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D. C. SOCIETY GIRL AND HER MAID SLAIN THE WEATHER Mostly cloudy tonight and Thursday; prob ably rain Thursday night; somewhat cooler to night; moderate south and southwest winds. Temperature yesterday: Highest, 60; lowest, 35. (1931: Highest, 40; lowest, 33.) Humidity yesterday: Highest, 88; lowest, 65. Full Weather Report on Page 6 Th* Washington I'lmes Is the onl, ailernnen psper tn this city pnhllshlng the news rilitpatehes of International News Kervh-e and llnlreraal Service, Essential to Tax Smaller Incomes, Mellon Declares ' a. * . . a . - . % ONLY SYSTEM 1 TO BALANCE BUDGET House Told Higher Brackets Needed to Provide for ’’ ' Funds in Business Higher taxes on incomes, both big and little, were held by Secretary Mellon today es sential not merely for main taining unimpaired the credit of the Government, but also for reinvigorating the entire credit structure of the country through a balanced budget. Appearing before the House Ways and Means Committee as the initial witness in hearings to consider new revenue legislation to get Uncle Sam “out of the hole,” Mellon made a plea for his tax program which would in crease rates substantially to those of the 1924 revenue act. Approval of these rates would Increase Government revenues $315,000,000 this fiscal year and * $920,000,000 next year, according to estimates. • Up Goes Income Tax The program called for an in crease in normal tax rates on Incomes under SIO,OOO annually from I’4, 3 and 5 per cent to 2. 4 and 6 per cent, and a jump in the maximum surtax from 20 to 40 per cent on incomes over SIOO,OOO. The corporation tax rate would be increased from 12 to 12 Ya per cent, the estate tax increased to a maximum of 25 per cent on net estates over $10,000,000, a tax on automobiles, trucks, radios, checks and drafts, telephone, * and increases in the rates on telegraph and radio messages, tobacco products, capital stock transfers and admissions. Postal revenues should be in creased by about $75,000,000 this year and $150,000,000 next year to wipe out the post office deficit through higher postage rates, ac cording to Mellon. Protects High Incomes Mellon rapped the proposal to obtain the necessary budget bal ancing revenues from the big in comes. He said: “Leaving aside the economic' question involved in drying up, even temporarily, those liquid resources which should be available for restoring the work ing capital of industry and commerce and reinforcing' our credit machinery, a study of the figures leads to the conclusion that the necessary revenue can not be derived from this source.” All Treasury estimates are based upon “an upturn in busi ness in 1932.” Undersecretary Ogden Mills told the committee. VOTE ON REPEAL AIM OF WETS A test vote in the House on 2.7§ per cent beer may be de layed as a result of tentative plans adopted by the Republican- Democratic wet coalition. Representatives of both groups, charged with drafting a prohibi tion program, favor a vote first on repeal of the Eighteenth amendment with a “home rule” provision for States. After completing a program, the drafting committee will place the whole program before the al lied wet forces for adoption. A hearing then will be demanded by the Judiciary Committee, and if the wets ail. they will invoke a rule under which 145 members may force a vote. Committee O.K.’s Arms Expense Fund Appropriation of $450,000 to pay the expenses of the American delegation to the Geneva disarma ment conference was approved today by the Senate Foreign Reia tions Committee. An effort to slash the fund proved unsuccess ful. Defends Hawaii k T ; ■ g y — International Photo VICTOR S. K. HOUSTON HAWAIIAN DELEGATE to Congress whc has assailed Admiral Pratt, U. S. N., for alleged inflammatory statements made concerning the so-called “reign of terror” in Honolulu. LONOONWEIGHS DEBT SCHEME LONDON, Jan. 13 (1.N.5.).— The British government today was considering a French pro posal for a two-year moratorium on all war debts and reparations payments and annulment of Ger many's conditional payments on condition the United States gives up payments from the allies. Sir Frederick Leith-Ross, Brit ish treasury official just returned from Paris conferences with French financial experts, was laying the French plan before his government, according to re liable reports. Another main provision of the plan was that compensation be given the United States for sur rendering the Allies’ payments in the form of future participation in Germany’s unconditional an nuities, guaranteed by railway bonds. Administration officials were in clined to smile today rather than to seriousl.’ consider the proposal advanced by France that Ger many’s reparations payments be forgiven in return for cancella tion of Euroue’ r war deb to the United States. There is no chance whatever of the American Gov ernment agreeing to such a prop position. PEINE IN RAGE TO SAVE GIRL COLUMBUS. Ohio. Jan. 13 (I. N.S.).—The “mercy flight” by which an oxygen lung is being rushed from New York to Miss Alice Hilliard, a Louisville. Ky„ girl critically ill with pneumonia in Tucson, Ariz., was resumed here today. Pilots Stuart Reiss and Chester Pickup, forced to halt their race by unfavorable weather yesterday hopped off from the Columbus airport this morning. Although foggy conditions pre vailed over Indiana, the fliers were hopeful of overcoming the handicap. They intended to re fuel at St. Louis and leave im mediately for Tucson. When Miss Hiliard’s condition became critical yesterday the pilots departed from New York with the oxygen lung. After rain and fog had caused two forced landings at Bellefonte and Mc- Keesport, Pa., they were forced to spend the night here. CONDITION OF TREASURY Treasury balance as of January 11 $396,684,112.03. Expenditures, i $18,934,553.51. Customs receipts $11,220,943.15. I WI \S H INfiBONTI ME S NO. 15,747 U. S. REPORT BARES VICE IN HONOLULU LIQUOR, DOPE “SATURATE” CAPITAL 1927 U. S. Report Pictures Sordid Conditions; Nothing Done; Matters Get Worse By HOBART 0. MONTEE (JJopyright. 1932. by International News Service) Organized commercial vice in Honolulu runs the entire range of the bootlegger's, the dope peddler s, and the pan derer’s arts. Disorderly houses flourish in nearly all parts of the city, the inmates are, for the most part, young girls still in their teens —white girls, Japanese, Chinese, mixed-bloods, “black and tans,’’ Portuguese, and Hawaiian girls; liquor prac tically saturates the city; and “dope.’’ such as opium, co caine, morphine and other nar cotics, may be obtained with out difficulty. “Anything you want. Mister, anything at all—booze, women, games—what will you have?” Police Look Other Way This is the boast and the “sell ing line” of the touts who nightly ply their trade on numerous streets almost within a stone’s throw of the business section and some of the highest-class resi dential districts of Honolulu. Police are aware of the location and activities of scores of houses of ill fame, bootleg joints, gam bling dens and hangouts for hoodlum gangs, but have taken little or no action to close them up. Conditions Degenerate These vice conditions « Hono lulu are described in fullest detail in an official report on the situ ation written for the Federal Government after an exhaustive study of conditions there by spe cial intelligence officers in the Federal service. This report, made available exclusively to International News Service, was submitted in 1927. But upon the authority of the officers who wrote the report, it was declared today that con ditions in Hawaii have degen erated since, rather than im proved. Pandering, Collecting Discussing the Ala Moana Road, where Mrs. Thomas H. Massie, wife of a young naval officer, was criminally attacked by five natives who had abducted her from a street in the Waikiki section, the report said: "Squattersville, situated on Ala Moana, on the side toward the mountains, near the Wai kiki drainage canal, consists mainly of hastily constructed shacks—infested with bootleg gers, and, in many cases, women of ill repute. “The streetwalkers and ‘hang, ers-on' at dances, etc., use Kapiolani Park, Kahala Park, (Continued on Page 2, Col. 2) 5 260 IN CASH AWARDS WILL BE GIVEN THE WINNERS OF THE SLOGAN CONTEST APPEARING TODAY in The W’ont Ad Pages ' CHINESE ASK 9- POWER PARLEY Reply to U. S. Cites Washing ton Treaty; Japs to Deny “Open Door” Curb (Copyright. 1932. by International News Service) SHANGHAI, Jan. 13 (1.N.5.). i China, in replying to the Man : churian note dispatched from the United States by Secretary of State Hetrry L. Stimson, supported the American views. In addition, it asked for an international conference for settlement of the Manchurian controversy. The note strongly advocates invocation of the nine-power Pact guaranteeing Chinese adminis trative integrity, declaring that without such invocation the Far East is doomed to chaos. Sun Fo resigned today as minis ter of finance in the new Nation alist cabinet. Sun Fo and his vice minister quit their posts when local bankers withdrew their support from the new gov ernment. The plant of the Chinese , newspaper, Republican Daily News, at Tsingtao was wrecked 1 today, allegedly by Japanese who i resented the publication’s han dling of the story of the recent bomb attack upon Emperor Hirohito of Japan. The headline on the story described the failure of the attempt on the Japanese ruler’s • life as “unfortunate.” The office of the newspaper i was burned and seriously : damaged. Japanese Note to Deny “Open Door” Hindrance TOKYO, Jan. 13 (1.N.5.) .—The Japanese reply to the recent ! American note invoking treaty rights with respect to Manchuria i was completed today and will be submitted to Premier Unukai to morrow. It will be delivered to morrow afternoon. I Japan will give the strongest as surances, that she has not and does not intend to violate any treaties with regard to China and will also declare that the “open door” is being maintained in Man churia in the widest sense. NBSlmffl FAR AHEAD LITTLE ROCK, Ark., Jan. 13 (IJJ.S.).—Mrs. Hattie Caraway today was virtually sure of being the first woman ever to be elected to -he United States Senate. Incomplete and unofficial tabulation of 47 counties today gave Mrs. Caraway a plurality of nearly 12,000 votes over the combined total of her rivals. Mrs. Caraway’s opponents were Rex Floyd, of Yellville, and Sam D. Carson, of Detonti. Both ran as independents. Norwegian Tariffs Raised 20 Per Cent OSLO, Jan. 13 (I.N.S.).—A bill increasing customs duties by 20 per cent was passed by the Norwegian parliament today. Spe cific tariffs on coffee and sugar were increased 15 per cent. Flames Trap 15 Boys, Firemen Save Them I TULSA. Okla., Jan. 13 (1.N.5.). Trapped by fire on the second floor of the boys’ home. 15 youths were dramatically rescued by fire ’men here today. WEDNESDAY, JANUARY 13, 1932 SIGNING CON FESS ION TO CHILD SLAYING Jr o 'W f y * —-International Photo BISCHOFF SHERIFF BUTTERFIELD CHARLES BISCHOFF, 45-year-old shoemaker, is shown signing the statement in which he admitted the murder of Marion McLean, 6, in the basement of a Cin cinnati tenement. Sheriff Butterfield is witnessing the signing of the confession. BONES BELIEVED CHIEU REMAINS CINCINNATI, Ohio, Jan. 13 (IJN.S.).—While Charles Bischoff, 45-year-old Cincinnati cobbler, al leged confessed murderet of Marian McLean, 6, faced arraign ment here today on a first degree murder indictment, county officials bent every effort to de termine whether bones unearthed late yesterday in the cellar of his tenement house were those of a human being. County Prosecutor Robert N. Gorman believes the bones might be those of two small girls who mysteriously vanished two years ago. Liberties Union Asks W. Va. Return Miner PITTSBURGH. Jan. 13 (I N S.) Asserting the “sovereignty of the State of Pennsylvania has been outraged,” officials of the Ameri can Civil Liberties Union here to day made a formal demand on Gov. Gifford Pinchot that he ask West Virginia authorities to return Frank Pauletta, Coverdale miner, allegedly “kidnaped” across the border to face a 17-year-old death warrant. Blizzard, Sweeps Mountain States DENVER, Jan. 13 (I.N.S.).—A wind and snow storm swept the Rocky Mountain region today. An ice jam under a bridge across the San Juan River caused a flood which threatened to drive 200 Indian children from their dormitories at Shiprock, N. M. Hoover’s Grandson Still “Pretty Sick'’ PASADENA, Calif., Jan. 13 (I.NS.).—Herbert Hoover, 3d, 4- year-old grandson of the Presi dent, was gaining strength to day following an operation for infected sinus. Physicians said he was still “a pretty sick child.” Georgia Editor Urged For Farm Board Senator Harris <D.) of Georgia visited President Hoover today and recommended C. A. Cobb, farm paper editor of Atlanta. Ga.. for appointment to the vacancy on the. Farm Board, THREE CENTS Mrs. Illsley a Leader In Hunt Club Circles MIDDLEBURG. Va., Jan. 13. Mrs. Spencer Ulsley, who was found murdered here today, was prominent socially in New York, Philadelphia, Washington and Milwaukee. Mrs. Ulsley was one of the leaders of the Middleburg hunt ing set, which for years has made this old section of Virginia fash ionable playground for horse lovers from metropolitan centers. She maintained a large house in the village, a stable of excellent horses, and was a frequent guest at the large estates which sur round the village. Not far away Raymond Bel mont has an extensive breeding establishment. Brig. Gen. William Mitchell, former chief of air ser vice. also has an estate nearby. Mrs. Ulsley has been coming BRISTOL MS FOR NAVY BILL Declaring an adequate Navy is the most effective means of pre venting war, Rear Admiral Mark L. Bristol, chairman of the Navy General Board, called on Con gress today to enact the Vinson bill, authorizing a 10-year $616,- 000,000 Navy building program. He told the House Naval Af fairs Committee, considering the bill, such a measure would serve notice to the rest of the world the United States intended build ing its Navy up to treaty limi tations. He said such a building pro gram would excite no foreign na tions, but would simply outline a logical program. 1,500 Brazil Cattle Perish in Heat Wave RIO DE JANEIRO, Jan. 13 (IKJS.)<—Terrific heat which has been beating down upon the northwest sections of inner Bra zil reached a climax today. Resi dents of small villages of the lo cality, facing starvation as a re sult of the drought, fled to Lit total for refuge. More than 1,500 head of cattle were killed by heat. - , , to Middleburg for some years, and since the death of her hus band a year ago she has main tained her home here. PHILADELPHIA, Jan. 13 (I.N.S.)—Mrs. Spencer Ulsley was well known here, according to Ed ward Ulsley, a cousin by marriage. Spencer Ulsley, the woman's husband, was the cousin of Ed ward Ulsley, secretary of the Devon horse show here and a member of exclusive clubs. MILWAUKEE. Jan. 13 G.N.S.). Mrs. .Spencer Ulsley, found mur dered in Middleburg, Va., was the second wife of the late Spencer Ulsley. The Illsleys resided here before going East. The Ulsley family was prominent in banking circles here and Spencer Ulsley was one of Milwaukee’s wealthy citizens. SINCLAIR SEALS VIST MESSER INDEPENDENCE. Kan., Jan. 13 (I.N.S.).—Merger of the Sinclair Consolidated Oil Corporation and the Prairie Oil and Gas Company was announced here today by W. S. Fitzpatrick, chairman of the board of the Prairie company. Total assets of the new com pany will reach the $600,000,000 mark, with the Prairie companies contributing $195,962,791 and the Sinclair properties $404,860,463. This will make the new organiza tion one of the largest independent oil companies in the world. Reapportionment Act Is Voided by Court SPRINGFIELD, 111., Jan. 13 (I.N.S.).—lllinois must retain its 25 congressional districts as they have stood since 1901, the State Supreme Court ruled today, de claring unconstitutional the reap portionment act passed by the as sembly to create 27 districts. U. S. Business Shows Sectional Advances Year-end reports from many : sections of thecoun tr y. announced by the Commerce epartment to i day. that tr -ir „. generally was I holding its own with improve ment in some sections. FINAL I ■ ■ U lil Em EDITION D.C. BEAUTY ANO MAID SLAIN IN COTTAGE Mrs. Spencer Illsley and Aide Killed After Desperate Fight for Lives Special to The Wnshlnsrton Times MIDDLEBURG, Va.,Jan. 13.—Victims of an atrocious attack, Mrs. Spencer Illsley, beautiful society widow of Washington, New York and Milwaukee, and her elderly maid, Mrs. Annie Buckner, 62, of Rockville, were found dead in their home here today, their skulls crushed and bodies prac tically nude. The discovery was made by Paul Boeing, brother of Mrs. Illsley. when he called at the house this morning. The bodies were found ini what is known as the “little house,” about 50 yards to the right and rear of the “big” house, which fronts on the highway in the heart of the town. Struggle Preceded Death Mr. Boeing had spent the night in the “big” house, which has been let by Mrs. Illsley for the winter, supposedly to Mrs. Ruth Hanna McCormick. Mrs. Illsley was found in her own room on the floor, which bore evidence of a terrific strug gle, chairs, lamps, and other fir tures being overturned. Fr and head were badly gashed, body was clad only in a slip. The maid was found in own room, the body half on bed and half off. She was tirely nude and the bed was . disorder. The maid’s room was separated from Mrs. Illsley’s room by a nar row hallway which bisects the small cottage. A lookout today was broadcast to all nearby police for a colored man wanted in connection with the murder. The description reads: “Look out for and arrest George Crawford, 40, colored; five feet, eight inches tall, in a Ford Victoria 1931 model coupe. The car has Virginia tags and is dark blue with cream-colored wire wheels. It is slightly damaged on one side as the result of a recent acci dent.” Crawford did some work for Mrs. Illsley about a year ago and The authorities also are seeking one of Mrs. Illsley’s two automo biles, missing from the garage. The cottage is located practi cally on a side street and is al most surrounded in a semi-circle by houses, some less than 15 (Continued on Page 2, Col. 5) In The Times Today Page Automobile News io Comics 18, 19 Death Notices 24 Dramatics 12 Fashion News..... 8, 13, 19 Financial News 20, 21 Magazine Page 13 Radio ; 21 Seldes’ “True to Type”....Local Society g Sports 22, 23, 24 What’s Doing 8