Evening star. [volume], August 06, 1940, Page A-3, Image 3

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

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Britain's Release
Of Prisoner Eases
Tension With Japan
Government Preparing
Statement to Submit
To Commons Today
8» the Associated Presa.
LONDON, Aug. 6.—Diplomatic
tension between Britain and Japan
appeared to ease today as the gov
ernment prepared a statement on
the situation for presentation in the
House of Commons this afternoon
While the Foreign Office worked
on this problem, important to the
empire's outposts in the Far East,
British air defense fought against
new German bombing raids on the
coast of Northeast England, a rural
area in Southeast England and
Wales.
The Air Minister announced that
one German bomber was intercepted
and shot down by British fighters
off the east coast of England and
another was reported driven away
from a southeast coastal town by
anti-aircraft fire.
One Japanese Released.
Either Prime Minister Churchill
or Undersecretary for Foreign
Affairs R. A. Butler was to go before
Commons with the governments
statement on British-Japanese rela
tions.
Or. the surface at least these rela
tions were bettered by the release
last night of Satoru Makihara. Lon
don agent for the big Mitsubishi
business and banking interests, who
was arrested Friday night in a
round-up of Japanese throughout
the Empire.
The Home Office was said to have
decided that the “evidence avail
able" was “insufficient to warrant
further detention” of Makihara. He
and eight other Japanese were ar
rested in a drive the British said was
for home security. The government
denied the detentions were in re
prisal for similar arrests of Britons
In Japan.
The other eight remained in
custody, including Shunsuke Takabe,
a London representative of the Mit
sui interests
Big Activity in North France.
With continuing German thrusts
bv air against various parts of the
British Isles, some observers thought
a major attack might come within
the next few days or possibly a
fortnight. The statement of Field
Marshal Goering, the German air
chief, that the raids so far have
been but armed reconnaissance was
accepted here as a fair description
of the German strategy.
R. A. F. reconnaissance is under
stood to have disclosed large-scale
German activity in the occupied
areas of Northern France. All the
'while the R. A. F. has been bomb
ing barges along the Holland and
Belgian coasts which the Germans
may have massed fci attack.
Reports also have been reaching
here of sea preparations at the back
of the Baltic Sea and of activity in
Norway, where, it is rumored, some
Italian troops have been sent.
The Germans are understood to
be making preparations in the Bal
tic as they did before the invasion
of Norway, when many troops were
embarked. The idea would be to
send light craft carrying troops
through either the Kiel Canal or the
Skagerrak.
Southeast Bombing.
The government this morning an
nounced German warplanes had
“dropped a small number of bombs
In a few districts of Southeast Eng
land” during the night, but “no
damage or casualties were caused.”
It was announced belatedly that an
additional enemy fighter was shot
down in air clashes Monday after
noon, making a total of four for the
day.
' The navy estimated today it had
lost 6.221 officers and men killed
or missing since the start of the
war—2.988 killed or fatally wound
ed. 3,204 missing and ■ 29 taken
prisoner. It was estimated 1,849
• were wrounded.
The Admiralty announced 21
British sailors died July 25 as a
result of an attack by Nazi dive
bombers on the destroyer Boreas in
the English Channel. It was stated
25 others were wounded. The de
stroyer returned damaged.
German Preparations
Believed About Complete
NEW YORK. Aug. 6 </P).—Royal
Air Force intelligence officers, ana
lyzing scouting reports from across
the English Channel, are convinced
the Germans have about comDleted
organization of a blitzkrieg at
tempt, Larry Leseuer, C. B. S. cor
respondent in London, reported in a
broadcast heard here today.
Nazi activity, particularly on rail
roads and highways in Northern
Belgium. Holland and France, has
been stepped up, he said.
Air force officials, Leseuer said,
expect the German onslaught to
come partly on barges towed by
transports believed to be under con
struction in the Baltic now and on
gliders, towed by transport planes,
which would carry food, munitions
and guns but no men.
British Fleet Reported
To Have Quit Gibraltar
ALGECIRAS. Spain, Aug. 6 (iP).—
Nineteen British warships were re
LOST.
BRACELET, silver, linked spelling. ‘ Esther
Dickman”. sentimental value; lost Friday;
reward. Call National 0634._
BRIEF CASE, large, brown: at Union Sta
tion or between there and Chevy Chase:
containing papers, toilet case, etc ; reward.
Telephone District 3760 or Wisconsin 5349.
EASTERN~STAR PIN?”Friday. Aug. 2, be
tween Kann's and Lansburgh's dept, stores.
Return to P. S. Byrd. 2214 H st. n.w. Re
ward__L_
KEYS (4>, in zinper case. Call National
9210. __
MALTESE CROSS PIN, midnight blue, with
J. H. H. in gold, name engraved on back,
• Patsy Gattls. 1933, Vigilando.” Reward.
Call WO. 3776._
PAPERS, bank books and wills, bearing
name “Grogan.” Reward. Call Georgia
4726._
POCKETBOOK. large navy blue, containing
money, valuable papers, on Military rd. in
Rock Creek Park. Reward. Box 3,7-K.
Star, or DI. 4377, Extension 3, 4:30 to 6
pm. _
6UN GLASSES; lost Sunday In Rock Creek
Park: reward Call Mr. Coventry, Repub
ilc 0573.____
TOY COLLIE FUPPY. near Fort Dupont
Park s e„ tan with white head marks, 4
white ieet, name Skippy. Reward. AT.
9262.______
WRIST WATCH, lady's Hamilton, gold, with
Xold strap, initialed “B. A. C.“: vicinity
valon Theater, Friday. SH. 1666. *
LIBERAL REWARD.
Diamond ring, square setting: lost near
Reflection Pool. July 25. WI._7559.•
FOUND.
BRING OR REPORT deserted, stray animals
(only) to the Animal Protective Association
Atlantic 7353 or Atlantic 7142
SPECIAL NOTICES.
Twill not be responsible for any
a debts other than those contracted by my
self. LAURENCE PRESTON MERRIMAN.
819 F St. s.w. 6*
l £
l\ RESCUE ATTEMPT—Francis Crampton (left) and Walter
Saylor, who submerged themselves in 25 feet of water here yes
terday to recover the body of James Holmes, drug store clerk,
who drowned in Potomac River. —Star Staff Photo.
ported to have left Gibraltar hur
riedly yesterday, starting first into
the Mediterranean but then cutting
back toward the Atlantic Ocean.
There was no information as to
where they might be headed.
Reports reaching La Linea. close
to Gibraltar, said the 29,150-ton
British battleship Resolution was
damaged in an air-sea battle last
Saturday south of Formentera, one
of the Balearic islands off the
southeast coast of Spain.
The same reports said a cruiser
was hit by a bomb in the same fight
and several British sailors were
killed and wounded. The name of
this ship was not learned. It and
the Resolution were said to have
been left behind at Gibraltar when
the 19 other warships left.
Willkie
(Continued From First Page.)
Republican county leaders how he
would study problems that would
confront him during four, or eight—
“but not 12"—years in the White
House.
He was referring to the fact that
he had spent the morning gathering
the first-hand views of practical
farmers to supplement the theories
of the agricultural problem, but he
avoided giving any hint of the farm
program he will outline in his ac
ceptance speech at Elwood, Ind.,
August 17. He said he would fol
low this same process in dealing with
all problems, and not be guided by
theory alone.
Bars Personalities.
In his first speech of the day. to
a crowd on the Statehouse steps, Mr.
Willkie had spoken in complimen
tary terms of Secretary of Agricul
ture Wallace.
When he started to say he was
glad to be in the home town of the i
Secretary of Agriculture, “an emi
nent public servant,” there was a
scattering ripple of laughter from
his admirers, who evidently thought
he was leading up to some verbal
thrust at the President's running
mate. But Mr. Willkie quickly
added: “I mean that quite seri
ously in the course of this cam
paign, particularly when Mr. Wal
lace begins to discuss the general
policies of the New Deal, I shall
undoubtedly find myself in much
disagreement with him, but I recog
nize Mr. Wallace as a fine gentleman
and as a scholar, and I want to
conduct this campaign upon the
basis of the very fundamental issues
that are involved and not upon the
question of personalities. And you
will find that throughout the cam
paign I shall make no ill-remark of
either of the gentlemen on the other
ticket unless they first make an ill
remark about me.”
Cites Industrial Concentration.
He began by telling the Iowans
that he grew up “in this kind of
country,” at Elwood, Ind., and un
derstood their problems. One of
those problems, he continued, is that
in recent years “our Industrial plants
have had a tendency to grow in size
and concentrated in certain sections
of the country.”
“One of the real problems of
America,” he went on. “and it bears
particularly on the coming defense
program, is to bring about decentral
ization of industry, so that there
may be brought back into these small
towns of America industrial plants,
to the end that medium-sized busi
nesses may be encouraged to survive,
thrive and prosper.” In developing
the defense program, he said, those
in charge of the Government should
see that many of the plants are
located in towns like those in Iowa.
Cheered by Independents.
Later members of an independent
Willkie Club received him. They
cheered when he greeted them as
“fellow amateurs.” Mr. Willkie has
a warm spot in his heart for these
independent groups that sprung up
within a few months before the
Republican convention, and worked
zealously for his nomination at Phil
adelphia.
He spent the rest of the afternoon
dropping in on separate conferences
of county leaders from various parts
of Iowa. His discussion of why
France fell before the march of a
dictatorship came at one of his press
conferences. Both the French and
British had as much intelligence and
greater resources than their oppo
nent, he said.
“Yet,” he went on, "France was
crushed like an eggshell. Why?
Because they had adopted the
candy-stick theory of government.
When a child cries, you give him a
stick of candy and try to quiet him.”
France's defense problem, he
added, was essentially one of pro
duction.
Luise Rainer Here
Seeking Aid for Father
Luise Rainer, film actress, flew
into Washington today to seek the
aid of the State Department in
bringing her 65-vear-old father,
Heinrich Rainer, to this country
from France,
Mr. Rainer, formerly a merchant
in Brussels, recently was released
from a prison camp in Prague,
where he had been in Oerman
hands for two months. He is now
awaiting word of arrangements to
leave the continent.
Miss Rainer is registered at the
Shoreham Hotel.
'h
40,C J Krakow Jews
To Begin Migration
Eastward in Few Days
Given Opportunity Until
August 15 to Choose
New Domicile
Bt thf Associ»ted Press.
KRAKOW, German-Occupied Po
land. Aug. 6—This city's entire
Jewish population of about 40!000 is
scheduled to begin a mass eastward
migration within "a few davs."
DNB, official German news agency,
reported today, quoting the War
schauer Zeitung.
German authorities and repre
sentatives of the Jewish community
were said to have arranged details.
“All Jews are given an opportunity
until August 15 to choose a new
domicile in the region of the gov
ernment-general," the newspaper
said.
The government general is that
portion of German-occupied Poland
not formally annexed to the Reich.
Warsaw was designated chiefly
to absorb the Jewish wanderers, but
larger provincial towns also were
open to them.
The emigrants” will be allowed
to take all their belongings with
them, the newspaper said. The plan
has been worked out so that all
able-bodied unmarried men will be
resettled first, followed by unmar
ried women and then families whose
members "shall not be separated."
Hungary Confiscates
Jewish-Owned Land
BERLIN, Aug. 6 (Via Radio) .—
The Hungarian government decreed
today the confiscation of “a large
portion” of Jewish-owned landed
property in that country, the Ger
man radio reported from Budapest.
The German broadcast declared
the measure was in connection with
the Hungarian program of breaking
up large estates into small farms
for peasants. About one-fifth of
the property still in Jewish hands
is said to be affected by todays
decree.
Two Bahaman Estates
Bought for Windsor Party
By the Associated Press.
NASSAU, Bahamas, Aug. 6.—Two
hilltop estates skirting exclusive
Cable Beach have been purchased
by a member of the Duke of Wind
sor’s party, presumably to house
part of the new Bahaman gov
ernor’s entourage.
Capt. Vyvyan Drury, who is trav
eling with the Duke and Duchess
toward Nassau, picked the two
properties, Pour Winds and Taip
ing, and arranged for their pur
chase. Capt Drury wintered in the
Bahamas last year.
NEW YORK, Aug. 6 UP).—'The
liner Excalibur. carrying the Duke
and Duchess of Windsor to Ber
muda, radioed today that she would
reach the Bermuda pilot station
Thursday afternoon. It was the
first word the American Export
Lines, owners of the vessel, had re
ceived from her since she left Lis
bon last Thursday.
Vincent Astor’s yacht, the Nour
mahal, put out to sea today, re
viving speculation that it might
be used to carry the Duke and
Duchess from Bermuda to Nassau.
Mr. Astor’s office, however, said the
yacht was merely undergoing its
annual conditioning cruise.
Stanley High, New Deal
Adviser, Backs Willkie
By the Associated Press.
NEW YORK, Aug. 6.—Stanley
High, once an inner council New
Dealer, is joining the Wendell Will
kie forces.
He said yesterday he wanted to
become a part of “that increasing
company of non-Republicans” who
have pledged support to the Repub
lican presidential candidate.
Mrs. Willkie Reveals
She Didn't Vote for
Roosevelt in 1932
By the Associated Press.
DES MOINES, Iowa, Aug. 6.
—Mrs. Wendell L. Willkie
usually votes the way her hus
band does, but 1932 was an ex
ception, the wife of the Repub
lican candidate for President
revealed today.
“I didn't vote for Roosevelt
in 1932,” said Mrs. Willkie. “My
husband did.”
“I didn’t like it because Mr.
Roosevelt left New York State
in debt,” Mrs. Willkie added,
explaining the one-time split in
the Willkie ranks, "while he
(Mr. Willkie) thought Mr.
Roosevelt would stand on the
Democratic platform.”
Swimmer Racing
To Shore From Boat
Drowns in Potomac
Body Is Recovered by
Youth, Who Used
Rock to Submerge
James Holmes, 26-year-old drug
clerk of Mount Rainier, Md., was
drowned yesterday afternoon within
a few feet of the shore of the
Potomac River half a mile above
Key Bridge. He had leaped from
a rowboat to race companions in
the boat to land.
One of his companions, Harry
Grossman, 24, of Hyattsville, Md.,
dived in and assisted Mr. Holmes
for a while, but tired and had to
let go.
The body was recovered by Francis
C. Crampton, 20, of 3291 M street
N.W., who used a rock to submerge
to the botton of the river, 25 feet
deep. Mr. Crampton and Walter
Saylor, 21, of the 3600 block of O
street N.W., who helped dive for
the body, were swimming nearby
when the tragedy occurred.
Mr. Holmes was pronounced dead
about 4 p.m., after an hour of arti
ficial respiration by Mr. Crampton
and Mr. Saylor and members of the
fire rescue squad who were called to
the scene.
A native of Tennessee. Mr. Holmes
was employed at a Peoples Drug
Store at Fifteenth and G streets
N.W. He lived at 3854 Twenty
ninth street, Mount Rainier. Sur
vivors include a brother, Roscoe
Holmes of 1210 N street N.W.
Coward's Visit to U. S.
Defended in Commons
B* th. Associated Press.
LONDON, Aug. 6.—Noel Coward's
“contacts among certain sections of
American opinion.’’ ordinarily diffi
cult for Britons to reach, were cited
today by Harold Nicolson, parlia
mentary secretary of the Ministry of
Information, in defense of the play
wright's current visit to the United
States.
Mr. Nicolson said Mr. Coward
went abroad with the approval of
the Minister of Information and
was trying to call on President
Roosevelt, a friend of long standing.
A treasury spokesman told the
House that Grade Fields, English
comedienne, had not sought per
mission to take out more than the
regulation £10 *$*0) when she went
to the United States recently, but
had been allowed to take £8,000
(about $32,000* last October.
Monty Banks. Grade's husband,
was allowed to take out £20.000
(about $80,000* at the same time,
he said. ‘They are now on the
Pacific Coast)
Grade was born in Lancashire.
Her director-producer husband is a
native of Italy.
Banks Denies Charge.
HOLLYWOOD, Aug. 6 (£>*.—
Monty Banks declared today that
“Just because I am Italian’’ British
treasury officials “are trying to
make things disagreeable” for his
wife, Grade rields, English movie
comedienne.
“We followed the usual procedure
when we left England,” Banks as
serted.
Banks said his wife is in Canada,
giving concerts for war benellts, and
she expects to remain in Canada
until October.
Mrs. Isabella Jamieson,
Mother of Writer, Dies
Mrs. Isabella Jamieson, mother
of the late Archibald Mitchell Jam
ieson, Washington correspondent,
died yesterday in George Washing
ton University Hospital.
Mrs. Jamieson was born in Scot
land and come to this country 58
years ago. For 27 years she had
been a resident of the District. She
made her home at 712 Quincy street
N W.
Mrs. Jamieson was active in Red
Cross work during the World War.
She was a charter member of the
Woodrow Wilson Foundation.
Surviving are a daughter, Mrs.
Arthur T. Cahill, Weehawken. N. J.,
and three grandsons, Mitchell, Ball
and Philip Jamieson, all of this city.
Funeral services will be held at
10 am. Thursday at the Hines fu
neral home, 2901 Fourteenth street
N.W., with burial in Prospect Hill
Cemetery’.
Samuel A. Turner Dies;
Lifelong D. C. Resident
Samuel A. Turner. 70. of 1210 G
street S.E., retired Navy Yard
boilermaker, died yesterday at his
home. He was a native and life
long resident of Washington.
Mr. Turner retired in 1932 after
more than 35 years at the Navy
Yard. He was a member of the
International Brotherhood of Boil
ermakers and Iron Shipbuilders,
Local 450.
Surviving are four daughters. Mrs.
Elsie Graham, Mrs. Regina Edwards,
Mrs. Ann Fry and Mrs. June Wel
ton; two sons. Russell and Carroll
Turner; two sisters, Mrs. Ada Hunt
and Miss Viola Turner, and six
grandchildren, all living in Wash
ington.
Funeral services will be held at
2:30 p.m. Thursday at the home,
with burial in Congressional Ceme
tery.
Police Court Elevators
Stalled by Overloading
Two overloaded elevators in the
Police Court Building stalled be
tween the second and third floors
today, forcing occupants to climb
out by using chairs as steps. Eleva
tor service was resumed about 15
minutes later.
William D. Hartless, assistant
engineer of the building, said too
many passengers crowded on the
lifts at the second floor, the extra
weight throwing a safety switch
which cut off the power.
‘ -
Military Plane Crash
Kills Eight in Kenya
Br the Associated Press.
NAIROBI, Kenya Colony, Aug. 6.
—Eight men were killed today when
a military plane carrying 12 officers
and men of British South African
and East African forces operating
In this war theater crashed In bad
weather.
II
GASOLINE TAX HEARING—M. S. Battle (left), Virginia motor
vehicle director, and C. F. Joyner, jr., his assistant, are shown
as they appeared today at the hearing being conducted by a
subcommittee of the House District Committee on the proposal
to increase the District gasoline tax. —Star Staff Photo.
Vreeland Supports
Conscription and
D. C. Representation
New Jersey Republican
Gives Views at Guard
Camp in New York
By * Staff Correspondent of The Star.
OGDENSBURG, N. Y., Aug. 6.—
Representative Vreeland, Republi
can, of New Jersey went on record
yesterday in favor of military con
scription for the Nation and na
tional representation for the Dis
trict of Columbia.
Here for 1st Army maneuvers, as
captain In the military intelligence,
reserve, the Representative de
clared conscription "is necessary to
national defense."
“If we wish to preserve our tradi
tional freedom in this country, we
must be adequately prepared. Con
scription is the answer, and it is the
only fair way to build up our armed
forces,” he said. "There should be
no delay, because delay might might
be disastrous.”
Assigned to Public Relations.
Mr. Vreeland, a reserve officer for
a number of years, is president of
the New Jersey Reserve Officers’ As
sociation. He is assigned to the 1st
Army public relations headquarters
here for the three-week training
and maneuver period and is living
in the tent colony along with news
papermen on the athletic field of
George Hall High School, in which
the headquarters is located.
Yesterday he visited 29th Di
vision headquarters, including Dis
trict Guard units, at Rensselaer
Fall", touring the encampment with
Maj. William T. Roy, commander
of the division's special troops and
assistant parliamentarian of the
House of Representatives.
See* Protection for District.
Referring to the District's long
fight for suffrage, he said that na
tional representation should give
the District "what it needs and
protect its interest in Congress.” I
Mr. Vreeland is a member of the
House Judiciary Committee, which
reported favorably last week on the
Sumners national representation
resolution.
"My years experience on the
House District Committee proved to
me that the District, needs repre
sentation in Congress,” Mr. Vree
land said. "A District representa
tive on the District Committee
could keep all of us straight in Dis
trict affairs. I am willing to vote
for natior.al representation.”
Rhode Island Population
Rises 3.5% to 711,669
By the Associated Press.
Rhode Island's population, the
Census Bureau announced today,
increased 3.5 per cent in the last 10
years to 711,669.
This gain of the 1930-1940 decade,
however, compared with a 13.7 per
cent jump in the 1920-1930 period.
Conscription
(Continued From First Page.)
form of selective service are the best
and, the War Department is con
vinced, the only practical means by
which we can prepare to meet the
immediate situatioft.
Answering criticism by Senator
Wheeler that the Army has insuf
ficient equipment to train even the
National Guardsmen, Chairman
Sheppard of the Senate Military
Affairs Committee pointed out that
only 55,000 could be called imme
diately and the remainder would be
summoned as rapidly as facilities
become available.
No Funds for Housing or Pay.
No funds have yet been voted for
the expense involved in providing
housing or pay for the Guardsmen
at Army posts. Senator Sheppard
pointed out that the Guard would
bring its own equipment to duty.
The 55,000, he said, would be used
in training the first contingent of
conscripts to be selected from the
12,000,000 men between the ages of
21 and 31 who would register under
the Burke-Wadsworth bill.
Senator Johnson, Democrat, of
Colorado, who voted against con
scription at the committee session,
said he and other opponents ex
pected to support a substitute pro
posal prepared by Senator Wheeler
calling for registration of men from
21 through 31, but setting up only a
system of voluntary, one-year enlist
ments. The Army’s basic pay of $21
a month would be increased to $30.
Men from 18 to 34 would be accepted
for the voluntary enlistments.
Senator Maloney, Democrat, of
Connecticut said he would introduce
the compromise measure, which
would make conscription automatic
if insufficient volunteer enlistments
were obtained by a certain date yet
to be fixed.
Meanwhile, the Military Training
Camps Association asked the Senate
committee to reopen the question of
registration age limits. Sponsor of
the original Burke-Wadsworth bill,
which has been redrafted seven
times in committee, the association
asked that “registration may be from
18 to 64, or at least from 18 to 65,”
with men from 21 to 45 liable to
Army service.
i
Gas
_(Continued Prom First Page.)
writers of certain Washington news
papers treated the proposed increase
in the gasoline tax. I want the bill
to be considered on its merits. Any
attempt to speak about ‘hi-jacking'
or that the bill was asked for by the
oil companies or allied interests is
certainly going far afield. As far
as I know, no oil company has asked
for this bill."
Mr. Randolph subsequently point
ed out his long service on the Dis
trict Committee certainly should
have proved he is a friend of the
people of Washington. Then he
said:
“I resent the implication that the
bill is the act of a gentleman who
is against the District. That impli
cation is beyond comprehension.
‘‘TneJig may be no merit in the
bill, but there is merit in the dis
cussion of it. All I want to see is
a thorough discussion.”
Representative Seccombe. Repub
lican, of Ohio at that point said he
resented the criticism of Chairman
Randolph.
“I nope we won't start out with
two strikes on us,” he added.
Representatives of oil companies,
trade and civic organizations and
motor clubs crowded the commit
tee room as the hearing began. Rep
resentative Poage explained the
meeting was called primarily to take
the testimony of Maryland and
Virginia officials, but promised to
later give residents of Washington
an opportunity to express their
views.
At the same time Mr. Poage ex
pressed the opinion no attempt
would be made at the present ses
sion of Congress to seek action on
gasoline tax increase legislation—
unless the session runs far into the
fall of the year.
Mr. Battle was accompanied by life
assistant, C. P. Joyner, and William
R. Shands, State director of re
search and drafting.
Mr. Battle prefaced a prepared
statement submitted to the sub
committee by explaining that Vir
ginia and the District had been
‘‘good neighbors” for many years
and that his remarks were not to
be made in a spirit of criticism.
Twofold Problem.
‘‘Virginia faces a twofold problem
in which it is compelled to seek
means for protecting both this
source of revenue and a section of
its business which is being dam
aged," he said. “Unfortunately, the
remedy cannot be achieved in
ternally. Therefore, to meet this
situation, Virginia must have the
co-operation of its neighboring Dis
trict of Columbia. The request for
an increase in the District gasoline
tax rate is not in any sense an in
terference in the legislative func
tions of a neighbor, but is merely
a petition for assistance and co
operation in solving a problem that
cannot otherwise be settled.”
Mr. Battle subsequently com
plained that Virginia’s loss in rev
enue under the existing tax differen
tial has been “considerable.” Some
indication of the loss, he explained,
is reflected in the tax returns of
certain Virginia trucking companies
that purchase gasoline in the Dis
trict in order to obtain cheaper fuel.
“In many instances,” he said,
“these carriers earn the major por
tion of their revenue in Virginia on
Virginia highways, yet a minor pro
portion of their total gasoline taxes
is paid to Virginia.
“On the basis of miles traveled in
Virginia, a study was made of 12
carriers, and it was found that they
had failed to purchase during 1939
gasoline in Virginia in proportion to
mileage traveled by 1,051,928 gallons.
The tax on this gasoline would have
been $52,600.90, which has now, of
course, been irretrievably lost.”
Mr. Battle also said a bus line
which operated 166,440 miles in Vir
ginia last year failed to pay any
gasoline tax whatsoever to the State,
and another operated 260,424 miles
in the same period without paying
any tax.
“Virginia’s loss in revenue would
be much greater,” Mr. Battle con
tinued, “if it were not for the fact
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that Virginia gasoline dealers in the
so-called District area are selling
gasoline at District prices.
"The dealers must cut profits ac
cordingly, and this works an undue
hardship on the small operator
who is striving to maintain himself
and his family at a subsistence level.
This reduction in sales and profits
is another source of lost revenue
to Virginia by consequential re
duction in merchants and income
taxes."
At present, Mr. Battle explained, J
the wholesale oil companies are ab
sorbing one-third of the loss with
the dealer. "But we have infor
mation,” he said, "that their share
is soon to be reduced. This may
inevitably lead to the dealers’ be
ing forced to absorb the entire loss.”
later, he argued that a 4-cent
tax on gasoline in the District would
allow, without diversion of the gaso
line tax fund, repeal of the abutting
property owners' street tax, saving
property owners $300,000 to $500,000
a year, and at the same time pay
the street lighting bill, which is
now paid out of the general revenue
fund.
"If so met,” he declared, “this
would mean an additional saving of
$700,000 for the tax-paying resi
dents of the District. Additional
police and better traffic control
could be realized by allocating part
of the extra taxes to these phases
of the street system.”
Three gasoline service station pro
prietors from Alexandria. S. G.
Duncan, Morris Levy and W. W.
WoodrufT, and Harry S. Wender,
vice president of the Federation of
Citizens’ Associations, also testified.
The gas station owners said that
to meet District prices the oil com
panies absorb 2 cents of the Virginia
tax and they absorb 1 cent, reducing
their profits to 3 cents a gallon.
"That is all the profit allowed in
Texas.” remarked Representative
Poage.
Mr. Wender quoted statistics from
the Bureau of Public Roads showing
that in 1938 gasoline tax receipts
were $2,791,000 in the District and
$17,829,000 in Virginia.
Another hearing will be held by
the subcommittee tomorrow at 10
a.m. At that time Chairman Poage
hopes the representatives of Gov.
O'Conor of Maryland who failed to
show up at the first hearing will
appear to take the witness stand.
If not, he plans to hear Washington
I. Cleveland, head of the District
Motor Club of the American Auto
mobile Association.
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> 4