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Evening star. [volume] (Washington, D.C.) 1854-1972, February 13, 1940, Image 1

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Weather Forecast f-————
Rain tonight; colder; lowest tonight . . . .. . . . ....
about 34 degrees; moderate wind shift* ' M established Id 1552
ing to northwest Temperatures today
—Highest, 53, at midnight; lowest, 41, at Most people in Washington have The
5:15 a.m.; 61 at 2 p.m. Star delivered to their homes every
From the United States Weather Bureau report. Qimjau \
fuii details on Page a-2. evening ana Sunday morning.
*_
# Closing New York Markets, Page 16. **"""" ' ~ 11 .
—--. - . . , ■ ■■— __________l/P) Means Associated Press,
88th YEAR. No. 34,986. _WASHINGTON, D. C., TUESDAY, FEBRUARY 13, 1940—THIRTY-FOUR PAGES. *** THREE CENTS.
Naval Budget v
Cut 111 Millions
In House Report
Committee Urges
Warships 'Superior'
To Those Abroad
BACKGROUND—
President Roosevelt proposed
budget which would not necessi
tate raising debt limit if $460,
000,000 of new defense taxes were
levied. Congress economy advo
cates, however, have been seek
ing to trim President's figures to
point where they can avoid either
national debt increase or enact
ing new taxes in election year.
By the Associated Press.
A $111,699,699 slash was made In
President Roosevelt’s budget for
the Navy today by a House com
mittee which recommended appro
priations of $966,772,878 and urged
that the Nation build battleships
and cruisers “superior’’ to those
abroad.
The cut, from the President’s fig
ure of $1,078,472,577, was the largest
yet made by the Appropriations
Committee in any single budget
recommendation, but the committee
eaid the fleet’s needs could be
“adequately met" with the smaller
sum.
(The Presidents budget figure
of $1,078,472,577 included funds
which he classified as emer
gency national defense expendi
tures. These were responsible
for the difference between that
figure and a $954,000,000 request
by the Navy to finance its nor
mal, non-emergency operation
and construction.)
Included in the measure was
11.000.000 to start work on a $3,000,
000 project designed to develop the
tiny Pacific Island of Guam as a
naval “lookout” post. Guam im
provements were turned down by
Congress last year after a heated
controversy involving questions of
foreign policy toward Japan.
Contract Authorizations Cut.
In sending the Navy bill to the
House floor, the committee also cut
$16,316,250 from the amount of "con
tract authorizations” recommended
In the budget. With such authori
zations the Navy may contract for
work to be paid for later. Thus the
total decrease in the amount the
Navy could spend or obligate in the j
fiscal year beginning July 1 amount- j
ed to $128,015,949.
While allowing money to start
work on 19 new combat ships and 5
auxiliaries, the committee cut j
$7,750,000 from the sums recom
mended for two new battleships and
two new cruisers.
While $2,950,000 will be sufficient
for the Navy to proceed with plans
for the ships, the committee said,
it should be determined before con
struction actually begins that the
ships will be superior to those of
other nations.
“The committee is of the opinion j
that definite advantage will be se
cured by maxing the new capital:
ships and the additional cruisers
not equal to. but superior to, any
pending foreign construction,” the
committee asserted.
High Degree of Responsibility.
• “As a foremost nation of the world,
the United States is charged with a
high degree of responsibility for the
maintenance of our peace. This re- j
sponsibility requires a policy of con
struction which does not confine it
self to imitation of other nations.
“Its economic strength and its
position of leadership among the
nations of the world demand such
ships and in such numbers as will;
maintain a preponderance of power 1
and thus insure the security and
peace of the United States.”
The battleships covered in the
naval appropriation bill originally
were to be 45,000 tons each with
Speeds of about 33 knots. They were
designed to match the two capital
ships for which starting funds were
made last year.
Cost Data Asked.
The House committee, however,
has been studying the advisability
of much larger vessels and has asked
the Navy to furnish cost data on
65,000-ton craft. High-ranking Navy
officers disclosed they were con
sidering battleships of possibly
62,000 tons for the future, but said
their construction was considered
unadvisable at this time.
In addition to curtailing initial
funds for the two proposed battle
ships, the committee also halved the
amount recommended for continu
ing work on the two already started.
Funds for the two cruisers given
Initial money last year also were
halved. The committee explained
It had been advised that the work
on the ships had not progressed so
(See APPROPRfATIONS7Page A-5)
Four Security Employes
Suspended for 'Strip' Show
9y the Associated Press.
BALTIMORE, Peb. 13.—Four Fed
eral Social Security Board employes
were under indefinite suspension
today and scores of others were
being questioned as an aftermath
of a Sunday night “strip-tease” stag
Bhow which ended in a police raid
and arrest of 157 men. .
Joseph L. Fay, chief of the board’s
office here, announced the suspen
sions last night after an all-day
inquiry. He said 72 of the men ar
rested had been definitely identified
as board employes, and added:
“Any others found to be associated
with the promotion of the affair
will be suspended immediately."
Five women performers also were
arrested in the raid on the show,
held at a resort near Baltimore.
Meanwhile, Representative En
gel, Republican, of Michigan sent
an open letter to Federal Security
Administrator Paul V. McNutt re
questing a full report on the affair.
Mr. Engel said he particularly
wished to know if tickets to the stag
party were sold in the board's
offices.
A
Bondy Asks Immediate Funds
For Home at Blue Plains
Describes Institution
As 'Second-Hand'
At House Probe
By JAMES E. CHINN.
Describing the Home for the Aged
and Infirm as a “second-hand in
stitution,” Robert E. Bondy, direc
tor of public welfare, today told a
congressional investigating commit
tee funds should be made available
immediately for a thorough reno
vation as well as additional facil
ties. m
Ultimately however, Mr. Bondy
said, the present home at Blue
Plains should be replaced with
buildings of the so-called “cottage
type” which would permit segrega
tion of various types of inmates.
Taking the witness stand as Mr.
Bondy completed his testimony,
Frederick W. McReynolds, chairman
of the Board of Public Welfare, de
clared the "basic fault” underlying
existing conditions at the home as
well as at other public welfare
institutions is "the lack of money,”
but he added:
‘The taxpayers are paying all they
can. The additional’ funds have
got to come through an increase
in the Federal Government’s pay
ment toward expenses of the Dis
trict.”
Mr. McReynolds, who has been
chairman of the (Welfare Board
since 1934, said he agreed 100 per
cent with everything Mr. Bondy had
previously told the committee, but
that he had one complaint, and that
concerned the allocation of District
funds.
“In the allocation of available
ROBERT E. BONDY,
Director of public welfare,
shown testifying on Blue
Plains today.
funds," he declared, ‘‘we are subject
to pressure groups.”
As a result, Mr. McReynolds
pointed out the public schools, the
Health Department, the Fire De
< See BLUE PLAINS, Page jU4.T"
Swedish Purchase
Of 144 U. S. Planes
Is Disclosed
Pursuit Ships, They Are
Close to Top-Ranking
Types Made in America
By FRED H. MORHART, Jr.
The largest order for war planes
and eoulnment by a non-belliger
ent nation sinpe the war started
has been signed by a Swedish pur
chasing mission, it was learned here
today.
The order includes 144 airplanes
and spare engines. Aside from pur
chases by Great Britain and France,
it is the largest given an American
plant by a foreign nation.
The planes are to be supplied by
the Vultee Aircraft Corp., Downey,
Calif., and will be powered by Pratt
Sc Whitney engines. The total
amount of the contract Was not
revealed, but it is understood to be
close to $10,000,000. It also was
learned the manufacturing com
pany already has obtained its en
gines, which are expected to be
delivered in staggered orders as
fast as the planes can be built.
Pursuit planes, they are among the
fastest ships of their type available
in this country for export. The pur
chase also is among the first to be
made since this Government began
its survey of "surplus” material
which can be made available to
foreign nations.
Last week President Roosevelt said
there were certain articles available
for export in the category of military
supplies. He specifically mentioned
shoes and old guns.
The order, which has no official
status here, is understood to have
been reviewed by high administrative
officials before being closed.
The planes are for direct delivery
and are close to the top-ranking
types in manufacture in the United
States, it was understood. Although
no details of the order had been
made public, rumors of the Swedish
deal had been heard for several
weeks.
Swedish missions have been in
and out of this country a number of
times since the Russian invasion
of Finland, making a survey of pos
sible sources of war materials to
meet their own needs.
It also is understood that the
order calls for a 50 per cent spare
order of engines, or 72 more than
the number of planes.
Ruling Backs Plan to Tax
U. S. Employes' Incomes
By the Associated Press.
RICHMOND, Va„ Feb. 13.—The
! Senate Finance Committee has a
ruling from Attorney General A. P.
Staples that House bill 96, which
would authorize Virginia to tax the
income of Federal officeholders and
employes, is constitutional.
Furthermore, Mr. Staples said, the
provision of the bill making the
State income tax applicable to the
tax year 1939 appears valid.
“It is clear that this retroactive
effect does not render the statute
unconstitutional,” he said in an
opinion given Chairman Aubrey
Weaver of the Finance Committee.
This amendment of the tax code
would affect hundreds of Federal
employes who work in Washington
and live in Virginia. The attorney
general also noted that it would ap
ply to Federal judges and officers of
courts "and persons in the armed
forces,” residing within Virginia.
- ■ . _
Luxury Liner Bids
To Be Opened May 7
By the Associated Press.
The Maritime Commission will
open bids at noon May 7 for con
struction of two 35,000-ton luxury
liners to ply between San Francisco
and the Orient.
The commission said the ships, to
be the largest ever built in an Amer
ican yard, could be converted to air
craft carriers in an emergency.
Carrying 1,000 passengers and a
personnel of 500, each vessel is to be
759 feet long, with a beam on the
water line of 98.2 feet. The designed
speed is 24 knots.
4
Neutrality Act's Use
In Sino-Japanese War
Is Opposed by Hull
Pittman Believes This
Attitude Applies Also
To Russian Invasion
B> the Associated Press.
Secretary Hull has expressed State
i Department disapproval of a resolu
tion to invoke the Neutrality Act in
the undeclared Sino-Japanese war. \
Chairman Pittman of the Senate j
Foreign Relations Committee dis- j
! closed this today, saying further
that the committee probably would
consider Mr. Hull's opinion as re
flecting the State Department's
views not only on the Far Eastern
conflict but also on the undeclared
; war between Finland and Russia.
Although Senator Pittman de
clined to make the letter public,
he said it was apparent that Mr.
Hull felt that the peace and se
curity of the United States were
not directly involved in either of
I the undeclared conflicts and for
that reason did not favor invoca
tion of the Neutrality Act. which
would greatly restrict American
dealings with the belligerents.
The Hull letter will'be considered
when a subcommittee takes up a
resolution by Senator Gillette. Dem
ocrat, of Iowa to set in motion con
gressional machinery to place the
Neutrality Act in operation in the
Far Eastern war. Chairman George
said the subcommittee might meet
tomorrow.
Curtiss Planes Called
Superior to Germany's
Br the Associated Press.
Greater maneuvering ability was
credited today for the success of
American-made Curtiss planes in
use by the French Army, despite
the superior speed of German Mes
serschmidts.
The House Appropriations Com
mittee made public testimony of
Rear Admiral John H. Towers,
naval aeronautics chief, that dur
ing the present war “under some
circumstances, the plane with the
lower speed, with greater maneuver
ing ability, has real advantage over
the faster plane.”
Admiral Towers said that was the
answer to what the Curtiss plane
was doing to the Messerschmidt.
“When the Messerschmidt comes
on him,” he said, “he can turn
quicker than the Messerschmidt,
which will consequently charge past.
“With the greater maneuverability
of the Curtis plane he may get
under the tail of the Messerschmidt
and it is very difficult to shake
him off.”
Reds Repulsed
At Two Points,
Finns Declare
Most of 100 Sledges
Are Reported
Destroyed
BULLETIN.
.HELSINKI, Peb. 13 OP).—After
13 days of bitter fighting, Finnish
military authorities announced
today that all positions of stra
tegical Importance on the Ka
relian Isthmus had been won
back by Finnish counterattacks.
B) the Associated Press.
HELSINKI, Feb. 13.—The Finnish
high command announced today
that its forces had repulsed day-long
Russian attacks on the Karelian
Isthmus, making “several successful
counterattacks,” and farther north
had driven a Russian detachment
back across its own frontier.
The daily communique said that
fighting was continuing on the isth
mus today. 13th day of the Russian
assault there.
The Finns said they “destroyed”
the greater part of an enemy column
of 100 sledges among the Pitkaranta
Islands, along Lake Ladoga's north
ern fringe, and reported they had re
pulsed Russian attacks northeast of
Lake Ladoga and the Kuhmo sector
still farther north.
The Russian force thrown back
across the border was “advancing
to the west” in the region of Raate,
east of Suomussalmi, at Finland's
“waist.”
Attacks Continue Unabated.
The Russian attacks on the isth
mus "continued unabated” through
out yesterday, the Finns said.
Today's communique said there
was fighting yesterday also at Muo
lajarvia and at Taipale on the
isthmus.
In the Pitkaranta Islands north
east of Lake Ladoga the Finns said
they "destroyed” a Russian column
of 100 sledges, and they reported
capturing several Russian machine
gun nests in the Kuhmo region.
At Raate, the Finns said, they
drove a Russian detachment “back
beyond the frontier.”
The Finns said they had de
stroyed 23 Russian tanks on the
isthmus and 2 more northeast of
Lake Ladoga. They said their pur
suit planes and anti-aircraft guns
had shot down four Red planes in
the various war zones.
Russians Strengthen Forces.
There were indications that the
Russians were throwing reinforce
ments into the isthmus attack.
One source said five Soviet divi
sions. including reserve lines, were
occupied in that sector, although
no definite figures were available.
The strength of a Russian division
is estimated at 19,000 men.
The deep-throated bark of ar
tillery continued steadily as the
Karelian Isthmus battle went on.
A famous Finnish athlete, Gun
nar Hockert, was reported killed
in the isthmus fighting Sunday.
Winner of the 5,000-meter run
in the record time of 14:22.2 in the
Olympic games of 1936, Hockert also
held the world record of 8:14.8 for
the 3.000-meter run. He was the
second noted athlete to die in the
war. Speed Skater Birger Wasenius
having been killed in December
while leading a ski patrol across
Lake Ladoga.
Interest in Baltic Reports.
Finnish leaders in Helsinki ex
pressed interest in reports that Lat
via and Estonia possibly were ap
proaching a crisis in their relations
with Russia, with whom they made
military pacts last autumn.
In Riga, Foreign Minister William
Munters of Latvia said, howevef,
that relations with the Soviet Union
were very satisfactory, and inquired,
“Where's the Sovietization of which
we were warned? No one in Latvia
can say the Soviet Union intervenes
in our home affairs some way or an
other.”
Finish rejection of Russian de
mands for a similar pact and terri
(See FINLAND, Page A-ll.)
Godoy and His Wife
Form Dance Team
By the Associated Press.
NEW YORK, Feb. 13—Arturo
Godoy and his wife, Ledda, have
formed a ballroom dance team.
The Chilean fighter who lasted 15
rounds with Joe Louis will show his
prowess at the tango, the conga and
the rhumba, with the tall, pretty
brunette from Buenos Aires he mar
ried eight months ago.
Summary of Today's Star
Page.
Amusements,
B*16
Comics B-14-15
Editorials— A-S
Finance A-15
Lost, Found- A-3
Page.
Obituary... A-10
Radio —. A-14
Society_ B-3
Sports . A-12-14
Woman’s Page,
B-10
Foreign
Reds are repulsed at two points,
Finns declare. Page A-l
Allies to watch U. S. exports to Reich
neighbors. Page A-2
Nazi crew on British cruiser after
firing ship. Page A-2
Dutch will protest to Reich against
liner’s sinking. Page A-2
Japanese emigrants’ recall from U.
S. rejected by Arita. Page A-4
Britain acts to smash Nazi mine
bomb blockade. Page A-4
Italy reported speeding Brenner
.Pass fortification. Page A-5
Notional
Hull against invoking Neutrality
Act in China. Page A-l
Swedish purchase of 144 U. S. war
planes is revealed. Page A-l
Roosevelt to confer with advisers on
foreign affairs. Page A-l
6,800 attend marathon New York
tax hearing. Page A-2
Washington and Vicinity
Cassini and Warren ton girl married
in Fredericksburg. Page A-2
A . '
General overhauling forecast for
D. C. Revenue Act. Page B-l
Schulte arranges for exposure of
mediums’ “fakery.” Page B-l
“High-test” gasoline hearing to be
held this week. 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
David Lawrence. Page A-9
Alsop and Kintner. Page A-9
G. Gould Lincoln. Page A-9
Lemuel Parton. Page A-9
Constantine Brown. Page A-9
Sports.
Baseball rules change aids pitchers
against batters. Page A12
Galento offers to bet he’ll stop Louis
in five rounds. Page A12
Capital area has lone winner as dog
show starts. ' Page A-13
School teams battle for place in
Star basket tourney. Page A-14
Miscellony
Nature’s Children. Page B-2
Service Orders. Page B-8
Vital Statistics. Page B-8
Bedtime Story. Page B-14
Crossword Purale. Page B-14
Letter-Out. Page B-14
Winning Contract. P*ge B-15
Uncle Ray’s Corner. Page B-15
Mvc GOT TO GOOtTM
Breaking Old Home Ties!
President Approves
$252,340,776 Fund
For Neutrality Costs
Chief Executive Plans
To Leave on Fishing Trip
Later This Week
By JOHN C. HENRY.
President Roosevelt today ap
proved a supplemental appropria
tion bill providing *252.340,776 to
defray costs of maintaining our neu
trality since war broke in Europe
last September
Approximately *20,000.000 below
the President's request, the legisla
tion provides funds for the following
departments:
War. *109.416.689: Navy, *137,172,
238; Justice. *1.475,000, and Treas
ury. *4276,849.
Most of the Navy and Treasury
funds were used to pay for the neu
trality patrol, and the recommission
ing of a score or more of laid-up de
stroyers for this purpose. The War
Department funda were devoted
largely to construction work, with
the Justice Department spending its
extra allotment for F. B. I. espion
age investigations.
President Will Go Fishing
Expected to leave Washington
later this week for a Southern fish
ing and vacation trip, the President
planned several consultations today
and tomorrow with his advisers on
international affairs
Slated for an afternoon conference
today was Joseph P. Kennedy, Am
bassador to Great Britain. Under
secretary of State Welles, although
confined to his home with a cold
today, was expected to see the Chief
Executive prior to the latter's de
parture Mr. Welles is leaving Sat
urday for Europe and a survey of
war-time conditions there.
Secretary of State Hull also is ex
pected to see the President this
week, while William C. Bullitt, Am
bassador to Prance, now in Wash
ington, likewise may be a White
House caller.
Among his other appointments to
day Mr. Roosevelt was to see Fed
eral Security Administrator McNutt
and Chairman Fly of the Federal
Communications Commission. The
Ministers from Iran and Greece were
to pay courtesy calLs on the Presi
dent during the day.
Regarding the President's vaca
tion plans, no official announce
ment has yet been made, but the
Associated Press reported that the
trip has definitely been decided
upon. It was believed he might dis
cuss his plans'at a press conference
today.
Since he has made it an annual
custom to take a fishing trip
around February, it was assumed
he would again use a Navy cruiser
and sail southward along the At
lantic Coast or possibly enter the
Gulf of Mexico.
One reason for the secrecy sur
rounding the trip, it appeared, was
the fact that belligerent war vessels
have been reported in the Carib
bean from time to time. Mr. Roose
velt himself reported last fall that
a submarine had been sighted off
Miami, Fla., and another near Key
West, Fla.
Meanwhile, formation of a Roose
velt-Farley delegate slate In Wis
consin strengthened the belief of
many politicians here that the
Chief Executive and the Postmaster
General are in accord on the Demo
cratic presidential campaign.
One Senator in close touch with
Mr. Farley told reporters that the
cabinet member and national Dem
ocratic chairman was "resolved to
do one of two things—nominate
himself or Mr. Roosevelt.”
Wants President Drafted.
The Wisconsin Democratic State
convention, meeting last night at
Wisconsin Rapids, declared that the
President should be drafted for a
third- term. Another resolution ex
pressed the hope that Mr. Farley
“may continue in public life in the
interest of the people of the Na
tion.”
The convention adopted a slogan
of “officially indorsed Roosevelt
Farley delegates” for its slate in
the April 2 primary. National Com
mitteeman Charles E. Broughton
said, however, that the mention of
Mr. Farley did not mean he was
indorsed as an alternate presi
dential choice* or as a vice presi
dential candidate.
Mr. Farley has given his consent
to entering a delegate slate pledged
to him in the Massachusetts presi
dential primary, but has made no
other direct indication that he is
a candidate for office.
Cost of Operating
Navy Bombers $2271
An Hour and Going Up
fcr the Associated Press.
Here’s one for the motorist
who thinks it’s expensive to op
erate his automobile:
The operating cost of the
Navy bombers, now on neutral
ity patrol, has been $22.71 an
hour—and it’s going up.
This cost. Rear Admiral John
H. Towers told the House Ap
propriations Committee, did not
include overhaul and deprecia
tion. The cost was rising, he
said, because the newer models
require a higher quality gaso
line than the older ones.
Senate Approval
Of Finnish Loan
Expected Today
George Questions
Wisdom of Move as
I Detyte Nears End
By S. A. O’LEARY.
Favorable action by the Senate
late today on the bill to enable
Finland to obtain <20,000,000 of ad
ditional credit for non-military
supplies was predicted by leaders,
as the debate drew to a close.
The wisdom of making a Govern
ment loan to the Finns, even though
the Neutrality Act has not been
invoked, was questioned by Senator
George, Democrat, of Georgia, at
the outset of today’s 'session.
The Georgian admitted there is
not a declared state of war between
Russia and Finland, but insisted
actual warfare is in progress, and
inquired:
"Do we preserve our neutrality for
the purpose of preventing our in
volvement in the war when, simply
because there is no technical dec
laration of war, we undertake to do
things that could not be done if the
Neutrality Act had been involved?’’
No Nation Mentioned.
While the bill merely adds $100,
000,000 to the lending facilities of
the Export-Import Bank without
mentioning any country. Senator
George said it is difficult to discuss
the measure without thinking of a
loan to Finland.
The purpose of the measure is to
vest discretion in the directors of
the bank to determine whether ad
ditional credits, not exceeding $20.
000,000, should be advanced either
to Finland or China, for the export
of non-military supplies from this
country.
With several amendments pending
the first vote is expected to come
on a motion by Senator Danaher,
Republican, of Connecticut, to pro
hibit loans to anyi foreign govern
ment, a move which administration
leaders believe will be beaten.
Relending Plan Withheld.
Later a motion will be made to
cut the general authorization to
$50,000,000. This probably will mus
ter greater support, but, if adopted,
would prevent the proposed credit
to Finland.
Senator Brown, Democrat, of
Michigan, announced he would not
offer an amendment he had drafted
to enable the R. P. C. to re-lend
to Finland the approximately $5,
800,000 it has repaid the United
States on its old war debt, in addi
tion to the Export-Import Bank
credit. Such a loan would have
been available to Finland for any
purpose.
The Michigan Senator said he is
withholding the amendment, be
cause he does not want to do any
thing that might infringe on Amer
ica’s neutrality.
British Scout Planes
Reported Over Reich
By th« AuoeUtcd Preu.
PARIS, Feb. 13—British recon
naissance planes were reported by
French sources today to have flown
over Northwest Germany and to
have been attacked by German
pursuit ships. All were said to have
regained their bases in France, how
ever.
There was limited reconnaissance
flying over the western front by both
the Germans and French. Intense
cold prevented any land action ex
cept by a few scouting patrols, which
returned from expeditions between
the lines without incident.
The French communique from the
western front said, "Nothing to re
port."
Carmody Proposes
U. S. Take Over Work
Of Recreation Unit
Buildings Commissioner
Would Direct Operation
Of Cafeterias
An agreement by which the com
missioner of public buildings would
take over direction of the Welfare
and Recreation Association and
continue operation of Government |
cafeterias, but turn other activities
over to the National Park Service,
has been submitted to the trustees
of the association by John M. Car
mody, Federal Works administrator,
and will be voted on at a meeting
tomorrow afternoon, it became'
known today.
The proposal follows the recent
report by Acting Controller Gen- j
; eral Elliott, who said that the con
! tract with the Government under
which the association—a corpora
tion-had been functioning since
1927, had no statutory authority
and was illegel.
The agreement would change the
structure of the association, which
la now under the direction of a
board of trustees who are under
ofllcials of the Government, and
provide for the election of members
by the heads of departments and |
independent agencies; these in turn j
would name officers.
Under the plan, the corporation \
also would be relieved of the obliga- !
tion of paying to the Government!
approximately $187,000 which Mr.
Elliott said was due under the 1927
agreement which provided for an
equal division of the net receipts be
tween the Government and the cor
poration.
A new arrangement also is pro- 1
vided for the corporation to con
tinue the aid to private welfare
organizations composed of Govern
ment employes which Mr. Elliott
said was improper under the old
agreement. The plan now contem
plated says that the corporation
"may lawfully and substantially aid
accredited welfare associations by
acting as collector of a small and
uniform donation for that purpose
by cafeteria patrons; e.g.. the auto
matic donation of 1 cent per tray
of 25 cents or more, unless objected
to by the patron. Such donations
it is estimated, would aggregate
a larger sum than now is expended
by the, corporation for such pur
poses."
The facilities which the corpora
tion would turn over to the Na
tional Park Service include the
tourist camp, souvenir stands at
Lincoln Memorial and Washington
Monument, Pierce Mill Tea House,
tennis courts and bicycle stands.
The Secretary of the Interior would
pass on any arrangement that is
made for turning over these opera
tions.
The corporation, it also is pro
posed, would cut off cafeterias in
(SeelC AFETmiASrPage' A-5J
Bi-Party Coup in Jersey
Forces Race Bill to Floor
B* the Aaeoclated Pres*.
TRENTON. N. J„ Feb. 13.—Amid
tumult and shouting, a union of Re
publicans and minority Democrats
seized control of the New Jersey As
sembly early today, picked their own
partisans to replace regular officers
and pushed to the open floor a horse
racing and pari-mutuel-betting con
trol bill.
The insurgents, led by supporters
of former Republican Gov. Harold G.
Hoffman, shouted down Speaker
Roscoe P. McClave. a member of the
Clean Government Repullcan fac
tion, when he declared the 60-mem
ber House adjourned. They named
Assemblyman J. Stanley Herbert
speaker pro tempore.
A pending racing bill, introduced
by. Assemblyman Vincent S. Hane
man, was advanced to final reading
and made the special order of busi
ness for next Monday night’s session
by a vote of 32 to 0.
The constitution was amended at
public referendum last June to allow
pari-mutuel betting at horse races.
The Haneman measure would cre
ate a Turf Control Commission of
(two Democrats and two Republicans
to be named by the Governor, now
Democrat A. Harry Moore, with Sen
ate consent. The Clean Government
faction has backed a commission of
three Republicans and two Demo
crats to be named by the Republican
controlled Legislature.
Ruling Sought
On N. L. R. B.
'Lobbying'
Board's Activities
Violated Statute,
Toland Implies
BACKGROUND—
Special House committee hat
been investigating National La
bor Relations Board since De
cember. After hearing testimony
indicating dissension on board
and alleged partiality of some
field employes for C. I. O., com
mittee gave board members op
portunity to present their views.
By CARTER BRQOKE JONES.
Chairman Smith of the House
committee investigating the Na
tional Labor Relations Board an
nounced at today's hearing that he
would ask the Attorney General for
an opinion on whether evidence
before the committee indicated the
board or its staff had violated the
law prohibiting Federal agencies
from using public funds to lobby
for their interests.
Meanwhile, the chairman with
held from the record the ' implied’'
charge of Committee Counsel Ed
mund M. Toland that the board
members and field officers had vio
lated the statute. While Mr.
Toland. reading the law, said he was
not so charging anybody, committee
members said they could make no
other ‘'inference'’ from his com
ments.
The discussion followed a mass
of documentary evidence showing
the board's regional directors, often
with the knowledge of board mem
bers and other Washington officials,
had organized pressure on Congress,
especially from labor leaders, to
prevent cuts in appropriations and
amendments to the Wagner Act.
"Blackjacking’’ Charged.
The committee counsel followed
up his “implied-’ charge by ac
cusing Board Chairman J. Warren
Madden, who was on the stand, of
"blackjacking’’ employers by asking
the procurement division of the
Treasury Department not to award
them contracts at a time when un
fair labor charges had been filed,
but not even heard.
The statute which the commit
tee counsel cited was Title 18,
United States Code Annotated, Sec
tion 201. It specifically forbids a
Federal board or any of its em
ployes from using Federal funds to
influence members of Congress in
appropriations to be made for that
agency.
Violation a Misdemeanor.
When Mr. Toland read the statute,
two members of the board—Chair
man Madden and Edwin S. Smith—
and its secretary, Nathan Witt, were
seated together as witnesses, identi
fying the correspondence which the
committee counsel produced.
Mr. Smith admitted he telephoned
from Washington to Charles W.
Hope, then regional director at Se
attle, asking him to get in touch
with labor leaders and others in re
gard to a threatened cut by the
Senate In the N. L. R. B. appropria
tion which the House had passed.
This was in 1938.
"Did you discuss any other mat
ters with Mr. Hope during that con
versation?” asked Representative
Routzon, Republican, of Ohio.
"I don’t recall,” said Mr. Smith.
"Usually when we phone our re
gional directors we take up whatever
may be pending.”
"Was that telephone conversation
at Government expense?” the com
mittee member demanded.
“Oh, yes.”
The citation read at the hearing
states:
“No part of the money appropri
ated by any act shall, in the ab
sence of express authorization by
Congress, be used directly or in
directly to pay for any persohal
service, advertisement, telegram,
telephone, letter, printed or written
matter, or other device, intended or
designed to influence in any man
ner a member of Congress, to favor
or oppose, by vote or otherwise, any
legislation or appropriation: but
this shall not prevent officers and
employes of the United States from
communicating to members of Con
gress on the request of any member,
or to Congress, through the proper
official channels, requests for leg
islation or appropriations which
they deem necessary for the effi
cient conduct of the public busi
ness.”
In response to questions by com
mittee members Mr. Toland said a
violation of the statute was a mis
demeanor, punishable by a fine of
$500 or imprisonment for one year,
or both.
Chairman Smith remarked that it
was a matter of common knowledge
that Federal agencies did more or
less lobbying for their own appro
priations.
Board Chairman Madden earlier
told the committee he supposed the
board had sufficient knowledge of
(See LABOR BOARD, Page~A^4T~
Australian Forces
Arriving in Palestine
Br the Associated Press.
JERUSALEM, Feb. 13.—Australian
troops began arriving today at spec
ified areas in Palestine.
An estimated 30,000 Australian
and New Zealand troops arrived at
Suez yesterday after a 10,000-mile
Journey from the Antipodes.
The first contingent of Australians
reached a Palestine camp after five
hours in a crowded troop train.
Long lines of gray buses, winding
through the green hills and orange
groves, carried the men from a small
country station to their new encamp
ments which had been prepared by
the Scottish regiment stationed in
Palestine.
The newcomers quickly exhausted
available supplies af erahges from
happy vendors.

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