Evening star. [volume], May 29, 1940, Page A-6, Image 6

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

Image provided by: Library of Congress, Washington, DC

                
■$683,000,000 Boost
In Taxes Planned
To Finance Defense
Amount Would Pay Off
$3,000,000,000 Cost
In Five Years
Uf the Associated Press.
Tentative plans for financing the
national defense program call for
an annual boost of $683,000,000 in
Income and excise taxes for the next
five years.
The financing would work out this
way:
The statutory national debt limit
would be increased by $3,000,000,000,
permitting that amount to be bor
rowed exclusively for defense ex
penditures. This borrowed money
Would be paid back in five years.
New taxes, yielding the estimated
$683,000,000, would be ear-marked
for defense and used to pay back the
$3,000,000,0000 borrowed. Their life,
accordingly, would be limited to five
years.
Taxes and Their Yields.
The proposed new taxes and their
estimated yields:
Incomes (both individual and
corporate): A fiat 10 per cent in
crease in the amount now paid in
taxes. Yield: $210,000,000. (Thus a
person whose present tax is $40
would pay $44, the new rate to' be
effective for incomes received in
1940.)
Gasoline: lVa cents a gallon in
stead of the present 1-cent Federal
levy. Yield: $100,000,000.
Beer: $6 a barrel instead of $5.
Yield: $58,000,000.
Liquor: $3 a gallon instead of
$2.25. Yield: $85,000,000.
- Cigarettes: $3.50 a thousand in
stead of $3. Yield: $70,000,000.
Effective July 1.
Tires and tubes, toilet prepara
tions, automobiles, radios, mechan
ical refrigerators, firearms and am
munition, matches, electrical energy,
lubricating oil, copper, petroleum,
coal, telephone and telegraph tolls,
playing cards and tobacco other than
cigarettes: A flat 10 per cent in
crease in present taxes. Yield:
$160,000,000.
Although the proposed measure
was not made public by congres
sional tax leaders, well-informed
sources said the various increases,
aside from the income levy, would
become operative at the start of the
coming fiscal year, July 1.
Defense
(Continued From First Page.)
period, but their nature immediately
stirred wide differences of opinion.
Speed Is Sought.
Chairman Harrison of the Senate
Finance Committee said there was
no reason why Congress could not
finish it in ample time for adjourn
ment before the Republican National
Convention June 24.
Senator Harrison and other lead
ers in both parties canvassed law
makers in Senate and House, seek
ing promises of co-operation in the
interests of speed. They were hope
ful of bringing out a tax bill that
was streamlined and unencumbered
by the usual perplexities.
Indications materialized quickly,
however, that the tax program did
not meet, universal favor.
Senator Wheeler, Democrat, of
Montana called it a ‘‘stop-gap." He
eaid he favored a suggestion by
6enator Byrd, Democrat, of Virginia
that a 10 per cent cut be made in
Government expenditures other than
those for defense purposes.
Called “Just a Gesture."
Senator Adams, Democrat of
Colorado described the proposals as
“just a gesture.” Senator Connally,
Democrat, of Texas proposed that
only the debt limit be raised at
this time, suggesting that House and
Senate Tax Committees return to
Washington in November to prepare
a comprehensive revision of the tax
structure.
Republican congressional reaction
generally was in support of the ad
ministration program, although
gome made it plain that they would
vote for an increase in the debt lim
itation only because it was coupled
Wdth a tax increase.
The bill approved yesterday by
the House, 402 to 1, authorizing the
$1,137,000,000 expansion of the
Navy's air force and of its system of
aviation bases, carries no funds (ac
tual appropriations being left for
later measures) but it sets the mini
mum of Navy planes at 10,000 and
the number of pilots at 16.000. The
construction and expansion of a far
flung system of naval air bases,
authorized by the legislation, would
cost approximately $144,132,000.
Speed Up Construction.
Earlier the chamher, with Repre
sentative Marcantonio alone dis
senting and 400 members voting
“aye,” passed legislation to speed up
construction of warships by permit
ting the Navy to slash through what
was called “red tape.”
Under this bill, which now goes to
the Senate, the competitive bidding
system would be replaced by nego
tiated contracts. Contracts up to
$25,000 would be exempt from the
present law's provision limiting
profits to 10 per cent. Certain .labor
regulations also would be relaxed.
,Talk of fortifying Guam, island
In the far Pacific, revived during
discussion of the air force bill, and
Representative Maas, Republican, of
Minnesota, senior minority member
of the House Naval Committee, de
clared that if he had his way “I’d
fortify Guam tomorrow.”
‘ Test of “Fitness to Live."
'The House listened intently while
Chairman Sumners of the House
Jlidiciary Committee predicted the
Ration was facing the test of its
'Witness to live.”
.“We've gotten very soft in Amer
ica,” the Texan said, solemnly. “You
c*n’t preserve a people that has be
came bottle-fed and rocked to sleep
in the arms of government.”
! The measure to speed up warship
construction would authorize the
Secretary of the Navy to make ad
\j$nce payments up to 30 per cent
of naval contracts and to give Gov
ernment orders for machine tools
priority over foreign orders.
• __________________
The United States is exporting
rflore trucks than ever before.
Members of President's National Defense Commission
EDWARD R. STETTINIUS, Jr.
INDUSTRIAL MATERIALS.—Will
supervise problem of procurement
of raw materials up to point where
they are ready for machining into
finished products.
Mr*. Stettinius, 40, is chairman of
the board of the United States
Steel Corp. One of the Nation’s
youngest top industrialists, he was
a vice president of General Motors
before joining United States Steel
in 1934.
WILLIAM H. MCREYNOLDS.
SECRETARY.—WiU be co-ordi
nator and office man for the com
mission, probably filling role of
chairman. *
Mr. McReynolds, a native of Kan
sas, is now administrative assistant
to the President. He is a career man
in the Federal service and formerly
was assistant director of the budg
et and administrative assistant to
the Secretary of the Treasury.
LEON HENDERSON.
PRICES.—Will establish statistical
clearing house for checking and sta
bilizing price trends of raw mate
rials.
At present a member of the Se
curities and Exchange Commission,
Mr. Henderson has been an eco
nomic adviser of the administration
since coming here with N. R. A. He
is a native of New Jersey and is 45.
WILLIAM S. KNUDSEN.
PRODUCTION.—Will take over
supervision of actual quantity pro
duction of all types of defense
equipment.
Mr. Knudsen was born in Den
mark and has worked his way
through American industry to be
come president of General Motors.
His first Job was in a New York
shipyard; later he was production
manager for Ford.
RALPH BUDD.
TRANSPORTATION.—Will main
tain contact with all types of Na
tion's transport system, guard
against any potential jam.
Mr. Budd has been a railroad
man throughout his life and is now
president of the Chicago. Burlington
and Quincy Railroad. He has been
ready since last September. Presi
dent Roosevelt said, to step into any
transport responsibility.
CHESTER C. DAVIS.
FARM PRODUCTS.—Will exer
cise jurisdiction over problem of
maintaining agricultural produc
tion at proper levels.
Mr. Davis, a member of the Fed
eral Reserve Board, was once ad
ministrator of the Agricultural Ad
justment Administration. He is a
native of Iowa, was educated in the
farm belt, and was once a news
paper editor in the West.
SIDNEY HILLMAN.
EMPLOYMENT.—Will be con
cerned with problem of bringing
men and jobs together; directing
apprentice work where needed.
President of the Amalgamated
Clothing Workers and a vice presi
dent of the C. I. O., Mr. Hillman
is a native of Lithuania. He is 53
and frequently has been an adviser
to Mr. Roosevelt on labor matters. |
MISS HARRIET ELLIOTT.
CONSUMER PROTECTION.—
Will maintain continuing check on
trends of prices of consumer goods
with view to preventing their infla
tion.
Miss Elliott has been teaching po
litical science at the University of
North Carolina for 21 years. She is
now dean of women there. She was
a member of the Women's Advisory
Platform Committee at the 1936
Democratic convention.
Civil Service
(Continued From First Page.)
Departments, several other agencies
are expected to add to the number
of their civilian employes in the
District as a result of their increased
responsibilities under the national
defense program.
Several Classes or workers.
The national defense program will
provide few jobs for clerical and
unskilled workers, it was pointed
out at the Civil Service Commission.
The principal demand will be for
skilled workers and mechanics.
In the fourth district, which in
cludes the Washington area, the
commission has recently reported a
shortage of coppersmith, loftsmen,
shipwrights, shipfitters and iron
workers. Prom two to four years’
experience are usually required for
proficiency in these skilled trades
Taking the country as a whole,
there is no shortage of skilled me
chanics, Isador Lubin, commissioner
of labor statistics, said. To build
airplanes and warships thousands of
mechanics will be needed to carry
out the administration's prepared
ness plans.
According to Mr. Lubin, there may
be shortages of mechanics in cer
tain localities. Such shortages are
offset by a surplus of mechanics
elsewhere. Plans for transferring
workers from areas where a surplus
exists to those whoch report a short
age of skilled workers needed by
industry in filling national defense
orders are now being studied by the
United States Employment Service.
Unions Deny Shortages.
The A. F. of L. and the C. I. O.
long at swords’ points on manj
other matters, are In agreemeni
that there are plenty of skilled me
chanics available to carry out the
national defense expansion pro
gram. At its recent meeting here
the Executive Council of the A. F. ol
L. flatly denied that any shortage
of mechanics exists, and C. I. O
officials have issued equally vigorous
denials .
According to A. F. of L. statis
ticians, approximately 25 per cent
of union workers in the metal trades
are now unemployed. These trades
include many of the skilled workers
needed for production of national
defense items.
Apart from the Increase in the
civilian personnel of the War and
Navy Department, the national de
fense program will result in im
portant gains in industrial employ
ment during the next few months
Commissioner Lubin predicted. He
said it is too early, however, to make
a definite estimate of the amount oi
additional employment which will
be provided by the projected expan
sion in the Army and the Navy.
A good deal will depend on the
speed with which the national de
fense program is carried out, and
how and where the orders are
placed. As a by-product. Commis
sioner Lubin pointed out, the defense
program should increase employment
in other industries than those direct
ly engaged in manufacturing air
planes and munitions for the Gov
ernment. It will, therefore, tend tc
reduce the volume of unemploy
ment.
Commission Speeds Up.
To recruit the additional civilian
personnel needed by defense agencies,
the Civil Service Commission has
put its entire organization, in and
out of Washington, on a 24-houi
basis. It plans an aggressive recruit
ing drive to secure skilled workers in
areas where shortages are reported
Early in June, through the secre
taries of its 5,000 field offices, the
commission will arrange to make
available, in first and second class
post offices throughout the country,
the latest information on civil serv
ice job opportunities under the
emergency program.
Field managers have been ordered
to report by airmail the resuts ol
their recruiting drives. The com
mission itself is meeting once or
more each day to discuss the recruit
ing problem. As part of its efforts
to obtain quickly the mechanics and
skilled workers needed by the Army
and Navy, the commission also plans
to take the air early in June in a
series of radio programs.
6,000,000 Listed for Jobs.
Proportionately, according to Fed
eral officials, there are more un
skilled than skilled workers now
unemployed. About 6,000,000 persons
are listed as job seekers by the
United States Employment Service
This list includes those on Federal
relief, C. C. C. aryl N. Y. A. enrollees
and other groups *nd individuals.
Skilled workers on Federal relief
rolls will have equal opportunity
with others to obtain the new jobs,
according to officials of the com
mission.
Library Open Tomorrow
The Library of Congress will be
open from 2 p.m. to 10 p.m. tomor
row, according to the holiday sched
ule announced today.
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■ A
Japanese Launch Daily
Air Raids on Chungking
By the Associated Press.
HANKOW, May 29.—The Jap
anese naval air force is planning
dally bombardments of Chungking,
provisional capital of the central
Chinese government, until its "spirit
of resistance in broken.” a naval
spokesman declared today.
The statement was offered In ex
planation of dally raids on Chung
king which began last Sunday,
when 99 planes attacked the city
in waves for four hours.
uispuicii irom unungamg
today said Japanese air raids in
that area were continuing.
Three groups of bombers, num
bering more than 50 in all, made
four attacks on the district west
of the city, dropping incendiary
bombs which started fires.)
It was estimated by Chinese that
300 persons were killed in the capi
tal yesterday.
While acknowledging that Chung
king is not an objective of present
land operations, the spokesman de
clared the city contained “military
objectives” and was dotted with
anti-aircraft guns.
He said Chungking “had to be
attacked," regardless of its status.
Japanese authorities, he said,
“guarantee” the safety of third
power property there, "provided mil
itary objectives are not situated in
the vicinity.”
Woman Dies of Burns
Lucy Wallace, 53, colored, of
North Brentwood, Md., died yes
terday at Freedman’s Hospital of
burns received Sunday when a lamp
exploded In her home, setting fire
to her clothing.
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iington's Leading
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eadline news
os it happens.
Explorers Leaving Today
For Sinks of Gandy
A group of 12 to 15 cave explorers
of the District Speleological Society
planned to leave late today for the
vicinity of Marlington, W. Va., to
attempt passage of the famous Sinks
of Gandy—a stream that borrows
through a mountain for a mile and
a quarter.
The party Is headed by William
J. Stephenson, president of the so
ciety, and includes A1 Lewis and
other enthusiastic cave fans, vet
erans of several other expeditions
in recent months.
They will be Joined In West Vir
ginia by a small party of explorers
from Steubenville, Ohio. Whether
they will be able to follow the river
through the mountains probably will
depend on how high the water is,
the local men said. They expected
to take a portable boat and other
special equipment.
Each policeman in London will
hereafter cost the city $1,280 a year.
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IN THEIR SPARE TIME
Windows look so much better with flower
boxes, ond . ... do your youngsters have
ploy equipment and a sand box? Drive
ways, too, need new surfacing. Anyone
who is handy with tools con fix up their
place in their spare time. Kelly has a
complete stock of lumber, sand ond other
items you'll need. Phone for a free esti
mate of the cost of materials.
J. FRANK
ELiy.
Lumber-Millwork *
SI 21 Georgia Ave. N.W.
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nsp.lL
Better Facilities
For Fighting Fire
Urged in Defense
Hampshire Heights
Citizens See Possible
Menace to Capital
Stressing the need for adequate
preparation in anticipation of any
national emergency the Hampshire
Heights Citizens’ Association last
night adopted a resolution indorsing
President Roosevelt’s defense pro
gram and closer surveillance on sub
versive activities.
Immediate Improvement of fire
fighting facilities in large urban dis
tricts, particularly the Nation’s Cap
ital, also was demanded. Special
emphasis was laid on the necessity
for up-to-date fire apparatus, in
creased personnel and an adequate
fire-alarm system as a defense meas
ure "as important as provision of
anti-aircraft guns’’ for the protec
tion of Washington in an emer
gency. Harry J. Miller, president of
the group, who offered the motion,
said the department should be pro
vided with steel helmets, gas masks
and protective clothing in order ef
fectively to combat widespread fires.
The move also asks exemption from
military service members of the de
partment, since their experience in a
war emergency is “vital.”
Miller Is Re-Elected.
In the annual election of officers
Mr. Miller was re-elected president,
J. Leon Bord chosen first vice presi
dent and Mrs. E. C. Atkinson sec
ond vice president. Others elected
were Mrs. Dorothy Kriemelmeyer,
secretary; Walter J. Snelllngs, treas
urer; Lawton Mellichampe and P. J.
Ableman. delegates to the Federa
tion; Walter Griest, delegate to Pet
worth, and Robert E. Mohr, to the
Chillum Heights Association.
Mr. Miller announced appoint
ment of chairmen of standing com
mittees of the association including
Mr. Ableman, publicity; Manning B
Peake, mails; Maurice Collegeman,
sewers; I. H. Minowitz, suffrage;
E. G. Goetz, police and fire; Charles
T. King, taxation; Walter C. Poteet,
education; Dr. S. J. Sugar, health;
Malcolm Lamborne, parks; Mrs.
Dora C. Eeizear, public utilities; Don
Lamborne, membership; Francis
Taylor, legislation; Mr. Bord, en
tertainment.
To Hold Boys’ Night.
The association voted to stage a
boys’ night June 11 in the Barnard
School auditorium for the benefit of
youths of the community. A movie
will be shown, refreshments served,
and Maj. Ernest Brown will speak.
Mrs. Leizear is in charge of the
program.
Action was taken favoring con
struction of a new fire station at
Hawaii avenue and Rock Creek
Church road N.W., to ask zoning ad
justment of a parking lot at First
street and New Hampshire avenue
N.W. and to protest commercial de
velopment of property along Hawaii
avenue in the Fort Totten area.
Last night's was the final business
session of the season.
Nazi Ship Leaves Brazil
To Run Allied Blockade
By tnc Associated Presa.
BELEM, Brazil, May 29.—The
6,466-ton German freighter Koenigs
berg headed down the River Para
for the Atlantic, 80 miles from Be
lem, yesterday in her second at
tempt to run the Allied blockade.
She carried a cargo of rubber val
ued at $800,000.
The freighter had been here since
the outbreak of the European war,
except for one false start for Ger
many on February 8. She returned
eight days later, apparently fearing
Allied warships patrolling South
American waters.
Eight German vessels remain in
Brazilian ports.
Husband Sees Wife
Die in Plane Crash
By th« AisoclBted Presi.
NORFOLK, Va., May 29—Mrs.
Joyce Stuart, 20-year-old mother,
and wife of a Navy enlisted man,
was killed and John Melniek, 25,
aviation machinist’s mate, third
class, attached to the U. S. S. Wich
ita, critically injured when Melnick’s
small, two-seated plane crashed on
the Navy auvlliary field at Little
Creek, last night.
James T. Stuart, Mrs. Stuart’s
husband, was a witness to the crash.
Dr. H. F. Dormlre, Princess Anne
County coroner, said it was his
opinion Mrs. Stuart became panicky
and grabbed the controls. He said
the control stick was broken.
'Just Begun to Fight/
Lord Lothian Tells
New York Club
•
Democracies Blamed for
'Lack of Dedication to
Something Greater'
By the Associated Press.
NEW YORK, May 29,-Lord Lo
thian, British Ambassador to the
United States, said last night that
despite present reverses the British
have “just begun to fight.”
“The news from. Europe tonight is
bad, very bad, but I venture to
think that our spirits are unim
paired,” he told the Canadian Club
of New York. “The fight has gone
far worse than we figured but the
fight has only just begun.”
Lord Lothian said it was the "lack
of dedication to something greater
than themselves” which consti
tuted one of the chief reasons why
democratic nations today found
themselves “unprepared and dis
united.”
He read a dispatch from the Brit
ish high command stating that the
British Expeditionary Force was
still unbeaten and would fight on
beside its French ally, and a message
from Lady Astor, American-born
member of Parliament, that the
spirit of Britain's warriors was “the
same as in 1914.”
The club presented its gold medal
award for furthering British-Amer
| ican relations to Sir Gerald Camp
bell. high commissioner for the
United Kingdom in Canada and
British Consul General in New York
from 1931 to 1938.
Acknowledging the gravity of the
situation abroad, Sir Gerald de
clared that “the greatest curse is de
featism, because it helps other isms
to go on abiding.”
Mrs. W. E. Reynolds
Dies in Kentucky
Mrs. Zella B. Reynolds, wife of
W. E. Reynolds, commissioner of
public buildings for the Fedeaal
Works Agency, died suddenly Sun
day at the home of her sister, Mrs.
T. J. Hawkins, in Lexington, Ky„
friends here were informed yester
day.
Mr. and Mrs. Reynolds were visit
ing her sister on their way home
from Storm Lake, Iowa, where they
had recently attended the funeral
of Mr. Reynolds’ mother. Their
home here is the Westchester Apart
ments.
Mrs. Reynolds, a native of Dan
ville, 111., had been a resident of
Washington since her husband en
tered Government service in 1933
The funeral will take place tomor
row morning in Danville.
Also surviving is another sister.
Mrs. Hervev Parker of Danville.
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Air Corps Doubled, 1
Army Strengthened
On Pacific Coast
New Burdens Also Placed
On F. B. I. in Guarding
Against 'Fifth Column'
By the Associated Press.
SAN FRANCISCO. May 29
Uncle Sam has doubled the Army
Air Corps personnel on the West
Coast and boosted that of the 9th
Corps Area 40 per cent since the
outbreak of the European war, a
check disclosed today.
Added enlisted strength of the
Navy at sea, the addition of about
100 Coast Guardsmen, a change in
the customs setup for neutrality
control and new burdens on the
Federal Bureau of Investigation in
connection with espionage and
"fifth column" activity also were re
vealed.
A survey of military and home
defense work indicated most of the
changes in this area were in line
with national policies and author
izations and not due specifically to
conditions on the West Coast.
Enlisted Strength Increased Twice.
The personnel of the Army Air
Corps fields—Hamilton-Moffett and
March—was at its largest point in
history, and between 25 and 50 per
cent more planes were in serviea
than nine months ago. It was esti
mated about half the 5.500 planes
authorized for the corps were in use,
the others ordered.
The authorized enlisted strength
of the 9th Corps Area was increased
twice since September. It now is
33,573, compared with 23,566. Actual
strength currently was estimated at
31,000. The 9th Corps Area includes
Oregon, Washington, California,
Montana, Idaho, Utah, Nevada,
Wyoming and Alaska.
• Little change has been effected in
the personnel of the 12th Naval
District (Utah, Nevada, Colorado
and Northern California), but the
Pacific sea strength was increased
through the recommissioning of old
destroyers for neutrality patrol and
25 retired officers were recalled to
[ duty in this area.
Customs Personnel Stands.
Increase in Coast Guardsmen was
principally due to new regulations
requiring more signalmen on cut
ters. A new Coast Guard base with
five planes is to be ready at San
Francisco Airport in August. The
San Diego base also will have five
planes, instead of the present two.
No personnel has been added to
the Customs Department in this
area, but requirements of neutrality
legislation have necessitated trans
fer of many men to the marine di
vision. The falling off of shipping
has made it possible to effect the
change without adding men.
The Federal Bureau of Investiga
tion personnel is unchanged, but ad
mittedly is facing an ever-increasing
number of Investigations into al
leged "fifth column” activity and
espionage, and is working around
the clock.
Bean growers of Manchuria re
cently staged a sellers’ strike.
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