Program
To Be Transmitted
President Roosevelt will transmit
to the new Congress with a special
message an inter - departmental
committee's report calling for estab
lishment of a comprehensive na
tional health program, it was an
nounced today.
The announcement was made by
Miss Josephine Roche, former As
sistant Secretary of the Treasury,
who is chairman of the President's
Committee to Co-ordinate Health
and Welfare Activities, after she
conferred'with Mr. Roosevelt.
“This means a lot to the 40.000.000
people who have inadequate or no
medical care,-’ Miss Roche said. Tne
report contemplates a $50,000,000 to
$65,000,000 program the first year,
with States being required to
match some of the Federal funds,
she added.
The report recommends general
extension of public health activities, j
maternal and child health services, |
medical and hospital care lor recipi
ents of public assistance, and insur
ance against wage losses.
$850,000,000 Annual Cost.
It was developed following last
summer's National Health Confer
ence here, called by the committee
at the suggestion of President
Roosevelt to discuss proposed ways
and means of putting a compre
hensive national program into ef
fect.
Oscar L. Chapman. Assistant Sec
retary of the Interior and a mem
ber of the committee, explained in
a radio address following the con
ference that a 10-year program was
projected on the principle that
about one-half of the cost would be
met by the Federal Government.
Starting with relatively small ex
penditures. he estimated annual cost
of the contemplated program to
Federal, State and local govern
ments would reach $850,000,000.
Cities where insurance plans are
considered are New York, Kansas
City. Buffalo, Detroit and Mil
waukee. The California Medical
Association approved a plan yester
day.
In addition, the Dental Society of
New York State soon will begin a
year of experiment in furnishing
dental care on a pre-payment basis.
Meanwhile, the additional grand
jury investigating organized medi
cine here resumed its sessions with j
prospects that it may come to a
conclusion soon.
The jurors have been looking into
charges by the Department of Jus
tice that the American Medical As
sociation and the District Medical
Society of the District of Columbia
have violated the Sherman Anti
Trust Act through “coercive and
boycott" tactics against Group
Health Association, Inc., of this city.
Mass of Documents.
Beginning its hearings October 17.
the jury this morning went into its
10th week with no witnesses, but ]
with a mass of documents before it.
The jury is faced with the re
sponsibility of doing one of two
things—returning criminal indict
ments for violation of the law or
voting an “ignoramus,” an official
document that would clear organ
ized medicine of the charges.
Justice James M. Proctor in Dis
trict Court specifically charged the
jury that it must do one of these
two things and that it could not
leave the matter with neither an
indictment nor an “ignoramus.”
Virtually all the health insurance
plans are similar to that proposed
by the Washington Medical Society.
Dr. William J. Mallory, president of
the organization, said" it will guar
antee members free choice of phy
sicians and will co-operate with the
present group hospitalization plans.
Only single persons earning less
than $2,000 a year or married per
sons earning less than $2,500 a year
with $200 added for each dependent,
are eligible. A single person will
pay $150 a month, a husband and
wife $250, and a family $350. The
Medical Society vote is to be re
tu-ned December 24 on whether to
go ahead to establish M. H. S.
-j-«
Suicide Certificate issued
Coroner A. Magruder MacDonald
issued a certificate of suicide yes
terday in the death of Hattie Jones.
18, of Alexandria, Va. who plunged
to death in the Potomac River from 1
a dock at the foot of Cameron street.
J
Court to Rule
On State Taxing
Of U. S. Worker
High Bench Also
Pays Tribute
To Cardozo
By the Associated Press.
The Supreme Court agreed today
to pass on litigation to test the right
of a State to collect an income tax
from employes of Federal agencies.
Dirccl.v at issue was an attempt
by New York to assess a tax against
the $2,246 salary received in 1934 by
James B. O'Keefe as attorney for
the Federal Home Owners’ Loan
Corp.
The New York Court of Appeals
ruled that the attorney was pier
forming a Federal function and his
salary could not be taxed by a State.
The Supreme Court consented to re
view this decision.
The tribunal adjourned until
Tuesday, January 3. without passing
on constitutionality of the Tennes
see Valley Authority's piower pro
gram or the right of a State to rat
ify. after rejecting, the proposed
constitutional amendment to abolish
child labor.
Tributes to the late Justice Ben
jamin N. Cardozo. who died last
July, were paid by Chief Justice
Hughes and Attorney General Cum
mings.
McRe.vnolds Absent.
Justice McReynolds was not pres
ent. He frequently is absent on
days when he has no opinion to
deliver.
n the tax case, New York of
ficials contended the assessment
would not be "an unconstitutional
burden on the Federal Govern
ment.”
The appeal was filed here a few
months after the Supreme Court
had ruled that the Federal Gov
ernment could tax the income of
employes of the New York Port
Authority.
President Roosevelt has recom
mended that the Federal Govern
ment be permitted to tax the income
of State employes and that States
be permitted to tax the income of
Federal employes. He also advo
cated reciprocal taxation of income
from Federal and State bonds.
Chief Justice Hughes, in his trib
ute to Justice Cardozo. called the
jurist "a mighty warrior for his
convictions,” in whose expert hands
the pen became a sword wielded
with devastating power.”
The Chief Justice replied to an
address by Attorney General Cum
mings. who presented a copy of reso
. lutions praising Justice Cardozo.
: They had been adopted by attor
i neys practicing before the court.
"Mr. Justice Cardozo." said the
Chief Justice, "w’as devoted to our
form of government, and to him
our constitutional guarantees of
j essential liberties constituted a
heritage to be defended at all
costs. • • •
"No judge ever came to this court
more fully equipped by learning,
acumen, dialectical skill and dis
interested purpose. He came to us
in the full maturity of his extraor
dinary intellectual power, and no
one on this bench has ever served
with more untiring industry or more
enlightened outlook. • • *
A Tniqup Personality.
"His gentleness and self-restraint,
his ineffable charm, combined with
his alertness and mental strength,
made him a unique personality.
With us who had the privilege of
daily association, there will ever
abide the precious memory not only
of the work of a great jurist but of
companionship with a beautiful
spirit, an extraordinary combination
of grace and power.”
Attorney General Cummings said
"the one passion of this gentle and
retiring mar.” was that "the courts
should never fail to use the law
to promote justice.” t
"Mr. Justice Cardozo.” he added,
"found no constitutional barrier
to prevent the enactment of legisla
tion which was compelled by the
urgent needs of an ever changing
society. • • *
j "I venture to predict that, so long «
as our common law and our Consti
' tution persist, men will pay tribute
to the memory of this shy and gen
tle scholar, whose heart was so pure
and whose mind was so bold."
Anti-Espionage Drive
Conducted by Swiss
By the A.3*eclated Pres*.
GENEVA. Dec. 19—An undeter
mined number of persons were ar
rested last night in a roundup offi
cially described today as directed
against espionage in Switzerland.
Police said that the majority of
arrests occurred at Moillesulaz. a
town on the French frontier, but
declined to disclose any identities.
Authorities said those seized were
being held under a Federal decree
for protection of the State, which
became effective December 15.
■-•...
34 Reported Killed
In Brazil Train Crash
Ey tta* Associated Press.
RIO DE JANEIRO. Dec. 19—A
collision of an express and a freight
train about 70 miles north of Rio
de Janeiro today took a heavy toll
in dead and injured.
First reports to newspapers her*
said 34 were killed and 60 injured in
the early morning crash on the Cen
tral do Brasil Railway near Bar
bacena.
National Radio Forum
The National Radio Forum
address this evening will be
made by Senator Bennett
Champ Clark of Missouri, who
will discuss ‘ Reason in Arma
ment." Tune In WMAL at
10:30 p.m.
A