Indianapolis Times, Volume 32, Number 267, Indianapolis, Marion County, 17 March 1920 — Page 1

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VOL. xxxn. NO. 267.

REDS BATTLE FOR RULE OF GERMANY

SCHOOL DIRECTOR SPENDS THOUSANDS IN CASH ILLEGALLY State Board of Accounts’ Investigation to Show Hitt Violator of Rules in Handling of Funds in Various Building Improvements. This is the first of a series of stories dealing with the manner in which the affairs of the school city of Indianapolis have been conducted. Other stories will appear from time to time. When the state board of accounts completes Its examination of the affairs of the city schools, it will, unless interfered with, report that George C. Hitt, business director, has expended thousands of dollars without authority, in direct violation of the rules of the school board and in some cases in direct vitiation of the laws of Indiana. It will learn that although the school board has now and has had for many years a rule limiting the expenditures that can be made without specific contracts to $2,500, there have been dozens of cases in which vastly greater sums have been spent by direction of the business director without contracts, without any authorization and in some cases without even the knowledge of the members of the school board.

This condition of affairs, which Ist responsible for the action of a school board member recently in Introducing a resolution calling for the transaction of business in accordance with the rules hereafter, has been coming to light ever since last fall, when it was discovered that an authorization for the expenditure of $2,500 on the repair of schoo, No. 59 had been interpreted so as to result in the expenditure of $17,292.15, according to a report, made by Mr. Hitt. EXAMPLE PROVIDED BY SCHOOL NO. 59. School No. 59 is tb e school operated •in connection with the Indianapolis Orphans' home. The orphans' home is a privately conducted institution, but the city maintains a school for the children and supplies teachers. The city, however. does not own the ground on which tbe school is situated. Acting on legal advice, the board once decided not to make any extensive improvements to the school building, pteferring to make improvements on property actually owned by the school city. Mrs. Hitt is oue of tbe directors of the orphans' home. previously to the time Mr. Hitt became business director of the schools an attempt was made to secure the remodeling of this school building at a heavy outlay. It failed. After Mr. Hitt became business director the project was taken up again and Mr*. Hitt is directly quoted by another member of the or phans' home board as having remarked that “now that Mr. Hitt is with the school board we can get something from It.” Whether the remark was made or not is Immaterial in the light of developments. The minutes of the school board show an authorization of the expenditure of $2,500. Tbe report of the business director shows that $14,792.15 more than waa authorized has been expended on this Job alone, and there are some interesting details concerning some of these expenditures that will make another story of importance to the people of Indianapolis who foot the bills. ILLEGAL SUM SPENT ON SCHOOL NO. 4. The second largest amount spent in violation of the rules of the board was spent at school No. 4. Tbe cost of this improvement amounted to $15,340.19, Mr. Hitt’s report says. This is $12,940.18 in excess of the $2500 limit. There are two buildings at school No. 4. One of them is a very old building and the other is newer. The appraisers of the school board recommended that no more work be done on the old building. Despite this fact, Mr. Hitt caused extentive Improvements to be made there. Board members say this was done without their knowledge and consent, and the board minutes do not show any authorization for it. At school No. 23 a total of $9,794.61 was spent w-itbout tbe issuance of a contract, Mr. Hitt admits. This amount is $7,294.64 in excess of the $2,500 limit. The following other excessive expenditures were made on grade schools without the issuance of a contract: School No. 26, $6,136.19; school No. 32, $4,598.09; school No. 30, $2,974.18. Improvements were made at every school building in the city, according to Mr. Hitt's report. Contracts actually were let for improvements on eight grade school buildings, the report shows, in two cases these contracts were for amounts less than amounts spent on some of the buildings without the formality of contracts. EIGHT CONTRACTS LISTED IN REPORT. Contracts, according to the report, were let as follows. School No. 10, $35,676; school No. 12, $33,168; school No. 13, $44,910; school No. 14, $35,992.50; school No. 16, $2,970; school No. 29, $59,570; school No. 39, $24,396; school No 41 $12,064. On Jan. 12, 1020. Mr. Hitt, at tht orders of the school board, submitted a report of expenditures made in the improvement of school buildings. This report, according to best information obtainable. was unique in that never before have the school boards of this city required such a document. With the filing of this report, the fact that work amounting to thousands of dollars was being done and had been done in direct violation of the rules of the school board as to contracts and authorization, was brought to public attention. Mr. Hitt’s report covering the last six months of 1919 shows that improvements of more than $2,500 were made si each of six school buildings without the formality of the contract required in tbe rules of the board. There is no record on the minutes of the board to show that tbe rule re(Continned on Page Seven.)

Haug-h’s Demurrer Up to Judge Moll Judge T. J. Moll of snperor court, room No. 3, today was considering a motion to sustain the demurrer of J. Guy Haugh, who was sued for $25,000 damages by his divorced wife, Mrs. Marguerite Haugh, for alleged injuries sustained when Haugh is said to have Struck her with a snow shovel on Jan. 15. '3918. Argument on the demurrer eloseed late yesterday and prior to that Haugh dismissed his motion for a change of venue from Judge Moll.

Published at Indianapolis, Entered as Second Ciaas Matter, July 25, 1914. at Ind., Dally Except Sunday. Postofflce, Indianapolis, Ind., under act March 3, 1879.

All Right , Shoot! Says President WASHINGTON, March 17. President Wilson submitted to the photographers today for the first time since his illness. The president went for an automobile ride and agreed to allow photographers to take his picture as he drove from the whitehouse grounds. Police officers have driven photographers away from the entrances of the grounds when the president was leaving heretofore. The president’s chauffeur was ordered to drive slowly for the benefit of the photographers. A battery of photographers went into action when the president left the whitehouse and the chief executive smiled and waved in recognition to the men. lifting his cap and turning from right to left so all of the camera men might get a fair chance to picture him. Dr. Grayson and Mrs. Wilson accompanied the president.

Wife Dead in Trunk; Police Seek Spouse NEW BRITAIN, Conn., March 17.—The body of Mrs. Anna Evans. 20, was found in a trunk In her apartment here today. She had been strangled by her little son's toy reins, which were knotted about her throat. The police are searching for her husband. George Evans. Communists Sow Unrest in Mexico AGUA PRIETA, Sonora, March 17Large quantities of communist literature encouraging n rebellion by the society of Mexican Freemen have been discovered by Mexica secret ageqts in this state. Two foreigners were arrested. Central American to Unite MEXICO CITY, March 17.—The news paper Excelsior says the republics of Central America have formed plans to unite themselves tinder one government, beginning Sept. 15, 1921, centennial of their independence. Final Plea Begun in Newberry Case GRAND RAPIDS, March 17.—Senator Truman H. Newberry and bis elgbtyfour associates in United States district court for election frauds, engaged in the 1018 Michigan campaign to send a militant man to the senate, .Tames Murfln stated today In addressing the jury. Martin W. Littleton is making the final argument for the defense.

Sends Nomination of Roper’s Successor WlfcllAMK. WILLIAMS WASHINGTON, March 17.—The president this afternoon sent to the senate the nomination of William Martin Williams of Alabama to be commissioner of Internal revenue in place of Daniel C. Koper, resigned.

$300,000 BLAZE RAZES FACTORY ON SOUTH SIDE Cigaret Stub Believed to Have Started Fire Which Guts Chapman-Price Plant. WORKERS FN CLOSE CALL Fire destroyed the plant of the Chapman-Price Steel Company, South Madison avenue and the Belt railroad, this morning. Officials of the company said the loss may reach $300,000. Fire was discovered in the paint shop in the east end of the plant by Guy Arnold, foreman of the paint shop. He and other workmen made a desperate effort to put out the flames, but they reached two barrels of paint and the fire then spread rapidly. In one hour after the first alarm was sounded the roof of the plant collapsed. Three fire calls brought a large part of the fire fighting apparatus of the city to the scene of the tire, and streams played on the fire from all sides. Reports that could not he verified were that someone threw aside a lighted cigaret which fell in oil nr acid in the paint shop and an rxpl&slnu followed. Officials of the company said there wu* an order against smoking in the paint shop. PLANT BiII,DING 325 FEET LONG. The manufJcturine plant consisted of one enormous building 325 feet long and 200 feet wide. Its structure was heavy timbers and a metal roofing. The building is as tail aa an ordinary twostory building, but there was but one Hour to it. The company employed 150 men. The office building, which was not damaged, is 150 feet from the main plant. Fanned hv a strong wind from the northwest, the fire endangered mauv other buildings In the neighborhood. When the roof fell In embers shot Into I lie air and sparks dropped on several houses south of the steel plant. When firemen first arrived there were roof fires in twenty houses south of the plant. The flames were quickly extinguished. Only the fact that these houses were 150 feet from the burning building saved them from destruction. CORDAGE PLANT ESCAPES FLAMES. One end of the big plant of the Indiana polls Cordage company. Meridian street and the Beit, abuts the steel factory, but the wind carried the flames past this building The cordage company suffered h%avy tire loss several months ago. The Chapman-Price company manufactures metal products, including steel washing machines, steel tanks, galvanised troughs and roofing. Officers of the company are Niles Chapman, president; J. Howard Little, secretary; L. H. Price, treasurer, and It. 11. Lewis and George Harele, vice presidents. Mr. Price and other officials Inspected the ruins after the flames were under control. “It doesn't seem possible that a building of that type could he so completely destroyed." said Mr. Price. “The building was erected nine years ago and a new wing 200x50 feet had Just been coru(Continued on Page Two.)

DAKOTA STORM FATAL TO FIVE Four Sons of Farmer, School Teacher Freeze to Death. ABERDEEN, S. D., March 17.—At least five persons died In a blizzard which for two days almost Isolated the state. Belated telegraphic reports today from Ryder, S. D., said four sons of Oust Wohlka, farmer, froze to death on their way from school. Three died In the wagon when their team became ex hausted. The fourth, setting out ou foot for help, died In the road. The heroism of Hazel Miller, 18, school teacher, saved two lives, hut cost her own. She wrapped her coat about a young brother and sister when their wagon overturled. Rescuers found her dead. Bars Payment for Birth Certificates An order prohibiting local health officers from charging fees for Issuance of birth certificates was sent tout today by the state board of health. Under the legislative act creating the state industrial board employers of children are required to ascertain ages of juvenile employes by looking at their birth certificates. Parents are required to register tbe births of children. Some health •officers have been charging fees of from 23 cents to $1 for issuing certificates. 105 Vessels Held Up by Shoremen’s Strike NEW YORK, March 17.—TKfe strike of longshoremen on coastwise steamship lines was at a deadlock today, with more than 200,000 tons of shipping lying Idle in Atlantic ports. The strike has tied up 105 coastwise ships, oniy thirty of which are passenger liners. Eighty-five vessels are held in New York harbor. Would Have Seasons Fix Coal Freights WASHINGTON, March 17.—Freight rates on coal would be Increased 15 per cent in winter and decreased 15 per cent in slack seasons, under provisions of a bill .introduced In the senate this after noon by Senator Frelinghuysen, republican, of New Jersey. Two Reported Killed in Missouri Wreck SEDALIA, Mo., March 17.—The engineer and fireman of a Missouri, Kansas & Texas passenger train are reported killed and several injured as a result of derailment of the train at Lewis station, near Clinton, today.

INDIANAPOLIS, WEDNESDAY, MARCH 17, 1920.

THE EMBLEM OF THE DAY. CITY’S WEARIN’ TH’ GREEN FOR ST. PAT TODAY Usual Parade to Be Followed by Mass Meeting at Tomlinson Hall. Children of Gael Spurred by Valera WASHINGTON, March 17 -Edward De Valera, “president of the Irish republic," today issued the following St. Patrick's day statement; "Sons and daughter* of the Gael, wherever you tie today, in the name of the motherland, greetings. "Whatever tlag be the flag you guard and cherish, it Is consistent with your highest duty to band your--elves together, to use your united strength to help break the chains that bind your mother. “We are at the spear points of the hosts in political slavery. We can be the shafts of dawn for the despairing and wretched everywhere. "You can so easily accomplish that which l* needed. You have only to have the will, the way 1* so clear."

Erin go Brugh!—lreland forever! This was the day of all day* for the Irish. those of Irish descent and other* who enjoy the spirit of St. Patrick's day. It wa* the day for wenrln' o' th' green and Indianapolis generously responded with the color* honoring the patron saint To be ure there n something in the air which carried out thy thought of the day. Real shamrocks were scarce, but green ribbons green tinted carnations end green necktie* were plentiful. MORE SERIOIS THAN I'BL'AL. And on this St. Fatrlck's day there seemed to be an air of more sincerity. Linked with the customary festivities was the more pronounced demand foi “Irish freedom.” Then, too. Impetus wa* given the Irish freedom bond drive. The usual parade, under the direction of the Ancient Order of Hibernian*. In which many organizations took part, wa* held, starting st 2 o'clock. Hundreds were in line. After the parade the marchers moved to Tomlinson hall, where a monstr mas* meeting w* held. The parade was In three- divisions, women marching as well as men. A band led each division. There were a number of floats. T ,T. Blackwell was grand marshal with P. J. Sheridan, Thomas O'Connell, Anthony Sweeney aud Eugene Shine his assistants. Timothy Harrington, past grand knixbt of the Knights of Columbus, presided at the mass meeting. William M. Moran of Matoon, HI . district attorney, was to give the principal address. DEVALEKA PLEADS IRISH FREEDOM. A message from Kumon DeVatera, “president of the Irish republic," was rea( by William Barrett, secretary of the St. Patrick's day committee, in the mes sage DeValera pleaded that Indianapolis Irish keep up their tight for (he “freeing (Continued on Page EleTcn.)

HOOVER DENIES HE’S CANDIDATE (Again) Refuses Use of Name in New Hampshire Primaries. CONCORD, N. 11., March 17.—Robert Murehie, national democratic committee man from New Hampshire, today made public a telegram from Herbert Hoover to Huntley N. Spaulding, food cominis sinner for New Hempshire, in whieo Hoover elated he could not approve of the use of his name as a presidential candidate in the primaries. Tho telegram, dated Washington, March 5, read: "I see by the press and letters from friends that my name is mentioned for the democratic primaries in New Hampshire. I would be glad if you would inform the democratic authorities that while I am highly sensible of the great honor Implied in the desire of many friends to place my name in nomination as a candidate in the democratic primaries, I feel It Is due to them to state that I am not a candidate and therefore can not approve of the use of my name for that purpose.”

Senate Tables Irish Independence and Subject Peoples Questions WASHINGTON, March 17. —The senate today laid on the table the question of Irish independence along with the whole question of selfdetormination for subject peoples.

By a vote of 54 to 21, the senate tabled, the reservation to the treaty offered by Senator Owen, Oklahoma, stating that the United States understood that the British protectorate over Egypt would lie ended. The reservation carried an amendment recognizing the Irish republic and stating that the United States understood that Gr-at Britain would also recognize Irish independence and further amendments of the same import as to Korea, the Philippines, Porto Rico and Hawaii. Establishment of a separate peace between the United States and Germany

TAX DEADLOCK IS BROKEN AND COLLECTION ON County Treasurer Agrees on Procedure Following Injunction Suit. ONLY ONE INSTALLMENT Marion county taxpayers may now pay the first installment of their taxes. Through an agreement entered into by Ralph Lemeke, county treasurer, and the taxpayers who obtained an injunction ngalnst collecting horizontal increases le.'led by the state tax board, with the consent of the courts, the treasurer's office has started the collection of taxes. Only the first installment of the taxes will lie aeeepted at this timv, atll the receipts will be stamped with the sf dement that if the supreme court finds the horizontal Increases illegal they will be deducted from the second Installment. AGREEMENT MEANT TO AVOID OELINQI ENCY. Kmslev W. Johnson, who represents the plaintiffs In the case protesting a horizontal Increases said he consented to the collection of the first Installment of taxes because of the nearness of the first Monday In May. the last day on which they mnv be paid without becoming delinquent. Under the law taxpayers are permitted to pay their current taxes any time between Jan. 1 and the first Monday in May. Because the injunction granted by the Marion county superior court, which is still pending In the higher courts It has been impossible up to this time to pay taxes. Asa result of this long delay the trasurers' office is ex peeting an unprecedented rush during the next six weeks. PETITION SEEKS •O TRANSFER CASK. The case is still In the appellate court. The court reversed the decision of the lower court. Later anew hearing was asked and this was denied. There is a petition r.ow pending In the court to transfer the case to the supreme court. It will then be necessary for this court to pass or It. Attorneys In the case be. lteve this ran no* l>e done before the first Monday in May and for this reason they consented to the immediate acceptance of the first Installment of taxes. The state tax board today authorized a temporary loan of $250,000 for the city of Indianapolis. Controller Robert H Bryson was preparing to make the loan in the near future to meet salary expenses. Although the collection of taxes began today it probably will be sometime before the city receives enough money from the treasurer to meet its current exjienses.

GIRL, HAZED, MAY BE LEFT CRIPPLE Tries to Escape on Sheet Rope, Falls Three Stories. rniCAOO, March 17.—Northwestern ! university authorities today began an Investigation Into the hazing of Miss Eliz- | abeth Chapman, president of the fresh j man class, from which she may be a | cripple for life. She was abducted by j Vernle Carroll, president of the sopbo- ! mure ciass, and Joseph Guthrler and ; locked In n third story room In the ! home of Mia* Elizabeth Kroeaen, a co-ed. i Becoming hysterical, Mljs Chapman made a rope out of bed sheets and endeavored to make her escape by sliding to freedom. The rope gave way, however, and the girl fell three stories to the sidewalk, fracturing an arm and Injuring her spine. Her abductors were, roughly bandied later. Tbe university authorities endeav j ored to suppress news of the hazing. COP ( DROPS UV’ OIW POKER GAME Opens Easement Window and Drops Fifteen Feet. Patrolman Renjamtn H. Gaither found a way to raid a poker gßtne and get the evidence It the same time. 110 and two other officers watche a game In a basement at 12 North East street through a window for two hours. Gaither decided to take no chances on the usual method of entrance. He quietly opened the basement window | and dropped fifteen feet to the floor. | The surprised players eould do notb- ' ing. Gaither confiscated 65 cents and a ; deck of cards. All the men pleaded guilty to gambling In city court today ! ;ind were fined $5 each. A charge of keeping the game, which had been placed ifgulnst n man giving bis name as Kay | Smith, did not draw an added fine. Court Nulls Texas ‘Disloyalty Act’ AUSTIN, Tex., March 17-The Texas “disloyalty net" was declared unconstitutional by the court of criminal appeals today In discharging the case of Ben F. Meckel, charged with having used abusive language against the United States government. “Tlio prohibition of the use of rtlsI lo.vnl language as a war measure Is admittedly the subject of federal legislation and ndt. within the regulatory power of the state,” Bald the court decision.

and Austria, 6hould tb> peace treaty fall, will be authorized In a resolution to bo introduced in the house by Representative Britten of Illinois. This resolution will provide also for a European trade council to make arrangements for the resumption of the commercial Intercourse with Germany and Austria. This council is to consist of secretaries of commerce, labor, treasury and state departments, -the chairman of the shipping hoard and a representative of the federal trade commission.

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Machine Guns Rattling in Berlin; Many Killed

Germany's Casualty List Mounts Into Hundreds in 4 Days' Fighting NEARLY seven hundred persons have been killed and hundreds wounded in fighting resulting from the German eounter-revoli\tions since Saturday, according to compilations by the United Press today. Unofficial dispatches revealed the casualties distributed as follows: Kiel—4oo to 500 killed, many wounded. Berlin—Sixty killed, large number wounded. Dresden—Fifty-nine killed, several hundred wounded. Essen—Thirty killed, eighty wounded. Hagen—Twenty-three killed, many wounded. Frankfurt—Twenty killed, 200 wounded. Dulsberg—Fourteen killed, eighty wounded. Leipzig—Nine killed. Hanover—“Some" killed. Schwerin—“Bloody fighting." Breslau, Hamburg, Weimar and Gorlitz—“Fighting.”

CITY MULES GET CHANCE TO KICK Scale of $1.25 a Day, Home and Feed Fixed for Them. The wage scale for city mules of the Winnings & Garrigus Company was today set at $1.25 a day In a contract signed by members of the board of works for beip during the coming year. Under the contract the Winnings & Garrigus Company will furnish any number of mules up to forty on demand of the city. The mules, when In use. will be housed and fed at the expense of the city. It will be their duty to perambulate about the streets for eight bourn each day hampered by certain impodiroentla consisting of various ash and refuse wagons. Plans for extensive improvements on Market street were approved by members of the board. They will consist of pavements between Alabama and a point 305 feet east of Capitol avenue, at an estimated cost of $49 876.70. Plans were ordered for eight improvements and preliminary orders for material made on seven. Canadian Prairies in Grip of Blizzard VANCOUVER, B. C., March 17—The terrific blixzard driving its way through the Canadian prairie provinces has not absted today. The wires are seriously impaired. In Manitoba the blizzard is the worst experienced there in years. U. S. to Buy 10 Million Barrels of Oil at $2.07 WASHINGTON March 17.—The shipping board today decided to enter Into a private agreement with the Standard Oil Company of NVw Jersey the Mexican Petroleum company and one other big corporation to provide 10,000.000 barrels of fuel oil at a price averaging $2.07 a barrel.

State Gains 30,000 Income Tax Payers Thirty thousand more Hooslers paid Income tax this year than last. Collector of Internal Revenue William L. Elder added this prosperity note today while merging from the rush of j business. Although the rate of tax is less this year, Mr. Elder believes that the total amount of collections will not be much less than last year. The estimated amount of Income tax paid by Hooslers is $20,000,000. 200 U. S. Civilians Face War Perils in Berlin PARIS, March 17.—There are more than 200 Americans iu Berlin, Including thirty women. The women, for the most part, are wives of newspaper correspondents and business men who wene to Germany seeking trade. The Red Cross has sent funds to the Red Cross representatives at Berlin and is preparing to rush truckloads of food if actual famine is threatened. Indianian Cousin of Martha Washington KOKOMO, Itid., March 17.—Mrs. Phoebe Hurst, a second cousin of Martha. Washington, celebrated her eighty-second birthday today. Mrs. Hurst’s grandmother, Mrs. Sarah Hayman Lawson, and Martha Washington were sisters. Mrs. Hurst makes her home with her daughter, Mrs. S. A. Richey. ASKS 3.5 BEER IN MARYLAND. ANNAPOLIS. Md„ March 17.—With the unqualified Indorsement of Gov. Albert C. Ritchie, a hill legalizing the manufacture and sale of 3.5 per cent beer was taken up f jT consideration today in the lower house of the Maryland assembly. I^THEWENTHER Local Forecast—Fair tonight, with lowest. temperature 25 to 30 degrees; Thursday, Increasing cloudiness. HOURLY TEMPERATURE. 6 a. m 32 7 a. ni 31 8 a. m 31 9 a. m.., 31 10 a. m 33 11 a. m 35 12 (noon) 37 1 p. m 37 2 p. m 39 One year ago today, highest temperature, 61; lowest. 40. Additional weather reports on page 2.

Bulletin Flashes on German Crisis COPENHAGEN, March 17. Seventeen persons were killed or wounded in another burst of fighting between spartacists and German troops at Hamburg, it was learned from that city this afternoon. LONDON, March 17.—A Central News dispatch this afternoon reported that Gen. Noske's troops had taken possession of Munich. Noske is minister of defense In the Ebert government THE HAGUE, March 17.—An autonomous communist state was proclaimed in upper Silesia late Tuesday, but the supporters of the movement were overpowered by Von Kapp’s troops, according to news from Berlin today. COLOGNE, Germany, March 17. —Several thousand armed workers from Solingen are marching on Elberfeld to give battle to Von Kapp troops. BERLIN, March 17. The “white terror” has arrived. A number of communist leaders have “disappeared without a trace.” Army officers supporting the Von Kapp regime at Berlin report that the German bolshevists plan to proclaim a soviet republic and replease the 200,000 Russian prisoners of war still held in Germany. Chicago Gas War Taken Up by State CHICAGO. state public utilities commission here today took up the gas rate situation brought to a head by threats of gas house employes to strike. Company officials said if the men’s <!< mauds were grauted rates would have to be raised.

Mrs. Daniel G. Reid Granted a Divorce NEW YORK, March 17.—Mrs. Margaret Reid today was granted an lnterlo--1 eutory decree of divorce from Daniel G. ! Held, known as the “tinplate king,” by j.lustlce Finch lu supreme court. “It was brought out during the brief ! hearing that Reid had made a financial j settlement on Mrs. Reid of $200,000 In 1 cash and $.10,000 a year in allowance. Says France Deals With Bolsheviki PARIS, March 17.—The French hare opened official negotiations at Copenhagen for the release of the French prisoners held in Russia, It was revealed today by Marcel Hutin In the Echo de Paris. I'p to this time the French have persistently refused to deal with the bolsheviki. There Is no official confirmation of Hutln's announcement. No Tax Reduction Till 1922—Houston WASHINGTON, March 17.—Federal income taxes can not be reduced until after 1922, Secretary of the Treasury Houston today Informed the house ways and means committee. He declared, however, that revision of several of the present federal taxes should be niade and revenues adjusted to make up for the loss the government will sus- j tain as a result of the supreme court decision that dividends paid in stock are non-taxable. Palmer Says H. C. L. War Up to People DETROIT. March 17.—Attorney General A. Mitchell Palmer, commander in chief of the federal battle against the high cost of living, i dmitted here the fight is a hopeless one. “The government can combat only the subsidiary causes of the high cost of living," Palmer said. “The main burden rests with the people themselves. If people would apend 10 per cent less and work K> per cent more, prices would drop i yuickiy.”

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TWO CENTS.

U. S. CITIZENS TAKE REFUGE AT EMBASSY Von Kapp Out! BULLETIN. EERLIN, March 17 (4 p. m.). — Wolfgang von Kapp, chancellor in the revolutionary government, has resigned, it was officially announced this afternoon. Soviet Proclaimed BULLETIN. LONDON, March 17.—A soviet has been proclaimed in the suburbs of Berlin, said an Exchange Telegraph dispatch from Paris this afternoon. BERLIN, March 17.—A terrific struggle for possession of Berlin is in full swing. The conflict began Tuesday afternoon at 4 o’clock, the hour set for the general strike, when spartacists seized the Strassburg and Vogelburg railway stations in the suburbs of Berlin. The Americans, fearing general street fighting, took refuge in the old American embassy building. Troops were active throughout the city. Sixty-nine persons were killed in an outbreak of fighting at Spandau, a suburb of Berlin. Eight others were killed in a clash at Lustgarten castle. Sporadic bursts of fighting continue, even In the center of the capaital, and the volleys of machine guns are heard continuously. Many armed motor trucks, filled with soldiers, passed and repassed through the streets. (There is a big German arsenal at Spandau.) There are more than 200 Americans in Berlin, including thirty women. The women, for the most part, are wives of newspaper correspondents and business men who went to Germany seeking trade. STRIKE PICKETS ORDERED SHOT THE HAGUE, March 17.—Gen. von Luettwitz, commander of the revolutionary troops In Berlin, has issued a warning that he will strictly enforce martial law and that all looters and strike pickets will be shot, said a report from Berlin today. Court-martials have been established in Berlin, consisting of one officer, one noncommissioned officer and one private soldier. Their sentences will be carried ont within twenty-four hours. Orders wer* given to shoot looters on the spot. Foreign correspondents in Berlin have been cautioned not to leave their rooms in hotels after nightfall or serious consequences may follow. FOCH SAYS ALES SAFE ALOXG RHINE PARIS, March 17.—Marshal Foch, who has just returned from Mayence, where he held a council with the American, British and French commanders of tbs allied armies of occupation, reported t<s Premier Mlllerand today that “the situation on the Rhine is satisfactory.’^ Marshal Foch said he had received adequate assurances from all of the allied commanders. The British will withdraw no more troops from the Rhineland until the crisis Is passed.

ALLIES BLAMED BY ITALIAN PAPER ROME, March 17.—The Glornale and Italia blames the allies for the German coup. “The Germans knew that the allies wero divided in their counsels,” said this newspaper. ‘The allies were wrong to rely upon President Wilson, whose action at the peace conference resulted In Balkanizing all of the Danube states. The plan failed In a few weeks. Hence the supreme council is no longer able to decide anything.** ASKS HINDENBURG TO TAKE REINS PARIS, March 17.—Von Htndenburg has been asked by Dr. Wolfgang von I\app, chancellor of tbo revolutionary government, to take charge of the German government, according to dispatches received here today. Von Hlndenburg's reply has not become known. An unconfirmed report has been received here that Dr. von Kapp and Gen. von Luettwitz have decided to resign as heads of the revolutionary government because of the threat of immediate establishment of a soviet republic and an attack on Berlin. It is reported that severe fighting continues at Kiel. (A wireless press dispatch from Berlin on Monday reported that German war craft In the Kiel harbor was bombarding parts of the city held by armed workmen.) At Hanover the Reichswehr la said to have joined the armed workers and agreed to support the new government. The food situation is hourly becom(Continued on Page Eleven.)