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Weather Forecast Fair tonight; tomorrow mostly cloudy and somewhat colder; lowest tempera ture tonight about 42 degrees. Tem peratures today—Highest, 62, at noon; lowest, 39, at 7 a.m. Full report on page A-2. New York Markets Closed Today. . - _____ First in Washington— First in the news coverage that builds public confidence—First in circulation and advertising that reflect public confidence. (JP) Means Associated Press. 87th YEAR Yo 34 579 Entered *s second class matter OIUI XJjXllt. u- 0-±,UlV. post offlce Washington, D. C. —j - WASHINGTON, D. C., MONDAY, JANUARY 2, 1939-JTHIRTY-EIGHT PAGES. , I -.'■ » THREE CENTS. Relief, Defense Facing Fight In Congress President's Power Expected to Get Speedy Test ty the Associated Press, Immediate clashes over relief and defense policies were in prospect i today as members of Congress began ' assembling for a crucial session, which will put President Roosevelt s leadership to new tests. Vice President Garner and Speaker > Bankhead will call the session to order at noon tomorrow. The Presi dent will deliver his annual message Wednesday, and the battle will be on. Even before the formal opening, however, members of the strength ened Republican minority were de manding a reorganization of W. P. A. activities and were urging caution in developing an armament pro gram. Democrats Confident. Democratic leaders, on the other hand, expressed confidence their re duced majority would carry out the administration's wishes on these and other major issues. Representative Rayburn, Demo crat, of Texas, unopposed for re election as Democratic floor leader, commented: "I think our party is going to work together this session and be very harmonious.” Representative Rayburn and , other veteran Democrats were greet ing new party members in advance of the House Democratic caucus this afternoon. Offices and Capitol corridors were filled with legislators renewing ac quaintances, discussing the Novem ber elections, and speculating on the 1940 presidential campaign. . Rpublican House members! whose total of 169 is nearly double their number in the 1938 session, will meet tonight to choose a minority leader. Representative Martin of ‘ Massachusetts, far in the lead for the position, said last night in a radio speech hailing the Republican gains: “Rubber Stamp Days Over.” “The rubber stamp days are over. Gone are the days of court-packing, crack-down and purge. The Amer ican people once more are the masters of their own Government and are therefore free.” Vice President Garner, Speaker Bankhead, Senator Barkley, Demo crat, of Kentucky, and Representa tive Ravbum were called to the White House this morning for a j final pre-session conference with the 1 President, who is completing his congressional message. Unconfirmed reports indicated the address would contain a strong arraignment of totalitarian governments and would point to American insistence on the principles of democracy. Congressional authorities pre dicted White House conferences with Senate and House chieftains would become weekly affairs, as they were last year. Mr. Roosevelt also arranged a conference this afternoon with Harry L. Hopkins, Secretary of Com merce and former W. P. A. admin istrator: Col. F. C. Harrington, new W. P. A. Chief, and Daniel W. Bell, i acting budget director. This was expected to deal with relief needs. The President's budget message is scheduled tentatively for delivery Thursday afternoon. Before today's meeting Senator Barkley, who was re-elected Demo cratic leader of the Senate Saturday, disclosed that an appropriation to operate W. P. A. until July 1 would be the first business of the new Congress. He predicted the administration would ask for $500,000,000 to $750, 000.000. inasmuch as W. P. A. funds will run out early in February. > Relief Fight Likely. Debate on this emergency appro priation was expected to touch off a general discussion of relief admin istration, especially since a Senate committee report on complaints of “politics in relief” will be made public shortly. Senator Bailey, Democrat, of North Carolina, a frequent New Deal critic, told reporters he was prepar ing a bill to revamp the W. P. A., * but would withhold it until he saw what the administration would pro pose. * Representative Woodrum. Demo crat, of Virginia, a high-ranking member of the House Appropria | tions Committee, also declared a “drastic and thorough-going revi < See CONGRESS. Page A-6.) Atlantic Air Service Will Begin in June By the Associated Press. LONDON, Jan. 2.—The beginning of regular weekly trans-Atlantic air service between North America and England was announced today for June. Imperial Airways said it was ready to put three 24-ton Cabot flying boats into service between South ampton and Montreal by way of Foynes, Ireland, and Botwood. New foundland, when the ice clears from Botwood Harbor. Officials also said negotiations were under way for a landing per mit to make possible an extension of the service to New York at the same ’ time. National Radio Forum 0 Speaker William B. Bank head will speak in the Na tional Radio Forum this even — ing at 10:30 o’clock on the legislative program of the new Congress which convenes to morrow. Tune in WMAL at ? 10:30 tonight. ^ U. S. Developing Policy Toward'Bad Neighbors' President's Message Wednesday Seen Filling In Outline Drawn by Recent Acts By thf Associated Press. The State Department rapidly is developing a policy toward “bad neighbors” to supplement the “good neighbor policy” of American di plomacy. The new doctrine has not yet been fully perfected or named, but its broad outlines were charted in re cent weeks by uncompromising United States action against Ger many and Japan. President Roosevelt’s message to Congress Wednesday, in the opinion of many students of international affairs, will give further bodv to the new policy. So far it has been manifest by these nine develop ments : 1. Return of Ambassador Hugh Wilson from Germany following an outburst of anti-Semitic measures which President Roosevelt called "almost unbelievable.” 2. A demand that Germany pro vide assurances Americans there would not be bothered because of their race or creed and further assurances American holders of Austrian obligations would get their, money from Germany. 3. The rebuke of Germany’s pro test against Secretary Ickes’ de nunciation of dictatorships, includ ing a flat refusal to apologize for Mr. Ickes’ remarks. 4. Initialing of a new trade agreement with Turkey (which lies in the path of Germany's trade ex pansion into the Balkans) and study of new credit to Latin America in challenge to German any Italian commercial inroads. 5 A long series of protests to Japan over damage to American rights in China, property losses there, discrimination of various kinds, apd finally a demand that Japan kl*tp open the treaty door of equal opportunity in China. 6. This was accompanied by an ( See FOREIGN POLIC Y, Page A-4.) Garner's Powerful Position Can Put Him on Spot Public May Link Him With Administration Success, Failure BACKGROVHD— The importance of Vice Presi dent Garner in the coming Con gress was foreshadowed last week when two cabinet officers, Secre tary Wallace and Secretary-des ignate Hopkins, journeyed to the Capitol to discuss their programs with him. Mr. Garner has been definitely listed among the con servative Democrats since the. Supreme Court fight of 1937. He' is reported a leader in the move ment for decentralizing relief administration. By tne Associated Press. The general recognition of the power which John Nance Garner will wield in the new’ Congress puts the Vice President in a spot where he may become a visible target. The situation has developed in such a way that the Democrats might be said to have three lead ers in Congress—Barkley in the Senate. Rayburn in the House, and Garner in a strategic position in both chambers. In a sense, this has been true for six years, but it is becoming widely accepted here that Vice President Garner's position has been vastly stengthened by the last elec tion. Anything approaching official rec ognition of this power easily may link Mr. Garner in the public, mind with the success or failure of*tht administration program in Congress. It ties to him a certain responsi bility for what Congress does, a situation in which no Vice Presi dent has been put in the past. The visit paid the Texan by Sec retaries Wallace and Hopkins on " i See GARNER, Page A~~-4 J Tariff May Be Used As Farm Argument For Processing Tax Levy Held 'Equalizer' For Cost of Import Duties to Growers B> the Associated Press. The tariff—an issue over which many historic legislative battles have been waged—may be debated again during consideration of the farm problem by the new Congress. Administration farm leaders have indicated they would use tariff pro tection now accorded many products of American industry as an argu ment in favor of a proposal of Secre tary Wallace that processing taxes be re-enacted. Receipts from such taxes would be used to increase benefit pay ments to farmers co-operating with the Agriculture Departments crop adjustment programs. Secretary Wallace prefers to refer to processing taxes as "tariff-equal izing taxes." They are levies made on the process of turning wheat into flour, cotton into cloth, and tobacco into cigars and cigarettes. The administration farm leaders contend that agriculture is not on a basis of equality with industry when It comes to prices received for prod ucts of each “No one ever has measured ex actly how much the tariff costs American farmers, or other consum-, ers who buy industrial goods." the department said in a report sup porting Secretary Wallace’s process ing tax recommendation. “Whether farm income goes up or down, farmers always suffer from tariff inequality. They buy on a higher market than they sell on. They sell their export crops at low world prices and as long as they export they will keep on selling at world prices. They need payments to make up something of what the tariff costs them.’’ Britain May Expand 1939 Naval Estimates By the Associated Press. LONDON. Jan. 2.—The Herald said today that Great Britain would revise her naval estimates for 1939 upward by several million pounds because of Germany's move for sub- J marine parity. "There will probably be an extra two flotilla leaders and 14 destroyers with large numbers of small, fast, submarine-chaser motorboats,” the newspaper said. Chancellor Hitler has notified London that Germany intends to more than double her submarine strength to bring it to parity with Britain. Germany W'as understood to plan mass production of a "minnow” submarine and to build two new 10,000-ton cruisers. Under the German-British naval treaty of 1935, Germany agreed to restrict herself to 35 per cent of British tonnage in every category but submarines, which were to be 45 per cent unless by "friendly dis cussions" Germany elected to build to the full British tonnage. False Accusations Jail Five in Soviet B.» the Associated Press. MOSCOW, Jan. 2.—Five former ; functionaries of the NKVD (state police* in the Moldavian Republic,; part of the Russian Ukraine, are be ing tried before a military tribunal at KiefT charged with “provocative creation of artificial cases" against blameless Soviet citizens. The newspaper Soviet Ukraine said today that a number of people, mostly village teachers, had been | jailed on trumped-up charges of be longing to a counter-revolutionary Fascist youth organization. A typical case was that oi a teacher accused in a letter to the NKVD of having made private re marks of an alleged anti-Soviet na ture. The functionaries, it is charged, built up a story of a wide spread counter-revolutionary plot and prepared a “fake report" indi cating that a Fascist youth organi zation involving at least 11 teachers actually existed. Jews also figured as victims of such cases. Intimidation was used it was charged, to make one Jew ac cuse another of membership in a Zionist counter-revolutionary or ganization Summary of Today's Star Page. Page. Amusem’ts, A-12 Radio_ A-17 Comics B-18-19 Sports A-15-17 Editorials .. A-8 Society -B-3 Lost and Woman’s Found _B-15 Page-A-13 Obituary ...A-10 Foreign. Daladier vows France will defend Corsica. Page A-l Hata relinquishes army command in China. Page A-l King George honors broad list but ignores Wallis. Page A-2 Franco shifts offensive south toward Valencia. Page A-3 Japan seen cold to negotiation on “new order’’ theory. Page A-4 National. Murphy takes oath of office at White House. Page A-l Garner^ powerful position makes him visible target. Page A-l Relief, defense policies facing fights in Congress. Page A-l U. S. develops policy toward “bad neighbors." Page A-l Tariff issue may be raised in farm bill debate. Page A-l Ohio searches for five escaped mad men. Page A-2 Churches ask probe of San Francisco F. H. A. offices. Page A-6 Philadelphia Mummers stage htibe parade. PageiPU Washington and Vicinity. Oldest Inhabitants ask Congress to grant D. C. suffrage. Page B-l Two persons dead after New Year Eve fights. Page B-l 64 planes en route to Miami stop at College Park. Page B-l Editorial and Comment This and That. Page A-8 Answers to Questions. Page A-8 Letters to The Star. Page A-8 Henry J. Allen. Pnge A-9 Alsop and Kintner. Page A-9 Frederic William Wile. Page A-9 Jay Franklin. Page A-9 Lemuel Parton. Page A-9 Sports. “Weather clear, backs fast’’ for big grid games today. Page A-15 Duke short-enders confident in day’s biggest bowl game. PageA-15 Mulvihill brothers’ duel to mark St. John’s-Gonzaga feud. PageA-16 Budge debut to patch feud between net pros, amateurs. PageA-16 Tough meet looms, with small cups, for publinx players. Page A-17 Miscellany Winning Contract. PageB-14 The Holy Terror. PageB-15 Bedtime Story. PageB-18 Cross-Word Puzzle. PageB-18 Letter-Out Page B-18 Uncle Ray’s Corner. AgeB-19 Nature's Children. ^ge B-20 Murphy Takes Oath of Office At White House Selected Group of 27 Witnesses Ceremony With President Murphy Takes Oath on Bible Mother Gave Him Gov. Frank Murphy took his oath of office today as Attor ney General on a 30-year-old Bible. In it is inscribed: ‘‘To dear Frank from mama on the day he graduated. June 26. 1908.” The Governor has been read ing this same Bible an hour every day since he received it. Frank Murphy, retiring Governor of Michigan, was sworn in as At torney General of the United States at 12:15 p.m. today in the Presi dent's study a^ the White House. Arriving this morning from Michi gan, Mr. Murphy had spent an hour in conference with the President before the swearing-in ceremony. A selected group of 27 persons, officials and friends of the Governor, gathered for the swearing-in, at which Associate Supreme Court Justice Reed presided. Two of the guests were the Gov ernor's brother and sister, who ar rived with him this morning on a train from Detroit. The Governor, who relinquished his Michigan office today to Frank D. Fitzgerald, successful Republican candidate for the governorship, said at Union Station that he would have no statement to make until after he was sworn in. He said he planned to go from the ceremony at the White House to the Department of Justice, where he would bid an offi cial good-bye to Mr. Cummings. Closeted With President. He was met at the station by a White House car. which took him to his hotel. From there he went by cab to the White House at about 9:30 a m. and spent an hour closeted with Mr. Roosevelt. Vice President Garner was among those asked to attend the swearing in. The other guests included Sec retary Morgenthau, Secretary Wood ring, Secretary Ickes, Secretary Wal lace, Secretary Hopkins. Attorney General and Mrs. Cummings. Chair man Jones of the R. F. C„ Solicitor General Jackson, Assistant Attorney General Arnold, Chairman Ashurst of the Senate Judiciary Committee, which will pass on Attorney Gen* eral Murphy s appointment; Chair man Sumners of the House Ju diciary Committee. David Niles, dep uty W. P. A. administrator; Repre sentative Dingell, Democrat, of Michigan and Mrs. Dingell; J. M. Elizalde. resident commissioner of the Philippines, where Mr. I.lurphv once was high commissioner. Friends at Ceremony. Among Mr. Murphy's personal friends attending the ceremony were Justice McAllister of the Michigan Supreme Court, Mrs. McAllister, di rector of the women's division of the Democratic party in Michigan; Judge George Murphy of the Detroit Recorder's Court, the Governors brother; Mrs. Marguerite Teahan, the Governor's sister; Maj. Gen. and Mrs. Frank Parker and their daugh ters, Annie and Kathryn, whom the Governor knew in the Philippines. Besides Mrs. Teahan and Judge Murphy, two other persons made the trip East with the Governor. They are Miss Eleanor Baum gardner, Mr. Murphy's secretary for the past five years, and Edward Kemp, the Governor's financial ad viser. President Roosevelt invited the red-headed. 45-year-old Murphy to take the oath in the same White House study where on Christmas Eve Harry Hopkins, former W. P. A. administrator, was sworn in as Sec retary of Commerce. Like Mr. Hop kins, he long has been a close friend and supporter of the Chief Exec utive. The President's choice to succeed Attorney General Cummings, who is retiring to private law practice, came as no surprise in the Capital. Mr.. Murphy’s defeat by a Repub lican last November made him available for a Federal post, and he and Solicitor General Jackson had been regarded as the leading can didates to head the Justice De partment. Confirmation Is Expected. Mr. Murphy still faces one hurdle —Senate confirmation. Predictions were general that the appointment ultimately would be approved, but several Senators indicated he would be questioned closely about his handling of Michigan's automobile sit-down strikes in 1937. A strong indication of confirma tion came today in the statement of Senator Vandenberg, Republican, of Michigan, that “I do not expect to oppose" the appointment, “since he believes such selections to be a President's “personal privilege and responsibility." Customarily any confirmation fights are led by Senators from the appointee's State. Senator Brown, Democrat, of Michigan, has sup ported Mr. Murphy. Senator Vandenberg recalled that he and Mr. Murphy had been per sonal friends despite political dis <See MURPHY, Page A-3.) -» ■■ . Dominican Novitiate Damaged by Fire QUEBEC. Jan. 2 (Canadian Press). —The two top floors of the Domini can Fathers' Novitiate here were wrecked by fire which was brought under control early today after three hours. Three members of the order were injured. Valuable papers, including treatises on economics being pre pared by fathers of the fkder, were destroyed. ■> fh GEORCCA JACK'5 CARRYING iVlEFLAGy,. / CHIEF, \| ( Suppose they \ / Took the law mro \ (. Thrown hands j Daladier Pledges French Defense For Corsicans 'Mussolini to the Scaffold/ Cries Island Throng B> the Associated Press. AJACCIO. Corsica. Jan. 2 —French Premier Daladier today answered Italian clamor lor Corsica. France's Mediterranean island department, by telling the islanders France was strong.and would protect them. Cries of "Mussolini to the Scaf fold!" from thousands of demon strating Corsicans interrupted Dala diers reception at the town hall. The mayor halted his address of I welcome until the windows could be i closed to shut out the noisy cries of the crowd demonstrating against Italy's anti-French sampaign. "France does not need to be ag gressive or menacing." the Premier said. "She has no need to raise her voice. She must be strong; she is, and it is that that I have come to tell you now while this squadron circles your island." He referred to a fleet of warships ! in the Ajaccio Harbor which had j convoyed him from France and i which he pictured as an “image’’ of France's strength. Rousing Public Reception. M. Daladier spoke at the Munici pal Building after a rousing, colorful ! public reception. I ‘‘While this squadron circles your ; island." he said. "I wish every farmer and every fisherman seeing it pass to return to his home with the calm of one who knows security. This squadron is the image of France's strength and her vigilant affection ” Thousands of islanders, many from interior mountain towns, jammed the water front cheering “Corsica is French.” The Premier was preceded by a native Corsican member of his cab inet, Navy Minister Cesar Cam pinchi, who landed from the cruiser Suffren. A few minutes later M. Daladier stepped ashore from the cruiser Foch which rode in Ajaccio Harbor with the Suffren and a convoy of six naval vessels. Through beflagged streets and cheering crowds he drove to the monument honoring the island's 40.000 World War dead and received a huge wreath from Corsican school children. During a moment of silence he placed it at the base of the monument. Defense Units Parade. Soldiers, sailors and guns of the island's defense units then paraded in a brief review. Afterward the premier, fresh from winning pas sage of his 1939 budget in Paris, was whirled off for an official re ception at the town hall. Guns thundering from the city's forts and bells ringing from churches added to music of military bands and cheers of the crowds lin ing the premier's route. Above the Town Hall an old Cor sican flag bearing a black Moor's head dating from the Crusaders floated between two French tri colors. M. Daladier, whose wife is of Cor sican extraction, was greeted by the mayor as “a Corsican by marriage.” Isle Reaffirms Loyalty. This island department of France reaffirmed its loyalty to the main land government with signs pro claiming that “Corsica is and always will be French.” The huge signs were everywhere, declaring the Corsican allegiance to France against Italian colonial aspirations. Long before the Premier’s cruiser rounded the point of Ajaccio Har bor for the first stop of his tour of the nation's outposts, double lines of police took their places at the docks and along the parade route to city hall. Special Guard for Consolate. A special guard was ordered around the Italian consulate, scene of recent demonstrations by Corsi cans against the Italian colonial campaign in which the Fascist press has argued for Italian domi nation of Corsica, Tunisia and other French territory. Thousands of residents from towns and settlements outside the capital jammed- the city for a brief glimpse of their government leader before he left for Bastia, second stop of the tour. The prefecture of ^police issued (See DALADIER, 4*age A-4.) 1,000 Hunters, Facing, Hope to Kill Coyotes Only By thf Associated Press. PHOENIX. Ariz., Jan. 2. —The Arizona Sportsmen's Association launched a unique coyote extermina tion plan today, but skeptics had a feeling that, unless extreme care is used, the cross-fire of 1,000 guns might result in extermination of a number of hunters as well. The coyote roundup is to be con ducted over an area six miles square. Hunters would converge toward a tall flagpole, shooting coyotes and other predatory animals on sight. Said James R. Wilson, association president, "the last few minutes of the roundup should provide plenty of excitement.” The skeptics agreed, envisioning the 1.000 hunters in a wooded area blasting away at close range. Gen. Franco Shifts Offensive South Toward Valencia Catalonia Is Caught in Rebel North and South Drives BACKGROUND— Eleven days ago Gen. Francisco Franco launced big. new offen sive against Catalonia in attempt to take Barcelona, provisional seat of Spanish government, and cut off source of Loyalist sup plies coining from France. In surgents have made slow but steady progress against "Little Maginot” line, constructed dur ing months of inactivity in Northeast Spain. Bv ihe Associated Press. HENDAYE, France, Jan. 2.— Spanish government dispatches said three insurgent battalions slashed against government fortifications guarding the road to Valencia early this morning in an attack apparently presaging a new offensive against that Mediterranean seaport. The attackers struck at fortifica tions along the Segorbe-Valencia road at Castillo Noguera. near Nules, continuing throughout the morning. Insurgent sources declared Gen eralissimo Franco’s troops, renewing activity on the coastal front, gained key positions in the Vail de Uzco sector, 12 miles north of Sagunto, after bitter fighting with the govern ment defenders. Insurgent advances in the ex treme northern and extreme south ern sectors of Catalonia brought new rearguard troops. Smashing attacks Sunday in the regions of Vilanova de Meya between (See SPAIN. Page A-3.) Hafa Relinquishes Command of Japan's Forces in China Change Is Deemed Sign Military Operations Are Completed B> the Associated Press. SHANGHAI, Jan. 2.—Gen. Shun roku Hata, commander of Japanese forces in Chinjf and the conquerer of Hankow, has relinquished his command and departed for Tokio, it was learned authoritatively today. Gen. Hata’s departure was consid ered by many foreign observers to foreshadow a definite change in Japanese tactics, with major mili tary operations considered com pleted and the Japanese campaign henceforth concentrating on wiping out guerrillas and pacifying partially conquered regions. Admiral Ranking Officer. Admiral Koshiro Oikawa, com mander of Japan's third fleet in Chinese waters, becomes ranking Japanese officer in Central China. Thus it seemed the Navy hereafter would dominate the picture, main taining control of China's seaports and the main avenues of inland commerce, the Yangtze and Pearl Rivers, while scattered army col umns try to mop up guerrilla resist ance. After Gen. Hata became com mander February 23. when the Jap anese military machine was bog ged down, his forces swept up the Yangtze to capture Kiukiang, Wu chang and Hankow, former Chinese capital. French Area Blockaded. Meanwhile messages from Han kow reported a Japanese blockade of the French Concession there was becoming more intense, with motor boat patrols halting all vessels at tempting to land food. Industrial plants in Hankow re ceived official Japanese encourage ment to reopen but a lack of work ers hampered operations. The British-American tobacco plant re sumed work but at only one-fifth of normal production. Party Expels Wang For Peace Efforts HONG KONG. Jan. 2 (^.—Expul sion of former Premier Wang Ching wei from the Kuomintang (Chinese government) party raised speculation today as to how far his efforts for peace with Japan might have been aimed at splitting China's military unity. A special session of a Kuomintang Committee read Wang out of the party yesterday a»t Chungking, tem porary Chinese capital, for ‘ desert ing his post and suing for peace in contradiction to national policy." Unofficial sources in Chungking (See CHINA, Page A-6.) White House 'Gate-Crashing' Probed by Secret Service Officials Seek to Fix Responsibility for 'Impossible' Stunt Secret Service heads are today in vestigating the New Year's eve in cident at the White House when a girl and a boy in their teens crashed the "gate” and joined the presi dential family party on the second floor of the mansion and afterwards went away with autographs of the President and Mrs. Roosevelt. Frank Wilson, chief of the Secret Service, who was credited with hav ing put A1 Capone behind the bars, is personally investigating. He was at the White House today with his assistant, Joseph Murphy, and Col. E. W. Starling, in charge of the White House Secret Service, ques tioning men on duty Saturday night in an effort to establish responsi bility. Should Be Impossible. For anyone to outwit the various guards and attaches at the White House and get close to the President or any member of his family is looked upon as indicating a serious neglect. According to the precau tions taken to guard the presidential family, such a thing should be im possible, but it happens every now and then. Secret Service heads are amazed at the boldness of Joseph Measel, 16, of ijfcl Connecticut ave nue N.W. and Miss Beatrice White, Don Measell, 13, who waited in a car outside the White House while his brother Joe and Beatrice White interrupt ed the Roosevelts’ New Year family party. —Star Staff Photo. 16, of 5367 Twenty-eighth street N.W. in gaining admission to the White House Saturday night and confronting President and Mrs. (See'CRA^ERsTPage A^ff) D. C. Families At $300 Level Hit in Report 31 Such Receiving Old-Age Grants, Congress Told By JAMES E. CHINN. Thirty-one District families hav ing incomes from other sources of more than $300 a month also receive old-age grants in the household averaging about $15 a month, Bur dette G. Lewis, public relief investi gator. disclosed today in the second installment of his report to Con gress. In the first section Mr. Lewis crit icized the system under which pub lic relief funds are administered, claiming that there was a “surpris ing proportion" of households where a security grant supplements a rela tively high level of income from other sources. As a check on those believed to be receiving "too much.” he recommended establishment of a “ceiling" of income in a household. A major portion of the second in stallment is devoted to an explana tion of two charts in the report, one relating to the income levels in American life and the other old-age assistance grants. There is also an explanation of the procedure fol lowed in collecting data used in compilation of the old-age assist ance chart. Seeks ‘ Adequacy Gauge. “The act of Congress ordering the investigation of relief requires the director to report concerning the ‘adequacy or inadequacy of individ ual grants' of relief, social security, W. P. A. and N. Y. A. aid," said Mr. Lewis. “Hence, there must be some standard or yardstick against which to measure ‘adequacy’ or ‘inad equacy.’ “Heretofore adequacy and inad equacy generally has been left to the judgment of the individual case worker after certain standards of the more general type had been furnished her. Occasionally com parable grants in so-called compar able areas have laso been used as a guide. At the 1937 annual meeting of the National Conference of So cial Work at Indianapolis, Ind., data was presented by Dr. Roy Blough showing the average income in good years and in bad years of the aver age person in America, and a ques tion was asked but not answered, j Would the public approve in the long-run grants in excess of these average earnings?’ “When the methods of conducting | the investigation of public relief in | the District of Columbia were being ! determined, suggestions were made concerning standards of measure ment which might be used in the District of Columbia as a basis of comparison against which 'adequacy or inadequacy of individual grants’ might be determined. These were: . “1. Average income of the average family. “2. Average wages earned by the average gainfully employed worker in the District of Columbia tin pri vate business i. “3. The cost of living for the aver age family of four in the District. “4. Comparable grants in com parable cities.” Mr. Lewis said to assist him in reaching his conclusions as to the adequacy and inadequacy of relief, he also used special data collected by the District Minimum Wage Board, the Washington Housing As sociation, the Bogrd of Trade and groups of organized labor. rears ureed and Chaos. “While responding to the evident need for a real co-ordination be tween the cost of services and the ultimate results to be obtained,” he declared, “we do not hesitate to say that our chief concern has been the lower economic groups, takep as a whole, and not merely those who are on relief, and also those other groups of thrifty, self-reliant per sons who must earn the where withal with which provisions can be made for all classes and groups of individuals in our beloved land. With a feeling that greed and hate have been much overworked, and are too rapidly bringing certain chaos in their wake, we have hoped to indicate how co-operation and a feeling of brotherhood, guided by the findings of science, may reverse the trends and save this civilization from the menace of distempers and of unfortunate misfits.” Officials Cite Small Staff, Insufficient Funds Still without copies of the critical report of Burdette G. Lewis, director of the public relief investigation, local relief officials today insisted that the “crux” of the situation lies in the shortage of staff and insuf ficiency of funds. Elwood Street, director of public welfare, said today that he and other officials had repeatedly warned of the dangers of inadequate staff and shortage of funds. He said he even was on record as predicting the “chiseling” by relief clients, which was charged by the Lewis report made public Saturday night. “Most of the difficulties would have been obviated by a larger staff,” he insisted. "Our people have a case load of almost twice that recommended by the Federal Social Security Board. Whereas that board says each case worker should have not more than 100, our workers have more than 185 cases each, to look after. “We can't do the job without a staff to do It.” Frederick W. McReynolds, chair man of the Board of Public Wel fare, was represented by his asso ciates _today as saying that the (See D. cT~RELIEFTPage A-3.) No Late Editions Today Due to the holiday, The Star will not publish the 5:30 and Night Final editions today. Subscribers to these editions will receive the regular city edition. *